Syndicated Food Service International, Inc., et al.,

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 22751 / July 12, 2013

Securities and Exchange Commission v. Syndicated Food Service International, Inc., et al.,, Civil Action No. 04-CV-1303 (NGG) (E.D.N.Y.)

Court Enters Final Judgments Against Defendants Syndicated Food Service International, Inc., Nick Pirgousis, Frank Dolney, Gary Todd, Mario Casias, Thomas Tanis, Iain H.T. Brown, Fidra Holdings Ltd., William Brown, Joseph Ferragamo, and Christopher Quintana, and Dismisses Claims Against Defendants Delta Asset Management Company, LLC, William Scott, and Michelle Kramish Kain

The Securities and Exchange Commission announced today that on July 3, 2013, the Honorable Nicholas G. Garaufis, United States District Judge for the Eastern District of New York, entered a final judgment against defendant Syndicated Food Service International, Inc. The Court enjoined Syndicated from future violations of Section 17(a) of the Securities Act of 1933, Sections 10(b) and 13(a) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-1, and 13a-13 thereunder. Syndicated consented to the final judgment without admitting or denying the allegations in the Commission's complaint.

Between March 22, 2012 and April 26, 2013, the Court entered final judgments against defendants Nick Pirgousis, Frank Dolney, Gary Todd, Mario Casias, and Fidra Holdings Ltd. The Court enjoined Pirgousis, Dolney, Todd, Casias, and Fidra from future violations of Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. Pirgousis and Dolney were also enjoined from future violations of Sections 13(d) and 16(a) of the Exchange Act and Rules 13d-1, 13d-2, and 16a-3 thereunder, and Pirgousis was enjoined from future violations of Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13 thereunder. The Court also barred Pirgousis and Dolney from acting as officers or directors of any public company, and Todd and Casias from participating in penny stock offerings. Pirgousis, Dolney, Todd, Casias, and Fidra consented to the final judgments without admitting or denying the allegations in the Commission's complaint.

On December 14, 2012 and April 25, 2013, the Court entered final judgments against defendants Thomas Tanis and Iain H.T. Brown, respectively. The Court enjoined Tanis from future violations of Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1, 13a-13, and 13a-14 thereunder and ordered a $110,000 civil penalty. The Court enjoined Iain H.T. Brown from future violations of Section 17(a) of the Securities Act, Sections 10(b), 13(d), and 16(a) of the Exchange Act and Rules 10b-5, 13d-1, 13d-2, and 16a-3 thereunder and ordered disgorgement of $78,000 plus $49,000 in prejudgment interest and a $78,000 civil penalty. The Court also barred Iain H.T. Brown from participating in a penny stock offering. Tanis and Iain H.T. Brown consented to the final judgments without admitting or denying the allegations in the Commission's complaint.

On March 19, 2010, the Court entered default judgments against defendants William Brown and Christopher Quintana, and on November 12, 2010, the Court entered a default judgment against defendant Joseph Ferragamo. The Court enjoined William Brown, Quintana, and Ferragamo from future violations of Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and barred them from participating in penny stock offerings.

On October 20, 2010, the Court entered a Notice of Voluntary Dismissal as to defendant Delta Asset Management Company, LLC, a defunct company that has no assets or income. On February 3, 2012 and February 15, 2012, the Court entered Orders of Consent dismissing all claims asserted by the Commission against defendants Michelle Kramish Kain and William Scott, respectively.

The Commission's Complaint alleged that from 1997 through 2003, the defendants participated in a massive broker bribery scheme involving the stock of nine public companies, including Syndicated. Through the use of domestic and offshore nominee brokerage accounts, the defendants sold stock into the public market for personal gain and paid undisclosed kickbacks to brokers responsible for selling the stock.

For further information, see Litigation Release No. 18643 (March 29, 2004), Litigation Release No. 21239 (Oct. 7, 2009), and Litigation Release No. 21273 (Nov. 2, 2009).

PERSONS TO CONTACT:

Gerald Gross, Assistant Regional Director, 212-336-0085, Todd D. Brody, Senior Trial Counsel, 212-336-0080