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From info presented by others, to move from greys back to pinks a broker-dealer must file a form 211 with FINRA and have it approved.
As long as there is possible SEC action against the company, that is not likely, so the current SEC situation following the trading suspension and DECN's filing of 550 Petition is of importance.
SEC had deadline to file all evidence it had at the time of suspension before the commission by May 20th. Usually that is posted on the SEC.gov website, but is not there. I have sent emails to SEC to try to find out status as to whether or not anything was filed by the May 20th deadline, but have not received a response as yet.
Interesting speech by Co-Director of SEC, Division of Enforcement on May 12, 2020.
General overtone is the focus on preventing fraud during a crisis and their focus on any COVID-19 related activity. They are being aggressive and proud of being aggressive in their interventions and the fact of having suspended trading in so many companies is presented as a badge of honor. Full address at this link:
Keynote Address: Securities Enforcement Forum West 2020 by Steven Peikin, Co-Director, Division of Enforcement, May 12, 2020
A few noteworthy points, of which there are many more:
1.
Quote:Trading suspensions are, by design, prophylactic. The SEC has the authority to suspend trading in a stock “if in its opinion the public interest and the protection of investors so require.”[6]
2.
Quote:The path that leads to a recommendation that the Commission order a trading suspension often starts with referrals from FINRA, tips from investors, or from the Commission staff’s own market surveillance.
3.
Quote:Trading suspensions have been a critical element of the Commission’s response to COVID-19.
4.
Quote:The Commission has also suspended trading in the stock of at least three microcap issuers whose names or ticker symbols closely resembled those of unrelated companies whose products are actually relevant to COVID-19, such as testing, N-95 masks, and videoconferencing technology, due to concerns about investor confusion, among other things.[11]
5.
Quote:A trading suspension is not a finding of fraud or misconduct.[12]
So, first point, note well - from the SEC's own enforcement director, a trading suspension is not a finding of fraud or misconduct. They use it as a tool or step for sometimes further investigation. However, note, they suspended trading in 3 companies during this time just because their stock ticker symbol could be confused with another company - how fair is that?
They also admit that they are being pro-active and can suspend trading just because they feel it is in the public's interest because of their sense of information in the market-place. And because they state that a suspension is not a finding of fraud or even of misconduct, they could do it because of other people putting out mis-information in the market place or concerns over trading patterns.
So all the posts claiming the suspension was due to fraud by KB or the company go directly against the SEC's Enforcement Division's Co-Director's public statement about their recent actions, even though in many instances, it may involve fraud.
Here's the full segment of the speech from which my quotes have been taken.
Quote:C. Results
Now let me turn to some of the results we have achieved so far on behalf of investors.
1. Trading Suspensions
In our March 23 statement, Stephanie and I emphasized that the Division was “committing substantial resources to ensuring that our Main Street investors are not victims of fraud or illegal practices in these unprecedented market and economic conditions.”[5] The most visible manifestation of this commitment is the significant number of trading suspensions the Commission has ordered in the last several months. Trading suspensions are, by design, prophylactic. The SEC has the authority to suspend trading in a stock “if in its opinion the public interest and the protection of investors so require.”[6] In many instances, the Commission suspends trading when there are questions about whether public information about the issuer is accurate, adequate, or reliable.[7] Because of the importance to and potentially significant impact on investors of questions about whether public information about the issuer is accurate, adequate, or reliable, we are conducting these investigations on an accelerated basis.
The path that leads to a recommendation that the Commission order a trading suspension often starts with referrals from FINRA, tips from investors, or from the Commission staff’s own market surveillance. Because time is often of the essence, Enforcement staff engage in accelerated fact gathering and analysis, analyzing public statements by and about the issuer and reviewing trading data. In some cases, the staff may contact brokers, promoters, or others for documents or information. Where claims have been made about contracts or new products, staff may contact counter parties or others to gather facts about whether those claims are accurate. If the staff believes that a trading suspension is warranted, it makes a recommendation to the Commission for expedited consideration.
The SEC may suspend trading in any stock for up to 10 business days, after which trading may resume. For stocks that trade on an exchange, quoting may resume as soon as a suspension ends. For stocks quoted over-the-counter (OTC), however, quoting does not automatically resume after the suspension ends. Instead, a broker-dealer generally may not solicit investors to buy or sell the previously-suspended stock until certain requirements are met. Because a trading suspension that results in a break in two-way quotations for more than four business days removes the so-called “piggyback exception” that enables many OTC tickers to be quoted by market-makers, a broker-dealer may resume quoting an OTC stock only if it has a reasonable basis under the circumstances for believing that a company’s financial statements are reasonably current and accurate, and complies with the requirements of Rule 15c2-11.[8]
The SEC has a process in place that allows anyone adversely affected by a trading suspension to file a petition seeking to terminate the suspension order.[9] The SEC may provide appropriate relief where the suspension expires while the petition is pending. These petitions should be filed with the Office of the Secretary and are directed to the Commission in the first instance, and Commission decisions may be appealed to a federal circuit court. The Commission has noted that it also has the authority to provide relief from possible consequences arising from the trading suspension, such as the loss of piggy-back eligibility.[10]
Trading suspensions have been a critical element of the Commission’s response to COVID-19. Since February 7, the Commission has suspended trading in the securities of more than 30 issuers as a result of questions about the adequacy and accuracy of coronavirus-related information. These suspensions followed a broad range of claims by issuers, including those relating to access to testing materials, developments of treatments or vaccines, and access to personal protective equipment. The Commission has also suspended trading in the stock of at least three microcap issuers whose names or ticker symbols closely resembled those of unrelated companies whose products are actually relevant to COVID-19, such as testing, N-95 masks, and videoconferencing technology, due to concerns about investor confusion, among other things.[11]
2. Enforcement Actions
A trading suspension is not a finding of fraud or misconduct.[12] In many instances, the Division of Enforcement will continue to investigate whether an issuer whose stock has been suspended from trading was engaged in potential fraud or other misconduct and, if appropriate, will recommend charges to the Commission. Because of the potential severity of the impact of this sort of misconduct on investors we are conducting these investigations on an extremely accelerated basis.
Hopeful, you do realize that DECN cannot distribute their products until they receive EUA right? So what is the point? At the time of the PR, they anticipated FDA making a decision by now so that they could distribute. They are waiting on the FDA which is out of their control, so your point is mute until FDA decision.
If they get EUA and then don't provide 100,000 kits, complain, but until then complain to the FDA if you want.
Interesting speech by Co-Director of SEC, Division of Enforcement on May 12, 2020. Trading suspensions are, by design, prophylactic. The SEC has the authority to suspend trading in a stock “if in its opinion the public interest and the protection of investors so require.”[6] The path that leads to a recommendation that the Commission order a trading suspension often starts with referrals from FINRA, tips from investors, or from the Commission staff’s own market surveillance. Trading suspensions have been a critical element of the Commission’s response to COVID-19. The Commission has also suspended trading in the stock of at least three microcap issuers whose names or ticker symbols closely resembled those of unrelated companies whose products are actually relevant to COVID-19, such as testing, N-95 masks, and videoconferencing technology, due to concerns about investor confusion, among other things.[11] A trading suspension is not a finding of fraud or misconduct.[12]
General overtone is the focus on preventing fraud during a crisis and their focus on any COVID-19 related activity. They are being aggressive and proud of being aggressive in their interventions and the fact of having suspended trading in so many companies is presented as a badge of honor. Full address at this link:
Keynote Address: Securities Enforcement Forum West 2020 by Steven Peikin, Co-Director, Division of Enforcement, May 12, 2020
A few noteworthy points, of which there are many more:
1.
2.
3.
4.
5.
So, first point, note well - from the SEC's own enforcement director, a trading suspension is not a finding of fraud or misconduct. They use it as a tool or step for sometimes further investigation. However, note, they suspended trading in 3 companies during this time just because their stock ticker symbol could be confused with another company - how fair is that?
They also admit that they are being pro-active and can suspend trading just because they feel it is in the public's interest because of their sense of information in the market-place. And because they state that a suspension is not a finding of fraud or even of misconduct, they could do it because of other people putting out mis-information in the market place or concerns over trading patterns.
So all the posts claiming the suspension was due to fraud by KB or the company go directly against the SEC's Enforcement Division's Co-Director's public statement about their recent actions, even though in many instances, it may involve fraud.
Here's the full segment of the speech from which my quotes have been taken.
C. Results
Now let me turn to some of the results we have achieved so far on behalf of investors.
1. Trading Suspensions
In our March 23 statement, Stephanie and I emphasized that the Division was “committing substantial resources to ensuring that our Main Street investors are not victims of fraud or illegal practices in these unprecedented market and economic conditions.”[5] The most visible manifestation of this commitment is the significant number of trading suspensions the Commission has ordered in the last several months. Trading suspensions are, by design, prophylactic. The SEC has the authority to suspend trading in a stock “if in its opinion the public interest and the protection of investors so require.”[6] In many instances, the Commission suspends trading when there are questions about whether public information about the issuer is accurate, adequate, or reliable.[7] Because of the importance to and potentially significant impact on investors of questions about whether public information about the issuer is accurate, adequate, or reliable, we are conducting these investigations on an accelerated basis.
The path that leads to a recommendation that the Commission order a trading suspension often starts with referrals from FINRA, tips from investors, or from the Commission staff’s own market surveillance. Because time is often of the essence, Enforcement staff engage in accelerated fact gathering and analysis, analyzing public statements by and about the issuer and reviewing trading data. In some cases, the staff may contact brokers, promoters, or others for documents or information. Where claims have been made about contracts or new products, staff may contact counter parties or others to gather facts about whether those claims are accurate. If the staff believes that a trading suspension is warranted, it makes a recommendation to the Commission for expedited consideration.
The SEC may suspend trading in any stock for up to 10 business days, after which trading may resume. For stocks that trade on an exchange, quoting may resume as soon as a suspension ends. For stocks quoted over-the-counter (OTC), however, quoting does not automatically resume after the suspension ends. Instead, a broker-dealer generally may not solicit investors to buy or sell the previously-suspended stock until certain requirements are met. Because a trading suspension that results in a break in two-way quotations for more than four business days removes the so-called “piggyback exception” that enables many OTC tickers to be quoted by market-makers, a broker-dealer may resume quoting an OTC stock only if it has a reasonable basis under the circumstances for believing that a company’s financial statements are reasonably current and accurate, and complies with the requirements of Rule 15c2-11.[8]
The SEC has a process in place that allows anyone adversely affected by a trading suspension to file a petition seeking to terminate the suspension order.[9] The SEC may provide appropriate relief where the suspension expires while the petition is pending. These petitions should be filed with the Office of the Secretary and are directed to the Commission in the first instance, and Commission decisions may be appealed to a federal circuit court. The Commission has noted that it also has the authority to provide relief from possible consequences arising from the trading suspension, such as the loss of piggy-back eligibility.[10]
Trading suspensions have been a critical element of the Commission’s response to COVID-19. Since February 7, the Commission has suspended trading in the securities of more than 30 issuers as a result of questions about the adequacy and accuracy of coronavirus-related information. These suspensions followed a broad range of claims by issuers, including those relating to access to testing materials, developments of treatments or vaccines, and access to personal protective equipment. The Commission has also suspended trading in the stock of at least three microcap issuers whose names or ticker symbols closely resembled those of unrelated companies whose products are actually relevant to COVID-19, such as testing, N-95 masks, and videoconferencing technology, due to concerns about investor confusion, among other things.[11]
2. Enforcement Actions
A trading suspension is not a finding of fraud or misconduct.[12] In many instances, the Division of Enforcement will continue to investigate whether an issuer whose stock has been suspended from trading was engaged in potential fraud or other misconduct and, if appropriate, will recommend charges to the Commission. Because of the potential severity of the impact of this sort of misconduct on investors we are conducting these investigations on an extremely accelerated basis.
Have any tweets gone out from that account?
I thought it was very interesting that DECN released a PR the day after SEC deadline for filing their evidence and arguments before the commission.
Since that data has not been posted by the SEC, we cannot read it yet, if indeed it was submitted.
However, if it was submitted on time and given to DECN as required, that means KB most likely released yesterday's PR after having read or after having been informed of the content of the SEC filing.
He would not have released the PR at this time if he feared doing so would jeopardize his case, but it may have influenced his wording, hence the reference to cybercriminals trying to discredit the company.
Or it may be that at this time KB knows that the SEC did not and is not going to pursue defending the suspension and that is why he released the PR at this time. In either case, I take it as good news.
If the SEC has chosen not to defend the trading suspension against DECN, when would they release that information?
Hope everyone's popcorn maker is heating up as the show may be about to begin.
Disappointing to see that nothing has been posted to SEC website on 550 Petition response (as there are other May 20th documents posted.
Disappointing that is, unless the SEC didn't file anything.
It was my understanding from the explanation of others that when/if the SEC files the information that they had on hand when ordering the trading suspension of DECN, that information would be posted on Sec.gov.
Are you saying that will not be posted on the SEC website?
I see that the rate of trading suspensions seemed to have slowed from the rapid pace in April where there were multiple issued the same day and not a week would pass without a new one.
Today is deadline for SEC to file first round of paperwork giving their reasons for the trading suspension. Are the documents usually posted online the same day or will we have to wait until tomorrow or later to read them?
Tomorrow we will at least know what the SEC wants to put forward as its reasons for Suspending Trading in DECN and how much weight it appears to have.
No, what makes no sense is to claim it is unethical for a doctor to use discretion when treating patients for an illness for which there is no known cure until there is a double blind clinical study.
I guess it would be more ethical for the doctor to say, "This might work, but there's no clinical study for anything to treat you, so I'm just going to have someone hold your hand and hope for the best.."
That's the attitude we claim doesn't make sense. None of the drugs being used to treat COVID-19 have passed clinical studies that you speak of, and without testing "untested" drugs, you can't have a clinical study, so the conclusion would be that clinical studies themselves are unethical.
It just doesn't make sense to take that attitude in the middle of a pandemic and criticize or call unethical the doctors trying to save people's lives using whatever they think might help and whose risk is less than the disease being treated.
I don't understand why anyone cannot see that?
Obviously is isn't all that lethal unless there is a gov conspiracy to kill many Africans and others in areas of the world plagued by malaria under the guise of giving them a "treatment" with hydroxychloroquine.
Since it is being prescribed in the US for several illnesses, do you hold that those prescriptions are unethical because of the lethal aspect of the drug, given that some or all of the illnesses it is prescribed to treat in the US are not fatal themselves?
Please use the same standard then and provide the results of a double blind clinical trial that provided the test results and showed that hydroxychloroquine was not effective in early stage COVID-19 treatment.
The FDA is not recommending it because there have not been any COVID-19 trials for it in the past, which is no surprise is it?
Glad to hear this. Friends with doctors know that there is a biased campaign against its use, while doctors with actual patients have given it early on in treatment with good results.
The "studies" referred to, like the "famous" VA "study" was not even a study, it was done after the fact, without knowledge of timing, dosage, condition of patients etc by non MD people looking at statistics. But when statistics are not part of a study, control group, etc. you can't draw the conclusions accurately.
For example, the statistics may have shown that 80% of the people at the VA that didn't die that week had eggs for breakfast, while 90% of the people who died did not have eggs for breakfast. Does that mean that if everyone who ate eggs for breakfast would not have died? No, it doesn't, but that's the type of theory you could base on statistics alone.
Other "studies" show that the hydroxycloroquine was given only when the patients had advanced conditions from the virus because they didn't want to give it earlier and it didn't help. Surprise, surprise. Advocates of the drug have pointed out and MDs knew that it was most effective when given early or immediately upon diagnosis, but because of some, there was a lot of pressure not to give it early.
Fortunately, some doctors are basing their decisions on their experience and not politicians.
But in the end, the greatest factor for the stock over the next several months is whether or not the FDA finalizes testing protocols so that they can finalize the testing in order to submit data for EUA approval of the test kits if they pass the testing.
So the SEC deal..this could possibly have another negative impact?
If testing results are good, I would expect a PR with testing results and notice of submission of testing data to FDA.
Also, the SEC will be filing their documentation for the Trading Suspension before the commission by May 20th.
Which of the above comes first, we cannot be sure.
Possible it is related to moving to the "Expert Market" portion of the Grey Market. From this board, my understanding is that the "Expert Market" portion of the Grey Market allows for greater availability of electronic orders between brokerages in order to facilitate trades.
My TD account website log in shows OTC Markets next to symbol while the trading app adds (CV EM) Caveat Emptor which is an indicator of being on the greys with no bid/ask.
if they prevail, there is no roadblock to getting off the greys. that would be the only benefit.
Already posted a PR after suspension in which it stated that testing has begun, but they are still waiting on FDA to finalize a final aspect of the testing protocol, so appears that they on waiting on the FDA over which there is no control.
Given the changing scenario, who knows what FDA is doing.
My understanding is that the 550 Petition filing and the process of hearings before the SEC could result in the reversal of the original Suspension which would then reverse the consequences of the Suspension, i.e. putting DECN back on or opening the door to a more rapid return to the OTC Pink markets from the Grey Markets.
Also if they win the petition hearings, they restore the credibility of the company in the public domain.
In either case, it forces the SEC to show its hand and the company to defend itself, not something you would normally do if you know you are guilty.
Well, the SEC document filed the other day as I understand it is just standard follow up triggered by the 550 Petition filed by DECN.
It's actually encouraging that the time frame is so quick with the SEC having to file their paperwork by May 20th and then DECN given 2 weeks to respond etc.
The SEC filing by the 20th should be an interesting read and reveal a lot of what we don't know.
i think i said a couple of weeks ago; it's never about the product. all this talk of fda this and fda that is just crap.
But illegal trading activity was not specified in the Suspension, so if that IS the reason, then the SEC's own statement of suspension is very misleading!
Can KB be held responsible by the SEC for illegal trading activity of people who are outside the company, but associated with DECN, such as the entities that have loaned the company money?
We've gone around this before, and you know very well from previous postings of the SEC's own website that they also suspend for trading activity amongst other reasons.
Curious to know, did either of the companies in today's PR by the SEC file 550 Petitions when their companies were suspended?
Now, if in fact the FDA submissions and numbers quoted for his products do not exist and he has not discussed anything with the FDA nor submitted any tests to a specialty lab for testing, then he would be a fraudster and not only that, completely delusional.
Not something I suspect based on the company having a product that uses similar base technology. Now, if the SEC wants to argue over "perfected technology" as being cause for suspension because it is so mis-leading, I'd happily testify on the basic linguistics of the various meanings of that phrase that anyone with basic 5th grade level language skills could understand even by looking up the use of "perfected" in a dictionary.
If DECN never talked to the scientists Dr. Musho and his wife, do not have a manufacturing plant etc., then you have reason for fraud in the PRs.
I suspect the real argument of the SEC has to do with stock and trading, and to that I know nothing. But if the SEC's real reason to suspend the company is based on false info fed to the SEC or other people using his PRs in a way or to promote things he has not done or paid for, then I have a problem with that.
I read the SEC's PR on the files charged and it seems to me that those situations are very different materially from the situation at hand.
Maybe I'm wrong, but right now from reading all the PRs and filings, if he has submitted test kits for testing in the USA, I don't see any real and troubling basis for the Suspension or charges based on the PRs and the product. There may be issues dealing with things outside the reasons in the SEC's official public statements which seems like an underhanded way to go about it if in fact the problem is elsewhere.
KB has always been clear in his PRs to state that they are not promoting a cure, but a test and a test in development for which they need, but hope for FDA EUA approval. Was he excited and anticipating great sales, absolutely and with reason if a 15 second kit can identify the presence of the virus instead of having to send a nasal swab to a lab for testing and get results back in 24-48 hours at the time of the release of his PRs.
Not misleading although I've seen a lot of misleadning posts on this board and elsewhere supposedly based on the PRs stating things that KB never stated.
Sorry, I didn't read anywhere in the SEC Suspension that DECN was accused of "fraud". The SEC mentioned "perfected technology" for a 15 second test that the SEC never saw and never tested most likely. If the FDA validates the test kits, then the SEC could be seen as the #1 promoter of "mis-leading information" in the marketplace.
The other issue mentioned in DECN Suspension was the forecast of 525M kits, which none of here (unless you have a tap on DECN's phone and intercept all his correspondence) know what manufacturing expansions or partnerships he may have had plans in place to do over the course of the following year.
We will see soon enough what the SEC based their suspension on, but we know their #1 public reason was not based on proven fraud.
But then maybe you work for the SEC?
If DECN gets Test Kit approval, I doubt that KB would accept any BP offer because most likely it wouldn't be anywhere near the LT value of the technology developed and in use by the company.
If DECN gets test kits approval, it changes the company. It will become nationally known and internationally more prominent and put it in a position to quickly respond with new test kits for new (and old) viruses into the future without going through all the struggles he has faced in this battle.
Could be wrong, but I suspect he will want to enjoy the victory for a long time and run his own company rather than become a BP footnote.
Thanks. Good to know.
Looks like some interesting saga installments coming up. Should be interesting what and how much the SEC files and how much it just claims it can't reveal because it would "expose" SEC practices and methods of investigation.
But we should certainly know more clearly what warranted the Suspension in their minds.
Only one week until it hits the screens... Will the SEC's initial filing of documentation be in public viewing as of May 20th?
Insights from yesterday's PR:
"While we continue to wait for the FDA to APPROVE last issue in our testing protocol, even as we have begun the testing
today's testing sources simply do not meet the requirements that are necessary for employees to keep themselves safe while also allowing employers safely to keep their businesses up and running or, in many situations, to resume operations with procedures in place that will entice employees to return to work. Immediate and accurate test results must be available.
PharmaTech Solutions "Swift Kit" testing kit is designed to provide the answers individuals and employers need. It is engineered to provide accurate results on the spot with no delay. While the FDA continues its assessment of how to move forward with this technology,
Health Advisory Alert!
We are aware that several people were loading up and eating popcorn while celebrating DECN's "imminent" implosion. We urge caution when eating that popcorn during the current rise in the company's stock valuation as serious health risks are involved.
Since you hold fast to the theory that this is all a scam and the product of a sociopath liar, please enlighten us with facts if possible, if not, with your reasons for the following:
1. What did DECN submit to the FDA for review in order to get a FDA number etc?
2. If everything is a lie, I imagine the SEC Enforcement squad, with all their gov and legal resources, would have amble evidence, so why did they list as reasons, 1) 15 seconds for the test result (when they most likely didn't acquire and test a kit), refer to the weak argument of "perfected technology" and then 2) a future forecast of 520M kits sold, instead of filing criminal charges and exposing the company for not having a test kit at all, lying in sworn documents filed on May 7th in the 550 Petition etc.?
Do you have inside knowledge or any proof to base your statement on that this is all a scam? Can you state as fact that the test kit doesn't exist and that the FDA just logged paperwork and has set up protocols for testing just based on nonsense submitted by DECN?
What hard facts can you present?
Buyers today not going away.
Nice day today. Very reassuring to see what most likely is new interest coming in, even in spite of a grey market standing.
I agree the SEC is listening and KB knows that very well at this point. So, for him to agree to issue a PR today, after making a sworn statement to SEC that he has not sold any shares during these past months is to make clear this is not a "pump and dump" scheme.
He knows the SEC is listening and he has restated 15 seconds for test to give results and working with FDA to finalize testing. Sounds like they may have completed a portion of the FDA protocols and the FDA may be asking for more.
What is clear, you don't issue a PR today and restate the things you "supposedly" got suspended for before unless you have data to back up your position.
If DECN test kits pass FDA testing and are approved, it will be the SEC itself and its Trading Suspension reasons that have put the most "mis-leading" information about the kits and company into the market as they have a national pulpit.
Why hasn't KB made a statement to investors with regards to the sec, reassuring them he has not been in violation. Have we heard from him publically since the sec suspension?
And you can message the WH directly:Contact the WH
Send them a msg to have Pence look into Decision Diagnostics and the possibility of using the test kits if they pass FDA guidelines.
Hey check out SEC.gov website under the COVID-19 Task Force response listing of actions against companies. DECN is not in the list. Wasn't it in the list before?
SEC Enforcement listings
Click on the tab to expand: [+]Enforcement, Examinations and Investor Education
DECN is no longer listed here. Was it removed?
However, it is still listed under the Suspensions listings, but interesting that it is not under the COVID-19 related actions.
Suspensions