The Securities & Exchange Commission (SEC) has suspended the trading of Connect-A-Jet securities until October 12, due to alleged “deceptive practices” and “inaccurate assertions by Connect-A-Jet.” Paul Montoya, SEC regional director for the division of enforcement, told AIN he could not comment on the specific allegations, but explained that the SEC institutes a 10-day suspension when questions arise regarding a company’s assets, operations or financial information. Furthermore, the SEC will not comment publicly following the suspension because “the company may still have serious legal problems,” and further investigation might be needed. CEO Martin Cantu has been promoting the company with full-page ads in USA Today and TV spots on CNBC for the past month, with claims to “eliminate the world of private jet charter brokers.” Subsequent press releases claim affiliation with companies such as ARG/US, Executive Jet Management (the charter arm of NetJets) and FlightAware. All three companies deny having any association with Connect-A-Jet.
Connect-A-Jet’s Claims Falling To Pieces
- October 2, 2007, 11:30 AM