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Indianapolis, IN -- Indiana Secretary of State Todd Rokita today applauded the sentencing of convicted Indiana Securities Act violators David I. Proctor and Casimir C. Szpunar.

Proctor was sentenced to five years in prison with four years suspended, followed by seven years probation and $646,850 in restitution. Proctor will be required to pay one-half of all after tax income toward restitution during his probation, and his restitution obligation will remain for life.

Szpunar was sentenced to five years in prison with four years suspended, followed by seven years probation and $1,387,550 in restitution. Szpunar will also be required to pay one-half of all after tax income toward restitution during his probation, and his restitution obligation will remain for life.

The criminal convictions of Proctor and Szpunar are the culmination of an investigation initiated by the Secretary of State's Office in 1997. The investigation revealed that Proctor and Szpunar sold $1.4 million in fraudulent promissory notes for Realfinder Inc. and Great Midwest Technology Inc. to investors.

A promissory note is a written promise to pay a sum of money to a specific person at a particular time in the future. This type of note typically involves a loan to a company or person made by an investor in exchange for a fixed amount of periodic income. Legitimate promissory notes are marketed almost exclusively to sophisticated or corporate investors who can thoroughly research the companies issuing the notes and to determine whether the issuers have the capacity to pay the promised interest and principal.

The Secretary of State's Office referred the case to the Marion County Prosecutor's Office, who under Indiana law has the authority to file criminal charges. The offices continued working together to develop the case, which ultimately resulted in the conviction.

"I'm pleased with both the prison sentence and the strong restitution schedule," Rokita said. "This case is another example of the success that can be achieved by the close coordination of the Securities Division of my office and local prosecutors as they share resources without duplicating efforts."

"I also want to congratulate my staff, particularly Chief Investigator Fred Sturdevant, who began this investigation in 1997 and has been diligently working toward this conclusion ever since," Rokita said.

Rokita reminded Hoosiers to check out any investment opportunity before investing. Businesses holding themselves out to be corporations should be registered with Rokita's office, as should both investments and their sellers. Information can be verified at Rokita's website, www.sos.IN.gov, or by phone at 317.232.6576 (for corporations) or 1.800.223.8791 (for securities).

For Immediate Release:	Contact: Cam Savage
June 4, 2004	(317) 233-8655