Replies to post #54591 on Starfleet Innotech Inc (SFIO)

[gadawg22]

Wow. SFIO is the only company selling unregistered shares. Give me a break. That's what mm's do - sell unregistered shares. I am about to make a bold statement - almost every company that is trading has unregistered shares on ANY exchange.

[pitadog]

I also think that the current practice of just chilling a stock out of the blue is wrong.... An investor should be notified by his/her broker that this action will happen and allow some recourse.

Agree, but like almost all things in the world, complications of laws, rules, etc. make it very difficult to fix the problem at hand...i.e., we should be draining the swamp instead of fighting alligators.

My only hope is that these actions will shake some of the bad apples out of the tree for good.

Doubt there is a way of total elimination of the bad apples, but imo, there should not be a market where the lack of transparency of company dealings allows for a breeding ground for scammers. I do believe that lowman is correct that the new rules developed by Penson and no doubt soon to be adopted by other clearing firms will force pink stocks to be fully SEC reporting and have audited statements...to the level of the OTC:BB. This should slow down the meteoristic rise in crime within the pink sheet market.

Now how can it be the company that was selling unregistered shares if they were under investigation for 2 years? It just doesn't add up to me.

Dunno, but could it have gone down where the SEC and FBI thought they were selling unrestricted shares for some time, but unable to catch them at it, so set up a sting....or the informant gave them the tip. The rest is history.

[chunky-g]

It's the bad brokers who sell the unregistered shares isn't it? And they're buds with the DTC. I think of it like covering a sports bet instead of placing the bet for someone. Almost all pink stocks go down so it's easy to just sell people shares that you don't even have. I can see how tempting it would be for brokerage houses handling our money to not buy something and say they did.