This web page has been set up by Soneet R. Kapila, Claims Administrator, to provide a source of information for certain investors who invested in Tel-One, Inc. stock during the period from November 27, 2001 through January 22, 2002. [Note]

SECURITIES AND EXCHANGE COMMISSION,

                     CASE NO. 8:02-CV-120-t-30TGW

Plaintiff            
V.
TEL-ONE, INC., ET AL

Defendants     

   



UPDATE TO TEL-ONE WEBSITE - January 25, 2004

An Order Granting Claims Administrator's Motion For Order Authorizing Distribution Of Funds And For Related Relief was signed by U. S. District court Judge James S. Moody, Jr. on January 9, 2004. The Claims Administrator is finalizing procedures for the distribution. Please click on the link below to access the full text of the January 9, 2004 Order.

Order Dated Jan 9, 2004 - Granting CA Motion




UPDATE TO TEL-ONE WEBSITE – October 23, 2003


Over the past few months, with the collections efforts by the SEC and the Claims Administrator, additional monies have been collected pursuant to the judgments, interest and penalties imposed on the defendants/relief defendants, George Carapella/Carapell Capital Corp. (“Carapella”), Larry Eastland (“Eastland”), Alan Lipstein/Atlas Global Ventures Corp. (“Lipstein”) and George LaFauci/Media Broadcast Solutions, Inc. (“LaFauci”).

An additional $50,000 was received from Lipstein. He has now fully satisfied all amounts due per the terms of the judgment against him for a total of $965,000.

The SEC’s diligent collection efforts to date, including a motion to show cause as to why Carapella should not be held in contempt, have produced a total of $912,275.06 from this defendant. There remains $77,724.94 plus post-judgment interest due from Carapella that the SEC is continuing to pursue.

Eastland turned over 6,000 shares of Teleon Corp. stock to the Claims Administrator, although the value of these shares remains undetermined. He also has paid a total of $9,383.96 towards satisfaction of the judgment against him of $19,308.00. He still owes $9,924.04.

As reported in earlier updates, LaFauci paid $38,728 in full.

Several investors have inquired via the inter-net (www.kapilaco.com/telone) as to the status of the case. The Claims Administrator will continue to acknowledge these electronic inquiries. The Claims Administrator, with assistance from his counsel, and the SEC continue their efforts to maximize returns to the investors. Although the collection process has been slower than originally anticipated, these efforts have produced substantial additional funds. All funds received to date are invested in interest-bearing accounts.

It is hoped that expeditious collection of the remaining balances due can be achieved. To minimize administration costs, the Claims Administrator anticipates that there will be a single distribution to eligible investors prior to the end of 2003, subject to receipt of all restitution funds.




UPDATE TO TEL-ONE WEBSITE – MAY 31, 2003
.

The SEC and the Claims Administrator, with assistance from his counsel, is continuing efforts to collect all remaining monies including judgments, interest and penalties due from George Carapella, Alan Lipstein and Larry Eastland.

On April 30, 2003, the Claims Administrator received an additional $159,000 from Defendant George Carapella. This payment brings the total received from Mr. Carapella to $718,000. Mr. Carapella owes an additional $209,000 in disgorgement and civil penalties to fully satisfy the judgment against him.
Defendant Alan Lipstein has paid $915,000 and still owes $50,000 in civil penalties. He has been given until July 31, 2003 to pay the remaining $50,000.

The judgment against Larry Eastland, who was a “relief defendant” ordered Mr. Eastland to pay $19,308 and to disgorge all of his Tel-One stock. The Claims Administrator, his counsel and the SEC are working jointly to collect these funds and effect turnover of all stock.

As some defendants have not paid all the monies due per the judgments, it is unlikely that there will be a distribution of the Disgorgement Fund until after August 2003. See table below summarizing the current status of disgorgements:

 
Defendant/Relief Defendant
Amount of Disgorgement
Paid to Date
Amount Due
Alan Lipstein
/Atlas Global Ventures Corp.
$ 965,000 $ 915,000 $ 50,000
George Carapella
/Carapell Capital Corp.
$ 990,000 $ 781,000 $ 209,000
George LaFauci
/Media Broadcast Solutions, Inc.
$ 38,728 $ 38,728 $ - 0 -
Larry Eastland $ 19,308
plus Tel-One stock
$ -0- $ 19,308
 



Case Overview:


Tel-One, Inc. was a publicly traded company. The SEC sued the following individuals who later settled: Kris Brown, Alan Lipstein (and relief defendant Atlas Global Ventures Corp.), George Carapella (and relief defendant Carapell Capital Corp.), George LaFauci, (and relief defendant Media Broadcast Solutions, Inc.) and Larry Eastland. There is continuing litigation between the SEC and Relief Defendant Hank Vanderkam.
 

Judgments Against Defendants:


Judge James S. Moody, Jr. of the U. S. District Court, Middle District of Florida (Tampa Division) signed final judgments including permanent injunctions and other relief against the above-listed defendants on July 12, 2002. Pursuant to the final judgments, defendants Alan Lipstein (and relief defendant Atlas Global Ventures Corp.) George Carapella (and relief defendant Carapell Capital Corp.), George La Fauci and releif defendant Larry Eastland have been ordered to pay disgorgement.

 

Appointment of Claims Administrator:

Judge Moody also signed an order on July 17, 2002 approving the appointment of Soneet R. Kapila as Claims Administrator (“CA” or “Kapila”) for the purposes of distributing the Disgorgement Fund.

 

Employment of Professionals:


Accountants

The CA has hired Kapila & Company to assist him in taking all the necessary steps to enable the Disgorgement Fund to be a “qualified settlement fund” (the “Fund”) within the meaning of regulations issued under section 468B(g) of the Internal Revenue Code of 1986, as amended. The Claims Administrator is designated the administrator of the Fund pursuant to Treas. Reg. § 1.468B-2(k)(3)(i) and to satisfy the administrative requirements imposed by Treas. Reg. § 1.468B-2, including obtaining a taxpayer identification number, timely filing of applicable federal, state and local tax returns and paying taxes reported thereon and satisfying any information reporting or withholding requirements imposed on distributions from the Fund.

Attorneys

Kapila has retained the following as legal counsel to assist him in carrying out his duties:


 

        Rudolfo Pittaluga, Esq.             

David Softness, Esq.
 
rpittaluga@akerman.com          
dsoftness@akerman.com  

                                                          Akerman Senterfitt & Edison
                                                          1 S.E. 3rd Avenue
                                                          28th Floor
                                                          Miami, Florida 33131-1704
                                                          Phone: 305/374-5600
                                                          Fax: 305/374-5095
 


Informational Updates:
Within the next several weeks, Kapila will provide further information on this web page and will be contacting investors directly to obtain specific information required for tax reporting purposes. Investors with specific questions or who wish to obtain additional information may send their written requests via email to: Telone@kapilaco.com or fax to (954) 252-4396. Please include the case reference: “TEL-ONE, Inc.”


On October 29, 2002, Judge James S. Moody, Jr. signed the Order Approving Administrators Proposal and Directing Methodology for Distributing Escrow Fund. To view the order in its entirety, click on this button. Beginning approximately November 25, 2002 the Claims Administrator will begin mailing letters to investors requesting, among other items, verification of investment account and transactional data.
 



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Note: The information contained in this website consists of information provided to the Claims Administrator, Soneet Kapila, by the Securities and Exchange Commission and/or from pleadings filed in connection with the case entitled “Securities and Exchange Commission, Plaintiff, vs. Tel-One, Inc., et al, Defendants and Carapell Capital Corp., et al, Relief Defendants, United States District Court, Middle District of Florida (Tampa Division), Case No. 8:02-CV-T-30TGW." The information provided herein has not been subject to an independent review or a certified audit. The Claim Administrator has made every effort to ensure that the information contained herein is complete and accurate; however, the Claims Administrator is unable to warrant or represent that the information contained herein is without any inaccuracy.

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