World Class Limousines, Inc., 1-800-GET-LIMO, Inc. and 1-800-GET-LIMO Service, Inc.

On December 5, 2001, the SEC filed a civil action against World Class Limousines (WCL), 1-800-GET-LIMO, and Anthony Caliendo in connection with their fraudulent and unregistered offering of WCL securities. The SEC alleged that the defendants raised approximately $1.9 million from at least 89 investors worldwide purportedly to develop its limousine businesses, but funds were actually used to engage in risky stock trading by Caliendo, to pay undisclosed commissions, and to pay for Caliendo's personal expenses. For more information about the SEC's action, you can read Litigation Release Nos. 17261 (Dec. 7, 2001) and 17341 (Jan. 25, 2002).

The Court appointed David R. Chase as Receiver for WCL.  In the Receiver’s last status report, he advised all shareholders and creditors of WCL, 1-800-Get-Limo, Inc. and 1-800-Get-Limo Service, Inc. (the “Receivership Entities”) that it was unlikely that there would be sufficient funds recovered to make a distribution.  Unfortunately, that has proven to be the case.  The Receivership Entities’ only potential source of recovery is the Federal Court Disgorgement Judgment obtained by the SEC against Defendant Anthony Caliendo. 

The Judgment obtained by the SEC is for $1.5 million, plus pre-judgment interest and requires Caliendo to pay a civil penalty in the amount of $120,000.  Caliendo has represented to the Court that he does not have anywhere near sufficient funds to satisfy the Judgment.  The SEC and the Receiver, along with his legal counsel, are currently in the process of taking financial discovery from Caliendo and third-parties to determine whether Caliendo possesses funds sufficient to satisfy the Judgment.  This process is ongoing, but is expected to be completed within the next few months.  Upon the conclusion of the discovery process, the Receiver will issue an update to advise the shareholders and creditors as to whether sufficient funds were discovered and secured from Caliendo such that a distribution could be made, or not.  In the event Caliendo does not have sufficient funds with which to repay the Judgment for the benefit of shareholders and creditors, the Receiver will request that the Receivership be closed.

http://www.sec.gov/divisions/enforce/claims/worldclasslimo.htm