On October 29th, the SEC instituted proceedings to determine whether to issue an order that would prevent sales of shares in Caribbean Pacific Marketing, Inc. based on allegations that the company’s disclosure is misleading. The Division of Enforcement is seeking a stop order to prevent any potential sales of stock under a materially misleading and deficient offering document. Among other things, the Division of Enforcement alleges that Caribbean Pacific’s registration statement is materially misleading because it omits any information about William J. Reilly and his position within the company as a de facto executive officer and control person. The Division alleges that Reilly is a disbarred attorney subject to a court order barring him from any penny stock offering, from serving as a corporate officer and director, and from violating certain federal securities laws. In addition, Reilly was suspended from appearing or practicing before the Commission as an attorney, with a right to reapply after three years. Related criminal charges have also been filed against him. In the Matter of the Registration Statement of Caribbean Pacific Marketing, Inc., SEC Release No. 33-9366; SEC Press Release. According to the New York Times, Caribbean Pacific is the first JOBS Act “emerging growth company” to be the subject of SEC and Justice Department enforcement activity. Dubious First.