US Stem Cell Inc (USRM)

[Cryptofan]

From the SEC website:

Investigations by the Securities and Exchange Commission

(https://www.sec.gov/fast-answers/answersinvestghtm.html)

"Securities and Exchange Commission (SEC) investigations are conducted confidentially to protect evidence and reputations. Important documents could be destroyed if an investigation is publicly announced, so confidential treatment may help to preserve key evidence in a case. A confidential process also protects the reputations of companies and individuals where the SEC finds no wrongdoing by the firm or the individuals that were the subject of the investigation. As a result, the SEC generally will not confirm or deny the existence of an investigation unless and until it becomes a matter of public record."

Interesting that, more than 3 months after USRM made a public announcement about the SEC's subpoena, there is absolutely nothing whatsoever on the SEC's Enforcement section of their website about an active investigation of USRM. Perhaps this is why...


How Investigations Work

(https://www.sec.gov/enforce/how-investigations-work.html)

"All SEC investigations are conducted privately. Facts are developed to the fullest extent possible through informal inquiry, interviewing witnesses, examining brokerage records, reviewing trading data, and other methods. With a formal order of investigation, the Division's staff may compel witnesses by subpoena to testify and produce books, records, and other relevant documents. Following an investigation, SEC staff present their findings to the Commission for its review. The Commission can authorize the staff to file a case in federal court or bring an administrative action. In many cases, the Commission and the party charged decide to settle a matter without trial."

If the matter was indeed settled behind closed doors, USRM has been lax in posting the settlement info in a press release, but they are under no requirement to make a public announcement. It would more probably show up as part of the next 10-q, however.

It's also just as likely that there was no finding of fault against USRM by the SEC and that the matter was dropped completely.


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All comments are my personal perspective only and should not be considered investment advice. Be a responsible investor and do your own due diligence (i.e. research), including clicking on "Latest Posts" under any poster's profile, before considering information from anyone in a public forum.

For more information about USRM, you can refer to this group: https://www.facebook.com/groups/597529273721280

“It’s amazing how much panic one honest man can spread among a multitude of hypocrites.” American economist Dr. Thomas Sowell

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