Wall Street News Alert: Official Response to the Lawsuit Filed by the SEC
February 15 2011 - 12:07PM
Marketwired
The following stocks related to this release are: PrimeGen Energy
Corp. (PINKSHEETS: PGNE), Caliber Energy, Inc. (PINKSHEETS: CLBN),
Fidelis Energy, Inc. (PINKSHEETS: FDEI) and Supatcha Resources,
Inc. (PINKSHEETS: SAEI).
Recently the Securities and Exchange Commission filed a civil
action in the United States District Court for the Southern
District of Florida alleging that the stock-promotion company Wall
Street Capital Funding LLC (WSCF), its owners and an associate
disseminated fraudulent information concerning a series of sham
energy companies.
WSCF denies all of the allegations by the SEC and maintains that
it always operated above and beyond the requirements of the law
throughout its existence -- approximately 10 years now. The claims
in this lawsuit are unfounded and without merit and WSCF will
aggressively defend against these erroneous claims. Together, the
principals of WSCF have over 25 years in the securities industry
and have always maintained the highest respect for the integrity of
the financial markets and the SEC whose job is to protect the
investing public from investment losses as a result of fraudulent
scams.
Over the past 10 years, as a result of WSCF's participation in
the SEC's investigations of other, unrelated companies, the SEC has
had the opportunity to review WSCF's business model, the wording of
its disclaimers and promotional materials. The SEC has never before
expressed any concern or suggested any wrongdoing by WSCF.
Through these reviews, WSCF has been led to believe that it has
been operating in a forthcoming, accurate and transparent way --
exactly what the company has strived to accomplish. WSCF is
perplexed now that the SEC has filed a lawsuit with accusations of
wrongdoing regarding the very language it tacitly approved and upon
which WSCF relied over the years.
WSCF is a marketing firm hired to promote the business of its
clients through news releases and promotional materials. WSCF
merely aggregates and redistributes third-party news that has
already been issued via the wire services or websites. In order to
create its advertising material, WSCF performs limited industry
research and basic research of the companies being advertised. The
SEC appears to be claiming that WSCF had a duty to investigate and
ultimately refuse to do business with certain companies that the
SEC alleges are fraudulent. "WSCF cannot act as a watchdog over the
companies being advertised, and it is unreasonable for the SEC to
hold WSCF to such a standard," stated Philip Cardwell, the chief
executive of Wall Street Capital.
In its complaint, among other things, the SEC mistakenly
characterizes WSCF's role as an objective (unpaid) research
analyst. As clearly stated in all its promotional materials,
however, WSCF is actually a paid marketing firm. WSCF has never
held itself out as a research analyst; to the contrary, WSCF has
repeatedly stated in its materials that the information was a "paid
release" and that it received compensation for its services,
including the fact that the company's stock price may increase as a
result of the release and the possible negative impact that WSCF's
sale of stock could have on the price.
The SEC has spent countless dollars and time investigating
whether a vendor of an alleged scam company violated the securities
laws (which WSCF completely denies). Despite the SEC's allegations
that the publicly traded companies mentioned in the complaint are
scams, their shares continue to trade. Upon learning of the SEC's
concerns, WSCF asked the SEC several months ago why it had not shut
those companies down. WSCF received no response. WSCF, on the other
hand, upon learning of the SEC's concerns, either stopped doing
business altogether with the companies in question or performed
additional and satisfactory due diligence before honoring its
contractual obligations.
Shares of some of the companies that the SEC believes are scams
have appreciated significantly. One stock in question recently
skyrocketed over 9,000% and traded several million shares a
day.
WSCF strongly believes that through this litigation it will be
cleared of any wrongdoing and hopes to restore its good reputation
that WSCF and its principals have worked so hard to build.
The SEC Litigation Release, which will also provide a link to
the complaint in its entirety, can be viewed at
http://www.sec.gov/litigation/litreleases/2011/lr21841.htm
Wall Street Capital Funding will be providing additional details
in the near future.
For more information, please visit
www.wallstreetnewsalert.com/sec
Wall Street News Alert is a division of Wall Street Capital
Funding LLC (WSCF). WSCF is not a registered broker/dealer and may
not sell, offer to sell or offer to buy any security. WSCF profiles
are not a solicitation or recommendation to buy, sell or hold
securities. An offer to buy or sell can be made only with
accompanying disclosure documents from the company offering or
selling securities and only in the states and provinces for which
they are approved. The material in this release is intended to be
strictly informational. The companies that are discussed in this
release may or may not have approved the statements made in this
release and may or may not have approved the timing of this
release. All statements and expressions may or may not be the sole
opinion of WSCF and are subject to change without notice.
Information in this release is derived from a variety of sources
that may or may not include the referenced company's publicly
disseminated information, information supplied by third parties or
WSCF's own research. The accuracy or completeness of the
information is not warranted and is only as reliable as the sources
from which it was obtained. WSCF disclaims any and all liability as
to the completeness or accuracy of the information contained and
any omissions of material fact in this release. The release may
contain technical inaccuracies or typographical errors. It is
strongly recommended that any purchase or sale decision be
discussed with a financial adviser, or a broker-dealer, or a member
of any financial regulatory bodies. Investment in the securities of
the companies discussed in this release is highly speculative and
carries a high degree of risk. WSCF is not liable for any
investment decisions by its readers or subscribers. Investors are
cautioned that they may lose all or a portion of their investment
if they make a purchase in WSCF profiled stocks.
This release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E the Securities Exchange Act of 1934, as amended and
such forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. "Forward-looking statements" describe future expectations,
plans, results, or strategies and are generally preceded by words
such as "may," "future," "plan" or "planned," "will" or "should,"
"expected," "anticipates," "draft," "eventually" or "projected."
You are cautioned that such statements are subject to a multitude
of risks and uncertainties that could cause future circumstances,
events, or results to differ materially from those projected in the
forward-looking statements, including the risks that actual results
may differ materially from those projected in the forward-looking
statements as a result of various factors, and other risks
identified in a company's annual report on Form 10-K or 10-KSB and
other filings made by such company with the Securities and Exchange
Commission. You should consider these factors in evaluating the
forward-looking statements included herein, and not place undue
reliance on such statements. The forward-looking statements in this
release are made as of the date hereof and WSCF undertakes no
obligation to update such statements.
Wall Street News Alert Email Contact
http://www.wallstreetnewsalert.com
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