SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17819 / October 30, 2002
DISTRICT COURT ENTERS FINAL JUDGMENT ORDERING SCOTT SCHOENBAUER TO PAY DISGORGEMENT AND CIVIL PENALTIES
SECURITIES AND EXCHANGE COMMISSION V. PAUL R. JOHNSON, ET AL., Case No. 01-7874-CIV-HURLEY (S.D. Fla., filed December 12, 2001)
The Securities and Exchange Commission (SEC) announced that on October 21, 2002, the Honorable Daniel T.K. Hurley, United States District Judge for the Southern District of Florida, issued an order imposing disgorgement with prejudgment interest in the amount of $86,177.68 by consent and a civil penalty of $5,000 by the Court against Scott Schoenbauer (Schoenbauer) for his role in a fraudulent securities offering by Link Express Delivery Solutions, Inc. (Link).
In a complaint filed in December 2001, the SEC alleged that Schoenbauer was among the top-producing sales agents for the five fraudulent and unregistered Link offerings, and received commissions of between 8 and 11% of the total amount invested by their clients in Link. Schoenbauer solicited investors and collected commissions on their sales while not associated with any registered broker-dealer.
On April 2, 2002, the U.S. District Court for the Southern District of Florida entered a final judgment of permanent injunction by default against Schoenbauer permanently enjoining him from violating Sections 5(a) and 5(c) of the Securities Act of 1933 ("Securities Act") [15 U.S.C. §§ 77e(a) and 77e(c)], and Section 15(a)(1) of the Exchange Act [15 U.S.C. § 78o(a)(1)]. Those sections and rules prohibit the offer or sale of securities not registered with the SEC and the offer and sale of securities while not associated with any registered broker-dealer.