U.S. SECURITIES & EXCHANGE COMMISSION
LITIGATION RELEASE No. 18369 / September 29, 2003
COMMISSION FILES SUBPOENA ENFORCEMENT ACTION AGAINST JONATHAN G. FINK
SECURITIES AND EXCHANGE COMMISSION V. JONATHAN G. FINK
(United States District Court for the District of Massachusetts,
03-MBD-10291 (RWZ))
The Securities and Exchange Commission today announced that, on
September 25, 2003, it filed an action in Massachusetts federal court
to enforce a subpoena against Jonathan G. Fink, of Beverly Hills,
California. The Commission's Application alleges that, on June 2,
2003, the Commission served Fink with a subpoena requiring him to
appear for testimony on July 1, 2003. At Fink's request, the
Commission staff rescheduled Fink's testimony for July 16, 2003. Fink
appeared for testimony on July 16; however, his testimony was not
completed that day. As a result, Fink and Commission staff agreed to
reconvene his testimony on August 28 and 29. Fink never appeared for
testimony on those dates, claiming that he was ill. As of the date of
the Commission's filing, Fink had not responded to the staff's
requests that he provide documentary evidence concerning his purported
illness, nor had he proposed new alternative dates for reconvening his
testimony.
In its Application, the Commission alleges that, on April 15, 2003,
the Commission issued a formal order of private investigation entitled
In the Matter of Converge Global, Inc. Pursuant to the formal order,
Commission staff began investigating a possible stock manipulation
scheme related to Converge Global, Inc., a Florida-based holding
company that purports to sell telecommunications products through
TeleWrx, Inc., its sole operating subsidiary. Between at least March
and June 2002, Converge and others disseminated spam e-mails and press
releases projecting the explosive growth and success of TeleWrx's
network marketing program. Among other things, Converge's trading
volume increased 443%, on the day following issuance of one of the
press releases. On June 26, 2002, Fink admitted, during a telephone
interview with Commission staff, that he helped to draft at least some
of Converge's press releases. Fink is also a purported "consultant" to
Converge and, as such, appears to have received, and distributed, a
significant amount of Converge shares during the period at issue. The
Commission alleges in the Application that it requires the
continuation of Fink's testimony to determine his potential role with
respect to the Converge press releases and the potential manipulation
scheme related to trading in Converge common stock between at least
March and June 2002.
SNIPPETS:
U.S. SECURITIES & EXCHANGE COMMISSION
COMMISSION FILES SUBPOENA ENFORCEMENT ACTION AGAINST JONATHAN G. FINK
(United States District Court for the District of Massachusetts,
The Commission's Application alleges that, on June 2, 2003, the Commission served Fink with a
At Fink's request, the Commission staff rescheduled Fink's testimony for July 16, 2003.
Fink and Commission staff agreed to reconvene his testimony on August 28 and 29.
In its Application, the Commission alleges that, on April 15, 2003, the Commission issued a
Between at least March and June 2002, Converge and others disseminated spam e-mails and press
Among other things, Converge's trading volume increased 443%, on the day following issuance
On June 26, 2002, Fink admitted, during a telephone interview with Commission staff, that he
Fink is also a purported "consultant" to Converge and, as such, appears to have received, and
The Commission alleges in the Application that it requires the continuation of Fink's
Pursuant to its Application, the Commission is seeking an order directing Fink to show cause
The Commission's action has been assigned to the Honorable Rya W. Zobel, District Court Judge.
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