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Saturday, May 14, 2016 7:51:45 PM
And interesting footnote to the BILB story…
I had this information last week, but forgot about it until last night. It seems attorney Adam Tracy is in the process of taking over the BILB shell. Applying for custodianship of abandoned shell companies is a cheap and easy way to make money, though generally speaking the SEC would rather people not do it.
Tracy has already added BILB to his "For Sale", list:
As you can see, Tracy says he holds a note for $34,670 that is convertible into 34,670,000 shares of commons, and is "free trading pursuant to Section 3(a)(10)/Rule 144". Seriously? Rule 144 certainly wouldn't be applicable. BILB is an abandoned shell; if Tracy is granted custodianship and sells it to an operating business, it'll still be a shell company for a year from the time the new owner declares it is no longer a shell. Section 3(a)(10) of the Securities Act of 1933 provides that in some circumstances, a judge can order the issuance of free trading stock. Whether the judge in the custodianship action would be willing to do that is unknown.
Obviously, if Tracy succeeded in converting his 34.7 million shares of BILB into free trading stock, he'd control the float, and then some. So presumably one of the first things a new owner would do would be to issue yet more stock, and somehow manage to register it, or or get Rule 144 restrictions lifted quickly.
That, however, is putting the cart before the horse. In reality, Tracy isn't yet custodian of BILB. He only filed the complaint in the custodianship action on 22 March 2016:
There was a hearing on his petition for appointment on 11 May. It was continued because for some reason the petition needed to be amended:
The next hearing will be on the 25th of this month. At this moment, Tracy doesn't control the shell, and therefore hasn't issued himself a convertible note. If his petition is eventually granted, his next move will be to appoint himself sole officer and director of BILB. He'll then try to sell the shell as quickly as possible. That may prove difficult, given that it really couldn't be described as "clean".
As the custodianship filings indicate, Tracy makes these applications in the name of one of his companies, Barton Hollow LLC:
http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=0M3uorWJQ30Wn5R2PsgrEA%253d%253d&nt7=0
Barton Hollow has been very busy in the past year and a half or so, filing 25 custodianship actions in Clark County District Court:
The Tracy shells are very cheap. He generally lists them at "best offer". The most expensive will set its lucky new owner back $60,000. The least expensive costs a mere $15,000. There must be something terribly wrong with it.
I had this information last week, but forgot about it until last night. It seems attorney Adam Tracy is in the process of taking over the BILB shell. Applying for custodianship of abandoned shell companies is a cheap and easy way to make money, though generally speaking the SEC would rather people not do it.
Tracy has already added BILB to his "For Sale", list:
As you can see, Tracy says he holds a note for $34,670 that is convertible into 34,670,000 shares of commons, and is "free trading pursuant to Section 3(a)(10)/Rule 144". Seriously? Rule 144 certainly wouldn't be applicable. BILB is an abandoned shell; if Tracy is granted custodianship and sells it to an operating business, it'll still be a shell company for a year from the time the new owner declares it is no longer a shell. Section 3(a)(10) of the Securities Act of 1933 provides that in some circumstances, a judge can order the issuance of free trading stock. Whether the judge in the custodianship action would be willing to do that is unknown.
Obviously, if Tracy succeeded in converting his 34.7 million shares of BILB into free trading stock, he'd control the float, and then some. So presumably one of the first things a new owner would do would be to issue yet more stock, and somehow manage to register it, or or get Rule 144 restrictions lifted quickly.
That, however, is putting the cart before the horse. In reality, Tracy isn't yet custodian of BILB. He only filed the complaint in the custodianship action on 22 March 2016:
There was a hearing on his petition for appointment on 11 May. It was continued because for some reason the petition needed to be amended:
The next hearing will be on the 25th of this month. At this moment, Tracy doesn't control the shell, and therefore hasn't issued himself a convertible note. If his petition is eventually granted, his next move will be to appoint himself sole officer and director of BILB. He'll then try to sell the shell as quickly as possible. That may prove difficult, given that it really couldn't be described as "clean".
As the custodianship filings indicate, Tracy makes these applications in the name of one of his companies, Barton Hollow LLC:
http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=0M3uorWJQ30Wn5R2PsgrEA%253d%253d&nt7=0
Barton Hollow has been very busy in the past year and a half or so, filing 25 custodianship actions in Clark County District Court:
The Tracy shells are very cheap. He generally lists them at "best offer". The most expensive will set its lucky new owner back $60,000. The least expensive costs a mere $15,000. There must be something terribly wrong with it.
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