Kenneth Roy Weare, a/k/a Roy Weaver, J&K Global Marketing Corporation, and AAA-Auction.com, Inc.

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 20232 / August 9, 2007

Securities and Exchange Commission v. Kenneth Roy Weare, a/k/a Roy Weaver, J&K Global Marketing Corporation, and AAA-Auction.com, Inc., Civil Action No. 01-CV-0645-JLK (D. Colo.)

Commission Distributes $2.1 Million To Investors In J&K Global Marketing And AAA-Auction.com Fraud

The Commission announced that on July 21, 2007, the United States District Court for the District of Colorado approved a partial distribution plan to repay $2,124,980 to 2,724 investors who lost money in a fraudulent investment scheme conducted between 1998 and 2001 by Kenneth Roy Weare, also known as Roy Weaver, a resident of Lakewood, Colorado, and his companies, J&K Global Marketing Corporation and AAA-Auction.com Inc. Distribution payments will be sent to investors in the next month. This distribution represents return of investors' moneys recovered in litigation by the Commission from foreign bank accounts of Weare and J&K Global Marketing in Luxembourg and Grenada. The funds will be paid to 1,011 investors in the United States, and 713 foreign investors in twenty-eight countries, who submitted claims that were approved. Investors, some of whom are senior citizens, are receiving a return of 100 percent of their investment principle, reduced by any previous payment they had received from J&K. This distribution represents the Commission's continuing efforts to protect senior citizens and other investors from securities fraud on the Internet even when the investment amounts are small. The Commission received substantial international assistance from Luxembourg and Grenada which enabled the recovery of these funds. The District Court has scheduled a hearing on October 15, 2007 to address the remaining disputed claims.

The Commission's Complaint alleged that from at least November 1999 through April 2001, Weare and J&K offered memberships in an investment program through an Internet website and in postings to Internet bulletin boards. The complaint alleged that J&K fraudulently represented that by making an initial investment of $375, which it would invest in high-yield ventures, an investor would after six months receive a return of $375 a month for each of the next six months (an annual return of 600%) and then have the ability to continue receiving returns the following year with a second investment of $375. Bank records revealed that J&K raised at least $6.4 million but made no investments. The Commission alleged that the J&K Global program was a Ponzi scheme in which money from new investors was used to make payments to prior investors. Weare used the balance of the money raised from investors for personal living expenses such as clothing, limousine services and medical care.

The Commission's Complaint also alleged that Weare fraudulently raised money for AAA-Auction.com,, which operated an Internet auction site in 1998 and 1999. According to the complaint, Weare raised at least $415,000 from 35 AAA-Auction.com investors by misrepresenting that their money would be used to purchase inventory to be sold on live auctions on its website. Weare falsely represented that AAA-Auction.com would pay quarterly returns and repay investors' principal after a year. The complaint alleged that Weare used substantial amounts of investors' funds for other purposes, including general business expenses, child support payments, and undisclosed sales commissions of up to 40 percent.

On January 8, 2002 the District Court permanently enjoined Weare and J&K from violating Sections 5(a) and (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, and ordered Weare and J&K together to pay disgorgement of $6,278,334.91 and prejudgment interest of $486,848.02, and Weare to pay a civil penalty of $220,000 and J&K to pay a civil penalty of $110,000. The Court permanently enjoined AAA-Auction.com, another company controlled by Weare, from violating Section 17(a) of the Securities Act, and Section 10(b) of the Exchange Act and Rule 10b-5, and ordered Weare and AAA-Auction together to pay disgorgement of $623,250.00 and prejudgment interest of $142,724.40. On December 6, 2006, the District Court approved a claims process for distribution of the funds that had been recovered.

In a related criminal case, Weare pled guilty to fraud and wire fraud charges, and was sentenced on August 3, 2005 to 36 months in prison, which he has now served, and an additional three years of supervised release. (U.S.A. v. Weare, 03-CR-00121-N. D. Colo.).