The United Stated Securities and Exchange Commission’s staff(“SEC”) has issued subpoenas seeking to obtain certain bank records in connection with its investigation of the Solv-Ex Corporation. The SEC is investigating whether Solv-Ex Corporation or persons associated with Solv-Ex improperly offered or sold unregistered securities, violated antifraud fraud provisions of federal securities laws, and misrepresented or failed to disclose material information to investors. The SEC believes that the restrictive legend was illegally removed from Solv-Ex Chairman John S. Rendall’s restricted Solv-Ex securities. The SEC has evidence that proceeds from potentially fraudulent securities transactions involving Mr. Rendall’s Solv-Ex securities were transferred to and from a number of banks accounts. The SEC is seeking information as to the disposition of those funds. The SEC has more than a reasonable belief that these bank records are relevant to its Solv-Ex investigation. Further, the SEC believes that the records may reveal additional corporations and persons involved in fraudulent Solv-Ex transactions.
In connection with its Solv-Ex investigation, the SEC has issued subpoenas for certain bank records belonging to Waldron Mackey Development Corp. (“WM”) and JMI Designs (“JMI”). On Monday, February19, 1997, Mr. Rendall issued a letter to Solv-Ex shareholders stating the following: “Solv-Ex has not been involved in any way in my relationship with Waldron-Mackey”. In a sworn statement Patrick G. Waldron, President of WM, declares under penalty of perjury that Waldron-Mackey “does have a relationship with Solv-Ex”. In a second and separate sworn statement by Jill Mackey, owner of JMI, declares under penalty of perjury that “My husband’s company, Waldron Mackey Development Corporation, has a direct relationship with Solv-Ex.”
Solv-Ex Corporation (Trading Symbol: SOLVQ) (Price: $14.375)
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