SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17357 / February 8, 2002
SECURITIES AND EXCHANGE COMMISSION v. ALEXANDER NAUJOKS aka ALEXANDER P. THORN; EXECTREK, INC., a California Corporation; ACSPORTS.COM, a Delaware Corporation; and WORLD MARKETS GROUP, INC., a Delaware Corporation, Civil Action No. 02-01073-LGB (VBKx) (C.D. Cal.)
SEC FILES LAWSUIT TO HALT FRAUDULENT SALE OF SECURITIES OF INTERNET COMPANIES
On February 5, 2002, the Securities and Exchange Commission ("Commission") filed an emergency action in federal court in Los Angeles halting an ongoing $3 million securities fraud scheme by Alexander Naujoks, aka Alexander P. Thorn, 36, of Chatsworth, California, and his companies, Exectrek, Inc. ("Exectrek"), ACSports.com, and World Markets Group (collectively, "the companies").
The Commission's complaint alleges that since approximately 1999, the defendants, operating out of their offices in Century City, California, have sold shares and raised over $3 million from investors nationwide through cold-calls and personal solicitations to finance and operate their purported online business operations. Exectrek purports to be creating an online reservation system that would cater to business travelers, permitting them to make global reservations for flights, hotels, and restaurants on the Internet. ACSports.com purports to be creating an online competitive sports league, in which players could pay a fee to play games against other players over the Internet for cash prizes. World Markets Group purports to be an investment banking firm that has been in business since 1985, and has had previous experience taking companies public. The lawsuit alleges that the defendants misrepresented that:
In response to the Commission's application, United States District Judge Lourdes Baird (1) temporarily enjoined the defendants from future violations of the securities registration and antifraud provisions, Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Sections 10(b) of Securities Exchange Act of 1934 and Rule 10b-5 thereunder; (2) froze the assets of the defendants; (3) prohibited the destruction of documents by the defendants; (4) granted expedited discovery; and (5) ordered accountings from the defendants. The Commission also seeks preliminary and permanent injunctions, disgorgement, and civil penalties against the defendants. A hearing on whether a preliminary injunction should be issued against the defendants is scheduled for February 15, 2002.
On February 5, 2002, the Federal Bureau of Investigation ("FBI") executed a search warrant at the companies' Century City office. The Commission wishes to acknowledge the assistance of the FBI, the United States Attorney's Office, and the California Department of Corporations.