Bioelectronics Corp (BIEL)

[4toSchool]

Whelan = Toxic Lender.

BIEL has been taken over by Toxic Lenders.

How else can you describe BIEL's President lending a "nominal" amount of capital to BIEL and now able to move her equity position from 0.15% to 50%?

From that day forward all Kelly "ill-gotten gains" Whelan did was take unregistered shares of BIEL and illegally sold them, or sold the notes. So, not having put in any money, living 15-years off this process, and now sitting on a $6 million dollar asset. If converted, her equity position in BIEL would take nearly 50% of BIEL's value. Currently, BIEL non-insider investors own 98% of BIEL. So, INVESTORS ARE AT IMMINENT RISK OF LOSING 50% OF THEIR INVESTMENT TO SELF-DEALING KELLY. Again, what did Kelly add to the equation? A one-time nominal and undocumented investment.

Per the SEC investigation,

1. In 2005 Kelly "ill-gotten gains" Whelan made an "undocumented and one-time nominal investment" and "never took on any additional risk". The story is available on the SEC website and found at this link.

Initially, IBEX’s loans to BIEL were not memorialized through any formal loan or promissory note agreements or otherwise documented individually. Sometime in 2009, IBEX and BIEL entered into a back-dated revolving and convertible promissory note agreement, intended to memorialize the terms of the loans made by IBEX to BIEL prior to that date. Although the Loan Agreement and Revolving Convertible Promissory Note are dated January 1,2005, they were not, in fact, drafted or executed until August 2009.12 These documents provide that IBEX could make loans of up to $2,000,000 to BIEL “to finance working capital commitments,” and receive in exchange the “Revolving Convertible Promissory Note,” convertible into shares of BIEL common stock pursuant to the terms set forth in the back-dated note.

SEC's CHARACTERIZATION OF KW'S LENDING:

1. nominal amount
2. undocumented
3. one-time
4. self-dealing
5. illegal
6. ill-gotten gains
7. harmed stockholders
8. can convert notes to majority ownership of the company