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U.S. Securities and Exchange Commission

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19823 / September 6, 2006

SEC v. One Wall Street, Inc., et al., Civil Action No. CV 06-4217 (NGG) (EDNY)

Court Enters Preliminary Injunction Against One Wall Street, Inc., Donte C. Jarvis, Alan Brown, Willis "Bill" White III, And Cecil Baptiste A/K/A John Latorri

The Securities and Exchange Commission announced today that on September 5, 2006, the United States District Court for the Eastern District of New York entered a preliminary injunction order ("Order") against defendants One Wall Street, Inc., Donte C. Jarvis, Alan Brown, Willis "Bill" White III, and Cecil Baptiste a/k/a John Latorri and Jarvis' wife, relief defendant La Shondra Hatter. Pending a final disposition of the Commission's enforcement action, the Order enjoins the Defendants from violating 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.

The Commission's complaint, filed on August 21, 2006, alleged that from March 2003 until the present, the Defendants raised at least $1.6 million from at least 64 investors - mostly senior citizen - who purchased unregistered One Wall Street stock. To induce these sales, Defendants made numerous oral and written false and misleading statements, including that: (i) One Wall Street would soon conduct an initial public offering; (ii) E*TRADE Financial Corporation was negotiating to merge with One Wall Street; and (iii) One Wall Street would use the investment proceeds for marketing to create exposure for the company, to acquire distressed financial research companies, to expand into international markets, and to expand the company's information technology infrastructure. Each of these representations was false and misleading. Defendants have not pursued an IPO of One Wall Street, nor has E*Trade ever engaged in any business discussions with One Wall Street whatsoever, and One Wall Street did not use investor proceeds in the manner the Defendants represented. Rather than apply the proceeds collected from the investors towards legitimate business expenses, Jarvis used investor funds to pay his personal expenses, including jewelry purchases, gambling and "adult entertainment" services, and payments for child day care, car loans and mortgages. He has also given investor funds to his wife, Hatter, and fellow defendants.

On August 21, 2006, the Court granted, among other emergency relief, orders freezing the Defendants' and Relief Defendant's assets. In its enforcement action, the Commission is seeking additional relief, including orders permanently enjoining the Defendants from committing future violations of the foregoing federal securities laws, and a final judgment (i) ordering the Defendants and Relief Defendant to disgorge ill-gotten gains, and (ii) assessing civil penalties against the Defendants.

 

http://www.sec.gov/litigation/litreleases/2006/lr19823.htm


Modified: 09/06/2006