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UNITED STATES SECURITIES
AND EXCHANGE COMMISSION
Litigation Release
No. 16140/ MAY 11, 1999
[Securities and
Exchange Commission v. Theodore O. Pollard, C-99-
20421RMW(N.D. Cal.)]
PALO ALTO MAN
SUED FOR FRAUDULENT SALES OF SECURITIES OVER THE
INTERNET
The Securities
and Exchange Commission (“Commission”) announced
that on May 10, 1999, it filed a complaint against
Theodore O. Pollard (“Pollard”) of Palo Alto for
his offer and sale of securities over his Internet
Website, the “Winsell Exchange.” This action is
part of a coordinated action by the Commission
to combat the fraudulent offer and sale of securities
The Commission’s
complaint alleges that Pollard, using the names
“Winsell Exchange” and “World Investment Network,
Ltd.” maintained an Internet website over which
he fraudulently offered and sold so-called “prime
bank” securities. The complaint alleges that Pollard
solicited investments in the “Winsell $35K Lease
$1M” program during early 1998. Pollard told investors
their funds were to be used to “lease” larger
amounts of money that would in turn be used to
purchase “Top Bank” investments. Pollard promised
investors a $3,000,000 return in 10 months in
exchange for each $35,000 investment. Pollard
further stated the investment was “non-risk.”
These representations were baseless, as “prime
bank” investments do not exist; given this, the
returns were unattainable. Further, the Complaint
alleges by offering the securities in this manner,
Pollard acted as an unregistered broker. Pollard’s
solicitations led to at least one individual investing
$35,000.
The Complaint
alleges that by these acts, Pollard violated Section
17(a) of the Securities Act of 1933 and Sections
10(b) and 15(a) of the Exchange Act and Rule 10b-5
thereunder, and seeks a permanent injunction,
disgorgement with interest, an accounting, and
a civil penalty. The Commission’s complaint is
pending.
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