U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19874 / October 17, 2006

SEC v. George Carapella and Alan S. Lipstein, Case No. 8:04-CV-01858-T-23MSS (M.D.Fla.)

Final Judgments of Permanent Injunction and Other Relief Entered Against Defendants George Carapella and Alan S. Lipstein

The Securities and Exchange Commission ("Commission") announced that on September 8, 2006, the Honorable James S. Moody, Jr. United States District Judge for the Middle District of Florida entered Final Judgments of Permanent Injunction and Other Relief against Defendants George Carapella ("Carapella") and Alan S. Lipstein ("Lipstein"), respectively. The Final Judgments, entered with the consent of Carapella and Lipstein, who neither admitted nor denied the allegations of the Commission's complaint, enjoin them from violations of Section 15(b) of the Securities Exchange Act of 1934, permanently bar them from participating in a penny stock offering, and order them to pay civil penalties of $15,000 each.

The SEC commenced this action by filing its complaint against Carapella and Lipstein on August 27, 2004, alleging the defendants illegally participated in penny stock offerings and committed securities fraud in violation of prior injunctions and Commission orders barring them from such activities.

For additional information, see Litigation Release No. 18859 (August 17, 2004).