SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17445 / March 27, 2002
United States of America v. David A. Colvin, John Larson a.k.a. John
St. John and Aldo Tarallo a.k.a. Al Tarall, CR 00-186 (C.D. Cal.)
On March 25, 2002, the United States Attorney for the Central District
of California announced that John Larson a.k.a. John St. John, was
sentenced by United States District Judge Audrey B. Collins to
forty-two months in prison and three years supervised release based
upon his September 17, 2001, plea of guilty to securities and mail
fraud charges. Previously, David A. Colvin was sentenced to
seventy-eight months in prison based upon his plea of guilty to
securities fraud, mail fraud, and money laundering charges. Both
Colvin and Larson have also been ordered to pay restitution.
Colvin and Larson, operating out of offices in the San Fernando Valley
in Southern California, raised over $5.6 million from hundreds of
investors nationwide from January 1997 until the Commission filed an
action, SEC v. David A. Colvin; Intellinet Publishing, Inc.;
Intellinet Holding Group, Inc.; Medical Advantage, Inc.; Lamelli, Inc.
a/k/a Lamelli Medical Technology, Inc.; Wall Street Research Company,
Inc.; Job Kjell Hovik; Lamar Ellis; and John Larson a/k/a John St.
John, Civil Action No. SA98-135 AHS (EEx) (C.D. Cal.) on February 19,
1998, and obtained a temporary restraining order, asset freeze order
and appointment of a receiver over the entity Defendants on February
20, 1998.
Colvin and Larson offered and sold investments in various of the
entity Defendants in the Commission action. They claimed Intellinet
Publishing, Inc. was a book publishing company. They also claimed that
Medical Advantage, Inc. operated a chain of weight loss clinics.
Finally, they claimed that Lamelli, Inc. a/k/a Lamelli Medical
Technology, Inc. had developed a "detoxification system" by which a
person could be detoxified of drugs or alcohol in as little as fifteen
minutes. In fact, Intellinet had no products, had never sold any books
or other products, and had never produced a profit. Similarly, Medical
Advantage was not profitable, as represented, and was unable to meet
expenses and pay clinic employees. Representations that former U.S.
Surgeon General C. Everett Koop and television journalist Tom Brokaw
were affiliated with Medical Advantage were also false, as were claims
that Lamelli had received approval of its detoxification system from
the National Institutes of Health (NIH) and a grant from the Food and
Drug Administration (FDA).
Colvin and Larson falsely represented that each company would be the
subject of an initial public offering (IPO), which offerings never in
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
United States of America v. David A. Colvin, John Larson a.k.a. John St. John and Aldo
On March 25, 2002, the United States Attorney for the Central District of California
Previously, David A. Colvin was sentenced to seventy-eight months in prison based upon his
Colvin and Larson, operating out of offices in the San Fernando Valley in Southern
No. SA98-135 AHS (C.D.
Colvin and Larson offered and sold investments in various of the entity Defendants in the
They claimed Intellinet Publishing, Inc. was a book publishing company.
They also claimed that Medical Advantage, Inc. operated a chain of weight loss clinics.
Finally, they claimed that Lamelli, Inc. a/k/a Lamelli Medical Technology, Inc. had developed
In fact, Intellinet had no products, had never sold any books or other products, and had
Similarly, Medical Advantage was not profitable, as represented, and was unable to meet
Representations that former U.S. Surgeon General C. Everett Koop and television journalist
Undisclosed to investors, Colvin also controlled each of the trust entities into which
A third Defendant in the Commission's action, Job Kjell Hovik, was indicted on August 2,
Finally, three salespeople, Aldo Tarallo a.k.a. Al Tarall, Benjamin Raetz and Paul Coynes
Raetz and Coynes, who cooperated in the criminal case and who pled guilty to securities fraud
Tarallo, who was convicted in a jury trial of securities fraud and mail fraud, is awaiting
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