East Coast Diversified Corp (fka ECDC)

[Milesblue42]

Illegal Activity? Did CEO give out Insider Information?

Not sure this CEO made any call at all where he gave out REAL ECDC insider information.

I just received a call from Kaye he told me business is crazy good .....big news is commin out by mid October..... He said Verizon is their partner and Verizon is going from school to school setting up and training the schools how to use student connect..... So the time is now to buy up the cheapies

- Why would Kayode/CEO give out ECDC insider information

IMO this alleged phone call from the CEO isn't any more true than the following events that NEVER happened

- Facebook alleged was to buy Vir2o, Never Happned

- More Rumors of Facebook wanting to buy Vir2o, Never Happened

- StudentConnect was supposed to be implented in New York, Where is it?

- Verizon alleged to be buying ECDC shares, ZERO Proof

- Alleged Promotional material for StudentConnect in New York City...

- CEO alleged saying that when School starts ECDC will take off. School has started. Where are Sponsors/Advertisers for StudentConnect?


Why would Kayode/CEO possibly run the risk of having to answer to the SEC http://www.sec.gov/answers/insider.htm

Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security. Insider trading violations may also include "tipping" such information, securities trading by the person "tipped," and securities trading by those who misappropriate such information.



Examples of insider trading cases that have been brought by the SEC are cases against:

Corporate officers, directors, and employees who traded the corporation's securities after learning of significant, confidential corporate developments;

Friends, business associates, family members, and other "tippees" of such officers, directors, and employees, who traded the securities after receiving such information;

Employees of law, banking, brokerage and printing firms who were given such information to provide services to the corporation whose securities they traded;

Government employees who learned of such information because of their employment by the government; and

Other persons who misappropriated, and took advantage of, confidential information from their employers.

Because insider trading undermines investor confidence in the fairness and integrity of the securities markets, the SEC has treated the detection and prosecution of insider trading violations as one of its enforcement priorities.

The SEC adopted new Rules 10b5-1 and 10b5-2 to resolve two insider trading issues where the courts have disagreed. Rule 10b5-1 provides that a person trades on the basis of material nonpublic information if a trader is "aware" of the material nonpublic information when making the purchase or sale. The rule also sets forth several affirmative defenses or exceptions to liability. The rule permits persons to trade in certain specified circumstances where it is clear that the information they are aware of is not a factor in the decision to trade, such as pursuant to a pre-existing plan, contract, or instruction that was made in good faith.

Rule 10b5-2 clarifies how the misappropriation theory applies to certain non-business relationships. This rule provides that a person receiving confidential information under circumstances specified in the rule would owe a duty of trust or confidence and thus could be liable under the misappropriation theory.

Just as all of the above rumors NEVER Happened not sure the Market will believe that this CEO would give out insider information about ECDC.