As already teased yesterday I have discovered a truly egregious transgression by AEHI and Don Gillispie. You will remember that as I've outlined here and here "Don - no-comp - Gillispie" is on a crusade to con individual investors into purchasing shares from what can only be assumed to be insiders of the company.
In my view yesterday's paid promotion in which Don stated that "I can rival Exxon Mobil in profitability" was clearly misleading and fraudulent. But what would turn this into a full blown violation of rule 502(c) and rule 10b-5 - that is securities fraud - is a general solicitation of investors to purchase publicly traded stock or contact the company about private offerings.
Get this: AEHI distributed this flyer on Saturday, 11/13, to all 210,708 readers of the Investor's Business Daily, a national investor oriented newspaper in the US. The newspaper confirmed the advertisement and provided it by fax to me (excuse the low quality).
Please read it in full, but here are a few excerpts:
"Our plant is estimated to generate about $3 billion dollars a year."
"Be part of it. Turn this page to learn about investment opportunities."
"Other sources like coal and hydro are being closed down at dramatic rates, which makes nuclear power the only option that can fill the void. It also means nuclear becomes a tremendous investment opportunity with excellent return potential."
"In addition to the opportunity to purchase publicly traded stock, there are a number of investment options - with participation from direct investments between 100 million USD and two billion USD and approximately eight billion USD in financing."
"CONTACT INFO: firstname.lastname@example.org"
Other than a statement that this is advertisement there is no disclaimer whatsoever.
If this isn't an offer by general advertising in "Any advertisement, article, notice or other communication published in any newspaper, magazine, or similar media or broadcast over television or radio" I don't know what is (illegal according to rule 502(c)).
And together with the claims in yesterday's promotion and the fraudulent claim of $3B in annual profit it's clearly an "untrue statement of a material fact" "in connection with the purchase or sale of any security" (illegal according to rule 10b-5).
We're entering the end game. To borrow from "Monopoly" it will soon be: Go to jail. Go directly to jail. Do not pass go, do not collect $200.