Oops!
<<Another individual believed by the Company to be a shareholder is alleged by the staff of the Commission to have received compensation from both the Company and Mr. O'Brien for writing and disseminating favorable reports concerning the Company through investor "chat rooms" and an electronic newsletter circulated on the Internet. This Individual is alleged to have received a check for $600 from Mr. O'Brien. The Company has been informed that the purpose of such payment was to enable the individual to purchase a scanning device to enable him to upload photographs of Company facilities onto the Internet, but the Company has not sought independently to verify such information.
The Company is also alleged to have compensated such individual by permitting him to purchase a Partnership Interest for $30,000, representing a forty percent discount to the offering price of $50,000 per Partnership Interest. The Company received a check for $30,000 in respect of a Partnership Interest on February 28, 1997. The individual executed a note dated February 28, 1997 for $20,000 payable to the Company during August, 1997.
Between September, 1996 and February, 1997, such individual visited the Company's facilities in Charleston at least three times. The Company paid for the individual's hotel bills and meals during these visits.
Another individual who is a record owner of the Company's stock was permitted to purchase a Partnership Interest for $40,000. The discount was granted to such shareholder as a finder's fee for identifying individuals to the Company who subsequently purchased Partnership Interests.
Availability of Information; Market for Its Stock
Although the Company has filed periodic reports with the Commission under the Exchange Act since November, 1993, it has never registered its securities pursuant to the Exchange Act. Although it presently intends to continue to file such reports, it is under no legal obligation to do so and could legally discontinue filing such reports at any time. Because the Company has not registered its securities under the Exchange Act, neither it, nor its officers, directors and 5% shareholders have filed other reports otherwise required thereunder, including reports required pursuant to Sections 13 and 16 of the Exchange Act. The Company, and, to the best of its knowledge, such officers, directors and shareholders, have no present intention of filing such reports.>> |
