Plaintiff Securities and Exchange Commission (“SEC”) respectfully moves this Court for an Order granting the SEC summary judgment pursuant to Fed. R. Civ. P. 56 against defendant James N. Turek (“Turek”) on all four of the claims brought against him in the SEC’s Complaint (Dkt. #1).[1] In support of this motion, the SEC relies upon the brief submitted herewith and the Declaration of Jeffrey R. Thomas and attachments thereto.
I. SUMMARY
Between January 2005 and April 2007, Turek fraudulently misappropriated approximately $2.6 million of proceeds from an unregistered, multi-state securities offering of Plasticon International, Inc. (“Plasticon”), a public company he controlled. In addition, between May 2005 and April 2006, Turek knowingly, or at least recklessly, caused Plasticon to issue false and misleading press releases concerning its financial condition, outstanding shares, and intellectual property. Those false press releases dramatically inflated the price of Plasticon’s stock, including shares Turek was selling to the public. Finally, the offering of Plasticon’ssecurities conducted by Turek did not qualify for any exemptions from registration under the Securities Act of 1933 (“Securities Act”). As a result of these activities, Turek has violated the antifraud provisions of the Securities Act and the Securities Exchange Act of 1934 (“Exchange Act”) and the registration provisions of the Securities Act. The SEC therefore seeks an Order holding Turek responsible for his misconduct and protecting the investing public from possible future securities law violations by him, which would include: restraining and enjoining Turek from violating the relevant sections of the federal securities laws; barring Turek from participating in any offering of penny stock; barring Turek from serving as an officer or director of a public company; requiring Turek to disgorge all ill-gotten gains; and imposing a third-tier civil penalty on Turek.
[1] The Clerk has entered a default against all of the other defendants named in the Complaint. See Entry of Default, Pursuant to Fed. R. Civ. P. 55(a), Against Defendant Plasticon International, Inc. and Relief Defendants LexReal Co., LLC, Promotional Containers, Inc. and TelcoBlue, Inc. [Dkt. #34].
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