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U.S. Securities and Exchange Commission

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
Release No. 44387 / June 4, 2001

ADMINISTRATIVE PROCEEDING
File No. 3-10501


In the Matter of

Mary E. Blake,

Respondent.


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ORDER INSTITUTING CEASE-
AND-DESIST PROCEEDINGS
PURSUANT TO SECTION 21C OF
THE SECURITIES EXCHANGE ACT
OF 1934 AND FINDINGS AND
ORDER OF THE COMMISSION

I.

The Commission deems it appropriate that public administrative proceedings be, and they hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") to determine whether Mary E. Blake ("Blake") violated Sections 13(d) and 16(a) of the Exchange Act and Rules 13d-1, 13d-2, 16a-2 and 16a-3 promulgated thereunder.

II.

In anticipation of the institution of these administrative proceedings, Blake ("the Respondent") has submitted an Offer of Settlement which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceeding brought by or on behalf of the Commission or to which the Commission is a party, the Respondent, without admitting or denying the matters set forth herein, consents to the issuance of this Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934 and Findings and Order of the Commission ("the Order"), and to the entry of the findings, and imposition of the remedial sanctions set forth below.

III.

On the basis of this Order and the Respondent's Offer of Settlement ("Offer"), the Commission finds the following:

A. FACTS

1. Respondent

Mary E. Blake was President and Secretary of Universal Broadband Networks, Inc., formerly known as Ijnt.Net, Inc., Ijnt International, Inc. and Interjet Net Corp. ("Universal Broadband"), from August 8, 1997 until May 6, 2000, a director of Universal Broadband from August 8, 1997 until her resignation in September 2000, and is and has been at relevant times a beneficial owner of more than ten percent of the equity securities of Universal Broadband.

2. ISSUER

Universal Broadband Networks, Inc., a Delaware corporation with principal offices in Irvine, California, is an emerging facilities-based integrated communications carrier using digital subscriber line, or DSL, technology to offer broadband data and voice telecommunication services to small and medium-sized businesses and high-end residential consumers. According to Universal Broadband's Annual Report on Form 10-K for the year ended March 31, 2000, Universal Broadband had total assets of over $20.3 million and a shareholders' deficit of over $5.2 million as of March 31, 2000. Universal Broadband had 20,845,123 shares of common stock outstanding as of June 19, 2000. Universal Broadband reported a net loss of approximately $32.3 million, or $1.84 per common share, for its 2000 fiscal year. Universal Broadband's common stock is registered with the Commission pursuant to Section 12(g) of the Exchange Act and is quoted in the over-the-counter market. Universal Broadband filed for Chapter 11 bankruptcy on October 31, 2000.

B. APPLICABLE LAW

Section 13(d) of the Exchange Act and Rule 13d-1 thereunder, in relevant part, provide that any person who, after acquiring directly or indirectly the beneficial ownership of any equity security of a company registered pursuant to Section 12 of the Exchange Act, is directly or indirectly the beneficial owner of more than 5 percent of such security, shall, within 10 days after such acquisition, file a Schedule 13D with the Commission and the

appropriate Exchange.1 Rule 13d-2(a) requires that amendments to Schedule 13D be promptly filed if any material change to the facts set forth in the Schedule 13D occurs. A change of one percent or more in the reporting person's beneficial ownership of the specified securities is deemed material for the purposes of Rule 13d-2(a).

Section 16(a) of the Exchange Act requires that beneficial owners of more than ten percent of any class of any equity security registered pursuant to Section 12 of the Exchange Act and the officers and directors of the issuer of any such security (hereinafter "insider") file a statement with the Commission by the effective date of a registration statement filed pursuant to Section 12 of the Exchange Act, or within ten days of becoming such officer, director or beneficial owner, reporting the amount of all equity securities of such issuer of which they are a beneficial owner. Section 16(a) also requires an insider to file with the Commission within ten days after the close of each calendar month, if there has been a change in the insider's ownership of the issuer's equity securities during such month, a statement indicating such changes. The rules enacted pursuant to Section 16(a) provide that an initial statement by an insider is to be made on a Form 3 and subsequent statements of changes in beneficial ownership are to be made on a Form 4 or a Form 5.

C. BLAKE'S VIOLATIONS OF SECTIONS 13(d) and 16(a) OF THE EXCHANGE ACT AND THE RULES THEREUNDER

In connection with changes in her ownership of Universal Broadband securities, Blake failed to timely file a Schedule 13D and three amendments thereto, for periods ranging from one week to more than one year and ten months, reporting changes in the information relating to stock ownership, of the equity securities of Universal Broadband. In addition, Blake failed to timely file a Form 3, failed to timely file twelve Forms 4 (which were late for periods ranging from one month to more than one year and one month), and two Forms 5, which were filed one month and one year and one month respectively, reporting changes in her beneficial ownership of the equity securities of Universal Broadband. The total value of the transactions in Universal Broadband stock for which Blake filed late Forms 4 and 5 is approximately $2.1 million.

Blake's history of delinquency, compiled from the ownership reports she has filed with the Commission for Universal Broadband, is set forth below:

MARY E. BLAKE

Forms 3, 4 and 5 For Holdings and
Transactions in the Equity Securities of

Universal Broadband Networks, Inc.
(formerly Ijnt.Net, Inc., Ijnt International, Inc., and Interjet Net Corp)

August 18, 1997 through October 10, 2000

Month
of
Trans.
Type No. of
Shares
Price
Per
Share
Total
$Value
Date
Due/
Date
Rec'd
Apprx.
Yrs/Mos/
Wks.Late
  Form 3          
             
08-97   8,650,000     08-18-97 1w
          08-25-97  

  Forms 4, 5          
02-99 Buy 1,000 2.19 2,190 05-14-99 1y1m
    1,000 2.09 2,090 06-16-00  
    1,000 2.09 2,090    
        6,370    
             
FY-99 Form 5       05-14-99 1y1m
          06-16-00  
             
04-99 Sale 8,969 2.69 24,127 05-10-99 1y1m1w
    6,000 2.69 16,140 06-16-00  
    3,000 2.69 8,070    
    1,000 2.31 2,310    
    2,500 2.19 5,475    
    2,500 2.13 5,325    
    1,250 2.38 2,975    
    11,000 2.41 26,510    
    2,350 3.13 7,356    
    7,025 3.13 21,988    
    2,250 3.16 7,110    
    1,500 3.19 4,785    
    1,250 2.97 3,713    
    3,675 3.25 11,944    
    1,400 3.41 4,774    
    1,350 3.22 4,347    
    2,000 3.34 6,680    
    2,350 3.19 7,497    
    2,300 3.44 7,912    
    4,250 3.41 14,493    
    6,350 3.34 21,209    
    3,550 3.38 11,999    
    1,650 3.44 5,676    
        232,413    
             
06-99 Sale 105,000 2.81 295,050 07-12-99 11m1w
          06-16-00  
             
07-99 Sale 2,500 4.97 12,425 08-10-99 10m1w
    2,500 5.00 12,500 06-16-00  
        24,925    
             
08-99 Sale 2,500 5.25 13,125 09-10-99 9m1w
    2,500 3.44 8,600 06-16-00  
    1,250 4.09 5,113    
    1,100 4.06 4,466    
    400 3.97 1,588    
    1,000 4.00 4,000    
    1,250 4.31 5,388    
    1,250 4.34 5,425    
    2,300 3.94 9,062    
    200 3.88 776    
    1,000 4.25 4,250    
    500 4.19 2,095    
    500 4.34 2,170    
    500 4.22 2,110    
    4,500 4.13 18,585    
    1,000 4.22 4,220    
    3,000 4.16 12,480    
    1,000 4.19 4,190    
    2,500 3.81 9,525    
    1,250 3.81 4,763    
    2,050 3.88 7,954    
    1,800 3.84 6,912    
    2,100 3.88 8,148    
    1,400 3.78 5,292    
    1,600 3.75 6,000    
    1,400 3.78 5,292    
        161,528    
             
09-99 Sale 1,000 3.06 3,060 10-12-99 8m1w
    1,000 3.06 3,060 06-16-00  
    1,000 3.06 3,060    
    800 3.13 2,504    
    200 3.19 638    
    1,000 3.00 3,000    
        15,322    
             
10-99 Sale 1,000 2.97 2,970 11-10-99 7m1w
    16,000 2.84 45,440 06-16-00  
    500 2.31 1,155    
    2,000 3.09 6,180    
    1,000 3.16 3,160    
        58,905    
             
11-99 Sale 5,500 3.00 16,500 12-10-99 6m1w
    3,500 3.06 10,710 06-16-00  
    1,000 3.03 3,030    
    1,000 4.03 4,030    
    4,000 4.00 16,000    
    1,000 4.09 4,090    
    1,500 4.06 6,090    
    1,500 4.06 6,090    
    1,000 4.13 4,130    
    12,500 7.91 98,875    
        169,545    
             
12-99 Sale 38,700 7.09 274,383 01-10-00 5m1w
    2,000 8.50 17,000 06-16-00  
    1,000 8.59 8,590    
    2,500 8.63 21,575    
    1,000 8.44 8,440    
    2,500 8.63 21,575    
    1,000 8.44 8,440    
    500 8.53 4,265    
    1,500 8.56 12,840    
        377,108    
             
01-00 Sale 1,500 9.50 14,250 02-10-00 4m1w
    1,500 9.00 13,500 06-16-00  
    1,000 9.19 9,190    
    1,250 9.44 11,800    
    7,000 10.13 70,910    
        119,650    
             
02-00 Sale 4,100 13.25 54,325 03-10-00 3m1w
    200 13.63 2,726 06-16-00  
    1,000 13.31 13,310    
    200 13.56 2,712    
    2,000 12.75 25,500    
    800 13.00 10,400    
    3,000 13.50 40,500    
    400 13.19 5,276    
    800 12.69 10,152    
    2,500 13.81 34,525    
    2,500 13.88 34,700    
    2,500 13.94 34,850    
    2,500 14.00 35,000    
    2,200 17.00 37,400    
    600 17.75 10,650    
    1,750 17.25 30,188    
    2,500 17.31 43,275    
    500 17.63 8,815    
    1,050 17.13 17,987    
        452,290    
             
02-00 Opt 350,000 N/A N/A 05-15-00 1m
  Grant       06-16-00  
             
03-00 Sale 18,225 13.50 246,038 04-10-00 2m1w
          06-16-00  
             
FY-00 Form 5       05-15-00 1m
          06-16-00  
             
05-00 Sale 1,000 5.72 5,720 06-12-00 T
          06-16-00  
             
06-00 Sale 1,500 4.78 7,170 07-10-00 T
    1,500 4.78 7,170 06-29-00  
             
07-00 Sale 2,000 4.03 8,060 08-10-00 T
    3,000 3.00 9,000 08-04-00  
             
08-00 Sale 5,000 3.00 15,000 09-11-00 T
    2,250 3.03 6,818 09-11-00  
    750 3.50 2,625    
    250 3.56 890    
    500 3.53 1,765    
    250 3.88 970    
    250 3.63 908    
    1,000 4.06 4,060    
    1,000 4.09 4,090    
    1,000 4.19 4,190    
    2,500 3.69 9,225    
    1,000 3.50 3,500    
    2,500 3.19 7,975    
    1,000 3.13 3,130    
    400 3.06 1,224    
    2,400 3.00 7,200    
    200 3.13 626    
    1,000 2.94 2,940    
    2,000 3.00 6,000    
    3,000 3.06 9,180    
    2,000 3.13 6,260    
    500 3.19 1,595    
    2,500 3.06 7,650    
    1,200 3.03 3,636    
    5,000 2.99 14,950    
    2,625 3.19 8,374    
    800 3.06 2,448    
    5,075 3.06 15,530    
    1,200 3.03 3,636    
    2,300 3.13 7,199    
    5,220 3.09 16,130    
    3,100 3.06 9,486    
    575 3.13 1,800    
    4,100 3.00 12,300    
    17,400 3.02 52,548    
    15,000 3.00 45,000    
    1,000 3.00 3,000    
    2,000 2.88 5,760    
    450 2.91 1,310    
             
09-00 Sale 15,000 3.76 56,400 10-10-00 T
    3,050 3.06 9,333 10-10-00  
    3,450 3.09 10,661    
    2,725 3.09 8,420    
    850 3.06 2,601    
    1,000 2.97 2,970    
    1,200 2.75 3,300    
    1,000 2.81 2,810    
    950 2.72 2,584    
    1,500 2.78 4,170    
    900 2.16 1,944    
    1,200 2.13 2,556    
    1,250 1.84 2,300    
    700 1.66 1,162    
    1,200 1.78 2,136    
    800 1.81 1,448    
    1,000 1.63 1,630    
    1,500 1.75 2,625    
    4,230 1.63 6,895    
    2,980 1.59 4,738    
    3,000 1.56 4,680    
    3,700 1.50 5,550    
    1,800 1.53 2,754    
    1,000 1.41 1,410    
    2,100 1.28 2,688    
    2,200 1.22 2,684    
    2,200 1.28 2,816    
             
09-00 Other 2,250,000 N/A N/A 10-10-00 T  
  Disp (surrendered to company)   10-10-00  
             
09-00 Opts 350,000 N/A N/A 05-14-01 T
  Cancelled     10-10-00    
Total value late
reported transactions:
$ 2,159,144    
* = Price per share rounded off
T = Timely
Opt = Option




Schedules 13D and Amendments

Universal Broadband Networks, Inc.
(formerly Ijnt.Net, Inc., Ijnt International, Inc.,
and Interjet Net Corp)

August 18, 1997 through May 15, 2001

Date
of
Trans.
Type No. of
Shares
Event
Triggering
Amendment
Date
Due/
Date
Rec'd
Apprx.
Yrs/Mos/
Wks.Late
08-08-97 13D 8,650,000   08-18-97 1w
        08-25-97  
           
06-17-99 13D Amendment Change 06-17-99* 1y10m3w
      Items 4-5 05-15-01  
           
03-21-00 13D Amendment Change 03-21-00 1y2w
      Items 4-5 05-15-01  
           
09-13-00 13D Amendment Change 09-13-00 8m
      Items 4-5 05-15-01  
           
* = For the purpose of this table, the date due for amendments reflects the date the obligation to file the amendment arose.

IV.

FINDINGS

Based on the above, the Commission finds that Blake violated Sections 13(d) and 16(a) of the Exchange Act, Rules 13d-1, 13d-2, 16a-2 and 16a-3 promulgated thereunder.

V.

OFFER OF SETTLEMENT

Blake has submitted an Offer of Settlement in this proceeding which the Commission has determined to accept. Blake, in her Offer, consents to this Order making findings, as set forth above, and ordering her to cease and desist from committing or causing any violations of, and committing or causing any future violations of, Sections 13(d) and 16(a) of the Exchange Act and Rules 13d-1, 13d-2, 16a-2 and 16a-3 promulgated thereunder.

VI.

ORDER

Accordingly, IT IS HEREBY ORDERED, pursuant to Section 21C of the Exchange Act, that Blake cease and desist from committing or causing any violations of, and committing or causing any future violations of, Sections 13(d) and 16(a) of the Exchange Act and Rules 13d-1, 13d-2, 16a-2 and 16a-3 promulgated thereunder.

By the Commission.

Jonathan G. Katz
Secretary


Footnote

1 The Commission adopted amendments to Regulation 13D-G under the Exchange Act, permitting certain large shareholders to use short form Schedule 13G, rather than long form Schedule 13D, to report accumulations and changes in stock holdings. The shareholders that will be permitted to use Schedule 13G under these amendments are ones that own less than 20% and that do not have the purpose or effect of changing or influencing control of the issuer. See Release No. 34-39538, January 12, 1998 (63 Fed. Reg. 2854, January 16, 1998).


http://www.sec.gov/litigation/admin/34-44387.htm
Modified: 06/06/2001