SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17300 / January 10, 2002
SEC FILES COMPLAINT ALLEGING FRAUD AGAINST A DELRAY BEACH, FLORIDA COMPANY, TWO OF ITS FORMER OFFICERS, AND A STOCK PROMOTER
SECURITIES AND EXCHANGE COMMISSION V. GLOBAL DATATEL, INC., RICHARD BAKER, MARIO HABIB, and STUART BOCKLER, Case No. 01-9108-CIV-RYSCAMP (S.D. Fla., filed Dec. 26, 2001).
On December 26, 2001, the Securities and Exchange Commission filed a complaint alleging securities fraud against Global Datatel, Inc. ("Global Datatel"), its chief executive officer, Richard Baker ("Baker"), and Mario Habib ("Habib"), the president of eHOLA.com ("eHOLA") subsidiary of Global Datatel. Also named in the complaint is Stuart Bockler, who was hired as a stock promoter by Global Datatel.
The Commission's complaint, filed in federal court in Miami, alleges that from January 1999 through August 1999, Baker and Habib disseminated false information about Global Datatel via the Internet, press releases, and other public statements. eHOLA was purportedly attempting to become the America OnLine of Latin America, and the false statements concerned, among other things, the number of eHOLA's Internet subscribers, revenue projections, and a multi-million direct CD mailing. The complaint further alleges that Global Datatel also issued false and misleading statements concerning its 1998 revenue and net income.
The complaint also alleges that from January 1999 through October 1999, Bockler, after receiving common stock from the Company, issued at least a dozen reports on Global Datatel that contained baseless price projections for Global Datatel's common stock. The complaint alleges that contemporaneous with the issuance of these reports, Bockler sold his Global Datatel shares. The complaint alleges that Bockler never publicly disclosed his compensation arrangement with the Company, or that fact that he was selling his Global Datatel stock while recommending its purchase to the public.
The Commission's complaint seeks a permanent injunction against all defendants enjoining them from further violations of Section 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder, and, as against Bockler, Section 17(b) of the Securities Act. The complaint also seeks a civil money penalty against Baker, Habib, and Bockler, and disgorgement against Bockler.