SEC v. Wall Street Communications, Inc., Civil Action No. 8:09-cv-1046 (M.D. Fla.) is an action against Howard Scalia and his company, Wall Street Communications as well as Ross Barall and Donald McKelvey. The complaint alleged manipulative schemes including one in which Wall Street and Mr. Scalia acquired large blocks of thinly-traded microcap companies for little or no consideration and then created a market for the shares using either spam emails or coordinated manipulative trading with accounts controlled by Mr. Barall. The second scheme was alleged to have involved the illegal acquisition of 8.6 million shares of Telco-Technology under a Form S-8 registration statement. After acquiring the shares they were allegedly sold in a fraudulent unregistered offering with half of the proceeds going to a company controlled by Mr. McKelvey. The complaint alleged violations of Securities Act Sections 5 and 17(a) and Exchange Act Sections 10(b). This week the Commission settled with Defendant McKelvey who agreed to the entry of a permanent injunction prohibiting future violations of Securities Act Sections 5, 17(a)(2) and 17(a)(3). Questions regarding disgorgement, prejudgment interest and a civil penalty are reserved for the court. The Commission dropped all scienter based charges.