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Published on: 2/5/2008
Last Visited: 9/8/2008
The SEC has filed an emergency injunctive action against Daryn Fleming, the former CEO of International Broadcasting Corporation, and Mathew Bruce, an agent of the company.
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The SEC claims that Fleming and Bruce violated federal securities laws by making misleading statements to International Broadcasting investors in press releases, as well as in comments made on air, and in company filings.
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The suit also seeks permanent injunctions against Fleming and Bruce, along with officer and director bars against Fleming.
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The suit also seeks permanent injunctions against Fleming and Bruce, along with officer and director bars against Fleming.
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In October 2005, Fleming issued an International Broadcasting press release, announcing that the company had acquired an AM radio affiliate, WIBQ-AM 1220 in Sarasota, Florida, to carry the company's internet radio programming.
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Bruce, a Florida resident, provided Fleming with valuable information for this press release, said the SEC.
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On November 10, 2005, the complaint continues, Fleming and Bruce repeated the tactic, this time sending out a press release announcing the company's agreement with a 100,000 Watt FM radio affiliate, WTKS 104.1 FM in Cocoa Beach, Florida.
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Again, the SEC said Bruce provided Fleming with valuable information for the release, and again the release's assertions were complete fabrications.
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Following those lies, said the SEC, Fleming made verbal misrepresentations to company investors during live internet broadcasts of "Stock Talk LIVE."These were on November 14, 16, and 28.On the final broadcast, Bruce joined Fleming on the air.
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But Bruce was providing Fleming with information for his broadcasts throughout, according to the Commission.
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Fleming countered by saying that the press release was not false, and that the owners of the radio station mentioned in that press release had made a mistake.Fleming allegedly said that the miscommunication related to the fact that the station was in the process of being sold, a bold-faced lie, said the SEC.
Finally, International Broadcasting's Form 10-QSB filed on January 13, 2006, which was signed by Fleming, contained similar misrepresentations.