Replies to post #20887 on Kentucky Energy (fka QMIN)

[oryx]

From the most recent 10K:

SEC Settlement. On October 31, 2008, we received a Wells notice (the “Notice”) from the staff of the Salt Lake Regional Office of the Securities and Exchange Commission (the “Commission”) stating that they are recommending an enforcement action be filed against us based on our financial statements and other information contained in reports filed by us with the Commission by us for our 2004 year and thereafter. The Notice states that the Commission anticipates alleging that we have violated Sections 10(b), 13(a) and 13(b)(2) of the Securities Exchange Act of 1934, as amended and Rules 10b-5, 12b-20, 13a-1 and 13a-13 thereunder.

On April 8, 2011, the SEC announced that it has agreed to a settlement with us. We entered into the settlement without admitting or denying the allegations set forth in the Notice, as is consistent with standard SEC practice. Under the terms of the settlement, we consented to a cease and desist order from committing or causing any violations and any future violations of Section 13(a) and 13(b)(2)(A) and (B) of the Exchange Act and Rules 12b-20, 12a-1 and 13a-13 thereunder. In addition, we agreed to perform certain undertakings including (i) maintaining at least two independent director so that not less than 2/3 of our board will be independent directors (ii) employing a chief financial officer qualified to prepare financial statements in accordance with GAAP; (iii) notify the Division of Enforcement if our chief financial officer resigns or is terminated or if one or more board members leave such that the board as a whole is not independent and (iv) adopt a system of written internal controls and identify and implement actions to improve the effectiveness of our disclosure controls, including plans to enhance our resources and training with respect to financial reporting and disclosure responsibilities, and to review such actions with our independent auditors.

Even the most minimal DD turns up huge red flags on this company (formerly Quest Minerals and Mining) and the people involved with it. For example, google Tarun Mendiratta. Here's a link to a previous post here:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=40728412[url][/url][tag]link[/tag]

Eugene is the only employee. The coal mine, which was never profitable, is shut down, and Gwenco, the subsidiary that supposedly does the mining, is in bankruptcy. The company has a history of selling billions of shares until they almost reach the authorized limit, and then doing reverse splits. So why would anyone invest in this, or expect the share price to go up for any reason other than pumping?

[Value_Investor]

The totally assets are worthing $5,342,324 or $5.342M+ from the 10-Q!

[grapeman]

I believe someone also posted a few years back that he also served some prison time.