Sep 03, 2009 (SECURITIES AND EXCHANGE COMMISSION RELEASE/ContentWorks via COMTEX) -- USXP | Quote | Chart | News | PowerRating -- On Sept. 1, 2009, the Commission filed a civil complaint against three individuals and three entities alleging that between February 2004 and June 2007, they engaged in an unregistered distribution and sale of over 21 billion shares of Universal Express Inc. (USXP). The defendants raised approximately $34 million from their sales to public investors without filing registration statements. The defendants are Doyle Scott Elliott, Scott Elliott Inc., Robert Weidenbaum, CLX Associates, Inc., Michael Xirinachs and Emerald Asset Advisors LLC. Four of the defendants entered into private agreements to obtain shares of Universal Express at a substantial discount to the current market price. Weidenbaum and CLX agreed to receive shares purportedly for consulting services. However, each of the defendants immediately sold the shares they obtained directly from Universal Express without filing a registration statement and paid roughly half the proceeds back to the company. The defendants are charged with violating the securities registration provisions of Sections 5(a) and (c) of the Securities Act. The Commission seeks permanent injunctions, disgorgement, third-tier civil penalties, and penny stock bars. The Commission previously sued Universal Express, Inc. for violating the securities registration provisions. For further information see SEC v. Universal Express, Inc. et al., 04 Civ-02322 (GEL), (LR-18636 Mar. 24, 2004). [SEC v. Doyle Scott Elliott, Scott Elliott, Inc., Michael Xirinachs, Emerald Asset Advisors LLC, Robert Weidenbaum, and CLX & Associates, Inc., Civil Action No. 09-Civ-07594 (S.D.N.Y.)] (LR-21197
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