What is an SEC Wells Notice?
A "Wells Notice" is a letter sent by a securities regulator to a prospective respondent, notifying him of the substance of charges that the regulator intends to bring against the respondent, and affording the respondent with the opportunity to submit a written statement to the ultimate decision maker.
How do you respond to a Wells Notice?
After getting a Wells Notice, the recipient has a chance to respond. Usually, this response, called a Wells Submission, has to be returned to the SEC within two weeks. The Wells Submission may be written or oral. Wells Notice recipients don't always respond.
QNTA's Position:
We contend that we have not committed any wrongdoing or the violations referred to in the Notice. We cannot predict whether the Commission will follow the recommendations of the staff and file suit against us. If any enforcement proceeding is instituted by the Commission, we will defend the action.
