On September 24, 2009, the Commission filed a Complaint against K&L International Enterprises, Inc., Signature Leisure, Inc., Signature Worldwide Advisors, LLC, Stephen W. Carnes, Lawrence A. Powalisz, Enzyme Environmental Solutions, Inc. and Jared E. Hochstedler (collectively, the “Defendants”) – alleging that from September 2007 to July 2009, Defendants violated the registration provisions of the securities laws by entering into a series of convertible promissory notes with several issuers in a scheme to evade securities registration requirements.  See the Commission’s Complaint.

In 2010, the Court entered final judgments against the Defendants, ordering them to pay disgorgement, prejudgment interest, and penalties.  The Defendants collectively paid $3,165,755.31 of the total amount the court ordered them to pay.  See the Defendant’s Final Judgments. 

The funds were initially held in the Court’s Registry Investment System, but were later transferred to the Commission to be deposited with the United States Department of the Treasury.  See the Court’s Order. 

On February 7, 2023, the Court granted the Commission’s motion to establish a Fair Fund, and appointed Miller Kaplan Arase, LLP as the Tax Administrator for the Fair Fund. See the Court’s Order. 

On March 21, 2023, the Court entered an order that appointed Rust Consulting, Inc. as the Distribution Agent responsible for administering the Fair Fund distribution.  See the Court’s Order. 

On April 4, 2023, the Court approved the Commission’s Distribution Plan (the “Plan”). See the Court’s Order and the approved Plan. 

The Plan provides for the distribution of the Fair Fund to compensate investors based on their losses in connection with Defendants’ sales of large numbers of unregistered shares of microcap securities into the over-the-counter market, using the methodology detailed in the Plan of Allocation, attached as Exhibit A to the Plan.

All claim forms are due by September 30, 2023 and are available on the Fair Fund’s website listed below.

For more information, please contact the Distribution Agent:

Rust Consulting, Inc.

Telephone Number: (833) 915-0952

Website: www.SECvKandLFairFund.com

Email:  info@SECvKandLFairFund.com