The U.S. Securities and Exchange Commission (SEC) has filed an enforcement case that should remind us all that anyone with a computer and few hundred bucks can issue a press release saying anything.  The SEC has charged Copper King Mining Corp. (Copper King), Alexander Lindale, LLC (Alexander Lindale), Alexander Lindale, Mark D. Dotson (Dotson), Wilford R. Blum (Blum) and Stephen G. Bennett (Bennett) with writing and distributing “false and misleading information on Copper King’s Internet website regarding the company’s ability to produce revenue, its ability to extract significant amounts of copper and other metals, its receipt of an irrevocable purchase order for its copper, and its receipt of a firm funding commitment for $100 million to pay for operations and build an ore processing mill.” According to the SEC:

Dotson knowingly allowed Alexander Lindale and Blum, a Salt Lake City stock promoter, to issue additional false press releases and conduct an unregistered offer and distribution of Copper King stock. Alexander Lindale and Blum were assisted by Bennett, a disbarred Utah attorney, who authored bogus stock tradability opinion letters when he was not properly licensed to issue such opinions. Bennett’s stock tradability opinion letters were used as the legal authority that enabled Copper King’s stock transfer agent to issue and distribute the company’s stock pursuant to Blum’s instructions.

The complaint also alleges that Alexander Lindale and Blum raised an approximate $12,280,419 in proceeds from Blum’s improper sales Copper King stock from 2008 through 2010. Blum provided Copper King with approximately $9,063,567 in cash or services while Alexander Lindale received approximately $3,291,352 from Blum’s sales Copper King stock. The complaint alleges that Alexander Lindale and Blum also operated as unregistered brokers or dealers.

Always remember that the title “press release” does not mean that the information in the release has been vetted by an ethical journalist. You can say anything in a press release. Vigilant investors use press releases only as one of many tools in a thorough due diligence investigation.

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