SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 18101 / April 23, 2003
FINAL JUDGMENTS OF PERMANENT INJUNCTION AND OTHER RELIEF ENTERED
AGAINST DONALD E. RHOADES AND KARYN MILLER
SECURITIES AND EXCHANGE COMMISSION V. WEB HOSTING HEADQUARTERS PARTNERSHIP,
DONALD E. RHOADES, KENNETH R. GROSSFELD, WAYNE L. PRICHASON, EDUARDO VILLAR,
AND KARYN MILLER, ET AL., Case No. 00-4975-CIV-HIGHSMITH-TURNOFF (S.D. Fla.,
filed Dec. 28, 2000)
The Securities and Exchange Commission (SEC) announced that on April
21, 2003, the United States District Court for the Southern District
of Florida entered Final Judgments of Permanent Injunction and Other
Relief ("Final Judgments") against Donald E. Rhoades ("Rhoades") and
Karyn Miller ("Miller"), entered by their consent, without admitting
or denying the allegations of the Commission's Complaint. The Final
Judgments enjoin Rhoades and Miller from violations of Sections 5(a),
5(c) and 17(a) of the Securities Act of 1933 (15 U.S.C. §§ 77e(a),
77e(c) and 77q) and Sections 10(b) and 15(a)(1) of the Securities
Exchange Act of 1934 (15 U.S.C. §§ 78j(b) and 78o(a)(1)) and Rule
10b-5 thereunder (17 C.F.R. 240.10b-5).
On December 28, 2000, the SEC filed an emergency action against
Rhoades, Miller and others seeking to enjoin the alleged ongoing
fraudulent securities offering being conducted by a Miami, Florida
boiler-room and its principals and telemarketers. Among other things,
the SEC's Complaint alleges that the boiler-room, Web Hosting
Headquarters Partnership (Web Hosting), failed to disclose to
investors that it was controlled by individuals with a prior history
of defrauding investors, and that it had diverted at least 62% of
funds raised from investors to pay its principals and telemarketers.
In addition to the permanent injunction, the Final Judgment entered as
to Rhoades also orders him to pay disgorgement in the amount of
$764,272, plus prejudgment interest thereon in the amount of $98,664,
and imposes a civil penalty of $185,000. The penalty will be
distributed to investors of Web Hosting pursuant to the Fair Funds
provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002. The
Final Judgment entered as to Miller orders her to pay disgorgement in
the amount of $154,015, plus prejudgment interest thereon, but waives
payment of disgorgement and does not impose a civil penalty based upon
Miller's sworn financial statement and supporting documentation
submitted to the Commission.
See also, (December 29, 2000).
SNIPPETS:
FINAL JUDGMENTS OF PERMANENT INJUNCTION AND OTHER RELIEF ENTERED AGAINST DONALD E. RHOADES
SECURITIES AND EXCHANGE COMMISSION V.
AND KARYN MILLER, ET AL., Case No. 00-4975-CIV-HIGHSMITH-TURNOFF (S.D.
The Securities and Exchange Commission announced that on April 21, 2003, the United States
The Final Judgments enjoin Rhoades and Miller from violations of Sections 5, 5and 17of the
On December 28, 2000, the SEC filed an emergency action against Rhoades, Miller and others
Among other things, the SEC's Complaint alleges that the boiler-room, Web Hosting
In addition to the permanent injunction, the Final Judgment entered as to Rhoades also orders
The Final Judgment entered as to Miller orders her to pay disgorgement in the amount of
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