To all,
Following is the SEC response to my Senator, Ms Barbara Milkulski, concerning the Green Oasis suspension. I thought everyone would be interested, so here it is.
From: US Securities and Exchange Commission, Division of Enforcement.
Dated: July 3, 1997.
To: Senator Milkulski.
Re: Mr. Del Ray Parker and Green Oasis Environmental, Inc.
"Dear Senator Mikulski:
Thank you for your letter to Kathryn Fulton, the former Director of Legislative Affairs, dated June 4, 1997, concerning the above-referenced matter, which has been forwarded to me for response. Your constituent, Mr. Del Ray Parker, is apparently a shareholder of Green Oasis Environmental, Inc. ("Green Oasis"). Mr. Parker questioned the appropriateness of the Commission's order suspending trading in Green Oasis, and wanted to know if the Commission "has exonerated all parties and settled the issues under investigation."
On May 9, 1997, the commission ordered that trading in Green Oasis be suspended for 10 business days. In connection with this order, the Commission stated that questions had been raised about the accuracy and adequacy of information available to the public concerning, among other things, Green Oasis's product development, the viability of contracts Green Oasis announced it had received, and the relationship between Green Oasis and a person who recommended the purchase of Green Oasis stock. The Commission's action was a prompt and appropriate response to the apparent lack of accurate information about Green Oasis. Enclosed please find a copy of the Commission's public release dated May 9, 1997.
I understand that trading in Green Oasis stock did not begin again until June 10, 1997. However, this was not due to the Commission's order, which expired on May 22, 1997. While there may be various reasons why brokers did not enter any quotations for the stock immediately or soon after the Commission's order expired, it may be that brokers were gathering and reviewing information about Green Oasis. One of the Commission's rules designed to prevent fraud and manipulation requires certain brokers to gather and evaluate certain information about issuers before they enter quotations.
With respect to Mr. Parker's question about whether the Commission "has exonerated all parties and settled the issues under investigation," I want to make it clear that the Commission's order did not make any allegations or findings of wrongdoing on any person's or entity's part. The Commission issued the order because of serious concerns about the accuracy of the company's information on which public investors rely. At this point in time, Commission policy generally prohibits comment concerning any particular matter that may be the subject of any possible Commission investigation or any enforcement recommendation which the staff may make to the Commission. In addition to protecting the privacy of individuals and entities whose activities are under investigation, this policy is designed to ensure the integrity of the investigative process in appearance as well as in fact. See generally, Securities and Exchange Commission v. Wheeling Pittsburgh Steel Corp., 482 F. Supp. 555 (W.D. Pa. 1979), vacated and remanded, 648 F.2d 118 (3d Cir. 1981).
Please contact me if I can be of further assistance.
Sincerely, William R. McLucas, Director"
I find the last paragraph to be most interesting -- "I want to make it clear that the Commission's order did not make any allegations or findings of wrongdoing on any person's or entity's part."
I would be interested in hearing if anyone else has received responses from writing your legislators, and if the response is the same or similar. I expect all response will essentially say the same thing.
I have no problem with the SEC initiating an investigation for good reason. I certainly agree that investors need their protection in many cases. What I have a problem with is the secrecy surrounding their actions. I suppose I can understand secrecy during the investigation but I would hope the SEC will make some statement of their findings once the investigation is complete. I personally will wait and, after the investigation is complete, will look for such a statement. If not forthcoming, I will again be writing my legislators.
We all have a duty to keep our Government honest. Is that possible?
Good luck all
Del Parker |
