UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 15739 / May 14, 1998
SECURITIES AND EXCHANGE COMMISSION V. PAUL J. MONTLE, LS CAPITAL
CORPORATION, PAUL V. CULOTTA, CAROL C. MARTINO, CMA NOEL, LTD., MARIO
J.
IACOVIELLO, ILAN ARBEL, AND EUROPE AMERICAN CAPITAL CORPORATION, 98
CIV-
3446 (MP) (S.D.N.Y)
The Securities and Exchange Commission announced the filing of a
complaint
on May 14, 1998 in the United States District Court for the Southern
District of New York, alleging fraud and other violations of the
securities
laws concerning three public companies, Viral Testing Systems, Inc.
( VTS ); LS Capital Corporation ( Lone Star ); and RMS Titanic, Inc.
( Titanic ). Named as defendants were:
Paul J. Montle, 50, a resident of Katy, Texas, who is Lone Star s CEO,
Chairman of the Board, and President, was at one time VTS CEO and
President, and was a promoter for Titanic;
Paul V. Culotta, 49, a resident of Houston, Texas, who was at one time
an
officer of each of Lone Star, VTS, and Titanic;
Carol Martino, 39, a resident of Palm Beach, Florida;
CMA Noel, a New York corporation owned and controlled by Martino;
Ilan Arbel, 45, a resident of New York, New York;
Europe American Capital Corp., a British Virgin Islands corporation
controlled by Arbel;
Mario Iacoviello, 41, a resident of Chicago, Illinois; and
Lone Star, a publicly traded company whose stock is traded on the over
the-
counter bulletin board.
SNIPPETS:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission announced the filing of a complaint on May 14, 1998 in
Paul J. Montle, 50, a resident of Katy, Texas, who is Lone Star s CEO, Chairman of the Board,
Paul V. Culotta, 49, a resident of Houston, Texas, who was at one time an officer of each of
Carol Martino, 39, a resident of Palm Beach, Florida;
CMA Noel, a New York corporation owned and controlled by Martino; Ilan Arbel, 45, a resident
Europe American Capital Corp., a British Virgin Islands corporation controlled by Arbel;
Mario Iacoviello, 41, a resident of Chicago, Illinois;
a publicly traded company whose stock is traded on the over thecounter bulletin board.
The Commission's Complaint alleges as follows regarding the three corporations:
VTS, whose stock traded on the American Stock Exchange, was in the business of selling an HIV
From December 1992 through at least June 1993, Montle knowingly or recklessly made materially
VTS and Lone Star s public filings regarding the ownership of Lone Star at the time VTS spun
They did so by, among other things, controlling the initial supply of stock and agreeing to
1934 (Exchange Act) and Rule 10b-5 thereunder; Montle and Culotta, as controlling persons
Simultaneously with the filing of the Complaint, the Commission filed judgments on consent
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