SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 18272 / August 6, 2003

SEC FILES CONTEMPT ACTION AGAINST DEFENDANT GEORGE CARAPELLA AND RELIEF DEFENDANTS LEONORA CARAPELLA AND CARAPELL CAPITAL CORP.

SECURITIES AND EXCHANGE COMMISSION V. TEL-ONE, INC, ET AL., Case No. 02-CV-120-T-30TGW (M.D. Fla.)

The Securities and Exchange Commission (SEC) announced that on July 30, 2003, it filed with the United States District Court for the Middle District of Florida an Application for an Order to Show Cause why Defendant George Carapella (Carapella) and Relief Defendants Leonora Carapella and Carapell Capital Corp. (collectively, Relief Defendants) should not be held in civil contempt for failing to comply with the Court's Final Judgment of Permanent Injunction and Other Relief entered on July 12, 2002.

On January 22, 2002, the SEC filed its Complaint, on an emergency basis, to prevent Carapella and others, from continuing to defraud the public through a "pump and dump" scheme involving the stock of Tel-One, Inc. That same day, the Court granted the SEC's request for a Temporary Restraining Order, and other interim relief. On July 12, 2002, the Court entered a Final Judgment of Permanent Injunction and Other Relief against Carapella and Relief Defendants (Judgment). The Judgment required that all disgorgement and civil penalties be paid in full no later than February 2003. To date, Carapella and Relief Defendants have not complied with the Judgment. The application is still pending before the Court.

For more information on earlier actions in this case, see Litigation Release No. 17337 (January 24, 2002) and Litigation Release No. 17615 (July 15, 2002).

http://www.sec.gov/litigation/litreleases/lr18272.htm