Could trouble be on the horizon…

Lions, Tigers, and Bears… Oh my !   Could difficult days be ahead for Mr. Samblis, CEO of IC Places, Inc. (ticker PNCH) ???

Here is a post on Investors Hub that quotes an article from the Wall Street Journal entitled “SEC Casts Wide Net in Probe of Microcap Stock“.   In the article it states “The Securities and Exchange Commission is investigating the auditor of Cynk Technology Corp”.  Guess who the auditor was… Mr. Peter Messineo.  Recognize that name from anywhere?  How about here: (click to enlarge)

Messineo_CFO_PNCHThis is where it gets interesting, and could cause some difficult days for Mr. Samblis.  If you have ever followed high profile prosecutions , you will know that the authorities nab a key figure, like an accountant in the organization, then under the treat of harsh punishment, they cut a deal with the authorities to reduce or eliminate their punishment for rolling over on the principals.  This is a smart move of the SEC.  It is likely much harder to hold the principals accountable for any wrongdoing because they are insulated somewhat by the people they have work for them.  However, get one of them to roll over on the boss, and now its a different ballgame.

Now… as the article states, Mr. Messineo has not been accused of any wrongdoing.  However, as you know the SEC would not be saying he is a target of their investigation, while it is ongoing.  It is well known that the SEC keeps the details of their investigations close to the vest until enforcement action has commenced.  So… stay tuned.

There was an interesting quote from Mr. Messineo in an Bloomberg article here.

Messineo_Quote“...doesn’t always follow what happens to shell companies after he audits them“.  Wow… so is he saying PNCH is a shell company ?  This is an interesting quote from the former auditor of PNCH.  It seems as though Mr. Messineo has already begun to distance himself from previous companies he audited.  One wonders if he has any allegiance to his former boss Mr. Steven Samblis.  If put in a squeeze by the authorities… will he maintain any loyalty to Mr. Samblis.  One would think he likely knows where any skeletons may be buried.

One needs to put this article into perspective with other such recent articles relating the the  SEC enhanced enforcement activities of penny-stocks.  It would appear the SEC has penny-stocks in their cross-hairs, and if not actively investigating specific companies, its radar of such has been turned up a notch or two.  It appears they are getting serious about cleaning up the penny-stock side of the stock market.  This will spell bad news for companies that their primary product is selling shares of the company to fund a CEO’s lifestyle.

By the way… Mr. Samblis has been unusually quiet on the message boards lately.  One has to wonder why.  Bueller…. Bueller…. Bueller ?


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