By Joey Gardiner, 13 May 1999 17:32
NEWS The US Securities and Exchange Commission (SEC) is planning to take legal action against 14 cases of online fraud. In what it describes as a nationwide Internet fraud sweep, 26 people and companies have been charged. All of the cases involve false securities sold on the Web - some through pyramid schemes. In one case, a one-man company - Abacus International Holding Corp - promised extravagant returns on bank securities that did not exist. One investor lost $250,000. In a statement, the SEC's director of enforcement, Richard Walker, said that the move underlines the SEC's commitment to clean up the Web. "While the Internet can make it easier for thieves to commit securities fraud, the Internet also puts the fraud in plain view," he said. The FBI also announced this week that it will set up an Internet Fraud Council to deal with online fraud. Robert Carolina, partner with law firm, Tarlo Lyons, said the actions show the US authorities are finally getting to grips with the problem of Internet deception. "It isn't more law that's needed - but more law enforcement. Money and attention seems finally to be going where its needed," he said. For tips on avoiding fraud online visit http://www.sec.gov/consumer/jneton.htm
In order to post a comment you need to be registered and logged in.
Log in or create your silicon.com account below