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Microcap & Penny Stocks : Chester Holdings, Ltd. - CHES -- Ignore unavailable to you. Want to Upgrade?

To: thomas oakley who wrote (505)	3/15/1999 10:28:00 AM
From: Milk	Read Replies (1) \| Respond to of 1174

(3/12/99) JOSEPH AND CONSTANCE PIGNATIELLO ORDERED TO PAY $3.5 MILLION IN CONNECTION WITH AQUA BUOY FINANCIAL FRAUD The United States District Court for the District of New Jersey issued a final judgment against defendants Joseph and Constance Pignatiello (the Pignatiellos) and: (1) permanently enjoined the Pignatiellos from violating the federal securities laws; (2) ordered the Pignatiellos to pay disgorgement of $2,106,185.14 and to pay prejudgment interest of $1,398,641.98; (3) permanently enjoined Joseph Pignatiello from serving as an officer or director of a public company; and (4) enjoined Constance Pignatiello from serving as an officer or director of a public company for five years. Judgment was entered on February 22, 1999, after the Court granted the Commission's motion for summary judgment. The Court found that the Pignatiellos, former officers of Aqua Buoy Corporation (Aqua Buoy), now known as Chester Holdings, Ltd., violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder, and Section 20(a) of the Exchange Act when they made false public statements concerning the Aqua Buoy's financial condition and sold their own Aqua Buoy stock at inflated prices. Previously, on August 8, 1997, the Court entered a final judgment by consent against Aqua Buoy, which consented to the entry of the judgment without admitting or denying the allegations in the complaint and was permanently enjoined from violating the antifraud provisions, Section 10(b) of the Exchange Act and Rule 10b-5, and Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11, and 13a-13. Also, on October 8, 1998, the Court entered a final judgment by consent against Werner, who consented to the entry of the judgment without admitting or denying the allegations in the complaint and was permanently enjoined from violating the antifraud provisions, Section 10(b) of the Exchange Act and Rule 10b-5, Section 20(a) of the Exchange Act, and Section 17(a) of the Securities Act, and ordered to disgorge $74,625.00 and pay $43,020.42 in prejudgment interest. Payment of the disgorgement and prejudgment interest was waived, and the Court did not impose civil penalties, based on Werner's demonstrated inability to pay. [SEC v. Chester Holdings, Ltd., formerly named Aqua Buoy Corporation, Joseph Pignatiello, Constance Pignatiello and Christopher Werner, 97 Civ. 1654, D. N.J., MTB] (LR-16084) sec.gov