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Alfred Louis "Bobby" Vassallo showed up yesterday (Oct. 7) for a hearing on whether he should be held in contempt of court. He had no lawyer. Vassallo claimed he didn't understand why the Securities and Exchange Commission is pursuing him. There are several reasons: he fleeced a bunch of investors in a company named Presto Telecommunications. In 2005, the SEC enjoined him permanently from committing securities fraud. He was told to pay the agency $2 million and has not done so. He has gone on to launch other telecommunications businesses. The SEC showed in court how Vassallo is up to his old tricks: he tells investors their money will go for equipment and then he steers the bucks into his lush lifestyle. He was told to show up Oct. 25 with a lawyer. Judge Irma Gonzalez has warned that he might get jail time. After a bankruptcy, Vassallo left La Jolla and returned to his native Texas, but is now living on Marine St. in La Jolla, says the SEC.

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Comments

SurfPuppy619 Oct. 8, 2010 @ 5:38 p.m.

And just where does this clown get the cash to live in La Jolla??? Marine Street no less????

Might get jail time????? Irma Gonzales was the chief justice for the southern district, don't know if she still is, but I don't like her.

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Founder Oct. 8, 2010 @ 6:33 p.m.

So much for another person that thumbs his nose at the SEC, I guess he is not worried about getting any J-Time; perhaps he has friend in High Places...

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Don Bauder Oct. 8, 2010 @ 6:34 p.m.

Response to post #1: In his prior time in San Diego, he lived on W. Muirlands in La Jolla and sent his wife's children to private school abroad. The receiver got the court to agree the house had to be sold. Vassallo ducked his financial obligations in the receivership, too. Gonzalez was the judge then, also. He has numerous ties to offshore financial institutions in such havens as Nauru. Best, Don Bauder

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Don Bauder Oct. 8, 2010 @ 6:36 p.m.

Response to post #2: Although it is a hearing on a civil contempt, Judge Gonzalez has mentioned the possibility of his landing in the hoosegow. Best, Don Bauder

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SurfPuppy619 Oct. 9, 2010 @ 8:32 a.m.

Although it is a hearing on a civil contempt

Contempt of court is contempt of court- civil or criminal-you do it once you get a warning, you do it again you go to the slammer.

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a2zresource Oct. 9, 2010 @ 8:54 a.m.

The current Presto Communications website contains no information about business entity structure, only that it offers a variety of telecommunication services and/or products. The only email address found at the site is apparently for the webmaster or administrator, with no sales contacts actually listed.

From the current open SEC complaint:

"Since at least 1998, Presto and Vassallo have offered and sold Presto common stock to at least 800 investors in 42 states. The defendants have raised at least $11 million from investors."

http://www.sec.gov/litigation/complaints/comp18554.htm

Civil contempt incarceration for SEC violations... what a wonderful concept!

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Visduh Oct. 9, 2010 @ 7:50 p.m.

When civil remedies fail, the only option for a judge is to jail a party for contempt. Generally those incarcerations are brief, and the jailed person makes a genuine effort to avoid being jailed again. Says a lot for the deterrent effect of our jails. That may be a good thing.

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Don Bauder Oct. 9, 2010 @ 10:17 p.m.

Response go post #5: Vassallo also reneged on money owed the receiver. Best, Don Bauder

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Don Bauder Oct. 9, 2010 @ 10:20 p.m.

Response to post #6: I did two columns on Vassallo back in 2003 for the Reader. You might read them and find out even more about this guy. Best, Don Bauder

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Don Bauder Oct. 9, 2010 @ 10:22 p.m.

Response to post #7: The answer in this case is for criminal authorities to take it up. There is lots there. Best, Don Bauder

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