Universal Express Inc fka USXP

[Stockdung]

SEC: Fla. companies profited from Universal Express stock scheme

http://www.bizjournals.com/southflorida/stories/2008/04/07/story8.html?t=printable
South Florida Business Journal - by Brian Bandell


SEC court filings against the former CEO of Boca Raton-based Universal Express say the company made millions of dollars in 2007 by selling unregistered securities - with help from some South Florida companies.

Even after losing a $25.7 million judgment to the SEC for issuing unregistered securities in prior years, Universal Express and its executives employed a similar practice last year until a court-appointed receiver shut the company down, the court filings said.

In its case in New York federal court, the SEC is pursuing a motion to jail former Universal Express CEO Richard Altomare for contempt because he has not paid his portion of that judgment. Altomare contends he can't afford to pay the first $1.7 million of his $3 million judgment.

That judgment came in March 2007. The judge ruled the company, Altomare and its general counsel issued more than 500 million shares of unregistered public securities between April 2001 and January 2004. The parties receiving those shares at no charge sold them for $17.9 million and kicked back nearly $10 million of that to Universal Express, which distributed $1.4 million to Altomare.

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