Wayne M. Carlin (WC-2114)
Regional Director
Northeast Regional Office
SECURITIES AND EXCHANGE COMMISSION
233 Broadway
New York, New York 10279
(646) 428-1510
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK
SECURITIES AND EXCHANGE COMMISSION
Plaintiff,
v.
:
EPHONE, INC., WEBPHONE, LLP, :
NEWERA COMMUNICATIONS, LLP, :
ELECTRONIC AUDIO SERVICES, INC., : 02 Civ. ___ ( )
NETCALL, INC., WEBPHONE, INC., :
THEODORE BENDER, PETER BERTORELLI, : COMPLAINT
DONALD KERNS, PATRICIA LEDEZMA, :
PHILIP LEITNER, KEVIN LUCE, ARASH NOORAI, :
DOUGLAS PARNELL, CHRISTOPHER PLAIN, :
DONALD LEE PLAIN, SALLY SAVINSKY,
ANTHONY STARK, DANA VALENSKY,
AND THOMAS DON WALKER,
Defendants.
Plaintiff Securities and Exchange Commission ("Commission") as and for its complaint
against Defendants Ephone, Inc. ("Ephone"), Webphone, LLP ("Webphone"), Newera
Communications, LLP ("Newera"), Electronic Audio Services, Inc. ("Electronic Audio"),
Netcall, Inc. ("Netcall"), Webphone, Inc. ("Webphone, Inc."), Theodore Bender
("Bender"), Peter Bertorelli ("Bertorelli"), Donald Kerns ("Kerns"), Patricia Ledezma
("Ledezma"), Philip Leitner ("Leitner"), Kevin Luce ("Luce"), Arash Noorai ("Noorai"),
Douglas Parnell ("Parnell"), Christopher Plain ("C. Plain"), Donald Lee Plain ("D.
Plain"), Sally Savinsky ("Savinsky"), Anthony Stark ("Stark"), Dana Valensky
("Valensky") and Thomas Don Walker ("Walker") alleges as follows:
SUMMARY
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK
PHILIP LEITNER, KEVIN LUCE, ARASH NOORAI,:
DONALD LEE PLAIN, SALLY SAVINSKY, ANTHONY STARK, DANA VALENSKY, AND THOMAS DON WALKER,
Plaintiff Securities and Exchange Commission as and for its complaint against Defendants
This action involves three fraudulent schemes, conducted from approximately July 1999 to
These offerings were fraudulent because almost half of the offering proceeds went to the
Of approximately $2.9 million raised in aggregate, about $1.2 million went to D. Plain, C.
The defendants did not disclose these excessive sales commissions to investors.
Indeed, by diverting so large a share of the offering proceeds to pay commissions, defendants
From approximately July 1999 through October 1999, Ephone, Noorai, D. Plain, C. Plain and
Defendants Kerns, Ledezma, Leitner, Luce, Savinsky, Valensky, Walker and Bender were ISOs who
From approximately September 1999 through February 2000, Webphone, Webphone, Inc., Noorai, D.
Defendants D. Plain and C. Plain, have engaged, and unless enjoined, will continue to engage,
Defendants, directly and indirectly, singly and in concert, have made use of the means or
Newera is a Colorado limited liability partnership formed in January 2000 and maintains its
Noorai participated in drafting the Ephone offering materials that were provided to investors.
The misrepresentations set forth in paragraphs 39 through 49 above were and are material.
|
