President of PacketSwitch.com Sentenced to 11 Years Prison Term for Technology Fraud

In a recent case brought by the U.S. Securities and Exchange Commission (SEC), the former president and CEO of Internet start-up PacketSwitch.com, Steven A. Ristau was found guilty of fraud, selling unqualified securities and tax evasion. In 1999, Mr. Ristau claimed that his company had developed wireless technology that would allow movies to be viewed up to 12 miles away. No such technology then existed. Mr. Ristau used a nearby hidden off-the-shelf wireless LAN to "demonstrate" the technology to potential investors. Mr. Ristau sold $3.7 million worth of stock to investors in an unregistered stock offering. The money was alleged to have been spent on personal items for Mr. Ristau and his family. Mr. Ristau was found guilty and sentenced to 11 years in prison and ordered to pay $6.7 million in fines and restitution. For a copy of the SEC litigation release notices about this case, visit: http://www.sec.gov/litigation/litreleases/lr17105.htm, and http://www.sec.gov/litigation/litreleases/lr17065.htm A copy of the case can be purchased at: http://www.legalcasedocs.com/120/246/638.html