This case was last updated from PACER on 04/30/2021 at 10:29:58 (UTC).

Securities and Exchange Commission v. Earthsource Minerals International, LLC et al

Case Summary

On March 1, 2021, the Securities and Exchange Commission (“SEC”) represented by Julia C. Green, attorney at SEC’s Philadelphia Regional Office filed a civil enforcement action against EarthSource Minerals International, LLC (“ESM”), Abundant Resource Development, LLLP (“Abundant”), Jason M. Wendt (“Wendt”), Armando Costabile (“Costabile”), Premier Minerals International, LLC (“PMI”) and Michael J. Palermo (“Palermo”) (collectively, “Defendants”), seeking injunctive relief, disgorgement of all ill-gotten gains among other reliefs for the alleged fraudulent offer and sale of at least $4.7 million of securities to approximately 234 investors through their companies. This case was filed in U.S. District Court in the Western District of New York with Judge Elizabeth A. Wolford and Judge Frank P. Geraci, Jr. presiding. 

 

In its complaint, the SEC alleged that “This case concerns two overlapping offering frauds involving the sale of investments related to gold and diamonds in Liberia in which defendants raised more than $5 million from approximately 250 investors. In soliciting these investments, Defendants misled investors about the safety and security of the investments, the use of investor funds, the extent of the companies’ assets and liabilities and the companies’ historical production and profitability. From at least September 2014 through December 2019, Wendt and Costabile, through their companies, ESM and Abundant, fraudulently induced at least 234 investors to purchase more than $4.7 million in securities, the proceeds of which were to be used to fund ESM’s mining business in Liberia.”

 

The SEC further alleged that “From at least December 2015 through April 2018, Palermo, through his company, PMI, with the assistance of ESM, Wendt and Costabile, fraudulently induced 22 investors to purchase an additional $501,906 in PMI securities, the proceeds of which were purportedly to be invested in ESM’s mining business in Liberia. Instead of using investor funds as promised, Palermo misappropriated the majority of the money he raised through PMI. Palermo used investor funds to pay rent on his home, personal automobile loan payments and for household expenses, travel and entertainment expenses for his family and frequent purchases at restaurants, grocery, convenience and department stores. Palermo also used investor funds to repay prior investors purported interest or profits distributions.” and even further that “Wendt and Costabile knew that their representations on behalf of Abundant regarding ESM’s outstanding liabilities at the time of the partner separation, its historical mining production rates, the value of its infrastructure assets and the profitability of the ESM DFP were False.”

 

There are two claims for relief laid down by the SEC. The first claim is for violations of Section 17(a) of the Securities Act and the second claim is for violations of Section 10(b) of the Exchange Act and Rule 10b-5 Thereunder. 

 

In its prayer for relief, the SEC has requested the court to permanently restraining and enjoining Defendants from violating any of the provisions alleged in the complaint, order disgorgement of ill-gotten gains derived. The SEC further requested the court to order Defendants Wendt, Costabile and Palermo to pay civil penalties and lastly to grant the SEC costs of litigation. 

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    6:21-CV-06198

  • Filing Date:

    03/01/2021

  • Case Status:

    Disposed - Other Disposed

  • Case Type:

    Finance - Security/Commodity/Exchange

Judge Details

Presiding Judges

Elizabeth A. Wolford

Frank P. Geraci, Jr.

 

Party Details

Plaintiff

Securities and Exchange Commission

Defendants

Michael J. Palermo

Jason M. Wendt

Abundant Resource Development, LLLP

Armando Costabile

Earthsource Minerals International, LLC

Premier Minerals International, LLC

Attorney/Law Firm Details

Plaintiff Attorney

Julia C. Green

Attorney at U.S. Securities & Exchange Commission

1617 Jfk Boulevard, Suite 520

Philadelphia, PA 19103

 

Court Documents

#11

#10

#9

#8

#7

#6

5 #12

Proposed Judgment as to Michael J. Palermo

5 #11

Consent of Michael J. Palermo

5 #10

Proposed Judgment as to Premier Minerals International

5 #8

Proposed Judgment as to Armando Constabile

5 #7

Consent of Armando Constabile

5 #6

Proposed Judgment as to Jason M. Wendt

5 #5

Consent of Jason M. Wendt

5 #4

Proposed Judgment as to Abundant Resource Development

5 #3

Consent of Abundant Resource Development

5 #2

Proposed Judgment as to EarthSource Minerals International

5 #1

Consent of EarthSource Minerals International

#5

19 More Documents Available
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Docket Entries

  • 04/02/2021
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  • Docket(#12) TEXT ORDER: Pursuant to #5 Letter filed by Securities and Exchange Commission, the Executed Consent of each Defendant [5-1], [5-3], [5-5], [5-7], [5-9], and [5-11], and the Orders for Final Judgment as to each Defendant executed by this Court #6 , #7 , #8 , #9 , #10 , #11 , the Clerk of Court is directed to enter judgment and close this case. SO ORDERED. Signed by Hon. Frank P. Geraci, Jr. on 04/02/2021. (SFR)-CLERK TO FOLLOW UP- (Entered: 04/02/2021)

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  • 03/29/2021
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  • Docket(#11) ORDER FOR FINAL JUDGMENT AS TO DEFENDANT EARTHSOUCE MINERALS INTERNATIONAL, LLC. Signed by Hon. Frank P. Geraci, Jr. on 3/26/2021. (BK) (Entered: 03/31/2021)

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  • 03/29/2021
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  • Docket(#10) ORDER FOR FINAL JUDGMENT AS TO DEFENDANT JASON M. WENDT. Signed by Hon. Frank P. Geraci, Jr. on 3/26/2021. (BK) (Entered: 03/31/2021)

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  • 03/29/2021
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  • Docket(#9) ORDER FOR FINAL JUDGMENT AS TO DEFENDANT ABUNDANT RESOURCE DEVELOPMENT, LLLP. Signed by Hon. Frank P. Geraci, Jr. on 3/26/2021. (BK) (Entered: 03/30/2021)

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  • 03/29/2021
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  • Docket(#8) ORDER FOR FINAL JUDGMENT AS TO DEFENDANT ARMANDO CONSTABILE. Signed by Hon. Frank P. Geraci, Jr. on 3/26/2021. (BK) (Entered: 03/30/2021)

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  • 03/29/2021
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  • Docket(#7) ORDER FOR FINAL JUDGMENT AS TO DEFENDANT PREMIER MINERALS INTERNATIONAL, LLC. Signed by Hon. Frank P. Geraci, Jr. on 3/26/2021. (BK) (Entered: 03/30/2021)

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  • 03/29/2021
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  • Docket(#6) ORDER FOR FINAL JUDGMENT AS TO DEFENDANT MICHAEL J. PALERMO. Signed by Hon. Frank P. Geraci, Jr. on 3/26/2021. (BK) (Entered: 03/30/2021)

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  • 03/24/2021
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  • Docket(#5) Letter filed by Securities and Exchange Commission as to Premier Minerals International, LLC, Jason M. Wendt, Abundant Resource Development, LLLP, Michael J. Palermo, Earthsource Minerals International, LLC, Armando Costabile . (Attachments: #1 Consent of EarthSource Minerals International, #2 Proposed Judgment as to EarthSource Minerals International, #3 Consent of Abundant Resource Development, #4 Proposed Judgment as to Abundant Resource Development, #5 Consent of Jason M. Wendt, #6 Proposed Judgment as to Jason M. Wendt, #7 Consent of Armando Constabile, #8 Proposed Judgment as to Armando Constabile, #9 Consent of Premier Minerals International, #10 Proposed Judgment as to Premier Minerals International, #11 Consent of Michael J. Palermo, #12 Proposed Judgment as to Michael J. Palermo)(Green, Julia) (Entered: 03/24/2021)

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  • 03/05/2021
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  • Docket(#4) ORDER granting request to hold in abeyance the signing of Final Judgments. Signed by Hon. Frank P. Geraci, Jr. on 3/5/21. (JHF) (Entered: 03/05/2021)

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  • 03/03/2021
  • DocketCase reassigned to Hon. Frank P. Geraci, Jr. Hon. Elizabeth A. Wolford no longer assigned to the case. (CGJ) (Entered: 03/03/2021)

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  • 03/02/2021
  • Docket(#3) TEXT ORDER OF RECUSAL. The undersigned's father represents one or more the defendants in this matter. Accordingly, the undersigned hereby recuses herself. The Clerk of Court is instructed to reassign the matter to another district judge. SO ORDERED. Signed by Hon. Elizabeth A. Wolford on 03/02/2021. (CDH) -CLERK TO FOLLOW UP- (Entered: 03/02/2021)

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  • 03/02/2021
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  • Docket(#2) Summons Issued as to Abundant Resource Development, LLLP, Armando Costabile, Earthsource Minerals International, LLC, Michael J. Palermo, Premier Minerals International, LLC, Jason M. Wendt. (CGJ) (Entered: 03/02/2021)

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  • 03/02/2021
  • DocketAUTOMATIC REFERRAL to Mediation The ADR Plan is available for download at #http://www.nywd.uscourts.gov/alternative-dispute-resolution.(CGJ) (Entered: 03/02/2021)

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  • 03/02/2021
  • DocketNotice of Availability of Magistrate Judge: A United States Magistrate of this Court is available to conduct all proceedings in this civil action in accordance with 28 U.S.C. 636c and FRCP 73. The Notice, Consent, and Reference of a Civil Action to a Magistrate Judge form (AO-85) is available for download at #http://www.uscourts.gov/services-forms/forms. (CGJ) (Entered: 03/02/2021)

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  • 03/02/2021
  • DocketCase assigned to Hon. Elizabeth A. Wolford. Notification to Chambers of on-line civil case opening. (CGJ) (Entered: 03/02/2021)

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  • 03/01/2021
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  • Docket(#1) COMPLAINT against All Defendants, filed by Securities and Exchange Commission. (Attachments: #1 Civil Cover Sheet, #2 Summons (EarthSource), #3 Summons (Abundant), #4 Summons (J. Wendt), #5 Summons (A. Costabile), #6 Summons (Premier), #7 Summons (Palermo))(Green, Julia) (Entered: 03/01/2021)

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