 |
 |
|
|
|
|
|
|
|
| | | |
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
1
.
SEC LITIGATION RELEASE
|
EXTRACTED KEY WORDS
SECURITIES ISSUERS JOHN WESTERGAARD EXCHANGE INTERNET COMPLAINT VIOLATIONS SECURITIES ACT WEB SITE CONSENT WESTERGAARD BROADCASTING EXCHANGE COMMISSION LITIGATION DISTRICT COURT CIVIL SETTLES DISCLOSE COMPENSATION ISSUERS PAID ADMITTING DENYING ALLEGATIONS ENTRY PERMANENT FINANCIAL CONDITION WESTERGAARD BROADCASTING NETWORK CHARGES ORDER PERMANENTLY ENJOINING |
U.S. Securities and Exchange Commission
Washington, D.C.
LITIGATION Release No. 17192 / October 16, 2001
Securities and Exchange Commission v. John Westergaard, et al., U.S.
District Court for the Southern District of New York (Civil Action No.
00-9776) (DAB)
SEC SETTLES INTERNET TOUTING CASE AGAINST JOHN WESTERGAARD
On October 11, 2001, the Honorable Deborah A. Batts entered a Final
Judgment by consent concluding the Securities and Exchange
Commission's litigation against John Westergaard. The Commission's
complaint, filed on December 27, 2000, alleged that Westergaard and
his companies, Westergaard.com, Inc. and Westergaard Broadcasting
Network.com, Inc., violated Section 17(b) of the Securities Act by
failing to fully disclose the compensation they received to promote
issuers. The complaint further alleged that John Westergaard violated
Section 10(b) of the Exchange Act and Rule 10b-5 thereunder by falsely
claiming his Internet site provided "independent" analysis.
According to the complaint, John Westergaard and his companies were
promoting issuers on web pages called "cyberstations," in press
releases describing the company's coverage of issuers on the web site,
and in Internet radio-broadcast interviews of officers of issuers. The
complaint alleged that the press releases and Internet radio
broadcasts referenced the web site, but failed to disclose that
issuers paid Westergaard.com to promote their securities. It also
alleged that the web site itself failed to identify the amount of
compensation issuers paid.
Without admitting or denying the Commission's allegations, Westergaard
consented to the entry of a permanent injunction against future
violations of Section 17(b) of the Securities Act. The Court did not
impose a civil penalty on Westergaard based on his sworn Statement of
Financial Condition. Westergaard.com, Inc. and Westergaard
Broadcasting Network, Inc. previously settled the charges against them
by consenting, without admitting or denying the Commission's
allegations, to the entry of an order permanently enjoining them from
violating Section 17(b) of the Securities Act. See (December 27,
2000).
_________________________________________________________________
Modified 10/17/2001
SNIPPETS:
|
|
|
| | | |
|
|
