UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 17442 / March 27, 2002
SECURITIES AND EXCHANGE COMMISSION V. NEW WORLD WEB VISION.COM, INC., CAPTIAL CORP INVESTMENTS INTERNATIONAL, INC., and DWIGHT D. DUBOSE, Civil Action No. 4:00-CV-0231-Y (USDC/Northern District of Texas).
Today, the Commission announced that it settled an internet, pre-IPO, stock offering fraud with the last remaining defendants, New World Web Vision.com, Inc. ("World Web") and Capital Corp Investments International, Inc. ("Capital"). Based on the World Web and Capital agreement, the Hon. Terry R. Means, United States District Judge for the Northern District of Texas, entered a permanent injunction enjoining each company from further violations of the federal securities laws. Previously, the Court had entered an agreed permanent injunction against Dwight D. Dubose, the principle of the two companies. The Commission dismissed is claims for disgorgement and civil penalties against the entities because each has been placed into receivership and has no substantial assets.
The Commission's Complaint alleged that from at least November 1998 through March 2000, Dubose and the two companies publicly offered and sold unregistered shares of stock through two Internet web sites and thousands of unsolicited e-mail messages, commonly known as "spam." The complaint further alleged that Dubose, playing off investor interest in successful Internet IPOs', made numerous misleading claims that World Web and/or Capital were preparing to conduct an IPO. The Commission alleged that Dubose offered and sold "pre-IPO shares" at $.60 per share, and fraudulently told investors that their shares would be worth $16-$17 per share when the companies went public.
As a result of their alleged misconduct, the Complaint charged 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. The defendants agreed to the entry of the injunctions without admitting or denying the allegations in the Commission's Complaint.