U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 18224 / July 10, 2003
FINAL JUDGMENTS SETTING DISGORGEMENT, PREJUDGMENT INTEREST AND A CIVIL PENALTY ENTERED AGAINST EDUARDO VILLAR AND WAYNE PRICHASON
SECURITIES AND EXCHANGE COMMISSION V. WEB HOSTING HEADQUARTERS PARTNERSHIP, DONALD E. RHOADES, KENNETH R. GROSSFELD, WAYNE L. PRICHASON, EDUARDO VILLAR, AND KARYN MILLER, ET AL., Case No. 00-4975-CIV-HIGHSMITH-TURNOFF (S.D. Fla., filed Dec. 28, 2000)
The Securities and Exchange Commission (SEC) announced that on July 7, 2003, the United States District Court for the Southern District of Florida entered Final Judgments Setting Disgorgement, Prejudgment Interest and a Civil Penalty ("Final Judgments") against Eduardo Villar ("Villar") and Wayne Prichason ("Prichason"). The Final Judgments entered against Villar and Prichason order them to disgorge $151,094 and $142,215, respectively, plus prejudgment interest, which represents the ill-gotten proceeds they received as a result of their participation in an unregistered fraudulent offering of securities issued by Web Hosting Headquarters Partnership ("Web Hosting"). The Final Judgments further impose a civil penalty in the amount of $110,000 against both Villar and Prichason.
On December 28, 2000, the SEC filed an emergency action against Villar, Prichason and others seeking to enjoin the alleged ongoing fraudulent securities offering being conducted by Web Hosting, a Miami, Florida boiler-room and its principals and telemarketers. Among other things, the SEC's Complaint alleges that the boiler-room, 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. According to the Commission's Complaint, Villar served as "Initial Managing Partner" of Web Hosting and Prichason was a manager of the boiler-room sales operation.