Whooaaa, nodummy...failure to file is far from fraud. Even Van Broeke states "or could have their stock used for fraudulent investment" which certainly was the story in WTAI's early days back when it was fully reporting. As for No Information, they even state "The No Information (N/I) status means the company is unwilling or unable to disclose information".
During WTAI's latter years, there was absolutely no income whatsoever and the new CEO, Bill Kennedy, funded the monthly expenses out of his own pocket. There was simply no money to pay for expensive audited filings.
The fact that the SEC let them go 6 years without filing tells me that there were no red flags to put them on the SEC radar...until days before the sale of the company to Petro.
Never once did Bill Kennedy ever try to sell a single share even to pay expenses. Insider holdings were always kept current as well as the OS. No one really knew the float thanks to the mess the founder, Doug Norman, left the company in. Even a share audit cost money.
WTAI is now revoked not because it was a fraud but only because Owen went through with the purchase even after the 10 day suspension...but never followed up with the required filings.
Why didn't he? Who knows? The most logical reason would have been the expense but that would have been pretty obvious before the deal was consummated.
Maybe someone would like to call to find out?
I know your post was not directed to me but it goes against my nature to see an honest man's name get tarnished, even as indirectly as this, without speaking up with the facts.
The problem with Van Broeke's Fraud Index is that innocent companies can be listed along with outright frauds. The SEC's Caveat Emptor indicates detrimental info or lack of enough important data for a prudent investor to make an informed investing decision. WTAI fell into that latter category.
Thanks for reading.
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