UNITED STATES SECURITIES AND EXCHANGE COMMISSION
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15378 / May 30, 1997
SECURITIES AND EXCHANGE COMMISSION v. AFFORDABLE PREPAID CELLULAR,
INC.AND
JOHN C. ROCKETT, Civil Action No. 97-3750 RAP (JGx) (C.D. Cal.).
The Securities and Exchange Commission announced that on May 20,
1997,
the Honorable Richard A. Paez, United States District Judge for the
Central
District of California, issued a temporary restraining order against
Affordable Prepaid Cellular, Inc., and its part-owner and Vice
President,
John C. Rockett ("Rockett"). APC is based in Lake Forest, California,
and
its stated business is to provide prepaid cellular telephone service
to
"credit-challenged" individuals. The Court also issued orders
prohibiting
APC and Rockett from destroying documents, and requiring APC to account
for
investor funds.
The Commission's complaint, filed May 20, 1997, alleges that the
Defendants have fraudulently offered and/or sold units in APC, in the
form
of $5,000 corporate notes, to at least three individuals since
January
1997. The investors' monies, according to APC, will be used to fund
APC's
business operations. The complaint further alleges that in return
for
their investment, APC promises investors a guaranteed 16 3/4% annual
return, plus 1% of half of APC's profits, and that the investor's
original
contribution will be returned at the end of one year. As further
alleged,
in offering securities to investors, APC and Rockett did not tell
investors
SNIPPETS:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION v. AFFORDABLE PREPAID CELLULAR,
JOHN C. ROCKETT, Civil Action No. 97-3750 RAP (C.D.
United States District Judge for the Central
APC is based in Lake Forest, California, and its stated business is to provide prepaid
The Court also issued orders prohibiting APC and Rockett from destroying documents, and
The complaint further alleges that in return for their investment, APC promises investors a
Rockett is Vice President and part-owner of APC;
Rockett has been twice convicted for selling fraudulent
Rockett prohibiting him from selling securities in California;
The Commission wishes to thank the Southern California COBRA Task Force, and specifically the
For more information, please contact James A. Howell, Regional Trial
Counsel, at 965-3877.
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