Company with misleading registration statement stopped from issuing stock

The Securities and Exchange Commission (SEC) has issued an order to stop an initial public offering (IPO) of Counseling International before its shares were sold to the public on the basis of the company’s registration statement containing false and misleading information. The registration statement failed to disclose the identity of the company’s control persons and promoters as required under U.S. securities laws. The registration statement also falsely described the circumstances surrounding the departure of the former CEO.

Originally Published: 
22/08/2013