The Real DTCC Discussion

[jbsliverer]

Just a note. This last case of Fraud connected right back to the same people with connected cases and individuals in IPWG dots that I posted. Yep, lets see IPWG or any of these scammy restricted stocks bring forth some record of transactions and any more dots that can be exposed.

FACTUAL ALLEGATIONS
A. Prior Commission Action Involving Similar Unlawful Scheme
24. On September 24,2009, the Commission filed a civil injunctive action in U.S. District Court for the Middle District of Florida against Stephen W. Carnes ("Carnes"), Lawrence A. Powalisz ("Powalisz"), and others alleging that they violated Section 5 of the Securities Act through the unlawful sale of purportedly unrestricted stock, including stock acquired under wrap around agreements. K&L International Enterprises, Inc., e t aI., 6:09-cv­1638-GAP-KRS (M.D. Fla. Sep. 24, 2009) ("K&L"). Linton wrote at least two legal opinion letters on transactions that were alleged in K&L to have violated Section 5 ofthe Securities Act.
25. On September 29,2009, the K&L Court issued preliminary injunctions that enjoined Carnes, Powalisz, and other defendants and their "agents, directors, officers, employees, attorneys, and those persons in active concert or participation" with them from violating the registration requirement of Section 5 ofthe Securities Act. Id., Docket No. 14 (Sep. 29,2010). Pursuant to a settlement, the Court imposed permanent injunctions against Carnes and Powalisz in 2010. Id., Docket Nos. 53 and 59 (May 14 and Aug. 18,2010).
26. By their plain terms, the preliminary and permanent injunctions in K&L against Carnes, Powalisz, and their "agents, ... attorneys, and those persons in active concert or participation with [them]" extended to Linton, who had issued some of the opinion letters for the K&L defendants.
B. Defendants' Scheme to Evade Section 5 of the Securities Act
27. Defendants employed a scheme to acquire and sell large quantities ofpurportedly unrestricted stock under wrap around agreements that closely resembles the methods involved in K&L.
28. Two ofthe defendants in K&L, Carnes and Powalisz, had retained Linton to write legal opinion letters related to the issuance and sale ofpurportedly unrestricted stock under wrap around agreements. Linton issued at least two legal opinion letters for Carnes and Powalisz on transactions that were alleged to have violated the federal securities laws in K&L.
29. In addition, Scucci was employed by a business colleague of Carnes and Powalisz, who also participated in wrap around agreement transactions and had hired Linton to write legal opinion letters for him. While employed in that context, Scucci participated in these transactions by, among other things, (1) communicating with Linton to obtain legal opinion letters, (2) communicating with at least one transfer agent about the issuance of purportedly unrestricted stock on behalf ofher employer, and (3) obtaining and transmitting documents requested by Linton and/or the transfer agent in furtherance ofthe transactions.
30. Shortly after the Commission filed K&L and the defendants were enjoined, Scucci and Beach formed Protege and Capital Edge, respectively, to engage in nearly-identical transactions involving wrap around agreements to obtain large quantities of purportedly unrestricted stock, which they sold in unregistered transactions.
31. Scucci formed Protege in January 2010, and Beach formed Capital Edge in May 2010. Scucci and Beach were the sole managing members oftheir respective companies. Scucci and Beach caused Protege and Capital Edge to enter into wrap around agreements involving several Issuers.

http://www.sec.gov/litigation/complaints/2012/comp-pr2012-80.pdf