U.S. SECURITIES & EXCHANGE COMMISSION
Litigation Release No. 17689 / August 20, 2002
SEC v. Investco, Inc., et al., S.D.Fla. No. 02-80466, filed May 20, 2002.
The Commission announced that on July 30, 2002, it filed a motion for an order to show cause why defendants Brian E. Baginski ("Baginski") and Electronic Commerce Consultants, Inc. ("Electronic Commerce"), should not be held in civil contempt for their failure to comply with the Court's June 6, 2002 order requiring them to file sworn accountings within five days of the issuance of the order. In the underlying Complaint, the Commission charged Baginski, Electronic Commerce and others with violations of Sections 5(a) and 5(c) of the Securities Act of 1933 and Sections 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder in connection with the manipulation of the price of the stock of Investco, Inc.
Pursuant to the Court's June 6, 2002 order, Baginski and Electronic Commerce were required to account for (1) all assets and funds received, directly or indirectly, from individuals described [in the Commission's Complaint] related to the securities of Investco, Inc., the uses to which such funds were put, and the amounts of any remaining funds and their location and (2) their assets and liabilities wherever located. Since these defendants have not complied with the Court's order, the Commission initiated contempt proceedings.
On August 13, 2002 the Honorable Frank J. Lynch, Jr. ordered Baginski and Electronic Commerce to appear before the Court on September 11, 2002 and show cause why they should not be held in contempt of Court.