Companies defrauded investors, commission sez
WASHINGTON — The Federal Trade Commission and the Securities Exchange Commission teamed up Tuesday to file charges against several alleged scam artists who tempted investors with promises of big returns in entertainment ventures.
Among those targeted by the FTC and SEC is North American Broadcasting Corp. which promised investors that a $10,000 investment would give them a stake in an Elvis Presley memorabilia franchise. In addition to a coffee table book on Presley, the NABC also claimed that it had rights to previously unreleased music. The venture raised $12 million through deceptive marketing, according to the FTC.
The World Interactive Gaming Corp., promised investors that they could turn $10,000 into $157,000 in one year, according to the FTC. Still another company raised $16.5 million from investors who thought they had a piece of a children’s cable network devoted to non-violent programming. When that venture failed, the company diverted the remaining $650,000 into another cable channel called “My Pet TV” that it told investors was devoted to pet grooming.