PAIVIS Corp (fka PAVC)

[Dallas66]

Chicago....that's exactly my point. We see several times a week now where some company was fined...and PAID...that $$$ but admitted no guilt. Whether they admitted guilt or not...they PAID MONEY to the SEC in the form of a fine. ( in your example they paid a fine equal to 4% of their profit. ) They get a slap on the wrist...agree to basically find a new way to keep on screwing over the investor, and are off the hook for THAT offense because they settled. The SEC gets a chunk of change...they look like they are bustin a$$ to catch the crooks....most people are at least acceptable of their efforts (non OTCBB/pinksheet investors that is)

Here is something I find rather interesting directly from the SEC website.
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Securities Act of 1933

Often referred to as the "truth in securities" law, the Securities Act of 1933 has two basic objectives:

* require that investors receive financial and other significant information concerning securities being offered for public sale; and

* prohibit deceit, misrepresentations, and other fraud in the sale of securities.

Purpose of Registration

A primary means of accomplishing these goals is the disclosure of important financial information through the registration of securities. This information enables investors, not the government, to make informed judgments about whether to purchase a company's securities. While the SEC requires that the information provided be accurate, it does not guarantee it. Investors who purchase securities and suffer losses have important recovery rights if they can prove that there was incomplete or inaccurate disclosure of important information.
The Registration Process

In general, securities sold in the U.S. must be registered. The registration forms companies file provide essential facts while minimizing the burden and expense of complying with the law. In general, registration forms call for:

* a description of the company's properties and business;

* a description of the security to be offered for sale;

* information about the management of the company; and

* financial statements certified by independent accountants.

Registration statements and prospectuses become public shortly after filing with the SEC. If filed by U.S. domestic companies, the statements are available on the EDGAR database accessible at www.sec.gov. Registration statements are subject to examination for compliance with disclosure requirements.

Not all offerings of securities must be registered with the Commission. Some exemptions from the registration requirement include:

* private offerings to a limited number of persons or institutions;

* offerings of limited size;

* intrastate offerings; and

* securities of municipal, state, and federal governments.

By exempting many small offerings from the registration process, the SEC seeks to foster capital formation by lowering the cost of offering securities to the public.
Securities Exchange Act of 1934

With this Act, Congress created the Securities and Exchange Commission. The Act empowers the SEC with broad authority over all aspects of the securities industry. This includes the power to register, regulate, and oversee brokerage firms, transfer agents, and clearing agencies as well as the nation's securities self regulatory organizations (SROs). The various stock exchanges, such as the New York Stock Exchange, and American Stock Exchange are SROs. The National Association of Securities Dealers, which operates the NASDAQ system, is also an SRO.

The Act also identifies and prohibits certain types of conduct in the markets and provides the Commission with disciplinary powers over regulated entities and persons associated with them.

The Act also empowers the SEC to require periodic reporting of information by companies with publicly traded securities.

Corporate Reporting

Companies with more than $10 million in assets whose securities are held by more than 500 owners must file annual and other periodic reports. These reports are available to the public through the SEC's EDGAR database.

Link
http://www.sec.gov/about/laws.shtml

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No where in this do I see an exemption for OTCBB/pinksheets stocks. I read it as this applies to ALL PUBLICLY TRADED COMPANIES.