Florida companies face SEC probe (CARNES)

[I Like Bottom Fishing]

SGLS News -- ENFORCEMENT PROCEEDINGS - SEC Obtains Judgments Against Stock Distributors Stephen Carnes, Lawrence Powalisz and Their Companies.

Wednesday, August 25, 2010 7:32 PM

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News for 'SGLS' - (ENFORCEMENT PROCEEDINGS - SEC Obtains Judgments Against Stock Distributors Stephen Carnes, Lawrence Powalisz and Their Companies)

Aug 25, 2010 (SECURITIES AND EXCHANGE COMMISSION RELEASE/ContentWorks via
COMTEX) -- The Securities and Exchange Commission announced today that on May 17
and August 17, the Honorable Gregory A. Presnell of the United States District
Court for the Middle District of Florida entered Final Judgments against Stephen
W. Carnes, Lawrence A. Powalisz, and their companies K&L International
Enterprises, Inc., Signature Leisure, Inc., and Signature Worldwide Advisors,
LLC. The Commission's complaint alleged that the defendants engaged in a scheme
to evade the registration provisions of the federal securities laws by selling
billions of shares of stock issued by microcap companies to the investing public
without adhering to the registration requirements of Section 5 of the Securities
Act of 1933. The defendants consented to entry of the Final Judgments without
admitting or denying the allegations in the complaint.

The Final Judgments permanently enjoin the defendants from violating Sections
5(a) and (c) of the Securities Act, bar them for three years from participating
in an offering of penny stock under Section 20(g) of the Securities Act, and
require them pay in installments within one year disgorgement, prejudgment
interest, and civil penalties. Carnes agreed to pay disgorgement of $818,261,
plus prejudgment interest, of which $716,904 is payable jointly and severally
with Worldwide Advisors, and a civil penalty of $100,000. Worldwide Advisors
agreed to pay disgorgement of $716,904, plus prejudgment interest, jointly and
severally with Carnes, plus a civil penalty of $50,000. Signature Leisure agreed
to pay disgorgement of $900,162, plus prejudgment interest, and a civil penalty
of $50,000. Powalisz agreed to pay disgorgement of $3,748,563, plus prejudgment
interest, jointly and severally with K&L International, and a civil penalty of
$150,000. K&L International agreed to pay disgorgement of $6,242,049, plus
prejudgment interest, of which $3,748,563 is payable jointly and severally with
Powalisz, and a civil penalty of $150,000.

The Commission's case against the two remaining defendants, Jared E.
Hochstedler, and his company, Enzyme Environmental Solutions, Inc., is still
pending. [SEC v. K&L International Enterprises, Inc., et al., Case No.
6:09-cv-1638-Orl-31KRS (M.D. Fla.)] (LR-21632)

Copyright (C) 2010 Federal Information & News Dispatch, Inc.

-0-

Source: Comtex Wall Street News

[scion]

10/30/2009 29 ANSWER to 1 Complaint by Jared E. Hochstedler.(Greene, Charles) (Entered: 10/30/2009)

Doc 29 PDF file
http://viewer.zoho.com/docs/haW4Y

10/30/2009 28 ANSWER to 1 Complaint by Enzyme Enviromental Solutions, Inc..(Greene, Charles) (Entered: 10/30/2009)

Doc 28 PDF file
http://viewer.zoho.com/docs/xaY32

[scion]

CIVIL DOCKET FOR CASE #: 6:09-cv-01638-GAP-KRS

U.S. District Court
Middle District of Florida (Orlando)

CIVIL DOCKET FOR CASE #: 6:09-cv-01638-GAP-KRS

United States Securities and Exchange Commission v. K & L International Enterprises, Inc. et al

Assigned to: Judge Gregory A. Presnell
Referred to: Magistrate Judge Karla R. Spaulding
Cause: 15:0077 Securities Fraud
Date Filed: 09/24/2009
Jury Demand: Both
Nature of Suit: 850 Securities/Commodities
Jurisdiction: U.S. Government Plaintiff

Plaintiff
United States Securities and Exchange Commission

Defendant: K & L International Enterprises, Inc.

Defendant: Signature Leisure, Inc.

Defendant: Signature Worldwide Advisors, LLC

Defendant: Stephen W. Carnes

Defendant: Lawrence A. Powalisz

Defendant: Enzyme Enviromental Solutions, Inc.

Defendant: Jared E. Hochstedler

https://ecf.flmd.uscourts.gov/cgi-bin/iquery.pl

Date Filed # Docket Text

08/20/2010 INSTALLMENT PAYMENT made by K & L International Enterprises, Inc. and Lawrence A. Powalisz per 59 & 60 Judgments. (Amount: $300,000.00; receipt number: 35865) (MAA) (Entered: 08/20/2010)

08/18/2010 60 CONSENT JUDGMENT on behalf of SEC against Defendant K&L International Enterprises, Inc. Signed by Judge Gregory A. Presnell on 8/18/2010. (TKW) (Entered: 08/18/2010)

08/18/2010 59 CONSENT JUDGMENT on behalf of SEC against Defendant Lawrence A. Powalisz. Signed by Judge Gregory A. Presnell on 8/18/2010. (TKW) (Entered: 08/18/2010)

08/18/2010 58 ORDER granting 57 Motion to Approve Consent Judgments; judgments will be entered separately. Signed by Judge Gregory A. Presnell on 8/18/2010. (TKW) (Entered: 08/18/2010)

08/17/2010 57 MOTION to Approve Consent Judgment as to Defendants K&L International Enterprises, Inc. and Lawrence A. Powalisz by United States Securities and Exchange Commission. (Attachments: # 1 K&L International Enterprises, Inc.'s Consent with Proposed Final Judgment, # 2 Lawrence A. Powalisz's Consent with Proposed Final Judgment)(Nelson, Margaret) (Entered: 08/17/2010)

08/11/2010 PAYMENT by Stephen W. Carnes of $635.59 receipt number 035763 for post judgment interest on previous installment paid 8/3/10. (LAK) (Entered: 08/11/2010)

08/03/2010 PAYMENT of behalf of Stephen W. Carnes for $186,000.00 receipt number 035637) (LAK) (Entered: 08/04/2010)
07/07/2010 56 ORDER denying without prejudice 55 Agreed Motion for Extension to Discovery Deadline. Signed by Magistrate Judge Karla R. Spaulding on 7/7/2010. (ECJ) (Entered: 07/07/2010)

07/07/2010 55 Unopposed MOTION for extension of time until 10/1/10 to complete discovery by United States Securities and Exchange Commission. (Polish, Jonathan) Motions referred to Magistrate Judge Karla R. Spaulding. Modified on 7/8/2010 (JET). (Entered: 07/07/2010)

05/28/2010 54 ORDER directing the clerk to terminate Defendants Signature Worldwide Advisors, LLC, Stephen W. Carnes and Signature Leisure, Inc. re 53 Order on motion for judgment. Signed by Judge Gregory A. Presnell on 5/27/2010. (LAM) (Entered: 05/28/2010)

05/19/2010 PAYMENT on behalf of Stephen W. Carnes for $200,000.00 receipt number 034878 (LAK) (Entered: 05/20/2010)

05/17/2010 53 FINAL JUDGMENTS. ORDER granting 52 Motion for entry of judgment. Signed by Judge Gregory A. Presnell on 5/14/2010. (Attachments: # 1 Carnes judgment, # 2 Signature Worldwide judgment, # 3 Signature Leisure judgment) (ED) Modified on 8/3/2010 (LAK). (Entered: 05/17/2010)

05/12/2010 52 MOTION for Final judgment as to Defendants Stephen W. Carnes, Signature Worldwide Advisors, LLC and Signature Leisure Inc. by United States Securities and Exchange Commission. (Polish, Jonathan) (Entered: 05/12/2010)

03/24/2010 51 RESPONSE TO ORDER TO SHOW CAUSE re 48 Order to show cause filed by United States Securities and Exchange Commission. (Polish, Jonathan) (Entered: 03/24/2010)

03/13/2010 50 ANSWER and affirmative defenses to 1 Complaint with Jury Demand by K & L International Enterprises, Inc.(Slaughter, Harrison) Modified on 3/15/2010 (LAK). (Entered: 03/13/2010)

03/13/2010 49 ANSWER and affirmative defenses to 1 Complaint with Jury Demand by Lawrence A. Powalisz.(Slaughter, Harrison) Modified on 3/15/2010 (LAK). (Entered: 03/13/2010)

03/10/2010 48 ORDER TO SHOW CAUSE as to United States Securities and Exchange Commission as to why defendants K & L Enterprises Inc. and Lawrence A. Powalisz should not be dismissed for failure to prosecute (no responsive pleading filed) pursuant to FRCP 55(a). Response due within 14 days Signed by Judge Gregory A. Presnell on 3/10/2010. (counsel mailed/emailed)(AKJ) (Entered: 03/10/2010)

01/21/2010 47 ORDER striking 42 Motion for disclosure filed by Lawrence A. Powalisz, 44 Motion for disclosure filed by Signature Leisure, Inc., 46 Motion for disclosure filed by Signature Worldwide Advisors, LLC, 45 Motion for disclosure filed by Signature Leisure, Inc., 41 Motion for disclosure filed by Stephen W. Carnes, 43 Motion for disclosure filed by K & L International Enterprises, Inc. Signed by Magistrate Judge Karla R. Spaulding on 1/19/2010. (ECJ) (Entered: 01/21/2010)

01/19/2010 46 (stricken per order #47) MOTION for disclosure Rule 26(a)(1) Initial Disclosures by Signature Worldwide Advisors, LLC. (Slaughter, Harrison) Motions referred to Magistrate Judge Karla R. Spaulding. Modified on 1/21/2010 (LAK). (Entered: 01/19/2010)

01/19/2010 45 (stricken per order #47) Amended MOTION for disclosure Rule 26(a)(1) Initial Disclosures by Signature Leisure, Inc. (Slaughter, Harrison) Motions referred to Magistrate Judge Karla R. Spaulding. Modified on 1/21/2010 (LAK). (Entered: 01/19/2010)

01/19/2010 44 (stricken per order #47) MOTION for disclosure Rule 26(a)(1) Initial Disclosures by Signature Leisure, Inc. (Slaughter, Harrison) Motions referred to Magistrate Judge Karla R. Spaulding. Modified on 1/21/2010 (LAK). (Entered: 01/19/2010)

01/19/2010 43 (stricken per order #47) MOTION for disclosure Rule 26(a)(1) Initial Disclosures by K & L International Enterprises, Inc.. (Slaughter, Harrison) Motions referred to Magistrate Judge Karla R. Spaulding. Modified on 1/21/2010 (LAK). (Entered: 01/19/2010)

01/19/2010 42 (stricken per order #47) MOTION for disclosure Rule 26(a)(1) Initial Disclosures by Lawrence A. Powalisz. (Slaughter, Harrison) Motions referred to Magistrate Judge Karla R. Spaulding. Modified on 1/21/2010 (LAK). (Entered: 01/19/2010)

01/19/2010 41 (stricken per order #47) MOTION for disclosure Rule 26(a)(1) Initial Disclosures by Stephen W. Carnes. (Slaughter, Harrison) Motions referred to Magistrate Judge Karla R. Spaulding. Modified on 1/21/2010 (LAK). (Entered: 01/19/2010)

12/10/2009 40 CASE MANAGEMENT AND SCHEDULING ORDER., Signed by Judge Gregory A. Presnell on 12/10/2009. (TKW) (Entered: 12/10/2009)

12/08/2009 39 CASE MANAGEMENT REPORT. (Nelson, Margaret) (Entered: 12/08/2009)

11/30/2009 38 Amended NOTICE of Appearance by Harrison T. Slaughter, Jr on behalf of K & L International Enterprises, Inc., Signature Leisure, Inc., Signature Worldwide Advisors, LLC, Stephen W. Carnes, Lawrence A. Powalisz (Slaughter, Harrison) Modified on 12/1/2009 (LAK). (Entered: 11/30/2009)

11/25/2009 37 NOTICE of co-counsel Appearance by Harrison T. Slaughter, Jr on behalf of K & L International Enterprises, Inc., Signature Leisure, Inc., Jared E. Hochstedler, Signature Worldwide Advisors, LLC, Stephen W. Carnes, Lawrence A. Powalisz, Enzyme Enviromental Solutions, Inc. (Slaughter, Harrison) (Entered: 11/25/2009)

11/25/2009 36 ANSWER and affirmative defenses to 1 Complaint with Jury Demand by Signature Leisure, Inc..(Slaughter, Harrison) (Entered: 11/25/2009)
11/25/2009 35 CERTIFICATE of interested persons and corporate disclosure statement by K & L International Enterprises, Inc., Signature Leisure, Inc., Jared E. Hochstedler, Signature Worldwide Advisors, LLC, Stephen W. Carnes, Lawrence A. Powalisz, Enzyme Enviromental Solutions, Inc.. (Slaughter, Harrison) (Entered: 11/25/2009)

11/25/2009 34 ANSWER and affirmative defenses to 1 Complaint with Jury Demand by Stephen W. Carnes.(Slaughter, Harrison) (Entered: 11/25/2009)
11/25/2009 33 ANSWER and affirmative defenses to 1 Complaint with Jury Demand by Signature Worldwide Advisors, LLC . (Slaughter, Harrison) Modified on 11/27/2009 (LAM). (Entered: 11/25/2009)

11/23/2009 32 ORDER granting 31 Joint Motion to Leave to Conduct Case Management Conference by Telephone. Signed by Magistrate Judge Karla R. Spaulding on 11/19/2009. (ECJ) (Entered: 11/23/2009)

11/19/2009 31 Joint MOTION to Appear Telephonically to Conduct Case Management Conference by all parties. (Nelson, Margaret) Motions referred to Magistrate Judge Karla R. Spaulding. (Entered: 11/19/2009)

11/06/2009 30 ORDER denying 27 Motion to Approve Consent Judgment. Signed by Judge Gregory A. Presnell on 11/6/2009. (ED) (Entered: 11/06/2009)

10/30/2009 29 ANSWER to 1 Complaint by Jared E. Hochstedler.(Greene, Charles) (Entered: 10/30/2009)

10/30/2009 28 ANSWER to 1 Complaint by Enzyme Enviromental Solutions, Inc..(Greene, Charles) (Entered: 10/30/2009)

10/28/2009 27 MOTION to Approve Consent Judgment of Defendants K&L International Enterprises, Inc., Signature Leisure, Inc., Signature Worldwide Advisors, LLC, Stephen Carnes and Lawrence Powalisz and Request for Entry of Judgments of Permanent Injunction by United States Securities and Exchange Commission. (Attachments: # 1 Exhibit 1 - K&L Consent, # 2 Exhibit 2 -- Signature Leisure Consent, # 3 Exhibit 3 - Signature Worldwide Consent, # 4 Exhibit 4 - Carnes Consent, # 5 Exhibit 5 - Powalisz Consent)(Nelson, Margaret) (Entered: 10/28/2009)

10/26/2009 26 CERTIFICATE of interested persons and corporate disclosure statement re 20 Interested persons order by Jared E. Hochstedler, Enzyme Enviromental Solutions, Inc.. (Greene, Charles) (Entered: 10/26/2009)

10/22/2009 25 NOTICE of pendency of related cases re 8 Related case order and notice of designation of track 2 per Local Rule 1.04(d) by Jared E. Hochstedler, Enzyme Enviromental Solutions, Inc.. Related case(s): No (Greene, Charles) (Entered: 10/22/2009)

10/21/2009 24 ORDER granting 23 Renewed Motion and Consent of Local Counsel for the Pro Hace Vice Admission of Daniel Bobilya as Co-Counsel for Defendants Enzyme Environmental Solutions, Inc. and Jared E. Hochestedler. Signed by Magistrate Judge Karla R. Spaulding on 10/20/2009. (ECJ) (Entered: 10/21/2009)

10/20/2009 23 Renewed MOTION for Daniel Bobilya to appear pro hac vice by Jared E. Hochstedler and Enzyme Enviromental Solutions, Inc. (Attachments: # 1 Special Admission Attorney Certification)(Greene, Charles) Motions referred to Magistrate Judge Karla R. Spaulding. Modified on 10/21/2009 (JET). (Entered: 10/20/2009)

10/19/2009 22 ORDER denying without prejudice 21 Motion and Consent of Local Counsel for the Pro Hac Vice Admission of Daniel Bobilya as Co-Counsel for Defendants Enzymes Environment Solutions, Inc. and Jared E. Hochstedler. Signed by Magistrate Judge Karla R. Spaulding on 10/19/2009. (ECJ) (Entered: 10/19/2009)

10/13/2009 21 MOTION for Daniel Bobilya to appear pro hac vice by Jared E. Hochstedler, Enzyme Enviromental Solutions, Inc.. (Attachments: # 1 Special Admission Attorney Certification)(Greene, Charles) Motions referred to Magistrate Judge Karla R. Spaulding. (Entered: 10/13/2009)

10/13/2009 20 INTERESTED PERSONS ORDER for Defendants Enzyme Environmental Solutions Inc and Jared E. Hochstedler. Certificate of interested persons and corporate disclosure statement due by 10/26/2009 Signed by Judge Gregory A. Presnell on 10/13/2009. (Counsel emailed/mailed)(AKJ) (Entered: 10/13/2009)

10/09/2009 19 NOTICE of Appearance by Charles M. Greene on behalf of Jared E. Hochstedler, Enzyme Enviromental Solutions, Inc. (Greene, Charles) (Entered: 10/09/2009)

10/02/2009 18 CERTIFICATE of interested persons and corporate disclosure statement re 9 Interested persons order by United States Securities and Exchange Commission. (Nelson, Margaret) (Entered: 10/02/2009)

10/02/2009 17 NOTICE of pendency of related cases re 8 Related case order and notice of designation of track 2 per Local Rule 1.04(d) by United States Securities and Exchange Commission. Related case(s): no (Nelson, Margaret) (Entered: 10/02/2009)

09/29/2009 16 NOTICE canceling Preliminary Injunction and Temporary restraining Order hearing scheduled for September 30, 2009 @ 1 p.m. (AKJ) (Entered: 09/29/2009)

09/29/2009 15 ENDORSED ORDER denying as moot 2 Motion for preliminary injunction due to entry of 14 consent injunctions. Signed by Judge Gregory A. Presnell on 9/29/2009. (ED) (Entered: 09/29/2009)

09/29/2009 14 ORDER granting 13 Motion for preliminary injunction. Signed by Judge Gregory A. Presnell on 9/29/2009. (Attachments: # 1 Carnes Injunction, # 2 K&L Injunction, # 3 Powalisz Injunction, # 4 Signature Leisure Injunction, # 5 Signature Worldwide Injunction, # 6 Enzyme Defendants Injunction) (ED) (Entered: 09/29/2009)

09/28/2009 13 MOTION for preliminary injunction by Consent of Defendants K&L International Enterprises, Inc., Signature Leisure, Inc., Signature Worldwide Advisors, LLC, Stephen W. Carnes, Lawrence A. Powalisz, Enzyme Environmental Solutions, Inc. and Jared E. Hochstedler by United States Securities and Exchange Commission. (Attachments: # 1 Exhibit 1 - K&L Consent, # 2 Exhibit 2 - Signature Leisure Consent, # 3 Exhibit 3 - Signature Worldwide Consent, # 4 Exhibit 4 - Carnes Consent, # 5 Exhibit 5 - Powalisz Consent, # 6 Exhibit 6 - Enzyme Environmental Consent, # 7 Exhibit 7 - Hochstedler Consent, # 8 Certificate of Service)(Nelson, Margaret) (Entered: 09/28/2009)

09/25/2009 12 CERTIFICATE OF SERVICE by United States Securities and Exchange Commission of Temporary Restraining Order (Nelson, Margaret) (Entered: 09/25/2009)

09/25/2009 11 NOTICE of Hearing on Motion 2 MOTION for temporary restraining order MOTION for preliminary injunction : Motion Hearing set for 9/30/2009 at 01:00 PM in Orlando Courtroom 5 A before Judge Gregory A. Presnell. (TKW) (Entered: 09/25/2009)

09/25/2009 10 ORDER granting in part and denying in part 2 Motion for temporary restraining order; ruling deferred as to 2 Motion for preliminary injunction; hearing regarding preliminary injunction to be held Wednesday, September 30, 2009 at 1 p.m. Signed by Judge Gregory A. Presnell on 9/25/2009. (ED) (Entered: 09/25/2009)

09/24/2009 9 INTERESTED PERSONS ORDER for Plaintiff. Certificate of interested persons and corporate disclosure statement due by 10/5/2009 Signed by Judge Gregory A. Presnell on 9/24/2009. (counsel emailed)(AKJ) (Entered: 09/24/2009)

09/24/2009 8 RELATED CASE ORDER AND NOTICE of designation under Local Rule 3.05 - track 2. Notice of pendency of other actions due by 10/5/2009 signed by Judge Gregory A. Presnell on 9/24/2009. (counsel mailed/emailed)(AKJ) (Entered: 09/24/2009)

09/24/2009 7 CERTIFICATE OF SERVICE by United States Securities and Exchange Commission (LAK) (Entered: 09/24/2009)

09/24/2009 6 NOTICE of Appearance by Margaret Gembala Nelson on behalf of United States Securities and Exchange Commission (LAK) (Entered: 09/24/2009)

09/24/2009 5 NOTICE of Appearance by Thomas J. Meier by United States Securities and Exchange Commission (LAK) (Entered: 09/24/2009)

09/24/2009 4 NOTICE of Appearance by Jonathan Stephen Polish on behalf of United States Securities and Exchange Commission (LAK) (Entered: 09/24/2009)

09/24/2009 3 DECLARATION of Norman H. Jones in support of 1 Complaint, 2 MOTION by United States Securities and Exchange Commission. (2 volumes of exhibits supporting the declaration are in hard copy on the shelf) (LAK) (Entered: 09/24/2009)

09/24/2009 2 MOTION for temporary restraining order, MOTION for preliminary injunction by United States Securities and Exchange Commission. (Attachments: # 1 Exhibits in support)(LAK) (Entered: 09/24/2009)

09/24/2009 1 COMPLAINT against all defendants filed by United States Securities and Exchange Commission. (Attachments: # 1 Civil Cover Sheet)(LAK) (Entered: 09/24/2009)

https://ecf.flmd.uscourts.gov/cgi-bin/iquery.pl

[scion]

SEC OBTAINS JUDGMENTS AGAINST STOCK DISTRIBUTORS STEPHEN CARNES, LAWRENCE POWALISZ AND THEIR COMPANIES

Litigation Release No. 21632 / August 25, 2010

Securities and Exchange Commission v. K&L International Enterprises, Inc., et al., Case No. 6:09-cv-1638-Orl-31KRS (M.D. Fla.)

SEC OBTAINS JUDGMENTS AGAINST STOCK DISTRIBUTORS STEPHEN CARNES, LAWRENCE POWALISZ AND THEIR COMPANIES

The Securities and Exchange Commission announced today that on May 17 and August 17, the Honorable Gregory A. Presnell of the United States District Court for the Middle District of Florida entered Final Judgments against Stephen W. Carnes, Lawrence A. Powalisz, and their companies K&L International Enterprises, Inc., Signature Leisure, Inc., and Signature Worldwide Advisors, LLC. The Commission's complaint alleged that the defendants engaged in a scheme to evade the registration provisions of the federal securities laws by selling billions of shares of stock issued by microcap companies to the investing public without adhering to the registration requirements of Section 5 of the Securities Act of 1933. The defendants consented to entry of the Final Judgments without admitting or denying the allegations in the complaint.

The Final Judgments permanently enjoin the defendants from violating Sections 5(a) and (c) of the Securities Act, bar them for three years from participating in an offering of penny stock under Section 20(g) of the Securities Act, and require them to pay in installments within one year disgorgement, prejudgment interest, and civil penalties. Carnes agreed to pay disgorgement of $818,261, plus prejudgment interest, of which $716,904 is payable jointly and severally with Worldwide Advisors, and a civil penalty of $100,000. Worldwide Advisors agreed to pay disgorgement of $716,904, plus prejudgment interest, jointly and severally with Carnes, plus a civil penalty of $50,000. Signature Leisure agreed to pay disgorgement of $900,162, plus prejudgment interest, and a civil penalty of $50,000. Powalisz agreed to pay disgorgement of $3,748,563, plus prejudgment interest, jointly and severally with K&L International, and a civil penalty of $150,000. K&L International agreed to pay disgorgement of $6,242,049, plus prejudgment interest, of which $3,748,563 is payable jointly and severally with Powalisz, and a civil penalty of $150,000.

The Commission's case against the two remaining defendants, Jared E. Hochstedler, and his company, Enzyme Environmental Solutions, Inc., is still pending.

For additional information, see Litigation Release Nos. 21231 (September 30, 2009)
http://www.sec.gov/litigation/litreleases/2009/lr21231.htm

and 21224 (September 28, 2009)
http://www.sec.gov/litigation/litreleases/2009/lr21224.htm



http://www.sec.gov/litigation/litreleases/2010/lr21632.htm

[scion]

Pacer update 20 Aug 10 FOR CASE #: 6:09-cv-01638-GAP-KRS SEC v. K & L International Enterprises, Inc. et al

Date Filed # Docket Text

08/20/2010 INSTALLMENT PAYMENT made by K & L International Enterprises, Inc. and Lawrence A. Powalisz per 59 & 60 Judgments. (Amount: $300,000.00; receipt number: 35865) (MAA) (Entered: 08/20/2010)


Defendant: K & L International Enterprises, Inc.

Defendant: Signature Leisure, Inc.

Defendant: Signature Worldwide Advisors, LLC

Defendant: Stephen W. Carnes

Defendant: Lawrence A. Powalisz

Defendant: Enzyme Enviromental Solutions, Inc.

Defendant: Jared E. Hochstedler

https://ecf.flmd.uscourts.gov/cgi-bin/iquery.pl

[MorningLightMountain]

wow, look at the disgorgements......wonder what they will hit Jared up with????......

[scion]

08/18/2010 60 CONSENT JUDGMENT on behalf of SEC against Defendant K&L International Enterprises, Inc. Signed by Judge Gregory A. Presnell on 8/18/2010. (TKW) (Entered: 08/18/2010)

Doc 60 PDF file
http://viewer.zoho.com/docs/qJ0bP


FINAL JUDGMENT AS TO DEFENDANT K&L INTERNATIONAL ENTERPRISES, INC.

The Securities and Exchange Commission having filed a Complaint and Defendant K&L International Enterprises, Inc. having entered a general appearance; consented to the Court’s jurisdiction over Defendant and the subject matter of this action; consented to entry of this Final Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment:

I.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant's agents, servants, employees, attorneys, and all persons in active concert or participation with them who receive actual notice of this Final Judgment by personal service or otherwise are permanently restrained and enjoined from violating Section 5 of the Securities Act of 1933 [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any applicable exemption:

(a) Unless a registration statement is in effect as to a security, making use of any means or instruments of transportation or communication in interstate commerce or of the mails to sell such security through the use or medium of any prospectus or otherwise;

(b) Unless a registration statement is in effect as to a security, carrying or causing to be carried through the mails or in interstate commerce, by any means or instruments of transportation, any such security for the purpose of sale or for delivery after sale; or

(c) Making use of any means or instruments of transportation or communication in interstate commerce or of the mails to offer to sell or offer to buy through the use or medium of any prospectus or otherwise any security, unless a registration statement has been filed with the Commission as to such security, or while the registration statement is the subject of a refusal order or stop order or (prior to the effective date of the registration statement) any public proceeding or examination under Section 8 of the Securities Act [15 U.S.C. § 77h].

II.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is barred for three years from the date of this Order from participating in an offering of penny stock, including engaging in activities with a broker, dealer, or issuer for purposes of issuing, trading, or inducing or attempting to induce the purchase or sale of any penny stock. A penny stock is any equity security that has a price of less than five dollars, except as provided in Rule 3a51-1 under the Exchange Act [17 C.F.R. 240.3a51-1].

III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement of $6,242,049.00, representing profits gained as a result of the conduct alleged in the Complaint, of which $3,748,563.00 shall be payable jointly and severally with Defendant Lawrence A. Powalisz (“Powalisz”), together with prejudgment interest thereon in the amount of $327,900.00, of which $196,915.00 shall be payable jointly and severally with Defendant Powalisz, and a civil penalty in the amount of $150,000.00 pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)]. Defendant shall satisfy this obligation by paying $6,719,949.00 pursuant to the terms of the payment schedule set forth in paragraph IV below after entry of this Final Judgment to the Clerk of this Court, together with a cover letter identifying K&L International Enterprises, Inc. as a defendant in this action; setting forth the title and civil action number of this action and the name of this Court; and specifying that payment is made pursuant to this Final Judgment. Defendant shall simultaneously transmit photocopies of such payment and letter to the Commission’s counsel in this action. By making this payment, Defendant relinquishes all legal and equitable right, title, and interest in such funds, and no part of the funds shall be returned to Defendant. Defendant shall pay postjudgment interest on any delinquent amounts pursuant to 28 USC § 1961.

The Clerk shall deposit the funds into an interest bearing account with the Court Registry Investment System ("CRIS") or any other type of interest bearing account that is utilized by the Court. These funds, together with any interest and income earned thereon (collectively, the “Fund”), shall be held in the interest bearing account until further order of the Court. In accordance with 28 U.S.C. § 1914 and the guidelines set by the Director of the Administrative Office of the United States Courts, the Clerk is directed, without further order of this Court, to deduct from the income earned on the money in the Fund a fee equal to ten percent of the income earned on the Fund. Such fee shall not exceed that authorized by the Judicial Conference of the United States.

The Commission may by motion propose a plan to distribute the Fund subject to the Court’s approval. Such a plan may provide that the Fund shall be distributed pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002. Regardless of whether any such Fair Fund distribution is made, amounts ordered to be paid as civil penalties pursuant to this Judgment shall be treated as penalties paid to the government for all purposes, including all tax purposes. To preserve the deterrent effect of the civil penalty, Defendant shall not, after offset or reduction of any award of compensatory damages in any Related Investor Action based on Defendant’s payment of disgorgement in this action, argue that he is entitled to, nor shall he further benefit by, offset or reduction of such compensatory damages award by the amount of any part of Defendant’s payment of a civil penalty in this action ("Penalty Offset"). If the court in any Related Investor Action grants such a Penalty Offset, Defendant shall, within 30 days after entry of a final order granting the Penalty Offset, notify the Commission's counsel in this action and pay the amount of the Penalty Offset to the United States Treasury or to a Fair Fund, as the Commission directs. Such a payment shall not be deemed an additional civil penalty and shall not be deemed to change the amount of the civil penalty imposed in this Judgment. For purposes of this paragraph, a "Related Investor Action" means a private damages action brought against Defendant by or on behalf of one or more investors based on substantially the same facts as alleged in the Complaint in this action.

IV.
IT IS FURTHER ORDERED that Defendant K&L International Enterprises, Inc. shall pay $6,719,949.00 in three installments according to the following schedule: (1) $300,000.00, within 14 days of entry of this Final Judgment; (2) $500,000.00 within 180 days of entry of this Final Judgment, plus post-judgment interest pursuant to 28 U.S.C. § 1961; and (3) $5,919,949.00 within 360 days of entry of this Final Judgment, plus post-judgment interest pursuant to 28 U.S.C. § 1961. If Defendant fails to make any payment by the date agreed and/or in the amount agreed according to the schedule set forth above, all outstanding payments under this Final Judgment, including post-judgment interest, minus any payments made, shall become due and payable immediately without further application to the Court. When calculating the instalment payments, the parties shall deduct any payments made by Defendant Powalisz, up to $3,945,478.00, plus applicable post-judgment interest, from the amounts that Defendant K&L International Enterprises, Inc. has been ordered to pay.

V.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is incorporated herein with the same force and effect as if fully set forth herein, and that Defendant shall comply with all of the undertakings and agreements set forth therein.

VI.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment.

VII.
There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice.

DONE and ORDERED in Chambers, in Orlando, Florida this 18th day of August, 2010.

[scion]

08/18/2010 59 CONSENT JUDGMENT on behalf of SEC against Defendant Lawrence A. Powalisz. Signed by Judge Gregory A. Presnell on 8/18/2010. (TKW) (Entered: 08/18/2010)

Doc 59 PDF file
http://viewer.zoho.com/docs/pJ2Mj

No. 6:09-cv-01638-GAP-KRS

FINAL JUDGMENT AS TO DEFENDANT LAWRENCE A. POWALISZ

The Securities and Exchange Commission having filed a Complaint and Defendant Lawrence A. Powalisz having entered a general appearance; consented to the Court’s jurisdiction over Defendant and the subject matter of this action; consented to entry of this Final Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment:

I.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant's agents, servants, employees, attorneys, and all persons in active concert or participation with them who receive actual notice of this Final Judgment by personal service or otherwise are permanently restrained and enjoined from violating Section 5 of the Securities Act of 1933 [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any applicable exemption:

(a) Unless a registration statement is in effect as to a security, making use of any means or instruments of transportation or communication in interstate commerce or of the mails to sell such security through the use or medium of any prospectus or otherwise;

(b) Unless a registration statement is in effect as to a security, carrying or causing to be carried through the mails or in interstate commerce, by any means or instruments of transportation, any such security for the purpose of sale or for delivery after sale; or

(c) Making use of any means or instruments of transportation or communication in interstate commerce or of the mails to offer to sell or offer to buy through the use or medium of any prospectus or otherwise any security, unless a registration statement has been filed with the Commission as to such security, or while the registration statement is the subject of a refusal order or stop order or (prior to the effective date of the registration statement) any public proceeding or examination under Section 8 of the Securities Act [15 U.S.C. § 77h].

II.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is barred for three years from the date of this Order from participating in an offering of penny stock, including engaging in activities with a broker, dealer, or issuer for purposes of issuing, trading, or inducing or attempting toinduce the purchase or sale of any penny stock. A penny stock is any equity security that has a price of less than five dollars, except as provided in Rule 3a51-1 under the Exchange Act [17 C.F.R. 240.3a51-1].

III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement of $3,748,563.00, representing profits gained as a result of the conduct alleged in the Complaint, which shall be payable jointly and severally with Defendant K&L International Enterprises, Inc. (“K&L”), together with prejudgment interest thereon in the amount of $196,915.00, which shall be payable jointly and severally with Defendant K&L, and a civil penalty in the amount of $150,000.00 pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)]. Defendant shall satisfy this obligation by paying $4,095,478.00 pursuant to the terms of the payment schedule set forth in paragraph IV below after entry of this Final Judgment to the Clerk of this Court, together with a cover letter identifying Lawrence A. Powalisz as a defendant in this action; setting forth the title and civil action number of this action and the name of this Court; and specifying that payment is made pursuant to this Final Judgment. Defendant shall simultaneously transmit photocopies of such payment and letter to the Commission’s counsel in this action. By making this payment, Defendant relinquishes all legal and equitable right, title, and interest in such funds, and no part of the funds shall be returned to Defendant.
Defendant shall pay post-judgment interest on any delinquent amounts pursuant to 28 USC § 1961.

The Clerk shall deposit the funds into an interest bearing account with the Court Registry Investment System ("CRIS") or any other type of interest bearing account that is utilized by the Court. These funds, together with any interest and income earned thereon (collectively, the “Fund”), shall be held in the interest bearing account until further order of the Court. In accordance with 28 U.S.C. § 1914 and the guidelines set by the Director of the Administrative Office of the United States Courts, the Clerk is directed, without further order of this Court, to deduct from the income earned on the money in the Fund a fee equal to ten percent of the income earned on the Fund. Such fee shall not exceed that authorized by the Judicial Conference of the United States.

The Commission may by motion propose a plan to distribute the Fund subject to the Court’s approval. Such a plan may provide that the Fund shall be distributed pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002. Regardless of whether any such Fair Fund distribution is made, amounts ordered to be paid as civil penalties pursuant to this Judgment shall be treated as penalties paid to the government for all purposes, including all tax purposes. To preserve the deterrent effect of the civil penalty, Defendant shall not, after offset or reduction of any award of compensatory damages in any Related Investor Action based on Defendant’s payment of disgorgement in this action, argue that he is entitled to, nor shall he further benefit by, offset or reduction of such compensatory damages award by the amount of any part of Defendant’s payment of a civil penalty in this action ("Penalty Offset"). If the court in any Related Investor Action grants such a Penalty Offset, Defendant shall, within 30 days after entry of a final order granting the Penalty Offset, notify the Commission's counsel in this action and pay the amount of the Penalty Offset to the United States Treasury or to a Fair Fund, as the Commission directs. Such a payment shall not be deemed an additional civil penalty and shall not be deemed to change the amount of the civil penalty imposed in this Judgment. For purposes of this paragraph, a "Related Investor Action" means a private damages action brought against Defendant by or on behalf of one or more investors based on substantially the same facts as alleged in the Complaint in this action.

IV.
IT IS FURTHER ORDERED that Defendant Lawrence A. Powalisz shall pay $4,095,478.00 in three installments according to the following schedule: (1) $300,000.00, within 14 days of entry of this Final Judgment; (2) $500,000.00 within 180 days of entry of this Final Judgment, plus post-judgment interest pursuant to 28 U.S.C. § 1961; and (3) $3,295,478.00 within 360 days of entry of this Final Judgment, plus post-judgment interest pursuant to 28 U.S.C. § 1961. If Defendant fails to make any payment by the date agreed and/or in the amount agreed according to the schedule set forth above, all outstanding payments under this Final Judgment, including post-judgment interest, minus any payments made, shall become due and payable immediately without further application to the Court. When calculating the instalment payments, the parties shall deduct any payments made by Defendant K&L, up to $3,945,478.00, plus applicable post-judgment interest, from the amounts that Defendant Lawrence A. Powalisz has been ordered to pay.

V.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is incorporated herein with the same force and effect as if fully set forth herein, and that Defendant shall comply with all of the undertakings and agreements set forth therein.

VI.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment.

VII.
There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice.

DONE and ORDERED in Chambers, in Orlando, Florida this 18th day of August, 2010.

[scion]

08/18/2010 60 CONSENT JUDGMENT on behalf of SEC against Defendant K&L International Enterprises, Inc. Signed by Judge Gregory A. Presnell on 8/18/2010. (TKW) (Entered: 08/18/2010)

Doc 60 PDF file
http://viewer.zoho.com/docs/qJ0bP

08/18/2010 59 CONSENT JUDGMENT on behalf of SEC against Defendant Lawrence A. Powalisz. Signed by Judge Gregory A. Presnell on 8/18/2010. (TKW) (Entered: 08/18/2010)

Doc 59 PDF file
http://viewer.zoho.com/docs/pJ2Mj

[scion]

Pacer update 18 Aug 10 FOR CASE #: 6:09-cv-01638-GAP-KRS SEC v. K & L International Enterprises, Inc. et al

Date Filed # Docket Text

08/18/2010 60 CONSENT JUDGMENT on behalf of SEC against Defendant K&L International Enterprises, Inc. Signed by Judge Gregory A. Presnell on 8/18/2010. (TKW) (Entered: 08/18/2010)

08/18/2010 59 CONSENT JUDGMENT on behalf of SEC against Defendant Lawrence A. Powalisz. Signed by Judge Gregory A. Presnell on 8/18/2010. (TKW) (Entered: 08/18/2010)

08/18/2010 58 ORDER granting 57 Motion to Approve Consent Judgments; judgments will be entered separately. Signed by Judge Gregory A. Presnell on 8/18/2010. (TKW) (Entered: 08/18/2010)

08/17/2010 57 MOTION to Approve Consent Judgment as to Defendants K&L International Enterprises, Inc. and Lawrence A. Powalisz by United States Securities and Exchange Commission. (Attachments: # 1 K&L International Enterprises, Inc.'s Consent with Proposed Final Judgment, # 2 Lawrence A. Powalisz's Consent with Proposed Final Judgment)(Nelson, Margaret) (Entered: 08/17/2010)


Defendant: K & L International Enterprises, Inc.

Defendant: Signature Leisure, Inc.

Defendant: Signature Worldwide Advisors, LLC

Defendant: Stephen W. Carnes

Defendant: Lawrence A. Powalisz

Defendant: Enzyme Enviromental Solutions, Inc.

Defendant: Jared E. Hochstedler

https://ecf.flmd.uscourts.gov/cgi-bin/iquery.pl

[nWo]

whats new with CXAC in this case? do you know when there trial is and all...are they listed as a defendant now?

[scion]

What happens to the fines collected by the Securities and Exchange Commission?

http://www.investopedia.com/ask/answers/05/SECfines.asp

[maronti1]

TY SCION...WE STILL DON'T KNOW WERE SOME OF THIS MONEY WILL GO?

[scion]

Pacer update 11 Aug 10 FOR CASE #: 6:09-cv-01638-GAP-KRS SEC v. K & L International Enterprises, Inc. et al

Date Filed # Docket Text

08/11/2010 PAYMENT by Stephen W. Carnes of $635.59 receipt number 035763 for post judgment interest on previous installment paid 8/3/10. (LAK) (Entered: 08/11/2010)

08/03/2010 PAYMENT of behalf of Stephen W. Carnes for $186,000.00 receipt number 035637) (LAK) (Entered: 08/04/2010)



Defendant: K & L International Enterprises, Inc.

Defendant: Signature Leisure, Inc.

Defendant: Signature Worldwide Advisors, LLC

Defendant: Stephen W. Carnes

Defendant: Lawrence A. Powalisz

Defendant: Enzyme Enviromental Solutions, Inc.

Defendant: Jared E. Hochstedler

https://ecf.flmd.uscourts.gov/cgi-bin/iquery.pl

[scion]

07/07/2010 55 Unopposed MOTION for extension of time until 10/1/10 to complete discovery by United States Securities and Exchange Commission. (Polish, Jonathan) Motions referred to Magistrate Judge Karla R. Spaulding. Modified on 7/8/2010 (JET). (Entered: 07/07/2010)

Doc 55 PDF file
http://viewer.zoho.com/docs/e4HZb

07/07/2010 56 ORDER denying without prejudice 55 Agreed Motion for Extension to Discovery Deadline. Signed by Magistrate Judge Karla R. Spaulding on 7/7/2010. (ECJ) (Entered: 07/07/2010)

Doc 56 PDF file
http://viewer.zoho.com/docs/i4G3i

[scion]

Pacer update 07 Jul 10 FOR CASE #: 6:09-cv-01638-GAP-KRS SEC v. K & L International Enterprises, Inc. et al


Date Filed # Docket Text

07/07/2010 56 ORDER denying without prejudice 55 Agreed Motion for Extension to Discovery Deadline. Signed by Magistrate Judge Karla R. Spaulding on 7/7/2010. (ECJ) (Entered: 07/07/2010)

07/07/2010 55 Unopposed MOTION for extension of time until 10/1/10 to complete discovery by United States Securities and Exchange Commission. (Polish, Jonathan) Motions referred to Magistrate Judge Karla R. Spaulding. Modified on 7/8/2010 (JET). (Entered: 07/07/2010)

[Crazy Money]

No answer for u

[frankie_fillet]

SO does this mean carnes cannot trade stocks or is he just out of pennies and pinks for 3 years?

real

[frankie_fillet]

BAAAAZINGA

[maronti1]

ty..as always

[scion]

05/12/2010 52 MOTION for Final judgment as to Defendants Stephen W. Carnes, Signature Worldwide Advisors, LLC and Signature Leisure Inc. by United States Securities and Exchange Commission. (Polish, Jonathan) (Entered: 05/12/2010)

Doc 52 PDF file
http://viewer.zoho.com/docs/nJ6Uh

MOTION FOR ENTRY OF FINAL JUDGMENTS AS TO DEFENDANTS STEPHEN W. CARNES, SIGNATURE WORLDWIDE ADVISORS, LLC AND SIGNATURE LEISURE INC.

Plaintiff Securities and Exchange Commission (the “Commission”) respectfully moves this Court to enter Final Judgments as to Defendants Stephen W. Carnes, Signature Worldwide Advisors, LLC and Signature Leisure, Inc. (the “Defendants”). In support of this motion, the Commission states as follows:

1. The Defendants have consented to entry of Final Judgments. The Consents are attached hereto as Exhibits A, B and C.

2. The proposed Final Judgments, which are attached to the Consents, would permanently enjoin the Defendants from violating Section 5 of the Securities Act of 1933 [15 U.S.C. § 77e], bar them for three years from participating in an offering of penny stock under Section 20(g) of the Securities Act [15 U.S.C. § 77t(g)], order them to pay disgorgement, plus prejudgment interest, and order them to pay civil penalties under Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)].

WHEREFORE, the Commission respectfully requests that this Court enter Final Judgments against Defendants Stephen W. Carnes, Signature Worldwide Advisors, LLC and Signature Leisure, Inc., and for such other relief as the Court deems appropriate.

Dated: May 12, 2010

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=50153021
-----------------------------
AND -

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=50280078&txt2find=Carnes

[maronti1]

what will happen now?
The Carnage has to pay who?
also can he still run his company.?..tia

[scion]

05/28/2010 54 ORDER directing the clerk to terminate Defendants Signature Worldwide Advisors, LLC, Stephen W. Carnes and Signature Leisure, Inc. re 53 Order on motion for judgment. Signed by Judge Gregory A. Presnell on 5/27/2010. (LAM) (Entered: 05/28/2010)


Doc 54 PDF file
http://viewer.zoho.com/docs/tGIcca

[scion]

Pacer update 28 May 10 FOR CASE #: 6:09-cv-01638-GAP-KRS SEC v. K & L International Enterprises, Inc. et al

Date Filed # Docket Text

05/28/2010 54 ORDER directing the clerk to terminate Defendants Signature Worldwide Advisors, LLC, Stephen W. Carnes and Signature Leisure, Inc. re 53 Order on motion for judgment. Signed by Judge Gregory A. Presnell on 5/27/2010. (LAM) (Entered: 05/28/2010)

Defendant: K & L International Enterprises, Inc.

Defendant: Signature Leisure, Inc.

Defendant: Signature Worldwide Advisors, LLC

Defendant: Stephen W. Carnes

Defendant: Lawrence A. Powalisz

Defendant: Enzyme Enviromental Solutions, Inc.

Defendant: Jared E. Hochstedler

https://ecf.flmd.uscourts.gov/cgi-bin/iquery.pl

[frankie_fillet]

SEC.. they use the money to offset the cost of prosecution... i have had them win money from a few stocks i was in.. and shareholders never ever got a dime...

real