Magellan Energy, Ltd. (MGLG)

[Renee]

This post should adequately explain why MGLG will not likely get off the DTCC Chill List....EVER!! I have hilited MGLG in red:

September 27, 2013: SEC Obtains Final Judgments Against Attorney Involved in 22 Corporate Hijackings and a Relief Defendant

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 22824 / September 27, 2013

Accounting and Auditing Enforcement Release No. 3494 / September 27, 2013

Securities and Exchange Commission v. Irwin Boock, et al., Civil Action No. Civil Action No. 09 CV 8261 (S.D.N.Y) (DLC)

SEC Obtains Final Judgments Against Attorney Involved in 22 Corporate Hijackings and a Relief Defendant

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=92480908

Posted tonight:
The hi-jacked tickers: BHUB, AGWS, DTGP, AFML, AVPJ, ACMG, ATLJ, ASTN, BCLC, BFDI, CVIC, CAEJ, CCMI, EAGM, EXTF, GGTS, INNP, ITGJ, ILGL, KSWJ, LSMJ, LVLV, LFXG, LCOL, MGLG, MNSI, PKTO, MPRG, MVIV, PMCL, NNCP, PKGH, PZG (a NYSE AMEX stock), RRGI, RGTN, REMV, STRU, UDSG, UTEM, UPCP, VSHE, WHKA, WWNG.

Excerpts:

PROCESS BY WHICH HIJACKERS HIJACKED DEFUNCT PUBLICLY-TRADED CORPORATIONS

61. Each hijacking followed the same pattern. The hijackers first identified publicly traded corporations whose corporate charters had been suspended or revoked for several years. The hijackers identified suitable candidates by scanning the Pink OTG Markets website for inactive corporations whose securities were still quoted but which lacked current contact, personnel, and transfer agent information. The point was to identify publicly traded corporations whose former management was unlikely to surface and challenge its hijacking, and with respect to whose liabilities the applicable statutory period of limitations either had or was about to run.

62. The hijackers then confirmed the corporations' status with the applicable Secretaries of State. If an inactive corporation was still listed but delinquent in some respect, such as for non-payment of fees or taxes or failure to make annual. filings, the hijackers filed paperwork with the state falsely representing that the shareholder, officer, or director identified therein, e.g., Boock (using an alias) or Wong, was duly authorized to revivify the corporation.

63. More frequently, the hijackers found inactive corporations that were void in state of incorporation - and thus could not be revivified - but whose'names were now available for use by others. The hijackers simply incorporated a new corporation using the name of the void corporation.

64. Under either method, Boock and his cohorts did the following in rapid succession:

(a) Immediately changed the name of the company by filing with the
applicable Secretary of State Ii Certificate of Amendment of Articles of Incorporation along with a corporate board consent and shareholder consent;

(b) Generally effected a reverse stock split to reduce. the number of outstanding shares. Reverse stock splits typically called for the exchange of 1,000 old shares for 1 new share, thereby greatly reducing the number of outstanding shares. Coupled with the subsequent issuance of additional new shares, the split greatly diluted the value of old shares relative to new shares and substantially diluted the existing shareholders' ownership interest;

(c) Improperly obtained·a new CUSIP number from the Standard.& Poor's CUSIP Service Bureau to reflect the name change, attaching in support the Certificate of Amendment by which the company changed its name. A CUSIP number is a 9-character identifier that uniquely identifies the type of security and its issuer using a common numbering system designed to facilitate the accurate and efficient clearance and settlement of securities;

(d) Prepared a fraudulent Transfer Agent Verification form ("TAVF") for signature by the transfer agent for each purportedly revivified or newly incorporated company, identifying the name, CUSIP number, and ticker symbol of the defunct or void company and the purported new name and new CUSIP symbol, and representing, if applicable, that the company's shares had undergone a reverse stock split;

(e) Improperly obtained a new ticker symbol from Nasdaq Reorganization, falsely representing that the originally incorporated, publicly-traded company had changed its name, effected a stock split (if applicable) and obtained a new CUSIP number; attaching the signed TAVF, and certifications from the Secretary of State for the relevant actions. Upon application, Nasdaq Reorganization assigns a ticker symbol for identification purposes to each class of an issuer's publicly-traded securities. A ticker symbol is a short abbreviation used to uniquely identify publicly traded shares of a particular stock on a particular stock
market. A stock symbol may consist of letters, numbers or a combination of both.

68. Defendants improperly relied upon the so-called piggyback exception under Rule 15c2-11(f)(3) based on FINRA's prior clearance of a Form 211 filed with respect to a now defunct or void corporation· so that quotation on the pink sheets could resume immediately without providing any of the information normally required under Exchange Act Rule 15c2­11(f)(3) for a new corporation. The consistent failure to file Form 211s by the hijacked corporations is further evidence that the hijackers intentionally assumed the identity of defunct corporations.

69. In many cases the hijackers changed the hijacked company's name again, and sometimes two or three more times, resulting in additional changes to CUSIP numbers and trading symbols that further complicated investigation.