SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 18049 / March 24, 2003
DISTRICT COURT ENTERS FINAL JUDGMENT ORDERING RELIEF DEFENDANTS CATERINA JOHNSON AND J&J MANAGEMENT CONSULTING, a/k/a 1287769 ONTARIO, INC. TO PAY DISGORGEMENT
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 February 26, 2003, 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 $1,230,180.00 against Relief Defendant Caterina Johnson and $1,681.426.00 against Relief Defendant J&J Management Consulting, a/k/a 1287769 Ontario, Inc. (J&J).
In its Complaint filed on December 12, 2001, the SEC alleged that defendant Paul R. Johnson (Johnson), among others, raised over $15.5 million from nearly 400 investors in a fraudulent stock offering for Link Express Delivery Solutions, Inc. (Link). According to the SEC's complaint, Link, which was based in Deerfield Beach and Ft. Lauderdale, Florida, and ceased operations in March 2000, was created to provide express package delivery services to commercial and individual accounts and compete with package delivery companies such as United Parcel Service and FedEx. Between October 1997 and March 2000, Link conducted a series of five fraudulent private placement offerings. During that period, Johnson disguised his misappropriation by transferring investor funds to J&J, a Canadian consulting firm controlled by his mother, Caterina Johnson, and to Caterina Johnson, individually. Previously, the court entered default judgments against J&J and Caterina Johnson.
For more information on previous actions in this matter, see Litigation Release No. 17277 (December 17, 2001), Litigation Release No. 17338 (January 24, 2002), Litigation Release No. 17375 (February 22, 2002), Litigation Release No. 17819 (October 30, 2002), and Litigation Release No. 17874 (December 3, 2002).