The Commission announced that on November 23 the United States District Court for the Middle District of Florida entered an Order of Disgorgement plus Prejudgment Interest and Civil Money Penalties against Shane T. Vaessen, Veronika M. Vaessen, Taft Womack, and Frank Gaines. The SEC sued Shane and Veronika Vaessen, Womack, Gaines, and others, in September 1998 alleging that they had violated the federal securities laws in connection with a Ponzi scheme organized by Shane Vaessen and his wife, Veronika. Contrary to the representations of the Vaessens and ICC 2000 sales agents, investor funds were primarily used to pay interest and principal to earlier investors, to pay sales commissions, and for the Vaessens' personal expenses. The Vaessens' last known address was in Las Vegas, Nevada. Womack's last known address was in St. Petersburg, Florida.
Gaines is now in jail in Lebanon, Indiana.
The Commission alleged that from approximately January 1998 until August 1998, Scalzo aided and abetted a scheme by stock promoters to sell unregistered shares of the common stock of PSA, Inc. to small investors, using misrepresentations and omissions, through an unregistered broker-dealer that Scalzo owned. As a result of these proceedings, Scalzo is suspended from association with any broker or dealer for a period of twelve months. C 99-3690, SBA, ND Cal. That action, which was filed as part of the Commission's microcap fraud sweep, remains pending against the other defendants. Scalzo consented to the administrative order and injunction without admitting or denying the allegations.