U.S. Securities and Exchange Commission
LITIGATION RELEASE NO. 18879 / September 10, 2004
ACCOUNTING AND AUDITING ENFORCEMENT
RELEASE NO. 2096 / September 10, 2004
SECURITIES AND EXCHANGE COMMISSION v. MICHAEL B. JOHNSON, MICHAEL JOHNSON & CO., LLC, DAVID C. SKINNER, JR. AND AMERICAN TELEVISION AND FILM COMPANY f/k/a WINNERS INTERNET NETWORK, INC., No. 04-RB-0626 (USDC D. Colorado).
The United States Securities and Exchange Commission (Commission) announced that on April 2, 2004, the United States District Court for the District of Colorado entered an injunction by consent against American Television and Film Company (American Television). The court's order permanently enjoins American Television from violating Sections 10(b), 13(a) and 13(b)(2) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-1, 13a-11 and 13a-13 thereunder.
The Commission's complaint alleged that between December 1999 and December 1999 and December 2000, American Television, then known as Winners Internet Network, Inc. (Winners), carried out a scheme to defraud investors by filing reports and a registration statement with the Commission containing false financial statements that fraudulently overstated Winners' revenues, income, assets and cash inflows and understated expenses. Further, between January and October 2000, Winners reviewed or disseminated three promotional analyst reports containing baseless financial projections.
American Television consented to the court's order without admitting or denying the Commission's allegations.