Paramount Capital Management, Inc. and William C. Bolton

On December 5, 1997, the SEC obtained temporary restraining orders and asset freezes against Paramount Capital Management, Inc. and William Bolton in connection with a the fraudulent offering of securities to investors.  The SEC alleged that the defendants fraudulently used material misrepresentations to induce investments in a sham initial public offering of securities of a non-existent company called “Micronet Corp.”  Rather than invest funds obtained from investors, the defendants used the funds for their own personal benefit.  For more information about the SEC’s action, you can read Litigation Release Nos. 15566 (Nov. 19, 1997), 16082 (Mar. 9, 1999), and 16801 (Nov. 15, 2000).

On September 22, 2006, the SEC made a motion before the Court requesting that the Court approve its proposed Amended Plan for Distribution of Disgorged Assets to distribute $29,588.65, comprised of funds received from the defendants’ frozen assets and interest that has accrued on those funds.  On September 26, 2006, the Court issued an Order requiring the SEC to post this notice on its website to alert potential claimants of the proposed Amended Distribution Plan.  The Order provides that any individual wishing to comment on or object to the proposed Amended Distribution Plan, or wanting to make a claim to funds available, must submit in writing a letter postmarked no later than October 26, 2006.  Since the time the Court approved the Amended Distribution Plan, it has agreed to extend the deadline for letters postmarked no later than November 24, 2006.

Investor letters should be addressed to

Stephanie D. Shuler, Esq.
United States Securities and Exchange Commission
Division of Enforcement
3 World Financial Center
Room 4300
New York, NY  10281

http://www.sec.gov/divisions/enforce/claims/paramountcapital.htm