SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 43334 / September 25, 2000
File No. 3-10298
PUBLIC PROCEEDINGS INSTITUTED AGAINST
MAINSTREETIPO.COM INC. AND JOSEPH M. SALVANI
The Securities and Exchange Commission today instituted public administrative and cease-and-desist proceedings against MainStreetIPO.com Inc. and its President, Joseph M. Salvani.
In the Order Instituting Administrative Proceedings ("Order"), the Division of Enforcement alleges that MainStreet held itself out as the source of "hot" initial public offerings ("IPOs") for the average investor. According to the Division, Salvani and MainStreet actively solicited both issuers of IPOs and potential investors in IPOs to participate in online auctions of securities at MainStreet's website. MainStreet allegedly purchased banner advertisements for posting on over 70 other financial websites, and sent out roughly 600,000 e-mails to potential investors. The staff also alleged that MainStreet also hosted booths at various trade shows, and in April 2000 ran full-page color advertisements in various national magazines. These solicitation efforts allegedly resulted in at least six prospective issuers signing contracts with MainStreet, paying deposits of at least $50,000. In addition, these solicitation efforts allegedly resulted in roughly 15,000 potential investors registering with MainStreet as "members."
The Division alleges that Salvani and MainStreet were attempting to induce the purchase or sale of securities and to effect transactions in securities on behalf of others without registering as a broker, in violation of Section 15(a) of the Securities Exchange Act of 1934.
A hearing will be held before an administrative law judge to determine if these allegations are true and, if so, what, if any, sanctions are appropriate in the public interest.