UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 17207 / October 25, 2001.

SECURITIES AND EXCHANGE COMMISSION V. STEVEN GOLDSBOROUGH AND WILLIAM GOLDSBOROUGH, INDIVIDUALLY AND DOING BUSINESS AS THE LIQUIBUYERS GROUP Civil Action No. 3:01-CV-2134-G (N.D. Texas, Dallas Division)

On October 24, 2001, the Commission filed civil fraud charges in federal district court in Dallas, Texas, against Steven Goldsborough and William Goldsborough, individually and d/b/a The Liquibuyers Group (Defendants) in connection with an unregistered Internet offering of so-called "pre-IPO stock vouchers." The Commission's complaint alleges that the Defendants used an Internet website to defraud over 30 investors throughout the United States, raising approximately $750 in the fraudulent offering. Simultaneously with the filing of its action, the Defendants have agreed to settle this matter by consenting to the entry of a permanent injunction described below.

• The Liquibuyers Group, a Fort Worth, Texas based unincorporated business entity, claimed to provide merchandise liquidation services to furniture wholesalers. Liquibuyers owned no assets and conducted no business activities other than the Internet stock voucher offering.

• Steven Goldsborough, age 22, is a resident of Fort Worth, Texas, and operated, together with his brother William Goldsborough, the Liquibuyers website.

• William Goldsborough, age 30, is a resident of Fort Worth, Texas, and operated, together with his brother Steven Goldsborough, the Liquibuyers website.

The Commission's complaint charges the Defendants with securities fraud in connection with a promotion for The Liquibuyers Group in which the Defendants offered stock vouchers on an Internet website for "administrative" fees ranging from $10 to $25. Promising returns of up to $3,500 on a $10 investment, the Defendants claimed that investors could redeem their stock credits for common stock when Liquibuyers completed a purportedly impending initial public offering (IPO) of its securities in January 2001.

According to the complaint, the Defendants made numerous misrepresentations and omissions of material facts in connection with the offering, including that the Commission had approved the offering, that Liquibuyers would soon conduct an IPO, and that Liquibuyers stock would be valued at $17.50 to $35 per share at the time of its IPO. In reality, the Commission never approved the offering and Liquibuyers never undertook any meaningful steps to conduct an IPO. The complaint further alleges that Liquibuyers never established offices, never acquired any inventory, and never offered any products or services, via the Liquibuyers website or otherwise. Moreover, the Commission claims that the Defendants misappropriated all of the fees generated in the promotional offering.

In its complaint, the Commission alleges that the Defendants violated the antifraud and the registration provisions of the federal securities laws. Specifically, it is alleged that the Defendants violated Section 17(a) of the Securities Act of 1933 (Securities Act), Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, as well as Sections 5(a) and 5(c) of the Securities Act.

For tips on how to avoid Internet investment schemes, visit http://www.sec.gov/investor/pubs/cyberfraud.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. For a description of other SEC enforcement actions involved in this Internet Fraud Sweep, visit http://www.sec.gov/news/press.shtml.