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1
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SEC ADMINISTRATIVE PROCEEDING
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EXTRACTED KEY WORDS
SECURITIES COMMISSION ADMINISTRATIVE PROCEEDINGS STOCK FLORIDA DISTRICT COURT LEGEND SPORTS SOLD EXCHANGE COMMISSION INSTITUTED ADMINISTRATIVE PROCEEDINGS SALE JOSEPH LAWS PREFERRED STOCK INVESTORS PAID OVERRIDE DISGORGE FRAUDULENT SALE ALTAMONTE SPRINGS OPERATED GOLF ENTERTAINMENT GOLF ENTERTAINMENT FACILITIES CENTRAL FLORIDA ADMINISTRATIVE LAW JUDGE REMEDIAL RELIEF BAR PARTICIPATING OFFERING PENNY STOCK |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Securities Exchange Act of 1934
Release No. 42877 / June 1, 2000
Administrative Proceeding
File No. 3-10213
PUBLIC ADMINISTRATIVE PROCEEDINGS
INSTITUTED AGAINST JOSEPH A. MONACO
On June 1, 2000, the Commission instituted administrative proceedings
against Joseph A. Monaco ("Monaco") of Lake Mary, Florida. The Order
Instituting Administrative Proceedings ("Order") is based on the entry
of an order issued by the U.S. District Court for the Middle District
of Florida permanently enjoining Monaco from violating the antifraud
and registration provisions of the federal securities laws. Securities
and Exchange Commission v. James T. Staples, et al., Civil Action No.
98-1061-CIV-22C (M.D. Fla.).
In the District Court proceeding, the Commission alleged that from
1994 to 1996, Legend Sports, Inc. and Monaco operated a Ponzi scheme
by using $18 million in proceeds from the sale of promissory notes and
preferred stock to pay interest and dividends to investors,
commissions to its salesmen and the expenses of company officers. The
Complaint alleged that Monaco sold the notes and stock to the public,
and that he recruited and supervised the other salesmen who sold the
notes and stock. In addition, the Complaint alleged that Monaco and
the other salesmen misrepresented and omitted material facts in
connection with the sale of the securities, including, failing to
disclose to investors that they received a 15% commission for each
security they sold and that Monaco was paid a 5% override on every
security sold by Legend Sports.
In March 2000, the District Court ordered Monaco to disgorge six
million dollars of the proceeds Legend Sports received through the
fraudulent sale of the notes and preferred stock. Formerly based in
Altamonte Springs, Florida, Legend Sports developed and operated golf
entertainment facilities in central Florida between 1992 and 1998.
A hearing will be held before an administrative law judge to determine
what remedial relief, if any, is appropriate in the public interest,
including a bar from participating in any offering of a penny stock.
_________________________________________________________________
Modified 06/01/2000
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