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U.S. Securities and Exchange Commission


LITIGATION RELEASE No. 18369 / September 29, 2003


(United States District Court for the District of Massachusetts, 03-MBD-10291 (RWZ))

The Securities and Exchange Commission today announced that, on September 25, 2003, it filed an action in Massachusetts federal court to enforce a subpoena against Jonathan G. Fink, of Beverly Hills, California. The Commission's Application alleges that, on June 2, 2003, the Commission served Fink with a subpoena requiring him to appear for testimony on July 1, 2003. At Fink's request, the Commission staff rescheduled Fink's testimony for July 16, 2003. Fink appeared for testimony on July 16; however, his testimony was not completed that day. As a result, Fink and Commission staff agreed to reconvene his testimony on August 28 and 29. Fink never appeared for testimony on those dates, claiming that he was ill. As of the date of the Commission's filing, Fink had not responded to the staff's requests that he provide documentary evidence concerning his purported illness, nor had he proposed new alternative dates for reconvening his testimony.

In its Application, the Commission alleges that, on April 15, 2003, the Commission issued a formal order of private investigation entitled In the Matter of Converge Global, Inc. Pursuant to the formal order, Commission staff began investigating a possible stock manipulation scheme related to Converge Global, Inc., a Florida-based holding company that purports to sell telecommunications products through TeleWrx, Inc., its sole operating subsidiary. Between at least March and June 2002, Converge and others disseminated spam e-mails and press releases projecting the explosive growth and success of TeleWrx's network marketing program. Among other things, Converge's trading volume increased 443%, on the day following issuance of one of the press releases. On June 26, 2002, Fink admitted, during a telephone interview with Commission staff, that he helped to draft at least some of Converge's press releases. Fink is also a purported "consultant" to Converge and, as such, appears to have received, and distributed, a significant amount of Converge shares during the period at issue. The Commission alleges in the Application that it requires the continuation of Fink's testimony to determine his potential role with respect to the Converge press releases and the potential manipulation scheme related to trading in Converge common stock between at least March and June 2002.

Pursuant to its Application, the Commission is seeking an order directing Fink to show cause why he should not comply with the Commission's subpoena and/or an order compelling Fink to appear for testimony. The Commission's action has been assigned to the Honorable Rya W. Zobel, District Court Judge.



Modified: 09/29/2003