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2 Southland Men Facing Stock-Sale Suit by SEC

June 05, 2003|E. Scott Reckard | Times Staff Writer

The Securities and Exchange Commission accused two Southland men Wednesday of selling stock without brokers' licenses and charged one of them with making fraudulent statements to investors.

In a lawsuit filed in federal court in Los Angeles, the SEC said Charles Bayne and Ira Posnansky raised $4.6 million through their now-defunct company, Pre-IPO Financial Group, by selling unregistered shares of Medical Online, a supplier of health information, and Intellect Exchange, an Internet-based service that provides access to experts in a variety of fields.

The SEC asked the court to impose unspecified fines against Bayne, 47, of Glendale, and Posnansky, 56, of Los Angeles, and to order them to comply with securities laws.

The regulatory agency also is seeking return of profits from Bayne, who is accused of misrepresenting Intellect Exchange's prospects.

Lisa A. Gok, the SEC's assistant regional director in Los Angeles, said the men are contesting the accusations.

Their attorneys couldn't immediately be reached for comment.

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