Mark Sendo and Internet Money.com, Inc.

Litigation Release No. 17427 / March 21, 2002

SEC v. Mark Sendo and Internet Money.com, Inc., U.S. District Court for the Eastern District of Michigan, Civ. Action No. 01-73698 (E.D. Mich. September 28, 2001)

The Securities and Exchange Commission announced today that on March 15, 2002, the United States District Court for the Eastern District of Michigan entered a permanent injunction against Internet Money.com, Inc. (iMC), permanently enjoining it from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. iMC is an Ann Arbor based start-up company that purportedly is developing a secure Internet payment device. iMC consented to entry of the permanent injunction without admitting or denying the Commission's allegations. The claims against co-defendant Mark Sendo are pending.

The Commission's Complaint alleged that from at least December 1999 until March 2001, iMC and its largest shareholder and former CEO, Mark Sendo, raised at least $440,500 through the sale of common stock to at least 23 investors. The Complaint alleges that iMC and Sendo made false and misleading statements in business plans provided to potential investors about the individuals associated with iMC. First, iMC falsely represented that various high profile figures in the Internet and "payment systems" industries had invested in iMC, served on iMC's Board of Directors or were a part of iMC's management team. These misrepresentations were designed to provide potential investors with the impression that highly successful business executives were guiding the development of iMC when, in fact, Sendo directed iMC's operations. Second, iMC's offering materials present a misleading portrayal of Sendo. Sendo is described in offering materials as a successful professional who worked for highly reputable brokerage firms. The offering materials, however, do not disclose that Sendo pled guilty to federal criminal wire fraud charges and was enjoined in a Commission enforcement action for his role in a securities fraud.

For tips on how to avoid Internet "pump-and-dump" stock manipulation schemes, visit http://www.sec.gov/investor/online/pump.htm. For more information about Internet fraud, visit http://www.sec.gov/divisions/enforce/internetenforce.htm. To report suspicious activity involving possible Internet fraud, visit http://www.sec.gov/complaint.shtml.