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1
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SEC ADMINISTRATIVE PROCEEDING
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EXTRACTED KEY WORDS
MAINSTREET ALLEGES EXCHANGE SALVANI POTENTIAL INVESTORS INSTITUTING EXCHANGE COMMISSION SECURITIES EXCHANGE ACT JOSEPH ISSUERS IPOS WEBSITE PURCHASE ADVERTISEMENTS REGISTERING COLOR ADVERTISEMENTS NATIONAL MAGAZINES PROSPECTIVE ISSUERS SIGNING ISSUERS SIGNING CONTRACTS PAYING DEPOSITS MEMBERS INDUCE SALE EFFECT TRANSACTIONS BROKER VIOLATION ADMINISTRATIVE LAW JUDGE ALLEGATIONS SANCTIONS |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 43334 / September 25, 2000
ADMINISTRATIVE PROCEEDING
File No. 3-10298
PUBLIC PROCEEDINGS INSTITUTED AGAINST
MAINSTREETIPO.COM INC. AND JOSEPH M. SALVANI
The Securities and Exchange Commission today instituted public
administrative and cease-and-desist proceedings against
MainStreetIPO.com Inc. and its President, Joseph M. Salvani.
In the Order Instituting Administrative Proceedings ("Order"), the
Division of Enforcement alleges that MainStreet held itself out as the
source of "hot" initial public offerings ("IPOs") for the average
investor. According to the Division, Salvani and MainStreet actively
solicited both issuers of IPOs and potential investors in IPOs to
participate in online auctions of securities at MainStreet's website.
MainStreet allegedly purchased banner advertisements for posting on
over 70 other financial websites, and sent out roughly 600,000 e-mails
to potential investors. The staff also alleged that MainStreet also
hosted booths at various trade shows, and in April 2000 ran full-page
color advertisements in various national magazines. These solicitation
efforts allegedly resulted in at least six prospective issuers signing
contracts with MainStreet, paying deposits of at least $50,000. In
addition, these solicitation efforts allegedly resulted in roughly
15,000 potential investors registering with MainStreet as "members."
The Division alleges that Salvani and MainStreet were attempting to
induce the purchase or sale of securities and to effect transactions
in securities on behalf of others without registering as a broker, in
violation of Section 15(a) of the Securities Exchange Act of 1934.
A hearing will be held before an administrative law judge to determine
if these allegations are true and, if so, what, if any, sanctions are
appropriate in the public interest.
_________________________________________________________________
Modified 09/26/2000
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