Geoffrey Eiten tells Judge he has to rely on food stamps but
Geoffrey Eiten shared a link. facebook.com
August 31, 2013
Thank you everyone for the Birthday Greetings! Just hanging out with the family this Labor Day weekend since the weather stinks. Hung out at a beautiful beach call Blue Shutters Beach in Charlestown <https://www.siliconinvestor.com/nfvda/boards/read_msg.aspx?message_id=97530664#> , Rhode Island yesterday, just with my beautiful wife Hildy (no kids, since they were all in school) and later went to www.nordiclodge.com which serves an all you can eat seafood buffet which includes lobsters, Alaskan king crab and every kind of seafood you can imagine including a full array of unbelievable desserts. Everyone should go to this place once in their lives, especially if you are a seafood lover. We then walked off our food in Newport, RI to end a very nice day. HOPE EVERYONE IS WELL AND IS HAVING A GREAT LABOR DAY WEEKEND.
GE
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"As Mr. Eiten sees it, authorities in Massachusetts could not find grounds to charge him for LocatePlus, so they handed his file to the SEC. The regulator then set out to "put me out of business," which it has accomplished, he says. He now finds himself financially ruined at 63, "all on false accusations." He claims he has to rely on food stamps and social security to support his wife and seven children, and fears he will lose his house."
SEC target Eiten seeks $1 fine, says he is poor
2014-02-18 13:21 ET - Street Wire
Also Street Wire (U-*SEC) U.S. Securities and Exchange Commission
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Also Street Wire (U-NXWI) Nexaira Wireless Inc
by Mike Caswell
Geoffrey Eiten, the Boston stock tout awaiting his sanction for issuing false and misleading projections, has asked that the judge only impose a $1 fine on him. (All figures are in U.S. dollars.) Mr. Eiten, who once held himself out as "America's Leading Micro-Cap Stock Picker," says he is poor and is struggling to support his wife and seven children. He also says he has suffered the complete loss of his business.
Mr. Eiten made the request as part of a civil case he faces from the U.S. Securities and Exchange Commission. The regulator claims that he misled investors in a series of 2010 tout sheets. Among other things, he falsely claimed that a Vancouver company had developed the fastest router in the world, the SEC said. He also failed to disclose his substantial compensation, according to the SEC.
The only issue remaining in the case is the size of Mr. Eiten's fine. He previously reached an out-of-court settlement with the SEC, in which he agreed to an order that bars him from participating in penny stock offerings and from receiving any compensation from promoting penny stocks. He also agreed to pay a fine that the judge still must determine. Mr. Eiten did not admit to any wrongdoing in agreeing to the settlement.
The SEC previously asked that the judge impose at least $677,029 in penalties. The regulator claimed that, during Mr. Eiten's touting, he failed to disclose $605,262 in payments he received from third parties. The regulator sought disgorgement of that amount, plus interest. The SEC also asked that the judge impose an appropriate civil penalty, but did not specify an amount.
Financially ruined at 63
Mr. Eiten, for his part, says he has already suffered plenty. In a self-filed document (titled "Argument by Geoffrey Eiten") dated Feb. 12, 2014, he describes the complete loss of his business at the hands of authorities. In 2007, the Commonwealth of Massachusetts accused him and his company of participating in a $5-million pump-and-dump scheme involving a pink sheets listing called LocatePlus Holdings Corp. Although the accusations against Mr. Eiten did not result in any charges, the publicity surrounding the event "destroyed my reputation and business to which this day I still haven't been able to recover from," Mr. Eiten claims.
(LocatePlus was a Massachusetts company that sold access to public records databases for investigative searches. In 2010, the company's chief executive officer, Jon Latorella, was indicted for securities fraud for inflating the company's revenue. He pleaded guilty and received five years in jail. Also charged was the company's chief financial officer, James Fields. He was convicted after a three-week trial and received five years. Although there were no charges against Mr. Eiten, LocatePlus was one of his clients.)
As Mr. Eiten sees it, authorities in Massachusetts could not find grounds to charge him for LocatePlus, so they handed his file to the SEC. The regulator then set out to "put me out of business," which it has accomplished, he says. He now finds himself financially ruined at 63, "all on false accusations." He claims he has to rely on food stamps and social security to support his wife and seven children, and fears he will lose his house.
Moreover, Mr. Eiten claims that he did nothing wrong in the present case. He says that he based his tout sheets on information he believed to be correct. He also had a disclaimer that specifically stated the information in his tout sheet was not verified or guaranteed to be accurate. Mr. Eiten further says he would have fought the case, but had no money to pay for a lawyer.
As he sees it, he has already paid "10x over" for what he is accused of doing. He asks that the judge show leniency, and impose a $1 fine.
The SEC's allegations against Mr. Eiten are contained in a civil complaint it filed on Dec. 12, 2011, in the District of Massachusetts. The regulator claimed that he created a series of false and misleading tout sheets under the name OTC Special Situations Report. He sent out the sheets in mass mailings or spam e-mails, the complaint stated.
One of the stocks he touted was Nexaira Wireless Corp., a Vancouver company that Mr. Eiten said had developed the fastest router in the world. He claimed the company was receiving revenue from Sprint and Comcast. None of that was true, according to the SEC. He also touted a Saskatchewan listing called Clean Power Concepts Inc., telling readers the company had positive cash flow and was making money. That was also incorrect, according to the SEC.
The complaint sought an order prohibiting Mr. Eiten from promoting penny stocks, disgorgement of ill-gotten gains and an appropriate civil penalty.
While the case marked the first time the SEC filed charges against Mr. Eiten, the regulator mentioned his OTC Special Situations Report in at least one prior suit. In its March, 2009, case against Vancouver's Joseph Fernando and others, the SEC claimed that Mr. Fernando paid for coverage in the OTC Special Situations Report for Xpention Genetics Inc., a company that was purportedly developing a cancer vaccine. The SEC said the report contained several false or misleading claims about the company. The regulator ultimately obtained $2.87-million default judgment against Mr. Fernando. |
