The xxxx hits the fan! NEWS --
Dec 23, 2008 (SECURITIES AND EXCHANGE COMMISSION RELEASE/ContentWorks via
COMTEX) -- The Commission announced today that on December 22, it added ch arges
against stock promoters Ryan Reynolds, Jason Wynn and Carlton Fleming alleging
that they illegally underwrote multiple unregistered public stock offerings in
2007 and early 2008. Previously, on March 13, 2008, the Commission obtained a
temporary restraining order against Reynolds, Wynn, Fleming, and their
respective entities, Bellatalia LP, Wynn Industries, LLC, and Thomas Wade
Investments, LLC for engaging in illegal distributions of Beverage Creations,
Inc. stock in violation of Section 5 of the Securities Act of 1933. The
Commission also charged Wynn, Wynn Industries and Beverage Creations with fraud.
In its amended complaint, the Commission alleges that Reynolds, Wynn, Fleming,
and additional companies under their control purchased stock from
ConnectAJet.com, Inc., My Vintage Baby, Inc. and Alchemy Creative, Inc. for
pennies per share and immediately began liquidating those shares in the public
market at prices grossly inf lated by their own promotional activities. The
amended complaint adds as defendants Lugano Funds LLC, Wynn Holdings, LLC and
Regus Investment Group, LLC, which are companies owned or controlled by
Reynolds, Wynn and Fleming, respectively.
In addition, the Commission alleges that Jason Wynn and companies under his
control created artificial demand for the stock of ConnectAJet.com, Inc., My
Vintage Baby, Inc. and Alchemy Creative, Inc. through various ad campaigns,
misleading promotional mailers and spam emails.
The Commissions' lawsuit also names as defendants Beverage Creations, Inc. Chief
Executive Officer Robert Wieden and former Chief Operating Officer Patrick Dado.
According to the amended complaint, in a press release on February 21, 2008,
Wieden and Dado falsely disclaimed any relationship between Beverage Creations,
Inc. and Jason Wynn or companies under his control, even though Beverage
Creations, Inc. had sold more than 3 million shares of stock to Wynn Industries,
LLC and had other relationships with Jason Wynn.
The Commission alleges that, by these activities, all defendants violated
Section 5 of the Securities Act, and Wynn, Wynn Holdings, Wynn Industries,
Beverage Creations, Inc., Wieden and Dado violated Section 10(b) of the Exchange
Act and Rule 10b-5 thereunder. The Commission is seeking permanent injunctions
and civil penalties against all defendants and disgorgement of ill-gotten gains
from Reynolds, Wynn, Fleming, Lugano Funds, LLC, Wynn Holdings, LLC and Regus
Investment Funds, LLC. Ryan Reynolds is a defendant in two other actions filed
by the Commission: Securities and Exchange Commission v. Offill, et al. No.
3:07cv-1643-D and SEC v. Reynolds, et al., No. 3:08-cv-01687-M, both in the U.S.
District Court for the Northern District of Texas. [SEC v. Ryan M. Reynolds, et
al., Case No. 3-08 CV-438-B (N.D. Tex.)] (LR-20838)
Copyright (C) 2008 Federal Information & News Dispatch, Inc.
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