SEC Hammers Company’s Customers
for Securities-Fraud Participation
January 7, 2004
The SEC has again gone after customers of a company for allegedly helping to perpetrate the company’s securities fraud by “round-tripping,” i.e., creating fictitious transactions that were reported as revenue. As part of the settlement, the customers’ principals, as well as the company insiders who were involved, were barred from serving as an officer or director of a publicly-held company.
Junk FAXing brings $5.4M Fine
January 7, 2004
On Monday the Federal Communications Commission (FCC) announced that it was fining Fax.com, Inc. nearly $5.4 million “for faxing unsolicited advertisements to consumers in violation of the Telephone Consumer Protection Act (TCPA) and the Commission’s rules. . . . This is the largest single fine ever imposed by the Commission for violation of the TCPA.”
The FCC said that it imposed the maximum permissible forfeiture of $11,000 for each of 489 separate violations on grounds that “Fax.com’s primary business activity itself constitutes a massive on-going violation” of the TCPA.
See the FCC’s press release for more details.