QSGI, Inc.(fka QSGI)

[trader1998]

I notice you put "offices" in quotes, I believe it ought to be "friends" as guys like Sherman dont have friends at this point, just ex friends. Nobody is bailing him out.

[jaxstraw]

The odds are basically 99.9% QSGI either gets it's registration revoked or stays on the Grey Market.

Revoked will mean total loss.

Grey Market trading will be exactly what you have witnessed since the temporary suspension was lifted in Sept.

IMO that would constitute a total loss also in principal since it is nearly impossible to effectively trade without a Market Maker to match quotes.

Some good info on Grey Market on this board....

http://investorshub.advfn.com/Grey-Market-or-Grey-Sheet-Q-&-A-25608/

[Remote777]

So in other words Jax....

Assuming your information is accurate we have little or no shot at all of recovering loss?

Thanks

[jaxstraw]

In the past 4 years and 10 months there have been 2076 SEC Suspensions where ALL stocks were sent to the Grey Sheets. Of the 2076 Suspended stocks 882 remain on the Grey Sheets and 1201 stock registrations were Revoked (7 revocations from Admin Proceedings with no Suspension = 1194 from Suspensions).

Note: The SEC occasionally files Administrative Proceedings and subsequent Registration revocations without suspending a stock.

There are two types of SEC Suspensions, one for SEC Filers that are delinquent in filing any Financials. The SEC Suspension is always accompanied with an Administrative Proceeding outlining the Financials delinquencies. Those stocks will have their stock registrations revoked under DEFAULT or other Admin Law Judge reasons when the delinquent Financials are not filed as ordered by the SEC. Stocks in this category will remain on the Grey Sheets until the SEC Admin Law Judge revokes the stock registration.

The second type of SEC Suspension involves questions about adequacy and / or accuracy of company information, including news releases, share issuances, stock promotions, whatever else the SEC may allege. This group comprises SEC Filers or non-filers, ie., stocks that do not report to the SEC but periodically report to OTC Markets. NOTE: stocks that do not have stock registrations with the SEC cannot be revoked but can have their stock symbol deleted by FINRA. Stocks suspended under QUESTIONS about adequacy and accuracy of information will remain on the Grey Sheets until the SEC litigates against the company, which may take years to occur, or when FINRA deletes the symbol.

NOTE: Delinquent SEC Filers (ie., no current Financials) are usually sent from the SEC reporting OTCBB to the non-reporting OTC Markets. It is imperative to differentiate between delinquent SEC Filers on the OTC from the non-reporting stocks on the OTC. Even if an SEC Filer submits Financials to OTC Markets but has not filed Financials to the SEC for an extended period of time those stocks WILL eventually be suspended and thereafter have their stock registrations REVOKED!! The first due diligence on any OTC stock is to check with EDGAR to see if that stock is registered with the SEC and if the stock is a delinquent SEC Filer. If a stock is a severely delinquent SEC Filer DO NOT BUY THAT STOCK under any circumstances, exampled by the 1201 delinquent filers that were suspended or ordered by an SEC Admin Proceeding to file Financials and were subsequently revoked.

http://www.sec.gov/edgar.shtml

http://www.sec.gov/edgar/searchedgar/companysearch.html

NOTE: Of the 2076 Suspended stocks only EDVP (now PRLX) got off of the Grey Sheets, a very rare occurrence. It is perilous to think that any other Grey Sheet stock will get off of the Grey Sheets.

Note: The 882 stocks that remain on the Grey Sheets do not have any Market Maker representation or quotations.

[jaxstraw]

http://www.sec.gov/alj/aljorders/2014/ap-2020.pdf

It appears Shermans argument for he would have to pay monetary civil penalties due to the charges are alleged to happen before Dodd-Frank has been upheld.

The officer and director bar and cease and desist are still going to be heard.

The Division also argues that the issue is not ripe for decision in that Sherman’s alleged
violations, if proven, could result in the sanctions other than civil penalties, such that the scope of
the hearing would be unchanged whether or not civil penalties are precluded in advance. However,
as Sherman states, preclusion of civil penalties will make settlement negotiations more efficient and
will also eliminate any need to consider evidence of Sherman’s ability to pay penalties. In short,
deciding the penalty issue now will shorten the hearing and contribute to a more efficient resolution
of the proceeding. Accordingly, civil penalties will be precluded in this proceeding in the event that
the undersigned concludes that Sherman committed any violation alleged in the OIP.

[jaxstraw]

They aren't coming out of their SEC 'issues'.

Sherman totally screwed shareholders by not filing as required.

From January 2010 until today there have been a total of 1116 SEC Suspensions where ALL 1116 stocks were reinstated on the Grey Sheets after the ten day SEC Suspension ended.

Of the 1116 SEC Suspended stocks since January 2010 645 Registrations have been revoked.

The remaining 471 stocks are on the Grey Sheets (or still in the ten day SEC Suspension within the last ten days) and not one has made it off the Grey Sheets back to quotation by any Market Maker.

[Vish2]

Let us see once they come out of SEC issues.

[Remote777]

Hey Vish....

May i suggest a certified letter to their "offices" in Florida and see if SOMEONE will at least respond to you. I think the best chance at anything positive is if Marc's old friends bail him out and buy whatever is left of the company at a penny/share. (Sure would make me happy)

[Vish2]

No info, waiting as ever

[BBLV]

Finally some volume!

[jaxstraw]

Welcome to the Grey Sheets. A trade today for 20 shares at .001

For a whopping 2 cents.....minus the 7.95 trade transaction fee.

[jaxstraw]

Wow...it appears that Moshe Schneider and Avner Harel , the former partners who sued to get the non-competative clause removed once they walked away from QSGI , are doing extremely well as Sherman watches his company go down in flames.

bringing the 2014 year-to-date revenue to approximately $6.7 million.

http://www.prlog.org/12387009-oesolutions-reports-strong-revenue-and-continued-expansion-during-the-third-quarter-of-2014.html

Solutions (Orange) is a leading provider and installer of cost effective energy efficiency solutions for commercial refrigeration business applications, including those in the grocery, restaurants, C-Store, fast food and hotel industries. Products include custom manufactured gaskets, strip curtains, night covers, anti-sweat controllers, door closers, gasket sweepers, handles, latches, hinges and custom door repairs.

Headquartered in New York, NY, Orange is owned and managed by Moshe Schneider and Avner Harel who over their 25 years of combined industry experience have built a reputation for providing quality products, services and end-to-end solutions. As of September 30, 2014 Orange has added offices in upstate New York, Virginia, Michigan, Colorado, Arkansas, Modesto California and Winnipeg, Manitoba Canada. Orange is highly mobile and looking for expansion opportunities in the United States and Canada through participation in energy efficiency programs or serving national or regional chains’ retrofit and ongoing maintenance needs.

Revenue for the calendar quarter ended September 30, 2014 was approximately $1.9 million; bringing the 2014 year-to-date revenue to approximately $6.7 million. Orange expanded their operations during the third quarter of 2014 into Little Rock Arkansas and Modesto California. CEO Avner Harel commented that “Orange expects to expand operations into three additional states before the end of 2014 and in one additional location in Canada in the next three to four months”. He added that “Orange has continued to add additional products such as the sale and installation of LED lighting fixtures for refrigeration and freezer units”.

President Moshe Schneider commented that “Orange works with utility companies in the United States and Canada by educating them onthe energy savings opportunities their products provide. This result in utilities adding these energy efficiency measures to their rebate and incentive programs. Orange is able to demonstrate their ability to deliver significant customer participation under utility rebate and incentive programs.” Schneider added that “Orange, alongside certain utilities and energy efficiency related companies, is conducting studies on certain energy saving measures.”

If you are a national, regional or local chain, Orange can be your full service retrofit and maintenance provider and where possible, we will help you obtain rebates and incentives under energy efficiency programs.

Orange provides parts nationally (except Florida), through their website “Oesolutions.net”.

Orange Energizing Solutions

[jaxstraw]

In any language it is incredibly bad news......

The SEC only suspends a delinquent SEC Registrant Filer when the company has not satisfactorily responded to correspondence sent by the SEC to the delinquent Filer, or when the SEC has been unable to contact the company.

When the SEC suspends a stock for being severely delinquent in filing Financials it is likely too late for the company to file the delinquent Financials during or after the SEC Suspension. Nonetheless the SEC Administrative Law Judge (ALJ) will convene a formal Hearing where the delinquent SEC Filer has the opportunity to explain why the company had not filed any Financials for the specified periods.

In virtually all instances the ALJ does not accept any reasons for the company's delinquencies in filing quarterly and yearly Financials, particularly when the company could have avoided the SEC Suspension by responding to the SEC's letters inquiring about the Financials delinquencies. The ALJ will give the company the option to agree to the SEC ALJ revoking the stock registration whereby the company can thereafter apply for a new stock registration under Form 10, or the SEC ALJ will revoke the stock registration under DEFAULT reasons, where default means the Financials delinquencies exist and it is too late to cure the delinquencies. NOTE: In the past 4 1/2 years only one company out of 1127 revoked stocks successfully re-registered their stock though some have tried (examples PELE, LLEG) but were denied by the SEC.

[Michi 1968]

My englisch is Not Good! Good or Not for us!? Thanks for Info

[jaxstraw]

http://www.sec.gov/alj/aljorders/2014/ap-1896.pdf

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
ADMINISTRATIVE PROCEEDINGS RULINGS
Release No. 1896/October 7, 2014
ADMINISTRATIVE PROCEEDING
File No. 3-16044
In the Matter of

QSGI INC.
ORDER FOLLOWING PREHEARING
CONFERENCE
On August 28, 2014, the Securities and Exchange Commission instituted this proceeding
against QSGI Inc., with an Order Instituting Administrative Proceedings (OIP) pursuant to
Section 12(j) of the Securities Exchange Act of 1934.
A telephonic prehearing conference was held on October 7, 2014, attended by the
Division of Enforcement and Respondent’s counsel, Duncan Farmer. Mr. Farmer agreed that
Respondent was served with the OIP on September 2, 2014, and the following briefing schedule
was established:
October 28, 2014: Motions for summary disposition are due;
November 18, 2014: Oppositions are due; and
December 2, 2014: Replies, if any, are due.
The parties are reminded that, pursuant to Commission Rule of Practice 250, they may
attach to motions for summary disposition supporting declarations and affidavits presenting any
facts they wish me to consider. See 17 C.F.R. § 201.250(c). If it appears that a party, for good
cause shown, cannot present by affidavit prior to a hearing facts essential to justify opposition to
a motion for summary disposition, I will deny or defer the motion. See 17 C.F.R. § 201.250(b).
SO ORDERED.
_______________________________
James E. Grimes
Administrative Law Judge

[jaxstraw]

Typical of a POS stock not having Market Maker quotes and subjecting investors to try and use the Gray Market.

Massive loss of value if a matched trade ever occurs.

In this.case this obscure matched trade dropped this to $.001 , an all time low ,for a 60% loss.

Some good info here on why.......http://investorshub.advfn.com/Grey-Market-or-Grey-Sheet-Q-&-A-25608/

Stocks generally end up as what is commonly called Grey Sheet stocks after an SEC suspension.  Technically, it is the Grey Market.

Market Makers are warned, pursuant to 15c 211 not to publish a quote for the security without reviewing its information statement/clarified information statement

Other OTC or otherwise known as the "GREY Market" is the trading of a security that is not listed on any stock exchange or quoted on the Pink Sheets or the OTCBB.

Other OTC trades are however reported to the NASD so investors can still track price and volume, however bids and offers are not collected in a central spot so Best Execution of orders is difficult.



As of September 21, 2012: From January 2010 until today there have been a total of 1116 SEC Suspensions where ALL 1116 stocks were reinstated on the Grey Sheets after the ten day SEC Suspension ended.

Of the 1116 SEC Suspended stocks since January 2010 645 Registrations have been revoked.

The remaining 471 stocks are on the Grey Sheets (or still in the ten day SEC Suspension within the last ten days) and not one has made it off the Grey Sheets back to quotation by any Market Maker.

Of the 471 stocks that are on the Grey Sheets most are awaiting revocation on DEFAULT for failure to file Financials, wherein there were no other allegations that would require subsequent SEC Litigation(s).

Stocks that were Suspended for any allegations are awaiting SEC Litigation or are being litigated and those stocks will remain on the Grey Sheets and will NOT be revoked until all SEC Litigation has been adjudicated by an SEC Administrative Law Judge.

[sampson2]

0.001 ? -0.0015 (-60.00%)
Volume: 9,000 @ 1:49:18 PM ET

[jaxstraw]

No Market Maker quotes.......3 weeks and 1 day after the 'temporary' suspension' was lifted.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=106237296

[jaxstraw]

D&O does not cover fraud or fraudulent activities.

[sampson2]

I'm pretty sure most C level employee's of companies that are traded publically are covered by a D&O insurance policy, so the statement "spending money on lawyers" is probably not accurate...

[jaxstraw]

You have to give it to Sherm.

He is nothing but consistent with his sheer idiocy and penchant for spending money on lawyers.

His company is going to get its registration revoked and cease to trade and no longer be public.......yet he will spend untold dollars to fight a separate action for fraud in which he is facing a five year director ban on running a public company.

Makes tons of sense.

LMFAO.

[BBLV]

Sherm is still responding to emails quickly and with confidence...

Time will tell? Isn't that phrase getting VERY OLD with this bag??

[gr8f1]

Jaxstraw, I think we got jacked-up by this "Cinderella story"! I still have a heavy bag that's now giving me a workover. Shoulda bailed long ago but rode the ship to the bottom. I think the captain abandoned ship OK though!

[jaxstraw]

No Market Maker quotes.......3 weeks after the 'temporary' suspension' was lifted.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=106237296

[jaxstraw]

No Market Maker quotes.......14th trading day after the 'temporary' suspension was lifted.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=106237296

[jaxstraw]

No Market Maker quotes.......13th trading day after the 'temporary' suspension was lifted.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=106237296

[BBLV]

Not completely dead yet. Close, but not final!

[Diogenes of Sinope]

We may have been led to water but it was our choice to drink the swill.

As always, timing is paramount. I blame only myself.

GL!

[neurotic trader]

Yes good old Hdogtx and crew did a number on us.

[neurotic trader]

They Will never come back Qsgi is now officially done. I have yet to see a stock come out of the greys. Never! Suspension equals finished because it will never get quoted again.

[Diogenes of Sinope]

I got bit here! Can't win 'em all. Another Halloween bag from the OTC. Sometimes ya get treats, most times ya get tricks.

Tax write offs can be timely, only if it could be sold. It cannot be at this time.

Ce la vie.

GLTA!

[jaxstraw]

No Market Maker quotes.......12th trading day after the 'temporary' suspension was lifted.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=106237296

[jaxstraw]

No Market Maker quotes.......11th trading day after the 'temporary' suspension was lifted.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=106237296

[jaxstraw]

No. It was temporarily suspended from trading. Even though the suspension is now lifted QSGI has not satisfied the requirements for Market Makers to list any quotes.
And it will be nearly impossible for them do ever do so before the suspension most likely permanent by revocation.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=106237296

[neurotic trader]

So we are on grey market now?

[neurotic trader]

So this is now a grey stock. Great. Turn off the lights. It's over. Nothing ever comes out of the greys. Ever

[jaxstraw]

No Market Maker quotes.......10th trading day after the 'temporary' suspension was lifted.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=106237296

[jaxstraw]

No Market Maker quotes.......9th trading day after the 'temporary' suspension was lifted.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=106237296

[Islandpumper]

Agree-

[jaxstraw]

No Market Maker quotes.......eighth trading day after the 'temporary' suspension was lifted.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=106237296

[Vish2]

I would be happy to see light at the end of tunnel , hope the lawyers settle the case w/SEC to the benefit of those employees,shareholders and company files recent earnings.We the shareholders of QSGI need some respite..

[jaxstraw]

No Market Maker quotes.......seventh trading day after the 'temporary' suspension was lifted.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=106237296

[Islandpumper]

what a mean streak we are on

[jaxstraw]

No Market Maker quotes.......sixth trading day after the 'temporary' suspension was lifted.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=106237296

[jaxstraw]

No Market Maker quotes today.......fifth trading day after the 'temporary' suspension was lifted.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=106237296

[jaxstraw]

No Market Maker quotes today.......fourth trading day after the 'temporary' suspension was lifted.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=106237296

[jaxstraw]

No Market Maker quotes today.......third trading day after the 'temporary' suspension was lifted.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=106237296

[jaxstraw]

No Market Maker quotes today.......second trading day after the 'temporary' suspension was lifted.

[jaxstraw]

So much for temporary.

The suspension order was 'lifted' Thursday night ( Sept 11) at 11:59pm.

Yet all day yesterday ( Friday Sept 12) there were no quotes from any Market Makers or trading of the security.

It certainly appears that this is still dead in the water because Sherman can not meet the requirements Market Makers need to quote.

So on Sept 11, the' termination of the trading suspension' any Market Maker ,to list a quotation, must have in hand a whole slew of documents QSGI does not have....including latest annual reports.

The suspension might be lifted , but it appears no MM will be able to quote anything related to QSGI.

-(3) A copy of the issuer's most recent annual report filed pursuant to section 13 or 15(d) of the Act...... together with any quarterly and current reports that have been filed under the provisions of the Act by the issuer after such annual report or annual statement;

http://www.law.cornell.edu/cfr/text/17/240.15c2-11

Further, brokers and dealers should be alert to the fact that, pursuant to Rule 15c2-11
under the Exchange Act, at the termination of the trading suspension, no quotation may
be entered unless and until they have strictly complied with all of the provisions of the
rule.

www.sec.gov/litigation/suspensions/2014/34-72939.pdf

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=106113016

Frankie says homemade lemoncello's and drywall for everyone !! <snicker>

[BBLV]

Lovely. Sherm doing what Sherm does best..