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SEC Cracks down On Internet Securities Auctions

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The Securities and Exchange Commission has issued cease and desist orders against three individuals for illegally offering to sell securities on an Internet auction site. According to the SEC, one respondent had misrepresented the likelihood that Mindhunt.com would go public; a second illegally offered to sell unregistered stock in AmeriGa.net; and a third illegally offered to sell restricted securities in Metropolitan Health Networks, Inc. Respondents neither admitted nor denied the claims against them. Commenting on these actions, an SEC Administrator reminded the securities industry that the federal securities laws "apply in cyberspace, just as they do elsewhere." (In the matter of Richard L. Davis, Rel. No. 33-7756, Ad. Proc. File No. 3-10080; In the matter of John R. Hoff, Rel. No. 33-7757, Ad. Proc. File No. 3-10081; In the matter of Louis Sitaras, Rel. No. 33-7758, Ad. Proc. File No. 10082; 10/20/99)

For more information, contact:
Joel W. Sternman at (212) 940-7060 or e-mail jwsternman@rosenman.com, or John P. Stigi at (212) 940- 8543 or e-mail jpstigi@rosenman.com

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