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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
OFFERING SECURITIES COMMISSION DISTRICT STOCK IPS INVESTORS EXCHANGE COMMISSION INTERACTIVE PRODUCTS MATTHEW BOWIN UNITED STATES DISTRICT COURT STOCK FRAUD CALIFORNIA ENJOINS INTERACTIVE PRODUCTS DISTRICT JUDGE JUDGEMENT FRAUDULENT VIOLATION OFFERING PROCEEDS CHARGES ACT SUCCESSFUL RECEIVING STOCK CERTIFICATES GRAND THEFT CHARGES SCHEME SERVING PRISON SENTENCE COMPLAINT |
SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17450 / April 1, 2002
SECURITIES AND EXCHANGE COMMISSION v. INTERACTIVE PRODUCTS AND
SERVICES, INC., AND MATTHEW P. BOWIN, United States District Court for
the Northern District of California, Civil Action No. C-98-20313 JW
COURT ENJOINS INTERACTIVE PRODUCTS AND SERVICES AND MATTHEW BOWIN IN
STOCK FRAUD
A federal district judge in San Francisco enjoined Interactive
Products and Services, Inc. ("IPS"), a computer accessories company
based in Santa Cruz, California, and its chief executive officer,
Matthew Bowin in a case charging stock fraud. On March 27, 2001,
United States District Judge James Ware entered judgment against IPS
and Bowin, ordering each to refrain from future fraudulent conduct and
sales of unregistered securities in violation of the federal
securities laws. The judgment also requires Bowin to pay $236,176 in
disgorgement and interest and $110,000 in penalties.
In April 1998, the Commission sued IPS and Bowin, alleging that they
had conducted a fraudulent offering of stock to the public over the
Internet. The Commission alleged that IPS raised approximately
$190,000 from about 150 investors nationwide. In the offering
materials, Bowin and IPS represented that all offering proceeds would
be held in escrow, and would be returned to investors if a minimum
investment level of $500,000 were not reached by the close of the
offering. The Commission charged that, even though the offering had
failed to raise $500,000, Bowin misrepresented to certain investors
that the offering was successful and that they would be receiving
stock certificates shortly. Instead, Bowin pocketed the offering
proceeds.
In 1999, Bowin was convicted in state court on fraud and grand theft
charges related to the same scheme. He is currently serving a 10-year
prison sentence.
In its complaint, the Commission alleged violations of Section 17(a)
and the Securities Act of 1933 and Section 10(b) of the Securities
Exchange Act of 1934, and Rule 10b-5.
_________________________________________________________________
Modified 04/01/2002
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