U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19173 / April 6, 2005

SEC v. U.S. Funding Corporation, U.S. Funding Company, Capital Concept Marketing, Inc., Angelica Gwinnett, and Charles Fremer, Case No. CV 02-2089 WJM (D.N.J.)

COURT AWARDS SEC OVER $600,000 FROM FLORIDA TELEMARKETERS IN NATIONWIDE INVESTMENT SCAM

The Securities and Exchange Commission announced today that on March 28, 2005, the United States District Court for the District of New Jersey entered a Final Judgment against Florida resident Charles Fremer and his wholly-owned telemarketing company, Capital Concept Marketing, Inc. (CCM). The Court enjoined Fremer and CCM from future violations of the securities registration and broker provisions of the federal securities laws and ordered them to pay almost $580,000 in disgorgement and prejudgment interest. Fremer was also ordered to pay a $50,000 penalty.

On May 2, 2002, the Commission sued U.S. Funding Corporation, a New Jersey company, and its president, Angelica Gwinnett, for defrauding investors out of at least $2 million in an investment scam. The Commission's complaint also alleged that CCM and Fremer, in selling U.S. Funding's securities, acted as unregistered brokers. The Court entered a temporary restraining order and later a preliminary injunction enjoining further investor solicitations and freezing U.S. Funding's and CCM's assets. On May 20, 2002, the Court appointed a receiver over U.S. Funding. Criminal charges were later brought against Ms. Gwinnett by the United States Attorney's Office.

The judgment against CCM and Fremer followed grant of the Commission's motion for summary judgment in which the Court found that, from November 2001 to March 2002, CCM and Fremer raised over $1.4 million from 42 investors nationwide. In return, U.S. Funding paid CCM and Fremer $501,385 in telemarketing commissions.

The Final Judgment permanently enjoins CCM and Fremer from future violations of Sections 5(a) and 5(c) of the Securities Act of 1933, which prohibits the unregistered offer and sale of securities, and Section 15(a) of the Securities Exchange Act of 1934, which prohibits acting as an unregistered securities broker. In addition to the $50,000 penalty against Fremer, the Court required Fremer and CCM to disgorge their ill-gotten gains of $501,385 plus prejudgment interest of $78,427.

http://www.sec.gov/litigation/litreleases/lr19173.htm