"I felt highly misled by OTCFN's representations on the number of SEXI shares. If the company won't tell you who the transfer agent is, consider that a red flag."
Message 395225
To: Linda Brandt (38 )
From: Chuck Bragg Monday, Oct 28 1996 6:40PM ET
Reply # of 77
WARNING TO ALL POTENTIAL BUYERS OF THIS STOCK
OTC Financial Network (aka. OTC Communications) is a promoter of this stock. My experience with OTCFN has resulted in numerous material misstatements by this PR firm in regards to a stock named Systems of Excellence, which was represented by OTCFN. During that time, Geoff Eiten, partner at OTCFN, mistated the number of common shares outstanding to me on 3 occasions. It was only after I did further research that he finally admitted the additional shares. He denied reports that the NASDAQ has denied Systems of Excellence (SEXI) a listing, when in fact they had been denied. He told shareholders that SEXI had a $130 million deal with the State of Florida which never came to fruition. And probably on his worst offense, he told me on Friday, October 4th that all SEC problems had been solved and that the company had indeed signed the deal with the State of Florida. This, as anyone following the SEXI saga would know, was a blatant lie. On Monday, October 7th, the SEC halted SEXI trading. Finally, Mr. Eiten had been telling shareholders all along that all the shares being issued were for restricted stock. However, a call placed to the transfer agent this week confirmed that most of the company's shares are not restricted. OTCFN has a dismal record of disseminating accurate and truthful information in my opinion.
If you are thinking about investing in a company in which OTCFN represents, I would very carefully examine the company, and certainly not rely on anything this PR firm has to say. If you're a current shareholder, I have no bone to pick with the company. But if you're relying purely on information given out by OTCFN, you might want to start asking some very tough questions. Incidentally, you can call your company's transfer agent and find out the current number of shares. This information is considered public. I felt highly misled by OTCFN's representations on the number of SEXI shares. If the company won't tell you who the transfer agent is, consider that a red flag.
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SECURITIES AND EXCHANGE COMMISSION Washington, D.C.
SECURITIES EXCHANGE ACT OF 1934RELEASE NO. 37791 / October 7, 1996
The Securities and Exchange Commission today ordered the
temporary suspension, pursuant to Section 12(k) of the Securities
Exchange Act of 1934 ("Exchange Act"), of trading in the
securities of Systems of Excellence, Inc. ("SOE"), beginning at
9:00 a.m. EDT on October 7, 1996 and concluding at 11:59 p.m. EDT
on October 21, 1996. SOE is located in Coral Gables, Florida and
Mclean, Virginia. The Commission ordered this trading suspension because of
questions raised as to the adequacy and accuracy of publicly-
disseminated information concerning, among other things: (1)
SOE's reported financial condition; (2) the existence and value
of services rendered to SOE in exchange for stock issued by SOE;
(3) whether stock was issued by SOE to consultants without
registration; (4) the reasons for changes in SOE's independent
accountants; and (5) SOE's sales of its video teleconferencing
products. The Commission determined that the public interest and
the protection of investors requires a suspension of trading inSOE securities.
The Commission cautions broker-dealers, shareholders, and
prospective purchasers that they should carefully consider the
foregoing information along with all other currently available
information and any information subsequently issued by thecompany.
Further, brokers and dealers should be alert to the fact
that, pursuant to Rule 15c2-11 under the Exchange Act, at the
termination of the trading suspension, no quotation may be
entered unless and until they have strictly complied with all of
the provisions of the rule. If any broker or dealer has any
questions as to whether or not he has complied with the rule, he
should not enter any quotation but immediately contact the staff
of the Securities and Exchange Commission in Washington, D.C. If
any broker or dealer is uncertain as to what is required by Rule
15c2-11, he should refrain from entering quotations relating to
SOE's securities until such time as he has familiarized himself
with the rule and is certain that all of its provisions have been
met. If any broker or dealer enters any quotation which is in
violation of the rule, the Commission will consider the need for
prompt enforcement action. |
