Fergie's Tech Blog

California Web Firm Bilked Backers, SEC Says

A Dow Jones/Associated Press article, via The Los Angeles Times, reports that:

Children's Internet Inc., a company that promises to protect children from inappropriate Internet content, bilked more than $5 million from investors and used the money to pay gambling debts, according to a lawsuit filed Wednesday by the Securities and Exchange Commission.

The SEC sued the Pleasanton, Calif., company's 39-year-old chief executive, Sholeh Hamedani, and her father, Nasser Hamedani, 68, both of Danville, Calif.

The Hamedanis treated the company "like their own piggy bank and then tried to cover up the scheme," said Helane Morrison, head of the SEC's San Francisco office.

posted by Fergie @ 9/28/2006 04:31:00 PM