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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
BELL FFCI ACT EXCHANGE ACT FLORIDA EXCHANGE COMMISSION DISTRICT COMPLAINT SECURITIES FRAUD CHAIRMAN FIRST FLORIDA COMMUNICATIONS PAUL RICHARD BELL UTAH ALLEGES ASSETS PERMANENT INJUNCTIONS ENJOINING VIOLATIONS THEREUNDER OFFICER BAR CIVIL MONEY PENALTIES ADMITTING DENYING ALLEGATIONS JURISDICTION ENTRY JUDGEMENT FUTURE VIOLATIONS |
Litigation Release No. 17437 / March 26, 2002
SEC FILES ACTION FOR SECURITIES FRAUD
AGAINST FLORIDA COMPANY AND CHAIRMAN OF THE BOARD
Securities and Exchange Commission v. First Florida Communications,
Inc. and Paul Richard Bell, Sr., Case No. 2 02CV-0231B (District of
Utah) (complaint filed March 21, 2002)
The Securities and Exchange Commission (SEC) announced today that it
filed an action for securities fraud in the United States District
Court for the District of Utah against First Florida Communications,
Inc., (FFCI), a Florida corporation, and Paul Richard Bell.
The SEC alleges in its complaint that between September 1998 and May
1999, Bell, as chairman of FFCI's board of directors, grossly inflated
the value of FFCI's assets and misrepresented FFCI's access to funding
in meetings with prospective FFCI investors. Additionally, from at
least December 1998 through June 11, 1999, FFCI posted on its Internet
web pages a balance sheet, prepared by Bell, which overstated the
value of FFCI's assets by more than 1000 percent. During the period of
the misconduct alleged herein, FFCI stock was listed on the OTC
Bulletin Board.
The Commission seeks permanent injunctions against FFCI and Bell
enjoining further violations of Section 17(a) of the Securities Act of
1933 ("Securities Act") and Section 10(b) of the Securities Exchange
Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, and seeks
disgorgement with prejudgment interest, an accounting, an officer and
director bar and civil money penalties against Bell. Without admitting
or denying the allegations in the SEC's complaint, except as to
jurisdiction, FFCI consented to the entry of a final judgment of
permanent injunction which would enjoin it from future violations of
Section 17(a) of the Securities Act and Section 10(b) of the Exchange
Act and Rule 10b-5 thereunder.
_________________________________________________________________
Modified 03/26/2002
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