SEC halts trading of fourth Las Vegas company

Federal regulators have suspended trading in the stock of two more companies linked to Las Vegas and Salt Lake City figures.

The attorney tied to five companies under investigation by the Securities & Exchange Commission said Tuesday he is cooperating with regulators.

Nevertheless, said Salt Lake City lawyer Leonard Nielson, "At this point in time, I can't provide any information to the public."

The SEC said the latest companies suspended from stock trading are Golden Mountain of Los Angeles and Metro Match of 2725 South Jones, Suite 110, in Las Vegas.

Both companies issued press releases from London Jan. 15 similar to those distributed that day by three other Las Vegas companies whose trading has also been suspended.

The Golden Mountain release said it had bought unidentified chemical and polyester companies, while Metro Match said it acquired two Far East chemical and metallurgical companies but didn't name them.

The releases were similar to those issued by Shebolt International Inc., Redwing Inc. and CPR Corp., all of 6767 West Tropicana, Suite 207. That's also the office of Las Vegas accountant Paul Andre, who was listed as an officer and director of some of the firms.

Last week, after trading in Shebolt, Redwing and CPR was halted, Andre said he'd sold the three companies to Nielson. Nielson said Tuesday, "Nothing was sold to me. I'm just an attorney who did the documentation (on the sales)."

He said "documentation" for one of the companies is now being provided to the SEC, though he didn't disclose which company. Ron Wood of the SEC's Enforcement Division said today he couldn't confirm or deny Nielson's statement.

Nielson also said, "A considerable amount of information has been provided to broker-dealers," though he wouldn't identify them.

The primary market maker for the five suspended stocks is National Capital of Oklahoma City, according to the SEC.

"We have companies that have been suspended by the SEC and don't want to jeopardize our position," Nielson said. "That's why we've taken a 'no-comment' position. It would be grossly inappropriate for us to put out any other information."

It was a lack of information that prompted the SEC to suspend trading in the five companies after their stocks had posted large gains in unusual activity on over-the-counter bulletin board trading.

The bulk of the price increases came before Jan. 15, when the companies issued one-paragraph announcements that they'd acquired unnamed companies.

The commission's notice of suspension of trading cited the SEC's concerns over "the adequacy and accuracy" of the companies' announcements and the identities of the people who control them.

The SEC said anyone with information about the matter can call the SEC's Pacific Regional Office.

In past penny stock "pump-and-dump" schemes, market makers have run up the price of the stock with artificial trades, shorted it, and then pocketed the money when the price declined to zero.

"Our chairman has recently been talking about the danger of day trading," the SEC's Wood said. "A lot of people sit at home at the computer and watch the momentum of particular stocks, hoping to buy on an uptrend and get out by the end of the day.

"Unfortunately, if you bought a stock whose trading we suspended, you're left taking the loss."

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