U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19619 / March 21, 2006
Securities and Exchange Commission v. Converge Global, Inc., (United States District Court for the Southern District of Florida, No. 04-80841 (CIV-Middlebrooks) (D. So. Fla.)
COURT ISSUES FINAL JUDGMENT AGAINST DEFENDANT JONATHAN G. FINK IN SEC FRAUD ACTION
The Securities and Exchange Commission announced that on March 9, 2006, the United States District Court for the Southern District of Florida entered final judgment against defendant Jonathan G. Fink, of Beverly Hills, California, a former consultant to the now defunct Boca Raton-based holding company Converge Global, Inc. and its subsidiary, TeleWrx, Inc., a Boca Raton-based telecommunications company. The judgment and accompanying opinion follow a three-day trial concluding in September 2005 in which the Commission obtained a jury verdict against Fink finding him liable for securities fraud. The Honorable Donald M. Middlebrooks, U.S. District Court Judge, ordered that Fink be permanently enjoined from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and permanently barred from participating in any offering of penny stock. Additionally, the final judgment orders Fink to pay a civil penalty of $25,000.
The Commission commenced this action by filing its Complaint on September 2, 2004, against Fink, among others, alleging they violated the federal securities laws. The Complaint alleged, among other things, that Fink and Converge CEO Michael P. Brown were responsible for drafting and issuing, on behalf of Converge and TeleWrx, a press release on June 24, 2002 which falsely claimed in its headline that as a result of its recent weekend "national launch," TeleWrx had raised "over $1 million." Previously, on July 22, 2005, the Court entered final judgments by consent against Defendants Converge, TeleWrx, Brown, and Keith B. Laggos, a purported consultant to Converge.