SEC halts Beverage Creations trading in anti-spam initiative

Last update: March 12, 2008 - 8:41 PM

The Securities and Exchange Commission (SEC) temporarily suspended trading in the stock of Beverage Creations Inc. Wednesday, citing the possibility of manipulation in the stock's trading.

The suspension, described as part of the agency's anti-spam initiative, was effective immediately and will last until March 25.

An investor-relations representative for Beverage Creations, a St. Paul-based sports beverage developer, said he hadn't had a chance to review the SEC announcement and had no comment.

The SEC said it is concerned about the possibility that the market for Beverage Creations stock may be reacting to manipulation or deception, and the commission said there is a lack of current and accurate public information about the company.

"In particular," the SEC said in a news release, "questions have been raised regarding a widely distributed promotional mailer touting [Beverage Creations'] stock, several stock-promotion websites that have featured [Beverage Creations] and a press release issued by [Beverage Creations] disclaiming its affiliation with the company that distributed the mailer."

On Feb. 21, Beverage Creations issued a news release disavowing knowledge of any connection to "Jason Wynn or his company, Wynn Industries." The company said that Wynn had sent direct mail regarding the company's stock.

Wynn and his attorney weren't immediately available for comment.

Beverage Creations stock, which trades over the counter, closed Tuesday at $1.83 a share.

DOW JONES NEWS SERVICE

Recent Business stories

14 charged with illegal purchases of 77 million cigs, 2 charged with soliciting hit man - March 12, 2008

14 charged with illegal purchases of 77 million cigs, 2 charged with soliciting hit man - Fourteen people have been charged with illegally purchasing 77 million contraband cigarettes from undercover agents in Virginia and smuggling the cigarettes to New York. More