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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:
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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 |
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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.
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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.
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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.
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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:
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Rudolfo
Pittaluga, Esq.
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David Softness, Esq. |
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dsoftness@akerman.com |
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Akerman
Senterfitt & Edison
1
S.E. 3rd Avenue
28th
Floor
Miami,
Florida 33131-1704
Phone:
305/374-5600
Fax:
305/374-5095 |
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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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