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SEC ADMINISTRATIVE PROCEEDING
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EXTRACTED KEY WORDS
SECURITIES ORDER ALLEGES MISREPRESENTATIONS WEBSITES PUBLIC CEASE-AND-DESIST PROCEEDINGS INSTITUTING COMMISSION SECURITIES ACT DERRICK CONNECTION INTERNET INVESTORS FACTS CLIENTS EXCHANGE COMMISSION ADMINISTRATIVE PROCEEDING PRIME BANK JOHNSON OFFERED SECURITIES POTENTIAL INVESTORS GLOBAL FINANCIAL GROUP OFFERING EXISTENCE WRITING COUNTRIES OPERATIONS ASIDE ORDER ALLEGES VIOLATION FRAUDULENT SALE ALLEGATIONS |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
SECURITIES ACT OF 1933
Release No. 7677 / May 11, 1999
ADMINISTRATIVE PROCEEDING
File No. 3-9893
PUBLIC CEASE-AND-DESIST PROCEEDINGS INSTITUTED AGAINST DERRICK C.
JOHNSON.
The Commission announced that it instituted public cease-and-desist
proceedings against Derrick C. Johnson ("Johnson"). The Order
Instituting Proceedings ("Order") alleges that Johnson made material
misrepresentations in connection with the offer of "prime bank"
securities through the use of the Internet.
Specifically, the Order alleges that from approximately May 1998
through February 1999, Johnson offered securities to potential
investors through three websites on the Internet. In each case,
Johnson established the website under the d.b.a. Global Financial
Group ("Global"). The Order further alleges that on the Global
websites, Johnson made several misrepresentations of material facts
regarding Global and the securities it was offering. The Order alleges
that Johnson misrepresented the returns available (from 50% to 1600%
in 3 to 120 plus days) on the investments and the existence of the
securities themselves. Johnson also misrepresented that the securities
would be "100% insured" and "guaranteed in writing." Finally, the
Order alleges that Johnson falsely represented that Global had clients
in over twenty countries when, in fact, Global had no clients and no
operations aside from the three websites Johnson created.
The Order alleges violation of Sections 17(a)(1) and (3) of the
Securities Act of 1933, which prohibit fraudulent conduct in
connection with the offer or sale of securities.
A hearing will be scheduled to determine if the allegations in the
Order are true and, if so, whether a cease-and-desist order is
appropriate against Johnson.
_________________________________________________________________
Modified 05/11/1999
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