SEC Investigating America’s Most Corrupt Airline
What is the SEC alleging?
Clare actively solicited investors by phone, by email, and in person, and received up to 20% of the proceeds of the Baltia investments he obtained.
Clare wrote emails to investors describing the Baltia investment opportunity as “attractive,” “prudent,” and capable of generating “tremendous gains.”
Clare solicited potential investors on a New York-area Russian language radio station through paid advertisements.
During those advertisements, Clare described Baltia as a “great investment opportunity” with a share price that was “undervalued.”
Clare maintained detailed ledgers of the Baltia investments he obtained and the compensation he received. Those ledgers show that Clare sold Baltia stock on a near-daily basis, participated in at least 820 sales of Baltia stock, and received commissions totaling $1.7 million for approximately 605 of these sales.
Not surprisingly, Baltia is “greatly disappointed” by the SEC’s decision, and explains how instrumental Barry has been in bringing the airline’s “business plan to fruition” (which is actually very true — he convinced people to invest without the airline ever intending to operate a flight, which seems to precisely be their business plan):
Baltia’s Reaction
Baltia Air Lines, Inc. (BLTA) announced today that it is greatly disappointed with the SEC’s decision to file an order against our Executive Vice President and Director Barry Clare after fully cooperating with the SEC investigation. Mr. Clare has worked tirelessly for our company and on behalf of our loyal shareholders to bring our business plan to fruition. We continue to make progress and will fight on regardless of these charges. We do not believe that Barry Clare has violated any laws, rules or regulations. We intend to defend and support Mr. Clare against the SEC charges vigorously in a public hearing. We are grateful for Mr. Clare’s service without which Baltia would not have been able to continue its operations.
Bottom line
Baltia now has no plane and one of their executives is being investigated by the SEC. Could this finally be the last straw for the airline?
It’s amazing how much money Baltia has raised over the past few decades. Anyone dumb enough to pump more money into this company almost deserves the ROI they’ll get from it…
