SEC FILES SUBPOENA ENFORCEMENT ACTION IN PRE-IPO SOLICITATIONS CASE

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION

SEC Files Subpoena Enforcement Action Against Anthony Coronati for Failure to Produce Documents and Appear for Testimony in Investigation of Solicitations Relating to Pre-Ipo Securities

The Securities and Exchange Commission announced today that it has filed a subpoena enforcement action in the U.S. District Court for the Southern District of New York against Anthony Coronati and that the Court entered an order directing Coronati to show cause why he should not be ordered to comply with the subpoenas. According to the application, the SEC is investigating whether Coronati and others have violated or are violating registration, anti-fraud, or other provisions of the federal securities laws in connection with a business known as Bidtoask.com.

The SEC's application alleges that Bidtoask.com, apparently created by Coronati, solicits investments relating to the securities of sought-after private companies that investors hope will soon hold initial public offerings, such as Facebook Inc., Twitter Inc., and Dropbox Inc. The nature and extent of investors' interests once they purchase these purported pre-IPO shares is part of the investigation. The application further alleges that certain investor funds have been commingled with other funds in an account controlled by Coronati and that personal expenses appear to have been paid out of that account. The SEC staff is investigating whether any investor funds have been misappropriated or otherwise misused.

As part of its investigation, the staff in the SEC's New York Regional office served Coronati with a document subpoena in July 2013, and served a further subpoena for documents and sworn testimony in early October 2013. The SEC's application alleges that Coronati has ignored the subpoenas: he never produced any documents, appeared for testimony, or otherwise responded to the subpoenas.

The SEC's application seeks an order from the federal district court compelling Coronati to comply fully with the subpoenas. The SEC is continuing its fact-finding investigation and, to date, has not concluded that anyone has violated the securities laws.