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U.S. Securities and Exchange Commission

SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17261 / December 7, 2001

SEC ALLEGES FRAUD AGAINST POMPANO BEACH COMPANIES THAT RAISED $1.9 MILLION IN CONNECTION WITH UNREGISTERED SECURITIES OFFERING

SECURITIES AND EXCHANGE COMMISSION V. WORLD CLASS LIMOUSINES, INC., 1-800-GET-LIMO, INC., AND ANTHONY P. CALIENDO, JR., Case No. 01-7834-CIV-JORDAN (S.D. Fla., filed Dec. 5, 2001).

The Securities and Exchange Commission ("SEC" or the "Commission") announced that on December 5, 2001 it filed an emergency federal civil action against World Class Limousines, Inc. ("WCL"), 1-800-GET-LIMO, Inc. ("GET-LIMO") and Anthony P. Caliendo, Jr. ("Caliendo"), WCL and GET-LIMO's founder, president, chief executive officer and chairman (collectively, "defendants"). WCL and GET-LIMO are Pompano Beach, Florida companies that provided limousine services and were purportedly developing a nationwide Internet limousine reservation network. On the next day, the Honorable Adalberto Jordan, United States District Judge for the Southern District of Florida entered, among other things, a temporary restraining order and an asset freeze to halt the alleged on-going unregistered offering of securities by WCL, GET-LIMO and Caliendo. The Court also entered an order appointing a Receiver over WCL and GET-LIMO.

According to the SEC's complaint ("complaint"), WCL, GET-LIMO and Caliendo have been offering securities to investors both across the country and internationally. The complaint alleges that WCL and GET-LIMO have raised approximately $1.9 million dollars from at least 89 investors to develop its limousine businesses but that 32% of these funds were actually used for risky stock trading by Caliendo. Moreover, the complaint alleges, Caliendo has misappropriated at least $55,350 in investor funds for his own personal use. In addition, the complaint alleges that, unbeknownst to investors, WCL and GET-LIMO paid its sales representatives commissions totaling at least $160,000. The SEC further alleged that WCL and GET-LIMO, among other things, misled the public about the security and safety of the investment, the rate of return on the investment, the time frame in which it expected to engage in an initial public offering and about the existence of a purported joint venture which was critical to their Internet strategy.

As a result, the Commission charges WCL, GET-LIMO and Caliendo with violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC is also seeking in its lawsuit preliminary and permanent injunctions, disgorgement of ill-gotten profits and a civil money penalty against Caliendo.


*  SEC Complaint in this matter.


http://www.sec.gov/litigation/litreleases/lr17261.htm

Modified: 12/07/2001