September 2, 1998
>
> Securities and Exchange Commission
> Washington, D.C. 20549
>
> RE: United States Of America vs. WellRich & Company
>
> Attention: xxxxxxxxx xxxxxxxx
> Division of Enforcement
>
> RE: WellRich & Company
>
> Dear xxxxxxxx:
>
> As always it was indeed a great pleasure speaking with you today.
> Please find the
> requested information, I hope this will help you with your action.
>
>
> 1.xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
>
> 2.xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> 3. WellRich is not a licensed broker/dealer, but may be functioning
> as such in violation
> of Section 15(a)(1) of the Securities Exchange Act of 1934 (the
> "Exchange Act"). See
> Polannin, John, Jr., "Finder's Exception From Federal Broker-Dealer
> Registration,"
> CATHOLIC UNIVERSITY LAW REVIEW, Vol. 40, summer 1991, Number 4.
>
> 4.
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> 5. WellRich has not or does not have the ability to indemnify any
> company, In the event
> that the company is sued as a result of Wellrichs's actions.
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx WellRich
> does not
> have adequate financial resources to compensate any company in the
> event of a
> judgment.
>
> 6.
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> 7. WellRich receives compensation predicated upon a percentage of
> the sales price of
> the stock that they SOLICIT to people over the phone.xx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. This establishes that
> WellRich is
> functioning as a broker/dealer. See SIDNEY MARKS, SEC No-Action
> Letter, 1977
> No-Act LEXIS 2057 (July 7, 1977); JOHN DIMENO, SEC No-Action
> Letter, 1978
> No-Action. LEXIS 2188 (Oct. 11, 1978); and RICHARD S. APPEL, SEC
> No-Action Letter, 1983 No-Act. LEXIS 2035 (Jan. 13, 1983).
>
> 8. All of the issues raised by this letter is enough to indite and
> convict WellRich of all
> charges. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx.
>
> Yours Truly,
>
> xxxxxxxxxx xxxxxxxx ESQ.
> Attorney and Counselor At Law
> xxxxxx xxxx xxxxxxx
> Washington, D.C. xxxxx
>
> cc: State of California Securites And Exchange Commission
> State of Califirnia Office Of The Attorney General, Telemarketing
> Division.
>
> EFS:rab
|
