12.Spectrum Entertainment Group, Inc. is an Illinois corporation incorporated by
Hernandez in December 2008. Spectrum appears to have funded a Chicago sports-talk website
related to Hernandez. However, Hernandez controls its only known bank account into which he
diverted more than $160,000 of investor finds according to the lawsuit brought by the SEC.
13. The Ilumina Group, Inc. is an Illinois corporation incorporated by Hernandez in
October 2008. Ilumina also appears to have funded a Chicago sports-talk website related to
Hernandez. Hernandez controls its only known bank account into which he diverted more than
$380,000 of investor funds according to the lawsuit brought by the SEC.
15. Michael North and BeBe North were Hernandez^s business partners in Chicago
Sports Webio, a business funded by Hernandez by ill-gotten funds from Nextstep investors.
Both were officers of CSW and knew or should have known that monies invested into CSW
were from illegal and improper sources such as investors in NextStep. They then received
monies as compensation from CSW and which monies were the ill gotten gains taken from
Plaintiffs and other class members.
16. Daniel Jiggetts is Hernandez^s business partner in Chicago Sports Webio, a
business funded by Hernandez by ill-gotten funds from Nextstep investors.
f. In addition, Hernandez diverted investor funds to two other companies he
controlled 2 defendants Spectrum and Ilumina. From those accounts, Hernandez
also spent investor funds to start up a Chicago sports-talk website called “Chicago
Sports Webio” featuring defendants Michael North and Daniel Jiggetts.
(
www.chicagosportswebio.com). On a broadcast of North and Jiggetts^ sports
show, North and Jiggetts claimed they knew Hernandez for 16 years, and
endorsed defendant Medical Staffing. Upon information and belief, North and
Jiggetts made public appearances and endorsed Hernandez and the Nextstep
entities.
Hernandez also diverted investor funds to finance Chicagosportswebio.com, a
new online sports-talk website owned by Spectrum. Hernandez diverted at least $165,500 of
investor funds directly to the Spectrum account, and made other payments for the benefit of
Spectrum^s online sports talk station business, including compensation in excess of $100,000 to
defendants Michael North and Daniel Jiggetts, Chicago sports radio personalities, for their
participation in Hernandez^s online sports talk station and public endorsement of the Nextstep
entities.
39. Hernandez expended at least $275,000 of investor funds to pay for advertising
and promotion for Chicagosportswebio.com and Medical Staffing.
40. Hernandez also diverted at least $381,000 of NextStep investor funds relief
defendant Ilumina.
COUNT III
Aiding and Abbetting Violations of Exchange Act Violations of Section 10(b)
61. Nextstep Medical Staffing IL, Inc., Nexstep Holdings, Inc., Spectrum
Entertainment Group, Inc., The Ilumina Group, Inc., Gina M. Hernandez, Michael North, Daniel
Jiggetts, and Cortez Trotter knowingly or with severe recklessness provided substantial
assistance in connection with the purchase or sale of securities, directly or indirectly, by the use
of the means or instrumentalities of interstate commerce or of the mails: (a) used or employed a
device, scheme, or artifice to defraud; (b) made untrue statements of material fact or omitted to
state material facts necessary in order to make the statements made, in the light of the
circumstances under which they were made, not misleading; and (c) and engaged in acts,
practices, or courses of business which operated or would operate as a fraud and deceit upon the
purchasers and prospective sellers of such securities.
62. Nextstep Medical Staffing IL, Inc., Nexstep Holdings, Inc., Spectrum
Entertainment Group, Inc., The Ilumina Group, Inc., Gina M. Hernandez, Michael North, Daniel
Jiggetts, and Cortez Trotter acted knowingly or recklessly when they provided substantial
assistance in connection with the fraudulent conduct described above.
63. By reason of the foregoing, Nextstep Medical Staffing IL, Inc., Nexstep Holdings,
Inc., Spectrum Entertainment Group, Inc., The Ilumina Group, Inc., Gina M. Hernandez,
Case 1:09-cv-04485 Document 1 Filed 07/24/2009 Page 20 of 28
Michael North, Daniel Jiggetts, and Cortez Trotter violated Section 10(b) of the Exchange Act
[15 U.S.C. § 78j(b)] and Rule l0b-5 promulgated thereunder [17 C.F.R. § 240.l0b-5].
COUNT VI
Unjust enrichment against All Defendants
61. Hernandez, NextStep Medical, NextStep Holdings, Spectrum, Ilumina, Gina
Hernandez, Michael North, Be Be North, Daniel Jiggetts, and Cortez Trotter have no legitimate
claim to such funds that they received or from which they otherwise benefited, directly or
indirectly.
63. Plaintiffs are entitled to an order, pursuant to common law equitable principles
and also pursuant to Section 21 (d)(6) of the Exchange Act [15 U.S.C. §u(d)(5)], requiring
NextStep Medical, NextStep Holdings, Spectrum, Ilumina, Gina Hernandez, Michael North, Be
Be North, Daniel Jiggetts, and Cortez Trotter to disgorge all of the proceeds of investor funds
they received or from which they benefited, either directly or indirectly.
63. Section 2 of the Consumer Fraud Act, 815 ILCS 505/2, provides, in pertinent part:
Unfair methods of competition and unfair or deceptive acts or
practices, including but not limited to the use or employment of
any deception, fraud, false pretense, false promise,
misrepresentation or the concealment, suppression or omission of
any material fact, with intent that others rely upon the
concealment, suppression or omission ofsuch materialfact, or the
use or employment of any practice described in Section 2 of the
Uniform Deceptive Trade Practices Act, approved August 5, 1965,
in the conduct of any trade or commerce are hereby declared
unlawful whether any person has in fact been misled, deceived or
damaged thereby. In construing this section consideration shall be
given to the interpretations of the Federal Trade Commission and
the federal courts relating to Section
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