On February 20, 2019, the Securities and Exchange Commission (the “SEC”) announced the filing of a complaint (the “Complaint”) against a number of persons, including a broker-dealer, a transfer agent, certain of their principals and others (the “Defendants”) for their roles in creating a number of purported “shell companies” between 2009 and 2014.
Although you may represent the same clients with respect to many different “shell company” transactions, look at every transaction as a new and different one; go through the same procedures that you would go through the very first time. It is easy to get complacent where services are repetitive and the clients are the same. Nothing stays the same, and too often people get to creative in ways that are not aligned with applicable law and regulatory interpretations.
The attorneys of the Burningham Law Group have a collective 90 years of experience in mergers and acquisitions, specializing in “reverse mergers.” We have been instrumental in the completion of well over 200 mergers or acquisitions involving publicly-held companies and have served as consulting attorneys to lawyers across the United States that have been involved in similar securities transactions.