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LLBO.PK MUST READ !!!... Lifeline Biotechnologies, Inc. (“LBTN”)
29.
During 2006, a Labi customer delivered more than 1 billion shares of LBTN stock into two accounts held at Leeb in the name of entities the customer controlled. The customer was a stock promoter and LBTN affiliate, who had sent Labi an instant message in the fall of 2005 communicating information about the timing of a promotional campaign. The customer obtained 2 billion shares out of 6.5 billion shares that LBTN had issued from March through December 2006, representing 31.7% of all newly-issued shares. Labi’s customer obtained the stock by having entities he controlled participate in Rule 504 offerings, which under certain circumstances can provide issuers with a means of issuing unrestricted stock without registering the offering. Here, however, Labi’s customer was acting as an underwriter, and his entities’ immediate resales of the stock violated investment intent representations contained in subscription agreements and referred to in the Rule 504 legal opinion letters....
30.
...From January 4, 2006 through March 28, 2007, Labi sold in excess of 1 billion of the customer’s shares of LBTN to the public without a registration statement being in effect, and no exemption from registration was available....

3.
...Victor Labi was a registered representative at Leeb from September 2002 to May 2007. Labi participated in offerings of penny stocks, including Aegis Assessments, Inc., CDI Developments, Inc., Deep Blue Marine, Inc., and Lifeline Biotechnologies, Inc. Labi, 42 years old, is a resident of Eastchester, New York....
http://www.sec.gov/litigation/admin/2010/33-9121.pdf