SEC Suspensions & Revocations

[Renee]

A Form 10 is an infinitesimally detailed filing that encompasses all material aspects of a company's operations from inception or for the last 2 years of business operations. For a company whose stock was revoked by the SEC Admin Law Judge the Form 10 must cover the entire period from the last audited 10K. If any suspicious activities occurred during the time from the last audited 10K the SEC will ask for inordinate amounts of details and explanations. The process is so arduous, costly for the auditor expenses, and time consuming that most companies just give up.

Read up on PELE as a classic example.