U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16678 / September 5, 2000
SECURITIES AND EXCHANGE COMMISSION v. RONALD J. GOLDBERG, Civil Action No. 1 00-CIV-2297 (N.D. Ga.)
The Securities and Exchange Commission ("Commission") announced that on September 1, 2000, it filed a complaint against Ronald J. Goldberg ("Goldberg"), an inmate at the United States Penitentiary in Atlanta, Georgia, for attempting to sell securities on the Internet through fraudulent means. From February through May, 2000, Goldberg directed an associate to post at least four false and misleading advertisements for the offer or sale of the stock of GlobeNet Capital Corp. ("GlobeNet") on the eBay and Yahoo! auction sites. The auction site postings stated, among other things, that a GlobeNet initial public offering ("IPO") was expected in the second (or third) quarter of 2000, and that following the IPO, GlobeNet stock would begin trading at between $22-$23 per share. Goldberg's postings were false and misleading because Goldberg had no reasonable basis to represent either the timing of an IPO of GlobeNet stock or the price at which the stock might trade following an IPO. Goldberg made the representations in order to sell shares of GlobeNet stock at a profit.
The Commission's complaint charges that Goldberg's scheme violated Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The Commission is seeking a permanent injunction against future violations as well as civil penalties.
For more information about Internet fraud, visit http://www.sec.gov/divisions/enforce/internetenforce.htm. For more advice on saving, investing, and avoiding fraud online, visit http://www.sec.gov/investor/online.shtml. To report suspicious activity involving possible Internet fraud, visit the SEC's Enforcement Complaint Center at http://www.sec.gov/complaint.shtml.