US Government Slams Qtrax Owners
The US Securities and Exchange Commission today announced a temporary suspension of trading for shares of Brilliant Technologies Corporation, the parent company of the controversial and the failed Qtrax music service.
The order states that “Brilliant Technologies Corporation (“BLLN”) (CIK No. 1054825) is a delinquent Delaware corporation located in New York, New York with a class of securities registered with the Commission pursuant to Exchange Act Section 12(g). BLLN is delinquent in its periodic filings with the Commission, having not filed any periodic reports since it filed a Form 10-QSB for the period ended March 31, 2007, which reported a net loss of $1,255,936 for the prior three months.”
The SEC says that the “Respondents are delinquent in their periodic filings with the Commission, have repeatedly failed to meet their obligations to file timely periodic reports, and failed to heed delinquency letters sent to them by the Division of Corporation Finance requesting compliance with their periodic filing obligations or, through their failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letters.”
Brilliant has ten days from the date of service to file an answer. A hearing date will be set by an Administrative Law Judge.
By now most people in the digital music business not only know about the ongoing joke that is known as Qtrax and its fearless leader, Australian carney Allan Klepfisz. Many investors on the BLLN bulletin board on iHub have been up in arms about Klepfisz’s reported shenanigans for years. The latest reports have placed Klepfisz and his mini-me Number 2, Lance Ford, in Simcoe, Ontario, a small Canadian town, pitching local investors. According to the reports, Klepsfisz was pitching shares in Qtrax for $0.02 each. However shares in the parent company were selling on the OTC market for less than a penny. This leads to speculation that Qtrax, Brilliant Technologies’ only asset, was being sold from under the shareholders’ noses.
Obviously something was going on and Klepfisz just didn’t want to have to disclose whatever it was in those pesky SEC filings. So he just didn’t bother filing anything.
The government sure does move slowly and I’m sure that Klepfisz may have figured that the SEC has bigger fish to fry. But it certainly looks as though the long arm of the law may have caught up with Klepfisz, that is if they can find him.