Elite Group Inc. (fka ELTZ)

[Millyunerr1694]

I am not a basher, but Terrence Tecco cost me money a while back.
https://www.sec.gov/litigation/admin/34-46993.htm
Background
3. At all times relevant herein, Strata was a development-stage company that Tecco operated out of his home. It had no business operations, no income, and no revenue. From May 2001 through March 2002, the company issued five materially misleading press releases. Tecco drafted and issued each press release on behalf of the company and posted them on its website www.wespactech.com, which is now inoperative.

False and Misleading Press Releases

4. On May 23, 2001, the company announced that it had entered into an agreement to purchase the majority interest in a Guatemalan oil field development project. The press release stated that the project, when fully developed, would have the status of a "giant oil field" with over one billion barrels of oil. The press release omitted to state that the acquisition was contingent on financing, which the company had no reasonable expectation of obtaining.

5. On June 14, 2001, the company issued a press release announcing the purchase of 16 oil wells in west Texas. The release stated that these wells already had $7,500 cash flow per month with four wells partially in production. Strata claimed that it would immediately begin a re-working program on the field and that within 30 days it expected a net cash flow of $50,000 per month. On July 31, 2001, the company announced that production from the wells would be about 50 barrels per day and that it expected operations to begin in September 2001. Strata omitted to state that it had insufficient funds to operate the four partially producing wells following the purchase. Strata also omitted to state that it did not have the funds available to re-work any of the wells, that this re-working was contingent upon receiving outside financing, and that it had no reasonable basis to expect the necessary funding. The cash-flow and production projections were, therefore, unrealistic and misleading.