U.S. Securities and Exchange Commission
Litigation Release No. 17975 / February 7, 2002
SEC Settles Financial Fraud Charges against Albert Terranova
Securities and Exchange Commission v. Scorpion Technologies, Inc., et al., 96-CIV-1005 (S.D.N.Y.)
The Securities and Exchange Commission announced that on December 11, 2002, the Honorable Barbara S. Jones, United States District Judge for the Southern District of New York, entered a Final Judgment of Permanent Injunction and Other Equitable Relief by Consent against Albert Terranova ("Terranova") of Scottsdale, Arizona. The Final Judgment enjoins him from future violations of Section 17(a) of the Securities Act of 1933, and as a control person from future violations of Sections 10(b) and 15(c)(1) of the Exchange Act, Rules 10b-3, 10b-5, 15c1-2, 15c1-6, and Rules 101 and 102 of Regulation M thereunder. Terranova was also ordered to pay $75,000 in disgorgement.
The Commission also announced that on February 6, 2003, it instituted a settled administrative proceeding pursuant to Section 15(b) of the Exchange Act against Terranova, an undisclosed principal of First American Biltmore Securities, Inc. a now-defunct registered broker-dealer. Terranova agreed to an order that barred him from participating in any offering of a penny stock and from association with any broker or dealer.
The Commission's Amended Complaint, filed on May 9, 1996, alleged that Terranova and others participated in a fraudulent scheme involving a registered offering of two million shares of Scorpion common stock that they sold at inflated prices to the public. This case, which had been put on the suspense docket pending resolution of a related criminal proceeding in the District Court for the Northern District of California, was restored to the active docket in July 2001.