SEC Links Tangled Mess to PermaPave

     MANHATTAN (CN) – The SEC accused Ronald Feldstein of “pretending to be the president of LED Capital Corp.” to aid and abet securities violations by Interlink-US-Network, “a publicly traded company with no business operations and liabilities that exceeded assets by over $2 million.”
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     In its federal complaint, the SEC accused Feldstein of pretending to have invested $6 million in Interlink. “The investment, if real, would have provided the struggling company with a much-needed capital infusion,” the SEC says in the complaint.
     Feldstein, 65, of New York City, is the only defendant in the case, which names several other “relevant persons and entities,” including LED Capital Corp.; LED Capital LLC, “a fictitious company;” Interlink-US-Network Ltd., of Los Angeles; the Verigreen Group; Robert Kondratick, 41, of Syosset, N.Y., “99 percent owner of the Verigreen Group” and president and chairman of the board of Interlink; and others.
     Verigreen bought 72 percent of the shares of Interlink common stock in June 2010, the SEC says.
     The SEC says a Verigreen affiliate, PermaPave Industries, raised more than $26 million by claiming it had a “tremendous backlog of orders” for its paving stones, though “there was actually little demand for the product, and the cost of the pavers far exceeded the revenue from sales.”
     Federal prosecutors and the SEC in April accused four PermaPave executives of defrauding investors, including Eric Aronson, 44, of Syosset, and Fredric Aron, 47, of Port Washington, both of whom are named as “relevant persons” in the complaint against Feldstein.
     In its new complaint, the SEC claims that Interlink recruited Feldstein to pretend to be an investor in October 2010. “Feldstein, pretending to be the president of LED Capital Corp., a privately held company with no business operations and no assets, entered into an agreement with Interlink concerning the purported investment. Feldstein, however, had no position at, or affiliation with, LED Capital Corp.,” the SEC says in its complaint.
     Feldstein “purported to commit LED Capital Corp. to purchase 1.2 million shares of Interlink common stock for $6 million,” the SEC says. “At the time, however, Interlink shares traded just below $1 per chare, and 1.2 million shares were worth approximately $1.1 million, or approximately $4.9 million less than the contract price.”
     The SEC claims that Interlink gave Feldstein stock worth more than $400,000 for his efforts. It accuses him of aiding and abetting Interlink and Kondratick in violating securities laws.

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