UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16617 \ July 3, 2000
Securities and Exchange Commission v. Internet Broadcast Group et al., Civil Action No. 96-2226 (SSH) (D.D.C.)
The Securities and Exchange Commission announced that on June 19, 2000, the Honorable Stanley S. Harris, United States District Court Judge for the District of Columbia entered a Final Judgment as to Relief Defendants Able Private Cable and Satellite Corp. (Able), Martha Kittay (personal representative of the estate of Michael Kittay), William Trower and James Osborn (Relief Defendants). The Commission's complaint, which was filed on September 26, 1996, alleged that the Relief Defendants received funds from the defendants which, unbeknownst to Relief Defendants, had been unlawfully raised from investors. More specifically, the complaint alleged that the Relief Defendants were paid investor funds for the purchase of Able by defendants, and that upon defendants' default under the purchase agreement, the Relief Defendants retained the monies in a constructive trust for the benefit of investors.
Without admitting or denying the Commission's allegations, the Relief Defendants consented to the entry of the final judgment which requires them, jointly and severally, to pay the amount of $50,000. These monies will be deposited into the IBG Disgorgement Fund in settlement of the Commission's claim.
See also Lit. Rel. Nos. 15074, 15383 and 15778.