U.S. SECURITIES & EXCHANGE COMMISSION

Litigation Release No. 17774 / October 8, 2002

SEC v. William J. Tishman, et al., Case No. 01-6952-CIV-Dimitrouleas (S.D. Fla.) (filed June 5, 2001)

TELEMARKETER ORDERED TO PAY MORE THAN $1.5 MILLION IN DISGORGEMENT AND PENALTIES IN CONNECTION WITH FRAUDULENT SECURITIES SCHEME

The Securities and Exchange Commission (Commission) announced today that on August 27, 2002, the Honorable William P. Dimitrouleas, United States District Judge for the Southern District of Florida, issued an order imposing disgorgement with prejudgment interest in the amount of $1,487,271 and a civil penalty of $50,000 against Jeffrey M. Goldberg for his role in a fraudulent securities offering by Medical Research Industries, Inc. (MRI).

In a Complaint filed in June 2001, the Commission alleged that, between 1996 and mid-1999, Goldberg was responsible for overseeing MRI's telemarketing operation and received commissions in connection with the sale of MRI stock. MRI was a Ft. Lauderdale based company which allegedly manufactured and marketed homeopathic products, in patch form, for a variety of health concerns, including weight loss, sex, and sleep disorders. Through a series of fraudulent stock offerings, MRI raised approximately $52 million from more than 2,500 investors nationwide, primarily physicians.

Goldberg had previously consented, without admitting or denying the allegations in the Commission's Complaint, to the entry of a permanent injunction for violating the securities registration and antifraud provisions federal securities laws. The injunction against Goldberg, which was entered on April 18, 2002, enjoins him from future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

For more information on earlier actions in this case, see Litigation Release No. 17617 (July 16, 2002) and Litigation Release No. 17399 (March 6, 2002).

http://www.sec.gov/litigation/litreleases/lr17774.htm