U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21894 / March 22, 2011
Securities and Exchange Commission v. Michael Rivers and ARKR Trust, LLC, Civil Action No. 6:09-CV-1674-MSS-DAB (M.D. Fla.)
JUDGMENT OF PERMANENT INJUNCTION AND OTHER RELIEF ENTERED AGAINST DEFENDANT MICHAEL RIVERS
The Securities and Exchange Commission announced that on February 28, 2011, the United States District Court for the Middle District of Florida entered a Judgment of Permanent Injunction and Other Relief against Michael Rivers, former Chief Executive Officer of IBSG International, Inc. The Judgment enjoins Rivers from violations of Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934, and Rules 10b-5, 13a-14, 13b2-1 and 13b2-2, and from aiding and abetting IBSG's violations of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act, and Rules 12b-20, 13a-1, 13a-11 and 13a-13. In addition to injunctive relief, the Judgment bars Rivers from acting as an officer or director of a public company registered with the Commission. The Court will determine at a later date whether to also order Rivers to pay disgorgement, prejudgment interest, and a civil penalty. Rivers consented to entry of the Judgment without admitting or denying any of the allegations in the Complaint.
The Commission began this action by filing its complaint on September 29, 2009, against Michael Rivers and Relief Defendant ARKR Trust, LLC. Among other things, the Complaint alleged Rivers directed IBSG to issue multiple press releases announcing fictitious software licensing agreements, and to file periodic reports with the Commission that falsely recognized more than $23 million in revenues from the purported agreements. Rivers contemporaneously sold over one million shares of IBSG stock, generating approximately $1.23 million in illicit proceeds.
For additional information, see Litigation Release No. 21228 (September 30, 2009).