Securities and Exchange Commission
Litigation Release No. 18076 / April 8, 2003
Accounting and Auditing Enforcement
Release No. 1755 / April 8, 2003
SEC Charges Benjamin Rogatinsky, Former CEO of PrintontheNet.com, With
Accounting Fraud
SEC also Names Rogatinsky's Father as a Relief Defendant
and Freezes Assets To Recover Misappropriated Funds
, , Case No. 03-60648 (S.D. Fla., filed April 3, 2003)
On April 3, 2003, the Securities and Exchange Commission
("Commission") filed a complaint alleging securities fraud against
Hollywood, Florida resident Benjamin Rogatinsky, the former CEO of
PrintontheNet.com ("PrintontheNet"). The Complaint charges Rogatinsky
with orchestrating a fraudulent offering of PrintontheNet securities
and engaging in various improper accounting practices. The complaint
also names Rogatinsky's father, Reuven Rogatinsky of Hollywood,
Florida, as a relief defendant for allegedly receiving at least
$115,000 in proceeds from PrintontheNet's securities offering into his
foreign bank accounts. On April 4, 2003, the Commission obtained an
emergency order from the District Court temporarily freezing the
assets of Rogatinsky and his father.
The Commission's complaint alleges that in early 2000, PrintontheNet
raised approximately $3 million from investors in a private placement
of stock. The Complaint alleges that Rogatinsky violated the federal
securities laws in connection with the securities offering by 1)
failing to disclose that PrintontheNet was a guarantor on
approximately $7.3 million in loans received by related parties; 2)
failing to disclose that the largest loan underlying these guarantees
(in the amount of approximately $7 million) was in default; and 3)
causing PrintontheNet to file financial reports with the Commission
that misstated the financial performance of PrintontheNet and one of
its subsidiaries, PrintAmerica Interactive, Inc. ("PrintAmerica"). In
particular, the Complaint alleges that Rogatinsky falsified
PrintAmerica's books and records to conceal approximately $582,000 in
loans owed by PrintAmerica. These false entries resulted in
PrintAmerica's financial statements for the nine-month period ended
September 30, 1999 reflecting a net income of $96,371 when in fact,
PrintAmerica suffered a net loss of approximately $430,000 during the
same period.
The complaint also alleges that after receiving the $3 million in
SNIPPETS:
Accounting and Auditing Enforcement
On April 3, 2003, the Securities and Exchange Commission filed a complaint alleging
The Complaint charges Rogatinsky with orchestrating a fraudulent offering of PrintontheNet
The complaint also names Rogatinsky's father, Reuven Rogatinsky of Hollywood, Florida, as a
On April 4, 2003, the Commission obtained an emergency order from the District Court
The Commission's complaint alleges that in early 2000, PrintontheNet raised approximately $3
The Complaint alleges that Rogatinsky violated the federal securities laws in connection with
ies, PrintAmerica Interactive, Inc..
In particular, the Complaint alleges that Rogatinsky falsified PrintAmerica's books and
The complaint also alleges that after receiving the $3 million in proceeds from the stock
The Commission's complaint seeks a permanent injunction against Rogatinsky based on his
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