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OH..NO!! Not E*Trade. this couldn't be!...I wonder if SEC now conciders putting markers in clients accounts without certs to back them up,is therby creating unregistered shares? hmmmmmmmmmm!
Who would have thought?
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370543133526
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PRESS RELEASE
SEC Charges Current and Former E*TRADE Subsidiaries With Improperly Selling Penny Stocks Through Unregistered Offerings
FOR IMMEDIATE RELEASE
2014-225
Washington D.C., Oct. 9, 2014 — The Securities and Exchange Commission today announced an enforcement action against current and former brokerage subsidiaries of E*TRADE Financial Corporation that failed in their gatekeeper roles and improperly engaged in unregistered sales of microcap stocks on behalf of their customers.
An SEC investigation found that E*TRADE Securities and E*TRADE Capital Markets sold billions of penny stock shares for customers during a four-year period while ignoring red flags that the offerings were being conducted without an applicable exemption from the registration provisions of the federal securities laws. E*TRADE Securities remains an E*TRADE subsidiary while E*TRADE Capital Markets was sold earlier this year and is now called G1 Execution Services.
E*TRADE Securities and G1 Execution Services agreed to settle the SEC’s charges by paying back more than $1.5 million in disgorgement and prejudgment interest from commissions they earned on the improper sales. They also must pay a combined penalty of $1 million.
In addition to the enforcement action, the SEC staff today published a Risk Alert and FAQs to remind broker-dealers of their obligations when they engage in unregistered transactions on behalf of their customers.
“Broker-dealers serve an important gatekeeping function that helps prevent microcap fraud by taking measures to ensure that unregistered shares don’t reach the market if the registration rules aren’t being followed,” said Andrew J. Ceresney, Director of the SEC’s Division of Enforcement. “Many billions of unregistered shares passed through gates that E*TRADE should have closed, and we will hold firms accountable when improper trading occurs on their watch.”
According to the SEC’s order instituting a settled administrative proceeding, the failures by E*TRADE occurred periodically from March 2007 to April 2011. The securities laws generally require all offers and sales of securities to be registered with the SEC unless those offers and sales qualify for an exemption. When brokers facilitate an unregistered sales transaction on behalf of a customer, they must reasonably ensure that an exemption does indeed apply.
The SEC’s order finds that three customers of E*TRADE routinely deposited to their E*TRADE accounts large quantities of newly issued penny stocks they had acquired through private, unregistered transactions with little-known, non-reporting issuers. The customers claimed that these penny stocks were “freely tradable” and they placed orders for E*TRADE to sell the securities to the public through “resales” without any registration statements in effect. Following the resales, the customers immediately wired the sales proceeds out of their accounts.
According to the SEC’s order, E*TRADE encountered numerous red flags indicating potential improper sales of securities. Nevertheless, the firm relied on a registration exemption for broker-dealers that permits them to execute a customer’s unregistered sales of securities if, after a reasonable inquiry, the broker-dealer is not aware of circumstances indicating that the customer is violating registration requirements. E*TRADE initially failed to identify any exemptions potentially available to these customers. When it later identified the purported exemptions upon which the customers claimed to be relying, E*TRADE failed to perform a searching inquiry to be reasonably certain that such exemptions applied for each unregistered sale executed by the three customers.
“E*TRADE failed to fulfill its obligation to determine whether any exemptions applied to the sale of billions of shares of securities thereby depriving investors of critical protections under the federal securities laws,” said Stephen L. Cohen, Associate Director of the SEC’s Division of Enforcement. “Firms must take their reasonable inquiry obligations seriously and do more than check the box, particularly when red flags are apparent.”
The SEC’s order finds that E*TRADE Securities and G1 Execution Services violated Sections 5(a) and 5(c) of the Securities Act of 1933. In addition to the monetary sanctions and without admitting or denying the SEC’s findings, the two firms agreed to be censured and consented to the order requiring them to cease and desist from committing or causing any future violations of the registration provisions of the Securities Act.
The SEC’s investigation was conducted by Deborah R. Maisel and Richard E. Johnston with assistance from Kyle DeYoung. The case was supervised by Jennifer S. Leete.
Cynic Did you take into concideration the 3,000,000 shares issued to the attornies? do you think that they may have cashed them in? These were restricted shares and probably protected from the R/S, (attorneys you know)
Bob
Seems that sence we brought JANIS on board. we can no longer afford to publish news.We have NO idea what is going on. WHY!!!
Bob
josh, Thank you for your post. The lack of information from the company has been un nerving to say the least, nice to know that you are working on the web site, that at least gives us an indication of on going progress.
Thanks
Bob
ekoenig,Looks like 3D-NEG
Posted by: quellen
In reply to: afex1987 who wrote msg# 437 Date:7/11/2003 3:50:14 PM
Post #of 509
I just saw the NEBA L-1011 3D-NEG take off from Tucson International Airport!
Has anyone called these folks to verify that it is the same aircraft that was being tested for VIVA?
BUSINESS CARD • Contact John Poindexter, President & Managing Director - THE FLIGHTSTAR GROUP, INC. / TRISTAR CAPITAL LLC located Fort Lauderdale FLORIDA USA. Telephone: (954) 358-5000 or (305) 476-6000. Fax: (954) 358-5005. -- Posted 29 June 2003 -- Show all Ads posted by this Advertiser -- To send this Ad to a friend: Click here.
lookin, No Bolivia is where our subsidiary is based, NEBLA
Viva International Announces First Plane Moved to Bolivia for Inspection
TRAVERSE CITY, Mich., Jul 15, 2003 (BUSINESS WIRE) -- Viva International, Inc. (OTCBB: VIVI) today announced that an L-1011-50 utilized subject to a financial agreement with Tri-Star Capital, Ltd , was moved from Tucson, Arizona to Cochabamba, Bolivia on July 13, 2003 to complete appropriate retrofitting prior to aircraft "air-worthiness" testing. The aircraft is to be used in the operations of Northeast Bolivian Airlines a subsidiary of Viva.
Art Nice touch on the ihub home page,looks great.
Bob
Just got on board, seems to be a lot of good info here.
thanks
bob
Art MM's don't make markets unless the can make money. they can't make any money without shares, IMO they are holding on to whatever thay have with dear life.They really don't know what is coming next.
Bob
Art Thanks, feel a lot better,I thought that was the way it was but that filing threw me off, guess I didn't read it all.
Geezzee, That sounds like what the bashers do.LOL
Bob
Art, digging around this AM,plucked this from the last filing pre 14c 7/2/03,
SECURITY OWNERSHIP OF CERTAIN
BENEFICIAL OWNERS AND MANAGEMENT
The following table presents certain information as to the beneficial ownership of our common stock as of the Record Date of (i) each person that beneficially owns more than 5% thereof, (ii) each of our executive officers and directors, and (iii) all executive officers and directors as a group. All persons listed have sole voting and investment power with respect to their shares, and there is no family relationship between the executive officers and directors. For purposes of the following table, the number of shares and percentage of ownership of our outstanding common stock that the named person beneficially owns includes shares of common stock that the named person has the right to acquire within 60 days of the Record Date upon exercise of outstanding stock options or conversion rights, but such shares are not included for the purposes of computing the number of shares beneficially owned and percent of outstanding common stock of any other named person.
Name/Address Position Number of Shares Percentage of Class
Robert J. Scott President 41,000,000 5.32
924 Business Park Drive Director
Suite #2
Traverse City, MI 49686
Joan Jolitz 41,000,000 5.32
417 Barlow
Traverse City, MI 49686
Lazaro Canto 41,000,000 5.32
World Cargo Building
Terminal D
Base Muniz Carolina,
Puerto Rico 00937
BASH, LLC 41,000,000 5.32
c/o Werb & Sullivan
300 Delaware Ave.
10 th Floor
Wilmington, DE 19801
Enterprise D & D 41,000,000 5.32
C/o Falcon Air Express
9500 N.W. 41 st St.
Miami, FL 33178
--------------------------------------------------------------------------------
United Pay Phone
Owners, LLP 41,000,000 5.32
4166 Evelyn St.
Traverse City, MI 49688
Fiesta Airline Holdings, LLC 53,519,007 6.94
866 Webster St.
Traverse City, MI 49686
Mojave Jet CTG, LLC 150,000,000 16.30
3513 Alginet Drive
Encino, CA 91436
Officers and 41,000,000 5.32
Directors As
A group of
1 Person
Question is, this is post split,shows Mojvae woth 150,000,000 but also shows the Robert Scott & group still holding 41mm each, did they get exempt from the 1-800? I would think they should have 51,250 each. Any thoughts?
thanks
Bob
Art2Gecko, Do you have any up date info on the Queens deal?
I know they said it was closed, however nothing has been mentioned sence then.
Makes me wonder "how" it was closed or was it abandoned?
To my knowledge no one has been able to verify closure in a positive mannor.
Thanks
Bob, AKA bobbybb
cashsheets, Dosen't look like dilution, volume is too weak for large dumping.
Mojave IMO is the secured line of credit that was mentioned in the last PR.(16-20million)
They are holding shares as a deposit, I could be wrong but I believe that is the source of our aircraft purchase money and those shares will be held (not sold)as deposit for our line of credit.
Once we purchase the aircraft then the collateral for on going operations will be the equity in those birds.
If and when VIVI starts making money the deposited shares will be repurchased.Remember this was a "deposit of shares" not a sale for aircraft.
I find it hard to believe that Mr. Scott gave up 90% of VIVI shares on a permanent basis.IMO.
Bob