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by Mike Caswell

The U.S. Securities and Exchange Commission has won $4.41-million in civil sanctions for Berardino "Dino" Paolucci, a Toronto-area man it accused of participating in an OTC Bulletin Board manipulation. (All figures are in U.S. dollars.) The SEC claimed that he and others boosted a purported car parts company called Ecoland International Inc. with spam while selling millions of shares. The stock went to $1.24 from 11 cents in just 10 days.

The sanctions for Mr. Paolucci are contained in a judgment entered on Thursday, Aug. 10, in Pennsylvania. Mr. Paolucci's penalty includes $2.36-million in disgorgement and interest, plus a $2.05-million fine. In addition, the judge has permanently banned Mr. Paolucci from penny stocks and has entered an injunction prohibiting any future violations.

The judgment comes without any participation from Mr. Paolucci. He ignored the matter entirely, despite what the SEC said were successful efforts to serve him with its complaint. (There was some question about the success of those efforts, as the only documentation was a very brief note from a process server who attended an address in Mississauga. The note read: "Personal service. Claims Berardino is not him. However showed me his drivers licence and it read Dino Paolucci.")

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