SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17674 / August 9, 2002
SEC FILES COMPLAINT ALLEGING FRAUD AGAINST TWO FORMER PRINCIPALS OF eCOMPRAR NETWORK, INC.
SECURITIES AND EXCHANGE COMMISSION V. JEFFREY D. CHANDLER and RANDALL JORDAN, Case No. 02-14222-CIV-MOORE (S.D. Fla., filed July 31, 2002).
On July 31, 2002, the Securities and Exchange Commission filed a complaint alleging securities fraud against Jeffrey D. Chandler ("Chandler") and Randall Jordan ("Jordan"), the former president and executive vice president, respectively, of eComprar Network, Inc. ("eComprar"), a defunct Florida corporation that was located in West Palm Beach, Florida.
The Commission's complaint, filed in federal district court in Miami, alleges that from February 2000 through July 2000, Chandler and Jordan raised $5 million for eComprar in an unregistered offering. eComprar claimed that it was raising the money in a purported attempt to develop a television home shopping network operating in Latin America. The complaint alleges that as part of the offering, Chandler and Jordan made numerous misrepresentations and omissions to investors concerning, among other things, eComprar's operations, expected financial results, use of proceeds, and Chandler's background and experience. The complaint also alleges that Chandler and Jordan misappropriated investors' proceeds, and spent a significant portion of the $5 million raised on automobiles, home furnishings, jewelry, travel, a boat, other entertainment, and to settle prior legal disputes that were unrelated to eComprar.
The Commission's complaint seeks a permanent injunction against Chandler and Jordan enjoining them from further violations of 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 and Rule 10b-5 thereunder. The complaint also seeks civil money penalties, disgorgement, and accountings from the defendants.