UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
Securities Exchange Act of 1934
Release No. 50479 / September 30, 2004
Administrative Proceeding File No. 3-11693
IN THE MATTER OF JOSEPH L. LENTS, BRIAN E. BAGINSKI AND ANTHONY V. YONADI
The Securities and Exchange Commission announced today that it has instituted administrative proceedings pursuant to Section 15(b) of the Securities Exchange Act of 1934 (Exchange Act) against Joseph L. Lents, Brian E. Baginski and Anthony V. Yonadi, all of Boca Raton, Florida. The Division of Enforcement alleges that between at least November 2001 and April 29, 2002, Lents, who was the CEO of Investco, Inc., Baginski and Yonadi participated in an offering of Investco, Inc., stock, which at the time was a penny stock. The Order Instituting Proceedings (Order) is based on permanent injunctions entered against Lents, Baginski and Yonadi on March 12, 2004, August 14, 2004, and March 12, 2003, respectively.
The Division of Enforcement alleges that on March 12, 2004, on the basis on the Commission's motion for summary judgment, the United District Court for the Southern District of Florida entered a judgment permanently enjoining Lents from violating Sections 5 and 17(a) of the Securities Act of 1933 (Securities Act) and Section 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder. It also alleges that on March 12, 2003, and August 14, 2003, the Court entered orders permanently enjoining Yonadi and Baginski, respectively, from violating Section 5 of the Securities Act and Section 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder. Yonadi and Baginski consented to the foregoing orders without admitting or denying the allegations of the Complaint. [Securities and Exchange Commission v. Investco, Inc., et al., Case No 02-80466-CIV.]
A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Lents, Yonadi and Baginski with an opportunity to dispute these allegations, and to determine what remedial sanctions, if any, are in the public interest. The Commission directed that an administrative law judge shall issue an initial decision within 210 days from the date of service of the Order.
See also the Order in this matter