Heres letter I will be sending:
Dear Sir or Madam:
I am a current shareholder in Interactive Multimedia Publishers, Inc. (DROM). On December 4, 1996, the SEC, without prior notice, suspended trading in DROM for a ten day period pursuant to 15 U.S.C. 771(k). Trading was suspended due to alleged questions raised regarding DROM's corporate history and its tradability. The SEC deemed the suspension necessary to protect us, the investing public. To the contrary, this suspension has done nothing but created irreparable harm and significant financial losses. Thank you for your "protection."
The SEC has come forward with no information whatsoever regarding the allegations. It has told DROM nothing but that a private investigation is occurring; that no information will be released to anyone, and; that nothing should imply that DROM is involved in any wrong doing. Once again, thank you for the "protection."
The U.S. Supreme Court, in SEC v. Sloan, 98 S.Ct. 1702 (1978) stated that the power to summarily suspend trading was "an awesome power with a potentially devastating impact on the issuer." Id., at 1709. In the Court's view, these unfortunate consequences could be avoided if the SEC made known, at the end of the ten day period, its views regarding the issuer. In DROM's case, the SEC has failed miserably at this task.
As a shareholder whose financial interest has been severely damaged by your "protection," and as a member of the public that you serve, I am demanding that the SEC disclose to the investing public precise and detailed information regarding its investigation of issues surrounding DROM. Because of your "protective" action, my _______ shares, which were valued at ________ prior to the suspension, are now worthless.
This letter is being copied to the Congressmen listed below. Should the SEC not come forth with detailed and specific information by January 31, 1997, I will demand of the Congressmen below that a Congressional investigation be initiated into the SEC's treatment (or lack thereof) of this matter, and will request that Congress revoke or severely limit the SEC's ability to unilaterally destroy companies and the investing public without reason or justification. I will additionally consider filing suit in a court of competent jurisdiction seeking damages, including attorney fees, based upon your apparently baseless and negligent action.
Sincerely,
Gary P. Goodin
cc: The Honorable Senator Richard Lugar
The Honorable Senator Daniel Coats
The Honorable Representative Richard Burton |
