SECURITIES AND EXCHANGE COMISSION
Litigation Release No. 18309 /August 25, 2003
Securities and Exchange Commission v. Toks, Inc. and Ade O. Ogunjobi, 03 CV 01787 (D.D.C. August 25, 2003)
SEC SUES TOKS, INC. AND ITS CHIEF EXECUTIVE OFFICER ADE O. OGUNJOBI FOR SECURITIES FRAUD
The Commission announced today that it filed a complaint alleging that Toks, Inc., a shell company, and Ade O. Ogunjobi, Toks' founder, chairman and chief executive officer, are engaged in an ongoing fraudulent and unregistered offering of promissory note securities over the Internet. The complaint was filed in the U.S. District Court for the District of Columbia.
Specifically, the complaint alleges that:
The complaint charges Toks and Ogunjobi with violating Section 5(c), a registration provision of the Securities Act of 1933, and Sections 17(a)(1) and 17(a)(3), antifraud provisions of the same Act. In addition, the Commission charges that Toks' and Ogunjobi's conduct violates Section 14(e) of the Securities Exchange Act of 1934 and Exchange Act Rules 14d-2(b) and 14e-8, tender offer provisions of the federal securities laws.
The Commission is seeking final relief in the form of permanent injunctions enjoining Toks and Ogunjobi from future violations of the securities laws and rules named above and prohibiting them from acting as issuers, underwriters, brokers or dealers in an unregistered offering, disgorgement of any illegally obtained proceeds, and civil penalties. The Commission has also asked the Court to grant interim relief that includes preliminary injunctions, an order barring the defendants from accepting any funds from investors in connection with the offering, and an accounting to determine the full amount of any monies received by Toks and Ogunjobi as a result of the alleged conduct.