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FLORIDA STATE COMPTROLLER ISSUES COMPLAINT AGAINST LARGO BUSINESS

TAMPA, Fla., March 7 /PRNewswire/ -- State Comptroller Robert F. Milligan today issued an administrative complaint for the entry of a cease and desist order against Zuma Engineering Co., Inc. of Largo, two of its officers and four of its sales agents for selling promissory notes in the company which offered varying interest rates from eight to 15 percent on notes with terms of four months to three years. The complaint alleges these promissory notes are securities and should have been registered as required by law.

Zuma was incorporated in Florida on July 18, 1988 and was established to recycle tires and sell the recycled end-product, crumb rubber. In August 1995, Zuma received a permit from the Department of Environmental Protection to operate a waste tire processing facility.

Named in the Complaint are Michael Gruttadauria of Palm Harbor, the company's president; Jeffrey G. Turino of Port Richey, the company's former secretary; unlicensed sales agents Robert Darren Carlson of St. Petersburg; Michael T. Garrett of Brooksville; Charles F. Perks of Punta
Gorda; and Michael F. Mann of Seminole. All have 21 days from receipt to respond to the complaint.


In the complaint, the company, located at 11700 Belcher Road South in Largo, FL, the named officers, and its agents are alleged to have made misrepresentations and omissions of material facts in the sale of the unregistered securities.

The complaint alleges from 1991 through 1995, Zuma, through its unlicensed sales agents, raised more than $2 million in the sale of promissory notes, many to elderly investors. The unlicensed agents for Zuma convinced investors to transfer their funds from investments such as Certificates of Deposit and annuities, to investments in Zuma. In selling these notes, the company and its agents failed to provide investors with full and fair disclosure of all facts regarding the investment and in many instances allegedly misrepresented and omitted material facts to investors.

Anyone who invested with Zuma Engineering Co., Inc. and has additional information should contact Department of Banking and Finance Investigator Beate Cox with the West Central Florida Regional Office at 813-272-2565.
 -0- 3/7/96


/CONTACT: K. Douglas McClannan, Florida Office of Comptroller, 813-272-2565/

CO: Florida Office of Comptroller ST: Florida IN: FIN SU:

0000 -- FLTH014 -- 1350 03/07/96 17:30 EST
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Publication:PR Newswire
Date:Mar 7, 1996
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