Renewal Fuels, Inc (RNWF)

[MU_Redskin1]

Reverse Merger Report

http://reversemerger.dealflow.com/

I hope this RNWF stunt wasn't a scheme ... somebody could get busted !!!

SEC Sues Group Over Alleged $6.88M Reverse Merger Stock Fraud
Posted December 15, 2010 6:00PM PST

The Securities and Exchange Commission filed suit yesterday against attorney Marcus Luna and three other investors for allegedly manipulating the stock of Axis Technologies in a reverse merger fraud scheme that netted $6.88 million.

The suit, filed in U.S. District Court in Las Vegas, alleges that Luna arranged a reverse merger between Axis and the non-reporting Pink Sheets-listed company Riverside Entertainment in September 2006. The merger was to be followed by an investment from purportedly accredited investors.

The SEC claims that the investors, St. Paul Venture Fund, Minnesota Venture Capital, Real Estate of Minnesota and Matrix Venture Capital, were not accredited and were formed by Luna to serve as "straw men." Luna recruited Nathan Montgomery, Adam Daskivich, and David Murtha to act as principals of the corporations along with himself.

Following the merger, Luna told Axis management in a letter that the four supposedly accredited investors would buy 15 million shares for $300,000. Luna paid for the shares from an account in his law firm's name, the SEC said. Luna soon after mailed an opinion letter to Axis's transfer agent falsely stating that the shares were "free trading" and without a restrictive legend, the suit said.

Luna continued to work to get Axis trading as quickly as possible, filing paper work to get the company a ticker and submitting financials to the Pink Sheets to get its stock quoted.

As soon as the investors began submitting quotes, the volume and share price for Axis stock skyrocketed, the SEC said. The lawsuit said that ultimately Luna made $1.6 million from selling shares, while Montgomery pocketed $1.4 million, Daskivich made $2.4 million, and Murtha made $1.3 million. The SEC also alleges the trio paid Luna $1.7 million in kickbacks.

The SEC is seeking for the four men to disgorge ill-gotten gains, pay civil penalties, and to ban them from future penny stock offerings. The SEC is also seeking for Luna to disgorge fees earned in the offering and to prohibit him from providing legal services on certain securities offerings.

Source: SEC Lawsuit