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DRW1, I think on this issue you have run out of options?
ok so what happens to the shares of stock that i own, are they junk ?
scion,
Thank you for all of the information that you have posted here. I have been looking for word on Plasticon for over two years - as my shares sit in limbo. This site is much welcome news! I now have hope that I can at least, write-off my shares as a loss next year - or at most, see them start trading again.
Pacer update 02 Dec 10 Case Number 5:08-cv-00395-JBC Securities And Exchange Commission v. Turek et al
Date Filed # Docket Text
12/02/2010 49 ORDER: The parties shall file a status report regarding approval of the settlement on or by January 31, 2011. cc: COR Modified text on 12/6/2010. (LGM) (Entered: 12/02/2010)
12/01/2010 NOTICE OF DOCKET MODIFICATION TO ALL COUNSEL OF RECORD re File Submitted. Error: File submit entry incorrectly indicated submission to Judge Jennifer Caldwell; Entry by Clerk; Correction: Text modified to correctly indicate file submitted to Judge Jennifer B. Coffman; no steps need be taken by counsel. cc: COR (LGM) (Entered: 12/02/2010)
11/30/2010 ***FILE SUBMITTED TO CHAMBERS of Jennifer B. Coffman for review: 48 Status Report. Modified text on 12/1/2010 (LGM). (Entered: 11/30/2010)
Defendant James N. Turek
jnturek@gmail.com; cell phone 859-806-0999
represented by James N. Turek
1795 Alysheba Way
Suite 3105
Lexington, KY 40509
859-368-8908
Defendant
Plasticon International, Inc.
Defendant
Lexreal Co. LLC
Defendant
Promotional Containers, Inc.
Defendant
Telcoblue, Inc.
PRO SE
https://ecf.kyed.uscourts.gov/cgi-bin/iquery.pl
I could not open that file. What was the outcome?
11/29/2010 48 STATUS REPORT by Securities And Exchange Commission. (Gegenheimer, Nancy) (Entered: 11/29/2010)
Doc 48 PDF file
http://viewer.zoho.com/docs/ccdcdbR
Pacer update 29 Nov 10 Case Number 5:08-cv-00395-JBC Securities And Exchange Commission v. Turek et al
Date Filed # Docket Text
11/29/2010 48 STATUS REPORT by Securities And Exchange Commission. (Gegenheimer, Nancy) (Entered: 11/29/2010)
Defendant James N. Turek
jnturek@gmail.com; cell phone 859-806-0999
represented by James N. Turek
1795 Alysheba Way
Suite 3105
Lexington, KY 40509
859-368-8908
Defendant
Plasticon International, Inc.
Defendant
Lexreal Co. LLC
Defendant
Promotional Containers, Inc.
Defendant
Telcoblue, Inc.
PRO SE
https://ecf.kyed.uscourts.gov/cgi-bin/iquery.pl
His next concerns are the DOJ and IRS.
Jimmy gets to keep his cars and houses I guess.
10/27/2010 46 MOTION to Vacate Pretrial Conference and Trial by Securities And Exchange Commission (Gegenheimer, Nancy) Modified text on 10/28/2010. (LGM) (Entered: 10/27/2010)
Doc 46 PDF file
http://viewer.zoho.com/docs/mEe3d
10/28/2010 47 ORDER: PTC on 11/4/2010 and JURY TRIAL on 12/6/2010 are CANCELED AND SET ASIDE. SEC shall file status report re approval of settlement NLT 30 days from date of this Order. Signed by Judge Jennifer B Coffman on 10/28/2010.(STB)cc: COR,D,JC, J. Turek (Entered: 10/28/2010)
Doc 47 PDF file
http://viewer.zoho.com/docs/mEe3d
Pacer update 28 Oct 10 Case Number 5:08-cv-00395-JBC Securities And Exchange Commission v. Turek et al
Date Filed # Docket Text
10/28/2010 47 ORDER: PTC on 11/4/2010 and JURY TRIAL on 12/6/2010 are CANCELED AND SET ASIDE. SEC shall file status report re approval of settlement NLT 30 days from date of this Order. Signed by Judge Jennifer B Coffman on 10/28/2010.(STB)cc: COR,D,JC, J. Turek (Entered: 10/28/2010)
10/27/2010 46 MOTION to Vacate Pretrial Conference and Trial by Securities And Exchange Commission (Gegenheimer, Nancy) Modified text on 10/28/2010. (LGM) (Entered: 10/27/2010)
Defendant James N. Turek
jnturek@gmail.com; cell phone 859-806-0999
represented by James N. Turek
1795 Alysheba Way
Suite 3105
Lexington, KY 40509
859-368-8908
Defendant
Plasticon International, Inc.
Defendant
Lexreal Co. LLC
Defendant
Promotional Containers, Inc.
Defendant
Telcoblue, Inc.
PRO SE
https://ecf.kyed.uscourts.gov/cgi-bin/iquery.pl
is that sob going to jail or just get a minor scolding? I don't even remember his name now, maybe it's best forgotten.
08/18/2010 45 MINUTE ENTRY ORDER FOR SETTLEMENT CONFERENCE held on 8/18/2010 before Magistrate Judge Robert E. Wier: This matter stands conditionally settled pending approval of terms by Commission & by District Court. Signed by Magistrate Judge Robert E. Wier on 8/18/2010. (Court Reporter None.) (STB)cc: COR (Entered: 08/18/2010)
Doc 45 PDF file
http://viewer.zoho.com/docs/cpuaV
Pacer update 16 Aug 10 Case Number 5:08-cv-00395-JBC Securities And Exchange Commission v. Turek et al
Date Filed # Docket Text
08/18/2010 45 MINUTE ENTRY ORDER FOR SETTLEMENT CONFERENCE held on 8/18/2010 before Magistrate Judge Robert E. Wier: This matter stands conditionally settled pending approval of terms by Commission & by District Court. Signed by Magistrate Judge Robert E. Wier on 8/18/2010. (Court Reporter None.) (STB)cc: COR (Entered: 08/18/2010)
Defendant James N. Turek
jnturek@gmail.com; cell phone 859-806-0999
represented by James N. Turek
1795 Alysheba Way
Suite 3105
Lexington, KY 40509
859-368-8908
Defendant
Plasticon International, Inc.
Defendant
Lexreal Co. LLC
Defendant
Promotional Containers, Inc.
Defendant
Telcoblue, Inc.
PRO SE
https://ecf.kyed.uscourts.gov/cgi-bin/iquery.pl
Thank you for all of these updates.
07/29/2010 44 ORDER, SETTLEMENT CONFERENCE set for 8/18/2010 at 9:30 AM in LEXINGTON before Magistrate Judge Robert E. Wier. Before COB 8/11/2010, each party email ex parte settlemnt conf statement to Wier Chambers. Objections filed w/in 5 days. Signed by Magistrate Judge Robert E. Wier on 7/29/2010.(STB)cc: COR,D (Entered: 07/29/2010)
Doc 44 PDF file
http://viewer.zoho.com/docs/yIdbdq
Pacer update 29 Jul 10 Case Number 5:08-cv-00395-JBC Securities And Exchange Commission v. Turek et al
Date Filed # Docket Text
07/29/2010 44 ORDER, SETTLEMENT CONFERENCE set for 8/18/2010 at 9:30 AM in LEXINGTON before Magistrate Judge Robert E. Wier. Before COB 8/11/2010, each party email ex parte settlemnt conf statement to Wier Chambers. Objections filed w/in 5 days. Signed by Magistrate Judge Robert E. Wier on 7/29/2010.(STB)cc: COR,D (Entered: 07/29/2010)
Defendant James N. Turek
jnturek@gmail.com; cell phone 859-806-0999
represented by James N. Turek
1795 Alysheba Way
Suite 3105
Lexington, KY 40509
859-368-8908
Defendant
Plasticon International, Inc.
Defendant
Lexreal Co. LLC
Defendant
Promotional Containers, Inc.
Defendant
Telcoblue, Inc.
PRO SE
https://ecf.kyed.uscourts.gov/cgi-bin/iquery.pl
07/20/2010 42 JOINT MOTION for Order by Securities And Exchange Commission To Set a Settlement Conference (Attachments: # 1 Proposed Order)(Gegenheimer, Nancy) (Entered: 07/20/2010)
Doc 42 PDF file
http://viewer.zoho.com/docs/xiWnj
07/26/2010 43 ORDER: 42 JOINT MOTION To Set a Settlement Conference GRANTED; this matter referred to Magistrate Judge Robert E. Wier for settlement conference; parties directed to jointly contact Magistrate Judge Wier to schedule said conference. Signed by Judge Jennifer B Coffman on 7/25/2010.(STB)cc: COR (Entered: 07/26/2010)
Doc 43 PDF file
http://viewer.zoho.com/docs/pjscd
JOINT MOTION REQUESTING SETTING FOR A SETTLEMENT CONFERENCE
_____________________________________________________________________________
Pursuant to the Court’s recommendation of June 30, 2010, Plaintiff Securities and Exchange Commission (“Commission”), joined by Defendant James N. Turek, respectfully moves this Court for an Order setting a settlement conference. As grounds therefore the parties state:
1. The Commission filed this action on September 30, 2008. [Dkt. #1.]
2. Default has been entered against all defendants except Defendant James N. Turek. [Dkt. #34] Mr. Turek is pro se in this matter.
3. The Amended Scheduling Order entered on June 30, 2010 [Dkt. # 40] stated:
“ . . . referred to Magistrate Judge Todd for settlement conference.”
4. The Commission and defendant Turek have conferred and both believe that a settlement conference would be beneficial.
5. Both parties are available for a settlement conference any day during the week of August 16, 2010.
Dated: July 20, 2010
Respectfully submitted,
s/ Nancy J. Gegenheimer
Nancy J. Gegenheimer
Barbara T. Wells
Attorneys for Plaintiff
Securities and Exchange Commission
1801 California Street, Suite 1500
Denver, Colorado 80202
Telephone: (303) 844-1000
Facsimile: (303) 844-1010
Joined in by:
James N. Turek
1795 Alysheba Way Suite 3105
Lexington, Kentucky 40509
Jnturek@gmail.com
Pacer update 26 Jul 10 Case Number 5:08-cv-00395-JBC Securities And Exchange Commission v. Turek et al
Date Filed # Docket Text
07/26/2010 43 ORDER: 42 JOINT MOTION To Set a Settlement Conference GRANTED; this matter referred to Magistrate Judge Robert E. Wier for settlement conference; parties directed to jointly contact Magistrate Judge Wier to schedule said conference. Signed by Judge Jennifer B Coffman on 7/25/2010.(STB)cc: COR (Entered: 07/26/2010)
07/21/2010 ***MOTION SUBMITTED TO CHAMBERS of Magistrate Judge Robert E. Wier for review: re 42 JOINT MOTION for Order by Securities And Exchange Commission To Set a Settlement Conference (STB) (Entered: 07/21/2010)
07/20/2010 42 JOINT MOTION for Order by Securities And Exchange Commission To Set a Settlement Conference (Attachments: # 1 Proposed Order)(Gegenheimer, Nancy) (Entered: 07/20/2010)
Defendant James N. Turek
jnturek@gmail.com; cell phone 859-806-0999
represented by James N. Turek
1795 Alysheba Way
Suite 3105
Lexington, KY 40509
859-368-8908
Defendant
Plasticon International, Inc.
Defendant
Lexreal Co. LLC
Defendant
Promotional Containers, Inc.
Defendant
Telcoblue, Inc.
PRO SE
https://ecf.kyed.uscourts.gov/cgi-bin/iquery.pl
No jail time? This would be unfortunate.
Plaintiff Securities and Exchange Commission (“SEC”) respectfully moves this Court for an Order granting the SEC summary judgment pursuant to Fed. R. Civ. P. 56 against defendant James N. Turek (“Turek”) on all four of the claims brought against him in the SEC’s Complaint (Dkt. #1).[1] In support of this motion, the SEC relies upon the brief submitted herewith and the Declaration of Jeffrey R. Thomas and attachments thereto.
I. SUMMARY
Between January 2005 and April 2007, Turek fraudulently misappropriated approximately $2.6 million of proceeds from an unregistered, multi-state securities offering of Plasticon International, Inc. (“Plasticon”), a public company he controlled. In addition, between May 2005 and April 2006, Turek knowingly, or at least recklessly, caused Plasticon to issue false and misleading press releases concerning its financial condition, outstanding shares, and intellectual property. Those false press releases dramatically inflated the price of Plasticon’s stock, including shares Turek was selling to the public. Finally, the offering of Plasticon’ssecurities conducted by Turek did not qualify for any exemptions from registration under the Securities Act of 1933 (“Securities Act”). As a result of these activities, Turek has violated the antifraud provisions of the Securities Act and the Securities Exchange Act of 1934 (“Exchange Act”) and the registration provisions of the Securities Act. The SEC therefore seeks an Order holding Turek responsible for his misconduct and protecting the investing public from possible future securities law violations by him, which would include: restraining and enjoining Turek from violating the relevant sections of the federal securities laws; barring Turek from participating in any offering of penny stock; barring Turek from serving as an officer or director of a public company; requiring Turek to disgorge all ill-gotten gains; and imposing a third-tier civil penalty on Turek.
[1] The Clerk has entered a default against all of the other defendants named in the Complaint. See Entry of Default, Pursuant to Fed. R. Civ. P. 55(a), Against Defendant Plasticon International, Inc. and Relief Defendants LexReal Co., LLC, Promotional Containers, Inc. and TelcoBlue, Inc. [Dkt. #34].
Doc 39 PDF file
http://viewer.zoho.com/docs/ssm0a
07/02/2010 41 NOTICE OF FILING by Securities And Exchange Commission re 39 MOTION for Summary Judgment by Securities And Exchange Commission and Brief in Support, Notice of Deficiency,,, (Attachments: # 1 Proposed Order Granting SEC's Motion for Summary Judgment, # 2 Exhibit A - Signed Declaration of Jeffrey Thomas)(Gegenheimer, Nancy) (Entered: 07/02/2010)
Doc 41 PDF file
http://viewer.zoho.com/docs/cBsQj
Document Number: 41 3 pages 16 kb
Attachment Description
1 Proposed Order Granting SEC's Motion for Summary Judgment 24 pages 84 kb
2 Exhibit A - Signed Declaration of Jeffrey Thomas 6 pages 236 kb
06/29/2010 39 MOTION for Summary Judgment by Securities And Exchange Commission and Brief in Support (Attachments: # 1 Exhibit A - Declaration of Jeffrey Thomas, # 2 Exhibit 1 to Exh A - 10-KSB for 12-31-04 and 12-31-05, # 3 Exhibit 2 to Exh A - 10-QSB for qtr ended 6-30-05, # 4 Exhibit 3 to Exh A - 10-QSB for qtr ended 9-30-05, # 5 Exhibit 4 to Exh A - Howe Trsct Excerpts, # 6 Exhibit 5 to Exh A - Foster Trsct Excerpts, # 7 Exhibit 6 to Exh A - Declaration Certifying Central Bank records, # 8 Exhibit 7 to Exh A - REDACTED Summary of LexReal bank records, # 9 Exhibit 8 to Exh A - Press Release 6-17-05, # 10 Exhibit 9 to Exh A - Press Release 6-21-05, # 11 Exhibit 10 to Exh A - Press Release 8-24-05, # 12 Exhibit 11 to Exh A - Press Release 10-4-05, # 13 Exhibit 12 to Exh A - Press Release 12-30-05, # 14 Exhibit 13 to Exh A - Press Release 1-24-06, # 15 Exhibit 14 to Exh A - Press Release 4-25-06, # 16 Exhibit 15 to Exh A - Press Release 5-18-05, # 17 Exhibit 16 to Exh A - Press Release 9-12-05, # 18 Exhibit 17 to Exh A - Press Release 9-19-05, # 19 Exhibit 18 to Exh A - Summary of First American Stock Transfer records, # 20 Exhibit 19 to Exh A - Results of Patent Assignment Search, # 21 Exhibit 20 to Exh A - Ltrs dated 1993 1998 and 2000, # 22 Exhibit 21 to Exh A - Bloomberg printouts, # 23 Exhibit 22 to Exh A - Bloomberg printout, # 24
Doc 39 PDF file
http://viewer.zoho.com/docs/ssm0a
Document Number: 39 33 pages 97 kb
Attachment Description
1 Exhibit A - Declaration of Jeffrey Thomas 6 pages 40 kb
2 Exhibit 1 to Exh A - 10-KSB for 12-31-04 and 12-31-05 20 pages 0.6 mb
3 Exhibit 2 to Exh A - 10-QSB for qtr ended 6-30-05 10 pages 169 kb
4 Exhibit 3 to Exh A - 10-QSB for qtr ended 9-30-05 10 pages 171 kb
5 Exhibit 4 to Exh A - Howe Trsct Excerpts 20 pages 0.7 mb
6 Exhibit 5 to Exh A - Foster Trsct Excerpts 7 pages 0.5 mb
7 Exhibit 6 to Exh A - Declaration Certifying Central Bank records 2 pages 33 kb
8 Exhibit 7 to Exh A - REDACTED Summary of LexReal bank records 23 pages 1.2 mb
9 Exhibit 8 to Exh A - Press Release 6-17-05 4 pages 137 kb
10 Exhibit 9 to Exh A - Press Release 6-21-05 4 pages 135 kb
11 Exhibit 10 to Exh A - Press Release 8-24-05 3 pages 98 kb
12 Exhibit 11 to Exh A - Press Release 10-4-05 3 pages 100 kb
13 Exhibit 12 to Exh A - Press Release 12-30-05 5 pages 215 kb
14 Exhibit 13 to Exh A - Press Release 1-24-06 2 pages 71 kb
15 Exhibit 14 to Exh A - Press Release 4-25-06 2 pages 75 kb
16 Exhibit 15 to Exh A - Press Release 5-18-05 3 pages 110 kb
17 Exhibit 16 to Exh A - Press Release 9-12-05 4 pages 134 kb
18 Exhibit 17 to Exh A - Press Release 9-19-05 4 pages 140 kb
19 Exhibit 18 to Exh A - Summary of First American Stock Transfer records 2 pages 30 kb
20 Exhibit 19 to Exh A - Results of Patent Assignment Search 10 pages 332 kb
21 Exhibit 20 to Exh A - Ltrs dated 1993 1998 and 2000 5 pages 193 kb
22 Exhibit 21 to Exh A - Bloomberg printouts 3 pages 147 kb
23 Exhibit 22 to Exh A - Bloomberg printout 2 pages 66 kb
24 Exhibit B - Prejudgment Interest Report 1 page 38 kb
25 Proposed Order 24 pages 115 kb
26 Signed Declaration of Jeffrey Thomas 6 pages 238 kb
Defendant James N. Turek
jnturek@gmail.com; cell phone 859-806-0999
represented by James N. Turek
1795 Alysheba Way
Suite 3105
Lexington, KY 40509
859-368-8908
Defendant
Plasticon International, Inc.
Defendant
Lexreal Co. LLC
Defendant
Promotional Containers, Inc.
Defendant
Telcoblue, Inc.
PRO SE
https://ecf.kyed.uscourts.gov/cgi-bin/iquery.pl
Pacer update 02 Jul 10 Case Number 5:08-cv-00395-JBC Securities And Exchange Commission v. Turek et al
Date Filed # Docket Text
07/02/2010 41 NOTICE OF FILING by Securities And Exchange Commission re 39 MOTION for Summary Judgment by Securities And Exchange Commission and Brief in Support, Notice of Deficiency,,, (Attachments: # 1 Proposed Order Granting SEC's Motion for Summary Judgment, # 2 Exhibit A - Signed Declaration of Jeffrey Thomas)(Gegenheimer, Nancy) (Entered: 07/02/2010)
06/30/2010 40 AMENDED SCHEDULING ORDER: (1)deadline for parties exchange initial disclosures PASSED; (2)deadline for expert disclosures PASSED; (3)deadline for supplementation of disclosures PASSED; (4)deadline for discovery due PASSED; (5)discovery disputes are REFERRED to Mag Judge Wier for resolution; (6)deadline for motions to amended pleadings or join parties PASSED; (7)dispositive motions & motions in limine due by 8/2/2010; (8)pretrial filings due 7 days prior to PTC; (9)premark exhibits 7 days prior to PTC; (10)conduct conference re agreed proposed jury instructions 7 days prior to PTC; (11)PRETRIAL CONFERENCE set for 8/12/2010 is CANCELED AND RESCHEDULED to 11/4/2010 at 1:00 PM in LEXINGTON before Judge Jennifer B Coffman; (12)file agreed proposed jury instructions at PTC; (13)submit agreed statement of case at PTC; (14)file objections to use of depos or admissibility of exhibits at PTC (15)submit copy of exhibits to Chambers 3 days prior to trial; (16)JURY TRIAL set for 9/13/2010 is CANCELED AND RESCHEDULED to 12/6/2010 at 9:00 AM in LEXINGTON before Judge Jennifer B Coffman; (17)referred to Magistrate Judge Todd for settlement conference. Signed by Judge Jennifer B Coffman on 06/30/2010.(RJD)cc: COR,D,JC (Entered: 07/02/2010)
06/30/2010 NOTICE OF DEFICIENCY TO Nancy Gegenheimer re 39 MOTION for Summary Judgment by Securities And Exchange Commission and Brief in Support. Error 1: attorney failed to submit a proposed order as an electronic attachment to the motion. Entry by attorney; Error 2: re Declaration attached to Motion; a scanned copy of the original signature for the declarant must be filed. Entry by attorney. Within 7 calendar days, prepare a pleading entitled "Notice of Filing" (with a certificate of service), file the Notice using the event "Notice of Filing," attach the proposed order and a scanned copy of the Declaration with the original signature of the declarant, and create a link to the related docket entry. cc: COR (STB) (Entered: 06/30/2010)
06/29/2010 39 MOTION for Summary Judgment by Securities And Exchange Commission and Brief in Support (Attachments: # 1 Exhibit A - Declaration of Jeffrey Thomas, # 2 Exhibit 1 to Exh A - 10-KSB for 12-31-04 and 12-31-05, # 3 Exhibit 2 to Exh A - 10-QSB for qtr ended 6-30-05, # 4 Exhibit 3 to Exh A - 10-QSB for qtr ended 9-30-05, # 5 Exhibit 4 to Exh A - Howe Trsct Excerpts, # 6 Exhibit 5 to Exh A - Foster Trsct Excerpts, # 7 Exhibit 6 to Exh A - Declaration Certifying Central Bank records, # 8 Exhibit 7 to Exh A - REDACTED Summary of LexReal bank records, # 9 Exhibit 8 to Exh A - Press Release 6-17-05, # 10 Exhibit 9 to Exh A - Press Release 6-21-05, # 11 Exhibit 10 to Exh A - Press Release 8-24-05, # 12 Exhibit 11 to Exh A - Press Release 10-4-05, # 13 Exhibit 12 to Exh A - Press Release 12-30-05, # 14 Exhibit 13 to Exh A - Press Release 1-24-06, # 15 Exhibit 14 to Exh A - Press Release 4-25-06, # 16 Exhibit 15 to Exh A - Press Release 5-18-05, # 17 Exhibit 16 to Exh A - Press Release 9-12-05, # 18 Exhibit 17 to Exh A - Press Release 9-19-05, # 19 Exhibit 18 to Exh A - Summary of First American Stock Transfer records, # 20 Exhibit 19 to Exh A - Results of Patent Assignment Search, # 21 Exhibit 20 to Exh A - Ltrs dated 1993 1998 and 2000, # 22 Exhibit 21 to Exh A - Bloomberg printouts, # 23 Exhibit 22 to Exh A - Bloomberg printout, # 24
Defendant James N. Turek
jnturek@gmail.com; cell phone 859-806-0999
represented by James N. Turek
1795 Alysheba Way
Suite 3105
Lexington, KY 40509
859-368-8908
Defendant
Plasticon International, Inc.
Defendant
Lexreal Co. LLC
Defendant
Promotional Containers, Inc.
Defendant
Telcoblue, Inc.
PRO SE
https://ecf.kyed.uscourts.gov/cgi-bin/iquery.pl
05/20/2010 38 MOTION to Amend/Correct 22 Scheduling Order,,,,, 31 Scheduling Order,, by Securities And Exchange Commission (Attachments: # 1 Proposed Order)(Gegenheimer, Nancy) (Entered: 05/20/2010)
Doc 38 PDF file
http://viewer.zoho.com/docs/peLbh
Is there a point to these Pacer Updates? I don't get it.
05/19/2010 37 MEMORANDUM OPINION & ORDER, 35 MOTION to Stay proceedings filed by James N. Turek is DENIED WITHOUT PREJUDICE. Signed by Judge Jennifer B Coffman on 5/19/2010.(STB)cc: COR (Entered: 05/19/2010)
Doc 37 PDF file
http://viewer.zoho.com/docs/ndbOK
This matter is before the court on the motion of one of the defendants, James N. Turek, to stay proceedings in this case pending a criminal investigation of him by the Department of Justice and the Internal Revenue Service. R. 35. For the reasons below, the court will deny the motion.
I. Background
The Securities and Exchange Commission (“SEC”) brought the instant lawsuit against James N. Turek and several other defendants in September 2008. R. 1. The SEC has alleged that Turek violated several securities laws. Id. Default has been entered against the remaining defendants, and Turek is proceeding pro se. R. 34.
II. Analysis
Staying a case is an extraordinary remedy, and courts generally must consider the following factors in deciding whether to grant a stay: (1) the interest of the plaintiff in proceeding expeditiously with the litigation or any particular aspect of it, and the potential prejudice to the plaintiff of a delay; (2) the burden which any particular aspect of the proceedings may impose on the defendant; (3) the convenience of the court in the management of its cases, and the efficient use of judicial resources; (4) the interests of persons not parties to the civil litigation;
and (5) the interest of the public in the pending civil and criminal litigation. See Fed. Sav. & Loan Ins. Corp. v. Molinaro, 889 F.2d 899, 903 (9th Cir. 1989); see also Walsh Secs., Inc. v. Cristo Prop. Mgmt., 7 F. Supp. 523, 537 (D.N.J. 1998) (applying a similar six-factor test). The court will address each of these factors in turn.
A. The Interest of the Plaintiff in Proceeding with This Litigation and Any Possible Prejudice Does Not Weigh in Favor of or Against Imposing a Stay.
Although the SEC has a strong public interest in promptly resolving its civil enforcement actions, this case is about resolving past wrongs, and does not involve an imminent threat to the public. While expressing some concern about preserving witness testimony, the SEC has acknowledged that it will largely rely on documentary evidence. R. 36 at 4-5. Thus this factor weighs neither for nor against staying the proceedings.
B. The Potential Burdens to the Defendant, Under These Facts, Weigh Against a Stay.
If this civil case proceeds, Turek will likely have to choose between waiving his Fifth Amendment rights and defending the action or asserting the privilege and losing the civil case. The SEC has indicated that it believes it will ultimately file a motion for summary judgment and that, accordingly, “Mr. Turek, a pro se defendant, would have to respond to the summary judgment [motion] while a criminal investigation is ongoing or risk an adverse judgment.” R. 36 at 5.
Although this choice does not violate the Constitution, courts may exercisediscretion to stay proceedings so that defendants may avoid such dilemmas. Brock v. Tolkow, 109 F.R.D. 116,120-21(E.D.N.Y. 1985). Whether such discretion would prompt a stay, however, should be measured case by case.
Generally, the case for staying civil proceedings is a far weaker one when no indictment has been returned and no Fifth Amendment privilege is threatened. Sec. Exch. Comm’n v. Dressler, 628 F.2d 1368, 1376 (D.C. Cir. 1980)). Here, Mr. Turek has already exercised his Fifth Amendment privilege, and the SEC has indicated that it is prepared to move for summary judgment regardless of his invocation of the privilege. See United States v. Private Sanitation Indus. Ass’n of Nassau/Suffolk, Inc., 811 F. Supp. 802, 807 (E.D.N.Y. 1992) (explaining that it is “disingenuous for [the defendant] to now argue that he will be prejudiced by exercising the privilege which he has repeatedly invoked in the past”). Moreover, courts have denied stays in similar circumstances where a defendant’s ability to oppose a summary judgment motion would have been compromised by invoking the privilege. See, e.g., id. This factor thus weighs against a stay.
C. Judicial Efficiency Weighs Against a Stay.
This court has an interest in judicial efficiency in terms of managing its caseload and cannot predict when the criminal matter would be resolved. See Walsh, 7 F. Supp. 2d at 528. A policy of issuing stays where a defendant faces simultaneous lawsuits could “become a constant source of delay and an
interference with judicial administration.” Private Sanitation, 811 F. Supp. at 808 (citations omitted). Thus, a stay would hinder judicial efficiency.
D. The Interests of Persons Not Parties to this Litigation Does Not Weigh in Favor of or Against Staying the Proceedings.
Turek has been deemed indigent in the criminal matter, and it is therefore
unlikely that there will be any recovery for investors in this matter. A delay would therefore not harm non-parties to the litigation any more than they have already been harmed.
E. The Interest of the Public in Pending Civil and Criminal Litigation
Weighs Against Staying the Proceedings.
The civil and criminal matters at issue apparently involve the same issues.
The relevant securities law statutes explicitly empower the SEC to investigate possible violations for civil and criminal enforcement and to transmit the fruits of its investigation to the Justice Department where appropriate. See Secs. and Exchange Comm’n v. Dresser Indus., Inc.,628 F.2d 1368, 1376 (D.C. Cir. 1980) (“The language of the securities laws and the nature of the SEC’s civil enforcement responsibilities require that the SEC retain full powers of investigation and enforcement action, even after Justice has begun a criminal investigation into the same alleged violations.”). Thus, the public interest does not mandate or encourage a stay.
III. Conclusion
Accordingly, IT IS ORDERED that the motion to stay proceedings, R.35, is
DENIED WITHOUT PREJUDICE.
Pacer update 20 May 10 Case Number 5:08-cv-00395-JBC Securities And Exchange Commission v. Turek et al
Date Filed # Docket Text
05/20/2010 38 MOTION to Amend/Correct 22 Scheduling Order,,,,, 31 Scheduling Order,, by Securities And Exchange Commission (Attachments: # 1 Proposed Order)(Gegenheimer, Nancy) (Entered: 05/20/2010)
05/19/2010 37 MEMORANDUM OPINION & ORDER, 35 MOTION to Stay proceedings filed by James N. Turek is DENIED WITHOUT PREJUDICE. Signed by Judge Jennifer B Coffman on 5/19/2010.(STB)cc: COR (Entered: 05/19/2010)
Defendant James N. Turek
jnturek@gmail.com; cell phone 859-806-0999
represented by James N. Turek
1795 Alysheba Way
Suite 3105
Lexington, KY 40509
859-368-8908
Defendant
Plasticon International, Inc.
Defendant
Lexreal Co. LLC
Defendant
Promotional Containers, Inc.
Defendant
Telcoblue, Inc.
PRO SE
https://ecf.kyed.uscourts.gov/cgi-bin/iquery.pl
Pacer update 27 Apr 10 Case Number 5:08-cv-00395-JBC Securities And Exchange Commission v. Turek et al
Date Filed # Docket Text
04/27/2010 ***MOTION SUBMITTED TO CHAMBERS of Judge Coffman for review: re 35 MOTION to Stay by James N. Turek (STB) (Entered: 04/27/2010)
Defendant James N. Turek
jnturek@gmail.com; cell phone 859-806-0999
represented by James N. Turek
1795 Alysheba Way
Suite 3105
Lexington, KY 40509
859-368-8908
Defendant
Plasticon International, Inc.
Defendant
Lexreal Co. LLC
Defendant
Promotional Containers, Inc.
Defendant
Telcoblue, Inc.
PRO SE
https://ecf.kyed.uscourts.gov/cgi-bin/iquery.pl
04/07/2010 36 RESPONSE to Motion re 35 MOTION to Stay by James N. Turek filed by Securities And Exchange Commission. (Attachments: # 1 Exhibit A, # 2 Exhibit B)(Gegenheimer, Nancy) (Entered: 04/07/2010)
PDF file Doc 36-2
http://viewer.zoho.com/docs/u9Cadd
On June 16, 2008, the Division of Enforcement filed a motion to dismiss the proceeding, based on the deregistration of TelcoBlue’s securities. 4/ We have determined to grant the Division’s motion. TelcoBlue no longer has a class of securities registered under Section 12 of the Exchange Act. Because revocation or suspension of registration are the only remedies available in this proceeding instituted pursuant to Exchange Act Section 12(j), we find it appropriate to dismiss the proceeding. 5/
04/07/2010 36 RESPONSE to Motion re 35 MOTION to Stay by James N. Turek filed by Securities And Exchange Commission. (Attachments: # 1 Exhibit A, # 2 Exhibit B)(Gegenheimer, Nancy) (Entered: 04/07/2010)
Doc 36 PDF file
http://viewer.zoho.com/docs/ea4vS
Extract:
However, it should be pointed out that the SEC did not seek any emergency relief in this case to stop an ongoing fraud. The corporate entities that were part of the fraudulent scheme have been delisted pursuant to proceedings brought by the SEC under the Securities Exchange Act of 1934 Section 12(j), 15 U.S.C. §78(l). In these proceedings the Commission has revoked the registration of the securities of Plasticon International Inc., and TelcoBlue Inc. for failure to comply with the provisions of the Securities Exchange Act. Copies of the Commission’s orders revoking these registrations are attached hereto as Exhibit A and Exhibit B. As a result of these revocations, there is no imminent threat to the public, this action is to address past wrongs.
The one area of prejudice to the SEC is that delay impedes the ability to have witnesses testify before their memories fade, “[w]itnesses relocate, memories fade, and persons allegedly aggrieved are unable to seek vindication or redress for indefinite periods of time.” Fidelity Nat’l Title Ins. Co., 980 F.Supp. at 1024. However, the SEC believes that, in this case, much of the liability will be proven through documentary evidence. Moreover, through its investigation, the Commission has almost fully developed the record.
[...]
The SEC does not dispute that the issues in the criminal matter are substantially similar to the issues in this civil matter. However, there is no indictment yet and no indication of when there might be one. Mr. Turek previously asserted the Fifth Amendment during investigatory testimony, but in this civil matter Mr. Turek is pro se. He will be required to defend motions and the trial without the assistance of counsel while a criminal matter is underway.
7. Whether the Defendant has been indicted.
As discussed above, Mr. Turek has not yet been indicted. This is the single most compelling factor in denying a motion to stay. Nonetheless, the case law demonstrates that this fact is not absolutely determinative. The Court may, in its discretion decide to grant or deny a stay of civil proceedings, postpone civil discovery or impose protective orders and conditions when the interests of justice seem to require such actions. SEC v. Dresser industries, Inc. at 1375. The court must make such determinations in the light of the particular circumstances of the case. Id. If delay of the noncriminal proceeding would not seriously injure the public interest, a court may be justified in deferring it. Id. Walsh Sec. v. Cristo Prop. Mgmt., supra, (although no indictments have been returned, this action presents a strong case for a stay.); Silver v. McCamey, 221 F. 2d 873, 874-875 (D.C. Cir. 1955). Most of the cases discussed above, while directly on point as to the law, are not factually identical. In SEC v. Dresser Industries, Inc., supra, defendants were all represented by counsel and one defendant was a corporate entity. The question was whether they had to obey an SEC subpoena duces tecum while a parallel criminal investigation was ongoing, not whether they had to defend themselves against dispositive motions and/or at trial while pro se and while a criminal investigation was ongoing. In SEC v. Healthsouth Corporation, supra, at 1316 the court stated: “Because of the ongoing criminal investigation, defendant Scrushy has been placed in the precarious position of either waiving his Fifth Amendment rights and defending himself in the matter before this court, or asserting the privilege and probably losing this civil proceeding. While such a choice may not be unconstitutional, this court may still exercise its discretion to stay this case in the interest of justice.”
CONCLUSION
Because Mr. Turek is pro se and did not cite any authority in his Motion, the SEC has attempted to inform the Court of the most relevant case law on the issues raised in the Motion to assist the Court in exercising its discretion. The SEC is available to attend a hearing on this matter in the District Court in Lexington if it would assist the Court.
Dated: April 7, 2010
Pacer update 08 Apr 10 Case Number 5:08-cv-00395-JBC Securities And Exchange Commission v. Turek et al
Date Filed # Docket Text
04/08/2010 NOTICE OF DOCKET MODIFICATION TO Nancy Gegenheimer re 36 Response to Motion. Error: attachments were insufficiently described as "Exhibit A," "Exhibit B." Entry by attorney; Correction: the Clerk renamed the attachments. Attachments must be adequately described. Example: Exhibit A (incorrect); Exhibit A Affidavit of John Doe (correct.) No further action required by counsel. cc: COR (STB) (Entered: 04/08/2010)
04/07/2010 36 RESPONSE to Motion re 35 MOTION to Stay by James N. Turek filed by Securities And Exchange Commission. (Attachments: # 1 Exhibit A, # 2 Exhibit B)(Gegenheimer, Nancy) (Entered: 04/07/2010)
Defendant James N. Turek
jnturek@gmail.com; cell phone 859-806-0999
represented by James N. Turek
1795 Alysheba Way
Suite 3105
Lexington, KY 40509
859-368-8908
Defendant
Plasticon International, Inc.
Defendant
Lexreal Co. LLC
Defendant
Promotional Containers, Inc.
Defendant
Telcoblue, Inc.
PRO SE
https://ecf.kyed.uscourts.gov/cgi-bin/iquery.pl
Comes defendant James N. Turek, and hereby moves this Honorable Court for relief to stay all actions in this case concerning defendant James N. Turek while the Department of Justice and the IRS criminal investigations of me are completed.
These investigations involve the same allegations that are raised in this case. Hon. Patrick F. Nash has been appointed by this Court to represent me concerning the criminal investigations.
03/25/2010 35 MOTION for Temporary Relief/Stay by James N. Turek, pro se (STB) (Entered: 03/25/2010)
Doc 35
http://viewer.zoho.com/docs/abY2cf
CIVIL ACTION NO. 5:08-CV-395-JBC
UNITED STATES OF AMERICA,
PLAINTIFF,
V. JAMES N. TUREK, PLASTICOM INTERNATIONAL, INC. LEXREALCO., LLC PROMOTIONAL CONTAINERS, INC. TELECOBLUE, INC.
DEFENDANTS.
MOTION FOR TEMPORARY RELIEF
Comes defendant James N. Turek, and hereby moves this Honorable Court for relief to stay all actions in this case concerning defendant James N. Turek while the Department of Justice and the IRS criminal investigations of me are completed.
These investigations involve the same allegations that are raised in this case. Hon. Patrick F. Nash has been appointed by this Court to represent me concerning the criminal investigations.
Respectfully submitted,
Pacer update 25 Mar 10 Case Number 5:08-cv-00395-JBC Securities And Exchange Commission v. Turek et al
Date Filed # Docket Text
03/25/2010 35 MOTION for Temporary Relief/Stay by James N. Turek, pro se (STB) (Entered: 03/25/2010)
03/22/2010 Clerk's Note: re 32 MOTION for Entry of Default by Securities And Exchange Commission, 33 Notice of Filing. Clerk advised counsel's office by phone that attorneys, not staff, must sign pleadings in this court. (STB) (Entered: 03/22/2010)
Defendant James N. Turek
jnturek@gmail.com; cell phone 859-806-0999
represented by James N. Turek
1795 Alysheba Way
Suite 3105
Lexington, KY 40509
859-368-8908
Defendant
Plasticon International, Inc.
Defendant
Lexreal Co. LLC
Defendant
Promotional Containers, Inc.
Defendant
Telcoblue, Inc.
PRO SE
https://ecf.kyed.uscourts.gov/cgi-bin/iquery.pl
DEFAULT: FAILED TO DEFEND
Doc 33-1 PDF file
http://viewer.zoho.com/docs/n3bxi
ENTRY OF DEFAULT, PURSUANT TO FED. R. CIV. P. 55(a), AGAINST
DEFENDANT PLASTICON INTERNATIONAL, INC. AND
RELIEF DEFENDANTS LEXREAL CO. LLC,
PROMOTIONAL CONTAINERS, INC.
AND TELCOBLUE, INC.
It appearing from the file in this office that a return of service was filed showing service of the Complaint and Summons on:
i) Defendant Plasticon International, Inc., on October 23, 2008 and that said defendant has failed to file a pleading or otherwise defend;
ii) Relief Defendant LexReal Co. LLC on October 23, 2008 and that said relief defendant has failed to file a pleading or otherwise defend;
iii) Relief Defendant Promotional Containers, Inc., on October 23, 2008 and that said relief defendant has failed to file a pleading or otherwise defend; and
iv) Relief Defendant TelcoBlue, Inc., on October 23, 2008 and that said relief defendant has failed to file a pleading or otherwise defend.
THEREFORE, default is entered, pursuant to Fed.R.Civ.P. 55(a), as to Plasticon International, Inc., LexReal Co. LLC, Promotional Containers, Inc. and TelcoBlue, Inc.
Why would you want to? PLNIQ has been delisted. Chapter 11 was filed in 2007 and the case converted to Chapter 7 in 2008. Scroll down to the earlier posts for the story and timeline. Scottrade continues to show PLNIQ# as a symbol until the case has been adjudicated.
I dunno - I guess its not trading due to a court case?
03/19/2010 34 Clerk's ENTRY OF DEFAULT as to Lexreal Co. LLC, Plasticon International, Inc., Promotional Containers, Inc., Telcoblue, Inc. cc: COR (STB) (Entered: 03/19/2010)
Doc 34 PDF file
http://viewer.zoho.com/docs/q5Iph0
03/17/2010 33 NOTICE OF FILING by Securities And Exchange Commission re 32 MOTION for Entry of Default by Securities And Exchange Commission (Attachments: # 1 Proposed Order)(Gegenheimer, Nancy) (Entered: 03/17/2010)
Doc 33 PDF file
http://viewer.zoho.com/docs/z3cne
Doc 33-1 PDF file
http://viewer.zoho.com/docs/n3bxi
How come I can't buy more of this stock. I want to average down.
03/16/2010 32 MOTION for Entry of Default by Securities And Exchange Commission (Gegenheimer, Nancy) (Additional attachment(s) added on 3/18/2010: # 1 Proposed Order) (STB). (Entered: 03/16/2010)
Doc 32 PDF file
http://viewer.zoho.com/docs/nVbbbu
Doc 32-1
http://viewer.zoho.com/docs/bZbdch
Justice delayed is justice denied.
This is going to drag on for years to come.
Pacer update 19 Mar 10 Case Number 5:08-cv-00395-JBC Securities And Exchange Commission v. Turek et al
Date Filed # Docket Text
03/19/2010 34 Clerk's ENTRY OF DEFAULT as to Lexreal Co. LLC, Plasticon International, Inc., Promotional Containers, Inc., Telcoblue, Inc. cc: COR (STB) (Entered: 03/19/2010)
03/18/2010 ***MOTION SUBMITTED TO LGW for review: re 32 MOTION for Entry of Default by Securities And Exchange Commission (STB) (Entered: 03/18/2010)
03/17/2010 33 NOTICE OF FILING by Securities And Exchange Commission re 32 MOTION for Entry of Default by Securities And Exchange Commission (Attachments: # 1 Proposed Order)(Gegenheimer, Nancy) (Entered: 03/17/2010)
03/17/2010 NOTICE OF DEFICIENCY TO Nancy Gegenheimer re 32 MOTION for Entry of Default by Securities And Exchange Commission. Error: attorney failed to submit a proposed order as an electronic attachment to the motion. Entry by attorney; within 7 calendar days, prepare a pleading entitled Notice of Filing (with a certificate of service,) file the Notice using the event Notice of Filing, attach the proposed order, and create a link to the related docket entry. cc: COR (STB) (Entered: 03/17/2010)
03/16/2010 32 MOTION for Entry of Default by Securities And Exchange Commission (Gegenheimer, Nancy) (Additional attachment(s) added on 3/18/2010: # 1 Proposed Order) (STB). (Entered: 03/16/2010)
Defendant James N. Turek
jnturek@gmail.com; cell phone 859-806-0999
represented by James N. Turek
1795 Alysheba Way
Suite 3105
Lexington, KY 40509
859-368-8908
Defendant
Plasticon International, Inc.
Defendant
Lexreal Co. LLC
Defendant
Promotional Containers, Inc.
Defendant
Telcoblue, Inc.
PRO SE
https://ecf.kyed.uscourts.gov/cgi-bin/iquery.pl
01/11/2010 31 AMENDED SCHEDULING ORDER: (1) disclose expert witnesses by 3/1/2010; (2) supplementation of disclosures/responses due within 30 days of discovery of new info or by 30 days prior to close of discovery; (3) Discovery due by 4/15/2010; (4) Dispositive Motions due by 5/14/2010; (5) PRETRIAL CONFERENCE set for 8/12/2010 at 10:00 AM in LEXINGTON before Judge Jennifer B Coffman; (6) JURY TRIAL set for 9/13/2010 at 9:00 AM in LEXINGTON before Judge Jennifer B Coffman for 3 days; (7) requests to modify submitted on motion. Signed by Judge Jennifer B Coffman.(STB)cc: COR,D,JC (Entered: 01/11/2010)
Doc 31 PDF file
http://viewer.zoho.com/docs/fym4c
Pacer update 11 Jan 10 Case Number 5:08-cv-00395-JBC Securities And Exchange Commission v. Turek et al
Date Filed # Docket Text
01/11/2010 31 AMENDED SCHEDULING ORDER: (1) disclose expert witnesses by 3/1/2010; (2) supplementation of disclosures/responses due within 30 days of discovery of new info or by 30 days prior to close of discovery; (3) Discovery due by 4/15/2010; (4) Dispositive Motions due by 5/14/2010; (5) PRETRIAL CONFERENCE set for 8/12/2010 at 10:00 AM in LEXINGTON before Judge Jennifer B Coffman; (6) JURY TRIAL set for 9/13/2010 at 9:00 AM in LEXINGTON before Judge Jennifer B Coffman for 3 days; (7) requests to modify submitted on motion. Signed by Judge Jennifer B Coffman.(STB)cc: COR,D,JC (Entered: 01/11/2010)
Defendant James N. Turek
jnturek@gmail.com; cell phone 859-806-0999
represented by James N. Turek
1795 Alysheba Way
Suite 3105
Lexington, KY 40509
859-368-8908
Defendant
Plasticon International, Inc.
Defendant
Lexreal Co. LLC
Defendant
Promotional Containers, Inc.
Defendant
Telcoblue, Inc.
PRO SE
https://ecf.kyed.uscourts.gov/cgi-bin/iquery.pl
01/04/2010 30 JOINT STATUS REPORT by Securities And Exchange Commission, James N. Turek re 29 Order, Joint Status Report Pursuant to Order Entered 10-1-09 (Attachments: # 1 Proposed Order Amended Scheduling Order)(Gegenheimer, Nancy) Modified text, filers on 1/5/2010 (STB). (Entered: 01/04/2010)
Doc 30 PDF file
http://viewer.zoho.com/docs/mbdba0h
3. The parties are discussing possible resolution. Some discovery may be needed (included depositions) but the parties believe it would be counterproductive to try to complete that discovery before January 15, 2010, the current deadline for completing discovery.
Doc 30-1
http://viewer.zoho.com/docs/ybdb08
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