U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17568 / June 17, 2002
SECURITIES AND EXCHANGE COMMISSION V. WEDGEWOOD FINANCIAL GROUP, INC.,
COLORADO PAGING GROUP PARTNERS, JPI SITE MANAGEMENT, INC., PAUL
IWANKOWSKI and WILLIAM SCRAK, DEFENDANTS and STONEPINE HOLDINGS, LTD.,
ROBERT FABREGAS, PRIME TEL PAGING GROUP PARTNERS, RANDY GILBERT,
DARREL BAUGUESS and JOANNA IWANKOWSKI, RELIEF DEFENDANTS, CASE NO.
97-6350-CIV-RYSKAMP (S. D. Fla.)
The Securities and Exchange Commission (SEC) announced that on August
9, 2001 the Honorable Kenneth A. Ryskamp of the United States District
Court for the Southern District of Florida entered an order (Final
Order), on the SEC's motion, in SEC v. Wedgewood Financial Group,
Inc., et al.
The Final Order dismissed with prejudice the corporate defendants,
Wedgewood Financial Group, Inc. (Wedgewood), Colorado Paging Group
Partners (Colorado Paging), and JPI Site Management, Inc., all of
which had been placed under the control of the Court appointed
Receiver. The Final Order also dismissed with prejudice relief
defendants Stonepine Holdings, Ltd. (Stonepine Holdings) and its
president, Robert Fabregas. Finally, with the consent of defendant
William Scrak (who consented without admitting or denying the SEC's
allegations), the Final Order ordered that Scrak be jointly and
severally liable with defendant Paul Iwankowski to disgorge $18,150
plus prejudgment interest thereon, and be jointly and severally liable
with defendant Paul Iwankowski and relief defendant Joanna Iwankowski
to disgorge $106,788, plus prejudgment interest thereon, provided,
however, that Scrak's payment of those amounts was waived, and no
civil money penalty imposed, based on Scrak's demonstrated financial
inability to pay.
In its complaint filed in April 1997, the SEC alleged that defendants
Paul Iwankowski, Scrak, and the corporate defendants were engaged in a
fraudulent offering of securities in Colorado Paging in violation of
the antifraud provisions of the federal securities laws. The complaint
also alleged that Wedgewood was illegally operating as a
broker-dealer. The SEC's complaint also sought relief from relief
defendants Joanna Iwankowski (Paul Iwankowski's wife), Stonepine
Holdings, Fabregas, Prime Tel Paging Group Partners, Randy Gilbert,
and Darrell Bauguess. On April 4, 1997, the Court granted the
Commission's motion for a temporary restraining order and other
relief, and also appointed a Receiver over the corporate defendants.
In August 1997, the Court entered an Order of Permanent Injunction and
Other Relief as to defendant Scrak, which enjoined him from further
SNIPPETS:
U.S. SECURITIES AND EXCHANGE COMMISSION
IWANKOWSKI and WILLIAM SCRAK, DEFENDANTS and STONEPINE HOLDINGS, LTD.,
ROBERT FABREGAS, PRIME TEL PAGING GROUP PARTNERS, RANDY GILBERT,
DARREL BAUGUESS and JOANNA IWANKOWSKI, RELIEF DEFENDANTS, CASE NO. 97-6350-CIV-RYSKAMP (S.
The Securities and Exchange Commission announced that on August 9, 2001 the Honorable Kenneth
The Final Order dismissed with prejudice the corporate defendants, Wedgewood Financial Group,
The Final Order also dismissed with prejudice relief defendants Stonepine Holdings, Ltd. and
Finally, with the consent of defendant William Scrak, the Final Order ordered that Scrak be
emonstrated financial inability to pay.
In its complaint filed in April 1997, the SEC alleged that defendants Paul Iwankowski, Scrak,
The SEC's complaint also sought relief from relief defendants Joanna Iwankowski, Stonepine
On April 4, 1997, the Court granted the Commission's motion for a temporary restraining order
In August 1997, the Court entered an Order of Permanent Injunction and Other Relief as to
The Court also ordered that Scrak be jointly and severally liable with the corporate
The Court ordered Paul Iwankowski individually to disgorge $18,150 in disgorgement and $2,903
On the Commission's motion, on April 24, 1998, the Court entered an Order Dismissing Prime
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