........A BAZAAR GUMMY TWIST TO THE PAUL BROWN EULOGY
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I realized the entrepreneur in Paul was now maturing. At thirty years old, Paul had merged his small Nucell company with a publicly trading Peripheral Systems, Inc. and began appearing in Fortune (Dec. 19, 1988), Business Week (Aug. 29, 1988), Hazmat World (Dec., 1989), Nuclear News (Jan., 1990) and even The New York Times (June 24, 1989). Paul also had significant conference presentations at that time such as, "Resonant Nuclear Battery May Aid in Mitigating the Greenhouse Effect" (American Nuclear Society, San Francisco, CA, 1989) and "The Beta Voltaic Effect Applied to Radioisotopic Power Generation" (American Nuclear Society, Nashville, TN, June, 1990).
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Reporting Source: Regulator (Form U-6)
Date Reported: 02/14/1996
Initiated By: IDAHO DEPARTMENT OF FINANCE
Date initiated: 02/14/1996
Docket/
Case Number: 1996-7-32
Allegations: COHIG AND OTHER DEFENDANTS SOLD SECURITIES IN IDAHO WHILE
MISREPRESENTING ESSENTIAL INFORMATION ABOUT THE COMPANY WHOSE
STOCK WAS BEING SOLD AND ENGAGED IN PRACTICES WHICH OPERATED
AS A FRAUD OR DECEIT UPON THEIR IDAHO CUSTOMERS.
Current Status: Final
Resolution: Order
Resolution Date: 02/14/1996
Sanctions
Ordered: Disgorgement/Restitution
Resolution
Details: COHIG AGREED TO AN ADMINISTRATIVE ORDER WHICH REQUIRES COHIG TO
PROVIDE RESTITUTION TO SIX IDAHO RESIDENTS FOR PURCHASES OF
PERIPHERAL SYSTEMS, INC. STOCK.
Summary: RCL NORTHWEST AND ITS REPRESENTATIVES, GORDON WESLEY SODORFF,
JERRY RAY LINEHAN AND THEIR SUPERVISOR MICHAEL B. LAVIGNE,
INDUCED IDAHO INVESTORS TO PURCHASE SHARES OF PERIPHERAL
SYSTEMS STOCK BASED ON REPRESENTATIVES THAT PERIPHERAL HAD
DEVELOPED A NUCLEAR POWERED BATTERY THAT WOULD BE HIGHLY
PROFITABLE. THEY FAILED TO DISCLOSE TO INVESTORS THAT NUCELL,
A WHOLLY- OWNED SUBSIDIARY OF PERIPHERAL, WAS THE SUBJECT OF
JUDGMENTS OBTAINED IN A LAWSUIT FILED BY THE STATE OF IDAHO IN
1988 ALLEGING FRAUD IN CONNECTION WITH THE SALE OF THE NUCELL
STOCK. COHIG TOOK OVER RCL'S SPOKANE OFFICE IN 1991 AND FAILED
TO HALT THE FRAUDULENT OFFER OF PERIPHERAL SYSTEM STOCK.
CONTACT: TIM MARTIN - 208/332-8004. |
