SEC v. Carlucci; and David M. Wolfson, No. LR-18585 — Press Release
raw: David M. Wolfson et al.
David M. Wolfson et al., No. LR-18585
The SEC accused Carlucci and Wolfson of violating a 2003 court asset freeze by transferring frozen funds and property—$49,322 and $13,458.15 respectively—linked to a Laos-based boiler room scheme that defrauded international investors in microcap stocks, and is seeking contempt sanctions, repayment, property restoration, and sworn accountings.
In October 2003, the SEC filed a complaint against 21 individuals and entities involved in a boiler room scheme that sold fraudulent microcap securities to hundreds of investors in the UK, Australia, and New Zealand, operating from Vientiane, Laos. Carlucci and Wolfson were among those subject to an asset freeze order, but both allegedly violated it: Carlucci transferred $49,322 in frozen funds and obtained wrongful relief, while Wolfson transferred frozen real and personal property and wrongfully obtained $13,458.15. The SEC filed contempt motions against both, demanding repayment of misappropriated funds, restoration of transferred assets, and sworn accountings of all transactions.
In October 2003, the SEC filed a complaint against twenty-one individuals and entities involved in a fraudulent scheme to sell microcap securities to hundreds of investors primarily in the UK, Australia, and New Zealand, using a boiler room operation based in Vientiane, Laos. As part of the enforcement action, the court issued an asset freeze order on October 16, 2003, freezing the assets of several defendants, including Carlucci and Wolfson. Both defendants allegedly violated this order: Carlucci transferred $49,322 from frozen accounts and wrongfully obtained relief from the freeze, while Wolfson transferred both real and personal property subject to the freeze and wrongfully obtained $13,458.15 in relief. The SEC responded by filing contempt motions against both individuals, seeking to hold them in contempt of court for willfully disregarding the judicial order. The Commission demands that Carlucci repay the misappropriated funds and provide a sworn accounting of all transactions, while requiring Wolfson to restore all transferred property, repay the wrongful relief, and also submit a sworn accounting. The underlying fraud involved deceptive sales tactics targeting overseas investors with worthless or inflated microcap stocks, a common boiler room tactic. If found in contempt, both could face additional penalties beyond restitution, including fines or imprisonment, underscoring the severity of their defiance of the court’s authority.
Extracted insights
- $49K $49,322 $10K–$100K
- $13K $13,458 $10K–$100K
- organization The Commission
- the Commission filed a Complaint 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
- the Commission obtained an order which froze the assets of a number of defendants including Carlucci and Wolfson
- Carlucci transferred monies in violation of the October 16, 2003, order
In October 2003 the Commission filed a Complaint 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 and Wolfson. The contempt motion against Carlucci alleges that in violation of the October16, 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. The contempt motion against Wolfson alleges that in violation of the October16, 2003, order, Wolson transferred monies from accounts subject to the asset freeze, transferred both real and personal property subject to the asset freeze, and wrongfully obtained $13,458.15 in relief from the asset freeze. The Commission is seeking that Carlucci be held in contempt of the court's order, and is requesting that Carlucci be ordered to repay the funds transferred in violation of the court's asset freeze order, repay the funds Carlucci wrongfully obtained in relief from the asset freeze order and provide a sworn accounting. The Commission is seeking that Wolfson be held in contempt of the court's order, and is requesting that Wolfson be ordered to repay the funds transferred in violation of the court's asset freeze order, take all necessary actions to restore all properties transferred in violation of the court's asset freeze order, repay the funds Wolfson wrongfully obtained in relief from the asset freeze and provide a sworn accounting.
In October 2003 the Commission filed a Complaint 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 and Wolfson. The contempt motion against Carlucci alleges that in violation of the October16, 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. The contempt motion against Wolfson alleges that in violation of the October16, 2003, order, Wolson transferred monies from accounts subject to the asset freeze, transferred both real and personal property subject to the asset freeze, and wrongfully obtained $13,458.15 in relief from the asset freeze. The Commission is seeking that Carlucci be held in contempt of the court's order, and is requesting that Carlucci be ordered to repay the funds transferred in violation of the court's asset freeze order, repay the funds Carlucci wrongfully obtained in relief from the asset freeze order and provide a sworn accounting. The Commission is seeking that Wolfson be held in contempt of the court's order, and is requesting that Wolfson be ordered to repay the funds transferred in violation of the court's asset freeze order, take all necessary actions to restore all properties transferred in violation of the court's asset freeze order, repay the funds Wolfson wrongfully obtained in relief from the asset freeze and provide a sworn accounting.