Florida Man Pleads Not Guilty in Securities Case Involving Preferred Spectrum
A status hearing is scheduled for 8:30 a.m. Feb. 7 in the case of Bartholomew Caso, 62, who pleaded not guilty last month to charges of selling unregistered securities in Preferred Spectrum Investments. Investigators for the Palm Beach (Fla.) Police Department said Caso had told investors that Preferred “purchased license applications from the Federal Communications Commission for airway frequencies."
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According to the probable cause affidavit filed with the 15th Judicial Circuit for Palm Beach County in the case, Caso, of Wellington, Fla., sold at least $375,000 worth of Preferred securities and received commissions from Preferred totaling $48,971.02.
The investigation by the department and the Florida Office of Financial Regulation (OFR) was launched as a result of a complaint by 89-year-old Josephine Stetson of Palm Beach (http://xrl.us/bn9xee), who said Caso convinced her to invest $25,000 in Preferred but she was told only a few months later that her entire investment was lost. An OFR spokeswoman declined to comment, saying OFR “has an open investigation and cannot comment further."
The affidavit said Caso has never been licensed by OFR to sell securities, and no Preferred securities were registered with OFR. At least one investor, identified as Ronald W. Black, invested $125,000 in Preferred securities, according to the affidavit, and Edward J. Shaerer invested $75,000. A total of nine Florida investors were listed.
(Editor’s Note: The police department affidavit says Preferred Spectrum Investments is “also known as Smartcomm,” a company which has sued Warren Communications News for defamation, misappropriation of trade secrets, injurious falsehood and interference with business relations as a result of a story Warren published about allegations of questionable practices by Smartcomm (CD March 5/12 p3). Warren has denied the charges. The affidavit provided no information to support the connection between the two companies, but Preferred shares an Arizona address with Smartcomm, Preferred corporate Secretary Carole Downs co-founded and is principal owner of Smartcomm, and Preferred and Smartcomm have made joint filings at the FCC, including in Docket DA 11-197 involving 800 MHz spectrum. Preferred President Michael Judy told us it isn’t correct that Preferred and Smartcomm are the same company but would provide little additional information, saying, “I need to check with counsel.” He did acknowledge that the firms shared an office, as well as Downs’ role in each.)