May 26, 2006
For immediate release
PEI Securities Office Obtains Permanent Cease Trade Order Against Everett R. Stuckless, Electronic Benefits Inc. and Advantage Financial Group Inc.
Office of the Attorney General
The Permanent Order hearing followed an earlier hearing on March 29, 2006 when the Office obtained an Interim Injunction by Supreme Court Order against all parties preventing them on an interim basis from trading in securities.
In late 2005 and early 2006, Mr. Stuckless, through his companies, was offering to PEI residents an investment opportunity in his company, Electronic Benefits Inc. Mr. Stuckless promoted an insurance claims adjudication software investment product with a guaranteed return on the investment as well as an 8.5% rate of return. As part of his offering, Mr. Stuckless was soliciting a minimum investment of $2,000 over a minimum 90-day period. The investment was indicated to be guaranteed by Electronic Benefits Inc., Electronic Benefits Inc.ís parent company, Advantage Financial Group Inc. and by Mr. Stuckless personally. Upon becoming aware of this activity, the PEI Securities Office expressed serious concerns and commenced an investigation resulting in their requesting a Cease Trade Order from the Supreme Court.
The Supreme Court has determined that a permanent injunction from trading in securities be issued against Mr. Stuckless and his companies, as based on information presented to the Court, it is in the public interest to do so. At the hearing, the court determined that all parties were in violation of the Securities Act. Although having been served with notice of the Application, the parties did not attend the hearing.
Although numerous Islanders were solicited by Mr. Stuckless, the Securities Office has not yet determined whether Islanders invested in the offering.
The PEI Securities Office Registrar of Securities strongly cautions the investing public to be wary when being solicited with investment opportunities. It is suggested that, when in doubt, the PEI Securities Office should be contacted.
Any inquiries on this matter can be directed to Mark Gallant, Registrar of Securities at 902-368-4552.