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CALIFORNIA / News and Insight on Business in the Golden
State | THE STATE / SECURITIES

9 Settle Charges Related to Alleged Scheme

April 15, 1998|Bloomberg News

Nine individuals settled regulators' charges they participated in a fraudulent scheme that raised $3.9 million from investors, who were told their money was going to establish and operate a 900-number dating service in Canoga Park. The Securities and Exchange Commission alleged that the nine individuals and 10 others sold unregistered securities and misled investors by telling them that test-marketing of the pay-per-call service performed better than it really did. They also projected returns of as much as 448% a year from investments in the partnership called "Touch Tone Partners." The SEC said the projection was baseless and that the 900-number only operated for a short period, basically during its test marketing. The nine individuals settled the SEC charges by agreeing to be subject to stiffer sanctions if they commit similar violations in the future. They neither admitted nor denied the allegations. Their attorney did not return a call seeking comment.

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