U.S. Securities and Exchange Commission
Litigation Release No. 21849 / February 10, 2011
Securities and Exchange Commission v. James N. Turek, et al., Civ. No. 08CV-395 JBC (E.D. Kentucky).
COURT ENTERS FINAL JUDGMENT AGAINST THE FORMER PRESIDENT AND CEO OF PLASTICON INTERNATIONAL, INC. JAMES N. TUREK PURSUANT TO SETTLEMENT
The United States Securities and Exchange Commission announced today that the United States District Court for the Eastern District of Kentucky entered a Final Judgment on February 4, 2011, in a civil action against James N. Turek (“Turek”), the former president and CEO of Plasticon International, Inc. (“Plasticon”), a Wyoming based manufacturer utilizing recycled plastics. Turek, without admitting or denying the Commission’s allegations, consented to the entry of a Final Judgment that enjoins him from violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder; finds him liable for disgorgement of $2,600,000, plus prejudgment interest in the amount of $557,836.41; prohibits him from acting as an officer or director of a public company for 5 years; and bars him from participating in any offering of penny stock. Based on Turek’s Statement of Financial Condition, the Court did not order Turek to pay a civil penalty, and waived payment of disgorgement and prejudgment interest.
According to the SEC’s complaint in this matter, between at least January 2005 and April 2007, Turek fraudulently misappropriated for personal use at least $2.8 million of proceeds from a $8 - $11 million unregistered, multi-state securities offering by Plasticon, the public company controlled by Turek. Turek previously represented to investors that the proceeds from the offering would be used in Plasticon’s business. The complaint further alleged that between at least May 2005 and April 2006, Turek and Plasticon made false and misleading press releases relating to Plasticon’s financial condition, Plasticon’s ownership of patents and the value of those patents, and Plasticon’s outstanding shares. During this period Plasticon’s stock price increased dramatically, apparently in response to those false and misleading press releases. Finally, the complaint alleged that Turek and Plasticon engaged in an unregistered, non-exempt distribution of Plasticon shares.