Another pink sheet cautionary tale

[DesertCat]

Interesting story that once again calls out the kind of scum that you can run into in the worst penny stocks. It also begs the question, why are the most virulent anti-naked shorting fear mongers so often questionable characters like this guy?

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If you’re new to this lovely company, you can read a column I wrote on the suit filed against it by the Securities and Exchange Commission. For a dissenting view, you can look at full page ad it ran in The Times. Basically, Mr. Altomare claims that there is a massive conspiracy against his company because he dared to expose naked short-selling.

A federal judge appointed a receiver, Jane W. Moscowitz, and she has now reported that “none of its operations are profitable” and that the company did not have enough money to make its payroll. She says Mr. Altomare told workers she was lying.

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Floydd Norris - New York Times

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In its latest quarterly report filed with the Securities and Exchange Commission, Universal reports that its suit against the S.E.C., and an S.E.C. suit “against certain officers” of Universal, “are pending.”

It does not mention that the company itself is also a defendant in the S.E.C. suit, nor that during the quarter in question a federal judge in New York ruled that the company and the officers had violated securities laws and ordered them to pay $21.9 million.

The judge described Universal’s chief executive, Richard A. Altomare, and its general counsel, Chris G. Gunderson, as “repeated and remorseless violators” of the securities laws. He barred Mr. Altomare from being an officer or director of any public company, and barred both men from being involved in sales of penny stocks. None of that is mentioned in the quarterly report.

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