It seems to be a fairly common practice among the microcaps, to "purchase" stock without paying for it. If Mann and Sylver had an agreement such as the one described on the SEC enforcement site, then how was Sylver "hoodwinked" ? Maybe the Las Vegas Sun reporter could flesh out that part of the story a bit more. I'm sure the subscribers in Las Vegas would be as enthralled as they were with the first report. zzzzzzzzzz
"The Commission alleged in cease and desist proceedings that stocks were purportedly issued in reliance upon Regulation S to evade registration requirements (In the Matter of Candie's, Inc. 20). In three offerings of securities issued by Candie's, Inc., and one offering of securities issued by Response USA, Inc., large blocks of stock were sold to foreign purchasers at a substantial discount to the prevailing market price, in return for short-term, unsecured promissory notes. The securities were transferred to accounts with a U.S. brokerage firm and then resold to U.S. customers shortly after the expiration of the 40-day restricted period of Regulation S. The foreign purchasers bore little economic risk, since the proceeds of the U.S. sales could be used to pay off the promissory notes "
. The issuers, the law firm that arranged the sales, and Salvatore Mazzeo, the president and owner of the U.S. brokerage firm, consented to the entry of the cease and desist order. In addition, Mazzeo was suspended from association with regulated entities for a period of five months. |
