Plasticon International, Inc. (fka PLNIQ)

[scion]

Lexington Businessman Indicted For Securities And Tax Fraud

Posted: Mar 4, 2011 2:11 PM
http://www.lex18.com/news/lexington-businessman-indicted-for-securities-and-tax-fraud

The former president of a Lexington-based company was indicted Thursday for securities and tax fraud.

According to the indictment, from 1994 to 2007, James Norman Turek, 65, of Lexington headed Plasticon International, Inc., which produced recycled plastic products.

The indictment alleges that Turek engaged in a securities fraud scheme from 2004 to 2006 in which he promoted Plasticon stock by releasing false and misleading information.

He allegedly mislead potential investors by issuing press releases that falsely inflated Plasticon's profits and the value of its patents. The indictment also alleges that Turek fraudulently issued Plasticon stock to himself by backdating promissory notes that falsely claimed that he had previously loaned millions of dollars to the company. As a further part of his fraud scheme, he allegedly enriched himself by selling Plasticon stock and by directing payments for that stock to be sent to his private company, LexReal Co. LLC.

Turek is also accused of filing false tax returns for the years 2003 through 2007 by substantially under reporting the amount of his income. According to the indictment, he falsely reported income of only $36 in 2003 and no income during 2004 and 2005.

Turek is currently scheduled to appear in United States District Court in Lexington on March 25, 2011, at 1 p.m. If convicted, Turek faces a maximum prison sentence of 20 years. However, any sentence following conviction would be imposed by the court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.

http://www.lex18.com/news/lexington-businessman-indicted-for-securities-and-tax-fraud