Replies to post #231802 on Bioelectronics Corp (BIEL)

[4toSchool]

FALSE CLAIM: The SEC clearly disagreed with KW's testimony when they stated that Kelly "ill-gotten gains" Whelan made a nominal, one-time, and undocumented investment in IBEX and never put additional capital at risk".

THE DIVISION OF ENFORCEMENT’S POST-HEARING BRIEF, Pages 18-19
found at this link.

Kelly Whelan personally became wealthy at the expense of uninformed public shareholders. After initially financing IBEX with her own limited assets, Kelly Whelan “bec[a]me very liquid” in 2009 by selling BIEL stock. In 2010, Kelly Whelan had $3.8 million in the bank, “most of” which was the result of sales of BIEL shares. Kelly Whelan used the proceeds of her sales of BIEL convertible notes and shares to fund further monies made available to BIEL, and continued to make loans because the accrual of interest at eight percent and the sales of BIEL securities were profitable to her. Other than her initial (undocumented and nominal) investment, Kelly Whelan never took on any additional investment risk; She simply took the proceeds of sales of BIEL securities and immediately reinvested them in BIEL, effectively replacing the shares sold, with an ability to obtain shares in the future. Despite profiting personally from her sales of BIEL shares and using those sales to fund BIEL’s operating expenses—all while BIEL’s share value was plummeting—Kelly Whelan exhibited no concern for BIEL’s public shareholders, whose interest were being diluted every time BIEL authorized additional shares to provide for IBEX’s conversion rights. Indeed, in the face of the purported DTC chill, Ms. Whelan’s solution was not to stop distributing shares to the public market until the issue was resolved. Instead, she significantly increased the volume of her sales of BIEL convertible notes to Redwood Management, a company that she knew was in the business of buying debt, converting it into shares, and immediately selling to the public market. Despite the fact that Redwood Management could not have sold BIEL shares to investors without her participation in the chain of distribution, Ms. Whelan expressed no concern whatsoever for the impact of this conduct on the investing public, or her own role in getting BIEL shares to the market without registration statements.

[Simpsonly]

All that nonsense falsely creates confusion and misleads.

""Kelly Whelan formed IBEX, LLC in 2005 and is its sole member. Kelly Whelan initially capitalized IBEX with assets of her own and those of her former husband, Robert Lorenz. These assets included personal savings, a home equity loan, credit card advances, and withdrawals from an ERISA 401 K retirement account. IBEX was formed to invest in small capitalization companies after Kelly Whelan learned from her father how such companies were forced to seek capital from lenders at extraordinarily high rates of return. K. Whelan Deel., ifl69."

The questions the SEC then asked related to how much IBEX initially loaned to BIEL, not how IBEX was capitalized! Perfect memory on the 4 specific sources of funds to capitalize IBEX, when it was incorporated, but instant and total amnesia when asked how much the initial loan was to BIEL! Nope, can't remember and have no records whatsoever - absurdity in the extreme, that should satisfy any curious minds. . . .

Doing the right thing to rectify the absurd share structure BIEL is weighed down by removes the stench remaining from the former regime. There were many, many victims of that regime. Fixing the share structure now, before any deals are announced, is a once in a lifetime huge opportunity to do the right thing and become very, very wealthy! Who in their right mind would miss that? Doing the right thing will be well remembered, not doing it will never be forgotten. We're talking lifetime legacy stuff here. . . . you know when. . . .