Privacy, Business and Law

On October 8, the U.S. Securities and Exchange Commission announced that the Honorable Richard W. Story of the United States District Court for the Northern District of Georgia has entered a Consent Final Judgment of Permanent Injunction against International Heritage, Inc. (IHI), International Heritage Incorporated (IHI Incorporated) and Stanley H. Van Etten. In its complaint, filed on March 16, 1998, the SEC alleged that IHI, through Van Etten and others, solicited investors for a pyramid scheme through misleading promotional materials including Web pages. The scheme reportedly raised $150 million from over 155,000 investors. The Consent Final Judgment enjoins IHI and Van Etten from further violations of various sections of the Securities Act of 1933 and the Securities Exchange Act of 1934. IHI Incorporated is enjoined from further violations of various provisions of the Securities Exchange Act of 1934. IHI, IHI Incorporated and Van Etten consented to entry of the Consent Order of Judgment without admitting or denying the SEC’s allegations. “The court ordered disgorgement against IHI in the amount of $6,533,179, of which $4.1 million may be satisfied from a posted surety bond. The Court ordered disgorgement against Van Etten in the amount of $7,630,450, but due to a demonstrated inability to pay, the Court ordered Van Etten to pay $150,000, required Van Etten to waive certain claims against the bankruptcy estate of IHI, and waived payment of the remaining disgorgement, pre-judgment and post-judgment interest.”