2004-10-14 sec-litreleases litigation_release 65 KB 2,732 chars

SEC v. Gino Carlucci; and G&G Capital, LLC, No. LR-18930, District of Utah (Oct. 14, 2004) — Press Release

raw: David M. Wolfson et al.

David M. Wolfson et al., No. LR-18930 (Oct. 14, 2004)

Caption: SEC v. Gino Carlucci, et al.

summary

Gino Carlucci and his company G&G Capital, LLC were ordered to pay over $2.1 million in disgorgement, interest, and penalties, and permanently barred from securities industry roles after consenting to a judgment for orchestrating a fraudulent boiler room scheme that sold microcap securities to international investors via Laos, violating antifraud and reporting provisions of federal securities laws.

paragraph

Gino Carlucci and G&G Capital, LLC were found to have violated Sections 10(b) and 17(a) of the federal securities laws by engaging in a fraudulent scheme to sell microcap securities to investors in the UK, Australia, and New Zealand through a boiler room in Vientiane, Laos. The SEC obtained a final judgment ordering them to pay $1,012,453 in disgorgement, $64,033 in prejudgment interest, and a $1,076,486 civil penalty, while also enjoining them from future violations. Carlucci was additionally barred from serving as an officer or director of any SEC-registered issuer or participating in penny stock offerings, and prohibited from violating reporting and certification rules under the Exchange Act.

narrative

Gino Carlucci and his company G&G Capital, LLC were named in an SEC enforcement action for orchestrating a fraudulent boiler room scheme that sold microcap securities to hundreds of investors primarily in the UK, Australia, and New Zealand, using a call center located in Vientiane, Laos. The SEC alleged that Carlucci and G&G violated Sections 10(b) and 17(a) of the federal securities laws through deceptive practices, and Carlucci was further held in contempt for violating a court-ordered asset freeze in March 2004. On October 6, 2004, a federal judge entered a final judgment against them, ordering $1,012,453 in disgorgement, $64,033 in prejudgment interest, and a $1,076,486 civil penalty. Carlucci was permanently barred from acting as an officer or director of any SEC-registered company or participating in any penny stock offering, and enjoined from violating Exchange Act reporting rules including Rule 13a-14 and Sections 13(a), 12b-20, 13a-11, and 13a-13. The judgment, entered by consent without admission of guilt, also required Carlucci and G&G to dismiss a pending adversary proceeding they had filed against the SEC in bankruptcy court. The case was part of a broader action against 21 defendants involved in the same international microcap fraud scheme.

Enriched metadata

Scheme: boiler-room (100%)
Court: District of Utah
Outcome: settled
Disgorgement: $1,012,453
Civil penalty: $1,076,486
Entity: Gino Carlucci

Classified boiler-room(confidence 100%). EDGAR detection: forms Form D· recall 50% / precision 4%. detection rule →

Extracted insights

Dollar amounts 3

$1.08M $1,076,486 $1M–$10M
$1.01M $1,012,453 $1M–$10M
$64K $64,033 $10K–$100K

Entities 4

company final judgment against gino carlucci and g&g capital, llc
company g&g capital, llc
person gino carlucci
company gino carlucci and g&g capital, llc

Triples 5

Honorable Dale A. Kimball entered Final Judgment against Gino Carlucci and G&G Capital, LLC
Gino Carlucci and G&G Capital, LLC were permanently enjoined from future violations of the antifraud provisions of the federal securities laws
Gino Carlucci and G&G Capital, LLC were ordered to pay disgorgement of $1,012,453.00
Litigation Release No. 18930 was issued on October 14, 2004
G&G Capital, LLC is controlled by Gino Carlucci

View original SEC litigation releasesec.gov

Extracted body text (2,732c)

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 18930 / October 14, 2004 S.E.C. v. David M. Wolfson et al., Docket No. 2:03CV00914DAK (USDC, D.Ut.) On October 6, 2004, the Honorable Dale A. Kimball, United States District Judge for the District of Utah, entered a Final Judgment against Gino Carlucci ("Carlucci") and G&G Capital, LLC ("G&G"), a limited liability company controlled by Carlucci. Carlucci and G&G were permanently enjoined from future violations of the antifraud provisions of the federal securities laws and ordered to pay disgorgement of $1,012,453.00 plus prejudgment interest thereon together with a civil penalty of $1,076,486.31. Carlucci was also enjoined from future violations of the issuer reporting and officer certification provisions of the Securities Exchange Act of 1934 and placed under officer-director and penny stock bars. Finally, Carlucci and G & G were ordered to dismiss an adversary proceeding they had filed against the Commission in the United States Bankruptcy Court for the District of Arizona. In October 2003, the Commission filed a Complaint, in the United States District Court for the District of Utah, against twenty-one individuals and entities involved in a scheme to sell securities in five United States-based microcap issuers to hundreds of investors located primarily in the United Kingdom, Australia and New Zealand through a boiler room located in Vientiane, Laos. In that action, the Commission obtained an order which , among other things, froze the assets of a number of defendants, including Carlucci. On March 17, 2004, the Court found Carlucci and G&G in contempt of the order freezing Carlucci's assets. The Final Judgment specifically enjoins Carlucci and G&G from future violations of Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder, and Section 17(a) of the Securities Act of 1933 and orders Carlucci and G&G to pay disgorgement of $1,012,453.00, together with prejudgment interest thereon in the amount of $64,033.31, and a civil penalty of $1,076,486.31. The Final Judgment, to which the defendants consented without admitting or denying the allegations of the Commission's complaint, also enjoins Carlucci from future violations of Rule 13a-14 under the Exchange Act and from aiding and abetting violations of Section 13(a) of the Exchange Act and Rules 12b-20, 13a-11, and 13a-13 thereunder. The judgment also bars Carlucci from acting as an officer or director of any issuer that has a class of securities registered pursuant to Section 12 of the Exchange Act or that is required to file reports pursuant to Section 15(d) of the Exchange Act as well as barring Carlucci from participating in any offering of penny stock.

OCR text (2,732c · plain-text · 99% conf)