News for 'BVRG' - (ENFORCEMENT PROCEEDINGS - Beverage Creations, Inc. and its Former Officers Settle SEC Charges in Pump and Dump Case
Apr 07, 2009 (SECURITIES AND EXCHANGE COMMISSION RELEASE/ContentWorks via
COMTEX) -- The Securities and Exchange Commission announced today that Beverage
Creat ions, Inc., a Minneapolis, Minnesota company, and two of its former
officers settled SEC charges that they illegally sold Beverage Creations stock
through certain stock promoters and promoted that stock with a false press
release. On Apr. 6, 2009, the Honorable Judge Jane Boyle of the U.S. District
Court in Dallas entered final judgments against Beverage Creations, Inc., former
Chief Executive Officer Robert Wieden and former Chief Operating Officer Patrick
Dado.
In Mar. 2008, the SEC sued Beverage Creations, Inc. and several stock promoters
alleging that they sold 30 million shares of stock to the public without a
registration statement filed or in effect. According to the complaint, the stock
promoters (1) purchased shares directly from Beverage Creations, Inc., (2)
touted Beverage Creations, Inc. to investors through a nationwide marketing
campaign, and (3) immediately dumped their shares into the public market at
grossly inflate d prices. The SEC also charged that Beverage Creations, Inc.
participated in the touting by issuing a false press release denying any
relationship between the company and one of the stock promoters. In Dec. 2008,
the SEC amended its complaint to add Beverage Creations, Inc. officers Robert
Wieden and Patrick Dado. According to the amended complaint, Wieden and Dado
were responsible for Beverage Creations, Inc.'s public offering, and they
authored and approved the false press release. The SEC charged Beverage
Creations, Inc., Wieden and Dado with violations of Section 5 of the Securities
Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule
10b-5 thereunder.
Without admitting or denying the allegations, Beverage Creations, Inc., Wieden
and Dado settled the action by consenting to entry of a court order that
permanently bars them from violating Section 5 of the Securities Act of 1933 and
Section 10(b) of the Se curities Exchange Act of 1934 and Rule 10b-5 thereunder.
In addition, Wieden and Dado will pay civil penalties of $20,000 each. The SEC's
action against the remaining defendants is ongoing. [SEC v. Ryan M. Reynolds, et
al., Case No. 3-08 CV-438-B (N.D. Tex.)] (LR-20990)
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