Recycle Tech, Inc., et al.,

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23117 / October 24, 2014

Securities and Exchange Commission v. Recycle Tech, Inc., et al.,, Civil Action No. 12-cv-21656-JAL (S.D. Fla.)

District Court Enters Final Judgments of Permanent Injunction Against Defendants Anthony Thompson, Otc Solutions, LLC, Jay Fung, Pudong LLC, Ryan Gonzalez and Recycle Tech, Inc.

The Securities and Exchange Commission announced that on February 14, 2014, the United States District Court for the Southern District of Florida entered final judgments of permanent injunction and other relief, by consent, against defendants Anthony Thompson, OTC Solutions LLC, Jay Fung, and Pudong LLC, and that on April 11, 2014, it entered a final judgment, by consent, against defendant Ryan Gonzalez. The final judgments enjoin Thompson, OTC, Fung, Pudong and Gonzalez from violations of Sections 5(a), 5(c) of the Securities Act of 1933, and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. Thompson, OTC, Fung, and Pudong are also enjoined from violations of Section 17(a) of the Securities Act. In addition, the Court entered penny stock bars against Thompson, Fung, and Gonzalez. The final judgment against Gonzalez also enjoins him from aiding and abetting a violation of Sections 10(b), and 13(a), and Rules 10b-5, 13a-1 and 13a-13 of the Exchange Act. It also prohibits Gonzalez 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. In addition to injunctive relief, Thompson and OTC Solutions are found jointly and severally liable for disgorgement in the amount of $349,504.61 with prejudgment interest of $23,735.15. Fung and Pudong are jointly and severally liable for disgorgement in the amount of $456,457 with prejudgment interest of $30,998.36. The final judgments also impose civil penalties of $120,000 each against Thompson and Fung and dismiss the civil penalty claims against OTC and Pudong. The Court did not order Gonzalez to pay a civil penalty based on representations in his sworn Statement of Financial Condition and other documents and information he submitted to the Commission.

Previously, on November 16, 2012, the Court entered a default judgment of permanent injunction against Recycle Tech, Inc. The judgment enjoins Recycle Tech from violations of Section 5(a) and 5(c) of the Securities Act, violations of Sections 10(b) and 13(a) of the Exchange Act and Rules 10b-5, 13a-1 and 13a-13, thereunder.

On May 4, 2012, the Court entered final judgments of permanent injunction and other relief, by consent, against defendants Kevin Sepe and David Rees, and a final judgment against relief defendant Charter Consulting Group, Inc. The Court also entered a final judgment against Ronny J. Halperin on May 11, 2012. The final judgments against Sepe and Halperin enjoin them from violations of Sections 5(a) and 5(c) of the Securities Act and aiding and abetting violations of Section 10(b) and Rule 10b-5 of the Exchange Act, and ordered penny stock bars against them. The final judgment also ordered Sepe to pay $150,000 in disgorgement and $9,125 in prejudgment interest, on a joint and several basis with Charter Consulting, and imposes a $125,000 civil penalty against him. The final judgment imposes a five-year officer and director bar against Halperin, the payment of $235,060 in disgorgement, $15,000 in prejudgment interest, and a $75,000 civil penalty. The final judgment against Rees permanently enjoins him from future violations of Section 5(a) and 5(c) of the Securities Act, and orders him to pay $5,982 in disgorgement, $406.25 in prejudgment interest, and imposes a $7,500 civil penalty. It also prohibited Rees, for a period of one year, from providing professional legal services to any person in connection with the offer or sale of securities to, or claiming an exemption under Section 4(1) of the Securities Act, including, without limitation, participating in the preparation or issuance of any opinion letter related to such offerings. The final judgment against Charter Consulting ordered the company to pay, on a joint and several basis with Sepe, $150,000 in disgorgement and $9,125 in prejudgment interest.

The SEC commenced this action by filing its complaint on May 2, 2012, followed by an amended complaint on August 17, 2012. Both the original and amended complaints alleged the defendants violated the securities laws as described above.

For additional information, see Press Release No. 2012-82.