Like many pump and dumps, there inevitably came a day when there will be a falling-out among thieves.
Posted by: Francois+Goelo
In reply to: gotinearly who wrote msg# 11124 Date: 8/18/2001 10:49:56 AM (ET)
Post # of 11137
Here is what's WRONG with the PP....
and I find it borderline Fraudulent... It may in fact be Fraudulent... Here what's wrong with it...
+ The pricing was carefully set, while waiting for the lowest trading price, induced by RELENTLESS selling over a 2.5 months period...
+ It should have been for just enough money, as SEVU needed, based on the stated expectation that SEVU would do well in subsequent Q's and the share price would rise...
+ Had McBride refunded the $277,000 in cash, the first tranche would have been unecessary...
+ 17 million shares is aberrant, as the Insiders couldn't even pay for it at this ridiculously low price and it had to be done on CREDIT!...
+ It only benefits Insiders (against the Law) and wasn't offered to shareholders who had previously "qualified" for other PP's to mitigate their losses and other holders affected by McBride GROSS Mismanagement (Class Action...)...
+ It was done, in my view, so the doubling of the outstanding shares would allow McBride and Cronies to take over majority control of SEVU, possibly leading to subsequent Privatization...
+ An 8K should have come out within 15 days of the event, as doubling the outstanding is VERU MUCH a Material Event... But it would have disclosed who benefitted most from the PP and McBride doesn't want that...
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BTW, McBride continues to Flaunt the SEC Laws, among others and Separate Specific complaints will be filed with SEC shortly, which will include among others:
- Continuing misleading PR's...
- Violations of SEC Rules governing 8K's...
- Repeated Breaches of Rule 17(b) by posting without a Disclaimer, under the name of "Rich McBride" and "Printerman2", while being compensated...
- Failure to disclose original SEVU holdings in a 13D Filing, Form 3 and subsequent Form 4's every time his SEVU holding changed...
- Breach of Rules and Regulations governing the issuance of PP's
He really thinks he's above the Laws, as he's been getting away with it for so long with only 6 years Probation for pleading NO CONTEST to a charge of Felony Fraud...
Just my Honest Opinion, F. Goelo + +
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