The Company now known as Dark Dynamite, Inc. (OTCBB: DDYI) has seen darker days – which may seem difficult to believe, considering the fact that the Company has reverse-split its shareholders into near oblivion, has reported no revenues, and seems inextricably bound to Richard Surber, an individual who the SEC describes as a "shell company promoter." See Dark Dynamite, Inc. - Implosion for Investors.
In its previous incarnations, first as Vector Holdings, Inc., and later as NCI Holdings, Inc., the Company found itself in the midst of regulatory inquiries. In the summer of 2002, Vector claimed that it was "uniquely positioned" to become a key player in the specialty food and hotel industry in South Florida. Vector Holdings Corp. Part I – Is This Spud Half-Baked?; and Part II – Headed To South Beach, Or Just Headed South? As it turned out, there was no basis for those claims – or the hype from promoters who said that Vector was poised for success. Vector's principal operating business was a stuffed potato concession located in the food court of a Florida Mall.
On October 15, 2002 the SEC filed a complaint against Vector and its President and sole director, Allen Weintraub, charging securities fraud. The SEC alleged that the Company had failed to disclose material information about Weinstein's "checkered past," including multiple felony count convictions dating back to 1992, and unsatisfied personal judgments. Update: Vector Holdings Corp. – A Hot Potato. As a result of that action, Weintraub was permanently enjoined from future violations of the securities laws and banned from serving as an officer or director of any public company. Update: Vector Holdings Corp. – Room At The Top. He resigned as President of Vector as of February 15, 2003.
Weintraub's saga came to an end this week – at least as far as the SEC proceedings are concerned. On April 12, 2005, a Florida federal court ordered Weintraub to pay disgorgement and prejudgment interest of $930,000, representing his ill-gotten gains from the securities fraud alleged by the SEC. Weintraub also was assessed a civil penalty of $120,000.
Meanwhile, Dark Dynamite's version of "Groundhog's Day" continues. On April 8, 2005 the Company filed a Preliminary Information Statement declaring its plan to, once again, increase the authorized common stock from 5 million shares to 5 billion shares.
Shareholders must be getting whiplash from following the Company's repetitive machinations. On November 8, 2004, the Company implemented a 1 for 2000 reverse-split, reducing the authorized common stock from 5 billion shares to just 2.5 million shares. Two weeks later, on November 22, 2004, Dark Dynamite amended its Certificate of Incorporation once again, restoring the 5 billion authorized shares.
It was not long before the floodgates opened once again and the Company began to issue the newly re-authorized shares. Then, on March 22, 2005, the Company disclosed plans to implement a 1000 for 1 reverse-split of its common stock – again reducing the authorized shares, this time from 5 billion to 5 million
We wonder whether Weintraub - or the SEC - is watching.
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