SEC ANNOUNCES A COMPLAINT FOR MISLEADING INTERNET WEBSITE

Lying on websites is very common as all Webster persons like I well know. However, it becomes in the eyes of some a criminal activity when selling investments. The following excerpt from the SEC website is an example of a company that is accused of misleading investors via the internet:

“The Securities and Exchange Commission announced the filing of a complaint in federal district court against Copper King Mining Corp. (Copper King), Alexander Lindale, LLC (Alexander Lindale), Mark D. Dotson (Dotson), Wilford R. Blum (Blum) and Stephen G. Bennett (Bennett). The complaint alleges that Copper King and its prior President and CEO, Dotson, authored and distributed false and misleading information on Copper King’s Internet website regarding the company’s ability to produce revenue, its ability to extract significant amounts of copper and other metals, its receipt of an irrevocable purchase order for its copper, and its receipt of a firm funding commitment for $100 million to pay for operations and build an ore processing mill.
The complaint further alleges that Dotson knowingly allowed Alexander Lindale and Blum, a Salt Lake City stock promoter, to issue additional false press releases and conduct an unregistered offer and distribution of Copper King stock. Alexander Lindale and Blum were assisted by Bennett, a disbarred Utah attorney, who authored bogus stock tradability opinion letters when he was not properly licensed to issue such opinions. Bennett’s stock tradability opinion letters were used as the legal authority that enabled Copper King’s stock transfer agent to issue and distribute the company’s stock pursuant to Blum’s instructions.
The complaint also alleges that Alexander Lindale and Blum raised an approximate $12,280,419 in proceeds from Blum’s improper sales Copper King stock from 2008 through 2010. Blum provided Copper King with approximately $9,063,567 in cash or services while Alexander Lindale received approximately $3,291,352 from Blum’s sales Copper King stock. The complaint alleges that Alexander Lindale and Blum also operated as unregistered brokers or dealers.
The Commission’s complaint charges Copper King, Dotson and Bennett with violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 (Securities Act) and Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder. The complaint charges Alexander Lindale and Blum with violations of Section 5(a) and 5(c) of the Securities Act and Section 15(a) of the Exchange Act. The complaint seeks injunctive relief, disgorgement, civil penalties and penny stock bars from defendants.
The Commission acknowledges the assistance of the United States Attorney’s Office for the District of Utah, the Salt Lake Office of the Federal Bureau of Investigation, the Criminal Division of the Internal Revenue Service, Salt Lake Office, and the Bureau of Land Management, Arizona State Office, St. George Field Office, and Salt Lake City, Field Office.”