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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: scion who wrote (112994)	5/4/2011 1:55:48 PM
From: scion	Read Replies (1) \| Respond to of 122087

SEC sues Florida man who offered to buy AMR, Kodak By TERRY MAXON Staff Writer tmaxon@dallasnews.com Published 04 May 2011 11:03 AM dallasnews.com The Securities and Exchange Commission is suing a Florida man who offered to buy all the stock in Eastman Kodak and AMR Corp., parent of American Airlines Inc., in March. In the suit filed Tuesday in a Florida federal district court, the SEC alleged that Allen Weintraub and his Sterling Global Holdings “have substantially no assets” and “lack the means to complete the tender offers.” The civil lawsuit refers to Weintraub as “a convicted felon on probation for fraud in the State of Florida” and says he has been previously enjoined “against violations of the antifraud provisions of the federal securities laws.” A federal court order bars him from acting as an officer or director of a public company. It also noted that Weintraub “filed for personal bankruptcy in April 2007” and has not paid the SEC a previous judgment “in the amount of $1.05 million.” In the AMR case, Weintraub sent a letter to “Gerald Arpey” offering $9.75 per share of AMR stock, an offer worth about $3.25 billion. Gerard Arpey is chairman, president and chief executive of AMR. AMR officials had brushed off the offer and referred the letter to SEC officials. “I have to be careful about what I say publicly,” Arpey told reporters April 8. “We're not the first company that that particular individual has done that to. Let's just say that individual has a very colorful history, and so the SEC is dealing with that person, not us.” On April 26, Weintraub sent a follow-up letter to Arpey urging him to negotiate with him. “I won't even address the personal comments, because in my opinion they are without merit,” Weintraub wrote. In its complaint, the SEC said Weintraub tried to obtain bank financing for his tender offers for Kodak and AMR, but the banks turned him down. “In communications with various media outlets, Weintraub misrepresented his experience in purchasing and operating companies and failed to disclose his prior felony convictions, SEC injunction, and officer and director bar,” the complaint stated. Weintraub could not be reached immediately for comment. The SEC action cites a conversation that Weintraub had with the Dallas Morning News on March 29 claiming to have financing in place and stating that he and his companies had done a number of successful deals in the past. A transcript of that conversation ran on the newspaper’s Airline Biz blog, aviationblog.dallasnews.com. dallasnews.com