UPDATE: VECTOR HOLDINGS CORP. (OTCBB: VCTH) – ROOM AT THE
TOP
March 18, 2003
Vector Holdings Corporation (OTCBB: VCTH) has gone to shell.
The Company, which once envisioned plans to sell gourmet food over
the Internet and own luxury hotels in Miami’s South Beach,
is looking for a new business to go along with a new president, a
new majority shareholder, and plenty of regulatory baggage.
The latest news reflects fundamental changes at Vector. The Company’s
old management is out. Apparently, so are the remnants of its previous
operations. On March 7, 2003 the Securities and Exchange Commission announced
that Alan Weintraub, who served as Vector’s President,
Chief Executive Officer, Chief Financial Officer and director, has been
barred permanently from serving as an officer or director of any public
company.
Weintraub’s demise represents the latest regulatory blow against
Vector. On October 15, 2002, the SEC filed charges against Vector, Weintraub
and Florida Stock Transfer, Inc. (which was controlled by Weintraub),
charging several violations of the federal securities laws. The SEC complaint
alleged that Vector improperly concealed Weintraub’s checkered
history of felony convictions and unsatisfied judgments by failing to
include that information in its annual report and in a Form S-8 Registration
Statement.
According to the SEC, Weintaub profited from these misrepresentations
by dumping millions of shares of Vector common stock at a profit.
The SEC complaint also alleged that Florida Stock Transfer failed
to maintain, or produce, required records relating to Vector. See Vector
Holdings Corp. – A Hot Potato.
Weintraub, who consented to the order barring him from serving as an
officer or director of a public company, also has accepted SEC Orders
prohibiting him from association with a transfer agent and enjoining
him from future violations of the securities laws.
With Weintraub on the way out, Vector has decided to move in a different
direction. On February 21, 2003 (one day after Weintraub’s officer
and director bar became official), a Utah corporation called Diversified
Holdings X, Inc., paid $25,000 to acquire control of Vector.
According to a Form 8-K filed by Vector with the SEC on March 7th,
in exchange for that payment DHX received 63% of Vector’s outstanding
common stock (40,051,430 shares) and 100% of the outstanding preferred
stock (1,254,857 shares) from Miami Venture Capital, Inc.
and other unnamed parties. Alan Weintraub is the sole officer and
director of Miami Venture Capital. See Vector
Holdings Corp. - Is This Spud Half-Baked?
DHX is owned and controlled by Richard Surber. Mr. Surber has
been involved with several other companies that trade on the Over The
Counter Bulletin Board, including Axia Group, Inc. and Kelly’s
Coffee Group, Inc.
Although Vector will continue to employee Weintraub for up to eighteen
months, he can no longer serve in an executive capacity. The Company’s
new President and Secretary is Gino Carlucci, who presumably
will begin the search for a new business.
The Form 8-K does not indicate whether Vector continues to operate The
Potato Sack, a stuffed potato booth located in a South Florida mall.
In any event, it now appears clear that the stuffed potato business will
not become the foundation for Vector’s future operations.
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