SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16322 / September 30, 1999
United States Securities and Exchange Commission v. Inorganic
Recycling Corporation, Edward J. Halloran, Michele Caridi, Daniel J.
Moore and Richard Furman, 99 Civ. 10159 (WHP) (S.D.N.Y.)
The Securities and Exchange Commission ("Commission") announced today
that it filed a civil injunctive action in federal court in Manhattan
charging Inorganic Recycling Corporation ("Inorganic") and four
individuals with conducting a fraudulent offering of unregistered
securities in Inorganic from 1995 through 1997, and with
misappropriating a substantial portion of the offering proceeds. The
Complaint alleges that the defendants obtained at least $2.5 million
from 150 investors by means of numerous misrepresentations about the
use of offering proceeds, Inorganic's plans for the future, and the
anticipated returns and safety of the investment.
Named in the Complaint are
Inorganic Recycling Corporation, a Delaware corporation with its
principal place of business in Coral Springs, Florida. Inorganic is in
the business of recycling hazardous manufacturing waste. In April,
Inorganic emerged from reorganization proceedings under Chapter 11 of
the Bankruptcy Code as a subsidiary of Pacific Sterling Corporation.
Edward J. Halloran ("Halloran"), age 52, ran Inorganic's daily
operations from 1995 through 1997, maintained an office at Inorganic,
sold its securities, but did not actually hold a formal title at the
company. Since 1986, Halloran has served prison terms for crimes
related to check-kiting and racketeering.
Michele Caridi ("Caridi"), age 38, was a director of Inorganic and the
record owner of a majority of Inorganic's common stock from 1995 to
1997. Caridi married Halloran in November 1997.
Daniel J. Moore ("Moore"), age 39, was Inorganic's president from 1995
to 1996. On November 20, 1998, Moore pleaded guilty to charges brought
by the New York County District Attorney's Office of scheming to
defraud in the sale of Inorganic securities.
Richard Furman ("Furman"), age 39, a New York City criminal court
officer, solicited investors in New York to purchase Inorganic
securities.
According to the complaint
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SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission announced today that it filed a civil injunctive
The Complaint alleges that the defendants obtained at least $2.5 million from 150 investors
Inorganic Recycling Corporation, a Delaware corporation with its principal place of business
Edward J. Halloran, age 52, ran Inorganic's daily operations from 1995 through 1997,
Michele Caridi, age 38, was a director of Inorganic and the record owner of a majority of
Daniel J. Moore, age 39, was Inorganic's president from 1995 to 1996.
On November 20, 1998, Moore pleaded guilty to charges brought by the New York County District
Richard Furman, age 39, a New York City criminal court officer, solicited investors in New
Moore transferred funds from the bank account designated to receive investor proceeds to his
The Commission alleges that the Defendants violated Sections 5, 5and 17of the Securities Act
For relief, the Complaint seeks against all defendants, permanent injunctions against future
Without admitting or denying the allegations in the Complaint, Inorganic consented to the
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