CEP ---> Balance Sheets?

[mercinary]

I'm no businessman, so I don't know what is required of certain business types. Public companies are required to divulge their balance sheets to the public I believe.

Is an LLC like CEP required to divulge financial information?

-Merc

[MtnGrl]

I am for the most part uneducated in this area, but my guess is that right now the only people who need to see the balance sheets are the SEC.

[littleroundman]

No, the use of the term "Registered LLC" is one of the most commonly used "misdirections in this whole HYIP/Autosurf arena.

A limited liability company (denoted by L.L.C. or LLC) in the law of many of the United States is a legal form of business company offering limited liability to its owners. It is similar to a corporation, and is often a more flexible form of ownership, especially suitable for smaller companies with a limited number of owners. Unlike a regular corporation, a limited liability company with one member may be treated as a disregarded entity, so the member is often singled-out as a person performing the actions of the LLC. A limited liability company with multiple members may choose, generally at the time that the new entity applies for a US federal taxpayer ID number, to be treated for U.S. federal taxation purposes as a partnership, as a C Corporation, or as an S corporation. An LLC can elect to be either "member managed" or "manager managed."

So, an LLC is neither required to provide balance sheets to the public, nor does it provide any sort of protection to it's members.

HOWEVER, neither does LLC status provide any protection against prosecution for unlawful activities.

CEP has been engaged in the illegal sale of securities, and will probably charged under the following acts, similar to those charges so far lodged against 12 Daily Pro:

Sections 20(b),
20(d)(l) and 22(a) of the Securities Act of 1933 ("Securities Act"), 15 U.S.C.

77t(b), 77t(d)(l) & 77v(a), and Sections 2 1 (d)(l), 2 1 (d)(3)(A), 2 1(e) and 27 of the Securities Exchange Act of 1934 ("Exchange Act"), 15 U.S.C.
78u(d)(l), 78u(d)(3)(A), 78u(e) &78aa. Defendants have, directly or indirectly, made use of the means or instrumentalities of interstate commerce, of the mails, or of the facilities of a national securities exchange, in connection with the transactions, acts, practices, and courses of business alleged in this complaint.

[Accountant]

Not quite right...an LLC is not required to present audited financials to anyone, UNLESS it is offering investments to the public, in which case they have to file a full prospectus with balance sheet, income statement, statement of cash flows, statement of inside ownership, biographies of owners of more than 5% of the partnerships by equity, biographies of the general partners etc..

[Accountant]

Well, I must have been out of my head when I wrote that, it was almost correct. An LLC DOES indeed have to provide full disclosure documents to all of it's participants (the partners), and to anyone from whom it solicits funds for investment. There are a lot of regulations from the Federal Reserve, too, if they are using the banking system.

[littleroundman]

Well, I must have been out of my head when I wrote that, it was almost correct. An LLC DOES indeed have to provide full disclosure documents to all of it's participants (the partners), and to anyone from whom it solicits funds for investment. There are a lot of regulations from the Federal Reserve, too, if they are using the banking system.

You're absolutely right, of course.

Mine was a very clumsy attempt to point out that "LLC" status does NOT provide the degree of protection to its' "creditors" that HYIP operators/players in general and "Trevor" in particular have worked very hard to "imply"

I was not even considering the "solicitation of funds/provision of full disclosure" matter, it's the least of CEPs' problems right now.

The use of the "LLC" status to infer legitimacy among HYIPs is just another thing that has irked me for some time.

I'm beating myself senseless as we speak, on your behalf.