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ot:spread the word..tonight..The timing is extraordinary. This Sunday night, the "Short Seller Wars" hits the airwaves for two hours, as "Corporate Strategies with Tim Connolly," on 275 radio stations and live on the web at BusinessTalkRadio (www.businesstalkradio.net) from 8 p.m. to 10 p.m., will be airing the views of those on both sides of an issue that has now embroiled the Dow Jones (NYSE: DJ) Newswires, Reuters (NASDAQ: RTRSY), the Depository Trust Corp., several major brokerages and some 60 public companies - and that is said to be on the "to do" list for new SEC Chair William Donaldson. Co-hosts are Scott Eisler and Michael Kravitz, Senior Vice Presidents of Wachovia Securities, a unit of Wachovia Corporation (NYSE:WB).
Connolly's special show is co-sponsored by the CEO Council, Investrend Broadcast (www.investrendbroadcast.com) and Princeton Research. In addition to live commentary from CEOs, attorneys and professionals embroiled in the controversy, Connolly said he and the guests will take live questions and comments from market makers, financiers, brokers and individual investors at 1-877-266-7465.
Connolly is CEO of Merchant Banker Corporate Strategies, Inc., and the Executive Producer of
the show is broadcast news veteran Jan Carson, an award winning journalist with more than 20 years experience as a top rated television news anchor and reporter for network affiliates of NBC, a General Electric (NYSE: GE) unit, ABC, a Disney (NYSE: DIS) unit and CBS, a Viacom (NYSE: VIA.b) unit. Recent guests have included former SEC Chairman Arthur Levitt, former Hewlett-Packard (NYSE: HP) unit Compaq CEO Eckard Pfieffer, Money Manager Louis Navellier, and many others.
Noted Economist Mike King of Princeton Research provides live technical analysis for the show and hosts the "Not For Widows and Orphans" segment.
The complete list of the 62 companies now associated on one side or another of the naked short seller controversy includes A.G. Edwards, Inc. (NYSE: AGE), Federal Agricultural Mortgage Corp. "Farmer Mac" (NYSE: AGM), Allied Capital (NYSE: ALD), American Motorcycle (OTC: AMCYV), American International Industries (OTCBB: AMIN), Ameri-Dream (OTCBB: AMDR), Bluebook International (OTCBB: BBIC), Blue Industries (OTCBB: BLIIV), Bentley Communications (OTCBB: BTLY), Biocurex (OTCBB: BOCX);
Also, Critical Home Care (OTCBB: CCLH), Composite Holdings (OTC: COHIA), Edgetech Services (OTCBB: EDGH), Endovasc Ltd. (OTCBB: ENVC), Enviro-Energy Corporation (OTCBB: ENGY), Environmental Products & Technologies (OTC: EPTC), FreeStar Technologies (OTCBB: FSTI), GeneMax Corp. (OTCBB: GMXX), Global Path (OTCBB: GBPI), Goldman, Sachs & Co. (NYSE: GS), Group Management (OTCBB: GPMT), Hop-On (OTC: HPON), H-Quotient, Inc., (OTCBB: HQNT), International Biochem (OTCBB: IBCL), Intergold Corp. (OTCBB: IGCO), InternetStudios, Inc. (OTCBB: ISTO), ITIS Holdings (OTCBB: ITHH), Jag Media Holdings (OTCBB: JGMHA), Knight Securities, LP (NASDAQ: NITE), Lair Holdings (OTCBB: LAIR), MBIA (NYSE: MBI);
Also, MetaSource Group, Inc. (OTCBB: MTSR), M. H. Myerson & Co., Inc. (NASDAQ: MHMY), Midastrade.com (OTC: MIDS), Make Your Move (OTCBB: MKMV), MSM Jewelry Corp. (OTC: MSMJ), Nutra Pharmaceutical (OTCBB: NPHC), Nutek (OTCBB: NUTK), Pitts & Spitts (OTCBB: PSPP), Sales OnLine Direct (OTCBB: PAID), Pacel Corp. (OTCBB: PCEL), Presidential Air Corp. (OTCBB: PDAR), PayStar Corporation (OTCBB: PYST), Petrogen Corp. (OTCBB: PTGC), PrimeHoldings.com, Inc. (OTC: PRIM), Reed Holdings (OTC: RDHC), Rocky Mountain Energy Corp. (OTCBB: RMEC), Sedona Corp. (OTCBB: SDNA), Sionix Corp. (OTCBB: SINX);
Also, Soundcomm Technologies (OTC: STEH), Sports Resorts International (NASDAQ: SPRI), Technology Logistics (OTC: TLOS), Ten Stix, Inc. (OTCBB: TNTI), Tidelands Oil (OTCBB: TIDE), Toronto-Dominion (NYSE: TD), Trezac Corp. (OTCBB: TREZV), US West Homes (OTCBB: USWH), Vega Atlantic (OTCBB: VATL), vFinance, Inc. (OTCBB: VFIN), Vtex Energy (OTCBB: VXEN) and Wizzard Software (OTCBB: WIZD).and WorldTradeShow.com (OTC: WTSW).
Clickable links for FinancialWire news are at www.financialwire.net. For FinancialWire audio news, click on partner ON24 at www.on24news.com
URL: www.financialwire.net
guy..are they going to reverese merge nova into hnws, thus making it a publicly traded company? is this why thew same individuals are involved in ibcl/nova and hnws?
guy..what happend to sdna is very similar to what this wilson and jackson llc did do other companies they involved themselves with!! does mr moses have a clue of all of this?
guy and all longs must read this..ot:this looks very familiar...United States District Court
Southern District Of New York
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Securities and Exchange Commission,
Plaintiff,
v.
RHINO ADVISORS, INC.
and THOMAS BADIAN,
Defendants.
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: Civil Action No. __________
Complaint
Plaintiff Securities and Exchange Commission ("SEC" or the "Commission") alleges:
Nature of the Action
1. This case involves manipulative trading in the common stock of Sedona Corporation ("Sedona") by Rhino Advisors, Inc. ("Rhino"), an unregistered investment adviser based in Manhattan, NY, that manages investments for two foreign entities. Rhino's president, who directed all of its trading activities, is Thomas Badian ("Badian"). Rhino and Badian contributed to a decline in the price of Sedona's stock price by engaging in large scale short selling.
2. Rhino and Badian manipulated Sedona's stock price to enhance a client's economic interests in a $3 million convertible debenture (the "Debenture") that Sedona issued on November 22, 2000. Sedona issued the Debenture to one of Rhino's clients. The Debenture, negotiated by Badian, prohibited Rhino's client from selling short Sedona's stock short while the Debenture "remained issued and outstanding." Despite this contractual provision, Rhino engaged in extensive short selling and pre-arranged trading on behalf of its client prior to exercising the conversion rights under the Debenture. This short selling increased the supply of shares in the market and depressed Sedona's stock price. As a result of the depressed stock price, Rhino's client received more shares from Sedona when it exercised its conversion rights under the Debenture than it otherwise would have received. Following the conversions, Rhino engaged in wash sales and matched orders to cover the short positions and conceal the client's involvement in the scheme.
Jurisdiction and Venue
3. This Court has jurisdiction over this action pursuant to Sections 20, and 22 of the Securities Act of 1933 ("Securities Act") [15 U.S.C. §§ 77t and 77v] and Sections 21(d), 21(e) and 27 of the Securities Exchange Act of 1934 ("Exchange Act") [15 U.S.C. §§ 78u and 78aa].
4. Rhino and Badian, directly or indirectly, have made use of the means or instrumentalities of interstate commerce, or of the mails, or the facilities of a national securities exchange in connection with the transactions, acts, practices and courses of business alleged herein.
5. Rhino's principal place of business is located in this District. Badian resides in this District and conducts business in this District.
6. Rhino and Badian will, unless restrained and enjoined, continue to engage in the acts, practices and courses of business alleged herein, or in transactions, acts, practices and courses of business of similar purport and object.
Defendants Rhino Advisors, Inc. and Thomas Badian
7. Rhino is an unregistered investment advisor. Rhino is controlled by Badian, its president. Rhino manages funds for two overseas clients. Generally, it caused its clients to purchase debt securities directly from issuers, often securities convertible into common stock. On behalf of its clients, Rhino subsequently traded the common stock, often selling it short before converting the debt securities.
8. Badian, age 33, resides in New York. Badian controls all of Rhino's operations with the assistance of a small staff of employees.
Other Entities and Persons
9. Amro International, S.A. (the "Client") is a Panamanian corporation, headquartered in Zurich, Switzerland, that provides convertible and equity line financing to companies in need of capital. Badian and Rhino acted as investment advisers for the Client.
10. Sedona Corporation is a Pennsylvania corporation headquartered in King of Prussia, Pennsylvania. Sedona produces and distributes customer resource management software for small to mid-size businesses. Sedona's stock is registered pursuant to section 12(g) of the Exchange Act and is listed for trading on the Nasdaq SmallCap Market. Sedona is one of many issuers to whom Rhino's clients provided financing.
Relevant Facts
Background
11. On November 22, 2000, the Client and Sedona entered into a Convertible Debenture and Warrants Purchase Agreement (the "Purchase Agreement"). Under the terms of the Purchase Agreement, the Client provided Sedona $2.5 million in financing as consideration for Sedona's issuance of a $3 million 5% Convertible Debenture (the "Debenture"). The Debenture obligated Sedona to pay the Client $3 million on March 22, 2001. The Debenture granted the Client the right to convert all or any portion of the Debenture into Sedona common stock at a price equal to 85% of "the volume weighted average price [VWAP] of the Common Stock on the [Nasdaq Small Cap Market] during the five trading days immediately prior to the Closing Date or Conversion Date, as the case may be." Based on this formula, the lower Sedona's stock price during the five-day period prior to the Client's exercise of its conversion rights, the more shares the Client would receive on conversion. The Purchase Agreement expressly prohibited the Client from selling short shares of Sedona's stock while the Debenture remained "issued and outstanding." Sedona filed the Purchase Agreement and Debenture on its Form 8-K with the Commission on November 28, 2000.
Badian and Rhino Engaged in Short Selling that Depressed the Price of Sedona's Stock
12. Between March 1 and March 29, 2001, Rhino and Badian directed a series of short sales of Sedona stock through an account at a U.S. broker-dealer held in the Client's name and controlled by Badian.
13. At the time, the Client owned no Sedona stock. Rhino did not deliver the shares that it was selling short by settlement day and the broker neither bought nor borrowed stock to cover these sales.
14. In violation of the Purchase Agreement's prohibition against short selling, Rhino placed orders with the U.S. broker-dealer, who thereafter placed sell orders with another broker-dealer (the "Cooperating Broker-Dealer") in Sedona stock. Each day in March 2001, the Cooperating Broker-Dealer executed sales of Sedona stock in its proprietary account. The Cooperating Broker-Dealer often placed these sales through various electronic communications networks (ECNs), which provide anonymity to traders wishing to conceal their identity from the market. At the time of these sales, the Cooperating Broker-Dealer did not possess any shares of the Sedona stock that it was selling.
15. The Cooperating Broker-Dealer covered its short sales through the ECN's by purchasing the shares from Rhino's client's account at the U.S. broker-dealer. The Cooperating Broker-Dealer executed the purchases after the sales had been effected through the ECN's and after the market had closed. The Cooperating Broker-Dealer would purchase the shares at prices slightly below the average prices of the sales through the ECN's, thus ensuring itself a profit. As a consequence, these purchases were not printed to the NASDAQ tape and were not included in reported volume for the day.
16. Because the Client owned no Sedona stock, these transactions resulted in short positions in the Client's account. However, because its sales were not reported or printed to the NASDAQ tape, the short sales were not reported to the market.
17. Rhino continued to execute short sales in the Client's account, despite repeated failure to deliver shares by settlement date. In sum, in March 2001, through Badian's trading, the Client sold short 872,796 shares of Sedona stock. Of those shares, the Client sold short 785,536 shares prior to its first exercise of its conversion rights under the Debenture. These failures to deliver triggered clearing failures at Depository Trust and Clearing Corporation ("DTCC"). As a result of the clearing failures, on March 22, 2001, the National Association of Securities Dealers ("NASD") placed a short restriction on Sedona's stock, which required that any future sales of Sedona would be subject to a mandatory close-out if there was a failure to deliver the securities after 10 days.1
18. After the NASD placed the short restriction on Sedona's stock, Rhino sold short Sedona shares from an account he controlled on behalf of the Client at a Canadian broker-dealer. Canadian broker-dealers are not members of the NASD and are not subject to its short sale restrictions. Beginning on March 30 and continuing through mid-April 2001, Rhino executed short sales through the Canadian account.
19. Rhino sold short 350,500 shares in the Canadian account during this period. The shares were not delivered by settlement date. The Canadian broker-dealer neither bought nor borrowed stock to cover these sales and continued executing short sales. Rhino's short selling in the Canadian account continued to put downward pressure on Sedona's stock price. Between March 1 and April 16, Rhino, through the two accounts it controlled on behalf of the Client, accumulated an open and undelivered short position in Sedona stock of 1,193,296 shares.
Rhino's Short Selling Increased the Number of Shares the Client Received on Conversion
20. Rhino's short selling through the Client's accounts depressed Sedona's stock price during the five day trading periods prior to each conversion on which the VWAP of Sedona's stock was calculated. Between January 26 and March 1, 2001, Sedona's average closing price was $1.43 per share. By March 23, 2001, after three weeks of Rhino's constant short selling, Sedona's stock had declined to $.75 per share. On March 27, 2001, Badian, on behalf of the Client, tendered the first notice of conversion under the Debenture and received 127,517 shares of Sedona stock at a VWAP of $.9384 and a conversion price of $.79764. During the five trading days prior to March 27, Badian's trading averaged in excess of 25% of all shares traded during the period.
21. Based on the conversion formula in the Debenture, the lower the VWAP, the more shares the Client received from Sedona on conversion. Between March 27 and April 16, 2001, the Client exercised its conversion rights under the Debenture on three more occasions. On April 5, 2001, the Client exercised its right to receive 395,337 shares of Sedona stock at a VWAP of $.75762 and a conversion price of $.64398. On April 10, the Client exercised its right to receive 761,342 shares of Sedona stock at a VWAP of $.7884 and a conversion price of $.67014. On April 16, 2001, the Client exercised its right to receive 329,988 shares of Sedona stock at a VWAP of $.91022 and a conversion price of $.77369. As a result of the sustained sell pressure placed on Sedona's stock price, the VWAP for each of the Client's conversions in April was lower than the VWAP for its first conversion on March 27, which increased the number of conversion shares that the Client received from Sedona under the Debenture.
22. Rhino deposited the conversion shares that the Client received from Sedona into another account he controlled at a second U.S. broker-dealer designated to receive the conversion shares (the "Conversion Shares Account"). By April 16, 2001, Rhino received 1,614,184 shares of Sedona stock on behalf of the Client in the Conversion Shares Account. The majority of these conversion shares were used to close the open and undelivered short position at the first U.S. broker-dealer where the short selling occurred and to significantly reduce the open and undelivered short position at the Canadian broker-dealer.
23. Instead of delivering the shares directly to broker-dealers where the short sales occurred, Rhino effected wash sales and matched orders out of the Conversion Shares Account to the short selling accounts. This created the appearance that the accounts that had short positions were purchasing shares in the open market and not covering short positions with shares obtained through conversion of the debenture. On at least ten occasions during April, 2001, Badian directed transactions involving no change in beneficial ownership of shares of Sedona stock or placed buy orders for shares while simultaneously placing sell orders of substantially the same size and price.
24. On May 1, 2001, Badian exercised the Client's right to receive 261,587 shares of Sedona stock at a VWAP of $.94474 and a conversion price of $.80303. On May 15, 2001, Badian exercised the Client's right to receive 303,399 shares of Sedona stock at a VWAP of $1.19 and a conversion price of $1.01. Badian continued to engage in short selling in May, selling 25,000 shares in one account and 560,800 shares through another. Badian and Rhino failed to deliver these shares to the accounts were the sales occurred, thereby triggering clearing failures at DTCC.
The Client Profited From Badian's Scheme
25. Rhino's trading allowed the Client to profit from the scheme in at least two ways. First, the short sales locked in a sale price for the Sedona stock that was higher than the conversion price for the shares ultimately used to cover the open short positions. Second, Rhino's short sales increased the supply of Sedona shares in the market and depressed the price. As a result of the depressed market price, the Client converted the Debenture to a greater number of shares of Sedona stock, which were already discounted to the market, and which it then used to cover its previous short sales made at higher prices.
Rhino Failed To Respond To A Commission Order
26. Rhino failed to tender a sworn response to an order issued pursuant to Section 21(a) of the Exchange Act [15 U.S.C. § 78u].
First Claim for Relief
Violations of Section 10(b) of the Exchange Act and Rule 10b-5 Promulgated Thereunder
[15 U.S.C. § 78j(b) and 17 C.F.R. § 240.10b-5]
By Defendants Rhino And Badian
27. Paragraphs 1 through 26 are realleged and incorporated herein by reference.
28. From at least March 2001 through May 2001, Defendants Rhino and Badian, directly and indirectly, by use of the means and instrumentality of interstate commerce, and of the mails in connection with the purchase or sale of the securities, as described in this Complaint, have been, knowingly, willfully or recklessly: (a) employing devices, schemes or artifices to defraud; (b) making untrue statements of material facts and omitting to state material facts necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; and/or (c) engaging in acts, practices and courses of business which have operated, are now operating and will operate as a fraud upon the purchasers of such securities.
29. By reason of the activities described in the paragraphs above, defendants Rhino and Badian directly or indirectly, have violated and, unless enjoined, will continue to violate Section 10(b) of the Exchange Act, 15 U.S.C. § 78j(b), and Rule 10b-5, 17 C.F.R. § 240. 10b-5, thereunder.
Second Claim for Relief
Violations of Section 17(a)(1) of the Securities Act
[15 U.S.C. § 77q(a)]
by Defendants Rhino and Badian
30. Paragraphs 1 through 29 are realleged and incorporated herein by reference.
31. From at least March 2001 through May 2001, Defendants Rhino and Badian, directly and indirectly, by use of the means or instruments of transportation or communication in interstate commerce and by use of the mails, in the offer or sale of securities, as described in this Complaint, have been, knowingly, willfully or recklessly employing devices, schemes or artifices to defraud.
32. By reason of the activities described in the paragraphs above, Defendants Rhino and Badian directly and indirectly, have violated and, unless enjoined, will continue to violate Section 17(a)(1) of the Securities Act, 15 U.S.C. § 77q(a)(1).
Third Claim for Relief
Defendant Rhino Violated the Commission's Order Lawfully Issued Pursuant to Section 21(a) of the Exchange Act
[15 U.S.C. § 77u(a)]
33. Paragraphs 1 through 32 are realleged and incorporated herein by reference.
34. On June 17, 2002, the Commission lawfully issued an order pursuant to Section 21(a) of the Exchange Act to Rhino.
35. Rhino failed to comply with the terms of the Order and has therefore violated the Order.
PRAYER FOR RELIEF
WHEREFORE, Plaintiff SEC respectfully requests that this Court enter a judgment:
(i) permanently enjoining Defendants Rhino Advisors, Inc. and Thomas Badian from violating Section 10(b) of the Exchange Act [15 U.S.C. §§ 78j(b)], and Rule 10b-5 thereunder [17 C.F.R. §§ 240.10b-5 ];
(ii) permanently enjoining Defendants Rhino Advisors, Inc. and Thomas Badian from violating Section 17(a)(1) of the Securities Act of 1933 [15 U.S.C. § 77q(a)];
(iii) ordering Defendants Rhino Advisors, Inc. and Thomas Badian to pay, on a joint and several basis, a civil money penalty under Section 21(a) of the Exchange Act [15 U.S.C. § 78u] in the amount of $1 million U.S. dollars;
(iv) ordering Defendant Rhino Advisors to comply with the Commission's order, issued pursuant to Section 21(a) [15 U.S.C. § 78u] of the Exchange Act, directing it to provide sworn answers to the questions directed to it; and
(v) granting such other relief as this Court may deem just and appropriate.
Respectfully submitted,
_________________________
Thomas C. Newkirk (TN7271)
James M. McHale (JM8286)
James T. Coffman
Melissa A. Robertson
Christopher C. Ehrman
Counsel for Plaintiff
Securities and Exchange Commission
Mail Stop 9-11
450 Fifth Street, N.W.
Washington, D.C. 20549
(202) 942-4588 (McHale)
(202) 942-9581 (fax)
Dated: Washington, D.C.,
February 26, 2003
Endnotes
1 Section 11830 of the NASD's Uniform Practice Code requires that a short seller's broker-dealer must close out a short sale of a specific security 10 days after normal settlement date if the client does not deliver the shares. Securities subject to close-out requirement are those with an aggregate "clearing" short position of 10,000 shares or more that equals or exceeds one half of one percent of the total shares outstanding. The NASD will identify these securities daily based on data from the DTCC and compile a "restricted list." Any subsequent short-sale transaction in a security on the list that is not completed by delivery of shares within the prescribed time frames will be subject to mandatory close-out if a "fail-to-deliver" situation exists 10 days after normal settlement date.
http://www.sec.gov/litigation/complaints/comp18003.htm
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Home / Previous Page Modified: 02/27/2003
appears the address of this beneficial owner of healthcare networks sol owns the domain name for novabiogenetics!! can anyone explain the relationaship that exists with ibcl and this comapny that now filed a statement of beneficial ownership with hnws and owns the domain for nova? how are they connected with ibcl?
Company Filings
HEALTHCARE NETWORK SOLUTIONS INC
Form: SC 13G Filing Date: 2/24/2003 Filing Index
SELECT FONT SIZE 1=smallest2=smaller3=larger4=largest CLICK THE 'ENTER' BUTTON
TYPE: SC 13G OTHERDOC
SEQUENCE: 1
FILENAME: schedule13gckern.txt
DESCRIPTION: SCHEDULE 13G
OTHERDOC AVAILABLE Series=schedule13gckern.txt Ver="": Document is copied.
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hours per response......11
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. 1)1
Healthcare Network Solutions, Inc.
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(Name of Issuer)
Warrants to purchase Issuer's $.0001 par value common stock
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(Title of Class of Securities)
42220D 10 7
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(CUSIP Number)
February 15, 2003
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(Date of Event Which Requires Filing of this Statement)
1 In accordance with Rule 13d-3(d)
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
[ ] Rule 13d-1(b)
[X] Rule 13d-1(c)
[ ] Rule 13d-1(d)
* The remainder of this cover page shall be filled out for the reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
CUSIP No. 42220D 10 7
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Christopher Kern
................................................................
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [ ]
(b) [X]
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3. SEC Use Only
................................................................
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4. Citizenship or Place of Organization
U.S.A.
................................................................
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5. Sole Voting Power 1,807,100 (A)
Number of Shares ----------------------------------------------
Beneficially Owned 6. Shared Voting Power -0-
by Each Reporting ----------------------------------------------
Person With 7. Sole Dispositive Power 1,807,100
----------------------------------------------
8. Shared Dispositive Power -0-
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9. Aggregate Amount Beneficially Owned by Each Reporting Person
Warrant to purchase up to 1,000,000 shares of Issuer's $.0001 par value
common stock and 807,100 shares of common stock remaining from exercise
of 1,000,000 options at $.05 per share on March 26, 2002.
.......................................................................
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10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares
(See Instructions)
.......................................................................
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11. Percent of Class Represented by Amount in Row (9)
7.84%
................................................................
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12. Type of Reporting Person (See Instructions)
** Shares of common stock as of November 1, 2002 22,046,062
Maximum shares to be issued upon option exercise 1,000,000
-----------
Total 23,046,062
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(A) Sole voting and dispositive power will only occur as to 1,000,000 if
and to the extent common shares are issued pursuant to option exercise
at $1.00 per share.
2
Item 1
(a) Name of Issuer:
Healthcare Network Solutions, Inc.
............................................................
(b) Address of Issuer's Principal Executive Offices:
8383 Dunwoody Place, Atlanta, Georgia 30350
............................................................
Item 2
(a) Name of Person Filing:
Christopher Kern
............................................................
(b) Address of Principal Business Office or, if none, Residence:
1175 Walt Whitman Road, Suite 100
Melville, New York 11747
............................................................
(c) Citizenship:
U.S.A.
............................................................
2(d) Title of Class of Securities:
Warrants to purchase up to 1,000,000 shares of Issuer's $.0001 par
value common stock and 807,100 shares of common stock remaining from
earlier exercise of 1,000,000 options. See No. 9
.......................................................................
2(e) CUSIP Number:
42220D 10 7
............................................................
Item 3 If this statement is filed pursuant toss.ss.240.13.d-1(b) or
240.13d-2(b) or (c), check whether the person filing is a:
(a) [ ] Broker or dealer registered under Section 15 of the Act
(15 U.S.C. 78c)
(b) [ ] Bank as defined in Section 3(a)(6) of the Act (15 U.S.C. 78c)
(c) [ ] Insurance Company as defined in Section 3(a)(19) of the Act
(15 U.S.C. 78c)
(d) [ ] Investment company registered under Section 8 of the Investment
Company Act of 1940 (15 U.S.C. 80a-8)
(e) [ ] An investment adviser in accordance with
ss.240.13d-1(b)(1)(ii)(E)
(f) [ ] An employee benefit plan or endowment fund in accordance with
ss.240.13d-1(b)(1)(ii)(F)
(g) [ ] A parent holding company or control person in accordance with
ss.240.13d-1(b)(1)(ii)(G)
(h) [ ] A savings association as defined in Section 3(b) of the Federal
Deposit Insurance Act (12 U.S.C. 1813)
3
(i) [ ] A church plan that is excluded from the definition of an
investment company under Section 3(C)(14) of the Investment
Company Act of 1940 (15 U.S.C. 80a-3)
(j) [ ] Group, in accordance withss.240.13d-1(b)(1)(ii)(J)
Item 4 Ownership
Provide the following information regarding the aggregate number and
percentage of the class of securities of the Issuer identified in
Item 1.
(a) Amount beneficially owned:
1,807,100 inclusive of shares underlying 1,000,000 exercisable options
to purchase a like number of Issuer's $.0001 par value common stock
which shares may be acquired in accordance with Rule 13d-3(d)(1)(i)(A)
.......................................................................
(b) Percent of Class:
7.84%
............................................................
(c) Number of shares as to which the person has:
1,807,100
............................................................
(i) Sole power to vote or to direct the vote:
1,807,100
..............................................................
(ii) Shared power to vote or to direct the vote:
-0-
..............................................................
(iii) Sole power to dispose or to direct the disposition of:
1,807,100, inclusive of 1,000,000 shares subject to presenting
exercisable options at $1.00 per share.
..............................................................
(iv) Shared power to dispose or to direct the disposition of:
-0-
..............................................................
Item 5 Ownership of Five Percent or Less of a Class
If this statement is being filed to report the fact that as of the date
hereof the reporting person has ceased to be the beneficial owner of
more than five percent of the Class of securities, check the
following [ ]
Item 6 Ownership of More than Five Percent on Behalf of Another Person
If any other person is known to have the right to receive or the power
to direct the receipt of dividends from, or the proceeds from the sale
of such securities, a statement to that effect should be included in
response to this item, and, if such interest relates to more than five
percent of the class, such person should be identified. A listing of
the shareholders of an investment company registered under the
Investment Company Act of 1940 or the beneficiaries of employee benefit
plan, pension fund or endowment fund is not required.
4
Item 7 Identification and Classification of the Subsidiary Which Acquired the
Security Being Reported on By the Parent Holding Company or Control
Person
If a parent holding company or Control person has filed this schedule,
pursuant to Rule 13d-1(b)(1)(ii)(G), so indicate under Item 3(g) and
attach an exhibit stating the identity and the Item 3 classification of
the relevant subsidiary. If a parent holding company or control person
has filed this schedule pursuant to Rule 13d-1(c) or Rule 13d-1(d),
attach an exhibit stating the identification of the relevant
subsidiary.
Item 8 Identification and Classification of Members of the Group
If a group has filed this schedule pursuant to
ss.240.13d-1(b)(1)(ii)(J), so indicate under Item 3(j) and
attach an exhibit stating the identity and Item 3 classification of
each member of the group. If a group has filed this schedule pursuant
to ss.240.13d-1(c) or ss.240.13d-1(d), attach an exhibit stating the
identity of each member of the group.
Item 9 Notice of Dissolution of Group
Notice of dissolution of a group may be furnished as an exhibit stating
the date of the dissolution and that all further filings with respect
to transactions in the security reported on will be filed, if required,
by members of the group, in their individual capacity. See Item 5.
Item 10 Certification
(a) The following certification shall be included if the statement is filed
pursuant toss.240.13d-1(b):
By signing below I certify that, to the best of my knowledge
and belief, the securities referred to above were acquired and
are held in the ordinary course of business and were not
acquired and are not held for the purpose of or with the
effect of changing or influencing the control of the Issuer of
the securities and were not acquired and are not held in
connection with or as a participant in any transaction having
that purpose or effect.
(b) The following certification shall be included if the statement is filed
pursuant toss.240.13d-1(c):
By signing below I certify that, to the best of my knowledge
and belief, the securities referred to above were not acquired
and are not held for the purpose of or with the effect of
changing or influencing the control of the Issuer of the
securities and were not acquired and are not held in
connection with or as a participant in any transaction having
that purpose or effect.
5
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
February 14, 2003
------------------
Date
/s/ Christopher Kern
--------------------
Signature
Christopher Kern
--------------------
Name/Title
The original statement shall be signed by each person on whose behalf the
statement is filed or his authorized representative. If the statement is signed
on behalf of a person by his authorized representative other than an executive
officer or general partner of the filing person, evidence of the
representative's authority to sign on behalf of such person shall be filed with
the statement, provided, however, that a power of attorney for this purpose
which is already on file with the Commission may be incorporated by reference.
The name and any title of each person who signs the statement shall be typed or
printed beneath his signature.
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See ss.240.13d-7 for other
parties for whom copies are to be sent.
Attention: International misstatements or omissions of fact constitute Federal
criminal violations
(See 18 U.S.C. 1001)
6
isnt this address connected with ibcl?
1175 walt whitman rd suite 100
melville new york
appears this company internet finance international owns the domain name for novabiogenetics!! anyone know why?
LOOK AT THE ADDRESS BELOW AND TELL ME WHY NOVABIOGENETICS DOMAIN IS OWNED BY THIS INDIVIDUAL.....
http://www.register.com/whois-results.cgi?5574d76880cf40ffdc68784772d7294e2a693d0a7e599689efd7f60317...
read below how cd/shorting works..ot:very relevant market news...ot:this looks very familiar...United States District Court
Southern District Of New York
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Securities and Exchange Commission,
Plaintiff,
v.
RHINO ADVISORS, INC.
and THOMAS BADIAN,
Defendants.
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: Civil Action No. __________
Complaint
Plaintiff Securities and Exchange Commission ("SEC" or the "Commission") alleges:
Nature of the Action
1. This case involves manipulative trading in the common stock of Sedona Corporation ("Sedona") by Rhino Advisors, Inc. ("Rhino"), an unregistered investment adviser based in Manhattan, NY, that manages investments for two foreign entities. Rhino's president, who directed all of its trading activities, is Thomas Badian ("Badian"). Rhino and Badian contributed to a decline in the price of Sedona's stock price by engaging in large scale short selling.
2. Rhino and Badian manipulated Sedona's stock price to enhance a client's economic interests in a $3 million convertible debenture (the "Debenture") that Sedona issued on November 22, 2000. Sedona issued the Debenture to one of Rhino's clients. The Debenture, negotiated by Badian, prohibited Rhino's client from selling short Sedona's stock short while the Debenture "remained issued and outstanding." Despite this contractual provision, Rhino engaged in extensive short selling and pre-arranged trading on behalf of its client prior to exercising the conversion rights under the Debenture. This short selling increased the supply of shares in the market and depressed Sedona's stock price. As a result of the depressed stock price, Rhino's client received more shares from Sedona when it exercised its conversion rights under the Debenture than it otherwise would have received. Following the conversions, Rhino engaged in wash sales and matched orders to cover the short positions and conceal the client's involvement in the scheme.
Jurisdiction and Venue
3. This Court has jurisdiction over this action pursuant to Sections 20, and 22 of the Securities Act of 1933 ("Securities Act") [15 U.S.C. §§ 77t and 77v] and Sections 21(d), 21(e) and 27 of the Securities Exchange Act of 1934 ("Exchange Act") [15 U.S.C. §§ 78u and 78aa].
4. Rhino and Badian, directly or indirectly, have made use of the means or instrumentalities of interstate commerce, or of the mails, or the facilities of a national securities exchange in connection with the transactions, acts, practices and courses of business alleged herein.
5. Rhino's principal place of business is located in this District. Badian resides in this District and conducts business in this District.
6. Rhino and Badian will, unless restrained and enjoined, continue to engage in the acts, practices and courses of business alleged herein, or in transactions, acts, practices and courses of business of similar purport and object.
Defendants Rhino Advisors, Inc. and Thomas Badian
7. Rhino is an unregistered investment advisor. Rhino is controlled by Badian, its president. Rhino manages funds for two overseas clients. Generally, it caused its clients to purchase debt securities directly from issuers, often securities convertible into common stock. On behalf of its clients, Rhino subsequently traded the common stock, often selling it short before converting the debt securities.
8. Badian, age 33, resides in New York. Badian controls all of Rhino's operations with the assistance of a small staff of employees.
Other Entities and Persons
9. Amro International, S.A. (the "Client") is a Panamanian corporation, headquartered in Zurich, Switzerland, that provides convertible and equity line financing to companies in need of capital. Badian and Rhino acted as investment advisers for the Client.
10. Sedona Corporation is a Pennsylvania corporation headquartered in King of Prussia, Pennsylvania. Sedona produces and distributes customer resource management software for small to mid-size businesses. Sedona's stock is registered pursuant to section 12(g) of the Exchange Act and is listed for trading on the Nasdaq SmallCap Market. Sedona is one of many issuers to whom Rhino's clients provided financing.
Relevant Facts
Background
11. On November 22, 2000, the Client and Sedona entered into a Convertible Debenture and Warrants Purchase Agreement (the "Purchase Agreement"). Under the terms of the Purchase Agreement, the Client provided Sedona $2.5 million in financing as consideration for Sedona's issuance of a $3 million 5% Convertible Debenture (the "Debenture"). The Debenture obligated Sedona to pay the Client $3 million on March 22, 2001. The Debenture granted the Client the right to convert all or any portion of the Debenture into Sedona common stock at a price equal to 85% of "the volume weighted average price [VWAP] of the Common Stock on the [Nasdaq Small Cap Market] during the five trading days immediately prior to the Closing Date or Conversion Date, as the case may be." Based on this formula, the lower Sedona's stock price during the five-day period prior to the Client's exercise of its conversion rights, the more shares the Client would receive on conversion. The Purchase Agreement expressly prohibited the Client from selling short shares of Sedona's stock while the Debenture remained "issued and outstanding." Sedona filed the Purchase Agreement and Debenture on its Form 8-K with the Commission on November 28, 2000.
Badian and Rhino Engaged in Short Selling that Depressed the Price of Sedona's Stock
12. Between March 1 and March 29, 2001, Rhino and Badian directed a series of short sales of Sedona stock through an account at a U.S. broker-dealer held in the Client's name and controlled by Badian.
13. At the time, the Client owned no Sedona stock. Rhino did not deliver the shares that it was selling short by settlement day and the broker neither bought nor borrowed stock to cover these sales.
14. In violation of the Purchase Agreement's prohibition against short selling, Rhino placed orders with the U.S. broker-dealer, who thereafter placed sell orders with another broker-dealer (the "Cooperating Broker-Dealer") in Sedona stock. Each day in March 2001, the Cooperating Broker-Dealer executed sales of Sedona stock in its proprietary account. The Cooperating Broker-Dealer often placed these sales through various electronic communications networks (ECNs), which provide anonymity to traders wishing to conceal their identity from the market. At the time of these sales, the Cooperating Broker-Dealer did not possess any shares of the Sedona stock that it was selling.
15. The Cooperating Broker-Dealer covered its short sales through the ECN's by purchasing the shares from Rhino's client's account at the U.S. broker-dealer. The Cooperating Broker-Dealer executed the purchases after the sales had been effected through the ECN's and after the market had closed. The Cooperating Broker-Dealer would purchase the shares at prices slightly below the average prices of the sales through the ECN's, thus ensuring itself a profit. As a consequence, these purchases were not printed to the NASDAQ tape and were not included in reported volume for the day.
16. Because the Client owned no Sedona stock, these transactions resulted in short positions in the Client's account. However, because its sales were not reported or printed to the NASDAQ tape, the short sales were not reported to the market.
17. Rhino continued to execute short sales in the Client's account, despite repeated failure to deliver shares by settlement date. In sum, in March 2001, through Badian's trading, the Client sold short 872,796 shares of Sedona stock. Of those shares, the Client sold short 785,536 shares prior to its first exercise of its conversion rights under the Debenture. These failures to deliver triggered clearing failures at Depository Trust and Clearing Corporation ("DTCC"). As a result of the clearing failures, on March 22, 2001, the National Association of Securities Dealers ("NASD") placed a short restriction on Sedona's stock, which required that any future sales of Sedona would be subject to a mandatory close-out if there was a failure to deliver the securities after 10 days.1
18. After the NASD placed the short restriction on Sedona's stock, Rhino sold short Sedona shares from an account he controlled on behalf of the Client at a Canadian broker-dealer. Canadian broker-dealers are not members of the NASD and are not subject to its short sale restrictions. Beginning on March 30 and continuing through mid-April 2001, Rhino executed short sales through the Canadian account.
19. Rhino sold short 350,500 shares in the Canadian account during this period. The shares were not delivered by settlement date. The Canadian broker-dealer neither bought nor borrowed stock to cover these sales and continued executing short sales. Rhino's short selling in the Canadian account continued to put downward pressure on Sedona's stock price. Between March 1 and April 16, Rhino, through the two accounts it controlled on behalf of the Client, accumulated an open and undelivered short position in Sedona stock of 1,193,296 shares.
Rhino's Short Selling Increased the Number of Shares the Client Received on Conversion
20. Rhino's short selling through the Client's accounts depressed Sedona's stock price during the five day trading periods prior to each conversion on which the VWAP of Sedona's stock was calculated. Between January 26 and March 1, 2001, Sedona's average closing price was $1.43 per share. By March 23, 2001, after three weeks of Rhino's constant short selling, Sedona's stock had declined to $.75 per share. On March 27, 2001, Badian, on behalf of the Client, tendered the first notice of conversion under the Debenture and received 127,517 shares of Sedona stock at a VWAP of $.9384 and a conversion price of $.79764. During the five trading days prior to March 27, Badian's trading averaged in excess of 25% of all shares traded during the period.
21. Based on the conversion formula in the Debenture, the lower the VWAP, the more shares the Client received from Sedona on conversion. Between March 27 and April 16, 2001, the Client exercised its conversion rights under the Debenture on three more occasions. On April 5, 2001, the Client exercised its right to receive 395,337 shares of Sedona stock at a VWAP of $.75762 and a conversion price of $.64398. On April 10, the Client exercised its right to receive 761,342 shares of Sedona stock at a VWAP of $.7884 and a conversion price of $.67014. On April 16, 2001, the Client exercised its right to receive 329,988 shares of Sedona stock at a VWAP of $.91022 and a conversion price of $.77369. As a result of the sustained sell pressure placed on Sedona's stock price, the VWAP for each of the Client's conversions in April was lower than the VWAP for its first conversion on March 27, which increased the number of conversion shares that the Client received from Sedona under the Debenture.
22. Rhino deposited the conversion shares that the Client received from Sedona into another account he controlled at a second U.S. broker-dealer designated to receive the conversion shares (the "Conversion Shares Account"). By April 16, 2001, Rhino received 1,614,184 shares of Sedona stock on behalf of the Client in the Conversion Shares Account. The majority of these conversion shares were used to close the open and undelivered short position at the first U.S. broker-dealer where the short selling occurred and to significantly reduce the open and undelivered short position at the Canadian broker-dealer.
23. Instead of delivering the shares directly to broker-dealers where the short sales occurred, Rhino effected wash sales and matched orders out of the Conversion Shares Account to the short selling accounts. This created the appearance that the accounts that had short positions were purchasing shares in the open market and not covering short positions with shares obtained through conversion of the debenture. On at least ten occasions during April, 2001, Badian directed transactions involving no change in beneficial ownership of shares of Sedona stock or placed buy orders for shares while simultaneously placing sell orders of substantially the same size and price.
24. On May 1, 2001, Badian exercised the Client's right to receive 261,587 shares of Sedona stock at a VWAP of $.94474 and a conversion price of $.80303. On May 15, 2001, Badian exercised the Client's right to receive 303,399 shares of Sedona stock at a VWAP of $1.19 and a conversion price of $1.01. Badian continued to engage in short selling in May, selling 25,000 shares in one account and 560,800 shares through another. Badian and Rhino failed to deliver these shares to the accounts were the sales occurred, thereby triggering clearing failures at DTCC.
The Client Profited From Badian's Scheme
25. Rhino's trading allowed the Client to profit from the scheme in at least two ways. First, the short sales locked in a sale price for the Sedona stock that was higher than the conversion price for the shares ultimately used to cover the open short positions. Second, Rhino's short sales increased the supply of Sedona shares in the market and depressed the price. As a result of the depressed market price, the Client converted the Debenture to a greater number of shares of Sedona stock, which were already discounted to the market, and which it then used to cover its previous short sales made at higher prices.
Rhino Failed To Respond To A Commission Order
26. Rhino failed to tender a sworn response to an order issued pursuant to Section 21(a) of the Exchange Act [15 U.S.C. § 78u].
First Claim for Relief
Violations of Section 10(b) of the Exchange Act and Rule 10b-5 Promulgated Thereunder
[15 U.S.C. § 78j(b) and 17 C.F.R. § 240.10b-5]
By Defendants Rhino And Badian
27. Paragraphs 1 through 26 are realleged and incorporated herein by reference.
28. From at least March 2001 through May 2001, Defendants Rhino and Badian, directly and indirectly, by use of the means and instrumentality of interstate commerce, and of the mails in connection with the purchase or sale of the securities, as described in this Complaint, have been, knowingly, willfully or recklessly: (a) employing devices, schemes or artifices to defraud; (b) making untrue statements of material facts and omitting to state material facts necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; and/or (c) engaging in acts, practices and courses of business which have operated, are now operating and will operate as a fraud upon the purchasers of such securities.
29. By reason of the activities described in the paragraphs above, defendants Rhino and Badian directly or indirectly, have violated and, unless enjoined, will continue to violate Section 10(b) of the Exchange Act, 15 U.S.C. § 78j(b), and Rule 10b-5, 17 C.F.R. § 240. 10b-5, thereunder.
Second Claim for Relief
Violations of Section 17(a)(1) of the Securities Act
[15 U.S.C. § 77q(a)]
by Defendants Rhino and Badian
30. Paragraphs 1 through 29 are realleged and incorporated herein by reference.
31. From at least March 2001 through May 2001, Defendants Rhino and Badian, directly and indirectly, by use of the means or instruments of transportation or communication in interstate commerce and by use of the mails, in the offer or sale of securities, as described in this Complaint, have been, knowingly, willfully or recklessly employing devices, schemes or artifices to defraud.
32. By reason of the activities described in the paragraphs above, Defendants Rhino and Badian directly and indirectly, have violated and, unless enjoined, will continue to violate Section 17(a)(1) of the Securities Act, 15 U.S.C. § 77q(a)(1).
Third Claim for Relief
Defendant Rhino Violated the Commission's Order Lawfully Issued Pursuant to Section 21(a) of the Exchange Act
[15 U.S.C. § 77u(a)]
33. Paragraphs 1 through 32 are realleged and incorporated herein by reference.
34. On June 17, 2002, the Commission lawfully issued an order pursuant to Section 21(a) of the Exchange Act to Rhino.
35. Rhino failed to comply with the terms of the Order and has therefore violated the Order.
PRAYER FOR RELIEF
WHEREFORE, Plaintiff SEC respectfully requests that this Court enter a judgment:
(i) permanently enjoining Defendants Rhino Advisors, Inc. and Thomas Badian from violating Section 10(b) of the Exchange Act [15 U.S.C. §§ 78j(b)], and Rule 10b-5 thereunder [17 C.F.R. §§ 240.10b-5 ];
(ii) permanently enjoining Defendants Rhino Advisors, Inc. and Thomas Badian from violating Section 17(a)(1) of the Securities Act of 1933 [15 U.S.C. § 77q(a)];
(iii) ordering Defendants Rhino Advisors, Inc. and Thomas Badian to pay, on a joint and several basis, a civil money penalty under Section 21(a) of the Exchange Act [15 U.S.C. § 78u] in the amount of $1 million U.S. dollars;
(iv) ordering Defendant Rhino Advisors to comply with the Commission's order, issued pursuant to Section 21(a) [15 U.S.C. § 78u] of the Exchange Act, directing it to provide sworn answers to the questions directed to it; and
(v) granting such other relief as this Court may deem just and appropriate.
Respectfully submitted,
_________________________
Thomas C. Newkirk (TN7271)
James M. McHale (JM8286)
James T. Coffman
Melissa A. Robertson
Christopher C. Ehrman
Counsel for Plaintiff
Securities and Exchange Commission
Mail Stop 9-11
450 Fifth Street, N.W.
Washington, D.C. 20549
(202) 942-4588 (McHale)
(202) 942-9581 (fax)
Dated: Washington, D.C.,
February 26, 2003
Endnotes
1 Section 11830 of the NASD's Uniform Practice Code requires that a short seller's broker-dealer must close out a short sale of a specific security 10 days after normal settlement date if the client does not deliver the shares. Securities subject to close-out requirement are those with an aggregate "clearing" short position of 10,000 shares or more that equals or exceeds one half of one percent of the total shares outstanding. The NASD will identify these securities daily based on data from the DTCC and compile a "restricted list." Any subsequent short-sale transaction in a security on the list that is not completed by delivery of shares within the prescribed time frames will be subject to mandatory close-out if a "fail-to-deliver" situation exists 10 days after normal settlement date.
http://www.sec.gov/litigation/complaints/comp18003.htm
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Home / Previous Page Modified: 02/27/2003
again..has anyone spoken with the company at all this week?
any ideas on relisting? why speculate, arent they answering questions?
ot:read this about VFIN....Chapter 7 Petition Against FreeStar Dismissed -- FreeStar to Seek Compensatory and Punitive Damages
SANTO DOMINGO, Dominican Republic--(BUSINESS WIRE)--Feb. 27, 2003--
FreeStar Technology Corporation (OTCBB:FSTI), announced that a memorandum of decision dismissing the Chapter 7 Involuntary Bankruptcy Petition, brought against the Company on January 9, 2003, was signed yesterday afternoon.
Pursuant to the ruling by Honorable Judge Allan L. Gropper, the Chapter 7 Petition brought in January by vFinance, Inc., David Stefansky, Richard Rosenblum, Marc Siegel, Papell Holdings LLC and Boat Basin Investors Ltd. in the United States Bankruptcy Court for the Southern District of New York, will be dismissed promptly. As contended in FreeStar's Motion to Dismiss of February 4, 2003, the Petitioners held no claims against FreeStar that were not the subject of a bona fide dispute.
FreeStar is of the opinion that the Chapter 7 Petition was filed in bad faith in order to depress FreeStar's share price and thus allow the Petitioners to cover a substantial naked short position in FSTI stock. FreeStar will seek substantial punitive and consequential damages, pursuant to provisions of the Bankruptcy Code, relating to the Petitioners' actions causing the Company's market capitalization to decrease significantly on and about January 10, 2003. The first of such motions, seeking statutory recovery of FreeStar's fees and costs, is likely to be filed within the next two weeks.
Paul Egan, President and Chief Executive Officer of FreeStar, stated, "While the facts of this case were clear, we commend the diligent endeavors of our defense team. Justice has been served by today's ruling and we look forward to focusing our efforts on FreeStar's core business without further distraction."
About FreeStar Technology Corporation
With Corporate headquarters in Santo Domingo, Dominican Republic, and offices in Dublin, Ireland, and Helsinki, Finland, FreeStar Technology is focused on exploiting a first-to-market advantage for enabling ATM and debit card transactions on the Internet and high-margin credit card processing through a leading Northern European processor, Rahaxi Processing Oy. FreeStar Technology's Enhanced Transactional Secure Software ("ETSS") is a proprietary software package that empowers consumers to consummate e-commerce transactions on the Internet with a high level of security using credit, debit, ATM (with PIN) or smart cards. It sends an authorization number to the e-commerce merchant, rather than the consumer's credit card information, to provide a high level of security. For more information, please visit the Company's web sites at http://www.freestartech.com, http://www.rahaxi.com and http://www.epaylatina.com
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
CONTACT:
Freestar Technology Corporation, Santo Domingo
Paul Egan, 809/503-5911
pegan@freestartech.com
SOURCE: FreeStar Technology Corporation
Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: http://www.businesswire.com
02/27/2003 07:40 EASTERN
any word from the company? when are they going to relist on the otcbb?
**MUST READ**Interesting stuff on the mechanics of naked shorting....
http://www.sec.gov/litigation/complaints/comp18003.htm
..... 18. After the NASD placed the short restriction on Sedona's stock, Rhino sold short Sedona shares from an account he controlled on behalf of the Client at a Canadian broker-dealer. Canadian broker-dealers are not members of the NASD and are not subject to its short sale restrictions. Beginning on March 30 and continuing through mid-April 2001, Rhino executed short sales through the Canadian account.
19. Rhino sold short 350,500 shares in the Canadian account during this period. The shares were not delivered by settlement date. The Canadian broker-dealer neither bought nor borrowed stock to cover these sales and continued executing short sales. Rhino's short selling in the Canadian account continued to put downward pressure on Sedona's stock price. Between March 1 and April 16, Rhino, through the two accounts it controlled on behalf of the Client, accumulated an open and undelivered short position in Sedona stock of 1,193,296 shares. ......
IN a sense, Rhino was lucky, because it could ultimately close out the short position from stock isued on conversion of the debenture it had arranged on behalf of its client (in Europe?). I can't help wondering what offshore broker-dealers who have naked shorted U.S stocks do, when no stock can be counted on as forthcoming in order to close out an open short position.....?
**MUST READ**Interesting stuff on the mechanics of naked shorting....
http://www.sec.gov/litigation/complaints/comp18003.htm
..... 18. After the NASD placed the short restriction on Sedona's stock, Rhino sold short Sedona shares from an account he controlled on behalf of the Client at a Canadian broker-dealer. Canadian broker-dealers are not members of the NASD and are not subject to its short sale restrictions. Beginning on March 30 and continuing through mid-April 2001, Rhino executed short sales through the Canadian account.
19. Rhino sold short 350,500 shares in the Canadian account during this period. The shares were not delivered by settlement date. The Canadian broker-dealer neither bought nor borrowed stock to cover these sales and continued executing short sales. Rhino's short selling in the Canadian account continued to put downward pressure on Sedona's stock price. Between March 1 and April 16, Rhino, through the two accounts it controlled on behalf of the Client, accumulated an open and undelivered short position in Sedona stock of 1,193,296 shares. ......
IN a sense, Rhino was lucky, because it could ultimately close out the short position from stock isued on conversion of the debenture it had arranged on behalf of its client (in Europe?). I can't help wondering what offshore broker-dealers who have naked shorted U.S stocks do, when no stock can be counted on as forthcoming in order to close out an open short position.....?
- - - - -
**MUST READ**Interesting stuff on the mechanics of naked shorting....
http://www.sec.gov/litigation/complaints/comp18003.htm
..... 18. After the NASD placed the short restriction on Sedona's stock, Rhino sold short Sedona shares from an account he controlled on behalf of the Client at a Canadian broker-dealer. Canadian broker-dealers are not members of the NASD and are not subject to its short sale restrictions. Beginning on March 30 and continuing through mid-April 2001, Rhino executed short sales through the Canadian account.
19. Rhino sold short 350,500 shares in the Canadian account during this period. The shares were not delivered by settlement date. The Canadian broker-dealer neither bought nor borrowed stock to cover these sales and continued executing short sales. Rhino's short selling in the Canadian account continued to put downward pressure on Sedona's stock price. Between March 1 and April 16, Rhino, through the two accounts it controlled on behalf of the Client, accumulated an open and undelivered short position in Sedona stock of 1,193,296 shares. ......
IN a sense, Rhino was lucky, because it could ultimately close out the short position from stock isued on conversion of the debenture it had arranged on behalf of its client (in Europe?). I can't help wondering what offshore broker-dealers who have naked shorted U.S stocks do, when no stock can be counted on as forthcoming in order to close out an open short position.....?
has anyone had their calls returned from ibcl? anyone know when they are going to file? any recent updates? whats this temporary restraining order all about? ive left several messages for my call to be returned for at least 1 week..no call!!
gg just looking for info on the status of the company? ive left several messages nobody has called back!! if you have any info it would be greatly appreciated!! thanks
has anyone spoken with the company lately?
why was ibcl delisted from the otcbb? and what will it take to be relisted? did the halt cause the delisting?
has anyone read the pr from ibcl after the meeting? it was very detailed re: the meeting and the reasons for it!! it also mentioned info was agthered and sent back to washington, if thats the case, how was ibcl not telling the truth about the interview?