Steve, SEC Rule 17(b): this applies to SGA and OTCFN as well as many other online newsletters as well. Steve have you ever seen SGA or OTCFN offer FULL DISCLOSURE of their holdings or potential future holdings in SEXI for services rendered to SEXI in their newsletter and website? If they didn't, they too will be investigated by the SEC.
SEC Rule 17(b) (capitalization is mine)
The excerpt below is taken from the Securities Act of 1933, Section 17:
(b) It shall be unlawful for any person, by the use of ANY MEANS or instruments of transportation or communication in interstate commerce or by the use of the mails, to publish, give publicity to, or circulate any notice, circular, advertisement, newspaper, article, letter, investment service, or communication which, though not purporting to offer a security for sale, DESCRIBES SUCH SECURITY FOR A CONSIDERATION RECEIVED OR TO BE RECEIVED, DIRECTLY OR INDIRECTLY FROM AN ISSUER, UNDERWRITER, OR DEALER, WITHOUT FULLY DISCLOSING THE RECEIPT, WHETHER PAST OR PROSPECTIVE, OF SUCH CONSIDERATION AND THE AMOUNT THEREOF.
I think this clearly states that both SGA and OTCFN are and were legally obligated to reveal their holdings or potential holdings, direct or indirect, in SEXI to readers of their newsletter and website. As per the above, the Internet world is covered and regulated by the above SEC rule. So are investment conferences, email messages, telephone calls, faxes, snail mail and advertisements.
K.C. |
