2004-03-24 sec-litreleases litigation_release 64 KB 1,770 chars

SEC v. David M. Wolfson; Gino Carlucci; and G&G Capital, No. LR-18635, District of Utah (Mar. 24, 2004) — Press Release

raw: David M. Wolfson et al.

David M. Wolfson et al., No. LR-18635 (Mar. 24, 2004)

Caption: SEC v. David M. Wolfson, et al.

summary

David M. Wolfson and 20 others were charged by the SEC for operating a Vientiane-based boiler room that defrauded investors in the UK, Australia, and New Zealand by selling fraudulent microcap securities, while Gino Carlucci and G&G Capital were held in contempt for violating an asset freeze by transferring $49,322 and filing improper bankruptcy petitions, leading to court orders to surrender assets and provide a sworn accounting.

paragraph

The U.S. Securities and Exchange Commission filed a complaint in October 2003 against David M. Wolfson and 20 other defendants for operating a boiler room in Vientiane, Laos, that sold fraudulent microcap securities to hundreds of investors in the UK, Australia, and New Zealand. On March 17, 2004, U.S. District Judge Dale A. Kimball found Gino Carlucci and his corporation G&G Capital in contempt for violating a court-ordered asset freeze by transferring $49,322 in frozen funds and filing improper bankruptcy petitions in Arizona. The court ordered Carlucci to withdraw the bankruptcy filings, surrender all assets to the court-appointed receiver, and provide a sworn accounting of all accounts under his control.

narrative

In October 2003, the U.S. Securities and Exchange Commission filed a complaint against David M. Wolfson and 20 other individuals and entities for operating a boiler room in Vientiane, Laos, that fraudulently sold microcap securities to hundreds of investors primarily in the UK, Australia, and New Zealand. The SEC obtained an asset freeze order against key defendants, including Gino Carlucci and his corporation G&G Capital, to prevent the dissipation of funds. In February 2004, the SEC filed a contempt motion alleging that Carlucci and G&G had violated the freeze by transferring $49,322 in frozen assets and filing improper bankruptcy petitions in Arizona to evade court oversight. On March 17, 2004, U.S. District Judge Dale A. Kimball granted the motion, holding Carlucci and G&G in contempt and ordering them to immediately withdraw the bankruptcy filings. The court also mandated that Carlucci surrender all assets to the court-appointed receiver and provide a sworn accounting of every account he had ever controlled. This contempt ruling was part of a broader enforcement action targeting an international securities fraud ring, underscoring the SEC’s efforts to combat cross-border boiler room schemes. The case highlighted the use of foreign jurisdictions to obscure fraudulent activity and the courts’ willingness to impose strict penalties for defying asset freezes.

Enriched metadata

Scheme: boiler-room (100%)
Court: District of Utah
Entity: David M. Wolfson

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

Extracted insights

Dollar amounts 1

$49K $49,322 $10K–$100K

Entities 1

person Dale a. Kimball

Triples 4

David M. Wolfson et al. were sued by U.S. Securities and Exchange Commission
Gino Carlucci violated October 16, 2003, order freezing assets of defendants in S.E.C. v. David M. Wolfson et al.
G&G Capital violated October 16, 2003, order freezing assets of defendants in S.E.C. v. David M. Wolfson et al.
Dale A. Kimball entered Order of Contempt against Gino Carlucci and G&G Capital

View original SEC litigation releasesec.gov

Extracted body text (1,770c)

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 18635 / March 24, 2004 S.E.C. v. David M. Wolfson et al., Docket No. 2:03CV00914DAK (USDC, D.Ut.) On March 17, 2004 the Honorable Dale A. Kimball, United States District Judge for the District of Utah, entered an Order of Contempt against Gino Carlucci ("Carlucci") and G&G Capital ("G&G"), a corporation controlled by Carlucci. The Court found that Carlucci and G&G had violated an October 16, 2003, order issued by the United States District Court for the District of Utah freezing the assets of certain defendants in S.E.C. v. David M. Wolfson et al. Carlucci was ordered to provide a sworn accounting of all accounts over which he now has or has ever had control, ordered to withdraw the bankruptcy petitions Carlucci and G & G had filed in the United States Bankruptcy Court District of Arizona, and ordered to surrender all their assets to the Receiver previously appointed in this case. In October 2003 the Securities and Exchange 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 the October 2003 action, the Commission obtained an order, among other things, freezing the assets of a number of defendants including Carlucci and Wolfson. The contempt motion, filed February 18, 2004, alleged that in violation of the October 16, 2003, order, Carlucci transferred monies from accounts subject to the asset freeze order and wrongfully obtained $49,322.00 in relief from the asset freeze.

OCR text (1,770c · plain-text · 99% conf)