U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22147 / November 7, 2011
Accounting and Auditing Enforcement Release No. 3335 / November 7, 2011
Securities and Exchange Commission v. Fernando J. Espuelas et al., Civil Action No. 06 CV 2435 (RJH) (S.D.N.Y. filed Mar. 29, 2006)
FORMER PRESIDENT OF STARMEDIA SUBSIDIARY AGREES TO FRAUD SETTLEMENT WITH SEC
The U.S. Securities and Exchange Commission today announced that on November 3, 2011, the U.S. District Court for the Southern District of New York entered a settled final judgment, in Securities and Exchange Commission v. Fernando J. Espuelas et al., Civil Action No. 06 CV 2435 (RJH) (S.D.N.Y. filed Mar. 29, 2006), as to Walther Möller, the former President of AdNet, S.A. de. C.V., a Mexican subsidiary of StarMedia Network, Inc. StarMedia is a now-defunct Internet portal that was based in New York City. The Commission’s amended complaint alleges that for fiscal year 2000 and the first two quarters of fiscal year 2001, StarMedia’s books and records, and its filings with the Commission, misstated the quality and amount of the company’s revenue. The amended complaint also alleges that StarMedia executives made misstatements regarding the company’s revenue to certain entities from which it was attempting to obtain financing. In its amended complaint, the Commission alleged violations of the federal securities laws by eight former StarMedia executives.
Without admitting or denying the allegations in the amended complaint, Möller consented to the entry of the Final Judgment permanently enjoining him from future violations of Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Exchange Act Rules 10b-5 and 13b2-1, and from aiding and abetting violations of Sections 13(a) and 13(b)(2)(A) of the Exchange Act and Exchange Act Rules 12b-20, 13a-1, and 13a-13. Möller is a Mexican citizen residing in Mexico.