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1
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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
ALLEGES STANSBERRY COMPLAINT ALLEGES PIRATE SECURITIES EXCHANGE UNSOLICITED E-MAILS PIRATE INVESTOR REPORT EXCHANGE COMMISSION LLC FRANK PORTER STANSBERRY DISTRICT MONEY SUBSCRIBERS SELL CONTRACT REVENUES DISGORGEMENT CIVIL MONEY PENALTIES DEFENDANTS YIELD YORK STOCK EXCHANGE ENABLE INVESTORS PAYMENT REPORT YIELDING REVENUES ENGAGING SECURITIES EXCHANGE ACT THEREUNDER |
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 18090 / April 14, 2003
S.E.C. v. Agora, Inc., Pirate Investor, LLC and Frank Porter
Stansberry; Docket No. MJG 03 1042 (U.S.D.C., D.Md.)
The Securities and Exchange Commission filed a complaint in the United
States District Court for the District of Maryland, on April 10, 2003,
seeking a permanent injunction against Agora, Inc., Pirate Investor,
LLC and Frank Porter Stansberry. The complaint alleges that Agora,
Pirate and Stansberry violated the antifraud provisions of the federal
securities laws. The complaint also seeks disgorgement and civil money
penalties from all three defendants.
The complaint alleges that beginning May 14, 2002, Agora, Pirate and
Stansberry disseminated unsolicited e-mails to subscribers of more
than 15 Internet newsletters published by Agora. It is alleged that
the e-mails, which were authored by Stansberry, offered to sell inside
information concerning government approval, to be announced on May 22,
2002, of a contract which would yield billions in dollars in revenues
for an unnamed company listed on the New York Stock Exchange and would
enable investors to double their money on the announcement. It is
further alleged that the unsolicited e-mails stated the inside
information had been obtained from a senior executive of the company
and offered to sell a report, which named the company, for a payment
of $1000. The complaint alleges that approximately 1000 subscribers
purchased copies of the report yielding revenues of approximately
$1,000,000 for Agora. Finally, the complaint alleges that the
so-called inside information was false in that even the company did
not know when government approval of the contract would be received
and that such approval was ultimately not received on May 22 as
promised in the unsolicited e-mails and the report.
It is alleged that by engaging in such conduct Agora, Pirate and
Stansberry violated Section 10(b) of the Securities Exchange Act of
1934 and Rule 10b-5 thereunder.
_________________________________________________________________
Modified 04/15/2003
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