 UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
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.
from:
http://www.sec.gov/litigation/litreleases/lr16140.txt
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