SEC Brings Fraud Charges Against Magnum d'Or Resources and Former CEO

The SEC filed a civil action in the United States District Court for the Southern District of Florida against Magnum d'Or Resources, Inc. and its former chief executive officer and president Joseph J. Glusic of Henderson, Nevada, for antifraud and registration violations and against Dwight Flatt of Delray Beach, Florida, David Della Sciucca, Jr. of Fort Lauderdale, Florida, and Shannon Allen of Miami, Florida for registration violations.

According to the SEC's complaint, Magnum issued stock pursuant to false Form S-8 registration statements, and used bogus consultants to funnel more than $7 million in illicit stock proceeds back into the company. The SEC alleges that in facilitating this kickback scheme, Magnum garnered the assistance of Flatt, Sciucca, and Allen who liquidated Magnum S-8 stock, kept a portion of the sales proceeds, and then returned more than $7 million of the remaining sales proceeds to Magnum under the guise of loan agreements. The SEC's complaint also alleges that Magnum made false and misleading statements in its Form S-8 registration statements and in various press releases during the relevant time period.

Glusic and Allen have agreed to settle the charges against them. Glusic has also agreed to pay disgorgement of $1,878 with prejudgment interest of $231, and a $50,000 civil penalty. Allen has agreed to pay disgorgement of $80,742 with prejudgment interest of $6,258 and a $25,000 civil penalty and to surrender for cancellation approximately 1.4 million shares of Magnum common stock.