Brad S
13 years ago
JUDGMENT OF PERMANENT INJUNCTION AND OTHER RELIEF ENTERED AGAINST DEFENDANT MICHAEL RIVERS
Litigation Release No. 21894 / March 22, 2011
Securities and Exchange Commission v. Michael Rivers and ARKR Trust, LLC, Civil Action No. 6:09-CV-1674-MSS-DAB (M.D. Fla.)
JUDGMENT OF PERMANENT INJUNCTION AND OTHER RELIEF ENTERED AGAINST DEFENDANT MICHAEL RIVERS
The Securities and Exchange Commission announced that on February 28, 2011, the United States District Court for the Middle District of Florida entered a Judgment of Permanent Injunction and Other Relief against Michael Rivers, former Chief Executive Officer of IBSG International, Inc. The Judgment enjoins Rivers from violations of Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934, and Rules 10b-5, 13a-14, 13b2-1 and 13b2-2, and from aiding and abetting IBSG’s violations of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act, and Rules 12b-20, 13a-1, 13a-11 and 13a-13. In addition to injunctive relief, the Judgment bars Rivers from acting as an officer or director of a public company registered with the Commission. The Court will determine at a later date whether to also order Rivers to pay disgorgement, prejudgment interest, and a civil penalty. Rivers consented to entry of the Judgment without admitting or denying any of the allegations in the Complaint.
The Commission began this action by filing its complaint on September 29, 2009, against Michael Rivers and Relief Defendant ARKR Trust, LLC. Among other things, the Complaint alleged Rivers directed IBSG to issue multiple press releases announcing fictitious software licensing agreements, and to file periodic reports with the Commission that falsely recognized more than $23 million in revenues from the purported agreements. Rivers contemporaneously sold over one million shares of IBSG stock, generating approximately $1.23 million in illicit proceeds.
For additional information, see Litigation Release No. 21228 (September 30, 2009).
http://www.sec.gov/litigation/litreleases/2011/lr21894.htm
joenatural
15 years ago
From yesterday's 8-K .......
Item 4.02 Non-reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.
As previously reported, on January 6, 2009, due to significant health reasons impacting his ability to carry out his functions at the present time, Michael Rivers was relieved of his position as Chief Executive Officer of IBSG International, Inc., and Jim Queen was appointed as interim Chief Executive Officer. The Company has commenced an investigation of issues that include, but may not be limited to, possible discrepancies in the amount of the Company’s current assets reported, possible issues underlying the recording of the proceeds from business transactions as revenue, in addition to other issues regarding the Company’s business and operations. The Company, in conjunction with its outside securities counsel, has retained outside counsel to conduct an investigation into these issues.
As a result of the issues noted above and related uncertainties, the Board of Directors together with current executive officers of the Company determined on January 12, 2009 that the Company’s previously issued financial statements during the 2008 fiscal year should not be relied upon at this time. If necessary, the Company intends to restate these financial statements based on the finding of its investigation. The Company is in the early stages of its internal investigation, and in the process of the investigation the Company may discover information that will raise other issues.
now invest
16 years ago
News!!!
Women in Finance Partners with IBSGI SA to Assist 50,000 Women Business Owners Utilizing Its BizWorld Digital Commerce Platform
Wednesday March 26, 8:00 am ET
Company Announces over $4 Million in Revenue for First Quarter 2008 after Record 2007 Geographic Diversity Continues to Boost Revenue Growth from Existing Business
CELEBRATION, Fla.--(BUSINESS WIRE)--IBSG International, Inc., (the “Company”), (OTC BB: IBIN - News) a holding company for four technology and software subsidiaries, announced today that Women in Finance (WIF), a South African Organization promoting women within business, has partnered with IBSGI SA to offer IBSG’s BizWorld Digital Commerce Platform to its small, medium and micro enterprises (SMME’s). The value of the license is US$3.2 million over four years, with a total projected estimated value for the transaction of approximately US$8.5 million
WIF is a national organisation promoting women within business, and assisting in the empowerment of women and small businesses particularly, but not exclusively, with regards to financial literacy and finances. Founded in November 2005, the organization serves more than 50,000 women-owned businesses. WIF is funded in conjunction with ABSA Bank and the South African federal government, and functions as one of the bank’s premier organizations. ABSA is one of the largest banks in Africa, serving an estimated 500,000 businesses.
“I believe this platform is beneficial, in that it provides the practical tools that allow SMME’s to develop and grow their businesses in an ever-growing network of like-minded small business owners,” said Colleen Larsen, CEO of Women in Finance. “The benefits of this platform will enhance the offerings Women in Finance is providing through the Showcase Your Business brand, and will ensure the greater sustainability of SMME’s in South Africa through the support it provides.”
WIF is the driving force behind the United Businesswomen of South Africa, an association formed to provide a collaborative support structure to organizations (whether for profit or not) involved in the empowerment of women, and to leverage their untapped potential. 18 organizations currently affiliate under this umbrella. The various services offered by WIF include support structures for women, networking, role modeling and mentorship, increased access to training, entrepreneurship and collaboration with various parties who can help women-owned businesses meet their objectives.
The South African government has a budget surplus of 30%. As large South African enterprises have restructured and downsized, small, medium and micro enterprises (SMMEs) have come to play an increasingly important role in South Africa's economy and development. The sector has grown significantly. Management’s research has shown that in 1996, around 19% of those employed were in the informal sector of the economy, and by 1999 this had risen to 26%. Given this increase, management believes that the government has therefore targeted investing in the SMME sector as an economic empowerment vehicle for previously disadvantaged people.
“Setting up and growing a business can be incredibly hard work, and Women in Finance is an organization that inspires the entrepreneurial spirit of the women of South Africa and fosters amongst them a willingness to help each other,” said Ingrid Ovenstone, Director of IBSGI SA. “This partnership between IBSGI SA and Women in Finance will take WIF to a new level, one where SMME’S have access to internet-based tools to benefit and grow their businesses. I am very excited to be part of this project, as I believe the SMME’s that utilize the platform will derive incredible benefit from it.”
Dr. Michael Rivers, CEO of IBSGI, said, “We continue to enhance our business based on existing relationships. We have protected IBSGI, to some degree, by developing a geographically diverse client base, and in 2007, we had a record year in large part because we are not at the mercy of a single market.”
The Company recently filed its Form 10-K, in which it reported that revenue increased approximately $7.0 million, or 92%, from approximately $7.6 million in FY2006 to approximately $14.6 million in FY2007. Net income increased approximately $4.2 million, or 597%, from approximately $0.7 million, or $0.10 per fully diluted earnings per share in FY2006 to approximately $4.9 million, or $0.57 per fully diluted earnings per share in FY2007.
About IBSG International, Inc. (www.ibsgi.com)
IBSG International, Inc. is a holding company for four technology and software subsidiaries: Intelligent Business Systems Group, Inc. (IBSG), a provider of turnkey digital service center software; Secure Blue, Inc., a Sarbanes-Oxley and security software solution provider; Intelligent Business Systems Development (IBSD), a software development, maintenance and data storage company; and IBSGI - UK, a consultant company focused on development of IT projects for Governmental bodies and multinational corporations.
IBS Group offers enterprise solutions designed to enhance the operating efficiency and create revenue for State Small Business Development Centers, business associations (e.g., business associations) and Fortune 1000 corporations by licensing its unique turnkey digital service center software, which provides a broad range of digital budgetary, administrative and commercial services (B2B, e-commerce, government to business and enterprise business services) on a single platform known as the BizWorldPro©.
Secure Blue, Inc. provides a robust economical Sarbanes-Oxley (SOX) compliance and security software suite, Secure Blue SOX Pro. It is targeted at small- and mid-cap public companies as well as private companies requiring SOX compliance to enable them to continue working with public companies.
As software providers, system integrators and Application Service Providers, IBS Group, Inc. and Secure Blue, Inc. generate revenue from license sales, system modifications, systems support and a percentage of monthly customer fees. The typical IBS Group/Secure Blue license agreement has a five-year term which is updated on an annual basis.
IBS Development, Inc. will provide ongoing support of International’s other subsidiaries, IBS Group and Secure Blue. The company provides development, system support and secure data storage, and will maintain offices in the US and India, where its current offshore development and support team is located.
IBSGI - UK establishes IT projects for various countries and multi-national corporations around the world. IBSGI - UK has already introduced the BizWorldPro platform to a number of countries and continues to provide demonstrations of the system on an international scale. For multinational corporations, the projects are normally recognized offset program qualified and provide a required contractual obligation of these corporations. IBSGI – UK maintains relationships with various multinational corporations and operates from centrally located offices in London.
Safe Harbor Forward-Looking Statements
Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. The above information does not guarantee any successful closing of new business. No assurances can be given that any projections related to gross revenues or profit margins will be realized. Forward-looking statements involve known and unknown risks and uncertainties that may cause the companies’ actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings and other risks.
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