U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

U.S. Securities and Exchange Commission
Washington, D.C.

Litigation Release No. 17847 / November 19, 2002

United States v. Edward B. Williamson, III, Criminal Action No. 02-10150-01-MLB (D. Kansas, October 23, 2002)

Securities and Exchange Commission v. Net World Marketing, Inc. et al., Civil Action No. 00-1459web (D. Kansas, November 7, 2000)

United States Attorney's Office Indicts Wichita, Kansas, Resident Edward B. Williamson, III, for Wire Fraud

On October 23, 2002, the United States Attorney's Office for the District of Kansas, Wichita Division, filed a two count indictment against Wichita, Kansas, resident Edward B. Williamson, III, the owner and controlling officer of Fifth Avenue Communications, Inc. and an undisclosed control person of AutoAuction.com, Inc. The indictment charges Williamson with fraudulently raising money by falsely claiming that AutoAuction.com sold 1,000 cars per month and that the company serviced business clients including Car Max and Auto Nation.

Previously, on November 7, 2000, the Securities and Exchange Commission filed a civil complaint against Williamson, Fifth Avenue and others alleging that they illegally sold over $1.3 million of unregistered securities to approximately 900 investors nationwide. The SEC's complaint in Securities and Exchange Commission v. Net World Marketing, Inc. et al., Civil Action No. 00-1459WEB (D. Kansas, filed November 7, 2000) is based on the same fraudulent conduct related to AutoAuction.com, as well as a host of other fraudulent claims by Williamson concerning companies he controlled; including Net World Marketing, Inc., Andros Hotel and Casino, Inc., and New Horizons Airways, Inc.

In the SEC's civil lawsuit the Court ordered, among other things, a freeze of the assets of Williamson and the other Defendants and appointed a receiver to recover assets for the benefit of defrauded investors. The final civil judgment of the Court ordered Williamson to pay disgorgement and penalty of approximately $700,000, but waived payment of approximately $450,000 of the amount based on Williamson's impoverished financial condition.

In addition to the U.S. Attorney's office for the District of Kansas and the Federal Bureau of Investigation, the SEC thanks the Office of Securities Commissioner, State of Kansas, for iits assistance and cooperation in the civil matter.

For additional information, see SEC Release No. 16794, November 8, 2000.



Modified: 11/21/2002