Grifco Inc (GFCI)

[cyofish]

FACT: JD is screwed if Grifco doesn't succeed.


Pinksheet or not SEC requires all public companies to disclose material information. Since Grifco put out PRs (business disclosure) to entice investors and to jack up their share pricei.e. CTBG dividends, 100 Million revenues, $2.25 offering, buyout offers etc., they do have certain obligation to make sufficent disclosure of facts. They have to provide all material (relevant) information in light of what they disclose. An item is considered material when it would affect the decision of a reasonable individual. In another words selective disclosure just isn't going to fly.

Here are some specific SEC regulations JD had violated (IMO). If Grifco goes down, JD can be in big trouble based on violating these rules.

Securities Exchange Act of 1934


Rule 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,
To employ any device, scheme, or artifice to defraud,


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


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.


Rule 12b-20 -- Additional Information
--------------------------------------------------------------------------------
In addition to the information expressly required to be included in a statement or report, there shall be added such further material information, if any, as may be necessary to make the required statements, in the light of the circumstances under which they are made not misleading.