KMA Global Solutions International (KMAG)

[DragonBear]

I just received a call from the SEC office in New York

SEC DOES NOT ISSUE "No Action" letters for previously suspended companies if an investigation is over!!!!

"No action" letters are never issued in regards to a suspension, regardless of the status of the SEC investigation. Apples and oranges.

They only do that when a company makes a proposal to do something and does not fully understand it's legality.

Correct! Apples and apples!

My experience in speaking with the SEC was the same as yours. I couldn't even put forth a hypothetical "example". Everything was for the most part generic.

"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.

The SEC has taken the maximum action against the stock it can initially - suspension, and a default tossing onto the Greys. Interesting would've been for you to ask the SEC employee what s/he considered as "major"? If one reviews their suspension material, the SEC indicates they prefer to settle through administration action out of court agreements (to be later approved by a court) for penalties. As long as the company cooperates, and a huge fraud involving substantial investor money is not involved, there is no reason for the SEC to take immediate "serious" action.

The LESS LIKELY comes from the SEC position they prefer to open and conclude formal investigations within 60 days, per their own documentation. However, that does not preclude them from opening or progressing to a formal investigation past 60 days, or in KMAG's case past 90 days.

The only party who can tell you the investigation is over is Reid, and he isn't talking. Nothing could be more important than Reid announcing the investigation has been closed. Yet he doesn't. If he claims it's over, and it's still open, then he is in more trouble. Silence does mean something in his case.

Also, if he is now under a formal SEC investigation, then he or his lawyers would no longer be able to state he has never been under SEC investigation. That previous legalize from last December has disappeared. The only other way for stockholders to find out is if Reid files a form 10. If under official SEC investigation, he must disclose it. Unfortunately no form 10, which in turn needs audited financials also MIA.