promoters so that heand his purported buying group would ... · I. INTRODUCTION 1. Beginningin ......

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF FLORIDA

CASE NO.

SECURITIES AND EXCHANGE COMMISSION,

Plaintiff,v.

PATRICK G. ROONEY, JOHN R. ROONEY, andPOSITRON CORPORATION

Defendants.

COMPLAINT

Plaintiff Securities and Exchange Commission alleges as follows:

I. INTRODUCTION

1. Beginning in August 2012, Defendants Patrick G. Rooney, John R. Rooney, and

Positron Corporation engaged in a fraudulent market manipulation scheme involving the stock of

Positron Corporation. As part of the scheme, JohnRooney and Patrick Rooney, Positron's CEO,

worked with two purported corrupt stock promoters. The Defendants paid one of the corrupt

promoters so that he and his purported buying group would purchase shares of Positron stock in

the open market. Unbeknownst to the Defendants, the corrupt promoters were both witnesses

cooperating with the FBI.

2. The Defendants engaged in this scheme in an effort to artificially manipulate the

market for Positron stock by: (1) falsely generating the appearance of market interest in the

stock; (2) inducing public purchases of the stock; and (3) artificially increasing the stock's

trading price and volume.

Case 9:14-cv-81224-KAM Document 1 Entered on FLSD Docket 09/30/2014 of 10

Case 9:14-cv-81224-KAM Document 1 Entered on FLSD Docket 09/30/2014 of 10

.IS 44 (Rev. 12/12) CIVIL COVER SHEET

The JS 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except asprovided by local rules of court This form, approved by the Judicial Conference of the UnitedStates in September 1974, is required for the use of the Clerk of Court for thepurpose of initiating the civil docket sheet (SEEINSTRUCTIONS ONNEXTPAGE OFTHIS FORMJ

I. (a) PLAINTIFFSSECURITIES AND EXCHANGE COMMISSION

(b) County of Residence of First Listed Plaintiff

DEFENDANTSPATRICK G. ROONEY, JOHN R. ROONEY AND

POSITRON CORPORATION, Defendants

County of Residence of First Listed Defendant DUPAGE

(EXCEPT IN U.S. PLAINTIFFCASES)

(c) Attorneys (Firm Name. Address, andTelephone Number)Christine Nestor, Esq., (305) 982-6367Securities and Exchange Commission801 Brickell Avenue, Suite 1800, Miami, FL 33131

(IN U.S. PLAINTIFF CASES ONLY) -

NOTE: IN LAND CONDEMNATION CASES. USE THE LOCATION OFTHE TRACT OF LAND INVOLVED.

Attorneys (IfKnown)

II. BASIS OF JURISDICTION (Placean "A'" inOne Box Only)

3S 1 U.S.Govemmcnl D 3 FederalQuestionPlaintiff (U.S. Government Not a Party)

D 2 U.S. Govcnimeiu D 4 DiversityDefendant (Indicate Citizenship ofParties in Item III)

III. CITIZENSHIP OF PRINCIPAL PARTI ES (Placean -X-inOne BoxforPhunntl(For DiversityCases Only) and OneBoxfor Defendant)

PTF DEF PTF DEF

Citizen of This State • 1 0 1 Incorporated or Principal Place DA DAof Business In This State

Citizenof AnotherState D 2 0 2 IncorporatedandPrincipalPlace 0 5 0 5of Business In Another State

Citizen or Subject ofa O 3 O 3 Foreign Nation 0 6 0 6Forcimi Countrv

IV. NATURE OF SUIT (Placean "X" inOneBoxOnlv)1 CONTRACT TORTS FORFEITURE/PENALTY BANKRUPTCY OTHER STATUTES

O 110 Insurance PERSONAL INJURY PERSONAL INJURY O 625 Drug Related Seizure D 422 Appeal 28 USC 158 D 375 False Claims Act

O 120 Marine O 310 Airplane O 365 PersonalInjury - of Property21 USC881 O 423 Withdrawal "1 40(1 State ReapportionmentO 130 Miller Act O 315 Airplane Product Product Liability O 690 Other 28 USC 157 O 410 Antitrust

0 140 Negotiable Instrument LiabilityO 320 Assault. Libel &

Slandei

O 367 Health Care/

Pharmaceutical

Personal Injury

"i 430 Banks and Banking0 150Recoveryof Overpayment PROPERTY RIGHTS 450 Commerce

& Enforcement of Judgment O 820 Copyrights 460 Deportation0 151 Medicare Act O 330 Federal Employers' Product Liability • 830 Patent • 470 Racketeer Influenced and

O 152 Recovery of Defaulted Liability O 368 Asbestos Personal o 840 Trademark Corrupt OrganizationsStudent Loans O 340 Marine

O 345 Marine Product

Liability

Injury ProductLiability

PERSONAL PROPERTY

-i 480 Consumer Credit

(Excludes Veterans) LABOR SOCIAL six vm i\ 490 Cable/Sal TV

0 153Recovery of Overpayment O 710 Fair Labor Standards o 861 H1A (139511) 850 Securities/Commodities/of Veteran's Benefits O 350 Motor Vehicle O 370 Other Fraud Act 0 862 Black Lung (923) Exchange

O 160 Stockholders' Suits O 355 Motor Vehicle O 371 Truth in Lending O 720 Labor/Management 0 863 DIWC/DIWW (405(g)) O 890 OtherStatutoryActions0 190 Other Contract Product Liability O 380 Other Personal Relations • 864 SSID Title XVI o 891 Agricultural Acts0 195 Contract Product Liability O 360 Other Personal PropertyDamage O 740 Railway Labor Act ."I 865 RSI (405(u)) 0 893 Environmental Matters

0 196 Franchise lii]iuy O 385 Property Damage O 751 Family and Medical O 895 Freedom of Information

O 362 Personal Injury- Product Liability Leave Act Act

Medical Malpractice O 790 Other Labor LitigationO 791 Employee Retirement

Income Security Act

o

0

896 Arbitration

| REAL PROPERTY CIVIL RIGHTS PRISONER PETITIONS FEDERAL TAX SUITS 899 Administrative Procedure

O 210 Land Condemnation O 440 Other Civil Rights Habeas Corpus: O 870 Taxes (U.S. Plaintiff Act/Review or Appeal of0 220 Foreclosure 0 44 1Voting O 463 Alien Detainee or Defendant) Agency Decision0 230 RentLease& Ejectment O 442 Employment O 510 Motions to Vacate "I 871 IRS—Third Party -1 950 Constitutionality of

0 240 Torts to Land O 443 Housing/ Sentence 26 USC 7609 State Statutes

O 245 Tort Product Liability Accommodations

O 445 Amcr w/Disabditics -

Employment

O 530 General

O 535 Death PenaltyOther:

O 290 All Other Real Property IMMIGRATION

O 462 Naturalization ApplicationO 446 Amcr. w/Disabilitics - O 540 Mandamus & Other O 465 Other Immiuration

Other O 550 Civil Rights Actions

O 448 Education O 555 Prison Condition

O 560 Civil Detainee -

Conditions of

Confinement

V. ORIGIN (Place an "X" inOne Box Only)OriginalProceeding

O 2 Removed fromState Court

D 3 Remanded from O 4 Reinstated or O 5 Transferred from O 6 MultidistrictAppellate Court Reopened Another District Litigation

(specify)

VI. CAUSE OF ACTION

Cite the US Civil Statute under which YOU are tiling (Donotcitejurisdictional statutes unlessdiversity).15 U.S.C. § 78j(b), and 17 C.F.R. § 240.l0b-5(a) and (c).

VII. REQUESTED INCOMPLAINT:

Brief description of causeViolations of the federal securities laws.

• CHECK IF THIS IS A CLASS ACTION

UNDER RULE 23. F.R.Cv.P.

VIII. RELATED CASE(S)IF ANY

(See instructions):JUDGE

DEMAND S

DATE

?h*/li!OF ATTORNEY OF RECORD

FOR OFFICE USE ONLY

RECEIPT l AMOUNT APPLYING IFP JUDGE

CHECK YES only if demanded in complaint

JURY DEMAND: D Yes 5$ No

DOCKET NUMBER

MAG JUDGE

Case 9:14-cv-81224-KAM Document 1-1 Entered on FLSD Docket 09/30/2014 Page 1 of 2

AO 440 (Rev. 06/12) Summons in a Civil Action

United States District Courtfor the

Southern District of Florida


Plaintiff(s)

PATRICK G. ROONEY, JOHN R. ROONEY,and POSITRON CORPORATION,

Defendant(s)

SUMMONS IN A CIVIL ACTION

To: (Defendant's name andaddress) Patrick G. Rooney3801 Washington StreetOak Brook, IL 60523

Civil Action No.

A lawsuit has been filed against you.

Within 21 days after service of this summons on you (not counting the day you received it) — or 60 days ifyouare the United States or a United States agency, or an officer or employee of the United States described in Fed. R. Civ.P. 12 (a)(2) or (3) — you must serve on the plaintiff an answer to the attached complaint or a motion under Rule 12 ofthe Federal Rules ofCivil Procedure. The answer or motion must be served on the plaintiff or plaintiffs attorney,whose name and address are: Christine Nestor, Esq.

Securities and Exchange Commission801 Brickell Avenue, Suite 1800Miami, Florida 33131Telephone: (305) 982-6367

Ifyou fail to respond, judgment by default will be entered against you for the relief demanded in the complaint.You also must file your answer or motion with the court.

CLERK OF COURT

Date:

SignatureofClerkor Deputy Clerk




Southern District of Florida


Plaintifffs)


Defendants)


To: (Defendant's name andaddress) John R. Rooney819 Promenade Way Apt. 104Jupiter, FL 33458

Civil Action No.


Within 21 days after service of thissummons onyou(not counting thedayyoureceived it)— or 60 days if youarethe United States or a United States agency, or an officer or employee of the United States described in Fed.R. Civ.P. 12 (a)(2) or(3)—youmust serve ontheplaintiffananswer to the attached complaint ora motion under Rule 12 ofthe Federal Rules of Civil Procedure. The answer or motion must be served on the plaintiffor plaintiffs attorney,whose name and address are: Christine Nestor, Esq.


If you fail to respond, judgment bydefault willbe entered against youforthe reliefdemanded in the complaint.You also must file your answer or motion with the court.

CLERK OF COURT

Date:Signature ofClerk or Deputy Clerk




Southern District ofFlorida


Plaintiffs)


Defendants)


To: (Defendant's name andaddress) Positron Corporator!c/o VCorp Services, LLC10101 Fondren Road, Suite 515Houston, TX 77096

Civil Action No.


Within 21 days after service of thissummons onyou(not counting thedayyoureceived it)— or 60days if youarethe United States or a United States agency, or an officer or employee of the United States described in Fed. R. Civ.P. 12 (a)(2) or(3) —you must serve onthe plaintiffananswer to the attached complaint ora motion under Rule 12 ofthe Federal Rules ofCivil Procedure. The answer or motion must be served on the plaintiff or plaintiffs attorney,whose name and address are: Christine Nestor, Esq.


If youfail to respond, judgment bydefault will beentered against youforthe reliefdemanded inthecomplaint.You also must file your answer or motion with the court.

CLERK OF COURT

Date:Signature ofClerk or Deputy Clerk


promoters so that heand his purported buying group would ... · I. INTRODUCTION 1. Beginningin ......

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