On July 12, 2002, the SEC obtained permanent injunctions and disgorgement and civil penalties of approximately $1.8 million in connection with a pump and dump scheme of Tel-One, Inc. stock orchestrated by George Carapella and Alan Lipstein, two of the company's major shareholders, and others. The SEC alleged the defendants issued false press releases and spam facsimile messages regarding Tel-One, and at the same time sold hundreds of thousands of Tel-One shares. For more information about the SEC's action, you can read Litigation Release Nos. 17337 (Jan. 24, 2002) and 17615 (July 15, 2002).
The Court also appointed Mr. Soneet Kapila as Claims Administrator to distribute the disgorged funds to qualified investors. For the latest information, you can visit the Receiver's website.