PinnFund USA, Inc.

On March 21, 2001, the SEC obtained temporary restraining orders and asset freezes against Michael J. Fanghella, James L. Hillman, and entities they controlled. The SEC alleged that defendants defrauded at least 166 investors of more than $330 million, purportedly to fund a sub-prime mortgage business at PinnFund, USA. Instead, the defendants misappropriated the funds raised to support their extravagant lifestyle, to pay for PinnFund's operational losses, to fund personal investments, to pay themselves commissions and fees, and to make payments to investors as Ponzi-scheme "yields." For more information about the SEC's action, you can read litigation releases: 16941 (Mar. 22, 2001), 16945 (Mar. 23, 2001), 16992 (May 8, 2001), and 17040 (June 20, 2001).

The Court appointed Charles G. La Bella as Receiver over PinnFund. He has liquidated assets, including real property, automobiles, and offshore assets. For the latest information, you can visit the Receiver's website.

http://www.sec.gov/divisions/enforce/claims/pinnfund.htm