The SEC announced today, in a press release, that it has instituted Stop Order Proceedings against two of Richard Rappaport‘s Westpark Capital WrASP deals. To catch up on Buyersstrike! coverage of Westpark and it’s special brand of reverse mergers, dubbed WrASPs, see here, here, and here.
According to the SEC release:
Washington, D.C., June 13, 2011 – The Securities and Exchange Commission today announced that it has instituted proceedings to determine whether stop orders should be issued suspending the effectiveness of registration statements filed by two companies – China Intelligent Lighting and Electronics Inc. (CIL) and China Century Dragon Media Inc. (CDM).
The purpose of a stop order is to prevent a company or its selling shareholders from selling their privately-held shares to the public under a registration statement that is materially misleading or deficient. If a stop order is issued, no new shares can enter the market pursuant to that registration statement until the company has corrected the deficiencies or misleading information in the prospectus.
Both companies mentioned in the SEC release remain halted since March. Two other Westpark deals, ZST Networks (ZSTN) and Highpower (HPJ) miraculously still trade.