U.S. Securities and Exchange Commission
Washington, D.C.
Litigation Release No. 17977 / February 10, 2003
Securities and Exchange Commission v. Marc David Shiner, Leon
Swichkow, Timothy Wetherald, Telecom Advisory Services, Inc., Louis
Stinson, Jr., P.A., as escrow agent for certain accounts, Equity
Service Administration, Inc., Marketing Media, Inc., and USA Media
Group, Inc., Case No. 03-608175 (S.D. Fla.)
SEC OBTAINS EMERGENCY RELIEF TO HALT FRAUDULENT SALE OF LOCAL PHONE
COMPANY PARTNERSHIPS; COURT ORDERS ASSETS FROZEN
The Securities and Exchange Commission today announced that the
Honorable William J. Zloch, Chief United States District Judge for the
Southern District of Florida, entered a temporary restraining order
against the promoters of a series of local telephone company
partnerships. The Commission's complaint and request for emergency
relief, filed on February 7, 2002, in Ft. Lauderdale, Florida, alleges
Marc David Shiner, a convicted felon, and others defrauded hundreds of
investors nationwide through the sale of unregistered securities in
six limited liability partnerships ("LLPs") that were ostensibly
formed to operate competitive local telephone exchange carriers
("CLECs") in Western states where Qwest Communications was the
dominant local telephone carrier.
The Commission's complaint names four primary defendants.
Specifically, as alleged in the complaint
* Marc David Shiner ("Shiner"), age 58, is a resident of Boca Raton,
Florida. Shiner is the corporate secretary of Defendant Telecom
Advisory, as well as Relief Defendants Equity Service and USA
Media. In 1986, the SEC barred Shiner from association with a
broker or dealer, investment company, investment adviser or
municipal securities dealer for five years for his failure to
disclose a 1984 conviction in Massachusetts for insurance fraud,
larceny and attempted larceny. In 1998, while promoting electric
power partnerships in a similar scheme to this one, Shiner was
convicted of federal tax evasion, and served four months in prison
and four months of house arrest.
* Leon Swichkow ("Swichkow"), age 58, is a resident of Fort
Lauderdale, Florida. Swichkow is the corporate president of
Defendant Telecom Advisory, as well as Relief Defendants Equity
Service and USA Media. In 1995, Swichkow paid a $10,000 civil
penalty in settlement of allegations that he violated Federal
Trade Commission rules in the marketing of certain business
opportunities.
* Timothy Wetherald ("Wetherald"), age 43, is a resident of Denver,
SNIPPETS:
U.S. Securities and Exchange Commission Washington,
Securities and Exchange Commission v. Marc David Shiner, Leon Swichkow, Timothy Wetherald,
SEC OBTAINS EMERGENCY RELIEF TO HALT FRAUDULENT SALE OF LOCAL PHONE COMPANY PARTNERSHIPS;
The Securities and Exchange Commission today announced that the Honorable William J. Zloch,
The Commission's complaint names four primary defendants.
Specifically, as alleged in the complaint * Marc David Shiner, age 58, is a resident of Boca
Shiner is the corporate secretary of Defendant Telecom Advisory, as well as Relief Defendants
In 1986, the SEC barred Shiner from association with a broker or dealer, investment company,
* Leon Swichkow, age 58, is a resident of Fort Lauderdale, Florida.
Swichkow is the corporate president of Defendant Telecom Advisory, as well as Relief
In 1995, Swichkow paid a $10,000 civil penalty in settlement of allegations that he violated
* Timothy Wetherald, age 43, is a resident of Denver, Colorado.
Wetherald is the corporate president, part owner, and a control person of On Systems, an
Telecom Advisory is not registered as a broker-dealer with the SEC, yet its salesmen marketed
According to the complaint, since at least February 2001 and continuing through the present,
Defendants Shiner and Swichkow used boiler room tactics at defendant Telecom Advisory, an
According to the complaint, the defendants made numerous material misrepresentations and
involved, failing to disclose that certain of the "non-voting" units would be sold before the
The six LLPs marketed by the defendants are Mile High Telecom Partners, LLP; Phone Company of
Investors were induced to purchase units in other LLPs by being repeatedly told that On
The complaint further alleges that Wetherald violated Section 17of the Securities Act of
The complaint seeks, among other things, a temporary restraining order that prohibits the
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