UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16213 / July 16, 1999
Federal Judge Enters Consent Order of Preliminary Injunction in Internet-Based Pyramid Scheme
SECURITIES AND EXCHANGE COMMISSION v. FUTURE STRATEGIES SRL a/k/a FUTURE STRATEGIES INTERNATIONAL, United States District Court for the Northern District of Georgia, Civil Action No. 1:99-CV-1199-JTC.
- The Securities and Exchange Commission announced that the Honorable Judge Jack T. Camp, of the United States District Court for the Northern District of Georgia, has entered a Consent Order of Preliminary Injunction and Other Relief against defendant Future Strategies Srl a/k/a Future Strategies International ("Future Strategies"), an Italian entity headquartered in Carpi, Modena, Italy. Defendant Future Strategies consented to the entry of the preliminary injunction and other relief without admitting the allegations in the Commission's complaint. The Order follows the Court's temporary restraining order against Future Strategies of May 11, 1999, and the Court's oral preliminary injunction order against Future Strategies of May 21, 1999.
- The Commission's complaint alleges that Future Strategies is engaged in an ongoing, worldwide pyramid scheme, known as "Pentagono," promoted over the Internet. Such conduct violates the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934 as well as the registration provisions of the Securities Act of 1933. The Commission's complaint alleges that, from at least May 1998, Future Strategies solicited United States residents to purchase Pentagono "Certificates," now called "Card Purchase Orders" or "CPOs," which Future Strategies prepared and issued. At least 400 investors throughout the United States have invested in this scheme. The complaint alleges that Future Strategies, as part of its solicitation, claims that an investor can earn up to $116,400 from an investment of approximately $120 through the Pentagono scheme.
See also: L.R. 16135 (May 11, 1999).