Litigation Release No. 18365 / Septmeber 26, 2003
NEW JERSEY WOMAN HELD IN CONTEMPT IN INTERNET SCAM
SECURITIES AND EXCHANGE COMMISSION v. U.S. FUNDING CORPORATION, U.S. FUNDING COMPANY, CAPITAL CONCEPT MARKETING, INC., ANGELICA GWINNETT, and CHARLES FREMER, United States District Court for the District of New Jersey, Civil Action No. 02-2089 (WJM)
On September 11, 2003, the United States District Court for the District of New Jersey granted the Securities and Exchange Commission's application for an order of civil contempt against Angelica Gwinnett. Gwinnett is the former president of U.S. Funding Corporation, a New Jersey company that defrauded investors out of over $2 million in an internet securities scam and is now in a court-ordered receivership. The court found that Gwinnett violated an asset freeze order issued on May 2, 2002 by cashing an investor check and continuing to spend investor funds after the company's assets were frozen. The contempt order requires Gwinnett to remit $22,327.34 to the company's escrow account within ten days of her receipt of the order or face possible arrest. Gwinnett must also pay attorney fees and costs to the SEC.
In a related matter, the United States Attorney for the District of New Jersey has arrested Gwinnett for the misconduct previously charged by the SEC. An indictment unsealed on September 11, 2003, charges Gwinnett with ten counts of wire fraud for her role in the U.S. Funding scam and one count of obstruction of justice for her violation of the asset freeze order. See United States v. Angelica Gwinnett a/k/a Angelica Valenzuela, United States District Court for the District of New Jersey, Criminal Action No. 03-638 (KSH).