2000-11-17 sec-litreleases litigation_release 65 KB 2,921 chars

SEC v. Internet Capital Holdings, Inc.; Internet Capital Holdings II, Inc.; William E. Griffis; and Peter J. Buzanis, No. LR-16803, Southern District of Florida (Nov. 17, 2000) — Press Release

raw: Internet Capital Holdings, Inc., Internet Capital Holdings II, Inc., William E. Griffis and Peter J. Buzanis

Internet Capital Holdings, Inc., Internet Capital Holdings II, Inc., William E. Griffis and Peter J. Buzanis, No. LR-16803 (Nov. 17, 2000)

Caption
SEC v. Internet Capital Holdings, Inc, et al.
Source JSON
summary

The SEC shut down a $2 million boiler room scheme by Internet Capital Holdings, Inc., Internet Capital Holdings II, Inc., and their principals William E. Griffis and Peter J. Buzanis, who falsely claimed ownership of equity in high-tech startups like E*Offering and Workfire.com, leading to emergency asset freezes, a receiver appointment, and charges of securities fraud under the Securities and Exchange Acts.

paragraph

The SEC alleged that Internet Capital Holdings, Inc. (ICH) and Internet Capital Holdings II, Inc. (ICH II), led by CEO Peter J. Buzanis and President William E. Griffis, raised over $2 million from U.S. investors through unregistered securities offerings based on false claims of holding substantial equity in high-tech startups such as E*Offering, Workfire.com, and Autotradecenter.com. In reality, the companies had no such interests, and investor funds were funneled to Internet Capital Consultants, Inc., a relief defendant controlled by the same principals. The SEC obtained emergency court orders to freeze assets, appoint a receiver, and seeks permanent injunctions, disgorgement of ill-gotten gains, and civil penalties for violations of Sections 5(a), 5(c), 17(a) of the Securities Act, Section 10(b) and Rule 10b-5 of the Exchange Act, and Section 7(a) of the Investment Company Act.

narrative

The Securities and Exchange Commission shut down a $2 million fraudulent boiler room operation in West Palm Beach, Florida, targeting U.S. investors through unregistered securities offerings by Internet Capital Holdings, Inc. (ICH) and Internet Capital Holdings II, Inc. (ICH II). The defendants, led by CEO Peter J. Buzanis and President William E. Griffis, falsely claimed to hold substantial equity stakes in high-tech internet startups including E*Offering, Inc., Workfire.com, Inc., and Autotradecenter.com, Inc., when in fact they held no such interests. Investor funds were diverted to Internet Capital Consultants, Inc., a relief defendant controlled by the same principals, which the SEC also sought to freeze assets against. On November 16, 2000, the U.S. District Court for the Southern District of Florida granted emergency orders to halt the scheme, freeze all related assets, and appoint a receiver pending a preliminary injunction hearing. The SEC’s complaint charged the defendants with violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, Section 15(a)(1) of the Exchange Act, and Section 7(a) of the Investment Company Act of 1940. The Commission is seeking a permanent injunction to bar future fraud, disgorgement of all unjust enrichment, and civil penalties under Sections 20(d) and 21(d) of the respective Acts. The case underscores the SEC’s aggressive enforcement against boiler room schemes masquerading as high-tech investment opportunities.

Enriched metadata

Scheme
boiler-room (100%)
Court
Southern District of Florida
Entity
Internet Capital Holdings, Inc.
Classified boiler-room(confidence 100%). EDGAR detection: forms Form D· recall 50% / precision 4%. detection rule →
Statutes
Sections 5(a), 5(c), and 17(a) of the Securities ActSections 5(a), 5(c), and 17(a) of the Securities ActSections 5(a), 5(c), and 17(a) of the Securities ActSection 10(b) of the Securities Exchange ActSection 7(a) of the Investment Company ActSection 20(d) of the Securities ActRule 10b-5
Parties
Securities and Exchange CommissionInternet Capital Holdings II, Inc.Internet Capital Holdings, Inc.William E. GriffisPeter J. Buzanis
Keywords
internet capitalichcapital holdingsincwilliam griffispeter buzanisinternetcapitalsecuritiessecurities exchangeholdingsgriffisbuzaniswilliampeter

Extracted insights

Dollar amounts 2
  • $2.00M $2 MILLION $1M–$10M
  • $2.00M $2 million $1M–$10M
Entities 1
  • agency Securities and Exchange Commission
Triples 7
  • Securities and Exchange Commission announced on November 16, 2000, the Honorable Daniel T.K. Hurley of the United States District Court for the Southern District of Florida entered multiple emergency Orders to halt an ongoing, fraudulent offering of unregistered securities by Internet Capital Holdings, Inc. and Internet Capital Holdings II, Inc.
  • SEC alleged ICH and ICH II have raised over $2 million from investors in the United States through a fraudulent 'high-tech' stock offering
  • SEC alleges ICH and ICH II do not hold substantial interests in those companies
  • The Court ordered the Relief Defendants' assets be frozen pending a hearing on the SEC's motion for preliminary injunction on November 21, 2000
  • The Commission seeks a final judgment: permanently enjoining ICH, ICH II, Peter J. Buzanis and William E. Griffis from committing securities fraud in violation of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Section 15(a)(1) of the Exchange Act in connection with the offer and sale of the securities of ICH and ICH II and Section 7(a) of the Investment Company Act of 1940
  • The Commission seeks ordering Defendants ICH, ICH II, Peter J. Buzanis, William E. Griffis and Relief Defendant Internet Capital Consultants, Inc., to disgorge their unjust enrichment
  • The Commission seeks assessing civil penalties against them pursuant to Section 20(d) of the Securities Act and Section 21(d) of the Exchange Act
View original SEC litigation releasesec.gov
Extracted body text (2,921c) 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 16803 / November 17, 2000 $2 MILLION DOLLAR BOILER ROOM OPERATION SHUT DOWN IN WEST PALM BEACH, FLORIDA. SECURITIES AND EXCHANGE COMMISSION V. INTERNET CAPITAL HOLDINGS, INC., INTERNET CAPITAL HOLDINGS II, INC., WILLIAM E. GRIFFIS AND PETER J. BUZANIS, Case No. 00-9028-CIV-HURLEY (S.D. Fla.) The Securities and Exchange Commission (SEC) announced that on November 16, 2000, the Honorable Daniel T.K. Hurley of the United States District Court for the Southern District of Florida entered multiple emergency Orders to halt an ongoing, fraudulent offering of unregistered securities by Internet Capital Holdings, Inc. ("ICH") and Internet Capital Holdings II, Inc. ("ICH II), two unregistered investment companies. In its Complaint and application to the Court for a temporary restraining order, asset freeze and appointment of a receiver, all of which the Court granted, the SEC alleged that ICH and ICH II have raised over $2 million from investors in the United States through a fraudulent "high-tech" stock offering. The other named defendants are Peter J. Buzanis and William E. Griffis of West Palm Beach Florida. Mr. Buzanis was the Chief Executive Officer, Secretary, and a Director of ICH and ICH II, with Mr. Griffis acting as President. According to the SEC's Complaint, ICH and ICH II and their principals Peter J. Buzanis and William E. Griffis claimed to hold substantial equity positions, in various up and coming high tech internet start-ups, including E*Offering, Inc., Workfire.com, Inc. and Autotradecenter.com, Inc. The SEC's complaint alleges that, in reality, ICH and ICH II do not hold substantial interests in those companies. The SEC's complaint also names Internet Capital Consultants, Inc. as a Relief Defendant. The SEC alleges that the Relief Defendant, which is controlled by the principals of ICH and ICH II received investor funds to which investors are entitled. The Court ordered that the Relief Defendants' assets be frozen pending a hearing on the SEC's motion for preliminary injunction on November 21, 2000. The Commission seeks a final judgment: permanently enjoining ICH, ICH II, Peter J. Buzanis and William E. Griffis from committing securities fraud in violation of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, and Section 15(a)(1) of the Exchange Act in connection with the offer and sale of the securities of ICH and ICH II and Section 7(a) of the Investment Company Act of 1940; ordering Defendants ICH, ICH II, Peter J. Buzanis, William E. Griffis and Relief Defendant Internet Capital Consultants, Inc., to disgorge their unjust enrichment; assessing civil penalties against them pursuant to Section 20(d) of the Securities Act and Section 21(d) of the Exchange Act.
OCR text (2,921c · plain-text · 99% conf) 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 16803 / November 17, 2000 $2 MILLION DOLLAR BOILER ROOM OPERATION SHUT DOWN IN WEST PALM BEACH, FLORIDA. SECURITIES AND EXCHANGE COMMISSION V. INTERNET CAPITAL HOLDINGS, INC., INTERNET CAPITAL HOLDINGS II, INC., WILLIAM E. GRIFFIS AND PETER J. BUZANIS, Case No. 00-9028-CIV-HURLEY (S.D. Fla.) The Securities and Exchange Commission (SEC) announced that on November 16, 2000, the Honorable Daniel T.K. Hurley of the United States District Court for the Southern District of Florida entered multiple emergency Orders to halt an ongoing, fraudulent offering of unregistered securities by Internet Capital Holdings, Inc. ("ICH") and Internet Capital Holdings II, Inc. ("ICH II), two unregistered investment companies. In its Complaint and application to the Court for a temporary restraining order, asset freeze and appointment of a receiver, all of which the Court granted, the SEC alleged that ICH and ICH II have raised over $2 million from investors in the United States through a fraudulent "high-tech" stock offering. The other named defendants are Peter J. Buzanis and William E. Griffis of West Palm Beach Florida. Mr. Buzanis was the Chief Executive Officer, Secretary, and a Director of ICH and ICH II, with Mr. Griffis acting as President. According to the SEC's Complaint, ICH and ICH II and their principals Peter J. Buzanis and William E. Griffis claimed to hold substantial equity positions, in various up and coming high tech internet start-ups, including E*Offering, Inc., Workfire.com, Inc. and Autotradecenter.com, Inc. The SEC's complaint alleges that, in reality, ICH and ICH II do not hold substantial interests in those companies. The SEC's complaint also names Internet Capital Consultants, Inc. as a Relief Defendant. The SEC alleges that the Relief Defendant, which is controlled by the principals of ICH and ICH II received investor funds to which investors are entitled. The Court ordered that the Relief Defendants' assets be frozen pending a hearing on the SEC's motion for preliminary injunction on November 21, 2000. The Commission seeks a final judgment: permanently enjoining ICH, ICH II, Peter J. Buzanis and William E. Griffis from committing securities fraud in violation of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, and Section 15(a)(1) of the Exchange Act in connection with the offer and sale of the securities of ICH and ICH II and Section 7(a) of the Investment Company Act of 1940; ordering Defendants ICH, ICH II, Peter J. Buzanis, William E. Griffis and Relief Defendant Internet Capital Consultants, Inc., to disgorge their unjust enrichment; assessing civil penalties against them pursuant to Section 20(d) of the Securities Act and Section 21(d) of the Exchange Act.