SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16748 / October 3, 2000
SECURITIES AND EXCHANGE COMMISSION v. GOLF EMPORIUM CORPORATION AND FREDERICK TROPEANO, 99 Civ. 10259 (JSR)(S.D.N.Y.)
The Commission announced today that on September 26, 2000 the United States District Court for the Southern District of New York entered final judgments by default against defendants Golf Emporium Corporation ("Golf") and its president, Frederick Tropeano. The Final Judgments permanently enjoin Tropeano from future violations of the antifraud provisions of the federal securities laws, and require Golf and Tropeano to disgorge $3,622,014, representing the funds and benefits that Golf and Tropeano obtained as a result of their fraudulent conduct. The Final Judgments also require Golf and Tropeano to pay civil penalties of $5,000,000 and $1,000,000, respectively. The Court had earlier entered a partial judgment by default against Golf on January 6, 2000 permanently enjoining Golf from future violations of the antifraud provisions of the federal securities laws.
The Final Judgments result from a civil injunctive action commenced by the Commission on October 5, 1999 in which the Commission alleged that since at least January 1998, Golf and Tropeano obtained at least $3,000,000 by using material misrepresentations, in phone solicitations and in private placement memoranda for Golf’s common stock, to induce at least 193 investors -- many of whom are elderly-- to buy Golf common stock in a purported private placement. Golf and Tropeano failed to answer, plead, or otherwise respond to Commission’s Complaint and Amended Complaint.
For more information, see Litigation Release No. 16411.