Invest Better 2001 (IB2001)

On January 7, 2001, the SEC obtained permanent injunctions and asset freezes against Cole A. Bartiromo and Invest Better 2001 (IB 2001) in connection with their fraudulent and unregistered offering of securities over the Internet. The SEC alleged that the defendants raised over $1 million from more than 1,000 investors by promising "risk-free" investment programs in which IB2001 pooled investor funds to bet on sporting events. The defendants promised to repay investors between 125% and 2500% of their principal within specified periods.

The SEC also alleged that Bartiromo transferred approximately $900,000 of investor funds to an account at a casino in Costa Rica. As part of the Court's order, Bartiromo and IB2001 were directed to repatriate all assets outside the United States and deposit them into the Court's account. For more information about the SEC's action, you can read Litigation Release Nos. 17272 (Dec. 13, 2001) and 17296 (Jan. 7, 2002).

As of February 11, 2002, the SEC has recovered approximately $1.2 million of ill-gotten gains and has deposited these funds into the Court's account. The SEC submitted a disgorgement plan to the Court to equitably distribute recovered funds to defrauded investors. The Court approved an interim distribution of approximately $370,000 to 360 investors whose claims were approved. The Court-appointed administrator will be sending checks to investors. If you have not received a check by April 30th, and you believe you are entitled to participant in the plan, you should provide information verifying your investment in IB2001 by contacting SEC Investigator Jeffrey Yip at (646) 428-1945 or YipJ@sec.gov.

http://www.sec.gov/divisions/enforce/claims/investbetter.htm