Cytta Corp Announces Corporate Hijacking
On November 5, 2014, Cytta Corp., a (CYTA), filed a report on Form 8-K reflecting that it had been the victim of a corporate hijacking. According to its Form 8-K, Cytta learned that unauthorized persons accessed the Nevada Secretary of State Corporate filing system known as ‘Silverflume’ and altered Cytta’s Officer and Director information.
Additionally, the 8-K reflects that such unauthorized persons attempted to alter Cytta’s Edgar filer protocol. According to the filing, Cytta has made ongoing disclosure of these actions to the appropriate regulatory bodies.
According to Cytta’s Form 8-K:
The Registrant discovered that it was the victim of an online hacking incident on October 30th, 2014 in that, unauthorized person or persons accessed the Nevada Secretary of State Corporate filing system known as “Silverflume” and surreptitiously altered the Officer and Director information contained therein.
The unauthorized person or persons altered the information on Cytta’s corporate report to show ‘Jens Dalsgaard as President, Vanessa Luna as Secretary and Treasurer, Steffan Dalsgaard as Director, Jamison Moore as Director and Erik Stephansen as Director’. Cytta management reports that Mr. Stephansen is a Director, but that all the other names were falsely added without Cytta management or Board approvals. This unauthorized online hacking incident replaced Cytta’s normal Nevada State Officer and Director Information.
On October 31, 2014 Cytta’s Transfer Agent notified Cytta of a Federal filing to change the “PassPhrase” for Cytta on the SEC EDGAR filing protocols. Cytta had not requested or ordered such a change. It became apparent this change was effected based upon the false data the perpetrators had inserted in the Cytta Corporate information in the Nevada Silverflume system. Cytta has now been advised by the SEC that the change was implemented based upon a notarized document provided to the SEC on October 30th, 2014 attesting to the fact that Mr. Jens Dalsgaard was the “President” of Cytta Corp and authorized to make the change.
One way fraudsters hijack a corporation’s identity is by making false filings with the Secretary of State listing themselves or their accomplices as officers and directors. In most, if not all states, including Nevada where Cytta is domiciled, these types of hijackings are felonies and fall under the definition of grand theft. Additionally, the fraudulent filing itself is a felony even when not signed under penalty of perjury. Because of the growing problem of corporate hijackings, states have issued public alerts warning investors and business owners about the risks of corporate hijackings.
Whatever the merits of Cytta’s allegations, hijackings continue to be a growing problem in the penny stock markets. The outrageous nature of the allegations contained within the filing demonstrate the SEC’s failure to adequately address corporate hijackings particularly where penny stocks are involved. Corporate hijackings have left thousands of victims while the SEC has failed to take appropriate action against the corporate hijackers involved.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.
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