Ocata Therapeutics Inc fka OCAT

[Michael Hunt]

This is bad.. if you look at the detailed pdf
http://www.sec.gov/litigation/complaints/2012/comp22381.pdf
it alleges Caldwell submitted false filings etc related to these transactions. I was hoping maybe ACTC was the innocent victim in this, but the filings by Caldwell make it clear he was fully aware of what was going on, and intentionally misled the SEC and others.

Page 44 shows approximately $10m gained from these transactions.

Page 51 states all profits gained to be disgorged (that would be the approx $10m), plus interest, plus civil penalties.

If SEC penalties & interest are anything like the IRS, this could easily double the initial $10m gained.

So, exposure appears to be at least $10m, and likely much much more.

I do not think ACTC has this kind of money in hand, let alone be able to continue operations after paying. I would guess the options now are massive dilution in the order of at least several hundred million common shares, and/or new toxic financing, or filing chapter 11. Either way, it's very bad for shareholders.

I don't know how Rabin is going to deal with this, and forget about listing to NASDAQ any time soon.

Gee Caldwell, your legacy just keeps coming back to bite us again and again. You were once considered with admiration by myself and others, but those days are long gone for me.

After the recent settlements, I believed the troubles were over and ACTC was in the clear, and I went "all in" with most of my portfolio as a result. I expect in a few hours I may be significantly wiped out. How am I going to face my wife and my 3 month old daughter and tell them everything is gone? Thanks so much...

I feel sick.