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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
DEFENDANTS COMMISSION GOLF EMPORIUM CORPORATION SECURITIES FREDERICK TROPEANO COMPLAINT ALLEGES EXCHANGE COMMISSION YORK COMMON STOCK VIOLATIONS LITIGATION DISTRICT FRAUDULENT INVESTORS PRIVATE PLACEMENT ENJOINING COMMITTING MISREPRESENTATIONS PRICE ACT FUTURE VIOLATIONS ANTIFRAUD PROVISIONS REQUIRING DEFENDANTS DISGORGE ILL-GOTTEN GAINS PLUS GAINS PLUS PRE-JUDGMENT ASSESSING CIVIL PENALTIES PENDING |
SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16328 / October 5, 1999
SECURITIES AND EXCHANGE COMMISSION v. GOLF EMPORIUM CORPORATION AND
FREDERICK TROPEANO, 99 Civ. 10259 (JSR) (S.D.N.Y.)
The Commission announced that it today filed a Complaint in the United
States District Court for the Southern District of New York charging
one individual and one corporation in connection with a fraudulent
scheme targeted at elderly investors, which raised at least $640,000
through the sale of common stock in a purported private placement. The
Commission simultaneously filed an emergency application seeking,
among other things, an order temporarily restraining and preliminarily
enjoining the defendants from committing the violations alleged in the
Complaint and freezing the defendants' assets.
Named in the Complaint filed today are
Golf Emporium Corporation ("Golf"), a New York corporation; and
Frederick Tropeano, Golf's 33 year-old president of Golf, who resides
in Brooklyn, New York.
The Complaint alleges that, since January 1998, Defendants obtained at
least $640,000 by using material misrepresentations to induce
investors - many of whom are elderly - to buy Golf common stock. The
Complaint alleges that Defendants Golf and Tropeano, directly and
through salespeople under their control, fraudulently offered and sold
Golf misrepresenting, among other things, that the price of Golf would
appreciate to at least three times the "private placement" price
following a purported imminent initial public offering of Golf stock.
As a result of the foregoing, the Commission alleges that Golf
Emporium Corporation and Frederick Tropeano committed securities fraud
in violation of Section 17(a) of the Securities Act of 1933,15 U.S.C.
§ 77q(a), and Section 10(b) of the Securities Exchange Act of 1934, 15
U.S.C. § 78j(b), and Rule 10b-5, 17 C.F.R. § 240.10b-5. The Commission
seeks a Final Judgment against Frederick Tropeano and Golf Emporium
Corporation (i) permanently enjoining Defendants from future
violations of the antifraud provisions; (ii) requiring Defendants to
disgorge their ill-gotten gains plus pre-judgment interest; and (iii)
assessing civil penalties.
The litigation is pending as to all defendants.
_________________________________________________________________
Modified 10/08/1999
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