CBA Florida Inc. (fka CBAI)

[diannedawn]

Here Ya Go!
https://www.sec.gov/litigation/complaints/2012/comp22381.pdf

Read the litigation...
companies were also charged...
"at no point during the hearing did the parties (i) inform the presiding judge what the market value of the settlement shares was, much less that the market value of the settlement shares exceeded the value of the debt being extinguished by multiples or (ii) disclose to the presiding judge that the parties had a side agreement to later remit monies to Unico."
"These payments were Unico’s principal source of financing during this period."
"After Unico received the payments, and in an effort to conceal the kickbacks, Unico issued Compass Capital or one of the Lefkowitz Related Entities a new convertible debenture with a face value equal to the amount of the kickback."
"Peacock and Traveller adopted Lefkowitz’s illegal Section 3(a)(10) strategy as a business model that they extended to other penny stock issuers, including, but not limited to: Aero Performance Products, Inc. (f/k/a Franchise Capital Corporation, Inc.) (“Aero”), CLX Medical, Inc. (f/k/a CLX Investments, Inc.) (“CLX”), Green Globe International (f/k/a GTREX Capital, Inc.) (“Green Globe”), and S3 Investment Company, Inc. (“S3”), all of which were clients of Javelin."
"at no point during the hearing, did the parties (i) inform the presiding judge what the market value of the settlement shares was, much less that the market value of the settlement shares exceeded the value of the debt being extinguished by multiples or (ii) disclose to the presiding judge that the parties had a side agreement to later remit monies to Green Globe"
"Caldwell and Lefkowitz also discussed that the Lefkowitz Related Entity would remit to Advanced Cell a portion of the profits from its subsequent sale of the settlement shares in the $350,000 to $400,000 range."
"on the date the settlement was executed, the settlement shares had a closing market value of $806,702, or nearly ten times the value of the past due debt."
"transfers were made by Outboard Investments through the Intermediary – i.e. the person who had funneled payments to Unico on behalf of Lefkowitz Related Entities – in an effort to conceal the relationship between the payments and the Section 3(a)(10) exchange."
"Following the success of their initial Section 3(a)(10) settlement, from October 2, 2008 through January 29, 2009, Advanced Cell engaged in twelve more Section 3(a)(10) exchanges with the following offshore entities for which Lefkowitz served as the U.S. agent and representative: Galleon Investments, Ice Cap Holdings, and Tuxedo Holdings, (collectively, the “Lefkowitz Related Entities II”)."

To reply to the next question in advance...
I SAID

I know when the SEC charged some other financiers a few years ago with misusing the 3(a)(10) exemption; they also charged the companies that participated in those financings...
But those companies were receiving cash kickbacks...
and this is different...so...

I did not say CBAI was charged...
I did not say CBAI received cash kickbacks...
I SAID other companies DID and were charged!

Too FUNNY!!!