Defendants Ordered to Pay Millions in Penny Stock Case
8/26/2010 7:47:19 AM
The U.S. Securities and Exchange Commission has ordered five penny-stock distributors to pay millions of dollars in restitution and penalties for allegedly selling billions of unregistered shares in microcap companies to the unsuspecting public. K&L International Enterprises and its leader, Lawrence A. Powalisz, must turn over $14 million for their role in the alleged scam. Signature Worldwide Advisors and its chief, Stephen W. Carnes, must pay almost $1 million. A fifth defendant, Signature Leisure, will chip in roughly $1 million as well. The SEC has also banned all five defendants from participating in any penny stock offerings for the next three years, while it continues to pursue cases against two other parties – Enzyme Environmental Solutions and Jared E. Hochstedler – implicated in the same alleged scam.
