Industry News

Hell House- Unregistered Activity- Shuts ‘Em Down In PA

Commission Halts Unregistered Activity
By T&H Northwest, LLC d/b/a HellHouse Media Network and Ty Gonty a.k.a. Rex Mundi
Harrisburg, PA, 03/27/2009 — To halt the offer and sale of unregistered securities in Pennsylvania, the Pennsylvania Securities Commission issued a Summary Order to Cease and Desist against T&H Northwest, LLC d/b/a HellHouse Media Network (T&H), an entity, and Ty Gonty a.k.a. Rex Mundi (Gonty), an individual, both with an address in Renton, Washington. T&H maintained a website at (Web Site). Gonty was the chief executive officer of T&H.
In or about February 2009, at least one Pennsylvania resident (PA Resident) observed an advertisement (Ad) on an Internet message board. The Ad was entitled, “Award winning Adult Media Company Seeks Investors” and contained a link to the Web Site. According to the Web Site, T&H is offering for sale interests (Interests) in movies produced and sold by T&H. At least one Pennsylvania resident (PA Resident) viewed the Ad and, using the link provided in the Web Site, e-mailed T&H for additional information.
In or about February 2009, Gonty e-mailed the PA Resident offering materials (Materials) and offered for sale an Interest in a movie entitled “My Kinky Valentine” (Movie). Further, Gonty told the PA Resident that the PA Resident did not need to do anything in order to purchase the Interests other than submit funds to T&H. The Materials indicated that, pursuant to the purchase of an Interest for $12,000, an investor would obtain a twenty percent (20%) ownership interest in the Movie, and an investor would receive a monthly payment representing 20% of the net receipts from the Movie.

Neither the Ad nor the Web Site contain the disclosure set forth in Commission Regulations. The PA Resident had no substantive, pre-existing relationship with T&H or Gonty. The PA Resident was not an Aaccredited@ investor under Section 501 of Regulation D, nor did the PA Resident have sufficient knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of the investment.

The Commission directed T&H Northwest, LLC and Ty Gonty to stop offering or selling the Interests in the Commonwealth of Pennsylvania, in violation of the Pennsylvania Securities Act of 1972, and in particular Section 201 thereof.

Any further solicitations or sales made by these respondents in Pennsylvania will constitute violations of the 1972 Act and the Commission’s Orders. Any person who is solicited by or has information about these respondents is asked to immediately notify the Pennsylvania Securities Commission by calling 800-600-0007, or, in Harrisburg: (717) 787-8062, in Pittsburgh: (412) 565-5083 or in Philadelphia: (215) 560-2088.

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