The Securities and Exchange Commission announced today that on October 3, 2006, the United States District Court for the Southern District of Florida sentenced Joseph Y. Zumwalt to a federal prison term of 60 months and ordered that he pay criminal restitution in the amount of $4.49 million. Zumwalt, a stock promoter living in Fort Lauderdale, Florida, was convicted after pleading guilty to a hedge fund fraud that victimized several investors, including two nonprofit organizations. The SEC previously filed settled civil fraud charges against Zumwalt. See Litigation Release No. 19842 (September 21, 2006).

The SEC acknowledges the assistance of the United States Attorney's Office for the Southern District of Florida, Federal Bureau of Investigation and Florida Office of Financial Regulation. The SEC's investigation is continuing.

http://www.sec.gov/litigation/litrel...06/lr19858.htm

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