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.
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Source: Comtex Wall Street News
