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U.S. Securities and Exchange Commission

SG Ltd. (Stock Generation Ltd.) et al.

On May 21, 2003, the SEC obtained permanent injunctions against SG Ltd. and relief defendants SG Perfect and SG Trading. The SEC alleged that SG Ltd., an offshore entity, operated a massive Internet pyramid scheme under the name "StockGeneration." SG described the StockGeneration program as a "virtual stock exchange" offering investments in the stock of several "virtual companies," including one identified as Company #9 (also known as the "Privileged Company" or "Golden Nuggets") whose shares would "only rise" and generate a risk-free, guaranteed return of 10% per month, or 215% per year. As part of the settlement, the defendants agreed to pay disgorgement plus pre-judgment interest in the amount of $863,316, and SG agreed to pay a civil penalty of $471,544.

For more information about the SEC's action, you can read several litigation releases: 16590 (June 15, 2000), 16616 (June 30, 2000), 17129 (Sept. 14, 2001), and 18181 (June 9, 2003).

On September 4, 2003, the Court appointed Richard J. Yurko as Receiver. The Court also approved the SEC's plan for administration and distribution of the disgorgement and penalty funds to those investors who directly invested and lost $25.00 or more in Company #9, as determined by the records of the company.

If you have a question about the Receivership, you can contact the Receiver by e-mail at mulholland@strategicclaims.org.


Modified: 09/26/2003