UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 17889 / December 10, 2002

Securities and Exchange Commission v. Capital Acquisitions, Inc, et al., Civil Action No. 2:97-0977B (D. Utah)

On December 5, 2002, United States District Court Judge Dee Benson entered a Final Judgment of Permanent Injunction against defendant Wayne C. Notwell in Securities and Exchange Commission v. Capital Acquisitions, Inc, et al. The judgment prohibits future violations of the registration and antifraud provisions of the federal securities laws, Sections 5(a), 5(c) and 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 amended complaint in the case, the Commission alleged that Notwell engaged in fraudulent schemes by selling high-yield promissory notes to investors throughout the United States. The notes were issued by Laser Leasing, Inc. and Capital Acquisitions, Inc. Investors were not told, among other things, that the businesses of Laser Leasing and Capital Acquisitions did not produce income sufficient to repay investors; that investors were instead being repaid from the proceeds of investments made by new investors; and that extremely high commissions were being paid to sales personnel. Notwell consented to entry of the injunction without admitting or denying the allegations of the Commission's complaint. The Court ordered Notwell to disgorge $68,000 in ill-gotten gains, but payment was waived based on Notwell's demonstrated inability to pay.

The Commission's civil case is proceeding against defendant Clealon B. Mann. In a related matter, on November 26, 2002, a grand jury for the District of Utah issued an indictment against Mann alleging conspiracy, sale of unregistered securities, wire fraud, and mail fraud in connection with the Capital Acquisitions, Inc. offering.

For further information on this case, see Litigation releases 17757 (September 30, 2002), 16083 (March 9, 1999), 15868 (September 2, 1998), 15670 (March 13, 1998), and 15601 (December 23, 1997).

http://www.sec.gov/litigation/litreleases/lr17889.htm