Topic: ★ Unnamed.exchange - Unnamed Exchange [Official Thread] ★ - page 11. (Read 19501 times)

stated that Alfa's net losses were $558,493,
its retained earnings deficit was $5,803,728, while total revenues were
$37,538. According to its Form 10-KSB for the year ended December
31,2002, Alfa's net losses increased to $789,511, its retained earnings
deficit rose to $6,610,254, and total revenues for the year were
$53,687. According to its Form 10-KSB for the year ended December
31,2003, Alfa's net losses were $706,801, its retained earnings deficit
rose to $7,444,392, and total revenues dropped to $17,514. The 2001,
2002, and 2003 Forms 10-KSB each contained a going-concern clause.

Lueung marketed the Alfa private placement as separate investments in
securities of Contact Sports and Journey of Light when in fact
customers received shares of Alfa. Lueung told his clients that the
private offering was an initial public offering of securities of Contact
Sports and Journey of Light. Lueung relied solely on the issuer's
representations in recommending the secunties to his customers.
Lueung held himself out to his customers as having conducted an
appropriate investigation and reasonable due diligence into Alfa, but he
failed to do so. In recommending Alfa, Lueung made material
misrepresentations about the company's securities and failed to
disclose material adverse facts that he was or should have been aware
of, including the company's financial condition. Lueung did not
disclose the company's financial condition, as set forth in its Forms 10-
KSB, for example, nor that Alfa was the subject of a going-concern
clause in its financial statements foreach of three years from 2001
through 2003. Lueung made statements about Alfa and its business,
including stock price projections and guarantees, for which he had no
basis.?He-told.one customerthai he should mortgage his house to come
up with the money to buy the stock. He said that the sports and sports
apparel industry was recession-proof. Lueung compared investing in
Journey ofLight's development project in Qatar to investing in Las
Vegas decades ago because both were located in deserts. Lueung also
told at least one investor that he could ignore the risk disclosures in
Alfa's private placement memorandum because they had nothing to do
with Contact Sports and Journey ofLight's business prospects.