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Florida companies face SEC probe (CARNES)

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South Florida Business Journal - September 25, 2009 /southflorida/stories/2009/09/21/daily69.html Business News - Local News Friday, September 25, 2009, 12:10pm EDT | Modified: Friday, September 25, 2009, 5:43pm Florida companies face SEC probe South Florida Business Journal - by Paul Brinkmann The Securities and Exchange Commission is cracking down on a network of businesses that allegedly reaped about $7 million from illegal, unregistered stock sales. In a complaint filed Thursday in federal court in Orlando, the SEC names three businessmen and three companies that operated in Florida and Indiana that allegedly sold unregistered stocks in what is called a wraparound agreement. The defendants allegedly bought debt owed to officers at three other companies, converted the debt to stock ownership in those companies, and sold it at large profits in the form of unregistered securities. One of the issuer companies, which are not named as defendants, is Weston-based Cross Atlantic Commodities, which purports to develop “life enhancement products,” including a product called Re Juv by Caci, an anti-aging cream. The company was formerly known as Business Advantages 17. Cross Atlantic is registered in Nevada. The chairman and CEO of Cross Atlantic is Jorge Bravo, 46, of Weston, and the secretary is Jesse Starkman, also of Weston. According to the suit, K&L International Enterprises, a Florida corporation based in Casselberry, northeast of downtown Orlando, paid Cross Atlantic about $226,704 and received 1.4 billion shares of its stock. Within six weeks, K&L resold those shares. The suit also alleges that Signature Worldwide, a Minnesota company with a mailing address in Casselberry, paid Cross Atlantic about $31,210, and received 74 million shares of its stock. Combined, the sales of shares equaled about 37 percent of Cross Atlantic’s publicly available shares. The suit seeks disgorgement of ill-gotten gains, civil penalties and an order barring defendants from participating in penny stock offerings. Attempts to reach Cross Atlantic for more information about the case were not immediately successful. Paul Montoya, an attorney and assistant director in the Chicago office of the SEC, said the investigation into the stock sales is ongoing. “In cases like this, there’s varying degrees of involvement. Sometimes, stock distributors are in charge and selling out shares without the issuer’s knowledge. Then, there are other cases where the issuers are involved,” he said. “When, or if, we determine there’s evidence the issuers violated the law, we would take action against them as well.” Other defendants are: * Signature Leisure, a Colorado corporation with its main office in Casselberry. * Enzyme Environmental Solutions, a Nevada corporation located in Fort Wayne, Ind., purporting to produce enzyme-based products for cleaning and dietary supplements. * Stephen Carnes, 45, of Apopka, president of Signature Leisure and managing member of Signature Worldwide. * Lawrence Powalisz, 45, of Winter Park, sole officer of K&L. * Jared Hochstedler, 33, of Fort Wayne, Ind. California attorney Irving Einhorn represents K&L International, the Signature companies, Powalisz and Carnes. He pointed out that the SEC is merely alleging registration violations, not fraud. “We’re going to try and work something out. The judge entered a temporary restraining order,” Einhorn said. “My clients are considering their options and will respond in the course of time.” Besides Weston-based Cross Atlantic, the issuer companies named in the suit are: * International Power Group, a Delaware corporation located in Celebration which purports to operate a “waste to energy” business. * Revenge Designs, a Nevada corporation located in Decatur, Ind., purporting to develop modification packages for cars. Click here to read the SEC complaint.
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#102  Sticky Note NO PERSONAL ATTACKS: You guys are welcome to Stock 09/28/09 10:56:06 AM
#560   U.S. aviation safety board says FAA can enforce scion 11/18/14 11:36:08 AM
#559   AT&T Drops 'Super Cookies' From Cellphone Data scion 11/18/14 10:52:38 AM
#558   Any update on how the Jared Hochstedler case Rawnoc 08/20/12 04:10:37 PM
#557   LOLOL kennypooh 06/23/12 10:14:41 PM
#556   HE sure had some bad henzime maronti1 06/20/12 08:49:19 PM
#555   Man Charged in Money Laundering Scheme to Stand scion 06/20/12 07:01:29 PM
#553 SammyTheBull 05/01/12 09:24:25 AM
#552   How gratifying. Some people never learn. janice shell 04/28/12 01:48:42 PM
#551   Prosecutors also charged Florida-resident Stephen W. Carnes, 48, scion 04/28/12 12:06:46 PM
#550   Raid results in gambling charges MorningLightMountain 04/28/12 11:49:18 AM
#549   I do but not sure when. SammyTheBull 02/15/11 08:47:23 AM
#548   If LGBS makes another run to .01 its doebop 02/15/11 12:57:25 AM
#547   is Steve Carnes been restricted to run his maronti1 02/09/11 05:29:19 AM
#546   more scam? maronti1 01/16/11 09:18:24 AM
#545   GRDO.....MONKDREAM (Steven puppy)was not to long ago.....was on maronti1 01/06/11 10:36:14 AM
#544   I'd like to know the same. Ironically, I SammyTheBull 01/06/11 09:09:12 AM
#543   Hochstedler consented to the entry of a judgment janice shell 01/03/11 10:33:35 PM
#541   Defendants Ordered to Pay Millions in Penny Stock Case maronti1 12/31/10 12:59:18 PM
#540   were is all this money going? maronti1 12/23/10 05:38:25 AM
#539   Pacer update 22 Dec 10 FOR CASE #: scion 12/22/10 04:19:24 PM
#538   12/17/2010 74 CONSENT JUDGMENT as to Enzyme Environmental scion 12/17/10 03:52:07 PM
#537   Pacer update 17 Dec 10 FOR CASE #: scion 12/17/10 03:47:23 PM
#536   12/16/2010 72 Unopposed MOTION for Final judgment as scion 12/16/10 06:28:06 PM
#535   Pacer update 16 Dec 10 FOR CASE #: scion 12/16/10 06:25:35 PM
#534   Pacer update 01 Dec 10 FOR CASE #: scion 12/02/10 09:25:21 AM
#533   11/18/2010 70 ORDER granting in part 69 Motion scion 11/22/10 04:21:44 PM
#532   Pacer update 18 Nov 10 FOR CASE #: scion 11/22/10 04:20:40 PM
#531   11/17/2010 69 Joint MOTION for reconsideration of Order scion 11/17/10 04:32:11 PM
#530   Pacer update 17 Nov 10 FOR CASE #: scion 11/17/10 04:27:01 PM
#529   Pacer update 16 Nov 10 FOR CASE #: scion 11/16/10 06:56:14 PM
#528   Pacer update 15 Nov 10 FOR CASE #: scion 11/15/10 04:30:03 PM
#527   Pacer update 01 Oct 10 FOR CASE #: scion 11/02/10 01:20:14 PM
#526   Keep up the good work CashCowMoo 10/21/10 04:21:32 AM
#525   09/27/2010 65 Unopposed MOTION for extension of time scion 09/27/10 03:44:23 PM
#524   Pacer update 27 Sep 10 FOR CASE #: scion 09/27/10 03:40:49 PM
#523   09/15/2010 63 Joint MOTION to extend time to scion 09/23/10 07:17:50 PM
#522   Pacer update 16 Sep 10 FOR CASE #: scion 09/23/10 07:13:56 PM
#521   Well, this sure is a lot more money Mojocash 09/06/10 10:33:18 PM
#520   that is kind of a crock.. i had frankie_fillet 09/03/10 02:58:37 PM
#519   Thanks! Mojocash 09/02/10 10:46:53 PM
#518 kennypooh 09/02/10 10:38:25 PM
#517   Who gets the money? Are shareholders during that Mojocash 09/02/10 10:35:17 PM
#516   I will read all those later, but I Stock 09/02/10 02:21:49 PM
#515   EESO’s Third Wrap Agreement with K&L and Second scion 09/02/10 01:19:28 PM
#514   Buckwheat Holdings? Stock 09/02/10 09:52:22 AM
#513   09/02/2010 62 MILBURN ORDER re 61 MOTION for scion 09/02/10 09:46:21 AM
#512   09/01/2010 61 MOTION for summary judgment against Defendants scion 09/02/10 09:41:28 AM
#511   Pacer update 02 Sep 10 FOR CASE #: scion 09/02/10 09:34:25 AM
#510   09/24/2009 1 COMPLAINT against all defendants filed by scion 08/26/10 10:19:07 AM