Max Sound Corporation (MAXD)

[MD1941]

MAXD HOLD only applies to the bag-holders. Just remember that Halpern ran out the back door on Circle Group/ Z-Trim deal. He sold ahead of releasing bad news to the public. Do you think he changed his ways?

The following is from Halpern's Circle Group Holdings, Inc case.

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION

Case No. 05 C 3921


"The Circle Group officers and directors also knew that the Nestlé contract had been canceled. (Countercl. ¶ 58). Halpern, Dabney, and Theriault, who all were aware that the Nestlé contract had been canceled, sold Circle Group stock before the company publically announced an end to the Nestlé-Circle Group relationship. (Countercl. ¶ 59). Dabney sold 64,000 shares, Theriault sold 50,000 shares and Halpern sold 84,000 shares of his Circle Group stock. (Id.) Certain other investors were told about the termination of the Nestlé contract before the public announcement, which led to a further decrease in the stock’s
value."

It sure looks like insider trading! Why wasn't Halpern charged?

Halpern started the whole thing by blowing up the Nestle deal. Halpern has a twenty year track record of destroying deals.