Replies to post #6143 on Coates International Ltd. (fka COTE)

[RiverNorth]

LOL - Trading down I see?

[Angkor]

Did you read it?

He was pretty much by himself, trying to hold on to his patents, investments, and other intellectual property, selling his patents to his son for $1 etc.

This is the realization of a long hard road. Have you examined the engine designs and made a determination?

"Coates founded CIL in October 1991. See Pl.'s R. 56.1 Stmt. ¶ 13. Coates is the inventor of the Coates System, a spherical rotary valve system for use in piston driven internal combustion engines. See id. ¶ 16. CIL's business is entirely dependent on the activities of Coates, who at times has been CIL's president, chairman, chief executive officer, and controlling stockholder. See id. ¶ 15. From CIL's inception through November 1, 1995, the Coates System has been the only actual or potential source of operating revenue for CIL. See id. ¶ 19. During the period subject to the rescission offer, Coates and CIL sold a total of 478,350 shares of CIL stock at prices of $5, $10, $20, and $30 per share for a total of $6,578,000 in gross proceeds. See id. ¶ 14."

[MagicStone]

3. Misrepresentations and Omissions Regarding Orders

Coates violated the anti-fraud provisions of the Exchange Act due to his misrepresentations and omissions regarding orders for Coates System engines. The March 24, 1992, March 26, 1992, July 6, 1992, and October 7, 1992 stockholder letters Coates mailed to investors or potential investors indicated that CIL had a substantial number of firm orders for engines equipped with the Coates System. The Commission has demonstrated that CIL did not possess firm orders for Coates System engines at the time these letters were mailed. The Commission also points to Coates' investigation testimony and the registration statement he submitted to the Commission to show that Coates knew his representations concerning the orders were misleading. Coates' misrepresentations concerning firm orders and his omissions concerning CIL's inability to manufacture or sell engines commercially are material since there is a substantial likelihood that such information would be perceived as important by a reasonable investor. See, e.g., SEC v. Research Automation Corp., 585 F.2d 31, 35 & n. 8 (2d Cir.1978); see also San Leandro Emerg. Med. Group Profit Sharing Plan v. Philip Morris Cos., 75 F.3d 801, 810 (2d Cir.1996) ("[M]aterial facts include not only information disclosing the earnings and distributions of a company but also those facts which affect the probable future of the company and those which may affect the desire of investors to buy, sell, or hold the company's securities.") (quoting SEC v. Texas Gulf Sulphur Co., 401 F.2d 833, 849 (2d Cir.1968)).


[137 F.Supp.2d 427]

Coates has failed to show the existence of a genuine issue of material fact concerning the orders. He submits that CIL did possess thousands of engine orders. See Def.'s R. 56.1 Stmt. ¶ 83H. However, his attached exhibit of these orders shows that the orders are either provisional orders or inquiries establishing interest in ordering; Coates' exhibit does not demonstrate any firm orders. See Def.'s Ex. 44. Coates also submits that although CIL could not manufacture engines at the time his statements were made, CIL was capable of entering into licensing agreements. See Def.'s R. 56.1 Stmt. ¶¶ 84-88. However, Coates cannot establish that any licensing agreement was successfully finalized during the time his statements were made.


Ever occurred to anyone that he's done it once already, been arrested for it and could do it again? All he had to do was pay $40K to US treasury, he could pull this again, assuming if he's caught he would only hafto pay the same penalty, which he must've gotten way more of selling shares to u in this dilution scheme.