Joe Lucid's  Instablog

Joe Lucid
Send Message
Joe Lucid is a contributor to Seeking Alpha and will soon submit a bio. Note: Seeking Alpha editors have contact information for all contributors to enable ongoing communication regarding articles published.
  • AEHI Commits Securities Fraud - Broadly Violates Rule 502(c) And 10b-5 1 comment
    Dec 7, 2010 7:38 AM
    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 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."


    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.

    Disclosure: I am Long AAPL.

    Additional disclosure: Also short AEHI, but system wouldn't accept the symbol
Back To Joe Lucid's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (1)
Track new comments
  • lawndarts
    , contributor
    Comments (4) | Send Message
    Mr. Lucid, I am still researching this stock and I have been reading your blogs with interest. Something about your credibility, however, really troubles me. On the Yahoo board, I noticed someone linking to a blog at alexanderandassociates.../.


    Did you really submit testimony to Payette County under a false name? I've Googled your name and nothing much comes up. You had a stock blog in 2008, but nothing until a few months ago when AEHI then emerged as your main interest in life. I think you have done an amazing amount of research but if you are not being straight with investors or officials about your real name, that is very troubling. Please help me understand as I am kind of new to this.
    11 Dec 2010, 01:34 PM Reply Like
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.