from arkansasbusiness.com:
Securities Commissioner Orders Golf Entertainment to Stop Selling Stock
By Gwen Moritz
Daily News - 9/10/02 5:27:38 PM
Arkansas Securities Commissioner Michael B. Johnson on Tuesday ordered Golf Entertainment Inc. of Springdale, Genesis Trust of Bentonville and a long list of their officers to stop selling stock in Arkansas.
The cease-and-desist order followed the Securities Department’s Aug. 29 announcement that it had launched a full investigation of Golf Entertainment, which operates Spanish-language television station KVAQ-LP, Channels 20/71, and Genesis Trust, which “purports to be a nonprofit association” and controlled much of Golf’s stock.
Both entities and the questionable relationship between the two were the subjects of an in-depth report in the Aug. 19 issues of Arkansas Business and its sister publication, Northwest Arkansas Business Journal.
Johnson’s order said the Securities Department investment had found that the 15 million shares of Golf stock that were issued to Genesis under the terms of a settlement agreement on May 6 were never properly registered with the department, nor was any exemption filed.
Beginning on May 14, according to the department’s findings, 6.375 million shares were received into Genesis’ securities account at a national brokerage firm. On May 22, Genesis began selling shares to the public and transferring shares to affiliates of Golf and Genesis.
“Among others, Melvin L. Robinson and Charles M. Rusk received some of the shares out of Genesis’ securities account,” the order said, referring to trustees of Genesis. Rusk has since resigned his position.
Also named in the order were five Golf officials: Tim Brooker, a director of who resigned as CEO on Aug. 22; John Dodge, senior vice president and general counsel; Jim Bolt, chief operating officer and vice president; Ronald Farrell of Georgia, a former CEO and current director; and Michael F. Daniels of Nevada, chairman and CEO.
The stock traded over the counter under the symbol GECC.OB. It closed at 0.67 cent on Tuesday, down from 0.8 cent on Monday
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