Court Enters Judgment Vs Magnum D’or Resources, 2 Others
The Securities and Exchange Commission announced that on February 13, 2012, the Court entered a final judgment of permanent injunction and other relief, by consent, against defendant Magnum d’Or Resources, Inc. The final judgment against Magnum enjoins the company from violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities and Exchange Act of 1934 and Exchange Act Rule 10b-5.
In addition to injunctive relief, the Court orders Magnum to pay disgorgement in the amount of $7,728,824, representing profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest in the amount of $233,543.01, and imposes a civil penalty in the amount of $725,000.
Also, on December 8, 2011 and January 4, 2012 the United States District Court for the Southern District of Florida entered judgments of permanent injunction and other relief, by consent, against defendants David Della Sciucca, Jr. and Dwight Flatt, respectively. The judgments enjoin Sciucca and Flatt from violations of Sections 5(a) and 5(c) of the Securities Act.
Sciucca and Flatt also are barred from participating in any penny stock offering and from owning, receiving or purchasing Form S-8 stock. The judgments against Sciucca and Flatt provide for disgorgement and the imposition of civil penalties in amounts to be determined by the Court upon motion of the Commission.
The Commission commenced this action by filing its Complaint on April 29, 2011, against Magnum, Sciucca, Flatt, and others. The Complaint alleges Magnum issued stock pursuant to false Form S-8 registration statements, and used bogus consultants to funnel more than $7 million in illicit stock proceeds back into the company.
The Complaint also alleges that in facilitating this kickback scheme, Magnum garnered the assistance of Flatt, Sciucca, and others, who liquidated Magnum S-8 stock, kept a portion of the sales proceeds, and then returned the remaining sales proceeds to Magnum under the guise of loan agreements. The Complaint further alleges that Magnum made false and misleading statements in its Form S-8 registration statements and in various press releases during the relevant time period.