KG4,
One of the many many reasons that SPRL has been freefalling, nosediving, tanking are that rumors were flying around every where that SPRL did a massive 504 which in their case would be illegal and put them all in jail and they also didn't file with pinksheets..Cannot confirm nor deny if rumors are true or not..If they are true , than look at below. SPRL is a reporting pinksheet and you cannot do a 504 in that case..To many bad rumors flying around for me to take a crapshoot. The surge in the stock on Friday was probably frontrunning on pending news which also happens in SPRL, short covering or rumors are false about 504, who knows..SEC HALTING companies left and right for those very reasons..Just read up on the BHLL swindle..Yours truly found that one @ $11.00
stockpatrol.com
Investigative Reports
Bio-Heal Laboratories, Inc. - Company, Heal Thyself
4/27/05 The temporary trading suspension has ended, but problems are just beginning for Bio-Heal Laboratories, Inc. (OTC: BHLL). The SEC has filed a federal lawsuit charging the Company with securities fraud for its role in the illegal sale of 12 million shares of unregistered common stock that wound up in the hands of two offshore companies.
stockpatrol.com
Investigative Reports
April 27 2005
An SEC imposed trading suspension has ended but the problems are just beginning for Bio-Heal Laboratories, Inc. (OTC: BHLL). On April 25, 2005, the Securities and Exchange Commission filed a lawsuit in the United States District Court for the Southern District of Florida charging Bio-Heal with orchestrating and facilitating an elaborate securities fraud scheme centered upon the illegal sale of 12 million shares of Bio-Heal common stock.
The federal action follows a ten day trading suspension for Bio-Heal shares that was imposed after the SEC became concerned about the Company’s issuance of common shares in purported reliance on the exemptions from registration embodied in Rule 504 of Regulation D of the Securities Act of 1933. The suspension, which began on April 8, ended April 21, 2005.
The federal complaint also names MRMG Holdings, Inc., Kess Associates, Inc., ICOR, Inc., Bela Enterprises, LLC and Gibson Island Enterprises, LLC as relief defendants who received shares or assisted in the transfer of the shares. MRMG, Kess and ICOR claim to be Texas corporations, although there is no record of incorporation for Kess in Texas, and ICOR reportedly is defunct. Bela and Gibson Island are both Anguilla corporations with offices in Nassau, Bahamas.
According to the SEC, in February 2005, MRMG, Kess and ICOR received 12 million improperly issued unregistered shares from Bio-Heal, some of which were subsequently transferred to Bela and Gibson Island, who generated approximately $10.4 million in profits by dumping their stock while promoters were touting Bio-Heal. See Bio-Heal Laboratories, Inc. - In the Eye of The Perfect Storm.
As we noted in our initial report on the Company, Bio-Heal became public through a reverse-merger with a public shell called Nexar Technologies, Inc. in early 2005. At the time, Nexar was delinquent in its obligation to file periodic public reports with the SEC – a failure that has been perpetuated by Bio-Heal.
Shortly after the merger, on February 10, 2005, Bio-Heal issued 12 million shares of unregistered stock to MRMG, Kess and ICOR, based upon a legal opinion letter purportedly issued by an attorney named Michael Smith. Although the shares had not been registered, and therefore should have been subject to resale restrictions, the transfer agent issued certificates without any restrictive legend – all at the direction of Smith. The shares – without legends – were deposited in accounts at two South Florida brokerage firms, Newbridge Securities and Securities & Investment Planning Company.
There was one major problem with this scenario, according to the SEC. The telephone and fax numbers on the letters issued by Smith belong to a Texas legal aid office which does not employ any attorney named Michael Smith.
Bio-Heal has sought to distance itself from the scheme, purportedly telling the SEC that the transactions were controlled by a company called Ventana Consultants, which orchestrated the reverse-merger and the stock sales and arranged for the Michael Smith letters. The Commission is not buying that excuse, claiming that Bio-Heal either knew that the shares were restricted and had been issued using a phony attorney’s letter or was reckless in not knowing.
The SEC is seeking an Order enjoining Bio-Heal and its officers, agents and attorneys from future violations of the federal securities laws, freezing the assets of the Company and the relief defendants, seeking disgorgement of ill-gotten gains, and imposing fines.
Investors can only hope that authorities are able to repatriate these funds from offshore accounts. They are likely to have a long wait.
siliconinvestor.com
IF YOU HAVE QUESTIONS OR COMMENTS FOR STOCKPATROL.COM, CONTACT US AT editor@stockpatrol.com
All content © 2004 StockPatrol.com. All rights reserved.
Privacy Policy | Disclaimer | Contact Us
RUT RO
KA-BOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOM |
