U.S. DISTRICT COURT ENTERS FINAL JUDGMENTS IN PENNY STOCK DISTRIBUTION SCHEME CHARGED BY THE SEC

FROM: U.S. SECURITIES AND EXCHANGE DEPARTMENT

The Securities and Exchange Commission ("Commission") announced today that the Honorable Roy B. Dalton, Jr. of the United States District Court for the Middle District of Florida entered final judgments against each of the five defendants in this case: Christel S. Scucci ("Scucci"), her mother Karen S. Beach ("Beach"), their companies Protégé Enterprises, LLC ("Protégé") and Capital Edge Enterprises, LLC ("Capital Edge"), and their attorney Cameron H. Linton, Esq. ("Linton"). The Commission’s complaint, filed on April 30, 2012, charged the defendants with a scheme to unlawfully acquire and sell shares of penny stock that were never registered for sale to the public, in violation of Section 5 of the Securities Act of 1933 ("Securities Act").

The final judgments imposed the relief detailed below:
On September 14, 2012, the Court entered a final judgment by consent as to defendant Linton: (1) permanently enjoining him from violating Section 5 of the Securities Act, (2) permanently enjoining him from providing professional legal services to any person in connection with the offer or sale of securities pursuant to, or claiming, an exemption under Securities Act Rule 144, or any other exemption from the registration provisions of the Securities Act, including, without limitation, participating in the preparation of any opinion letter relating to such offerings, (3) permanently barring him from participating in an offering of penny stock, and (4) ordering him to pay $13,750, including disgorgement of $6,250, and a civil penalty of $7,500. Linton consented to the entry of the final judgment without admitting or denying the allegations of the complaint.

In addition, Linton agreed to the issuance of a Commission order, pursuant to Rule 102(e) of the Commission’s Rules of Practice, suspending him from appearing or practicing before the Commission as an attorney, based on the entry of the injunction from violations of Section 5 of the Securities Act. In the Matter of Cameron H. Linton, Esq., Exchange Act Release No. 67912, September 21, 2012.
On November 5, 2012, the Court entered final judgments by default as to defendants Beach, Capital Edge, and Protégé: (1) permanently enjoining them from violating Section 5 of the Securities Act, (2) permanently barring them from participating in an offering of penny stock, (3) ordering Beach and Capital Edge to pay, jointly and severally, disgorgement and prejudgment interest totaling $268,936.73, ordering each to pay a civil penalty of $30,000, and (4) ordering Protégé to pay disgorgement and prejudgment interest totaling $1,419,143.16, and a civil penalty of $52,500.
On November 8, 2012, the Court entered a final judgment as to defendant Scucci: (1) permanently enjoining her from violating Section 5 of the Securities Act; (2) permanently barring her from participating in an offering of penny stock, and (3) ordering her to pay, jointly and severally with Protégé, disgorgement and prejudgment interest totaling $1,419,143.16, and to pay a civil penalty of $52,500. Scucci consented to the injunction and penny stock bar without admitting or denying the allegations of the complaint.