 |
 |
|
|
|
|
|
|
|
| | | |
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
1
.
SEC LITIGATION RELEASE
|
EXTRACTED KEY WORDS
MILLENNIUM IPO PRE-IPO KEY CARD COMMISSION ALLEGES COMPLAINT ASSETS SECURITIES RELIEF STOCK IRELAND BROCHURE INTERNATIONAL BOILER ROOM FREEZE EMERGENCY EQUITABLE RELIEF COUNTRIES INVESTOR FUNDS FRAUDULENT STATEMENTS PRE-IPO SHARES PRICE COURT ORDER TEMPORARILY RESTRAINING VIOLATING ANTIFRAUD PROVISIONS LAWS NEWPONT CONNECTION TRADING |
Securities and Exchange Commission
Washington, D.C.
Litigation Release No. 17528 / May 22, 2002
, Civil Action No. 02 CV 3901 (MBM) (S.D.N.Y.) (filed May 22, 2002)
SEC Sues Millennium Financial, Ltd. for Running an International Boiler Room
Operation
Court Orders Freeze of Millennium's Assets
The Honorable Michael B. Mukasey of the Southern District of New York,
in response to an emergency action filed today by the SEC, issued an
Order temporarily restraining Millennium Financial, Ltd. from
violating the antifraud provisions of the federal securities laws. The
Court also ordered a freeze of Millennium's assets, an accounting of
those assets and other emergency equitable relief. The Commission
alleges that Millennium has been running an ongoing international
boiler room operation that has defrauded at least 150 investors from
over 20 countries out of more than $2 million. The Commission also
sued Newpont Fiduciaries & Nominees, S.A. as a relief defendant,
because Newpont received investor funds at the direction of
Millennium.
The Commission's Complaint alleges that Millennium made a number of
fraudulent statements to investors in connection with the offer and
sale of the so-called pre-initial public offering (or "pre-IPO")
stocks of at least three U.S. companies -- Key Card Communications,
Inc., kNutek Holdings, Inc. and Sonic Garden, Inc. The Complaint
alleges that, through unsolicited telephone calls and mass mailings,
Millennium made fraudulent statements concerning (i) whether and when
a U.S. company was going to have an IPO; (ii) whether investors could
profitably resell their pre-IPO shares before the IPO; (iii) the price
at which the stock would be offered in the IPO itself; and (iv) the
price at which the stock would trade shortly after the IPO.
The Commission's Complaint specifically alleges, among other things,
that
* In the case of Key Card, Millennium told potential investors that
Key Card would have an IPO within a few months. In fact, Key Card
did not have an IPO within the promised timeframe and has never
had an IPO.
* Millennium sold Key Card pre-IPO shares to investors for $5 per
share. Millennium fraudulently told investors that they could
profitably sell their pre-IPO shares before the IPO for between
SNIPPETS:
|
|
|
| | | |
|
|
