UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 49089 / January 16, 2004
Admin. Proc. File No. 3-11375
In the Matter of
MARK RICHARD SENDO
ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") against Mark Richard Sendo ("Sendo" or "Respondent").
In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the "Offer"), which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission's jurisdiction over him and the subject matter of these proceedings, and the findings contained in Section III.3 below, which are admitted, Respondent consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions ("Order"), as set forth below.
On the basis of this Order and Respondent's Offer, the Commission finds that:
1. Sendo is a founder and former CEO of Internet Money.com, Inc. ("Internet Money.com") and was its largest shareholder. In September 2003, Internet Money.com was acquired by Xenaga, Inc. As a result of the acquisition, Sendo obtained non-voting shares of Xenaga, Inc. Sendo, 42 years old, is a resident of Ann Arbor, Michigan.
2. Sendo participated in an offering of InternetMoney.com stock, which is a penny stock.
3. On January 5, 2004, a final judgment was entered by consent against Sendo, permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in the civil action entitled Securities and Exchange Commission v. Mark Richard Sendo, et al., Civil Action No. 01-73698, United States District Court for the Eastern District of Michigan.
4. The Commission's complaint alleged that Sendo made false and misleading statements to potential investors in the offer and sale of Internet Money.com common stock. First, Sendo made false and misleading statements about the people associated with Internet Money.com. Sendo tried to bolster the credentials of Internet Money.com by falsely claiming that individuals well known in the Internet industry and the payment processing industry had joined Internet Money.com's management team and invested in Internet Money.com. Secondly, Sendo misled investors in Internet Money.com securities through the description of his background in business plans. Sendo is described as "an economist and entrepreneur who worked as a stockbroker with Merrill Lynch and Shearson Lehman Brothers for eight years." The business plan fails to disclose Sendo's extensive history of discipline for his actions in the securities industry, which includes his conviction on charges of federal wire fraud brought in the U.S. District Court for the Eastern District of Michigan in 1994 and a permanent injunction against future violations of the antifraud provisions of the federal securities laws entered by the U.S. District Court for the Southern District of New York in October 1992. The Commission's complaint alleged that, from at least December 1999 until March 2001, Sendo fraudulently raised at least $440,500 through the sale of common stock to at least 23 investors.
In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanction specified in Respondent Sendo's Offer.
Accordingly, it is hereby ORDERED:
Pursuant to Section 15(b)(6) of the Exchange Act, that Respondent Sendo be, and hereby is, barred from participating in any offering of a penny stock, including: acting as a promoter, finder, consultant, agent or other person who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock.
For the Commission, by its Secretary, pursuant to delegated authority.
Jonathan G. Katz