H.Thomas Fehn, Esq.-The untold story of SEC injunctive action against him.
Fehn, Waldron's securities lawyer was permanently enjoined from future securities law violations in Decmeber 1996. Because the Nevada district court concluded that there was a reasonable likelihood of future violations on Fehn's part,it entered an order permanently enjoining Fehn from aiding and abetting violations of the securities laws. The question is: What is he doing right now with Waldron? {SEC vs. H. Thomas Fehn, decided December 9, 1996}.
CTI Technical, a Nevada Company that went public via a $200,000 blind pool IPO, violated several securities that tainted the offering. A key violation was failing to disclose legal issues including the fact that the FDA banned sales of a diet product known as Accupatch (the main source of CTI's revenues at the time of the IPO) and impounded CTI's inventory of the existing inventory. CTI's registration documents failed to disclose the FDA actions. As well, the IPO document failed to disclose Wheeler's role as a promoter and his control of nominal directors. As well, Stoneridge Securities, the underwriter of CTI attempted to defraud investors by manipulating the price of securities in the after-market trading. (Sound familiar: Lack of material disclosure says of 23% of IBUY's revenues being from the underwriter (Waldron) and stock manipulation?).
Fehn later testified that he later told Wheeler it was his professional opinion that such disclosures were unnecessary under the regulations and furthermore would impair Wheeler's ability to assert his Fifth Amendment privilege against self-incrimination with respect to those earlier violations. As well Fehn reviewed and filed several 10Q documents prepared by a non-lawyer employee of CTI, which failed to disclose Wheeler's role as a promoter and Wheeler's earlier securities violations. According to the SEC, Fehn knew there was material information about CTI that Wheeler did not wish to disclose in the Form 10Q's reports since Wheeler informed Fehn in no uncertain terms of his refusal to disclose liability for past securities violations.
Furthermore, the court stated that Fehn's lack of remorse is apparent in his continued insistence on the validity of his advice to Wheeler with respect to the Fifth Amendment privilege. So there you have it- the legal advice behind all of Waldorn's aggressive lawsuits against anybody whoever said anything about IBUY or Waldron, forget about whether or not it was true. |
