Securities Lawyers Gone Wild l Cameron Linton
On September 14, 2012, the Securities and Exchange (SEC) announced today that the United States District Court for the Middle District of Florida entered final judgments against Christel S. Scucci (“Scucci”), her mother Karen S. Beach (“Beach”), their companies Protégé Enterprises, LLC (“Protégé”) and Capital Edge Enterprises, LLC (“Capital Edge”), and their attorney Cameron Linton, Esq. (“Linton”). According to the SEC Charges, Linton was involved in a scheme to unlawfully acquire and sell shares of penny stock that were never registered for sale to the public, in violation of Section 5 of the Securities Act of 1933 (“Securities Act”).
The final judgments imposed the relief detailed below:
On September 14, 2012, the Court entered a final judgment by consent as to defendant Linton: (1) permanently enjoining him from violating Section 5 of the Securities Act, (2) permanently enjoining him from providing professional legal services to any person in connection with the offer or sale of securities pursuant to, or claiming, an exemption under Securities Act Rule 144, or any other exemption from the registration provisions of the Securities Act, including, without limitation, participating in the preparation of any opinion letter relating to such offerings, (3) permanently barring him from participating in an offering of penny stock, and (4) ordering him to pay $13,750, including disgorgement of $6,250, and a civil penalty of $7,500. Linton consented to the entry of the final judgment without admitting or denying the allegations of the complaint.
In addition, Linton agreed to the issuance of a SEC order, pursuant to Rule 102(e) of the SEC’s Rules of Practice, suspending him from appearing or practicing before the SECas an attorney, based on the entry of the injunction from violations of Section 5 of the Securities Act. In the Matter of Cameron H. Linton, Esq., Exchange Act Release No. 67912.
On November 5, 2012, the Court entered final judgments by default as to defendants Beach, Capital Edge, and Protégé: (1) permanently enjoining them from violating Section 5 of the Securities Act, (2) permanently barring them from participating in an offering of penny stock, (3) ordering Beach and Capital Edge to pay, jointly and severally, disgorgement and prejudgment interest totaling $268,936.73, ordering each to pay a civil penalty of $30,000, and (4) ordering Protégé to pay disgorgement and prejudgment interest totaling $1,419,143.16, and a civil penalty of $52,500.
On November 8, 2012, the Court entered a final judgment as to defendant Scucci: (1) permanently enjoining her from violating Section 5 of the Securities Act; (2) permanently barring her from participating in an offering of penny stock, and (3) ordering her to pay, jointly and severally with Protégé, disgorgement and prejudgment interest totaling $1,419,143.16, and to pay a civil penalty of $52,500. Scucci consented to the injunction and penny stock bar without admitting or denying the allegations of the complaint.
For additional information, see the SEC’s Litigation Release No. 22352
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.
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Brenda Hamilton, Securities Attorney
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