U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19824 / September 8, 2006
SEC v. Platforms Wireless International Corp., et al., Civil Action No. 04 CV 2105 JM (AJB)(S.D.CA)
SEC Settles Fraud Charges Against Former Executive of Platforms Wireless International Corporation
On September 23, 2005, the Honorable Jeffrey Miller of the United States District Court for the Southern District of California issued a final judgment against defendant Victor L. Ziller. During 2000 and 2001, Ziller was Platforms Wireless International Corp.'s Vice President-Brazil. The judgment permanently enjoins Ziller from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. It also prohibits him for five years from acting as an officer or director of any issuer of securities registered with the Commission and permanently bars him from participating in an offering of penny stock. Ziller was also found liable for disgorgement of $333,086, representing monies gained as a result of the conduct alleged in the Commission's complaint, and prejudgment interest of $121,035.34, for a total of $454,212.34. The order waives payment of the disgorgement and prejudgment interest based on his sworn financial statement and other information submitted to the Commission.
The Commission's complaint alleges that during 2000 and 2001 Ziller and the other defendants violated the antifraud provisions of the federal securities laws. Defendants issued a series of fraudulent press releases as part of a scheme to falsely portray Platforms' business activities and support its stock price. Platforms claimed to have an aerial system, the ARC System, for transmitting cellular telephone calls and other types of electronic data, using either fixed-wing aircraft or a blimp to carry transmission equipment. Platforms used these press releases to convince investors to purchase its stock and to support its share price on the secondary market. The complaint further alleges that the Defendants intentionally misled investors for the purpose of unlawfully making a profit themselves. During this period, they were profiting from payments they received from the company, from illegal stock sales into the secondary market, and/or from stock sales made directly to investors. Ziller consented to the final judgment without admitting or denying the allegations in the Commission's complaint.