SEC v. The Children’s Internet, Inc., et al. Case No. 06-cv-06003-CW (N.D. Cal.)
Aug. 31, 2022
On September 27, 2006, the Commission filed a complaint (“Complaint”) against The Children’s Internet, Inc. (“TCI”) and its principles, Nasser Hamedani and Sholeh Hamedani (collectively, the “Hamedanis”) and Two Dog Net, Inc. (“TDN”) and two of its stock promoters, Peter Perez (“Perez”) and Cort Poyner (“Poyner”). In the Complaint, the Commission alleged that, from February 2002 through June 2005, the Hamedanis purportedly on behalf of TCI, fraudulently obtained approximately $5.5 million from public investors. The Hamedanis diverted a significant amount of the investors’ money to pay personal expenses and also hundreds of thousands of dollars in undisclosed commissions to two stock promoters, Perez and Poyner. See Complaint.
On March 19, 2008, the Court entered a final judgment against Perez directing him to pay $85,000 in disgorgement and prejudgment interest. See Perez's Final Judgment.
On October 23, 2008, the Court entered a final judgment against TDN directing it to establish an escrow account to receive all shares of TDN from N. Hamedani. See TDN’s Final Judgment. On October 30, 2008, the Court entered a final judgment against TCI directing it to establish an escrow account to receive all shares of TCI from S. Hamedami. See TCI’s Final Judgment.
On October 30, 2008, the Court entered amended final judgments that ordered the Hamedanis to pay, jointly and severally, a total of $4,049,470 in disgorgement and prejudgment interest, disgorge all shares of TDN and TCI owned or controlled by either of them, and for each to pay a $100,000 civil monetary penalty. See Nasser Hamedani’s Revised Final Judgment and S. Hamedani’s Revised Final Judgment. On May 22, 2012, in related criminal proceedings, the Court entered a Restitution Order directing the Hamedanis to pay restitution in the amount of $2,300,000, and that all payments made shall be credited towards the civil judgment entered in this matter. The Hamedanis have made only a few, partial, monthly restitution payments.
On November 3, 2008, the Court entered a revised final judgment against Poyner directing him to pay $594,885 in disgorgement, pre-judgment interest, and civil monetary penalties. See Poyner’s Revised Final Judgment.
Perez and Poyner have paid a total of $692,265.50 as ordered (the “Fund”). Any additional funds received pursuant to any of the outstanding judgments in this matter, will be added to the Fund.
Rather than distributing the approximate $700,000 through the criminal proceeding, the Commission will distribute that money to injured investors through a distribution plan for this civil case. The distribution will include the purchasers of The Children’s Internet shares who are identified in Appendix A and Appendix B of the Complaint. Additionally, the distribution may include those limited number of investors who received Two Dog Net shares during the time period covered by the Complaint, rather than The Children’s Internet shares that those investors had been falsely promised.
On March 9, 2017, the Court entered an order appointing Computershare/KCC (“KCC”) as the Distribution Agent to oversee the administration and distribution of the Fund to harmed investors. See the Court’s Order.
For more information, please contact the Distribution Agent:
Telephone Number: 866-381-9100