Telcoblue (fka TBLU)

[scion]

THE GRAND JURY CHARGES:

INTRODUCTION

During all times relevant to this Indictment:

Plasticon International, Inc., was a corporation with its principal place of business in Lexington, Kentucky, and was also known at various times as International Plastics, Inc., International Plastics Corporation, and Wicklund Holding Company (collectively, "Plasticon"). Plasticon was in the business ofproducing recycled plastic products, and its securities were publicly traded. In reports filed with the United States Securities and Exchange Commission ("the SEC"), Plasticon reported no revenue for 2003 and 2004 and revenue of $65,565 for 2005.

2. JAMES NORMAN TUREK was a resident of Lexington, Kentucky. He served as the president and chief executive officer of Plasticon from approximately 1994 until 2007. During much of this time, he was the sole director ofthe Plasticon board. As an officer and director of Plasticon, he was considered a control person of Plasticon and thus was subject to restrictions by the SEC on the amount of Plastic on stock that he could sell and the manner in which he could sell it.

3. LexReal Co. LLC ("LexReal") was a limited liability corporation with its principal place of business in Lexington, Kentucky and was solely owned by JAMES NORMAN TUREK.

SCHEME TO DEFRAUD

4. From on or about March 15, 2004, to on or about September 15, 2006, JAMES NORMAN TUREK signed resolutions as the director ofthe Plasticon board to issue to himself more than five billion shares of Plastic on stock as repayment of false and backdated promissory notes. The promissory notes, which purported to be dated from 1989 to 2002, falsely claimed that Plasticon owed him more than $5 million as a result of loans he had made to Plasticon. In fact, the amount of money, if any, that he had loaned to Plasticon was substantially less than the amounts claimed on the notes.

5. To complete the issuance of stock to himself, JAMES NORMAN TUREK caused the resolutions to be sent to a transfer agent to create Plasticon stock certificates. For example, on or about September 27, 2006, he caused a Plasticon board resolution, which provided that Plasticon owed him $1,333,771 pursuant to convertible promissory notes dated August 1, 1989, to July 24, 1997, to be sent to the transfer agent for the issuance of Plastic on stock certificates.

6. In order to circumvent the SEC rules governing the sale of stock by a control person, JAMES NORMAN TUREK purported to give the Plasticon stock that he had received pursuant to the false and backdated promissory notes to nominees, including his children, his elderly aunt, and various other people. In fact, he maintained control over the stock even though his name no longer appeared on the stock certificates. For example, he continued to engage in stock transactions in the name ofhis elderly aunt even after she had died.

7. JAMES NORMAN TUREK entered into agreements to sell stock to various companies ("the investor companies"). He caused his nominees to transfer the Plasticon stock to the investor companies and directed the investor companies to transfer payment for the stock to his private company, LexReal. The investor companies then sold the Plasticon stock to the investing public.

8. JAMES NORMAN TUREK also entered into agreements to pledge stock to investor companies in exchange for loans. He caused his nominees to pledge the Plasticon stock to the investor companies and directed the investor companies to transfer the loan proceeds to his private company, LexReal. When the loans were not repaid, the investor companies received title to the stock. The investor companies sold the Plasticon stock to the investing public.

9. In order to create demand for Plasticon stock by the investing public, JAMES NORMAN TUREK caused Plasticon to issue press releases that contained false and misleading statements about, among other things, Plasticon's profitability. On or about June 17,2005, he caused Plastic on to issue a press release that falsely stated: "Plasticon International is profitable as of the second quarter of2005." On or about June 21,2005, and on or about August 24,2005, he caused Plasticon to issue press releases falsely repeating that Plasticon was profitable as of the second quarter of 2005. In fact, Plasticon lost more than $3 million during the second quarter of 2005, which ended on June 30, 2005. On or about October 4, 2005, he caused Plasticon to issue a press release that falsely stated that Plasticon "has demonstrated profitability." In fact, Plasticon lost more than $5 million during the third quarter of 2005, which ended on September 30, 2005.

10. In order to create demand for Plasticon stock by the investing public, JAMES NORMAN TUREK caused Plasticon to issue a press release that contained false and misleading statements about Plasticon's ownership ofpatents. On or about September 12, 2005, he caused Plasticon to issue a press release that falsely stated that Plasticon "recently received confirmation of the company's patent for the PAC Chair III product, the latest innovation from the company." The press release also falsely stated: "The PAC Chair III is the most recent patent that the company has received." In fact, the patent for the PAC Chair III had been issued to him personally, not to Plasticon. Moreover, on the date ofthe press release, the patent for the PAC Chair III was held in his name and the names of his two sons, not Plasticon.

11. In order to create demand for Plasticon stock by the investing public, JAMES NORMAN TUREK also caused Plasticon to issue press releases that contained false and misleading statements about the value ofPlasticon's patents. On or about May 18, 2005, he caused Plasticon to issue a press release that stated: "Our patents were recently valued at $16 million ...." On or about September 12,2005, he caused Plasticon to issue a press release that stated: "According to an independent appraiser and the federal courts, Plasticon's recycled plastic product patents are valued at $20 million." On or about April 25, 2006, he caused Plasticon to issue a press release that stated: "At present, an independent appraisal of the Company's patents and molds is in excess of $20,000,000.00." In fact, the patents had been valued on or about December 1,2000, several years prior to the issuance of these press releases. Moreover, one patent had lapsed on or about May 11, 2004, another expired on or about March 17,2006, and a third was scheduled to expire on or about February 5, 2008.

12. In order to create demand for Plasticon stock by the investing public, JAMES NORMAN TUREK made false and misleading statements about his receipt of a salary from Plasticon. On or about September 14, 2006, during an interview broadcast on the internet, he stated that he had not taken a salary from Plasticon from 2003 through the first half of 2006 and had been "working for nothing." In fact, on or about March 30, 2004, and on or about April 23, 2004, he caused Plasticon to issue stock with a total value ofmore than $1 million to himself in lieu of his salary and bonus for the years 2003 and 2004. In addition, from 2004 through 2006, he caused Plasticon to issue stock to him as repayment of millions of dollars of false and backdated promissory notes.

13. In order to conceal from the investing public that he was not entitled to receive the stock that he was causing Plasticon to issue to him pursuant to the promissory notes, JAMES NORMAN TUREK caused Plasticon to file with the SEC annual reports on Forms 10-KSB ("Annual Reports") and quarterly reports on Forms 10-QSB ("Quarterly Reports") that contained false and misleading statements concerning the circumstances under which Plasticon had issued the stock. From on or about May 4, 2006, to on or about September 7, 2006, he signed and caused to be filed with the SEC Annual Reports for the years 2004 and 2005 and Quarterly Reports for the first, second, and third quarters of2005 that falsely stated that, during the years 1989 through 2001, he had advanced $2,139,122 to Plasticon in return for promissory notes. In fact, the amount of money, if any, that he had advanced to Plasticon was substantially less than the amount that he caused to be stated in Plasticon's Annual and Quarterly Reports.

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UNITED STATES OF AMERICA V. JAMES NORMAN TUREK
03/03/2011 1 INDICTMENT returned in open court as to James Norman Turek (1) count(s) 1-8, 9-10, 11-13. (Attachments: # 1 Case Assignment) (KJR) (Entered: 03/04/2011)

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