UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 18083 / April 10, 2003
FEDERAL COURT ORDERS $2.1 MILLION DISGORGEMENT AND $120,000 PENALTIES
IN SECURITIES OFFERING FRAUD
, Civil Action No. 02-01073-JFW (VBKx) (C.D. Cal.)
The Securities and Exchange Commission announced today that on March
25, 2003, the Honorable John F. Walters, United States District Judge
for the Central District of California, entered a final judgment of
disgorgement and penalties in a securities offering fraud case brought
against Alexander Naujoks, aka Alexander P. Thorn, of Huntington
Beach, California, and his companies, Exectrek, Inc., ACSports.com,
and World Markets Group (collectively, "the companies").
On February 5, 2002, the Commission filed its complaint against the
defendants, seeking emergency relief to halt the ongoing fraudulent
offering of stock in the companies. The Court entered a temporary
restraining order that same day, and froze the defendants' assets. On
September 23, 2002, Thorn and the companies consented to a judgment of
permanent injunction prohibiting them from violating the securities
registration and antifraud provisions of the federal securities laws,
Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, and
Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5
thereunder. The Court entered the judgment of permanent injunction on
September 26, 2002.
The Court's March 25, 2003 judgment concludes the Commission's action
against the defendants. The Court ordered Thorn, Exectrek and ACSports
to pay disgorgement of $2.1 million plus prejudgment interest. The
Court also ordered Thorn, the creator and chief officer of the
companies, to pay a civil penalty of $120,000.
In issuing its judgment, the Court found that the defendants solicited
investors nationwide through cold-calls and personal solicitations to
finance and operate the companies' purported online business
operations. The Court concluded that defendants engaged in an
unregistered stock offering, and that no exemption from registration
applied to the defendants' offering. The Court also found that the
defendants solicited investors to purchase stock in the companies
through fraudulent misrepresentations, including that (1) the
companies would be going public via an initial public offering in 30
to 90 days when, in fact, none of the companies was ever close to a
public offering; (2) the investment would triple in value immediately
once the companies went public, even though the companies had minimal
assets and no performance history in any of their purported products,
SNIPPETS:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
FEDERAL COURT ORDERS $2.1 MILLION DISGORGEMENT AND $120,000 PENALTIES IN SECURITIES OFFERING
The Securities and Exchange Commission announced today that on March 25, 2003, the Honorable
On February 5, 2002, the Commission filed its complaint against the defendants, seeking
The Court entered a temporary restraining order that same day, and froze the defendants'
On September 23, 2002, Thorn and the companies consented to a judgment of permanent
The Court entered the judgment of permanent injunction on September 26,
Exectrek and ACSports to pay disgorgement of $2.1 million plus prejudgment interest.
The Court also ordered Thorn, the creator and chief officer of the companies, to pay a civil
the Court found that the defendants solicited investors nationwide through cold-calls and
The Court also found that the defendants solicited investors to purchase stock in the
ts, services, or financials; Compaq and Oracle had invested in Exectrek when, in fact, these
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