N2K Sues Joseph Borg and the Alabama Securities Commission [May 5, 2005]

BIRMINGHAM, Ala., May 5, 2005 /PRNewswire via COMTEX/ -- Terry Harris, President & CEO of Networker2000.com announced that on April 18, 2005, N2K filed a federal class action lawsuit against Joseph Borg and the Alabama Securities Commission (ASC). In the filed complaint, Harris alleges that the ASC is unfairly attacking N2K which is a legitimate network marketing company that sells internet web hosting service. The problem started when Harris went to the ASC in order to get an official opinion on how to set up an investment club (Wealth Builders International), which is a totally separate entity from N2K, so that it would not be in violation of ASC statutes. Harris was instructed by Susan Anderson, Chief Counselor of the ASC, that in order to operate the club without the club being required to be registered as an investment advisor it can not charge its members a fee for joining the club. She also informed Harris that if he wanted to avoid the requirement of being registered as an investment advisor representative he could not receive any compensation from the club for trading on its behalf. Ms. Anderson informed Harris that this type of setup would prevent the memberships in the club from being classified as a security because it would then fall under a charitable exemption.

Harris claims that he was entrapped by a long-standing, racist, social and political system in the state of Alabama even after strictly following the instructions of the ASC. Harris believes that his prosecution is very political and is part of a government conspiracy that may include the following officials: the Governor of Alabama, Bob Riley, Alabama Attorney General, Troy King, Deputy Attorney General J Randall McNeil, Assistant Attorney General, Stephanie Billingslea, Attorney JL Chestnut of Selma, Alabama, Judge Johnny Hardwick of Montgomery County, Alabama and Judge Hard of Jefferson County, Alabama.

During the trial on January 24, 2005 the record showed that neither Harris nor the club ever received compensation from any of the club's members. The record of the trial also shows that top officials including Susan Anderson, Chief Counselor of the ASC, stated under oath: "Terry Harris broke no laws." Even though Harris is in compliance, Joseph Borg and the ASC continue to persecute Harris and his business, N2K. A march in support of Harris and N2K was led by Martin Luther King III in August 2003.

The suit alleges that Borg and the ASC damaged the members of the club by freezing the club's account and ordering the liquidation of all positions in that account across the board. This resulted in a 1.5 million dollar loss to the members of the club. Borg threatened to prosecute Harris if he didn't inform the members that he was responsible for the loss but Harris maintains that whomever sold the positions at the lower price is the one that is responsible for the loss. According to Harris, that is when Borg began a personal vendetta against him.

The suit further claims that because Harris owns N2K, Borg issued a phony cease & desist order against N2K implying that N2K was in the business of selling unregistered securities along with other fraudulent accusations. Even though N2K is a legitimate network marketing company that sells web hosting service the ASC took that phony cease & desist order to just about everybody that did business with N2K implying that N2K was operating illegally therefore encouraging them to stop doing business with N2K, according to Harris' complaint.

These actions have created a financial loss to the club's members, Terry Harris, N2K and each Independent Representative of N2K, located in all 50 states. Harris is encouraging all club members as well as all independent representatives who joined N2K after April 17, 2003 to join in on the class action lawsuit because of the actions of Joseph Borg and the Alabama Securities Commission. Harris is expecting over 100,000 independent representatives of N2K and members of WBI to join in on this lawsuit.

If you have questions or require more information contact: Terry Harris, President & CEO

SOURCE N2K