Tuesday, September 18, 2007
The SEC announced that on September 12, 2007, it filed an emergency civil action against University Lab Technologies, Inc. (ULT) of Boca Raton, Florida and George Theodoropoulos, a/k/a George Theodore (Theodore), in connection with a fraudulent and unregistered offering of ULT securities. The SEC alleges that from at least December 2006 through May 2007, ULT and Theodore raised over $1 million from approximately 46 investors nationwide and in Canada. Among other things, the SEC's complaint alleges that the defendants made false and misleading representations and omissions regarding the use of the ULT offering proceeds. The defendants failed to tell investors that the company was paying commissions to its telemarketers of up to 55% of the proceeds raised plus up to 30% in ULT stock of the securities sold to new investors, according to the allegations in the Complaint. The Complaint further alleges that the defendants misrepresented the percentage of ULT ownership the investors would receive through their participation in the offering.
On September 12, 2007, the Honorable Donald M. Middlebrooks, United States District Judge for the Southern District of Florida granted the SEC's request and entered an emergency order temporarily freezing the assets of ULT, prohibiting the destruction of documents, and providing for expedited discovery and a sworn accounting. A show cause hearing has been set for September 20, 2007, in West Palm Beach, Florida, to determine whether the emergency asset freeze and other relief should remain in effect. On the SEC's motion for a receiver, the Court appointed Michael Goldberg, an attorney with the law firm of Akerman Senterfitt, as receiver over ULT. Among other things, Mr. Goldberg is responsible for taking control of ULT and marshalling and safeguarding its assets.