Calmare Therapeutics Inc (fka CTTC)

[Fair Play]

SEC : False Press Releases in Microcap Fraud
Source: www.sec.gov/News/PressRelease/Detail/PressRelease/1370543021551#.VCKNjzocS75
“The Securities and Exchange Commission today charged a Florida-based penny stock company and its CEO with defrauding investors by issuing false and misleading press releases proclaiming large sales and fantastic revenue projections while the purported health food company actually was a failing enterprise.
The SEC alleges that Heathrow Natural Food & Beverage Inc. touted sales of natural health food products that the company had not even manufactured as well as non-existent distribution agreements with major retail chains. Meanwhile, its CEO Michael S. Pagnano was prompting the illegal, unregistered distribution of billions of shares of company stock to several people or entities, including himself. Pagnano profited by more than $150,000 by selling 877 million of his shares into the market as the false press releases were stimulating public demand for Heathrow stock. Pagano also is charged with insider trading because he sold his shares while in possession of material nonpublic information about the falsehood of the press releases.
“Heathrow misled investors by peppering the market with remarkable press releases portraying the sky as the limit for worldwide distribution of huge volumes of its products while about the only thing the company was manufacturing was its sales projections out of thin air,” said Andrew M. Calamari, Director of the SEC’s New York Regional Office. “CEOs of microcap issuers will be held accountable when they spread misinformation in the marketplace.”

With this SEC decision, CTI can be in a very complicated situation. If the "amendment" is not valid, for two years the investors have received fake information: (http://pdf.secdatabase.com/539/0001360865-12-000107.pdf , http://globenewswire.com/news-release/2012/07/06/272763/261269/en/Competitive-Technologies-Extends-Agreement-for-Calmare-R-Scrambler-Therapy-R-Pain-Treatment-Device-to-Ten-Years.html ) about:
"Fairfield, CT - (July 6, 2012) - Competitive Technologies, Inc. (OTCQX: CTTC) announced today that is has negotiated a five-year extensionto its agreement for the Calmare® pain therapy device utilizing "Scrambler Therapy"® technology.......This contract extension resolves our concern regarding the term length of the general contract. "

Instead if the amendment is valid, then CTI does not have a contract.In addition, GEOMC inform that:
"...The entire inventory also needs to be factory-inspected or updated for safety and performance guarantee, as it has exceeded a normal storage period." and "...GEOMC Co., LTD. announced today that it filed a Complaint in the United States District Court, District of Connecticut to take possession of the inventory of the Scrambler Therapy Device held by Competitive Technologies, Inc. ("CTTC" or "CTI)."

But CTI seems to ignore all this.