Home >> Stock Forums >> USXP - Universal Express enters receivership

USXP - Universal Express enters receivership

lil dickie said: "If you are familiar with penny stocks that have been pumped you probably have heard of Universal Express. Today the company was ordered into [url=http://www.bizjournals.com/southflorida/stories/2007/09/03/daily11.html]receivership[/url] [quote] [B]Universal Express (OTCBB: USXP) issued a press release[/B] vowing to file a motion to stay Lynch's ruling in appeals court. The company appealed the judge's earlier ruling in the civil case, brought by the Securities and Exchange Commission, that it sold unregistered securities and issued false and misleading press releases. That resulted in fines against the executives and the company totaling $25.7 million, and injunctions demanding that the company stop the violations, [B]Altomare and Gunderson not participate in penny stock offerings, and that Altomare resign[/B]. The SEC argued that the defendants violated all of these orders - and Lynch agreed. "The repeated actions of defendants demonstrate not only defendants' clear lack of respect for the orders of this court and federal securities laws, but also the necessity of this court's judgments remaining in full force pending appeal," Lynch wrote in his ruling. [/quote] Of course they issued a press release. If issuing a press release made money they would be rich by now. Altomare remains defiant. [quote] The receiver can forcibly take control of the company and dismiss any employees, but the receiver doesn't have to shut the company down. Sometimes receivers have kept companies going for more than a year, Sallah said. Altomare said in a release that Lynch's ruling should be overturned in favor of a jury trial on the issue of naked short selling - which is when investors short sell stocks they don't own or borrow. The company believes the SEC is persecuting it because it was outspoken against it. "The actual legal merits of this case do not necessitate this draconian action," Altomare said. "It will be the responsibility of a full hearing, not one misinformed appointee, to determine the future of our 23-year-old company." [/quote] Ouch. Anyone ever have stock in this?"

Rbreb13 said: "[QUOTE=lil dickie]Ouch. Anyone ever have stock in this?[/QUOTE]I have, I have. Rode a couple million shares or so between .0005 and .004 before getting out. Flipped many times during that run. Back in Jan. '06."

lil dickie said: "I confess I had it for awhile. I made a few bucks when they pumped the news about the "big judgment" they won from the one guy."