Shamika 2 Gold, Inc. (fka SHMX)

[1manband]

anyone know whats going on here. dead in the water?

The SEC revoked it for delinquent filings. The stock is dead, dead, dead. Just waiting for the death certificate (final revocation). The new President is trying to fight the revocation, but the SEC has them dead to rights. The new President is also lying to the SEC, which is not a good way to start. The SEC is very direct in how the Company is lying.

http://www.sec.gov/litigation/apdocuments/3-16525-event-8.pdf

"RKO Resources claims in its motion that "it has a reasonable basis for the inadvertent failure to appear or otherwise respond to the [OIP]." The affidavit of David Bercusson, the new President of RKO Resources, seems to base this claim on his allegation that Henry Riedl, the former President and CEO of RKO Resources, resigned effective May 19, 2015, and that Bercusson was not appointed an officer ofRKO Resources until June 1, 2015. However, Division counsel spoke to Mr. Riedl on May 21 and 26, 2015 about the administrative proceeding, and he represented that he was the President and CEO of RKO Resources at that time. And, Mr. Riedl confirmed this again on June 5, 2015. (Welch Deel.,~~ 3-4.)

Moreover, because the OIP was served on RKO Resources by attempted mail service on May 8, 2015, the answer to the OIP was due on May 18, 2015 under the Rules of Practice. RKO Resources' attempt to muddy the waters as to when the answer was due should be rejected. The Division's confer letter of May 7, 2015 "proposes" a prehearing conference date of June 4, 2015 pursuant to the May 6, 2015 Order Scheduling Hearing and Designating Presiding Judge (Welch Deel., Exhibit 4). The confer letter does not set a June 4, 2015 prehearing conference, and does not purport to make RKO Resources' answer due on June 4, 2015, as Mr. Bercusson claims.
(Bercusson Affidavit, il~ 4-5.)

Mr. Riedl was clearly still in charge of RKO Resources on May 18, 2015, when the answer was due, and failed to file the answer on behalf of the respondent. The initial decision defaulting RKO Resources was issued on May 26, 2015, before Mr. Riedl resigned from RKO Resources, and before Mr. Bercusson took control of the issuer on June 1, 2015. Moreover, RKO Resources has yet to file Forms 8-K announcing a change in control of the company, as required by Item 5.01 of Form 8-K, or announcing the resignation of Mr. Riedl as President or the appointment of Mr. Bercusson as President, as required by Item 5.02 of Form 8-K. (Welch Deel., Exhibit 3.)

RKO Resources' proposed defense has no merit. First, if Mr. Bercusson had done his due diligence before acquiring RKO Resources by simply checking the company's filings on EDGAR, he would have known that the company was over two years delinquent in its periodic reports. (Welch Deel., Exhibit 3.)

Second, even if RKO Resources was able to file all of its delinquent reports within a short period of time, it still violated Section 13(a) of the Securities and Exchange Act of 1934 ("Exchange Act"), and Exchange Act Rules 13a-1 and 13a-13 for over two years, for which it should be sanctioned by a revocation. In Absolute Potential, Inc., Exchange Act Rel. No. 71866, 2014 SEC LEXIS 1193 (April 4, 2014), the Commission revoked the registration of the delinquent issuer despite the fact that it became current during summary disposition briefing.

"[l]t is necessary to deter Absolute and other issuers from disregarding their obligations to present accurate and timely information to the investing public until spurred by the institution of proceedings. Deterrence is meaningful only if a lengthy delinquency, in the absence of strongly compelling circumstances regarding the other Gateway factors, 1 results in revocation." 2014 SEC LEXIS 1193, *24.

Third, while Mr. Bercusson states that he has "spoken with other shareholder investors who unanimously believe that permanently revoking RK.O's registration provides no benefit to RKO and makes it less likely for the company to succeed in the future," (Bercusson Affidavit, if 24), this argument is not persuasive. What harmed the shareholders of RKO Resources was the
company's failure to file periodic reports since 2012."