SEC Files Second Subpoena Enforcement Against MicroCap Attorney
According to the SEC’s application and supporting papers, filed on July 20, 2017 in the U.S. District Court for the Central District of California, the SEC is investigating, among other things, whether Coldicutt, or others associated with Green Cures & Botanical Distribution, Inc., which is quoted on OTC Link under the ticker symbol “GRCU,” may have engaged in antifraud violations. The SEC’s court filings also state that Coldicutt and others may have prepared and filed documents, including quarterly and annual reports and attorney letters, which contain false and misleading public statements about GRCU’s management and the existence and identity of control persons.
As part of its investigation, the SEC staff served Coldicutt and his law firm with subpoenas requiring the production of documents related to GRCU. According to the SEC’s application, Coldicutt and his law firm have failed to respond to the subpoenas and have produced no documents. The SEC’s application seeks an order from the court compelling Coldicutt and the law firm to produce all responsive documents.
This is the second subpoena enforcement action that the SEC has filed against Coldicutt and the firm for failure to respond to SEC subpoenas. On May 4, 2017, the SEC filed a subpoena enforcement action against Coldicutt and the firm seeking an order from the court compelling Coldicutt and the law firm to provide additional information to support their refusal to produce certain documents on the basis of attorney-client privilege. On June 8, 2017, the court ordered Coldicutt and the firm to provide the information by June 22, 2017, but they failed to do so. A further hearing on the SEC’s application is scheduled to take place in that action on July 31, 2017.
The SEC is continuing its fact-finding investigation and, to date, has not concluded that anyone has violated the securities laws.
Learn more HERE.