United States Securities and Exchange Commission
Litigation Release No. 16082 / March 9, 1999
SECURITIES AND EXCHANGE COMMISSION v. PARAMOUNT CAPITAL
MANAGEMENT, INC. AND WILLIAM C. BOLTON, 97 Civ. 8577
(S.D.N.Y.) (SHS)
The Securities and Exchange Commission yesterday filed an
amended complaint in federal court in Manhattan,
substituting William C. Bolton ("Bolton") for the unnamed
defendant sued as "John Doe a/k/a Kenneth Bridget" in the
original complaint in this matter, which was filed on
November 18, 1997.
Named in the amended complaint are:
William C. Bolton, a 31 year old resident of Marlboro,
New Jersey. On January 20, 1999, a grand jury sitting in
the Southern District of New York returned a twenty-five
count indictment charging Bolton with conspiracy to commit
securities fraud, mail fraud and wire fraud, and with mail
fraud, bank fraud and moneylaundering; and
Paramount Capital Management, Inc. ("Paramount"), a New
York corporation controlled by Bolton, which had offices at
11 Broadway, New York, New York. Paramount held itself out to
the public as an "investment banking and full service broker"
that serviced both institutional clients and individual
investors,
and represented to customers that it was a member of various
industry associations and one stock
exchange.
In the amended complaint, the Commission alleges that:
Paramount and Bolton, directly or indirectly,
fraudulently obtained over $67,000 from at least 14
investors
by inducing them to invest in a fictitious initial public
offering ("IPO") of a nonexistent company -- "Micronet
Corp." ("Micronet"). Paramount and Bolton, and others at
Bolton’s direction, falsely represented tothe investors
that the IPO was being underwritten by Paramount, and that
Paramount was a "full service broker" and a member of the
National Association of Securities Dealers, Inc. ("NASD"),
the Securities Investor Protection Corporation ("SIPC"), the
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION v. PARAMOUNT CAPITAL
AND WILLIAM C. BOLTON, 97 Civ.
Named in the amended complaint are:
securities fraud, mail fraud and wire fraud, and with mail
Paramount Capital Management, Inc., a New
York corporation controlled by Bolton,
that serviced both institutional clients and individual investors,
In the amended complaint, the Commission alleges that:
Paramount was a "full service broker" and a member of the
Stock Exchange.
Using the alias "Kenneth Bridget," Paramount, Bolton,
investors and solicited them to invest in the purported Micronet
IPO.
made numerous false and misleading representations to the
was allegedly engaged; the offering price of the Micronet IPO;
the price to which Micronet shares were expected to rise;
misleading in that Paramount had no Micronet IPO shares to sell;
Paramount and Bolton violated the antifraud and brokerdealer registration provisions of the
Bolton from future violations of these antifraud provisions,
The litigation is pending.
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