Presto Telecommunications, Inc.

On January 27, 2004, the SEC obtained a temporary restraining order, asset freeze, and other relief against Presto Telecommunications, Inc. and A.L. "Bobby" Vassallo, Jr. The SEC alleged the defendants fraudulently induced more than 800 investors in 42 states to invest over $11 million in Presto. Specifically, the SEC alleged the defendants, among other things, falsely stated the company had significant business relationships with some of the major telecommunication companies, which expressed interest in acquiring Presto or in making capital investments in the company. The SEC also alleged that Vassallo and others represented investor funds would be limited to Presto's business expenses to buy fiber optics and equipment; instead, only 16% of the funds were used for these purposes and Vassallo misappropriated at least $1.2 million for personal expenses. For more information about the SEC's action, you can read Litigation Release No. 18554 (Jan. 28, 2004).

The Court also appointed Thomas F. Lennon as Receiver over Presto. For the latest information, you can visit the Receiver's website.

http://www.sec.gov/divisions/enforce/claims/presto.htm