Important Statement From Island Stock Transfer Founder & CEO
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Important Statement From Island Stock Transfer Founder & CEO

Friday, March 22, 2019 2:25 PM
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Company Update

CLEARWATER, FL / ACCESSWIRE / March 22, 2019 / Island Capital Management, LLC, doing business as Island Stock Transfer (''Island''), a wholly owned Subsidiary of Connect X Capital Markets, LLC.

To our valued clients:

I wanted to write to you to set certain facts straight, to correct misinformation you may be hearing about Island Stock Transfer, and to alleviate concerns you may currently have regarding Island's status as a transfer agency.

You may or may not have heard that Island has recently been sued by the SEC, where the SEC is alleging violations of certain federal securities laws. While we, Island, its employees, and principals, are deeply distraught over the SEC's decision to pursue these allegations, we, in fact, believe the case is both legally and factually flawed and is, in our opinion, an over-reaching attempt at prosecution by the SEC's Division of Enforcement. Given that, it should come as no surprise that it is our intent to defend the case in the federal court system, rather than take the easy way out and negotiate a settlement with the SEC, even a settlement that would permit Island to "neither admit nor deny" the SEC's claims.

In summary, the SEC's case stems from the actions of a group of individuals who - between five and ten years ago - created a number of fraudulent registration statements for companies that the SEC has characterized (only sometimes accurately) as "shells." We can confidently use the word "fraudulent" here because some of these individuals have already been convicted of financial crimes related to their actions. Significantly, Island and its current and prior principals vehemently deny any involvement in (or even awareness of) this fraudulent activity, yet, the SEC seems intent on pursuing the claims. Consider this puzzling fact: before Island ever provided any services to the issuers in question, each one prepared and filed a registration statement with the SEC. Each of those registration statements was declared effective by the SEC itself, yet, today, while the SEC excuses itself from any responsibility for its failure to detect the fraud during the registration review process, it nevertheless maintains that Island should have somehow managed to detect the fraud that it did, or could, not. The representations the companies made to the SEC in support of their respective registration statements - i.e., the representations on which the SEC relied when it declared those registration statements effective - were the same ones Island relied upon in the normal course of its business. Island - just like the SEC - was a victim of the fraud that the individuals behind these issuers were committing. Island was not, as the SEC's complaint alleges, a willing or negligent perpetrator - or aider or abettor - of any fraud.

The simple fact is that, today, the SEC's recent unproven claims have resulted in serious damage to our hard-earned reputation for professionalism and high quality service. They have also created a situation where certain unethical competitors are now spreading false news and rumors about Island in order to benefit themselves by poaching our client base. So, understand this: Island is not going out of business. Island has not been found guilty of any violations. Island intends to defend itself against these allegations.

Island appreciates all of the expressions and offers of support already provided by the multitude of our friends, colleague, and clients. We have, over the past 15 years, always striven to create and maintain a stellar reputation for service and compliance in our industry, and we look forward to that trend continuing in our service to you.

If you have any specific questions relating to this matter, please do not hesitate to reach out to me or your Island representative or relationship to obtain more information.

Thanking you in advance of your continued support,

Micah Eldred
Founder & CEO
Island Stock Transfer / Spartan Securities Group
Connect X Capital Markets, LLC.
15500 Roosevelt Blvd, #303, Clearwater, FL 33760

This message may contain confidential information that is protected by the attorney-client privilege or otherwise. If you are not the intended recipient, you are notified that any disclosure, copying, or use of the contents of this message is strictly prohibited. If this message has been received by you in error, please notify the sender immediately by e-mail and delete the original message. Thank you.



SOURCE: Spartan Securities Group

Spartan Securities Group, ltd.
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