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Boxing Promoter Cedric Kushner Promotions, Inc. and its Founder and Namesake, Cedric Kushner, Settle SEC Litigation Relating to False and Misleading Financial Statements Filed Prior to Auditors' Completion of 2002 Audit
On November 30, 2005, the U.S. District Court for the Southern District of New York entered a final judgment by consent against Cedric Kushner ("Kushner"), the Chairman of the Board, President, and Chief Executive Officer of New York-based boxing promoter Cedric Kushner Promotions, Inc. ("CKP"). On December 2, 2005, the Court entered a final judgment by consent against CKP. Without admitting or denying the allegations of the Commission's March 24, 2004 Complaint charging CKP with filing an annual report and an amended annual report containing materially false and misleading financial statements in May 2003, CKP and Kushner have agreed to settle all charges asserted by the Commission. See Litigation Release No. 18638 (March 25, 2004). CKP consented to issuance of an order imposing a fraud injunction and requiring certain remedial undertakings, and Kushner consented to issuance of an order imposing a fraud injunction and a $60,000 civil penalty, and permanently barring him from serving as an officer or director of a public company.
SEC COMPLAINT
As alleged in the SEC's Complaint, on May 20, 2003, CKP filed a Form 10-KSB for the year ended December 31, 2002, which falsely represented that two separate audit firms had issued unqualified reports approving the firm's financial statements. In fact, the audit was not yet complete, and neither auditor had yet issued a report or consented to the filing of the Form 10-KSB. The Complaint alleges further that the financial statements misstated, among other things, the company's total assets by over 100%, but that Kushner executed the certification required by the Sarbanes-Oxley Act that they fairly presented the company's financial condition. On May 23, 2003, the company filed an amended Form 10-KSB which disclosed that the auditors had not consented to the May 20 filing, but, the Complaint alleges, the audit was still not complete as of May 23 and the financial statements which accompanied that filing were also materially false and misleading. Further, according to the Complaint, the company failed to devise and maintain internal controls sufficient to ensure that transactions were recorded accurately.
SEC SETTLEMENT
CKP, without admitting or denying the allegations in the Commission's Complaint, consented to entry of a final judgment permanently enjoining it from violating Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5, 12b-20 and 13a-1 thereunder; and ordering it to implement certain remedial undertakings. The remedial undertakings include appointment of new Chief Executive and Financial Officers, creation of an independent audit committee and majority independent board of directors, and retention of an independent consultant to analyze the company's internal accounting controls, recommend improvements and oversee implementation of those improvements. These undertakings represent an unusual departure from the Commission's policy of limited intrusion into corporate governance, but were required by the unique facts of this case: the company's current two person board of directors consists of its Chairman, President and CEO Kushner who will now be barred from serving as an officer or director of any public company, and its Principal Financial and Accounting Officer James DiLorenzo who is a defendant litigating similar charges of fraud brought by the Commission. Further, Kushner and DiLorenzo collectively are beneficial owners of 45% of the company's outstanding voting shares.
Kushner, without admitting or denying the allegations in the Commission's Complaint, consented to entry of a final judgment: (1) permanently enjoining him from violating Exchange Act Section 10(b) and Exchange Act Rules 10b-5 and 13a-14 (the Sarbanes-Oxley certification provision), aiding and abetting violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20 and 13a-1 thereunder, and controlling others in the commission of the aforementioned violations; (2) ordering him to pay a civil penalty of $60,000; and (3) permanently barring him from serving as an officer or director of a public company.
http://www.sec.gov/litigation/litreleases/lr19485.htm
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Home | Previous Page Modified: 12/05/2005
Court Enters Final Judgment by Consent Against Defendants Dennis S. Herula and Watch Hill Capital Management LLC
Commission Dismisses Its Action as to Relief Defendant Mary Lee Capalbo
The Commission announced that on November 30, 2005, a San Francisco federal court entered final judgments by consent against Dennis S. Herula and Watch Hill Capital Management LLC, both defendants in a fraud action filed by the Commission on July 31, 2002. The Commission alleged in its complaint that Herula, Watch Hill and others participated in a fraudulent offering of securities that raised at least $40 million from investors in July 2002. In the consent judgments, the Honorable Jeffrey S. White permanently enjoined Herula and Watch Hill from future violations of certain antifraud provisions of the federal securities laws. In addition, on November 30, 2005, the Commission dismissed its action as to Relief Defendant Mary Lee Capalbo.
The Commission alleged in its complaint that Herula is the registered agent and manager of Watch Hill. According to the Commission's complaint, Watch Hill and others, aided and abetted by Herula, falsely promised investors exorbitant returns, such as a 100% return per week, through a fraudulent prime bank trading program. The complaint further alleged that, in the span of several weeks in July 2002, Herula and others spent at least $4 million in investor funds on personal and luxury items such as cars, jewelry, and large hotel bills.
Without admitting or denying the allegations in the Commission's complaint, Herula and Watch Hill consented to the final judgments entered by the Court. The judgment as to Herula permanently enjoined him from future violations of Section 10(b) of the Securities Exchange Act of 1940 ("Exchange Act") and Rule 10b-5 thereunder. The judgment as to Watch Hill permanently enjoined it from future violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. According to the final judgment as to Herula, in a related criminal action arising from the conduct in this matter (United States v. Dennis S. Herula, Case Number 02-CR-485-02-RB (D. Colo.)), he was ordered on February 11, 2005 to pay full restitution in the amount of $3,945,189.07 to the victims of his fraud and to be incarcerated for 188 months. In addition, the Court in the Commission's action had previously entered judgments by default against two other defendants, Claude Lefebvre and RMO Assets Management SA, in which they were ordered to pay a total of almost $6 million in disgorgement, prejudgment interest, and civil penalties. The Court also returned directly to investors over $13 million that was frozen by the Court when the Commission first filed its action. Lefebvre is now in prison serving a 20 year sentence after being convicted of related criminal charges in December 2004.
In addition, on November 30, 2005, the Commission entered into a stipulation of dismissal with Relief Defendant Capalbo, thereby dismissing the Commission's claim as to her.
For further information, please see Litigation Rel. No. 19011 (December 22, 2004) [Herula pleads guilty and Lefebvre found guilty in parallel criminal action]; Litigation Rel. No. 18676 (April 23, 2004) [judgments by default against Lefebvre and RMO Assets Management]; Litigation Rel. No. 17793 (October 18, 2002) [Court issues preliminary injunctions and asset freezes as to Herula, Watch Hill and Capalbo]; and Litigation Release No. 17652 (August 2, 2002) [temporary restraining order and asset freeze against Herula, Watch Hill and others].
http://www.sec.gov/litigation/litreleases/lr19484.htm
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Home | Previous Page Modified: 12/05/2005
SEC Obtains Preliminary Injunctions in Case Involving Fraudulent Investment Scheme Targeting Cambodian Immigrants
The Securities and Exchange Commission announced today that it obtained preliminary injunctive relief against all five defendants in an emergency enforcement action filed by the Commission on November 15, 2005 in federal district court in Massachusetts. On November 23, 2005, the Honorable Reginald C. Lindsay, United States District Judge for the District of Massachusetts, entered an order granting preliminary injunctions, asset freezes, and other relief against James Bunchan, Christian Rochon, WMDS, Inc. and One Universe Online, Inc. On December 2, 2005, Judge Lindsay entered an order granting a preliminary injunction, an asset freeze, and other relief against the remaining individual defendant, Seng Tan.
The Commission alleged in its complaint that the defendants operated a fraudulent investment scheme in which they falsely promised members of the Cambodian immigrant community guaranteed monthly returns that would pass on to future generations. The complaint alleged that the defendants emphasized their shared Cambodian heritage with their victims, and written solicitation documents drew a parallel between investing in WMDS and fulfilling the American dream, stating that WMDS "urges you to sign up now or you will miss your best chance of fulfilling your American dream." In fact, according to the complaint, the defendants were operating a fraudulent pyramid scheme and ceased making the promised monthly payments recently. According to the Commission's complaint, the defendants operated a scheme that raised at least several million dollars from hundreds of investors, mainly members of the Cambodian immigrant community. In papers filed in support of the preliminary injunctions the Commission informed the Court that (a) fifty-eight alleged victims have been identified and interviewed by the Commission thus far; (b) records seized from the defendants indicate that at least 300-400 people invested in WMDS; (c) the total amount of money invested by the fifty-eight alleged victims identified to date exceeds $8.8 million; (d) the net losses suffered by those fifty-eight alleged victims exceeds $5.6 million; and (e) the amounts of monies invested by other potential victims, and the losses suffered by them, have not yet been quantified. The Commission alleged in its complaint that the defendants violated anti-fraud provisions of the federal securities laws, specifically Section 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 Commission also alleged that the defendants violated the registration provisions of the securities laws, namely Sections 5(a) and 5(c) of the Securities Act of 1933.
In addition to the civil complaint filed against them by the Commission, all three individual defendants have been arrested by federal criminal authorities in connection with the scheme described above. The arrests were made pursuant to a criminal complaint and arrest warrant obtained by the Office of the United States Attorney for the District of Massachusetts. The arrest warrants were executed by special agents of the Federal Bureau of Investigation. Defendants Tan and Bunchan have been ordered detained pending trial in the criminal matter by United States Magistrate Judges in Boston, Massachusetts and Miami, Florida, respectively. Defendant Rochon was released pending trial after a bail hearing in which a Magistrate Judge imposed various conditions on an unsecured bond.
For further information, see Litigation Release No. 19464 (November 16, 2005)
http://www.sec.gov/litigation/litreleases/lr19483.htm
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Home | Previous Page Modified: 12/05/2005
Send it to the SEC!!!!!
I have all the faith in the world Peg!!!!! Not a prob!!!!
I'm off this rock Dan!!!! The politics and inhabitants can live with each other, Maybe when i visit it will be bare haaaaaaaaaa
I hear ya on the cold Raymond, and YES I am always out of trouble, Its just some of the scum in this world like trying to create a lil for me, They always lose thou!!!! weeeeeeee
Just waiting for closing, and no buyer yet!!! a few keep asking questions and coming around, we will see!!!! Things will be fine one way or the other, Getting pretty good at making money go a lot farther right now weeeeeeeeeeeeee
LOL Gentlemen don't wear plaid, LOL I do!!!
HEY YA OL POOP!!!!!!!!!!!! wasssssssssup
haaa yeah those!!!!
WEEEEEEEEEEEEEEEEEEEEEEEEEE
HAAA Yeah she told me when I got home and was laughing her A$$ off, pretty funny, Now just tell super derf to get his gruby lil paws off ya!!!! LOLOL
I cant get into christmas just yet, When we get in the new home, things will be different!!! And I can relax!!!!!!!!!!!!
MERRY CHRISTMAS to you and your loved ones DP
You didnt take any!!! did ya???? haaaaaaaaaa
LOL Perfect!!!!!! HI DP!!!
Good I am in a lil higher and been bagholding since weeeeeeee TO DA MOON YA POS!!!!!!!!!!!!!!
HAAAAAA Na it would be pink!!!!! LOL Hi Ron!!!
Doing well today De!!! Let go of the future and what a relief!!! I have no control of what will be, i can plan and leave it at that!!!! Amazing how that works haaaaaaaaa
NO 5TH!!!! YOU MUST ANSWER THE QUESTION!!! haaaaaaa
Glad ya like it Mick, This is a weird christmas with moving and all, We dont have a tree no lights up nuttin, When we get to the new home, we will put up a tree and the presnt is the new house underneath it haaaaaaaaaa
That's what's neat about Ace Utilites, They have the cookie cleaner built in, and we can select which cookies we want to keep, All the others get deleted once a day weeeeee
Hi Mick!!!!!!!!!!!
LOL Silly her!!! Enjoy your grub!!!!!!!!!!
He better be, Howdy Gary!!!!!!!!!!!!!!!
HEY SUPER!!!!!!!!!!!!! YOU LEAVE MA WIMMINS ALONE BROOOOOOOOOOO haaaaaaaaaaaaaaaa
I baby blue caught me off gaurd But I knida like it, hehe
HAAAAAAAAAAAAAAAAAAAAAAAA
hahahah A banana jinx!!!!! Too funny, I thought you was going to say, i reached in my pocket for a pen and got a fist full of glop!!!!
WE HAVE A SLEEPER!!!!!!!!!!!! BTWO 0.0007 0.0003 up(75.00) %0.0005 0.0007 47,703,465
HAAAAAAAAAAAA I hear ya, all these divie plays as well, Nothing but bullchit buckey!!! JB is a damn basher haaaaaaaaaaaaa I am proud to know him, I guess i am on that list as well, If more folks paid attention to what these seasoned investor/traders are saying, they just may save a few bucks to these scams but NOOOOOOOOOOOOOOOOOOOOOOOOO BAAAAAAAAAAAAAAAAAAAA the sheep follow the hype,
sorry couldn't be more help Susie!!!
Musta been a misprint I show .0038 HOD!!
INTERNAT BROADCAST CORP - Nasdaq National Market: IBCSE
Exchange QuoteLast Change (%) Trade Time Bid (size) Tick Ask (size) Day Volume
0.0038 0.0008 (26.67) 13:56 0.0035 (50) + 0.0044 (50) 3,406,581
Latest Ticks Prev Close Open Low High Avg Day Vol
=++= 0.003 0.003 0.002 0.0038 1,179,600
Weird on the ask, they are!!
INTERNAT BROADCAST CORP - Nasdaq National Market: IBCSE
Rec. Time Action Price Volume
2:17:56 PM Ask 0.0044 5000
2:07:20 PM Ask 0.0045 5000
1:56:10 PM Ask 0.005 5000
1:56:08 PM Ask 0.0049 5000
1:56:08 PM Trade 0.0038 5000
1:56:06 PM Ask 0.0047 5000
1:56:06 PM Trade 0.0038 109100
1:56:02 PM Ask 0.0042 5000
1:55:54 PM Trade 0.0035 5000
1:55:30 PM Bid 0.0035 5000
1:55:30 PM Ask 0.0038 5000
1:55:28 PM Trade 0.0034 5000
1:54:34 PM Trade 0.0034 5000
1:53:52 PM Trade 0.0034 2500
1:52:26 PM Ask 0.0034 5000
1:52:24 PM Bid 0.003 5000
1:52:24 PM Ask 0.0033 5000
1:52:24 PM Trade 0.003 72300
1:51:44 PM Trade 0.003 178350
1:47:46 PM Trade 0.003 150000
1:46:36 PM Trade 0.003 100000
1:46:34 PM Trade 0.0028 100000
1:41:40 PM Trade 0.003 100000
1:40:56 PM Trade 0.003 100000
1:25:06 PM Trade 0.003 100000
1:24:28 PM Trade 0.003 2500
1:21:40 PM Bid 0.0028 5000
1:07:04 PM Bid 0.0025 5000
1:06:04 PM Bid 0.0022 5000
1:06:04 PM Trade 0.0025 225000
1:04:12 PM Trade 0.003 1000
1:04:10 PM Trade 0.0025 1000
1:02:28 PM Bid 0.0025 5000
1:02:10 PM Ask 0.003 5000
1:01:40 PM Ask 0.0034 5000
1:01:38 PM Trade 0.0025 25000
12:59:36 PM Trade 0.0022 130000
12:59:30 PM Ask 0.0025 5000
12:59:30 PM Bid 0.0022 5000
12:59:22 PM Trade 0.0022 50000
12:45:48 PM Trade 0.0022 100000
12:41:10 PM Ask 0.0022 5000
12:37:18 PM Bid 0.002 5000
12:35:10 PM Trade 0.0021 200000
12:33:38 PM Trade 0.0021 30000
12:33:34 PM Bid 0.0021 5000
12:33:30 PM Trade 0.0024 50000
12:22:02 PM Trade 0.0025 77000
12:20:42 PM Trade 0.0024 31500
12:19:24 PM Bid 0.0024 5000
Maybe they have something new, I know when i had wash sells it wouldn't bring them all over, I had to go and figure that out myself, The money we spend on gainskeeper one would think THEY would do this for us!!!
HAAAAAAAA You're both fishin nuts, I LOVE IT!!!!!!!! Bring home da biguns Jim!!
My pleasure Billy!!!!
Later subbers!!!!