U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20023 / March 1, 2007
SEC v. U.S. WIND FARMING, INC., ET AL, Case No. 05 C 4259 (N.D. Ill., filed July 25, 2005)
On February 14, 2007, the Honorable Milton I. Shadur of the United States District Court for the Northern District of Illinois, Eastern Division, entered orders of Final Judgment, by default, against Defendants Michael D. Spadaccini and Oronex, LLC.
The Commission's First Amended Complaint alleged that Spadaccini participated in a scheme to evade the registration provisions of the Securities Act of 1933. Spadaccini, through his company, Oronex, obtained 500,000 shares of U.S. Wind Farming stock in an unregistered offering. Spadaccini, an attorney, purportedly received those shares as payment for his legal services and then quickly sold the shares into the public market. The Final Judgment permanently enjoins Spadaccini and Oronex from violating Sections 5(a) and 5(c) of the Securities Act of 1933. In addition, the Court ordered that Spadaccini and Oronex are jointly and severally liable for disgorgement, representing the ill-gotten gains from the sales of Wind Farming stock, plus prejudgment interest totaling $19,792.83, and a civil penalty of $8,600.