Market 99 Ltd (fka MNTY)

[Lawson Digest]

From SEC website: "A word of caution to the entrepreneur--regardless of the amount of disclosure the issuer is willing to provide, Rule 504 does not dismiss the issuer from the federal requirements, nor is there an exemption from the fraud provisions, including the areas of material omissions or misstatements. The penalties for noncompliance are severe, including monetary fines and mandatory jail sentences."

There is a case of this about a business from Colorado who did the same thing: Publicly announced to shareholders through an email newsletter that the company had no intention of a reverse split.

Sure as shit, and without warning, a split comes and kicks the shareholders in the nuts. Furious, and highly educated, the shareholders write a formal complaint to the SEC. The SEC promptly has the CEO arrested and his interests in the company sold back to the treasury, leaving his 20 year old daughter with the company.