AimRite Holdings Corp (AIMH)

[loanranger]

Peter needs to be reminded:
"The Seattle Regional Office announced that, on April 25, the Honorable Bruce Jenkins, Chief Judge for the U.S. District Court, at Salt Lake City, entered a final judgmentof permanent injunction and order for disgorgement. interest and penalty against Ira Michael Patton. Patton, who consented to the entry of the judgment without admitting
or denying the violations, was enjoined from future violations of Section lOeb) of the Securities Exchange Act and Rule IOb-5, and he was ordered to disgorge profits allegedly obtained in this insider trading case along with prejudgment interest of $26,964, and to pay a penalty of $23,990, for a total payment, to be paid over time,of $50,964 plus postjudgment interest. The disgorgement and prejudgment interest sums are to be paid to a Special Agent who will distribute the sums, on a pro rata basis, to persons who sold common stock of Motor Fuels Corporation in brokerage transactions on September 9, 10 and 11, 1984.. The Commission earlier obtained final judgments of permanent injunction concerning future violations of Section 10(b) and Rule 10b-5 against the two other defendants (Peter Berney and Whitney Lund) involving payment of disgorged profits and a penalty by the two defendants of $125,000, with neither defendant admitting or denying the violations. All three defendants were also alleged to have issued a false and misleading press release concerning Motor Fuels Corporation. [SEC v. Ira Michael Patton, Peter Berney, Whitney Lund, Civil Action C87-0797J, CD Utah] (LR-12467)


For those that may not be familiar with the law, here's Rule 10b-5:
§ 240.10b-5 Employment of manipulative and deceptive devices.
It shall be unlawful for any person, directly or indirectly, by the use of any means or instrumentality of interstate commerce, or of the mails or of any facility of any national securities exchange,
(a) To employ any device, scheme, or artifice to defraud,
(b) To make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, or
(c) To engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person,
in connection with the purchase or sale of any security.


So if Berney actually comes out and says, or is publicly quoted by Barton as saying, something like "we now have a confirmed merger in the works" and no merger follows, he would be in serious trouble. It's one thing for an anonymous poster to make a statement like that, it's another for a convicted felon and securities law violator enjoined from doing precisely that type of false and deceptive statement to do so.

The same caution should be exercised "Once the prs / filings start flowing".

If Berney can truly be shown to be connected with this company, as has been clearly suggested ( http://investorshub.advfn.com/boards/read_msg.aspx?message_id=111842412 ), people crazy enough to hold shares here or to invest/trade here will have to be very nimble.



ps. People who aren't familiar with the history here should know that Whitney Lund, co-defendant in the above action, is the company transfer agent......at least he would be if the agency he ran was still licensed to do business (it's not).