Litigation Release No. 17879 / December 6, 2002
JUDGMENTS OF PERMANENT INJUNCTION ENTERED AGAINST JEFFREY D. CHANDLER AND RANDALL JORDAN, TWO FORMER PRINCIPALS OF eCOMPRAR NETWORK, INC.
SECURITIES AND EXCHANGE COMMISSION V. JEFFREY D. CHANDLER AND RANDALL JORDAN, Case No. 02-14222-CIV-MOORE (S.D. Fla.)
The Securities and Exchange Commission (SEC or the Commission) announced that the Honorable K. Michael Moore, United States District Court Judge for the Southern District of Florida, entered Judgments of Permanent Injunction and Other Relief (Judgments) against Jeffrey D. Chandler (Chandler) on November 7, 2002 and Randall Jordan (Jordan) on September 26, 2002. The Judgments against Chandler and Jordan, 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) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. In addition to enjoining Chandler and Jordan, 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 July 31, 2002, the SEC filed its complaint alleging that from February 2000 through July 2000, Chandler and Jordan, the former president and executive vice president, respectively, of eComprar Network, Inc. (eComprar), raised $5 million for eComprar in an unregistered offering. eComprar claimed that it was raising the money in a purported attempt to develop a television home shopping network operating in Latin America. The complaint alleged that as part of the offering, Chandler and Jordan made numerous misrepresentations and omissions to investors concerning, among other things, eComprar's operations, expected financial results, use of proceeds, and Chandler's background and experience. The Complaint also alleged that Chandler and Jordan misappropriated investors' proceeds, and spent a significant portion of the $5 million raised on automobiles, home furnishings, jewelry, travel, a boat, other entertainment, and to settle prior legal disputes that were unrelated to eComprar.
See also, Litigation Release No. 17674 (August 9, 2002).