U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 18635 / March 24, 2004
S.E.C. v. David M. Wolfson et al., Docket No. 2:03CV00914DAK (USDC, D.Ut.)
On March 17, 2004 the Honorable Dale A. Kimball, United States District Judge for the District of Utah, entered an Order of Contempt against Gino Carlucci ("Carlucci") and G&G Capital ("G&G"), a corporation controlled by Carlucci. The Court found that Carlucci and G&G had violated an October 16, 2003, order issued by the United States District Court for the District of Utah freezing the assets of certain defendants in S.E.C. v. David M. Wolfson et al. Carlucci was ordered to provide a sworn accounting of all accounts over which he now has or has ever had control, ordered to withdraw the bankruptcy petitions Carlucci and G & G had filed in the United States Bankruptcy Court District of Arizona, and ordered to surrender all their assets to the Receiver previously appointed in this case.
In October 2003 the Securities and Exchange Commission filed a Complaint in the United States District Court for the District of Utah, against twenty-one individuals and entities involved in a scheme to sell securities in five United States-based microcap issuers to hundreds of investors located primarily in the United Kingdom, Australia and New Zealand through a boiler room located in Vientiane, Laos. In the October 2003 action, the Commission obtained an order, among other things, freezing the assets of a number of defendants including Carlucci and Wolfson. The contempt motion, filed February 18, 2004, alleged that in violation of the October 16, 2003, order, Carlucci transferred monies from accounts subject to the asset freeze order and wrongfully obtained $49,322.00 in relief from the asset freeze.