SEC v EXPRESS COMMUNICATIONS, INC., PENDELTON C. WAUGH, et al


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Keywords & Phrases

CaseNo: LR-14753, CourtCode: DIS, CourtName: DISTRICT COURT FOR THE DISTRICT OF COLUMBIA. THE COMMISSION, Defendant: Express Communications, Inc., Pendelton C. Waugh, Communications Marketing Consultants Plus Corp., relief defendants Personal Communications Corp., PCC Holding Corp., PCC Management Corp. and Next Communications, Inc., Plaintiff: SEC, State: WA Washington, UniqueCaseRef: SEC>LR-14753, Securities, Communications, Commission, Waugh, Alleges, Offering, Investments, Complaint, Exchange Commission, Civil Action, Cmc, Pcc, Connection, Mobile, Relief Defendants, Violating, Securities Exchange Act, Sale, Purchase, Stock, Assets, Offering Materials, Funds, Misleading, Third Mobile, Proceeds, Offering Expenses, Disclose, Register , ContentID: 120243298

Case Documents

1995-12-13

SEC LITIGATION RELEASE
[ see first page and extracted highlights below ] ItemID: 106392

2 pages
TXT

Total Documents: 1 document , 2 pages

Price: $ 19.95

IVESLCD01 KGI0001

1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS

COMMUNICATIONS
DEFENDANTS
COMMISSION
WAUGH
ALLEGES
OFFERING
INVESTMENTS
COMPLAINT
EXCHANGE COMMISSION
CIVIL ACTION
CMC
PCC
CONNECTION
MOBILE
RELIEF DEFENDANTS
VIOLATING
SECURITIES EXCHANGE ACT
SALE
PURCHASE
STOCK
ASSETS
OFFERING MATERIALS
FUNDS
MISLEADING
THIRD MOBILE
PROCEEDS
OFFERING EXPENSES
DISCLOSE
REGISTER


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               SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON, D.C.


LITIGATION RELEASE NO. 14753 / December 13, 1995

SECURITIES AND EXCHANGE COMMISSION v. EXPRESS COMMUNICATIONS,
INC., PENDLETON C. WAUGH, AND COMMUNICATIONS MARKETING
CONSULTANTS PLUS CORP. (DEFENDANTS) AND PERSONAL COMMUNICATIONS
CORP., PCC HOLDINGS CORP., PCC MANAGEMENT CORP., AND NEXT
COMMUNICATIONS, INC. (RELIEF DEFENDANTS), Civil Action No.
95-CV02268 (D.D.C.)

     The Commission today announced the filing of a civil
injunctive action against defendants Express Communications, Inc.
("Express"), Pendleton C. Waugh, and Communications Marketing
Consultants Plus Corp. ("CMC+") and relief defendants Personal
Communications Corp., PCC Holdings Corp., PCC Management Corp.,
and Next Communications, Inc.  The case was filed in the U.S.
District Court for the District of Columbia.  The Commission
alleges that Express, Waugh, and CMC+ violated Sections 5 and
17(a) of the Securities Act, Section 10(b) of the Securities
Exchange Act, and Rule 10b-5 thereunder in connection with the
offer and sale of interests in specialized mobile radio ("SMR")
systems and the purchase and sale of Express stock.  The
Complaint further alleges that CMC+ violated Section 15(a) of the
Securities Exchange Act in connection with these offerings.  At
all relevant times, Waugh was the president of Express and its
affiliate CMC+.  The Complaint also alleges that the relief
defendants, which were subsidiaries of Express and controlled by
Waugh, received investor funds and assets from the defendants and
hold these funds and assets in a constructive trust for the
benefit of the investors.

     The Complaint alleges that Express, Waugh, and CMC+ used
"boiler room" tactics and materially false and misleading written
offering materials in selling securities in the form of
investment contracts in Third Mobile, Ltd., and Dallas
MobileComm, L.C., two SMR communications offerings established
and promoted by Express.  For example, according to the
Complaint, the offering materials grossly understated the portion
of the offering proceeds to be used towards offering expenses.
Actual offering expenses consumed over forty percent of the
proceeds -- two or more times the amounts disclosed to potential
investors.  The defendants also allegedly made baseless

SNIPPETS:

SECURITIES AND EXCHANGE COMMISSION v. EXPRESS COMMUNICATIONS,

INC., PENDLETON C. WAUGH, AND COMMUNICATIONS MARKETING CONSULTANTS PLUS CORP. AND PERSONAL

COMMUNICATIONS, INC. (RELIEF DEFENDANTS), Civil Action No. 95-CV02268

The Commission today announced the filing of a civil injunctive action against defendants

The Commission alleges that Express, Waugh, and CMC+ violated Sections 5 and 17of the

The Complaint also alleges that the relief defendants, which were subsidiaries of Express and

For example, according to the Complaint, the offering materials grossly understated the

The defendants also allegedly made baseless projections of cash flow and equity value, failed

Finally, the Complaint alleges that, in connection with the sale of these investments, CMC+

the Commission filed a civil action against two individuals who sold investments in Third

The defendants in that action consented to be permanently enjoined from violating the


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