SPLT : Warning - I have been following this stock for a while. It is moving up nicely today. What concerns me though is the news that came out a few days ago about the SEC investigation. If you got in low, this run might be a good time to take your profits. Not sure how far this will go and how long it will last though.
Ex-CEO at Novato's SpatiaLight accused in stock swindle
Nancy Isles Nation
Article Launched: 12/24/2007 03:55:26 PM PST
The U.S. Securities and Exchange Commission has filed a complaint against Novato-based SpatiaLight Inc., the company's former chief and a financial company he owned, accusing them of fraud.
The litigation, filed in U.S. District Court in San Francisco, accuses former CEO Robert Olins of pocketing $2.6 million in a stock scam, selling stock based on inside information and lying to regulators about a company audit.
The high-tech company, already facing administrative turmoil and a stock that plummeted to near zero after it lost its only liquid crystal television display customer last summer, is based at Hangar 5 at Hamilton Field in Novato.
Neither Olins, 51, of Mill Valley, nor anyone at SpatiaLight could be reached for comment. The office was closed Monday.
The SEC complaint, filed Thursday, alleges Olins violated multiple regulatory requirements and claims that a July 2005 filing with the commission by SpatiaLight and Olins used forged exhibits.
The complaint also claims that, in August 2005 and February 2006, Olins sold shares of SpatiaLight stock based on information that was not made public.
In January 2005, SpatiaLight, Olins and his financial company, Argyle Capital Management Corp., engaged in the unregistered
distribution of hundreds of thousands of shares of SpatiaLight stock. SpatiaLight issued 423,264 shares to Argyle without proper documentation, according to the complaint.
Within weeks of receiving the shares, Argyle assigned them to Olins, who between April and June 2005 sold the shares on an E*Trade Financial account. According to the complaint, when Olins opened the account he falsely stated he was not an officer, director or 10 percent shareholder of a publicly traded company.
The complaint also alleges that Olins did not report, or failed to report in a timely manner, the sale of more than 700,000 shares of SpatiaLight stock.
The complaint asks for financial reimbursement and penalties.
SpatiaLight, founded in 1989, manufactures high-resolution microdisplays for high-definition televisions.
In November, the company reported a net loss of $2.9 million in the third quarter, or $1.25 per share. SpatiaLight lost $13.8 million, or $9.37 a share, in the first nine months of the year.
The Nasdaq Capital Market threatened to delist the company in April because its common stock fell below the minimum $1 per share for 10 consecutive trading days. The company said it would appeal.
In November 2006, SpatiaLight announced that Don Suh, the company's senior vice president, would replace Olins as chief executive officer after Olins resigned from the company and its board of directors. Suh is no longer with the company.
A press release issued by SpatiaLight at the time credits Olins for advancing the company's technology and manufacturing process, and for securing a business arrangement with an Asian company. That deal later was reported to be terminated.
David Hakala, who was appointed chairman of the board at the time, was supportive of Olins in the press release.
"I would like to personally thank Robert for all his efforts and support over the last few years. His numerous accomplishments include securing financing for the company since his initial investment in 1996 and building SpatiaLight's LCoS (liquid crystal on silicon) business virtually from the ground up," Hakala is quoted as saying. "The company now stands on the cusp of several significant achievements. Robert has been a great asset to this management team and we are sorry to see him leave as an officer and as a board member, but we look forward to his continued advice as a consultant to the company."
A phone listing in Novato for Hakala has been disconnected.
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Contact Nancy Isles Nation via e-mail at nnation@marinij.com
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All posts are only my opinion and are not buy or sell recommendations.
