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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 17757 / September 30, 2002

Securities and Exchange Commission v. Capital Acquisitions, Inc, et al., Civil Action No. 2:97-0977B (D. Utah)

On September 26, 2002, United States District Court Judge Dee Benson entered a Final Judgment of Permanent Injunction against defendant Pete J. Buffo in the above case. The judgment prohibits future violations of the registration and antifraud provisions of the federal securities laws, Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. In its amended complaint in the case, the Commission alleged that Buffo engaged in fraudulent schemes by selling high-yield promissory notes to investors throughout the United States. The notes were issued by Laser Leasing, Inc. and Capital Acquisitions, Inc., which were allegedly controlled by Buffo, but investors were not told that Buffo had been indicted for another fraudulent scheme at the time of the sales. Investors were also not told, among other things, that the businesses of Laser Leasing and Capital Acquisitions did not produce income sufficient to repay investors; that investors were instead being repaid from the proceeds of investments made by new investors; and that extremely high commissions were being paid to sales personnel. Buffo consented to entry of the injunction without admitting or denying the allegations of the Commission's complaint. Previously, Buffo has pleaded guilty to criminal charges deriving from the same schemes, and has been ordered to pay $8,162,743 in restitution to investors in the schemes.

On the same day, Judge Benson entered an order dismissing, on the Commission's motion, several entities controlled by Buffo and defendant Clealon B. Mann, whose assets were covered by the receivership in the case. The case is proceeding against defendants Mann and Wayne C. Notwell.

For further information on this case, see Litigation releases 16083 (March 9, 1999), 15868 (September 2, 1998), 15670 (March 13, 1998), and 15601 (December 23, 1997).

 

http://www.sec.gov/litigation/litreleases/lr17757.htm


Modified: 10/01/2002