LITIGATION RELEASE NO. 17229 / November 13, 2001
SECURITIES AND EXCHANGE COMMISSION v. DC&Z, LLC, NUNZIO DESANTIS, JOSEPH ZAPPALA, RICHARD COOK, FRANCISCO URREA AND GREG CARABAJAL, Civil Action No. 01 C 6574 (N.D. Ill.)
The Securities and Exchange Commission (Commission) today announced that on August 23, 2001, it filed an application in federal district court in Chicago seeking an order requiring compliance with subpoenas issued by the Commission to DC&Z, LLC (DC&Z), Nunzio DeSantis, Joseph Zappala, Richard Cook, Francisco Urrea, and Greg Carabajal (the Respondents). DC&Z is a Florida limited liability company with its principal place of business in Albuquerque, New Mexico. DC&Z's members are DeSantis, Cook and Urrea, residents of New Mexico, and Zappala, a resident of New York. Carabajal, a resident of New Mexico, is also associated with DC&Z. The subpoenas sought documents and testimony relating to their investment activities.
The Respondents failed to comply with the subpoenas issued by the Commission and the Commission, in its application, argued that the Respondents had no valid justification for their failure to comply. On or around August 30, 2001, Respondents filed a Motion to Quash the subpoenas. On September 12, 2001, the Court denied the Respondent's Motion to Quash and granted all of the relief requested by the Commission.