ALABAMA SECURITIES COMMISSION

770 WASHINGTON AVE, SUITE 570

MONTGOMERY, ALABAMA 36130-4700

Telephone: (334) 242-2984 or 1-800-222-1253. Fax: (334) 242-0240

Email:  asc@asc.state.al.us.  Website:  www.asc.state.al.us

 

FOR IMMEDIATE RELEASE

 

MONTGOMERY, ALABAMA (October 28, 2002) - Honorable Randall Houston, District Attorney for the Nineteenth Judicial Circuit and Honorable Joseph P. Borg, Director of the Alabama Securities Commission, announced today that Michael Eugene Carreca, of Prattville, Alabama pled guilty to 2 counts of Fraud in Connection with the Sale of Securities before the Honorable Judge Ben A. Fuller on October 25, 2002. 

 

A sentencing hearing for Carreca has been set for December 5, 2002 and he faces 15 years of imprisonment and the payment of restitution to investors of approximately $110,000.

 

An investigation by the Alabama Securities Commission disclosed that Carreca, the owner of Southern Diversified Business Enterprises, Inc. (SDBE), illegally sold common stock of his corporation to investors.  The investors were misled to believe that the SDBE was in healthy financial condition, when it was actually in Chapter 11 bankruptcy. 

 

On February 12, 2001 Carreca was arrested by the Autauga County Sheriff's Department and released on a $30,000 bond.  This was due to a Grand Jury indictment of 8 counts of Fraud in Connection with the Sale of Securities, 2 counts of Theft in the First Degree, 3 counts of Sale of Unregistered Securities, and 3 counts of Sale of Securities by an Unregistered Agent. 

 

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The Director of the Alabama Securities Commission (ASC) cautions potential investors to thoroughly check out any investment opportunity.  Contact ASC for inquiries regarding securities broker-dealers, agents, investment advisors, and investment advisor representatives, the registration status of securities, to report suspected fraud, or obtain consumer information: 

 

ALABAMA SECURITIES COMMISSION

770 WASHINGTON AVE, SUITE 570

MONTGOMERY, ALABAMA 36130-4700

 

Telephone: (334) 242-2984 or 1-800-222-1253. Fax: (334) 242-0240

Email:  asc@asc.state.al.us.  Website:  www.asc.state.al.us

 

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If you have questions or require more information contact:

Daniel G. Lord

Education and Public Affairs Manager