Golden State Equity Investors, Inc. (Grifco International, Inc.)
On April 30, 2009, the SEC filed a settled civil action in the Southern District of Texas against Golden State Equity Investors, Inc. (Golden State) for its alleged violations of the registration provisions of the federal securities laws in connection with the common stock of Grifco International, Inc. (Grifco). According to the complaint, Grifco, at the time a publicly-traded company claiming to be an international provider of oil and gas services equipment, issued unrestricted, nonexempt securities to Golden State, in exchange for an up-front monetary advance and a large percentage of the net sales proceeds. Golden State in turn sold the Grifco stock to the investing public and returned a portion of the proceeds to Grifco. None of these securities transactions were registered with the SEC, or satisfied any exemption from registration.
Without admitting or denying the allegations in the complaint, Golden State consented to the entry of a final judgment enjoining it from violating Sections 5(a) and 5(c) of the Securities Act of 1933. According to the final judgment, Golden State paid disgorgement (ill-gotten gains) of $1,269,907, $257,672 in prejudgment interest and a civil penalty in the amount of $50,000.
For more information about the SEC's action, you can read Litigation Release No. 21019 (Apr. 30, 2009).
On March 26, 2013, the Court approved the SEC's proposed Distribution Plan and appointed RG/2 Claims Administration LLC as Distribution Agent to administer the Distribution Plan. If you believe you are eligible to share in the Distribution Plan, you must submit a completed Proof of Claim Form and supporting documents to the Distribution Agent postmarked no later than October 1, 2013. To obtain the Proof of Claim Form, please visit RG/2's website at http://www.rg2claims.com/grifco.html or call (866) 742-4955.