IshopNoMarkup.com - LRH Management Tech- SEC Reports fraud as 2.3 Mil in fraudulent and unregistered securities
Maureen
U.S. Securities and Exchange Commission
Litigation Release No. 18890 / September 20, 2004
SEC v. iShopNoMarkup.com, Inc., et al., Civil Action No. CV 04 4057
(DRH) (E.D.N.Y.)
COMMISSION CHARGES ISHOPNOMARKUP.COM, INC. AND THREE EMPLOYEES WITH
CONDUCTING A SERIES OF FRAUDULENT SECURITIES OFFERINGS
The Securities and Exchange Commission today filed a complaint in the
U.S. District Court for the Eastern District of New York against
iShopNoMarkup.com, Inc. ("iShop"), a company located on Long Island,
New York. The Commission's complaint alleges that from the fall of
1999 through the summer of 2000, iShop conducted a fraudulent offering
scheme that defrauded over 350 investors who invested approximately
$2.3 million in unregistered iShop stock.
The complaint names the following defendants:
*
IShop is a Nevada corporation with its principal place of
business on Long Island, New York. IShop was purportedly developing a
shopping mall on the Internet to sell products directly from
manufacturers to customers at no markup.
*
Anthony M. Knight, age 38, was a resident of Great Neck, New
York. Knight was the Chairman of iShop's Board of Directors, and he
served at various times as Director of Planning, Secretary, and Chief
Executive Officer.
*
Moussa Yeroushalmi, age 51, is a resident of Great Neck, New
York. Yeroushalmi was iShop's President.
*
Scott W. Brockop, age 39, is a resident of Edison, New Jersey.
Brockop served as iShop's Vice President of Sales and Marketing.
The complaint alleges the following. From the fall of 1999 until the
summer of 2000, iShop conducted a series of fraudulent and
unregistered securities offerings. IShop distributed offering
memoranda and other documents to investors that misrepresented, and
failed to disclose, material information concerning iShop's business
operations. Knight, Yeroushalmi, and Brockop also made oral
misrepresentations to investors falsely indicating that iShop had
imminent plans to conduct an initial public offering of stock, and
that after the IPO, iShop's stock would dramatically increase in
value. Knight also established a "boiler room" operation at iShop,
which Brockop supervised. Through this boiler room, employees cold-
called potential investors, and made material misrepresentations to
induce them to purchase iShop stock. Through the offerings, iShop sold
approximately 6,748,600 shares of stock to over 350 investors, and
obtained proceeds of approximately $2.3 million. IShop did not file a
registration statement for the sale of these securities, and there was
no registration statement otherwise in effect.
The Commission's complaint charges iShop, Knight, Yeroushalmi, and
Brockop with violating Sections 5(a), 5(c), and 17(a) of the
Securities Act of 1933, Section 10(b) of the Securities Exchange Act
of 1934, and Rule 10b-5 thereunder. The complaint also charges Brockop
with violating, and Knight with aiding and abetting violations of,
Section 15(a) of the Exchange Act. The complaint seeks permanent
injunctions against all defendants. The complaint also seeks
disgorgement of ill-gotten gains plus prejudgment interest, and the
imposition of civil monetary penalties, against Knight, Yeroushalmi,
and Brockop. Finally, the complaint seeks officer and director bars
against Knight and Yeroushalmi.
http://www.sec.gov/litigation/complaints/comp18890.pdf
SEC Complaint in this matter
---
http://www.secinfo.com/drNmr.5J9.6.htm
IshopNoMarkup.com, Inc.
334 Main Street
Port Washington, NY 11050
EMPLOYMENT AGREEMENT
I TONY KNIGHT having been accepted for employment by
IshopNoMarkup.com, Inc.,
(IshopNoMarkup.com"), a Nevada corporation, whose principal offices
are located
at the above address (the "Premises"), have been informed and do agree
to the
following:
1. I understand that IshopNoMarkup.com utilizes L. Ron Hubbard's
management technology in operating the company. I understand that
L. Ron
Hubbard is also the founder of Scientology, which is an applied
religious
philosophy, I understand, however, that Mr. Hubbard's management
technology (the "Management Technology") is quite separate and
distinct
from the religious aspect of Scientology.
2. I have been informed that the Management Technology involves
principles
of organization and its operation, including title handling of
personnel,
finance, marketing and promotion, product, planning and
organizational
correction, among other things.
3. I further understand that in order to properly function as a team
member at IshopNoMarkup.com, I will be required to read, understand
and
apply certain policy letters pertaining to the Management
Technology to my
job, and that my work performance will be evaluated in terms of
my ability
to do this effectively I agree that should I have any difficulty
understanding, or any objection whatsoever in applying the Management
Technology, I will immediately put this objecting in writing and
give it
personally to my senior in order that any personnel problem can
he handled
swiftly to the benefit of all concerned.
4. I have been informed that production as measured by statistic
is one of
the key factors used.
5 . I understand that I will be provided the opportunity to
enroll for and
complete the following training actions:
Formulas For Business Success, Management by Statistics, and How to
Increase Efficiency, and any other courses that are approved by the
Hubbard College of Administration, an accredited institution that
grants
certificates and associates degrees in business administration.
I understand that I will be provided the opportunity to take further
courses, which will be essential for my advancement and
increased earnings
in the company.
6. I understand that IshopNoMarkup.com does not permit efforts to
convert
its employees to any religion on its premises. The position of
IshopNoMarkup.com is that its offices are a place of work. It is the
policy of IshopNoMarkup.com that the Management Technology is purely
secular and intended for smooth expansion of its business, and such
Management Technology is not to be used by staff or executives in an
effort to convert persons to any religion. Any violation of this rule
should be reported at once, in writing to the Director of Special
Affairs
of the company. Nothing in this rule should be construed as
violating a
person's freedom of religion and his or her right to choose to find
out
about or convert to any religion, or seek information about any
religion,
while on his or her own time.
7. Any controversy, dispute or claim between IshopNoMarkup.com
and myself
arising out of and/or involving our employment relationship shall be
settled by binding arbitration. The arbitration shall be
conducted either
in accordance with the Model Employment Arbitration Procedures of the
American Arbitration Association which are in effect at times of the
arbitration or by the Greater New York Charter Committee. The
choice of
arbitration avenue shall be agreed upon by both parties.
The arbitrator shall apply New York substantive law to the
proceeding. The
demand for arbitration must be in writing and must be made by the
aggrieved party within thirty days of the event giving rise to
the demand.
The arbitration shall take place in the New York Metropolitan Area.
The decision of the arbiter shall be binding and conclusive on
the parties
and not renewable for error of law.
Judgment upon the award rendered by the arbitrator may be entered
in any
court having proper jurisdiction. The arbitrator shall determine
if there
is a prevailing party and the prevailing party shall be awarded
reasonable
attorney's fees.
8. (a) I understand that no employee of IshopNoMarkup.com has any
authority to make any promises, agreements or to form any contracts,
whether verbal or written, which obligates IshopNoMarkup.com, its
management and/or owner and which is not covered by any official
written
policy of IshopNoMarkup.com, except if the Position calls for this.
(b) I agree to perform honestly, and faithfully,
industriously, and to the best of my ability, experience and
talents, all
if the duties that may be required by the express and implicit
terms if
this Agreement, to the reasonable satisfaction of IshopNoMarkup.com.
9. (a) I recognize that IshopNoMarkup.com has and will have business
affairs, future plans, customer lists, technical information and
other
vital and confidential information (collectively, "Information"),
which
are valuable, special and unique assets of IshopNoMarkup.com. I
agree that
I will not at any time, without prior written consent of
IshopNoMarkup.com, reveal, divulge or make known, directly or
indirectly,
to any person, firm or corporation the Information, any facts
concerning
names addresses and phone numbers, any knowledge or any other
secret or
confidential information whatsoever, used by IshopNoMarkup.com in
connection with its business, or otherwise, nor reveal the name of,
solicit, interfere with, or entice away from IshopNoMarkup.com
(collectively, a "Solicitation") --or in any manner participate in or
facilitate any Solicitation of any of IshopNoMarkup.com's clients.
(b) I shall, upon any termination of this Agreement,
surrender
to an authorized officer or representative of IshopNoMarkup.com all
property belonging to IshopNoMarkup.com or relating to
IshopNoMarkup's
business (including, but not limited to all records, notes, data and
memoranda (and all copies thereof) and all keys and equipment, if
any)
that is in my possession or under my control.
( c) [check mark ] If the foregoing box is checked, and
the
parties have initiated the following provision, then it shall
become a
part of this Agreement;
In the event that I shall terminate this Agreement or that this
Agreement
shall be terminated in any manner, I shall not (unless acting as an
officer or employee of IshopNoMarkup.com, or except with
IshopNoMarkup.com's prior written consent) directly or indirectly,
whether as officer, agent, stockholder, partner, consultant,
employee or
otherwise, engage, own, manage, operate, control, or participate
in the
ownership, management operation or control of, or be connected in
any
manner with any business engaging in performing services identical
to
those performed by IshopNoMarkup.com, for the period of one (1)
year.
-----------
Maureen
Maureen
Latest release from 2006:
"The Commission is continuing to pursue this action against
defendants, iShop, Knight, and Yeroushalmi."
http://www.sec.gov/litigation/litreleases/2006/lr19892.htm
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19892 / October 30, 2006
SEC v. iShopNoMarkup.com, Inc., et al., Civil Action No. 04-CV-4057
(E.D.N.Y.)
Commission Obtains Final Judgment by Default Against Defendant Scott
W. Brockop
The Commission announced today that on October 26, 2006, the United
States District Court for the Eastern District of New York entered a
final judgment by default against defendant Scott W. Brockop. The
final judgment permanently enjoins Brockop from violating Sections 5
and 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a) of
the Securities Exchange Act of 1934, and Rule 10b-5. In addition, the
final judgment finds Brockop liable for disgorgement of $41,634.10
plus prejudgment interest of $17,427.81, and directs him to pay a
civil penalty of $41,634.10.
The Commission's Complaint alleged that from the fall of 1999 until
the summer of 2000, defendant iShopNoMarkup.com, Inc. conducted a
series of fraudulent and unregistered securities offerings. IShop
distributed offering memoranda and other documents to investors that
misrepresented, and failed to disclose, material information
concerning iShop's business operations. Brockop and defendants Anthony
M. Knight and Moussa Yeroushalmi made oral misrepresentations to
investors to persuade them to invest in iShop stock. Further, Brockop
supervised a "boiler room" operation at iShop, through which employees
cold-called potential investors, and made material misrepresentations
to induce them to purchase iShop stock. Through the offerings, iShop
sold approximately 6,748,600 shares of stock to over 350 investors,
and obtained proceeds of approximately $2.3 million. IShop did not
file a registration statement for the sale of these securities, and
there was no registration statement otherwise in effect.
The Commission is continuing to pursue this action against defendants,
iShop, Knight, and Yeroushalmi.
For information about earlier developments in this matter, see
Litigation Release No. 18890 (Sept. 20, 2004).
http://www.sec.gov/litigation/litreleases/2006/lr19892.htm
Modified: 10/30/2006
rhill
Excellent finding!
Hartley Patterson
>
> http://www.sec.gov/litigation/litreleases/lr18890.htm
> The Securities and Exchange Commission today filed a complaint in the
> U.S. District Court for the Eastern District of New York against
> iShopNoMarkup.com, Inc. ("iShop"), a company located on Long Island,
> New York.
[snip]
> 1. I understand that IshopNoMarkup.com utilizes L. Ron Hubbard's
> management technology in operating the company.
Another example of the evil socialist psych conspiracy trying to stop
Real Americans (TM) from making money!
--
Hartley Patterson
http://www.newsfrombree.co.uk
http://news-from-bree.blogspot.com
Android Cat
"rhill" <rh...@xenu-directory.net> wrote in message
news:hfl9f9$5bv$1...@news.eternal-september.org...
> Maureen wrote:
>> http://www.sec.gov/litigation/litreleases/lr18890.htm
>> The Securities and Exchange Commission today filed a complaint in the
>> U.S. District Court for the Eastern District of New York against
>> iShopNoMarkup.com, Inc. ("iShop"), a company located on Long Island,
>> New York. The Commission's complaint alleges that from the fall of
>> 1999 through the summer of 2000, iShop conducted a fraudulent offering
>> scheme that defrauded over 350 investors who invested approximately
>> $2.3 million in unregistered iShop stock.
Oh my, another e-Mall start up, right at the edge of the dotBomb.
--
Ron of that ilk.
Eldon
>
> read more »
Good catch. This was a pretty brazen scheme. What kind of magical
thinking makes Scientologists think they can get away with such
obvious ripoffs?
rhill
> On Dec 8, 6:12 am, Maureen <lermanet...@gmail.com> wrote:
>> http://www.sec.gov/litigation/litreleases/lr18890.htm
>>
>> U.S. Securities and Exchange Commission
>> Litigation Release No. 18890 / September 20, 2004
>> SEC v. iShopNoMarkup.com, Inc., et al., Civil Action No. CV 04 4057
>> (DRH) (E.D.N.Y.)
>> COMMISSION CHARGES ISHOPNOMARKUP.COM, INC. AND THREE EMPLOYEES WITH
>> CONDUCTING A SERIES OF FRAUDULENT SECURITIES OFFERINGS
>
> Good catch. This was a pretty brazen scheme. What kind of magical
> thinking makes Scientologists think they can get away with such
> obvious ripoffs?
As pointed out by Maureen, "L. Ron Hubbard Management tech."
Lermanet.com Exposing the CON for 15 years!
They either think they are ubermensch or think they are on Ron's
Bridge to ubermensch!!
You now have a license to STEAL for the "GREATEST GOOD"
"To do as thou whilst is the whole of the law"
Corollary - Hypnosis WORKS!
Hubbard's edict: The supreme test of a satan IS THE ABILITY TO MAKE
THINGS GO RIGHT.
Intentional Typos are mine.
moar like this here
http://www.lermanet.com/scientology-and-occult/
> As pointed out by Maureen, "L. Ron Hubbard Management tech." -
Which worked very well in the 30's, for a master stage hypnotist
names Adolf,
http://lermanet.com/scientology-and-occult/valkyrie-and-scientology.htm
and included a multitude of front groups and the renovation of many
historical buildings..
http://lermanet.com/scientology-and-occult/historic-building.htm
Maureen
> On Dec 7, 11:12 pm,Maureen<lermanet...@gmail.com> wrote:
>
> >http://www.sec.gov/litigation/litreleases/lr18890.htm
>
> > U.S. Securities and Exchange Commission
> > Litigation Release No. 18890 / September 20, 2004
> > SEC v. iShopNoMarkup.com, Inc., et al., Civil Action No. CV 04 4057
> > (DRH) (E.D.N.Y.)
> > COMMISSION CHARGES ISHOPNOMARKUP.COM, INC. AND THREE EMPLOYEES WITH
> > CONDUCTING A SERIES OF FRAUDULENT SECURITIES OFFERINGS
(snip)
How much went to $cientology is the question, outside of the training
fees? Is there not a consultant fee in addition?
Found at:
http://www.allbusiness.com/business-finance/equity-funding-stock/1034426-1.html
Former iShop staffers seek SEC action
By Corry, Carl
Publication: Long Island Business News
Date: Friday, June 30 2000
GARDEN CITY - Former employees of the Internet startup
iShopNoMarkup.com have filed a formal complaint with the Securities
and Exchange Commission alleging that company execs are bilking
investors by charging the firm consulting fees through separate
companies they own.
Further, the former employees
say the company is illegally targeting non-accredited investors -
those who do not make $200,000 a year and have a $1 million net worth.
The company has also spent at least $17,000 in the past six months on
a firm specializing in Scientology management training, the employees
charge.
The company denies any wrongdoing. SEC spokesman John Heine, stating
standard policy, said he could not confirm or deny whether the agency
has received complaints about the firm.
iShopNoMarkup.com was launched in August 1999 by Anthony Knight and
Yousef Neissani as a way to buy products directly from suppliers with
no markup on the prices. The firm currently
offers more than 800,000 products.
Steve Loeser, who headed the company's investor relations activities,
and one of those who filed a complaint with regulatory officials, said
he resigned his position "after confronting the board on questionable
expenses, outrageous consulting fees and extensive salaries that the
top three executives were unable to justify."
He added: "As a professional dealing in finance, I felt it was my
fiduciary responsibility to leave."
Among consulting fees paid in April and May was $32,000 to a firm
owned by iShopNoMarkup.com Chairman and CEO Anthony Knight and more
than $45,000 to other consultants.
An iShopNoMarkup.com subsidiary, C1Line.com, paid an additional $8,000
to Knight's consulting practice during the 11 months ending May 31.
The company's legal counsel, Robert E. Fletcher, said most of the
consulting fees in question were paid over a fivemonth period. In a
letter to Long Island Business News he said the allegations were made
by "disgruntled employees who are no longer with the firm ... or were
terminated because they were caught promoting or engaging in unethical
business practices."
Fletcher said the company's board confronted Loeser after employees
reported that he was "attempting to spread" panic within the company
by telling others it would "fold" in two months.
"He was let go because he was trying to bring about the destruction of
the company," he said.
Another former employee, Bryan Coon, who brought with him a
multimillion dollar business-to-business agreement when he joined
iShopNo Markup.com as vice president of B2B operations in April,
refused to comment about his employment at the company except to say
that as of June 14, he no longer worked there.
Fletcher, the company counsel, conceded that the firm may have
inadvertently allowed in a few non-accredited investors, but that the
firm now has a system in place to weed them out.
"I can't imagine that many companies that have done private offerings"
have not had nonaccredited investors seep through, he said.
-----
Maureen
Eldon
> On Dec 7, 11:31 pm, Maureen <lermanet...@gmail.com> wrote:
>
> > On Dec 7, 11:12 pm,Maureen<lermanet...@gmail.com> wrote:
>
> > >http://www.sec.gov/litigation/litreleases/lr18890.htm
>
> > > U.S. Securities and Exchange Commission
> > > Litigation Release No. 18890 / September 20, 2004
> > > SEC v. iShopNoMarkup.com, Inc., et al., Civil Action No. CV 04 4057
> > > (DRH) (E.D.N.Y.)
> > > COMMISSION CHARGES ISHOPNOMARKUP.COM, INC. AND THREE EMPLOYEES WITH
> > > CONDUCTING A SERIES OF FRAUDULENT SECURITIES OFFERINGS
>
> (snip)
>
> How much went to $cientology is the question, outside of the training
> fees? Is there not a consultant fee in addition?
>
Sounds like they could use a little consulting from Tommy Davis.
BenCisco
>
> Sounds like they could use a little consulting from Tommy Davis.
HAHA Guess they thought they'd be a little WISEr and go with Ronnie's
methods instead.
Maureen
They already have the: Ready, willing and ABLE (tm) legal team
starring:
> > The company's legal counsel, Robert E. Fletcher, said most of the
> > consulting fees in question were paid over a fivemonth period. In a
> > letter to Long Island Business News he said the allegations were made
> > by "disgruntled employees who are no longer with the firm ... or were
> > terminated because they were caught promoting or engaging in unethical
> > business practices."
#
Prosperity 53 - New WISE Members
Aug 16, 2004 ... What's the truth about Scientology? ... Business
Success Praha Jim Fahs, Young Home Consultant Robert Fletcher, Finley
Fletcher & Knapmeyer ...
http://www.truthaboutscientology.com/stats/.../prosperity053.html -
Cached - Similar -
#
Scientology Service Completions - Freewinds 33 [circa June 1999 ]
Nov 13, 2006 ... The following list of Scientology service completions
appears in ... Koster Rita Beuchert Jaime Hardt Paul Fletcher Robert
Johnson Rolf Moll ...
http://www.truthaboutscientology.com/stats/fw/freewinds33.html -
Cached - Similar -
#
Registered Agents, Officers, and Directors of Church of Scientology A
- 8:10pm
Feb 12, 2005 ... NY Church of Scientology of New York NY FLETCHER,
ROBERT E., Association for Better Living and Education AND NY
Foundation International ...
http://www.holysmoke.org/cos/scientology-agents-registered.htm -
Cached - Similar -
#
http://www.holysmoke.org/cos/scientology-agents-registered.htm
A poster on the OCMB by the name of Don Carlo has put together this
information on the C of S.
Registered Agents, Officers, and Directors of Church of Scientology
entities in the U.S. as of February 2005
NEW YORK
NY Church of Scientology of New York NY FLETCHER, ROBERT E.,
Association for Better Living and Education AND
NY Foundation International Membership Services Administrations
NY Narconon Hudson Valley Inc.
NY Narconon New York, Inc.
NY Narconon New York-Get Off Drugs Inc
NY STRUBE, QUENTIN, World Institute of Scientology Enterprises
NY The Church of Scientology, Mission of East Manhattan, Celebrity
Center, Inc.
------------
Now there's some $cientology fiduciary responsibility.
Maureen
Odd: "Active"
http://appsext8.dos.state.ny.us/corp_public/CORPSEARCH.ENTITY_INFORMATION?p_nameid=2433225&p_corpid=2395343&p_entity_name=I%20shop&p_name_type=A&p_search_type=BEGINS&p_srch_results_page=0
Selected Entity Name: I SHOP NO MARKUP, INC.
Selected Entity Status Information Current Entity Name: I SHOP NO
MARKUP, INC.
Initial DOS Filing Date: JULY 06, 1999
County: QUEENS
Jurisdiction: NEW YORK
Entity Type: DOMESTIC BUSINESS CORPORATION
Current Entity Status: ACTIVE
----
http://exposingtheunderbelly.blogspot.com/2009/04/michael-lin-baum-56y-b4-10-52-clinton.html
Myron G. Finley (no FL license-claims attorney) (WISE '06)(Meredith A.
Finley (O5 '02, Dianetics '07)
Robert "Bob" E. Fletcher attorney
[Link to Florida (U.S.) Bar Association:
http://www.floridabar.org/names.nsf/0/A2439FA8C371B575852570A0004930BC?OpenDocument
]
WISE '06, OT6 '91, Solo Nots II '07) (19 Vestry St., NY, NY 10013)
Finley, Fletcher & Pilch
1221 Rogers St. B
Clearwater, Fl 33756-5900 (212) 633-2373
-----
Travolta videos 4sale...on ishopnomarkup:
http://web.archive.org/web/20030622112252/www.ishopnomarkup.com/scstore/images/6305426694.gif
http://web.archive.org/web/20030327021132/www.ishopnomarkup.com/scstore/Videos.html
Maureen
One more twist for this ($cientological?) Investor::
Moussa Yeroushalmi
http://blog.syracuse.com/opinion/2008/01/questionable_deal_state_should.html
Questionable Deal: State should have talked to community first about
Syracuse resort project
By Paul Riede
January 27, 2008, 5:02AM
[...]
Mayor Matt Driscoll and Common Councilor Pat Hogan have objected to
not having input in the deal. The state said it sent copies of the bid
package to the mayor; the mayor's office denied receiving any
information.
Dave Michel, the city's director of economic development, wrote a
letter to the state last fall expressing concern about one of the
project's principals, Moussa Yeroushalmi, who the Securities Exchange
Commission has accused of defrauding investors. Michel also said the
Syracuse Resort Center for Disabled Inc. did not exist as a legal
entity. The city is worried that developers could just leave the site
empty.
[...]
-----
State to sell Syracuse Developmental Center site to developers Monday,
November 19, 2007By Mike McAndrew Staff writer
The state is planning to sell the former Syracuse Developmental Center
site for ***$2.2 million to two Long Island businessmen who hope to
turn it into a $300 million luxury resort for the physically disabled.
[///]
Meanwhile, one of the partners in Syracuse Resort is battling the
Securities Exchange Commission over allegations that he defrauded
investors in an unrelated business.
In a suit filed in 2004, the SEC accused Moussa Yeroushalmi and a
business he ran of defrauding investors out of ***$2.3 million. The
SEC is trying to permanently bar Yeroushalmi from being an owner or
director of any company that issues stock to the public. The suit is
pending in federal court.
The suit alleges Yeroushalmi and iShopNoMarkup.com Inc., a start-up
Internet shopping business he ran, defrauded 350 investors in 1999 and
2000 by providing false information about the company's operations and
capital raising plans.
-----
Sounds like raising funds for an *** 'ideal org'
#
Scilon email list - Why We Protest | Activism Forum
Moussa Yeroushalmi xx...@aol.com · yourho...@msn.com .....
http://forums.whyweprotest.net/123-leaks-legal/scilon-email-list-36288/
› ... › Leaks & Legal - Cached - Similar -