It was Bronson E-Lionheart et al (Fairhills Capital) NOT ICBT who were charged with violating securities laws. According to section 29 of the actual SEC complaint filed, the following is the true content of what transpired with ICBT--the Defendants in the complaint are: Bronson E-Lionheart and Fairhills Capital:
Quote: 29. Defendants engaged in at least 11 additional transactions with ICBT of similar type between September 2009 and May 2011 and resold the shares to the public without registration or a valid exemption. In total, Defendants' unregistered and illegal sales of ICBT stock to the public netted gross sales proceeds ofapproximately $960,000 and illegal profits of $325,000. http://www.sec.gov/litigation/complaints/2012/comp-pr2012-165.pdf
It is abundantly clear that Bronson et al failed to observe the 12 months holding rule under Rule 144, relied on exemptions that were not available to them (Delaware State Law) and further used various attornies to issue legal opinion letters to remove the restrictive legends off of certs to make their shares free trading immediately (within days, not 12 months) after obtaining them.
The current O/S and Float of ICBT appears to have been created solely by Bronson et al's activities between 2009 and 2011, and due to SEC's litigation against this group (not ICBT) and possible variances existing at the DTCC, this security is currently available through a selected number of brokers.
You will also note that the Commission is seeking the following relief: Quote: 4. The Commission seeks a final judgment (a) permanently restraining and enjoining Defendants from violating Sections 5(a) and 5(c) of the Securities Act; (b) ordering Defendants and Relief Defendant, on a joint and several basis, to disgorge their ill-gotten gains with prejudgment interest thereon; (c) ordering Defendants to pay civil money penalties, pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)]; and (d) permanently prohibiting Defendants from participating in any offering ofpenny stock, pursuant to Section 20(g) of the Securities Act [15 U.S.C. § 77t(g)].
Disgorgement charges upon recovery go to those who were affected by this type of unjust enrichment. They include former investors/shareholders and the issuer (ICBT) in this case. We are talking both civil penalties and punitive damages which could result in a substantial monetary recovery to ICBT.
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