Welcome aboard Stoxrock.
Great to have your first hand knowledge of Wells Notices/SEC suspensions around.
Sounds like he got caught with his hands in the cookie jar and with crumbs on his face!
FROM THE JULY PR FROM JBII:
The restatement concerned the Company’s valuation of media credits, accounting for certain acquisitions, and equity issuances. Based on information obtained from the Enforcement staff, the Company believes that the staff may also recommend naming one or more current and former officers of the Company as defendants in the proposed lawsuit.
notice equity issuances? Usually the SEC will cite backdating or fraudulent documents to illegally remove restrictive legends
this is Section 5 and specifically 5a and 5c of the 33 Act
this means he most definitely violated 17a of the 33act (fraud in the issuance of stock)
Notice one or more current and former officers?
he may have co-conspired with owners of the shell to illegally transfer free trading shares from existing free trading shell stock owners.
This is going to be a 17a, Section 5 and Rule 10b-5 case
JB has been a bad boy...
anticipate an officer and director bar and a penny stock bar on JB.
see, Section 5 has no defense, scienter (knowledge) is not an element of a Section 5 case
All the SEC has to do is show prima facie evidence that Section 5 was violated and:
BURDEN LIES WITH THE DEFENDANT...
so, either u sold restricted stock or not, that's it
reckless disregard is no defense
smells like JB co-conspired with the shell owners and has since illegally removed restrictive legends from certs...
HE IS TOAST...
Anslow and Jaclin, his attorneys are very good
they have prepared him for the worst
he knows hes done already
he is going 4 broke here folks.....
he has nothing to lose anymore
he he has already lost...
July Wells, case could be filed any day now....
