Web Hosting Headquarters Partnership, et al.

Securities and Exchange Commission v. Web Hosting Headquarters Partnership, et al., Case No. 00-4975-CIV-HIGHSMITH (S.D. Fla.)

The Securities and Exchange Commission (SEC or the Commission) announced that the Honorable Shelby Highsmith, United States District Court Judge for the Southern District of Florida, entered Judgments of Permanent Injunction and Other Relief (Judgments) against Eduardo Villar (Villar) on November 14, 2002 and Wayne L. Prichason (Prichason) on June 4, 2001. The Judgments against Villar and Prichason, entered by their consent, without admitting or denying the allegations of the Commission's Complaint, enjoin them from violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) and 15(a)(1) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. In addition to enjoining Villar and Prichason, the Judgments also provide for disgorgement and the imposition of a civil money penalty, in amounts to be reached by the parties or determined by the Court upon the Commission's motion.

On December 28, 2000, the SEC filed an emergency action against Villar, Prichason and others seeking to enjoin the alleged ongoing fraudulent offering of securities issued by Web Hosting Headquarters Partnership ("Web Hosting"). Web Hosting's principals operated a boilerroom in Miami, Florida, employing telemarketers who used hard pressure sales tactics to sell units in Web Hosting. Among other things, the SEC's Complaint alleges that Defendants failed to disclose to investors that it was controlled by individuals with a prior history of defrauding investors, and that it had diverted at least 62% of funds raised from investors to pay its principals and telemarketers.

See also, Litigation Release No. 16846 (December 29, 2000).