I just received a call from the SEC office in New York, Steve Johnston (202-551-2000). He was responding to an inquiry I sent a few days ago at the SEC.gov website. While he did reiterate he was not at liberty to discuss specifics regarding KMAG, he did say the SEC DOES NOT ISSUE "No Action" letters for previously suspended companies if an investigation is over!!!! This info comes DIRECTLY from the voice of a living, breathing human being who works at the SEC office in New York!!!!
They only do that when a company makes a proposal to do something and does not fully understand it's legality. The SEC will then issue a "No Action" letter to declare no legal action will be taken against a company should they decide to carry out a certain plan.
He also said "If there was anything major or illegal found, the SEC would have taken more serious action against KMAG by now" .... and "It's safe to say, the more time elapsed after a temporary suspension, the LESS LIKELY it is that the company is still under investigation or that further action will be taken against them." It's been, what, 9 months!! ?? Investigation is OVER in my opinion.
He said KMAG needs to file paperwork with FINRA and get a MM to review the information surrounding KMA to possibly quote them again. Should not be difficult. Jeff just needs to put everything in place in the most opportune time.
Basically, he said what needed to be said, without saying it!! He did not violate the SEC's policies pertaining to non-disclosure of information related to ongoing investigations. He merely gave me general information and applied logic and reason to KMAG's situation. I'm NOT SELLING a single share!!!!
