U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20442 / January 28, 2008
Securities and Exchange Commission v. Daryn P. Fleming and Mathew C. Bruce, CV-08-029-FVS (E.D. Wa.)
Securities and Exchange Commission v. International Broadcasting Corporation, CV-08-029-FVS (E.D. Wa.)
The Securities and Exchange Commission ("SEC") announced that on January 23, 2008, it filed a civil injunctive action in the United States District Court for the Eastern District of Washington against the former CEO of International Broadcasting Corporation, Daryn P. Fleming, ("Fleming") and an agent of the company, Mathew C. Bruce ("Bruce"), alleging that Fleming and Bruce violated the antifraud provisions of the federal securities laws. The SEC also announced that it has filed a settled civil injunctive action against International Broadcasting Corporation, in which the company consented to the entry of a permanent injunction from violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
The SEC has alleged that as part of the scheme, International Broadcasting, through Fleming, issued false press releases about its business operations including nonexistent broadcast affiliations with various radio stations. The SEC has also alleged that when Bruce and Fleming were later questioned by investors about these supposed affiliations, they made public misrepresentations live on an International Broadcasting internet radio show to conceal the fact that the original press releases were false.