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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
COMMISSION FONECASH EXCHANGE COMMISSION CHARBONEAU SECURITIES ACT COMPLAINT INTERNET DISTRICT MISREPRESENTATIONS UNITED STATES DANIEL CIVIL YORK ALLEGES REGISTRATION STATEMENT AMENDMENTS PATENT ENJOINING DEFENDANTS VIOLATIONS THEREUNDER INTERNET FRAUD INSTITUTED PROCEEDINGS ISSUED SUSPENDING EFFECTIVENESS AVOID INTERNET PUMP-AND-DUMP STOCK MANIPULATION SCHEMES REPORT SUSPICIOUS ACTIVITY |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17464 / April 10, 2002
Securities and Exchange Commission v. FoneCash, Inc., and Daniel E.
Charboneau, Civil Action No. 1 02CV00651RJL (D.D.C. April 8, 2002)
The Securities and Exchange Commission ("Commission") announced today
that it has filed a complaint in the United States District Court for
the District of Columbia against FoneCash, Inc. ("FoneCash"), a
Delaware corporation with its principal office located in New York,
New York, and Daniel E. Charboneau ("Charboneau"), its president,
chief executive officer and chairman of the board.
The complaint alleges that a registration statement and amendments,
filed with the Commission by FoneCash in December 2001, January 2002
and March 2002, and signed by Charboneau, contain material
misrepresentations and omissions. Such misrepresentations include,
among other things, the claim that FoneCash manufactures credit card
terminals under a specified patent to which it obtained the exclusive
rights in 1997, when in fact, the patent had lapsed in 1993. The
complaint further alleges that Fonecash maintains a website which
grossly misrepresents the company's business and, through Charboneau,
has distributed via the internet several misleading press releases
which falsely describe various mergers and acquisitions.
The complaint seeks preliminary and permanent injunctions enjoining
the defendants from further violations of Section 17(a) of the
Securities Act of 1933 and Sections 10(b) and 13(a) of the Securities
Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-1 and 13a-13
thereunder, and enjoining Charboneau from further violations of
Section 16(a) of the Exchange Act and Rules 16a-2 and 16a-3
thereunder. The Commission further seeks the disgorgement of all
ill-gotten gains with prejudgment interest, and the imposition of
civil penalties against the defendants.
The Commission also instituted proceedings under Section 8(d) of the
Securities Act of 1933 to determine whether a stop order should be
issued suspending the effectiveness of the FoneCash registration
statements and amendments.
For tips on how to avoid Internet "pump-and-dump" stock manipulation
schemes, visit . For more information about Internet fraud, visit . To
report suspicious activity involving possible Internet fraud, visit .
See also Securities Act Release No. (D.D.C. April 8, 2002).
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