Replies to post #7176 on Universal Express Inc fka USXP

[puppydotcom]

As far as I know, the receivership action is from the courts decision - started long before some oil deal was announced.

What companies have the SEC scared away - any potential acquisitions?

News to me!

I believe many people posting here have stated usxp has a past history of deals announced and never showing up on company's filings -

Correct me if I'm wrong. I can take it ... lol



Did the SEC cause this one to fail?
Lol



Last fall, Universal made an offer to buy North American Airlines, a passenger charter company. To fund the $1 million good faith deposit, an associate of Altomare agreed to wire $1 million to Universal in exchange for 40 million shares. "With Universal's stock trading at $0.05 at that time, Altomare and [co-defendant Mark] Neuhaus knew that Neuhaus could recover the entire $1 million cost of the deposit by selling 20 million shares even if the deal failed to cause a jump in the Universal's stock price."

According to the complaint, Universal talked North American CEO Dan McKinnon into permitting a public announcement of the pending sale despite confidentiality clauses in the sales agreement. The announcement drove up the price of the stock and Neuhaus proceeded to sell enough shares to cover the $1 million investment and earn an additional $1 million in profit.

The $35.6 million cash deal of North American was never completed. Universal made the $1 million deposit, which was 50 percent refundable if the deal was nixed. At the 45-day mark during a due diligence period, Universal was required to make a second $1 million payment and the sale was to close within 60 days. Universal never made the second payment, said Ken Kelly, an attorney with the New York firm of Epstein Becker & Green, who is representing North American. Altomare turned around and sued North American and McKinnon seeking the return of the full $1 million as well as $160 million in damages. In his complaint, Altomare contends he was denied full access to North American's books. In denying Altomare's claims, McKinnon countersued for libel and lost business, seeking $80 million in damages. While the suits are still pending, Kelly said North American has been dropped as a defend

[rolo731]

Lifegear, we all know that the SEC is afraid to bite the hand that holds their future employment prospects after they leave the SEC. That's not only my oppinion it's a FACT. RTB