GEMZ Corporation (GMZP)

[surfkast]

SEC Whacks Florida Penny Stock Game
VIRGINIA CHAMLEE / September 28, 2009
ORLANDO (CN) - Three men and their four companies defrauded investors of $7 million by selling billions of unregistered shares of penny stocks, the SEC claims in Federal Court. It sued Stephen Carnes, Lawrence Powalisz and Jared Hochstedler and their companies, K&L International Enterprises, Signature Leisure, Signature Worldwide Advisors, and Enzyme Environmental Solutions.

All four companies were "controlled primarily by one person, with limited operational histories and minimal revenue," the SEC said.

Carnes, 45, of Apopka, Fla., runs Signature Leisure and Signature Worldwide; Powalisz, 45, of Winter Park, Fla., runs K&L; and Hochstedler, 33, of Fort Wayne, Ind., runs Enzyme; the SEC calls them the "distributor defendants."