104.  FTC v. Selket Precious Metals, Inc., et al (E.D. Cal. November 1999)

Defendants: Selket Precious Metals Inc., and Paul H. Byus

Type:  Investment Scheme

The defendants promoted two types of investments through Internet promotions and follow-up telephone pitches: shares of stock in Selket and certificates redeemable for gold from the company's mine. Potential investors allegedly were assured that an investment in Selket stock would appreciate, because Y2K related concerns would drive up the price of gold, and that gold certificates purchased would be just like money in the chaos following January 1, 2000.

The Commission alleged that defendants made false claims about short-term investment returns and risk. The company entered into a stipulated final judgment which bars Selket from making false representations about the potential risk and return of investments in its mining operations, that its mine will be operational in any given period of time, that the value of any ore deposits has been proven, or that a known quantity of ore will be mined. In addition, the proposed order broadly prohibits Selket from misrepresenting the risk, value or any other fact material to any investment or investment offering.

The complaint and stipulated final judgment were filed in the United States District Court, Eastern District of California on November 16, 1999.