SEC Freezes Assets of Company, Owner

The Securities and Exchange Commission on Tuesday said it got a temporary order freezing the assets of Alfred Louis “Bobby” Vassallo Jr. of La Jolla and his company, Presto Telecommunications Inc..

In a complaint filed in federal court in San Diego, the SEC charged that Vassallo and Presto misled more than 800 investors in 42 states into investing more than $11 million in San Diego-based Presto by claiming that the company is “positioned to become Latin America’s premier integrated communications provider.”

Regulators alleged that Vassallo and Presto had made a number of false claims, including that the company had established significant business relationships with AT&T;, Sprint, MCI and Qwest and that all four firms have expressed interest in either acquiring the company or investing in it; and that the U.S. Commerce Department was lobbying Mexican telecommunications regulators on Presto’s behalf.

The SEC also alleged that Vassallo, 53, had misappropriated at least $1.2 million in investor and company funds for personal expenses, including jewelry purchases, a down payment on an “expensive” home, luxury automobiles and school tuition for his children.

Attorneys representing Vassallo and Presto could not be reached for comment Tuesday.

Securities regulators said they will seek a permanent injunction against Vassallo and Presto, disgorgement and civil penalties. A hearing over whether a permanent receiver should be appointed for the company is scheduled for Feb. 9.

-- Kathy M. Kristof