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U.S. Securities and Exchange Commission

Litigation Release No. 17801 / October 23, 2002

Securities and Exchange Commission v. Emsanet Internet Services, Inc., Stefan Abel, Peter Restivo, Inc. D/B/A U.S. Funding, Peter C. Restivo, Nicola A. Liantonio, Jr., and Cesare J. Iori, Jr., CV 02-532 (ADS ) (E.D.N.Y)

The Securities and Exchange Commission announced that the Honorable Arthur D. Spatt, United States District Judge for the Eastern District of New York, entered final judgments against Stefan Abel ("Abel"), Emsanet Internet Services, Inc. ("Emsanet"), Peter Restivo, Inc. d/b/a U.S. Funding ("U.S. Funding"), Peter C. Restivo ("Restivo"), Nicola A. Liantonio, Jr. ("Liantonio") and Cesare J. Iori, Jr. ("Iori") (collectively, "Defendants"). The judgments permanently enjoin them from further 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 ("Exchange Act") and Rule 10b-5 thereunder) and additionally enjoin U.S. Funding, Restivo, Liantonio and Iori from acting as unregistered brokers (Section 15(a) of the Exchange Act). The judgments also order the Defendants to disgorge the following illicit profits: Abel and Emsanet, jointly, $2,805,265 plus $536,448 in prejudgment interest; U.S. Funding, $465,000 plus $88,921.63 in prejudgment interest; and Restivo, Liantonio and Iori each, $155,000 plus $29,640.54 in prejudgment interest. Finally, the judgments order the Defendants to pay the following civil penalties: Abel and Emsanet, jointly, $100,000; U.S. Funding, $465,000; and Restivo, Liantonio and Iori each, $155,000.

The Commission's complaint, filed on January 24, 2002, charged that Emsanet and its President, Abel, hired U.S. Funding, an unregistered broker-dealer, to sell shares of Emsanet stock in an unregistered private placement offering, and that Abel, Emsanet, U.S. Funding and its principles, Restivo, Liantonio and Iori, made materially false and misleading statements to investors in connection with the offer and sale of shares of Emsanet stock. The Defendants consented to the judgments without admitting or denying the allegations in the Commission's complaint.

For further information, see Litigation Release 17336 (January 24, 2002), announcing the filing of the Commission's civil action against the Defendants.



Modified: 10/24/2002