SEC Issues 379 Trading Suspensions

On May 14, 2012, the Securities and Exchange Commission issued trading suspensions of 379 dormant companies.  The SEC’s press release explained that the  suspensions were necessary to prevent the dormant companies from being hijacked by fraudsters and used to harm investors through reverse mergers or pump-and-dump schemes.

This move is a highly publicized comprehensive enforcement action ever taken by the agency in a single day.  Observers who check the SEC litigation pages each morning were left open-mouthed at the sight of a very long list of targeted companies.  They ranged from former exchange-listed issues like Cray Computers, Fruehauf Trailer, and Smith Corona-all once household names-to obscure penny stock scams like Firamada Inc., and Stratcomm Media.

Stratcomm had, in fact been hijacked in early 2011.  More than a decade earlier, it and many of the people who worked for it were sued by the SEC for fraud.  The company went dormant around 2000.  But it continued to trade as what some call a “zombie ticker”.  In 2011 a group of amateur promoters decided to try to run the stock.  Knowing its Nevada incorporation had been revoked long before, one of them called a resident agent and arranged to reinstate it.  He did not wish to be named as an officer or director.  He gave only his first name, and paid by Western Union.  His address was a mail drop.  All that was fine with the resident agent and with the state of Nevada.  The stock was successfully pumped and dumped.

That is the kind of thing the SEC wants to prevent.  The 379 companies, all SEC-filers, will be subjected to the administrative proceedings that will result in the revocation of their registration with the agency.  Their ticker will be deleted, and they will stop trading entirely.

“Empty shell companies are to stock manipulators and pump-and-dump schemers what guns are to bank robbers — the tools by which they ply their illegal trade,” said Robert Khuzami, Director of the SEC’s Division of Enforcement.  “This massive trading suspension unmasks these empty shell companies and deprives unscrupulous scam artists of the opportunity to profit at the expense of unsuspecting retail investors.”

 The SEC’s largest previous trading suspension was an order in September 2005 that involved 39 companies.  The federal securities laws allow the SEC to suspend trading in any stock for up to 10 business days.  Subject to certain exceptions and exemptions, once a company is suspended from trading, it cannot be quoted again until it provides updated information including accurate financial statements.

According to the SEC, pump-and-dump schemes are among the most common types of fraud involving microcap companies.  Perpetrators will tout a thinly-traded stock to the marketplace through false and misleading statements about the company to the marketplace.  After purchasing low and pumping the stock price higher by creating the appearance of market activity, they dump the stock to make huge profits by selling it into the market at a much higher price.

The existence of empty shell companies can be a financial boon to stock manipulators who will pay as much as $750,000 to assume control of the company in order to pump and dump the stock for illegal proceeds to the detriment of investors.  The SEC says, however, that with this trading suspension’s obligation to provide updated financial information, these shell companies have been rendered essentially worthless and useless to scam artists.

“This mass trading suspension is an effective and novel way for the SEC to neutralize potential threats to investors,” said Chris Ehrman, Co-National Coordinator of the SEC’s Microcap Fraud Working Group.  “With the ability to leverage staff expertise throughout the agency’s offices and divisions, the Working Group is uniquely positioned to take on risk-based matters like these and focus resources where they are needed most.”

The companies that were suspended by the SEC are:

Issuer Ticker
1. 1-800-ATTORNEY, Inc. ATTY
2. Accessible Software Inc. ASWE
3. Accom, Inc. ACMM
4. AccuHealth, Inc. AHLHQ
5. Adaptive Solutions, Inc. ADPVQ
6. AHSI, Inc. AHSI
7. Ainslie Corp. ANSE
8. American Cattle Co., Inc. ALCC
9. American Interactive Media, Inc. AIME
10. AmeriStar International Holdings Corp. AIHC
11. Angeles Corp. ANGC
12. Aprogenex, Inc. APGX
13. Ardent Communications, Inc. ARDTQ
14. Asante Technologies, Inc. ASNL
15. ASFG, Inc. ASFJ
16. Asia Pacific Engineering SolutionsInternational, Inc. APCI
17. Atlantic Central Enterprise Ltd. ALCN
18. ATM Capitol Co. ATMA
19. Avatex Corp. AVATQ
20. Avisana Corp. AVSA
21. Axtive Corporation AXTC
22. Batterymarch Trust BTYM
23. Bedford Holdings, Inc. BFHI
24. Beijing Logistic, Inc. BJGL
25. Belle Isle Corp. BILSU
26. Ben Ezra, Weinstein & Co. BNEZ
27. Bestway Coach Express, Inc. BWCX
28. Biomedtex, Inc. BMDX
29. BMJ Medical Management, Inc. BONSQ
30. Bon Coeur, Inc. BOCU
31. BRIAZZ, Inc. BRZZQ
32. Buffalo, Inc. BUFO
33. Burr Oak Coal Corp. BOAK
34. Cabo Group, Ltd. (The) CGLT
35. CallNOW.com, Inc. CALN
36. Capital Media Group Ltd. CPMG
37. Capitol First Corp. CFCO
38. Cartis, Inc. CARI
39. CCI Group, Inc. CCIG
40. Centra Capital Corp. CENC
41. CES International, Inc. CSNL
42. Chambersburg Engineering Co. CEGR
43. Chariot Group, Inc. CGRU
44. Chemicorp International, Inc. CHEM
45. Chemtrak, Inc. CTKI
46. China Cable & Communication, Inc. CCCI
47. China TianRen Organic Food, Inc. CTRI
48. ChinaMallUSA.com, Inc. CHML
49. Christian Brothers, Inc. CHBI
50. Ciao Cucina Corp. CIAQQ
51. Clarent Corp. CLRN
52. Clinicorp, Inc. CLNI
53. CNF Technologies, Inc. CNFT
54. Columbia Management Co. CLMB
55. Columbia Ventures, Inc. COVE
56. Commonwealth Oil Refining Co., Inc. CWLO
57. Community Medical Transport, Inc. CMTI
58. Computer Learning Centers, Inc. CLCXQ
59. Computerized Thermal Imaging, Inc. COIB
60. Condor Technology Solutions, Inc. CTSI
61. Continental Information Systems Corp. CISC
62. Conversion Industries, Inc. CVII
63. Country Maid Financial, Inc. CMFI
64. C-Phone Corp. CFON
65. Cray Computer Corp. CRYYQ
66. Creative Gourmet, Inc. CGOM
67. Credit Depot Corp. CDDJ68. Crowley Maritime Corp. CWLM
69. Crowley Milner & Company CWYM
70. Crown Andersen Inc. CRAN
71. Crown City Plating Co. CCPGQ
72. Crown Financial Holdings, Inc. CFGI
73. CTI Technology, Inc. CTIT
74. CybeRecord, Inc. CYRD
75. Data Systems of Oregon DSTO
76. Datatrend Services, Inc. DATV
77. Defense Technology Systems, Inc. DFTS
78. Design Media Technology, Inc. DMTK
79. Digital Armor Inc. DTALQ
80. DNA Medical Technologies, Inc. DNAT
81. dot1Web, Inc. DTWB
82. dotwap.com Holdings Corp. DWAP
83. DualStar Technologies Corp. DSTR
84. Duncan Hill Co., Ltd. DUNC
85. Dunes Hotels & Casinos, Inc. DUNE
86. Dynamic Leisure Corp. DYLI
87. EAC Industries, Inc. EACI
88. Eagle-Picher Industries, Inc. EGLP
89. eChapman, Inc. ECMN
90. EGM International, Inc. EGML
91. Electro Brain International Corp. EBIC
92. Electronic Transmission Corp. ETSM
93. Elsinore Corp. ELSO
94. Emergisoft Holding, Inc. ESHG
95. E-Monee.com, Inc. EMNC
96. Enerphaze Corp. EPHZ
97. Enhance Biotech, Inc. EBOI
98. Enviro Global Corp. ENVG
99. Environmental Asset Management Inc. EVAM
100.ETI International, Inc. ETIC
101.Excal Enterprises, Inc. EXCL
102.Fastlane Footwear, Inc. FSLF
103.Firamada Inc. FAMH
104.Firebrand Financial Group, Inc. FFGI
105.First Look Media, Inc. FRST
106.First Medical Group, Inc. FMDG
107.First Sun South Corp. FSSU
108.Florida Development Fund (1995), Inc. FLDV109.Florida Partners Corp. FPCO
110.Florsheim Group, Inc. (FGI Group, Inc.) FLSCQ
111.Fone America, Inc. FONM
112.Fruehauf Trailer Corp. FTCFQ
113.Future Healthcare, Inc. FHCI
114.Gargoyles, Inc. GOYL
115.General Broadcasting Inc. GNBR
116.General Store International Corp. (The) GSIL
117.Georgia 400 Industries, Inc. GAID
118.Glengarry Holdings Ltd. GLGH
119.Global iTechnology, Inc. GITN
120.Global Teledata Corp. GDAC
121.Gold Lake Mines, Inc. GOLM
122.Grant Enterprise, Ltd. GRET
123.Great Train Store Co. (The) GTRNQ
124.Greenleaf Technologies Corp. GLFC
125.GreyStone Digital Technology, Inc. GSTN
126.Harriet & Henderson Yarns, Inc. HHYN
127.Hartz Restaurants International, Inc. HRII
128.Hayden Hall, Inc. HYDN
129.HealthRenu Medical, Inc. HRUM
130.Helionetics, Inc. HLXC
131.Henley Healthcare, Inc. HENL
132.Hi-Rise Recycling Systems, Inc. HIRI
133.Home Energy Savings Corp. HESV
134.Home Security International, Inc. HMSI
135.Home Solutions Health, Inc. HSHL
136.Home State Holdings, Inc. HOMH
137.HomeGold Financial, Inc. HGFNQ
138.Homeland Holding Corp. HMLD
139.Hubco Exploration, Inc. HBCE
140.Hungarian Broadcasting Corp. HBCO
141.Huntco, Inc. HCOIQ
142.HyperFeed Technologies, Inc. HYPRQ
143.HyperSecur Corp. HYUR
144. iBX Group, Inc. IBXG
145.IFS International Holdings, Inc. IFSH
146.IGIA, Inc. IGAI
147. ImageMatrix Corp. IMCX
148. IMC Mortgage Co. IMCC
149.IMP, Inc. IMPX150.Imperial Credit Industries, Inc. ICII
151. IMT, Inc IMIT
152. Inamco International Corp. IICC
153.Incomnet, Inc. ICNT
154.Industrial Imaging Corp. INIM
155.Industrial Technologies, Inc. INTE
156.Innovative Materials, Inc. INOMA
157.Instruments For Industry, Inc INSF
158.In-Systcom, Inc. ISYX
159.Integrated Information Systems, Inc. IISX
160.Integrated Services Group, Inc. ISVG
161.Integrated Waste Services, Inc. IWSI
162.INTER*ACT Communications, Inc. IAMM
163.Interactive Media Technologies, Inc. IMDI
164.Interactive Television Networks, Inc. ITTV
165.Intercontinental Holdings, Inc. ICLH
166.International Building Concepts Ltd. IBDG
167.International Capital Equipment, Ltd. ICQLF
168. Interpharm Holdings, Inc. IPAH
169. Interspeed, Inc. ISPD
170 .InterWorld Corp. ITWR
171. Intrenet, Inc. IRNE
172. IPTV Corp. IPTV
173.Iridium World Communications Ltd. IRIDQ
174. Istec-Industries & Technologies, Ltd. ISEF
175.IT Group Holdings, Inc. ITGL
176. J.Rish Group, Inc. (The) RISH
177. JEC Lasers, Inc. JECL
178. JPE, Inc. JPEI
179.Kentucky Central Life Insurance Co. KENCA
180. Krause’s Furniture, Inc. KAUSQ
181. Kuala Healthcare, Inc. KUAL
182. L.A. Gear, Inc. LAGR
183.Lady Baltimore Foods, Inc. LDYBA
184. LeaseSmart, Inc. LSMJ
185.Lexington Healthcare Group Inc. LEXI
186.Liberate Technologies LBTE
187.Liberty Group Holdings, Inc. LGHI
188.Liberty International Entertainment, Inc. LIEI
189.LINC Capital, Inc. LNCC
190.Link Energy, LLC LNKE191.LogicalOptions International, Inc. LOGO
192.LogiMetrics, Inc. LGMTA
193.Lois/USA, Inc. LSUS
194.Louisiana Central Oil & Gas Co. LCNTU
195.LoyaltyPoint, Inc. LYLP
196.LTI Technologies, Inc. LTTI
197.LTWC Corp. LTWC
198.Lucille Farms, Inc. LUCY
199.M.POS Inc. MPSN
200.Malibu Entertainment Worldwide, Inc. MBEW
201.Marine Management Systems, Inc. MMSY
202.Marine Sports, Inc. MRSP
203.Marnetics Broadband Technologies Ltd. MXBTF
204.Master Woodcraft, Inc. MCFL
205.Materials Protection Technologies Inc. MTXLF
206.Matrix Denture Systems International, Inc. MDSI
207.MaxWorldwide, Inc. MAXW
208.Meadowbrook Golf Group Inc. MGGI
209.Media 100, Inc. MDEA
210.Media Logic, Inc. MDLG
211.MediaWorx, Inc. MEWX
212.Medical Sciences, Inc. MCLS
213.Medical Technology Products, Inc. MTPX
214.Medra Corp. MDRA
215.Mega Group, Inc. MGINQ
216.Mellin Industries, Inc. MELL
217.Meridian Software, Inc. MSWI
218.Merit Studios, Inc. MRITQ
219.Metals Research Group Corp. MLRA
220.Metro Airlines, Inc. MEAI
221.MidasTrade.com, Inc. MIDS
222.MIIX Group, Inc. (The) MIIX
223.Miniscribe Corp. MINY
224.Miravant Medical Technologies MRVT
225.Mobile Ready Entertainment Corp. MRDY
226.MyGlobalConcierge.com, Inc. MGCG
227.Nahdree Group Ltd. (The) NDRE
228.National Cable, Inc. NCAB
229.National Terminals Corp. NTRM
230.Nelson (L.B.) Corp. NLBC
231.NetImpact Holdings, Inc. NTHD232.NetObjects, Inc. NETO
233.Netplex Group Inc. (The) NTPL
234.Network Connection, Inc. (The) TNCXQ
235.Neuro Bioscience, Inc. NRBO
236.New York & Harlem Railroad Co. NYHA
237.NewGen Technologies, Inc. NWGN
238.Next Generation Technology Holdings, Inc. NGTHQ
239.Nextrata Energy Inc. NXTA
240.North American Building, Inc. NABD
241.Northeast Digital Networks, Inc. GSMI
242.NorthPoint Communications Group, Inc. NPNTQ
243.Nuko Information Systems, Inc. NUKO
244.nVIEW Corp. NVUE
245.Ocean Power Corp. PWREQ
246.Ohmstar Home Lending LLC OMST
247.Omega Ventures Group, Inc. OMGV
248.Omni Multimedia Group, Inc. OMMG
249.One World Nutrition, Inc. OWDN
250.Oneita Industries, Inc. ONTAQ
251.OneLink Corp. OLNK
252.OneSource Technologies, Inc. OSRC
253.Open Plan Systems, Inc. PLANQ
254.Optomedic Medical Technologies Ltd. KPLNF
255.Oriole Systems, Inc. ORLSF
256.OTC Wireless, Inc. OTCL
257.OTR Express, Inc. OTRX
258.Panama Coca-Cola Bottling Co., Inc. PCOK
259.Paper Warehouse, Inc. PWHSQ
260.Pentronics Industries, Inc. PNTN
261.Phoenix Gold International, Inc. PGLD
262.Pilot Therapeutics Holdings, Inc. PLTT
263.Pioneer Commercial Funding Corp. PCFC
264.Plastic Recycling, Inc. PLTK
265.PlayNet Technologies, Inc. PLYI
266.Pluma, Inc. PLUAQ
267.PMD Investment Co. PMDI
268.Portivity, Inc. BRLS
269.Precision Optics, Inc. PREO
270.Preiss Byron Multimedia, Inc. RSVP
271.Presidion Corp. PSDI
272.Pressure Piping Components, Inc. PPCI
273.Prestige Graphics, Inc. PGPI274.PreventCo, Inc. PREV
275.PrimePlayer Incorporated PPYR
276.Princeton American Corp. PAMC
277.Princeton Chemical Research, Inc. PRCH
278.ProMedCo Management Co. PMCOQ
279.Proterion Corporation PROI
280.Public Service Investment & Management Corp. PSIM
281.Publishers Equipment Corp. PEQU
282.Pure Vanilla eXchange, Inc. PVNX
283.Quality Data Processing, Inc. QDTA
284.Radio World Corp. RAWO
285.Receptors, Inc. RCRS
286.Regent Assisted Living, Inc. RGNT
287.Renaissance Capital Group, Inc. RNCG
288.Response Oncology, Inc. ROIX
289.Robomatix Technologies Ltd. RBMXF
290.Rodman & Renshaw Capital Group, Inc. RRSHQ
291.Room Plus, Inc. PLSSQ
292.Royal Palm Beach Colony, L.P. RPAML
293.R-Tec Holding, Inc. RTHG
294.RxBazaar, Inc. RXBZ
295.Sanders Confectionery Products, Inc. SDCF
296.Security Asset Capital Corporation SCYA
297.Seiler Pollution Control Systems, Inc. SEPE
298.Sequel Technology Corp. SEQL
299.Shallbetter Industries, Inc. SBNS
300.Silverado Foods, Inc. SVFO
301.Silvercrest Corp. SLVI
302.Simmons-Boardman Publishing Corp. SBPG
303.SimPlayer.com Ltd. SMPLF
304.SISCOM, Inc. SATI
305.SiVault Systems, Inc. SVTLQ
306.SmarTalk TeleServices, Inc. STKTQ
307.Smith Corona Corp. SITM
308.Smith Technology Corp. SMTQQ
309.SMX Corp. SMXP
310.Solo Serve Corp. SSVR
311.Speaking Roses International, Inc. SRII
312.Specialty Chemical Resources, Inc. SCCS
313.Spectrum Oil Corp. SPOC
314.Spotlight Homes, Inc. SPHM315.Star Entertainment Group, Inc. SREN
316.Stars To Go, Inc. STGO
317.Sterling Business Solutions Inc. STLB
318.Storage Computer Corp. SOSO
319.Stratcomm Media Ltd. SMMT
320.Summit Life Corporation SMLF
321.Sundance Homes, Inc. SDHM
322.Sungroup, Inc. SGUP
323.Sunstyle Corp. SSCO
324.SVC Financial Services, Inc. SVCX
325.Sykes Datatronics, Inc. PSYC
326.TechLite, Inc. THLT
327.Telcoa International Corp. TCOA
328.Teledigital, Inc. TLDG
329.Teletrak Environmental Systems, Inc. TAES
330.Tellurian, Inc. TLRN
331.TeraForce Technology Corp. TERA
332.Terminal Applications Group, Inc. TAGI
333.Top Air Manufacturing, Inc. TPAM
334.Trans World Airlines, Inc. TWAIQ
335.Transco Realty Trust TCRTS
336.Trans-Industries, Inc. TRNIQ
337.Transportation Components, Inc. TUIC
338.TRISM, Inc. TSMX
339.TVC Telecom, Inc. TVCE
340.U.S.A. Floral Products, Inc. ROSI
341.UMC Electronics Co. UMCE
342.UniCapital Corp. UCPC
343.Uniglobe.com Inc. UGTRF
344.UnionFed Financial Corp. UNFD
345.Unison HealthCare Corp. UNHC
346.Unitel Video, Inc. UTLV
347.UniverCell Holdings, Inc. UVCL
348.Universal Automotive Industries, Inc. UVSLQ
349.Value Added Communications, Inc. VACI
350.VECTRA Technologies, Inc. VCTRQ
351.VIA NET.WORKS, Inc. VNWI
352.Vie Financial Group, Inc. VIFI
353.Viral Response Systems, Inc. VRSI
354.Viseon, Inc. VSNI
355.Visicom International, Inc. VSCM356.Vision Technology Corp. VSTCQ
357.Vision Twenty-One, Inc. EYES
358.Vistula Communications Services, Inc. VSTL
359.VR Business Brokers, Inc. VRBB
360.Washtenaw Group, Inc. (The) TWHR
361.Watchit Media, Inc. WMDA
362.Wavex International Inc. WVXI
363.Wayne’s Famous Phillies, Inc. WFPI
364.West Coast Entertainment Corp. WCEC
365.Westbury Metals Group, Inc. WMET
366.Wilshire Technologies, Inc. WILK
367.Winfield Capital Corp. WCAP
368.Wismer-Martin, Inc. WSMM
369.Womens Golf Unlimited, Inc. WGLF
370.Woodroast Systems, Inc. WRSI
371.WorldModal Network Services, Inc. WMDL
372.Worldwide Data, Inc. WWDI
373.Wright (G. F.) Steel & Wire Co. WRGFP
374.Wright (G. F.) Steel & Wire Co. WRGF
375.Wright Brothers Energy, Inc. WOIL
376.XI Tec, Inc. XTIC
377.Xpedior Inc. XPDR
378.York Research Corp. YORK
379.ZeroPlus.com, Inc. ZPLSQ

For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit  www.securitieslawyer101.com.  This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal advice on any specific matter, nor does this message create an attorney-client relationship.  Please note that the prior results discussed herein do not guarantee similar outcomes.

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