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harbormaster
08-05-2001, 11:55 PM
I did not recall seeing this one..
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Commission Halts Unregistered Activity
By Florida Firm, Donzi Miami, LP
Harrisburg, PA, June 5, 2000 - - - The Pennsylvania Securities Commission issued a Summary Order to Cease and Desist against Donzi Miami, LP (Donzi LP), Donzi Films, Inc. (Donzi Films) and Frank J. Grillo, President of Donzi Films, to halt unregistered securities activity in Pennsylvania. Donzi LP was purportedly formed to finance the development, production and exploitation of a motion picture entitled "Donzi, the Legend" and Donzi Films is the General Partner of Donzi LP.

In April and May 2000, the respondents, through their representatives, offered for sale Units in Donzi LP (Units) to at least two Pennsylvania residents. One solicited PA resident had no pre-existing relationship with the respondents and did not have sufficient knowledge in financial matters to be able to evaluate the merits and risks of the investment. Offering materials indicate that 100 Units are available at $250,000 per Unit, for a total capitalization of $25 million, and that $19 million of the funds raised in the offering will be paid to Four Starz Productions, Inc. (Four Starz) to produce the film, Donzi, the Legend. Four Starz Chairman, President and CEO is Abraham M. Daniels.

In connection with this offering, the respondents omitted to state material facts, i.e., that in April 1997, Abraham Daniels was convicted in the Dade County, FL Circuit Court for unlawful acts by a loan broker in connection with an advanced fee loan scheme, a felony of the third degree. Daniels was sentenced to 364 days in prison, fifteen years probation and ordered to pay restitution.

The Commission directed the respondents and affiliates to make no further solicitations or sales in Pennsylvania. The Units issued by Donzi LP are securities which are not registered with the Commission under Section 201 of the 1972 Securities Act, and no exemptions from registration are applicable.

Any further solicitations or sales made by these respondents in Pennsylvania will constitute further violations of the 1972 Act. Any person who is solicited by or has information about these companies or Grillo is asked to immediately notify the Pennsylvania Securities Commission by calling 800-600-0007, or, in the Harrisburg area: (717) 787-8061, in Pittsburgh: (412) 565-5083 or in Philadelphia: (215) 560-2088.

Contacts:
Scott A. Lane, Assistant Director
Division of Enforcement & Litigation
412/565-5083

Gearhead99
08-06-2001, 09:08 PM
That sure doesn't sound good.