Paul D. Poetter, et al.

On October 8, 2009, the SEC obtained a permanent injunction against Paul D. Poetter and several entities he controlled in connection with an alleged unregistered and fraudulent securities offering. According the complaint, since at least June 2007, the defendants raised approximately $5.2 million from over 2,500 investors nationwide through the sale of “Trust Certificates” that investors could purportedly exchange for “common shares” of a publicly-traded company.

The SEC alleges that investors were initially told they would receive shares in 4309, Inc., a reporting shell company controlled by Poetter. The SEC also alleges that investors were subsequently told they could exchange their trust certificates for shares of AMs-TEC Acquisitions, a purported Arizona entity that Poetter claimed had a “projected value of $13.5 billion” and was qualified to trade on a Swiss stock exchange. According to the complaint, however, investors never received their promised shares, and Poetter’s claims regarding the projected value and tradability of AMs-TEC stock were false.

For more information about the SEC’s action, you can read Litigation Release No. 21206 (Sept. 11, 2009).

The Court appointed Kelly Crawford as Receiver to collect assets for defrauded investors. At this time, however, it is uncertain whether sufficient funds or assets will be recovered to make a distribution to investors. Investors can monitor the status of the Receivership by visiting Mr. Crawford’s website.