StockGate:Turnabout as Universal Express Sues SEC for Harrass
ent ( financialwire.net )
B: StockGate: Turnabout as Universal Express Sues SEC for Harrassment ( financia
wire.net )
Mar 5, 2004 (financialwire.net via COMTEX) -- (FinancialWire) The U.S.
Securities and Exchange Commission is being sued in the U.S. District Court,
Southern District of Florida, for harassment and intimidation by Universal
Express, Inc. (OTCBB: USXP), in part rising out of athe SEC's investigation into
claims that Universal Express has been a victim off naked short selling. As of
this writing, the company has not disclosed in a press release or other filing
that it has filed.
Recently, leading market makers named in various lawsuits and other actions,
including Ameritrade Holding Corp. (NASDAQ:AMTD), Deutsche Bank AG (NYSE: DB),
and ETrade Group, Inc. (NYSE: ET) were given a "reprieve" until April 1
to comply with new short-selling market regulations imposed by the NASD after
the SEC had "sat on" the NASD request to plug material loopholes for
almost 2-1/2 years.
According to a non-affiliated source that provided the document to
FinancialWire, the filing occurred March 3. The lawsuit infers that SEC
subpoenas issued to funding and acquisition targets have spooked and interfered
with the company's ability to raise capital and to complete acquisitions, such
as that of North American Airlines.
It also states that USXP and its executives have been served with what appears
to have been dozens of subpoenas, over many months, asking for virtually every
document in the company's possession. The lawsuit notes that the company had
complied with all of them, despite due dates often as short as two days, but
that the SEC appears bent on "harassing" the company with ever
increasing demands.
The reason given for delaying the implementation of the "loophole" close
was that many NASD members, most of whom have argued in the past that their
trading systems do not allow for "naked" short selling, "need to
make significant technological changes to
their systems to comply with the new requirements." This could easily become
fodder for the many lawsuits that have been filed in this long-standing national
scandal called StockGate.
For some in the industry, the fact that the new date coincides with "April
Fool" was not lost.
The NASD noticed its members that it is "delaying the effective date of
amendments to Rule 3370 (Prompt
Receipt and Delivery of Securities-the "Affirmative Determination" Rule)
approved by the SEC in November 2003,1 until April 1, 2004.
"The amendments expand the scope of the affirmative determination
requirements to include orders received from broker/dealers that are not members
of NASD ("non-member broker/dealers"). The effective date of the amendments
originally was March 5, 2004," said the notice.
The proposed and now delayed rule is on the web at
nasdr.com
The rule itself, while welcomed by small companies and their shareholders in the
U.S., nevertheless raised an outcry because the NASD's request to put it into
effect had set on a shelf at the SEC since 2001.
Meanwhile, CBS Marketwatch, a venture between Marketwatch (NASDAQ: MKTW) and
Viacom's (NYSE: V) CBS unit, has suggested that victims of securities fraud may
be able to file for theft claims on tax returns instead of capital losses.
The scandal has embroiled hundreds of companies and dozens of brokers and
marketmakers, in a web of internaitional intrigue, manipulative short-selling
and cross-border accusations and denials.
Comments on Regulation SHO ended January 5, and may be viewed at
sec.gov .
Some 122 companies, including 13 brokers, such as FleetBoston (NYSE: FBF),
Goldman, Sachs & Co. (NYSE: GS), H. Myerson & Co., Inc. (NASDAQ:MHMY), Olde /
H&R Block (NYSE: HRB), Charles Schwab (NYSE: SCH), Toronto-Dominion's (NYSE:
TD), TD Waterhouse Group and vFinance, Inc. (OTCBB: VFIN). A.G. Edwards at, Inc.
(NYSE: AGE), Ameritrade Holding Corp. (NASDAQ:AMTD), Deutsche Bank AG (NYSE:
DB), and ETrade Group, Inc. (NYSE: ET), have been embroiled for over a year in a
raging controversy
The remaining 109 companies among the 122 named to date have issued press
releases or been named in the media as having been victimized, or as taking
various actions, either alone or in concert with other companies, to oppose
manipulative trading in the form of illegal naked short selling. The actions
have ranged from lawsuits to withdrawals and threatened withdrawals from the
electronic trading system managed by the Depository Trust & Clearing Corp., to
withdrawals from toxic financings, to the issuance of dividends or name changes
designed to squeeze manipulators, to joining associations or networks or to
contacting regulatory authorities to provide documentation of abuses or
otherwise complain.
The complete list of those 108 companies include Advanced Viral Research Corp.
(OTCBB: ADVR), AdZone Research, Inc. (OTCBB: ADZR), Amazon Natural Treasures
(OTC: ANTD), America's Senior Financial Services (OTCBB: AMSE), American
Ammunition, Inc. (OTCBB: AAMI), AngelCiti Entertainment (OTCBB: AGLC), ATSI
Communications, Inc. (OTC: ATSC), Federal Agricultural Mortgage / Farmer Mac
(NYSE: AGM) Allied Capital (NYSE: ALD), American Motorcycle (OTC: AMCYV),
American International Industries (OTCBB: AMIN), Ameri-Dream (OTC: AMDR),
Adirondack Pure Springs Mt. Water Co. (OTCBB: APSW), ATSI Communications, Inc.
(OTC: ATSC) Bluebook International (OTCBB: BBIC), Blue Industries (OTCBB:
BLIIV), Bentley Communications (OTCBB: BTLY), BIFS Technologies Corporation
(OTCBB: BIFT), Biocurex (OTCBB: BOCX). Broadleaf Capital Partners, Inc. (OTCBB:
BDLF), Chattem, Inc. (NASDAQ:CHTT), Critical Home Care (OTCBB: CCLH), Composite
Holdings (OTC: COHIA), CyberDigital, Inc. (OTCBB: CYBD). Diamond International
Group (OTCBB: DMND), Dobson Communications Corp. (NASDAQ:DCEL), Eagle Tech
Communications (OTC: EATC), Edgetech Services (OTCBB: EDGH);
Also, Endovasc Ltd. (OTCBB: EVSC), Enviro-Energy Corporation (OTCBB: ENGY),
Environmental Products & Technologies (OTC: EPTC), Environmental Solutions
Worldwide, Inc. (OTCBB: ESWW), EPIXTAR Corp. (OTCBB: EPXR),
eResearchTechnologies, Inc. (NASDAQ:ERES), Flight Safety Technologies (OTCBB:
FLST), Freddie Mac (NYSE: FRE), FreeStar Technologies (OTCBB: FSRCE), Front
Porch Digital,
Inc. (OTCBB: FPDI), Geotec Thermal Generators, Inc. (OTCBB: GETC), Genesis
Intermedia (OTC: GENI), GeneMax Corp. (OTCBB: GMXX), Global Explorations Inc
(OTC: GXXL), Global Path (OTCBB: GBPI), GloTech Industries, Inc. (OTCBB: GTHI),
Green Dolphin Systems (OTCBB: GLDS), Group Management (OTCBB: GPMT), Hop-On
(OTC: HPON), H-Quotient, Inc., (OTCBB: HQNT), Hyperdynamics Corp. (OTCBB: HYPD),
International Biochem (OTCBB: IBCL), Intergold Corp. (OTCBB: IGCO),
International Broadcasting Corporation (OTCBB: IBCS), InternetStudios, Inc.
(OTCBB: ISTO), ITIS Holdings (OTCBB: ITHH), Investco Corp. (OTCBB: IVCO), Lair
Holdings (OTC: LAIR), Lifeline BioTechnologies Inc. (OTC: LBTT), Life Energy &
Technology (OTCBB: LETH), MBIA (NYSE: MBI);
Also, MegaMania Interactive (OTC: MNIA), MetaSource Group, Inc. (OTCBB: MTSR),
Midastrade.com (OTC: MIDS), Make Your Move (OTCBB: MKMV), Medinah Minerals (OTC:
MDMN), MSM Jewelry Corp. (OTC: MSMC), Nanopierce Technologies, Inc. (OTCBB:
NPCT), Nutra Pharmaceutical (OTCBB: NPHC), Nutek (OTCBB: NUTK), Navigator
Ventures (OTC: NVGV), Orbit E-Commerce, Inc. (OTCBB: OECI), Pitts & Spitts (OTC:
PSPP), Sales OnLine Direct (OTCBB: PAID), Pacel Corp. (OTCBB: PACC), PayStar
Corporation (OTC: PYST), Petrogen Corp. (OTCBB: PTGC), Pinnacle Business
Management (OTC: PCBM), Premier Development & Investment, Inc. (OTCBB: PDVN),
PrimeHoldings.com, Inc. (OTC: PRIM), Phlo Corporation (OTCBB: PHLC), Resourcing
Solutions (OTC: RESG), Reed Holdings (OTC: RDHC), Rocky Mountain Energy Corp.
(OTCBB: RMECE), RTIN Holdings (OTCBB: RTNHE), Saflink Corp. (NASDAQ:SFLK), Safe
Travel Care (OTCBB: SFTVV), Sedona Corp. (OTCBB: SDNA);
Also, Sionix Corp. (OTCBB: SINX), Sonoran Energy (OTCBB: SNRN), Starmax
Technologies (OTC: SMXIF), Storage Suites America (OTC: SSUA), Suncomm
Technologies (OTC: STEH), Sports Resorts International (NASDAQ:SPRI), Technology
Logistics (OTC: TLOS), Swiss Medica, Inc. (OTCBB: SWME), Ten Stix, Inc. (OTCBB:
TNTI), Tidelands Oil (OTCBB: TIDE), Titan Construction (OTC: TTCS), Trezac Corp.
(OTCBB: TRZAV), Universal Express, Inc. (OTCBB: USXP), Valesc Holdings, Inc.
(OTCBB: VLSHV), Vega Atlantic (OTCBB: VGAC), Viragen (AMEX: VRA), Viragen
International (OTCBB: VGNI), Vista Continental Corporation, (OTCBB: VICC), Viva
International (OTCBB: VIVI), Vtex Energy (OTCBB: VXENE) and Wizzard Software
(OTCBB: WIZD), WorldTradeShow.com (OTC: WTSW) and Y3K Secure Enterprise
Software, Inc. (OTCBB: YTHK).
Earlier in 2003, the SEC fined Rhino Advisors, Inc., $1 million for its
representation of Amro International in the financing and manipulation of Sedona
Corp. Amro, also known as AMRO, was registered in Panama, a secretive offshore
haven, but was not named in the SEC settlement. Another 60 public companies may
have been manipulated by the fined Rhino Advisors and its indicted principals,
or its funding apparatus, Amro.
These include:
All American Food Group Inc (OTC: AAFGQ), Amanda Co Inc (OTC: AMNA), Antra
Holdings (OTC: RECD), Aquis Communications Group Inc (OTCBB: AQUIS), Avanir
Pharmaceuticals (AMEX: AVN), Bionutrics Inc (OTC: BNRX), Brilliant Digital
Entertainment Inc (AMEX: BDE), Bravo! Foods International Corp. (OTCBB: BRVOE),
Butler National Corp (NASDAQ: BUTL), Calypte Biomedical Corp (OTCBB: CYPT),
Chemtrak Inc/DE (OTC: CMTR), Clicknsettle Com Inc (OTCBB: CLIK), Corporate
Vision Inc (OTC: CVIA), Crown Laboratories Inc/DE (OTC: CLWB), Dental Medical
Diagnostic Systems Inc (OTC: DMDS), Detour Media Group Inc (OTC: DTRM),
Also, Digital Privacy Inc/DE (OTC: DGPV), Senior Services Inc (OTC: DISS),
International Inc (OTC: DYNX), Endovasc Ltd Inc (OTCBB: EVSC), Esynch Corp/CA
(OTCBB: ESYN), Focus Enhancements Inc (NASDAQ: FSCE), Frederick Brewing Co (OTC:
FRBW), Greystone Digital Technology Inc (OTC: GSTN), Havana Republic Inc/FL
(OTCBB: HVNR), Henley Healthcare Inc (OTC: HENL), Hollywood Media Corp (NASDAQ:
HOLL), Ibiz Technology Corp (OTCBB: IBZT), Diagnostic Systems Inc/FL (OTCBB:
IMDS), Imaging Technologies (OTCBB: IMTO), Integrated Surgical Systems Inc
(OTCBB: RDOC),
Also, Interferon Sciences Inc (OTC: IFSC), Interiors Inc (OTC: ITRNA), Laminaire
Corp (OTC: THMZ), Medisys Technologies Inc (OTC: SCEP), Milestone Scientific
Inc/NJ (AMEX: MS), Nevada Manhattan Group Inc (OTC: NVMH), Innovations Inc
(OTCBB: NTGE), Systems Group (OTC: OSYM), Pacific Systems Control Technology Inc
(OTCBB: PFSY), Professional Transportation Group Ltd Inc (OTC: TRUC), Rnethealth
Inc (OTC: RNTT),
Also, Sand Technology Inc (NASDAQ: SNDT), Sedona Corp (OTCBB: SDNA), Silverado
Foods Inc (OTC: SVFO), Stockgroup Information Systems (OTCBB: SWEB) Surgilight
Inc (OTC: SRGL), Tasty Fries Inc (OTCBB: TFRY), Tech Laboratories Inc (OTCBB:
TCHL), Teltran International Group Ltd (OTC: TLTG), Titan Motorcycle Co of
America Inc (OTC: TMOTQ), Trans Energy Inc (OTCBB: TSRG), Motorcycle Co (OTC:
UMCC), Universal Communication Systems Inc (OTCBB: UCSY), Medical Systems Inc
(OTC: UMSI), Vianet Technologies Inc (OTC: VNTK),Viragen Inc (AMEX: VRA),
Webcatalyst Inc (OTC: WBCL), Worldwide Wireless Networks Inc (OTCBB: WWWNQ), and
ZAP (OTCBB: ZAPZ).
Universal Express recently terminated its coverage in Investrend Research's
unique and pioneering professional analyst program, which facilitates
independent analysts to provide financial coverage for shareholders and
investors in companies that otherwise would have little or no analyst following.
Prior to the termination, Investrend Research analyst Jeff Howlett had
reiterated a "Speculative" rating on the company, a downgrade from the
previous "Speculative Buy."
The Investrend Research program is the largest in the world and includes a
number of safeguards to reduce or eliminate conflict. These systems, including
media coverage and endorsements, may be accessed at
investrendresearch.com
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may be viewed at firstresearchconsortium.com.
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