U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

William L. Brotherton and International Business Consortium, Inc.

On July 31, 2001, the SEC filed a civil action against William L. Brotherton and International Business Consortium, Inc. in connection with a fraudulent and unregistered offering of IBC stock over the Internet. The SEC alleged that the defendants raised over $300,000 from selling IBC stock to at least 180 investors. The SEC also alleged that Brotherton and IBC misappropriated at least 25% of investor funds for the personal benefit of Brotherton and his relatives. On July 16, 2003 the Court entered a final judgment against Brotherton and IBC ordering them to pay disgorgement of $325,144, plus prejudgment interest of $36,602.03, and imposing a civil money penalty of $50,000. For more information about the SEC's action, you can read Litigation Release Nos. 17067 (July 16, 2001), 18034 (Mar. 13, 2003), and 18237 (July 18, 2003).

To date, the SEC has recovered $178,156.65. The SEC submitted a proposed distribution plan to the Court to equitably distribute recovered funds to defrauded investors. On December 16, 2005, the Court approved the plan and appointed Sheri L. Betzer as Distribution Agent. All recovered funds, plus $5,741.47 in accrued interest, have been transferred to Ms. Betzer to be held in trust. Ms. Betzer has sent checks to all eligible claimants.

If you have any questions, you may contact James Kasmarcik at the SEC at (212) 336-0105.



Modified: 02/22/2008