WWEBNET, Inc.(fka WWEB)

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SEC Litigation Release
Jan 22, 2015
OTC Disclosure & News Service

Washington, DC -

U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23177 / January 22, 2015
Securities and Exchange Commission v. Wwebnet, Inc. and Robert L. Kelly,, Civil Action No. 12-CV-6581 (AT) (S.D.N.Y.)
The Securities and Exchange Commission announced today that on January 16, 2015, the Honorable Analisa Torres of the United States District Court for the Southern District of New York entered a final judgment by consent against defendant Robert L. Kelly. The final judgment imposes on Kelly a permanent injunction against future violations of 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, prohibits Kelly from acting as an officer or director of a public company, and bars him from participating in an offering of penny stock. The final judgment also orders that Kelly is liable for disgorgement of $2,111,660 and prejudgment interest, which is deemed satisfied by the order of restitution entered against Kelly in a related criminal federal action.

In its August 28, 2012 Complaint, the Commission alleged that, between 2005 and 2008, Wwebnet, Inc., a video software company, and Kelly made false and misleading statements and omissions to investors, including: (1) failing to disclose and misrepresentations concerning the existence of a related-party transaction, which enabled Kelly to funnel at least $2.1 million of investor funds to himself, including approximately $2 million which was sent to his personal options trading account in the Cayman Islands; and (2) misrepresentations that Wwebnet had been generating revenue pursuant to contracts with entertainment companies when Wwebnet had never generated any such revenue.

On October 3, 2012, Kelly was criminally charged in connection with similar conduct and he pled guilty to securities and wire fraud charges on March 14, 2014. United States v. Kelly, 12-CR-0888 (PAC) (S.D.N.Y.) On September 18, 2014, the District Court for the Southern District of New York sentenced Kelly to 27 months imprisonment and ordered payment of $2,111,600 in restitution.

For further information, please see Litigation Release No. 22461 (August 29, 2012)

The Commission acknowledges the assistance of the U.S. Attorney's Office for the Southern District of New York and the Federal Bureau of Investigation.



http://www.sec.gov/litigation/litreleases/2015/lr23177.htm


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