UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 15074/September 26, 1996
SECURITIES AND EXCHANGE COMMISSION v. INTERNET BROADCAST GROUP,
ET AL., (D.D.C., Civil Action No. 96 CV 02226 (SSH))
The Securities and Exchange Commission ("Commission") today
announced the filing of a Complaint in the United States District
Court for the District of Columbia against Internet Broadcast
Group ("IBG") and other defendants and relief defendants. The
Complaint alleges that the defendants violated the federal
securities laws in connection with the offer and sale to the
public of securities designated as "partnership units" in IBG, a
purported general partnership formed to develop a wireless cable
system in Muskegon, Michigan and acquire a hardwired private
cable system in Mesa, Arizona. The other defendants named in the
Complaint are Internet Wireless Communications, Inc. ("IWC"),
California Financial Services, Inc.("CFS"), One Touch Marketing,
Inc. ("OTM"), Commonwealth Communications Group ("CCG"), Capital
Resources Group Inc. ("CRG"), John C. Trimpin, Richard B.
Parnell, John Larson and Michael Green. According to the
Complaint, at all relevant times, defendant Trimpin controlled
defendants IBG, IWC and CFS.
Additionally, the Complaint names as relief defendants
Interactive Communications Network, Ltd., Able Private Cable and
Satellite Corporation, Greg E. Parker, Michael Kittay, James
Osborn and William Trower. The Complaint alleges that the relief
defendants received funds unlawfully raised from investors, and
hold these funds in a constructive trust for the benefit of
investors.
More specifically, the Complaint alleges that from April
through September 1994, defendants engaged in the offer and sale
of $2.1 million of IBG securities to approximately 186 investors
nationwide, many of whom invested funds from their Individual
Retirement Accounts. The sales techniques used included high
pressure "boiler room" telephone sales tactics and mailings of
promotional and other documents that contained false and
SNIPPETS:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today announced the filing of a Complaint in the
Group and other defendants and relief defendants.
The Complaint alleges that the defendants violated the federal securities laws in connection
The other defendants named in the Complaint are Internet Wireless Communications, Inc.,
According to the Complaint, at all relevant times, defendant Trimpin controlled defendants
Additionally, the Complaint names as relief defendants Interactive Communications Network,
The Complaint alleges that the relief defendants received funds unlawfully raised from
More specifically, the Complaint alleges that from April through September 1994, defendants
Despite that, according to the Complaint, the defendants received approximately 66%, and the
The Complaint alleges that all the defendants except IBG violated Section 17of the Securities
The Complaint seeks permanent injunctions and disgorgement, together with prejudgment
Simultaneously with the filing of the action, Trimpin, IWC and IBG consented, without
The $125,000 disgorgement to be paid by Trimpin and IWC in this matter is part of an
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