9 times out of 10 they don't show up for hearings.
Read the various cease trade hearings for the Provinces or better yet the SEC litigation news. It's rare that anyone puts up a defense mainly because the securities regulators have them nailed cold long before they act. They're almost always slam dunks.
CMKX was one of the few that put up a fight, but many think that was just a ploy to keep the stock trading so that more could be unloaded. They gave up in the end as they had no real defense.
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 20023 / March 1, 2007 SEC v. U.S. WIND FARMING, INC., ET AL, Case No. 05 C 4259 (N.D. Ill., filed July 25, 2005) On February 14, 2007, the Honorable Milton I. Shadur of the United States District Court for the Northern District of Illinois, Eastern Division, entered orders of Final Judgment, by default, against Defendants Michael D. Spadaccini and Oronex, LLC.
The Commission's First Amended Complaint alleged that Spadaccini participated in a scheme to evade the registration provisions of the Securities Act of 1933. Spadaccini, through his company, Oronex, obtained 500,000 shares of U.S. Wind Farming stock in an unregistered offering. Spadaccini, an attorney, purportedly received those shares as payment for his legal services and then quickly sold the shares into the public market. The Final Judgment permanently enjoins Spadaccini and Oronex from violating Sections 5(a) and 5(c) of the Securities Act of 1933. In addition, the Court ordered that Spadaccini and Oronex are jointly and severally liable for disgorgement, representing the ill-gotten gains from the sales of Wind Farming stock, plus prejudgment interest totaling $19,792.83, and a civil penalty of $8,600.
For further information, see Litigation Release No. 19311 (July 26, 2005), No. 19546 (January 30, 2006), No. 19802 (August 11, 2006), and No. 19886 (October 25, 2006).
--------------------------------------------------------------- U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 20024 / March 1, 2007 SEC v. U.S. WIND FARMING, INC., ET AL, Case No. 05 C 4259 (N.D. Ill., filed July 25, 2005) On February 13, 2007, the Honorable Milton I. Shadur of the United States District Court for the Northern District of Illinois, Eastern Division, entered an order of Final Judgment against Defendants Charles S. Flemming, Ashlin Capital, LLC, and Kyoto Capital Group, LLC.
The Commission's First Amended Complaint alleged that Flemming participated in a scheme to evade the registration provisions of the Securities Act of 1933. Flemming, through his companies, Ashlin Capital and Kyoto Capital Group, obtained 102 million shares of U.S. Wind Farming stock in an unregistered offering with the expectation that he would sell the shares into the public market and provide Wind Farming with a portion of the proceeds of these sales. Upon receipt of those shares, Flemming, through his companies, sold the shares into the public market and paid a portion of the proceeds to Wind Farming. Flemming previously consented to entry of a permanent injunction that permanently enjoins him, Ashlin Capital, and Kyoto Capital Group from violating Sections 5(a) and 5(c) of the Securities Act of 1933 and bars them from participating in penny stock offerings. The Final Judgment includes the permanent injunction and penny stock bar, and the Court further ordered that Flemming, Ashlin Capital, and Kyoto Capital Group are jointly and severally liable for disgorgement, representing the ill-gotten gains from the sale of Wind Farming stock, plus prejudgment interest totaling $455,700.59.
For further information, see Litigation Release No. 19311 (July 26, 2005), No. 19546 (January 30, 2006), No. 19802 (August 11, 2006), and No. 19886 (October 25, 2006).
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