UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16498 \ March 31, 2000
SECURITIES AND EXCHANGE COMMISSION V. NEW WORLD WEB VISION.COM, INC., CAPTIAL CORP INVESTMENTS INTERNATIONAL INC., and DWIGHT D. DUBOSE. Civil Action No. 4: 00-CV-0231-Y (N.D. Tex., Fort Worth Division)
The Securities and Exchange Commission announced that on March 23, 2000, the Honorable Terry R. Means, United States District Judge for the Northern District of Texas, entered a temporary restraining order against New World Web Vision.com, Inc. ("World Web"), Capital Corp Investments International Inc. ("Capital"), and Dwight D. Dubose ("Dubose"). The SEC's complaint alleges that the defendants are engaged in an ongoing Internet scheme in which they have fraudulently raised approximately $300,000 from over 60 investors through the sale of unregistered World Web and Capital securities. In addition to prohibiting further violations of the federal securities laws, the Court's order froze the defendants' assets and appointed a temporary receiver to manage and preserve the defendants' assets for the benefit of investors.
The Commission's Complaint alleges that World Web and Capital are two affiliated companies founded by Dubose that claim to own and operate a highly successful Internet shopping mall business, known as an "e-mall," as well as other Internet businesses. According to the Complaint, from at least November 1998 to the present, the two companies have publicly offered and sold unregistered shares of stock through two Internet web sites and thousands of unsolicited e-mail messages, commonly known as "spams." The complaint further alleges that Dubose, playing off the recent successes of Internet IPO's, has made numerous misleading claims that World Web and/or Capital are preparing to conduct an IPO. As alleged in the Complaint, Dubose has offered and sold "pre-IPO shares" at $.60 per share, and has told investors that their shares soon will be worth about $16-$17 per share when the companies go public.
In truth, according to the Complaint, the defendants' e-mall business generates minimal revenues and, until very recently, was operated from Dubose's subsequently abandoned one bedroom apartment in Ft. Worth, Texas. Moreover, the Complaint alleges that neither World Web, nor Capital has undertaken any meaningful steps to conduct an IPO and that Dubose has misappropriated investor/corporate funds for his own personal uses, including court-ordered child support payments and risky, unsuccessful options trading.
As a result of their alleged misconduct, the Complaint charges the defendants with 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, as well as Rule 10b-5 thereunder. The Complaint further seeks preliminary and permanent injunctive relief against the defendants, as well as disgorgement of all unjust profits, plus prejudgment interest, and civil monetary penalties.