Litigation Release No. 19809 / August 21, 2006

Securities and Exchange Commission v. One Wall Street, Inc., et al., Civil Action No. CV 06-4217 (NGG) (EDNY)

SEC Brings Emergency Action Against One Wall Street, Inc., Donte C. Jarvis, Alan Brown, Willis "Bill" White III, and Cecil Baptiste a/k/a John Latorri to Halt Ongoing Fraud Against Senior Citizens

The Securities and Exchange Commission announced today that it filed an emergency enforcement action against One Wall Street, Inc., Donte C. Jarvis, Alan Brown, Willis "Bill" White III, and Cecil Baptiste a/k/a John Latorri to halt an ongoing fraudulent offering of One Wall Street stock. The Commission also charged Jarvis' wife, La Shondra Hatter, as Relief Defendant.

The Commission's complaint, filed in the Eastern District of New York, alleges that from March 2003 until the present, the Defendants raised at least $1.6 million from at least 64 investors - mostly senior citizen - who purchased unregistered One Wall Street stock. To induce these sales, Defendants made numerous oral and written false and misleading statements, including that: (i) One Wall Street would soon conduct an initial public offering; (ii) E*TRADE Financial Corporation was negotiating to merge with One Wall Street; and (iii) One Wall Street would use the investment proceeds for marketing to create exposure for the company, to acquire distressed financial research companies, to expand into international markets, and to expand the company's information technology infrastructure. Each of these representations was false and misleading. Defendants have not pursued an IPO of One Wall Street, nor has E*Trade ever engaged in any business discussions with One Wall Street whatsoever, and One Wall Street did not use investor proceeds in the manner the Defendants represented. Rather than apply the proceeds collected from the investors towards legitimate business expenses, Jarvis used, and is continuing to use, investor funds to pay his personal expenses, including jewelry purchases, gambling and "adult entertainment" services, and payments for child day care, car loans and mortgages. He has also given investor funds to his wife, Hatter, and fellow defendants. Essentially, Jarvis is using One Wall Street's account as a personal piggy bank.

The Complaint charges the Defendants with violating Sections 5(a), 5(c), and 17 (a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

In its emergency enforcement action, the Commission is seeking, among other emergency relief, temporary restraining orders (i) prohibiting Defendant from committing further violations of the federal securities laws; and (ii) freezing the Defendants' and Relief Defendant's assets. In addition to this emergency relief, the Commission also seeks orders enjoining the Defendants, preliminarily and permanently, from committing future violations of the foregoing federal securities laws, and a final judgment (i) ordering the Defendants and Relief Defendant to disgorge ill-gotten gains, and (ii) assessing civil penalties against the Defendants.

SEC Complaint in this matter