Grifco Inc (GFCI)

[cyofish]

trintyz, Securities Act Rule 10b-5 is no laughing matter.

"Rule 10b-5: Employment of Manipulative and Deceptive Practices":

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,
(a) To employ any device, scheme, or artifice to defraud,
(b) 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
(c) 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


material fact = {b}any information that if known, would change a person's decision.

Grifco's PRs are full of material omissions and misstatements!!!. A company selling securities can not selectively omit material information whether through an 8K or a PR. Pinksheet companies are not immune. In fact many shady pinksheet operators had gone to jail becuase they violated this rule.

This will be JD's down fall and ultimately what can put him behind bars. Ironically, or shall I say comically, Grifco's defense against the default of the RR debt is Rule 10b-5. JD feels that RR and the agent didn't make material disclosure regaridng the nature of the loan to Grifco. In essens JD is saying "had we known all the facts, we would have never dealt with this company under these terms".