Wellness Universe, et al.
On February 16, 2000, the SEC filed a complaint in connection with a pump and dump scheme perpetrated by George Pappas, the CEO of both Wellness Universe Corp. and Synpan Corp. The SEC alleged that between approximately mid-December 1999 and early February 2000, Pappas caused the companies to issue a series of false or misleading press releases designed to inflate artificially the price of Wellness common stock. The complaint also alleged the defendants, through certain friends and family members of Pappas (“relief defendants”), sold shares of Wellness stock to the public at artificially inflated prices.
Without admitting or denying the allegations of the SEC's complaint, Pappas, Wellness, and Synpan each consented to permanent injunctions, and Pappas agreed to disgorge more than $1.1 million in ill-gotten gains and prejudgment interest, and to pay a $75,000 civil penalty. In addition, the relief defendants agreed to disgorge more than $2.2 million in ill-gotten gains and prejudgment interest.
The Court appointed Alan Vinegrad, Esq., as Distribution Agent. The above funds have been paid and are part of a Disgorgement Fund for distribution to investors who suffered losses on their purchases of Wellness common stock during the scheme. In September 2006, the Court approved the Distribution Agent's proposed plan of distribution. Subsequently, Mr. Vinegrad made distributions to all known claimants.
If you have not received a distribution and believe you are entitled to one, you should immediately contact Ben Razi, attorney for the Distribution Agent, at 202-662-5463.