MMRGlobal, Inc. (fka MMRF)

[stockmasterflash]

Gemini suit? Is it legit?

Or is it another genius scheme to raise funds? As I'm reading the arguments from both sides, it doesn't strike me as being half as legit as the SCM suit and that one is bogus as the day is long.

From Arthur on the DD board

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=108615451

""There was this case:
http://www.sec.gov/litigation/litreleases/2012/lr22381.htm

Quote:According to the Commission’s Complaint, in or about early 2006, Lefkowitz, a penny stock financier, devised a strategy for penny stock issuers to pay off past due debts while, at the same time, improperly raising additional capital in reliance upon Section 3(a)(10).
(...)
The Complaint alleges that from September 9, 2006 through January 29, 2009, in order to satisfy the fairness hearing requirement of Section 3(a)(10), more than fifty pre-settled lawsuits were filed in a Florida state court purportedly to settle past due debts owed by Unico, Advanced Cell, or other penny stock issuers (collectively, the “Penny Stock Issuers”) to Compass Capital Group and several offshore financing entities affiliated with Lefkowitz, and Sequoia International, Inc., an entity affiliated with Peacock and Traveller (collectively, the “Financiers”).

The Complaint further alleges that in each case, one of the Penny Stock Issuers entered into a written settlement agreement with one or more of the Financiers whereby the Penny Stock Issuer agreed to issue unrestricted common stock to the Financiers at a substantial discount to the prevailing market price, purportedly to retire the past due debt.
The settlement shares allegedly were worth multiple times more than the debt that was to be extinguished and the Financiers agreed to remit monies to the Penny Stock Issuer following the sale of the settlement shares to the public on the open market. According to the Complaint, none of the settlement agreements submitted to the court for approval, disclosed, nor did the parties ever apprise the presiding judges of, the existence of the side agreements, that the market value of the shares to be issued greatly exceeded the debts that were to be extinguished, or that significant sums of monies would be remitted to the Penny Stock Issuers as a result of the Section 3(a)(10) settlements.

According to the Complaint, at the conclusion of each of the hearings, the Florida state court granted a Section 3(a)(10) exemption from registration and, thereafter, unrestricted shares were issued to the Financiers, who quickly sold the shares on the open market to public investors unaware of the dilutive effects of the new stock issuances. Also according to the Complaint, the Financiers subsequently remitted millions of dollars to the Penny Stock Issuers, either directly or through an intermediary, as financing, making it an improper capital raising transaction for the Penny Stock Issuers.



--------

So, here you have it. If you want to issue and dump heaps of unregistered shares, you need an accomplice, let's call him "Herb".

1) Heb lends the company a small sum of money, say, with a Promissory Note.

2) When the Note comes due, the company say it cannot pay.

3) Herb sues the company to get paid.

4) The company and Herb come to an Agreement, the company will issue lots of shares at a huge discount as Settlement.

5) the Judge is happy to agree to such a settlement, orders the Company to issue shares to Herb, under a 3(a)(10) judicial exemption.

6) Herb dumps the unregistered shares on the market.

7) Herb and his buddies share the proceeds