WESTON, FL -- (Marketwire) -- 02/15/11 -- The following stocks related to this release are: PrimeGen Energy Corp. (PINKSHEETS: PGNE), Caliber Energy, Inc. (PINKSHEETS: CLBN), Fidelis Energy, Inc. (PINKSHEETS: FDEI) and Supatcha Resources, Inc. (PINKSHEETS: SAEI).
Recently the Securities and Exchange Commission filed a civil action in the United States District Court for the Southern District of Florida alleging that the stock-promotion company Wall Street Capital Funding LLC (WSCF), its owners and an associate disseminated fraudulent information concerning a series of sham energy companies.
WSCF denies all of the allegations by the SEC and maintains that it always operated above and beyond the requirements of the law throughout its existence -- approximately 10 years now. The claims in this lawsuit are unfounded and without merit and WSCF will aggressively defend against these erroneous claims. Together, the principals of WSCF have over 25 years in the securities industry and have always maintained the highest respect for the integrity of the financial markets and the SEC whose job is to protect the investing public from investment losses as a result of fraudulent scams.
Over the past 10 years, as a result of WSCF's participation in the SEC's investigations of other, unrelated companies, the SEC has had the opportunity to review WSCF's business model, the wording of its disclaimers and promotional materials. The SEC has never before expressed any concern or suggested any wrongdoing by WSCF.
Through these reviews, WSCF has been led to believe that it has been operating in a forthcoming, accurate and transparent way -- exactly what the company has strived to accomplish. WSCF is perplexed now that the SEC has filed a lawsuit with accusations of wrongdoing regarding the very language it tacitly approved and upon which WSCF relied over the years.
WSCF is a marketing firm hired to promote the business of its clients through news releases and promotional materials. WSCF merely aggregates and redistributes third-party news that has already been issued via the wire services or websites. In order to create its advertising material, WSCF performs limited industry research and basic research of the companies being advertised. The SEC appears to be claiming that WSCF had a duty to investigate and ultimately refuse to do business with certain companies that the SEC alleges are fraudulent. "WSCF cannot act as a watchdog over the companies being advertised, and it is unreasonable for the SEC to hold WSCF to such a standard," stated Philip Cardwell, the chief executive of Wall Street Capital.
In its complaint, among other things, the SEC mistakenly characterizes WSCF's role as an objective (unpaid) research analyst. As clearly stated in all its promotional materials, however, WSCF is actually a paid marketing firm. WSCF has never held itself out as a research analyst; to the contrary, WSCF has repeatedly stated in its materials that the information was a "paid release" and that it received compensation for its services, including the fact that the company's stock price may increase as a result of the release and the possible negative impact that WSCF's sale of stock could have on the price.
The SEC has spent countless dollars and time investigating whether a vendor of an alleged scam company violated the securities laws (which WSCF completely denies). Despite the SEC's allegations that the publicly traded companies mentioned in the complaint are scams, their shares continue to trade. Upon learning of the SEC's concerns, WSCF asked the SEC several months ago why it had not shut those companies down. WSCF received no response. WSCF, on the other hand, upon learning of the SEC's concerns, either stopped doing business altogether with the companies in question or performed additional and satisfactory due diligence before honoring its contractual obligations.
Shares of some of the companies that the SEC believes are scams have appreciated significantly. One stock in question recently skyrocketed over 9,000% and traded several million shares a day.
WSCF strongly believes that through this litigation it will be cleared of any wrongdoing and hopes to restore its good reputation that WSCF and its principals have worked so hard to build.
The SEC Litigation Release, which will also provide a link to the complaint in its entirety, can be viewed at http://www.sec.gov/litigation/litreleases/2011/lr21841.htm
Wall Street Capital Funding will be providing additional details in the near future.
For more information, please visit www.wallstreetnewsalert.com/sec
Wall Street News Alert is a division of Wall Street Capital Funding LLC (WSCF). WSCF is not a registered broker/dealer and may not sell, offer to sell or offer to buy any security. WSCF profiles are not a solicitation or recommendation to buy, sell or hold securities. An offer to buy or sell can be made only with accompanying disclosure documents from the company offering or selling securities and only in the states and provinces for which they are approved. The material in this release is intended to be strictly informational. The companies that are discussed in this release may or may not have approved the statements made in this release and may or may not have approved the timing of this release. All statements and expressions may or may not be the sole opinion of WSCF and are subject to change without notice. Information in this release is derived from a variety of sources that may or may not include the referenced company's publicly disseminated information, information supplied by third parties or WSCF's own research. The accuracy or completeness of the information is not warranted and is only as reliable as the sources from which it was obtained. WSCF disclaims any and all liability as to the completeness or accuracy of the information contained and any omissions of material fact in this release. The release may contain technical inaccuracies or typographical errors. It is strongly recommended that any purchase or sale decision be discussed with a financial adviser, or a broker-dealer, or a member of any financial regulatory bodies. Investment in the securities of the companies discussed in this release is highly speculative and carries a high degree of risk. WSCF is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment if they make a purchase in WSCF profiled stocks.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and WSCF undertakes no obligation to update such statements.