Tampa, Fla. -- Ellis Neil Younger, one of the promoters of
Children's Cable Network, pleaded guilty to the sale of unregistered securities, Florida
officials said last Monday.
The guilty plea followed a yearlong investigation by the
state comptroller's west central Florida regional office of the state Department of
Banking and Finance, and by the Hillsborough County state attorney's office, those
agencies said in a news release.
Marsha Perkins, financial investigator of criminal
enforcement in the comptroller's office, said Younger agreed to pay $50,000 in restitution
and to serve five years' probation.
In December 1997, Younger, a former stockbroker, and other
CCN promoters were ordered to stop selling certificates of membership interests in the
network. The comptroller's complaint contended that Younger sold securities that were not
exempt from registration under Florida law by selling membership interests to Florida
residents. Over three months, 22 investors bought membership interests totaling $330,000.
CCN's business plan was to buy time on leased-access cable
channels and air older children's shows, like New Zoo Review, then to profit by
selling advertising on the shows.
Investors, who bought shares that cost $10,000 each, were
lured by promised returns of 33 percent per month and up to 231 percent over four years,