Blunt issues orders against dot-coms, energy corporation

Missouri Secretary of State Matt Blunt has issued three cease-and-desist orders against two California-based Internet companies and one Kentucky-based energy corporation, according to a news release from his office.

Blunt issued the first order against Tel.Net.Com 1 LLC, a company purportedly in the business of providing operating capital to U.S. Telefone Inc.

According to the release, Steve Lee and Ralph Leveaux claimed to be sales agents for Tel.Net and U.S. Telefone. In July 2000, a Missouri resident received two phone calls from Lee on behalf of U.S. Telefone soliciting an investment in Tel. Net. The Missouri resident also received a packet of information from U.S. Telfone that included a confidential private placement memorandum, subscription agreement, power of attorney form and Lee's business card.

Lee made several follow-up calls and sent the Missouri resident more packets of information. The private placement memorandum indicated that U.S. Telefone was offering 2 million shares of its common stock at $1 per share. A check of the records maintained by the securities commissioner confirmed no granted registration or exemption for any of the securities offered by Lee or Leveaux, and that neither of the men was licensed to sell securities in Missouri.

Blunt issued another order against InBound.com Inc., a Nevada corporation engaged in the business of "owning, operating, managing and promoting" Internet services, and Cyber Centers.com Inc., a corporation purportedly in the business of providing the retail services offered by InBound.com.

Sometime in February 2000, the release said, a Missouri resident received a telephone call from a representative of Cyber Centers soliciting an investment in InBound.com.

The Missouri resident then received a packet of information from Cyber Centers that included an offering memorandum, a subscription agreement and a business card from a man named Evans. The offering memorandum indicated that InBound.com was offering 400,000 shares of its stock at $2.50 per share. Evans made several follow-up calls to the Missouri resident soliciting stock purchase in InBound.com. Evans is not registered to sell securities in Missouri, and the securities he offered have no registration or granted exemption listed with the securities commissioner.

The final cease-and-desist order was issued against Southeastern Energy Inc., a Kentucky business engaged in oil and gas exploration projects. G. Allan Murrell is the president of Southeastern Energy, and Buddy Harper claims to be a sales agent. A Missouri resident received a telephone call from Murrell soliciting an investment in an oil and gas offering through Southeastern Energy. The Missouri resident then received a packet of information from Southeastern Energy that included a promotional video, subscription agreement and limited partnership agreement for the Dale Hollow Prospect. As with the previous cases, Murrell and Harper are not registered and have no granted exemption to sell securities in Missouri.

Secretary Blunt said, "Schemes that are based off of major news stories or current events, like high gas prices and dot-com companies, are always prevalent and investors should always question any person or corporation soliciting their business. I strongly encourage Missourians to call the Investor Hotline at 800-721-7996 to ensure the person they are dealing with is recognized by the Securities Division of my office."