SECURITIES AND EXCHANGE COMMISSION
Securities Act of 1933
Release No. 8079 / April 8, 2002
File No. 3-10750
The Commission announced that on April 8, 2002, it issued an Order Fixing Time and Place of Public Hearing and Instituting Proceedings pursuant to Section 8(d) of the Securities Act of 1933, in the Matter of a Registration Statement of FoneCash, Inc. (A-2750). As described therein, the Division of Enforcement alleges that the registration statement FoneCash filed on December 26, 2001, and subsequent preeffective and post effective amendments, misrepresent or omit to state material facts required to be stated therein. Among other things, the Division of Enforcement alleges that the registration statement and amendments state that FoneCash has exclusive rights to a patent which expires in 2004, but does not disclose that the patent lapsed in 1993. The Division of Enforcement further alleges that the registration statement and amendments failed to include financial statements audited by an independent accountant as required by the Commission's regulations governing the offer and sale of securities to the public, and that the amendments fail to disclose a massive increase in the number of outstanding shares.
The Commission instituted these proceedings pursuant to Section 8(d) of the Securities Act of 1933 to determine whether the allegations of the Division of Enforcement are true; to afford the registrant with an opportunity to establish any defenses to these allegations; and to determine whether a stop order should issue suspending the effectiveness of the FoneCash registration statement and pending amendments. A hearing will be held before an Administrative Law Judge to determine whether these allegations are true at 10:00 a.m. on April 23, 2002.