ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

Looks like the devil financier [Ironridge]lost big time in a released SEC filing ruling today and looks to be in judgement of ScripsAmerica!!!

There is NOTHING in the SEC's Administrative Proceeding that states any such thing.

Here is all that can be gleaned from this document:

(1)
The activity and business practices that have been detailed by the SEC are very similar, if not exactly identical, to what had been made public about the nature of the financing deal that Ironridge entered into with SCRC.

(2)
IR has yet to respond to provide its side of the story.

(3)
This proceeding could potentially take almost a year to resolve.

(4)
The suit that SCRC filed against IR, which SCRC lost, does not exactly relate to this w/respect to the specific claims that SCRC asserted in its suit, so it is unclear at this time whether this SEC action against IR will have any impact on this suit.

(5)
All that has been ordered at this time is for IR to "cease and desist" from engaging in any new financing deals in the manner in which it has. SCRC's deal is in the past so this aspect of it currently has no impact on SCRC.

(6)
The potential penalties of disgorgement of profits and/or civil penalties may not be of any benefit to SCRC. For sure, civil penalties don't go to SCRC or its shareholders. Disgorgement is interesting because this is intended not to be punitive but as a remedy to those who have been harmed. And so it will be interesting to see if the SEC will contact all the companies that IR financed or if there will be an opportunity for SCRC to file a claim in this regard. I do not know how these matters work procedurally. Should SCRC be deemed a victim, it will be interesting as well to see if the SEC further determines that SCRC shareholders also fall into the category of victims that will share in any disgorgement pie. TO BE CLEAR, many many steps need to take place before this even becomes a 50/50 proposition, so it is far too early to be counting any chickens at this time. But this Administrative Proceeding is very interesting indeed.

(7)
The potential fly in the ointment is that IR never dumped its shares. The 13G filing from just a few months ago proved that IR still held materially their entire allotment of shares. And this is a fact that IR proved to the Court in defeating SCRC in the suit SCRC filed against it when one of SCRC's claims was that IR maliciously dumped shares. So the concern for me is that if IR can prove that it never dumped SCRC shares, then is this enforcement action something that will be dismissed? Or is the act of dumping not the main point and that the very nature of their business model is what the SEC is going after? I dunno, but I am fairly confident in saying that if IR never dumped SCRC stock then it may be difficult for SCRC to demonstrate that it (or us as shareholders) has been directly harmed by IR's direct actions -- as opposed to being harmed by the actions of other criminals (whazzup JOEY Z)...