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U.S. Securities and Exchange Commission

SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 16874 / January 29, 2001

Securities And Exchange Commission v. Friendly Power Co., LLC, Friendly Power Co., Inc., Friendly Power Franchise Co., Scott J. Levine, Sabrina Levine and Dwight Stephens, Case No. 98-2902-CIV-KING (S.D. Fla.)

The Securities and Exchange Commission (SEC) announced today that on December 22, 2000, the Honorable James Lawrence King of the United States District Court for the Southern District of Florida approved a settlement between the SEC and Defendants Scott and Sabrina Levine. Under the terms of the settlement, the Levines agreed to pay a lump sum of $225,000 to a Court-appointed receiver for the benefit of investors in Friendly Power Company. The Levines also obtained dismissal with prejudice of their appeal of the District Court's May 12, 1999 decision where the court found the Levines sold unregistered non-exempt securities and ordered them jointly to disgorge $2.4 million and pay a $100,000 penalty each. As part of the settlement, the Court vacated its penalty order and waived payment of the remaining disgorgement based upon the Levines' demonstrated financial inability to pay. The Levines mortgaged their homestead property in Plantation, Florida to obtain the requisite funds, which they paid to the receiver on January 11, 2001.

http://www.sec.gov/litigation/litreleases/lr16874.htm


Modified:01/20/2001