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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
SECURITIES DISTRICT EXCHANGE COMMISSION INVESTORS JUDGEMENT COMPLAINT SCOTT ACT INTERNET SOLICITATIONS ALLEGES MATERIALS DISTRIBUTION CONTRACT FRYE SOLICITED FUNDS WRITTEN MATERIALS LURE INVESTORS PROMISES RISKLESS PROFITS COSTA RICAN ENTERPRISES ICP JUPITER AGRO DEVELOPMENT AGRO DEVELOPMENT PROJECT CONNECTION MATERIAL MISREPRESENTATIONS FALSELY REPRESENTING MAJOR DISTRIBUTION CONTRACT SUPERMARKETS LIT NOS |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15139 / October 29, 1996
SECURITIES AND EXCHANGE COMMISSION v. SCOTT A. FRYE, 95 Civ.
9205, U.S.D.C., S.D.N.Y. (JSM)
The Securities and Exchange Commission ("Commission") announced
that, on August 17, 1996, the Honorable Barbara S. Jones, United
States District Court Judge for the Southern District of New
York, entered a Final Judgment of Permanent Injunction and Other
Equitable Relief By Consent ("Final Judgment") against defendant
Scott A. Frye ("Frye"). The Final Judgment enjoins Frye from
future violations of Section 17(a) of the Securities Act of 1933
and Section 10(b) of the Securities Exchange Act of 1934 and Rule
10b-5 thereunder and does not impose civil penalties against him
based on his demonstrated inability to pay.
As detailed in the Complaint, beginning in or about May 1995
through the filing of the Commission's action on October 27,
1995, Frye posted numerous messages on the InterNet, a
decentralized web of computers, accessible to millions of
potential investors across the country and world-wide, in which
Frye solicited funds from investors. The Complaint alleges that
Frye used messages posted on the InterNet, and other written
materials which he distributed, in an attempt to lure investors
with promises of riskless profits and above average returns from
investments in two Costa Rican enterprises, ICP and the Jupiter
Agro Development Project. However, as alleged in the Complaint,
in connection with his solicitations, Frye made material
misrepresentations of fact by, for example, falsely representing
that one of his companies had a major distribution contract for
its product with A&P Supermarkets ("A&P"), when, in fact, it had
no distribution contracts with A&P.
For further information, see lit. rel. nos. 14702 and 14720.
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