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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 14840 / March 12, 1996
Securities and Exchange Commission v. American Interactive Group,
LLC et al. (Civ. No. 95-1569 (GEB)) (USDC/DNJ)
On March 5, 1996, Judge Garret Brown of the United States
District Court for the District of New Jersey entered a final
judgment against defendants American Interactive Group, LLC,
American Interactive Services, LLC, American Interactive, LLC,
David C. Connolly, Daniel Rivera, Sr., and Marc A. Remoli
(collectively "defendants"), and relief defendant American
Seminars, Inc. ("relief defendant") in the above-captioned
matter. Defendants were permanently enjoined and restrained from
violating Sections 5(a), 5(c) and 17(a) of the Securities Act of
1933 and Sections 10(b) and 15(a) of the Exchange Act of 1934 and
Rule 10b-5 promulgated thereunder. The final judgment further
orders that defendants and relief defendant disgorge all moneys
derived from the actions alleged in the Complaint. Based upon
defendants' and relief defendant's sworn representations to the
Commission as to their financial condition, payment of all but
the following disgorgement amounts were waived: American
Interactive Group, LLC was ordered to disgorge $235,688; American
Seminars, Inc. was ordered to disgorge $11,922; and David C.
Connolly was ordered to disgorge $2,692. It was further ordered
that, until the investors solicited by defendants are paid back
in full the amount they invested plus prejudgment interest,
defendants and relief defendant shall relinquish any money,
interest, or assets that they may derive from or obtain from the
three Interactive Video and Data Services ("IVDS") licenses that
were the basis of the investments at issue. Those licenses are
currently owned by Daniel Rivera and issued by the Federal
Communications Commission for the areas of Worcester,
Massachusetts; Springfield, Massachusetts; and Mobile, Alabama.
The Commission's complaint, which was filed April 7, 1995,
alleged that defendants raised over $900,000 from about 100
investors from the period October 1994 to April 1995. Investors
were solicited nationwide, the complaint alleged, by a sales
force working from two boiler rooms controlled by Connolly,
Rivera, and Remoli, to purchase securities in the form of
"membership units" in American Interactive Group, LLC. The
ostensible plan behind the offerings was to raise money to
purchase IVDS licenses to be auctioned at future FCC auctions,
SNIPPETS:
Securities and Exchange Commission v. American Interactive Group, LLC et al. (Civ.
On March 5, 1996, Judge Garret Brown of the United States District Court for the District of
Defendants were permanently enjoined and restrained from violating Sections 5, 5and 17of the
The final judgment further orders that defendants and relief defendant disgorge all moneys
Based upon defendants' and relief defendant's sworn representations to the Commission as to
It was further ordered that, until the investors solicited by defendants are paid back in
Those licenses are currently owned by Daniel Rivera and issued by the Federal Communications
The Commission's complaint, which was filed April 7, 1995, alleged that defendants raised
Investors were solicited nationwide, the complaint alleged, by a sales force working from two
The ostensible plan behind the offerings was to raise money to purchase IVDS licenses to be
The complaint further alleged that defendants knowingly made materially false and misleading
unreasonable projections of extraordinary profits; failing to disclose that close to 60% of
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