U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21021 / May 1, 2009
SEC v. Daryn P. Fleming and Mathew C. Bruce, CV-08-029-FVS (E.D. Wa.)
The Securities and Exchange Commission ("SEC") announced that on April 14, 2009, the Honorable Robert H. Whaley of the United States District Court for the Eastern District of Washington entered final judgments against Defendants Daryn P. Fleming and Mathew C. Bruce in the above captioned matter, to which Defendants Fleming and Bruce consented, without either admitting or denying the SEC's allegations against them. The final judgments permanently enjoin Defendants Fleming and Bruce from violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The final judgment against Defendant Fleming also prohibits Fleming from acting as the officer or director of any public company, and orders that Fleming pay disgorgement totaling $20,844 in ill-gotten gains, $3,865 in prejudgment interest, and a $35,000 civil penalty.
The SEC previously alleged that Defendant Fleming issued false press releases about the business operations of International Broadcasting Corporation, including nonexistent broadcast affiliations with various radio stations. The SEC has also alleged that when Bruce and Fleming were later questioned by investors about these supposed affiliations, they made public misrepresentations live on an International Broadcasting internet radio show to conceal the fact that the original press releases were false. The SEC previously filed a settled civil injunctive action against International Broadcasting Corporation, in which the company consented to the entry of a permanent injunction from violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.