Truthseeker is only seeking the truth! Everyone should want to know the truth. I have posted my questions and my response to Krause. Wouldn't you want the Krabman to answer these simple questions and find out if you are being taken for a ride? ragingbull.com I have forwarded all my findings to stockdetective. Maybe they can help find the truth. Go to sarahalltex.com and click on research reports. They are gone. Krause is already trying to cover up his tracks. Lucky for Truthseeker he has made copies and SARA HALLITEX CORP can delete whatever they want because I have the documentation that tells the TRUTH. My favorite report was the one on SARA HALLITEX CORP web site that was from an authority.
taxin.com
sarahallitex.com
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SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16094 March 22, 1999
SECURITIES AND EXCHANGE COMMISSION v. EDWARD B. TAXIN and
THE TAXIN NETWORK, INC., 98 Civ. 7661 (KMW) (S.D.N.Y.)
he Commission announced that a final consent judgment
has been entered in the Commission's action against Edward
B. Taxin and the Taxin Network. On March 11, 1999, Judge
Kimba M. Wood permanently enjoined Taxin and his company
from further violations of Section 17(b) of the Securities
Act of 1933, and ordered them to pay $30,000 in penalties.
The Commission's action, commenced on October 27, 1998,
was part of a large-scale effort by the Commission to
address unlawful touting of securities over the Internet.
The Commission alleged that Taxin received compensation for
touting certain microcap stocks on a radio program, the
Financial Hour, and in an Internet newsletter, the
Investor's Chronicle, without properly disclosing the
receipt of such compensation, in violation of Section 17(b)
of the Securities Act. Taxin and the Taxin Network
consented to the entry of the final judgment without
admitting or denying the allegations in the Complaint.
For further information, see Litigation Release No.
15955.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
LITIGATION RELEASE NO. 15955 / October 27, 1998
SECURITIES AND EXCHANGE COMMISSION v. EDWARD B. TAXIN and
THE TAXIN NETWORK, 98 Civ. 7661 ( KMW) (S.D.N.Y.)
The Commission filed suit in federal court in New York
yesterday against the host of a radio infomercial show, Ed
Taxin. Taxin also publishes an investment newsletter on his
website, Taxin.com. Taxin's show, "The Financial Hour,"
airs on six stations across the country, including New York,
and is broadcast from Taxin's Shrewsbury, New Jersey
residence. The Commission charged Taxin and the Taxin
Network with promoting stocks on the Financial Hour and his
newsletter, Investors Chronicle, without disclosing that he
is compensated for the touts, as follows. The Taxin Network
(owned by Taxin's wife, Joanne Pagano) has agreements with
numerous small-cap companies, including Envoy Communications
Group, Inc., PTC Group, Inc., Sungold Gaming International
Inc., Telepad Corp., VentureTech, Inc., and Wolf Industries,
Inc. These companies or their agents have paid the Taxin
Network at least $200,000 in cash or stock for promotional
services, including exposure on the Financial Hour and in
the Investors Chronicle. On the Financial Hour, Taxin
introduces a series of guests, including promoters from
investor-relations firms and officers of the companies.
Taxin joins with his guests in their rosy predictions for
the companies they represent, mixing in Wall Street patter
to convey the impression of objective financial reporting.
Taxin introduces the promoters as Wall Street notables and
stock-pickers, disguising their relationship with the
companies they represent.
The compensation received by the Taxin Network is not
adequately disclosed on the radio show or in the newsletter.
The only disclosure on the radio show is generally that the
guests (or some of the guests) have paid a fee to appear on
the show or that Taxin owns shares in some of the companies
discussed. Taxin's internet site contained no disclosure at
all of the compensation until Taxin was contacted by the
Commission's staff; the new disclosure is not adequate. The
Commission, seeking a permanent injunction and penalties,
alleges that Taxin and the Taxin Network are in violation of
Section 17(b) of the Securities Act of 1933, which requires
that all such compensation, and its amount, be fully
disclosed.
Sara Hallitex Offers New Concept in Venture Capital Market
Harry Manning of the Investor's Chronicle
Fast growth companies have proliferated in the last five years as the market for initial public offerings boomed. But with downward pressure on investor sediment mounting on all fronts, the market for IPOs has become anything but conductive to launching potentially promising enterprises. Numerous IPOs are being rescheduled or canceled altogether, while many others are getting done only after deals have been sweetened to attract investors. Some market pros think start-ups may be facing the worst IPO market in years. Of course, start-ups that succeed in attracting an initial infusion of equity funding still face formidable hurtles. Start-ups are competing against each other for scarce management and technical talent, and even office space at a time when products must be developed faster, and young companies must mature sooner. The fact is that companies backed by venture capital remain the fastest growing concerns, notes Garrett Krause, president and CEO of Sara Hallitex Corp. (OTC BB: SHAL), a venture capital firm headquartered in Marina Del Rey, Calif. Examples include such names as GT Interactive Software Corp., a New York consumer-software producer, and Netscape, a Mountain View, Calif. Internet-software concern. Netscape's IPO immediately gave that company's stock an outstanding total valuation of $1.1 billion - a figure that has since soared to about $5 billion. To make it easier for small investors to participate in ground-floor opportunities - as well as to enhance the success of new ventures - Krause devised an innovative concept that combines the finest points of an investment bank with those of a venture capital firm. Today this venture banking concept is embodied in Sara Hallitex Corp. and a program called Sara-IPO-Dividend (SIPOD). Here's how it works: Sara Hallitex acquires an equity interest in privately-held concerns that appear to hold substantial promise. Sara nurtures them with financing, management oversight and other services until key executives are in place and it's ready to be spun out under the SIPOD programs as a newly-traded NASDAQ public company. From the investor's perspective, there are several advantages to Sara's approach to taking new companies public. First, it may expedite the time in which a privately-held concern can execute an IPO. This can help the young organization avoid the many pitfalls associated with often misleading "shell deals", which have triggered a crackdown by the Securities and Exchange Commission. Secondly, investors reap benefits not only from Sara's increasing share value, but also from the dividends received from the companies spun-out through SIPOD. (Remember, Sara Hallitex retains a significant stake in these ventures.) Once registered, the dividends received by investors in each company become free-trading, with a monetary value determined by that company's merit and corresponding business opportunity. Shareholders can either continue to support the company by holding their stock, or they may sell , as with any other tradable stock on the market. To raise additional capital for the new enterprise, options will be made available to Sara shareholders at a preferential rate. Sara has one publicly-traded spin-off to its credit - Janus International, Inc. (OTC BB: JNUS). Through several subsidiaries, Janus is involved in hardwood timber harvesting in Brazil and a variety of other unrelated mining projects in South America and the U.S. Additionally, the company has entered into a letter of intent to acquire a seafood fishing enterprise in the Baja Peninsula. Janus is based in Marina Del Rey, and is in the process of assembling a management team. In the interim, Krause will act as president. Janus was spun off in early July at $2 a share and had climbed to about $3 a share about a month later. Sara is a 40% owner. "Janus is proof that there is substance behind the concept and that it works," Krause said. Among the other businesses in which Sara holds a sizable stake are Trillium Communications, a Los Angeles-based entertainment company; ProTerra Inc., an international environmental technology company, and X-SELNET Technology Group, Inc., an Internet player. These are still private, and there are numerous other potential SIPOD acquisitions pending. Krause believes all three have the potential to generate significant returns for investors - especially X-SELNET, a company exploring technology-related projects tied to the World Wide Web; already the Web has been widely dubbed the "industry of the future". One of its current endeavors is Net Labs, a new division to complement X-SELNET's current website development division. Net Labs will become a research laboratory for the incubation and development of electronic commercial projects. Sara Hallitex recently raised $1 million through a private offering and is likely to do a second offering in the near-term. The company is in the process of filing its audited reports, 10ks and 1998 10Qs with the SEC in anticipation of qualifying for listing on NASDAQ.
[Harry Manning is a widely-published, New York-based business and financial writer.]
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