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Senior Citizen Alerts
SEC Takes Emergency Action to Halt $15 Million Fraud
Against Senior Citizens
Seeking asset freezes and appointment
of a temporary receiver
 July 15, 2006 - The Securities and Exchange
Commission announced yesterday that it filed an emergency enforcement
action to halt a fraudulent real estate investment scheme that bilked
senior citizens and retirees out of millions of dollars since 1996.
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Senior Citizen Alerts |
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The SEC's complaint, filed in the Western District
of New York, charges Edward "Ted" Tackaberry, Mark Palazzo and certain
related real estate investment companies, including Pittsford Capital,
L.L.C., Pittsford Capital Mortgage Partners, L.L.C., and Pittsford
Capital Group, Inc., with making fraudulent solicitations and
misappropriating investor funds. The Commission also charged Michael
Latini, Communicate Wireless, L.L.C., and Monroe Wireless, L.L.C. as
relief defendants. (See details on litigation below news story.)
In its emergency enforcement action, the Commission
seeks an asset freeze, appointment of a temporary receiver and the
return of the defendants' ill-gotten gains.
"This case emphasizes the SEC's commitment to
protecting elderly investors and to holding accountable those who
defraud senior citizens of their savings," said Mark K. Schonfeld,
Director of the Commission's Northeast Regional Office. "This case also
highlights the importance and timeliness of the SEC's upcoming Seniors
Summit to help protect older Americans from investment fraud."
The complaint alleges that from approximately 1996
to 2004, Tackaberry and Palazzo raised, in unregistered transactions, at
least $15 million from at least 275 investors, including many senior
citizens, by issuing promissory notes in various real estate investment
companies.
Tackaberry and Palazzo owned and managed all of
these real estate investment companies. The complaint further alleges
that the defendants have been engaged in a fraudulent scheme, in which
the defendants have made numerous misrepresentations and omissions to
investors concerning their investments and the real estate investment
companies' financial condition, including
● making, and failing to disclose, transfers of
large amounts of money, including a $2.4 million payment to Communicate
Wireless, L.L.C., an entity that Tackaberry and Palazzo had significant
personal interests in;
● making, and failing to disclose, transfers of money to Palazzo;
● failing to disclose that that they commingled the real estate
investment companies' assets in one bank account to fund the operations
of certain of the real estate investment companies; and
● falsely claiming that certain of the real estate companies would
retain an independent third-party agent to represent investors'
interests in connection with the offerings.
In its emergency enforcement action, the Commission
is seeking, among other emergency relief, a temporary restraining order
freezing the defendants and relief defendants' assets and appointing a
temporary receiver over the real estate investment companies and
affiliated entities.
In addition to this emergency relief, the
Commission also seeks orders enjoining the defendants, preliminarily and
permanently, from committing future violations of the foregoing federal
securities laws, and a final judgment ordering the defendants to
disgorge ill-gotten gains and assessing civil penalties.
The SEC's Seniors Summit will be held on Monday,
July 17th at 10:00 A.M., E.D.T., at SEC Headquarters and will be webcast
live on the Commission's Web site (www.sec.gov).
Litigation Release No. 19761 / July 14, 2006
Securities and
Exchange Commission V. Pittsford Capital Income Partners, L.L.C., et
al., Civil Action No. 06 CV 6353 (MAT) (W.D.N.Y.)
SEC Brings Emergency Action Against Mark
Palazzo, Edward Tackleberry and Certain Affiliated Entities to Halt
Ongoing Fraud Perpetrated on Senior Citizens
The Securities and Exchange Commission announced
today that it filed an emergency enforcement action to halt fraudulent
conduct against Edward "Ted" Tackaberry ("Tackaberry"), Mark Palazzo
("Palazzo"), Pittsford Capital, L.L.C., Pittsford Capital Mortgage
Partners, L.L.C., Pittsford Capital Group, Inc., Pittsford Capital
Income Partners, L.L.C., Pittsford Income Partners II, L.L.C., Pittsford
Income Partners III, L.L.C., Pittsford Income Partners IV, L.L.C.,
Pittsford Income Partners V, L.L.C., Jefferson Income Partners
(collectively, the "Defendants") and Michael Latini ("Latini"),
Communicate Wireless, L.L.C. ("Communicate Wireless"), and Monroe
Wireless, L.L.C. ("Monroe Wireless") (the "Relief Defendants").
The Complaint alleges that from approximately 1996
to 2004, Tackaberry and Palazzo raised, in unregistered transactions, at
least $15 million from at least 275 investors, including many senior
citizens, by issuing promissory notes in various real estate investment
companies. Tackaberry and Palazzo owned and managed all of these real
estate investment companies.
The Complaint further alleges that the Defendants
have been engaged in a fraudulent scheme, in which the Defendants have
made numerous misrepresentations and omissions to investors concerning
their investments and the real estate investment companies' financial
condition, including: (i) making, and failing to disclose, transfers of
large amounts of money, including a $2.4 million payment to Communicate
Wireless, an entity that Tackaberry and Palazzo had significant personal
interests in; (ii) making, and failing to disclose, transfers of money
to Palazzo; (iii) failing to disclose that that they commingled the real
estate investment companies' assets in one bank account to fund the
operations of certain of the real estate investment companies; and (iv)
falsely claiming that certain of the real estate companies would retain
an independent third-party agent to represent investors' interests in
connection with the offerings. The Defendants targeted senior citizens
and retirees when soliciting investments in these real estate investment
companies, and then misappropriated their funds.
The Complaint charges the Defendants with violating
Section 17 (a) of the Securities Act of 1933, Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
In its emergency enforcement action, the Commission
is seeking, among other emergency relief, a temporary restraining order
(i) freezing the Defendants and Relief Defendants' assets; and (ii)
appointing a temporary receiver over the real estate investment
companies and affiliated entities. In addition to this emergency relief,
the Commission also seeks orders enjoining the Defendants, preliminarily
and permanently, from committing future violations of the foregoing
federal securities laws, and a final judgment ordering the Defendants to
disgorge ill-gotten gains and assessing civil penalties.
[Securities and Exchange Commission v. Pittsford
Capital Income Partners, L.L.C., et al., Civil Action No. 06 Civ.6353
(MAT) (W.D.N.Y., filed July 14, 2006)] (L.R.19761)
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