CURRAN ORDERS CECIL COUNTY MAN TO STOP OFFERING ADULT WEBSITE BUSINESS OPPORTUNITIES

Man Is Alleged to Have Defrauded Buyers From as Far Away as United Kingdom

Attorney General J. Joseph Curran, Jr., announced today that his office's Securities Division issued a Summary Order to Cease and Desist against Jean Marc Anthony DeFague, 21, of North East, Maryland. The order charges DeFague with violating the antifraud, registration, and disclosure provisions of the Maryland Business Opportunity Sales Act by selling adult website "business opportunities" from his personal home computer.

According to the order, DeFague advertised the sale of adult website businesses on the Internet auction site eBay. The order alleges that DeFague told prospective buyers, some from as far away as the United Kingdom, that he would sell them a website domain name, adult content, site support and ongoing assistance to allow them to operate the websites as a profitable business venture. According to the order, in some cases, DeFague guaranteed buyers that they could earn as much as $500 per week from the adult websites through subscriptions. The order alleges that some buyers paid DeFague $3,000 or more for a website business but never received what he promised them, and never heard from him again.

The order alleges that DeFague's offers and sales violated Maryland's Business Opportunity Act. The order charges DeFague with defrauding buyers, making misrepresentations about the website business opportunity, failing to register with the Securities Divsion, and failing to provide disclosure to prospective buyers. According to the order, DeFague must immediately cease and desist offering or selling business opportunities in or from Maryland, pending a hearing.

" We want to make sure that no one else is harmed by Mr. DeFague's fraudulent business opportunity scheme, “ said Attorney General Curran. By issuing a summary order, we can put an immediate stop to his activities."

Curran noted that it is always a good idea to check with his office first, before investing any money in a home-based business or investment opportunity. Curran said that anyone can check out these opportunities, and check out securities, stockbrokers, and investment advisers, by calling the Securities Division at 410-576-6360, or visiting his website at www.oag.state.md.us.

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