From: Phillip A. Hall
Petition for Commission Action to Protect the Investing Public from Unlawful and Deceptive Securities Promotions
Pink Sheets LLC ("Pink Sheets") has petitioned the Securities and Exchange Commission (the "Commission") to take immediate action to protect investors and prevent inequitable and unfair practices in the market for over-the-counter ("OTC") securities. Specifically, Pink Sheets has requested that the Commission exercise its authority under Section 19(a) of the Securities Act of 1933 (the "Securities Act") to promulgate a rule (the "Proposed Rule") under Sections 5 and 17 of the Securities Act to expose and prevent unlawful and deceptive activities by securities promoters and their sponsors.
"[I] believe that putting these straightforward requirements in place will enable investors to easily identify fraudulent stock promotions and unveil the miscreants who engineer them. Any company that does not have current information available has no business promoting its securities, since investors cannot make reasonable investment decisions in an information vacuum. By cutting off the ability of promoters, sponsors and affiliated parties to dump these stocks into the market, the rule will render fraudulent promotions unprofitable and set the stage for legitimate small company issuers to deliver information to the marketplace,".
Phillip A. Hall, CPA, CMA, Principal