CEOs of Scam Companies

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___________________________________
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF WASHINGTON
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UNITED STATES SECURITIES
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AND EXCHANGE COMMISSION,
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CIVIL ACTION
Plaintiff,
) )
FILE NO.
CV-08-028-RHW
v.
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COMPLAINT OF PLAINTIFF
INTERNATIONAL BROADCASTING
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U.S. SECURITIES AND
CORPORATION
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EXCHANGE COMMISSION
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Defendant.
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___________________________________ ) COMPLAINT
Plaintiff, the United States Securities and Exchange Commission (“SEC”), alleges as follows:
NATURE OF THE ACTION
1.
This matter involves a fraud perpetrated by International Broadcasting Corporation, now known as Copper King Mining Corporation (“International
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Broadcasting”). As part of the fraud, International Broadcasting, through its former Chief Executive Officer (“CEO”) Daryn P. Fleming (“Fleming”), issued false press releases about its business operations. In addition, Fleming made false public statements about the press releases and the company’s business operations on behalf of International Broadcasting. Finally, International Broadcasting issued a Form 10-QSB containing material misrepresentations about one of the false press releases.
2.
International Broadcasting principally operates in Spokane, Washington and runs a radio network broadcast over the internet and through local radio station affiliates, with programming including “Stock Talk Live,” a microcap stock news talk show broadcast live to the public. On December 19, 2007, International Broadcasting changed its name to Copper King Mining Ventures.
3.
Through the activities alleged in this complaint, International Broadcasting has, and unless enjoined, will continue to, directly and indirectly, engage in transactions, acts, practices or courses of business which are violations of Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15
U.S.C. § 78j(b)] and Rule 10b-5 [17 C.F.R. § 240.10b-5] promulgated thereunder.
4. The SEC brings this action pursuant to Sections 21(d) and (e) of the Exchange Act [15 U.S.C. §§ 78u(d) and 78u(e)].
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JURISDICTION
5.
This Court has jurisdiction pursuant to Section 27 of the Exchange Act [15 U.S.C. § 78aa] and 28 U.S.C. § 1331.
6.
The acts, practices and courses of business constituting the violations alleged herein occurred within the jurisdiction of the United States District Court for the Eastern District of Washington and elsewhere.
7.
International Broadcasting is located in, and transacts business in, the Eastern District of Washington and elsewhere.
8.
International Broadcasting, directly or indirectly, has made, and is making, use of the mails or the means or instrumentalities of interstate commerce in connection with the transactions, acts, practices and courses of business alleged herein, in the Eastern District of Washington and elsewhere.
DEFENDANT
9.
International Broadcasting Corporation is a publicly-held Nevada corporation with its principal place of business in Spokane, Washington. International Broadcasting was formed as a news media company.
10.
International Broadcasting operates a radio network broadcast over the internet and through local radio station affiliates, with programming including “Stock Talk Live,” a microcap stock news talk show broadcast live to the public.
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FACTS
DEFENDANT INTERNATIONAL BROADCASTING ISSUED
FALSE PRESS RELEASES
The False October 28, 2005 Press Release
11.
On October 28, 2005, Fleming caused International Broadcasting to issue a press release announcing that it had acquired an AM radio affiliate, WIBQAM
1220 in Sarasota, Florida (“WIBQ”) to carry International Broadcasting programming. This press release quoted station general manager Scott Jacobson regarding his enthusiasm for acquiring International Broadcasting programming, particularly “Stock Talk Live.” This press release also claimed that WTMY and WWPR were International Broadcasting affiliates.
12.
The October 28, 2005 press release was false. WIBQ never played International Broadcasting programming, no one at WIBQ ever had any communications with anyone at International Broadcasting, and no one named Scott Jacobson worked at WIBQ. WTMY and WWPR were no longer International Broadcasting affiliates.
13.
Fleming knew, or was reckless in not knowing, that the October 28, 2005 press release was materially false.
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The False November 10, 2005 Press Release
14.
On November 10, 2005, Fleming caused International Broadcasting to issue another press release, announcing that it had acquired a 100,000 Watt FM radio affiliate, WTKS 104.1 FM in Cocoa Beach, Florida (“WTKS”) to carry International Broadcasting programming. The press release quoted WTKS program director Katherine Brown regarding her enthusiasm for acquiring International Broadcasting programming, particularly “Stock Talk Live.” This press release claimed that International Broadcasting now had four affiliates: WTMY, WWPR, WIBQ, and WTKS.
15.
The November 10, 2005 press release was also false. WTKS had never agreed to carry International Broadcasting programming. Furthermore, Katherine Brown, the WTKS program director, was never interviewed or ever spoke the words attributed to her in the November 10 press release.
16.
On November 14, 2005, International Broadcasting issued a press release retracting the November 10, 2005 release “due to erroneous content and fabricated quotes . . . . In fact, there have been no communications between [WTKS] and [International Broadcasting].”
17.
Fleming knew, or was reckless in not knowing, that the November 10, 2005 press release was materially false.
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DEFENDANT INTERNATIONAL BROADCASTING’S FORMER CEO
MADE MATERIAL MISREPRESENTATIONS OVER THE COMPANY’S
RADIO BROADCAST
November 14, 2005 Misrepresentations
18.
On November 14, 2005, Fleming made public statements on a “Stock Talk Live” radio broadcast.
19.
During that radio broadcast, an International Broadcasting investor called into the show and stated that he had been told by Katherine Brown that the November 10, 2005 press release was false. Fleming stated that the November 10, 2005 press release was not false, but that the owners of the radio station mentioned in that press release had made a “mistake.”
20.
When the investor asked Fleming whether any previous International Broadcasting press releases were also mistakes, Fleming stated that there were no other mistakes, and that International Broadcasting had three affiliates. Fleming also stated that the problem was related to the fact that the radio station discussed in the November 10, 2005 press release was in the process of being sold.
21.
The public statements made by Fleming on November 14, 2005 were false. The radio station discussed in the November 10, 2005 press release was not being sold, and International Broadcasting had no affiliates playing the company’s programming.
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22.
Fleming knew, or was reckless in not knowing, that these public statements he made on November 14, 2005 were false.
November 16, 2005 Misrepresentations
23.
On November 16, 2005, Fleming made public statements on a “Stock Talk Live” radio broadcast.
24.
During that radio broadcast, an International Broadcasting investor called into the show and stated that he had previously called the radio stations mentioned in the October 28, 2005 and November 10, 2005 press releases to confirm those press releases and was told by both stations that the releases were false.
25.
Fleming stated that the owner of the radio station mentioned in the November 10, 2005 press release “forced” International Broadcasting to issue the November 14, 2005 retraction “for legal reasons because of a change in ownership.” Fleming also stated that the radio station mentioned in the October 28, 2005 press release was incorrect in claiming that the press release was false due to “ownership overlap” with a new station manager coming in. Finally, Fleming stated that International Broadcasting would be back on that station again.
26.
These public statements made by Fleming on November 16, 2005 were false. There was never any potential purchase of either radio station
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anywhere near the time of these announcements, nor had been there any change of ownership or “ownership overlap,” or even any contemplation of adding International Broadcasting programming to their broadcasts.
27.
Fleming knew, or was reckless in not knowing, that these public statements he made on November 16, 2005 were false.
November 28, 2005 Misrepresentations
28.
On November 28, 2005, Fleming made public statements on a “Stock Talk Live” radio broadcast.
29.
During that radio broadcast, an agent of International Broadcasting, Mathew Bruce (“Bruce”) called into the show to explain the controversies over the October 28, 2005 and November 10, 2005 press releases. Bruce stated that International Broadcasting had entered into an affiliation agreement with potential buyers of the radio station mentioned in the November 10, 2005 press release, but because that potential purchase of that station fell through, this affiliation did as well. Bruce claimed that the November 10, 2005 release was true but that the owner of the radio station forced International Broadcasting to release the November 14, 2005 retraction anyway. Bruce also claimed that the radio station mentioned in the October 28, 2005 press release was in fact playing International Broadcasting programming around the time of that press release. Bruce also
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claimed that this radio station was now interested in playing International Broadcasting on its overnight block of programming.
30.
In response to most of Bruce’s public statements made on November 28, 2005, Fleming indicated his agreement, interjecting “correct,” “that’s right,” or “yeah.” After Bruce finished speaking, Fleming stated:
There you go, ladies and gentlemen. That clears the air for what happened, as I said, I would talk about, and there you have it. . . . [T]hat's Matt Bruce, a man of honor and integrity in helping us get the job done.
31.
The public statements made by Bruce on November 28, 2005 were false, and thus the affirmations and adoptions of those statements by Fleming on behalf of the company were also false. There was never any potential sale of either radio station in question, nor did either ever agree to or contemplate carrying International Broadcasting content.
32.
Fleming knew, or was reckless in not knowing, that the public statements made on November 28, 2005 were false.
DEFENDANT INTERNATIONAL BROADCASTING MADE MATERIAL MISREPRESENTATIONS IN ITS FORM 10-QSB FILED ON JANUARY 13, 2006
33. On January 13, 2006, International Broadcasting filed its Form 10COMPLAINT
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QSB for the quarter ending September 30, 2005, signed and certified by Fleming.
Under Item 2, Management’s Discussion and Analysis, the 10-QSB stated: On November 10, 2005, the Company announced that it had secured a radio station affiliate to carry our programming. The announcement was premature and was based upon a prospective sale of the radio station, which did not happen. We were forced to put out a press release retracting the radio station affiliate announcement by the current owner of that station. However, the material events and quotes in that press release were correct as announced.
34.
These assertions were false. There was never any prospective sale of the radio station, and the material events and quotes in the November 10, 2005 press release were false.
35.
Fleming knew, or was reckless in not knowing, that the assertions made in the company’s Form 10-QSB for the quarter ending September 30, 2005 were false.
COUNT I
Violations of Section 10(b) of the Exchange Act,
and Exchange Act Rule 10b-5
36.
Paragraphs 1 through 35 are re-alleged and incorporated by reference as though fully set forth herein.
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37.
As more fully described in paragraphs 1 through 35 above, Defendant International Broadcasting, acting through its former CEO Fleming, in connection with the purchase and sale of securities, by the use of the means and instrumentalities of interstate commerce and by the use of the mails, directly and indirectly: used and employed devices, schemes and artifices to defraud; made untrue statements of material fact and omitted to state material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; and engaged in acts, practices and courses of business which operated or would have operated as a fraud and deceit upon purchasers and sellers and prospective purchasers and sellers of securities.
38.
Defendant International Broadcasting knew, or was reckless in not knowing, the facts and circumstances described in paragraphs 1 through 35 above.
39.
By reason of the foregoing, Defendant International Broadcasting violated Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5].
RELIEF REQUESTED
Wherefore, the SEC respectfully requests that this Court:
I. Find that Defendant International Broadcasting committed the violations
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charged and alleged herein.
II.
Grant an Order of Permanent Injunction, in a form consistent with Rule 65(d) of the Federal Rules of Civil Procedure, permanently restraining and enjoining Defendant International Broadcasting, its officers, agents, servants, employees, attorneys and those persons in active concert or participation with them who receive actual notice of the Order, by personal service or otherwise, and each of them from, directly or indirectly, engaging in the transactions, acts, practices or courses of business described above, or in conduct of similar purport and object, in violation of Section 10(b) of the Exchange Act [15 U.S.C. § 78j] and Rule 10b-5 [17 C.F.R. § 240.10b-5] thereunder.
III.
Retain jurisdiction of this action in accordance with the principals of equity and the Federal Rules of Civil Procedure in order to implement and carry out the terms of all orders and decrees that may be entered or to entertain any suitable application or motion for additional relief within the jurisdiction of this Court.
IV
Grant an Order for any other relief this Court deems appropriate.
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Respectfully submitted,
s/ Jonathan S. Polish Jonathan S. Polish Robin Andrews Charles J. Kerstetter Attorneys for Plaintiff
U.S. SECURITIES AND
EXCHANGE COMMISSION
175 W. Jackson Blvd., Suite 900
Chicago, IL 60604
Telephone: [phone]
Facsimile: [phone]
Dated: January 23, 2008
COMPLAINT Page 13

http://www.sec.gov/litigation/complaints/2007/comp20442_ibc.pdf