Judge Pulls Plug on Web Hosting Firm's Telemarketing Campaign

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A federal judge acting at the request of the Securities and Exchange Commission shut down an inbound telemarketing campaign aimed at bringing investment dollars to a Web site hosting firm.


A U.S. District Court judge in Miami issued a restraining order Dec. 29 against Web Hosting Headquarters Partnership, Miami. According to the SEC's complaint, the company placed ads in the New England Journal of Medicine and the Physicians' Travel and Meeting Guide in order to lure physicians.


The company told respondents to the ad that it would use the investment money to expand its operations, according to the SEC. However, 62 percent of the investment money went to pay telemarketers and the company's principals, and 92 percent of all Web Hosting Headquarters' revenues come from sales of securities rather than business revenues, the SEC said.


Web Hosting Headquarters collected $2.5 million from 132 investors in 38 states prior to the date that the judge's order was issued, according to the SEC.


A telephone number listed for Web Hosting Headquarters in Miami was disconnected.
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