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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15089 / September 27, 1996
SEC v. TransAmerica Wireless Systems, Inc., Intercontinental
Telecommunications Corp., and Danny Sterk,
(S.D. Fl., Civil Action No. 94-6805-CIV-GONZALEZ)
The Securities and Exchange Commission announced today that
on August 6, 1996, the Honorable Jose A. Gonzalez, U.S. District
Judge for the Southern District of Florida, entered an Order To
Show Cause why Danny Sterk ("Sterk") should not be held in civil
contempt for violating the Court's previous orders of November
28, 1995, requiring Sterk to file a sworn accounting, and of May
17, 1996 requiring Sterk to pay disgorgement in the amount of
$1,007,783.87. The Court has scheduled a hearing on October 17,
1996, for Sterk to show cause why the Court should not issue an
order holding him in civil contempt for violating the Court's
orders.
In its complaint filed on August 23, 1994, the Commission
alleged that Sterk, as chief executive officer of TransAmerica
Wireless Systems, Inc. ("TransAmerica") and a principal of
Intercontinental Telecommunications Corp. ("ITC"), obtained funds
from investors by misrepresenting or failing to disclose material
facts in connection with the sale of general partnership
interests in ventures formed to create "wireless cable"
television systems. Among other misrepresentations, TransAmerica
and ITC falsely claimed to be negotiating for FCC licenses and
made unrealistic predictions to investors of the exorbitant
profits to be made from the ventures.
On November 28, 1995, the Court entered an order of
permanent injunction and other relief which directed Sterk to
prepare and file a sworn accounting of funds received in
connection with the scheme within 30 days. Sterk has never filed
an accounting. On May 17, 1996, Sterk was directed by the Court
to disgorge $1,007,783.87 within 45 days of the Court's order.
Sterk has made no payment on the disgorgement.
See also, L.R. 14921 (May 29, 1996)
SNIPPETS:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission announced today that on August 6, 1996, the Honorable
Show Cause why Danny Sterk should not be held in civil contempt for violating the Court's
The Court has scheduled a hearing on October 17, 1996, for Sterk to show cause why the Court
In its complaint filed on August 23, 1994, the Commission alleged that Sterk, as chief
TransAmerica and ITC falsely claimed to be negotiating for FCC licenses and made unrealistic
On November 28, 1995, the Court entered an order of permanent injunction and other relief
Sterk has made no payment on the disgorgement.
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