Supplement to Press Release 2000-72:
Summary of the Cases in the
Promissory Note Enforcement Sweep

Case Name

Filing Site Contact

DefendantsIssuerNature of Case and Charges
SEC v. Tee To Green Golf Parks, Inc. et al.

Western District of New York

Kay Lackey
(212) 748-8079

Tee To Green Golf Parks, Inc.;

Steven Blumhagen;
Susan Blumhagen;
David Trotter;
Hanover Financial;
Donald Owens; and
Financial Security Group Insurance Agency, Inc.

Tee To Green Golf Parks, Inc.
Located:   North Tonawanda, New York
The defendants raised $12 million in 1997 from more than 350 investors by selling 9-month promissory notes. Investors were told that money would be used to develop and operate golf practice facilities; however, the Blumhagens used at least $3.5 million for personal expenses and investments, and over $1.8 million was used to pay sales agent's commissions.
SEC v. Jamie P. Piromalli, et al.

Southern District of Ohio

Dan Gregus
(312) 353-7423

Jamie Piromalli;
Steven Brewer;
A. Michael Jaillett;
Richard Mann; and
Seth Miller
World Vision Entertainment, Inc.
Located:   Altamonte Springs, Florida
Raised at least $64 million from about 1,200 investors in 33 states from 1996 through 1999 by selling promissory notes. Most of the funds raised were spent on the personal and business expenses of its officers and directors, as interest and principal payments to prior investors, and as commissions to the sales agents.
SEC v. Skyline Group, Inc. et al.

District of Minnesota

Dan Gregus
(312) 353-3378

Skyline Group, Inc.;
Robert Sheets; and
Mary West
Skyline Group, Inc.
Located:   North Oaks, Minnesota
Raised over $3 million from 72 investors in 5 states from 1995 through 1999 by selling promissory notes that would purportedly provide a return of 20 times the principal (2000 % interest).
SEC v. Charles R. Homa, et al.

Northern District of Illinois

Bob Burson
(312) 353-7428

10 Issuers (see next column);

D. Dean Pearson;
John "Ted" Snipes;
John Carlson;
Joseph Denson, Jr.;
Carlson National Brokers, Ltd; and
Global Management Enterprises, LLC

Relief Defendants:

Lindy Gause
Linda Nichols
Nichols and Associates

Pearson Enterprise Trust;
Paramount Holdings, LLC;
Premiere Holdings, LLC;
Preferred Returns, Inc.;
JTP, Inc.;
Tradewinds Holdings, LCC;
Peak Holdings, LLC; Harbor Holdings, LLC;
Rolls Royce, Ltd; and Morningstar, Ltd.
From 1996 though 1999, these 4 persons and their companies raised at least $114 million from hundreds of investors by selling promissory notes as part of a $314 million ponzi scheme.
SEC v. Tamarack Funding Corp. et al.

Southern District of Florida

Ched Dumornay
(305) 982-6362

Tamarack Funding Corp., Texas;
Tamarack Funding Corp., Florida; and
Garry Isaacs

Relief Defendants
Tamarack Capital Management Corp.
Tamarack Lenders Trust

Tamarack Funding Corp., Texas. Principal offices in Branson, Missouri

Tamarack Funding Corp., Florida. Principal office formerly located in Fort Lauderdale, Florida.

From 1995 though February 2000, the defendants raised about $4.7 million from 125 investors by selling promissory notes with maturities of 12 months to 5 years. Investors were told that the funds would be used to buy car loans, but only $1.4 million was used for that purpose.
SEC v. Linda Ballou, et al.

Middle District of Florida

SEC v. Claude Cossu

Eastern District of California

Ivan Harris
(305) 982-6342

Linda Ballou;
Claude Cossu;
Bruce Harlin; and
Ronald Wackler
Sebastian International Enterprises, Inc.
Located:   Formerly of Longwood, Florida.
A court-appointed receiver is managing the entity.
From 1997 through 1999, these 4 defendants raised about $5.2 million from the sale of promissory notes to investors as part of a $17.7 million offering scheme. Sebastian's owners used most of the money to pay for their extravagant lifestyle.
SEC v. Woody Lowe, et al.

Northern District of Texas

Steve Webster
(817) 978-6459

Woody Lowe;
Kurtis Lowe;
Jerry Ruyle; and
Robert Blackburn
Chemical Trust, f/n/a Alliance Trust

Principal offices in Palm Beach, Florida; Birmingham, Alabama; and Seneca, South Carolina

From 1999 through January 2000, these 4 sales agents raised more than $4.5 million from about 75 investors by selling promissory notes, as part of a $40 million ponzi scheme. Prospective investors were lured into the scheme by advertisements of "FDIC Insured CD's, " but through "bait and switch" tactics, investors purchased promissory notes issued by Chemical Trust.
SEC v.First Capital Services, Inc., et al.

Southern District of Florida

Madeleine Blake
(617) 424-5926

First Capital Services, Inc.;
Larry Schwartz;
Raphael "Ray" Levy; and
U.S. Capital Funding
First Capital Services, Inc.
Located:   Boca Raton, Florida

U.S. Capital Funding.
Located:   Lake Worth, Florida

Raised about $55 million from more than 600 investors by selling 6-month promissory notes in this 1995 through 1999 "ponzi" scheme. The defendants falsely stated that the State of Florida had audited First Capital and determined it was sound.
SEC v. Pacific Air Transport, Inc., et al.

Central District of California

Karen Cook
(817) 978-6480

Pacific Air Transport, Inc.; and
Robert B. Hirsch
Pacific Air Transport, Inc.
Located:   Los Angeles, California
Running a "ponzi" scheme from November 1998 through September 1999, the defendants raised about $8 million from at least 250 investors. The defendants misrepresented Pacific Air's financial condition and business prospects.


Case CaptionRespondentsIssuer DataDescription of Fraud
In the Matter of Joseph A. Monaco

In the Matter of David E. Trotter

Trisha Fuchs
(305) 982-6352

Joseph A. Monaco; and
David E. Trotter
Legend Sports, Inc.
Located:   Former principal place of business was Florida, now defunct
Between 1994 and 1996,the defendants participated in the fraudulent sale of at least $18 million of preferred stock and promissory notes. Legend Sports was a "ponzi" scheme in which at least 75 % of the money raised was spent on interest and dividends to investors, commissions to sales agents, and the personal expenses of Legend Sport's CEO and president, James Staples, and other related parties.
SEC v. Westshore Agency of Michigan, Inc., et al.

Southern District of Texas

Stephen Webster
(817) 978-6459

Westshore Agency;
Edward Cox;
Joseph Covington;
Stephen Hoyl;
Randy Post;
James Hicks;
Billy Sparkman;
Charles Johnson;
Danny Mayfield; and
Benny Sides
Chemical Trust, f/n/a Alliance Trust

Principal offices in Palm Beach, Florida; Birmingham, Alabama; and Seneca, South Carolina

Conducting business under the assumed name "Regal Financial Group," the defendants raised more than $13.5 million by selling promissory notes to approximately 140 investors. As much as 30 % of the money was used to pay commissions to sales agents, and the remaining money was spent on the personal expenses of Chemical Trust's principals and the return of some principal to investors in the form of "interest" payments.

Last modified: 6/1/2000