The best defense against a lawsuit doesn't always have to be the truth if you are a bureaucrat in a powerful federal agency. The SEC made snide offhand remarks about Green Oasis Environmental.
Green Oasis, a Charleston, South Carolina based company, is
purportedly engaged in the business of developing and selling equipment to process
waste motor oil into more valuable fuels.
The Commission temporarily suspended trading in the securities of Green Oasis because
of questions that have been raised about the accuracy and adequacy of publicly
disseminated information concerning, among other things, Green Oasis' press releases
concerning (1) the development of Green Oasis' products; (2) Green Oasis' business
operations, including the testing of its equipment; (3) relationships between Green Oasis
and a financial analyst who recommended purchase of its shares; and (4) the
commercial viability of the contracts Green Oasis has announced it received to purchase
its equipment.
This was on May 9 of last year, 2 weeks after Tennessee shut down GIFS. Then in subsequent public releases, the SEC referred to GIFS and GRNO together as if they were joined at the hip.
The SEC should have determined quickly that they made a mistake and that GRNO was not a criminal enterprise like GIFS. In fact, they should have known that before they shut GRNO down, but did so to try to cover themselves because of their embarrassment over their GIFS disaster. The SEC didn't even look at GRNO's documentation until that summer. Now they have another public relations disaster from which they can only recover by having GRNO go out of business.
It is difficult for GRNO to do business because of the SEC's position. What public company would want to do business with GRNO even though their engineers and accountants put their blessing on a deal? It would be like you or I thumbing our nose at the IRS, or a detective agency or police department thumbing its nose at the FBI. These things just aren't done. And if you are a private individual and don't have investigative resources such as petroleum engineers working for you, you will think the investment is too dangerous because the SEC with all their resources thinks GRNO's technology is a scam.
Not only has GRNO been defamed as an entity, but it now is being bled dry by lawyers it must hire to deal with the SEC issues.
Charles |
