Reason for the poor performance - SHUSTEK painted a too positive picture
IN THE MATTER OF VESTIN CAPITAL, INC., VESTIN MORTGAGE INC., AND MICHAEL SHUSTEK
On September 27, the Commission instituted administrative and cease- and-desist proceedings against Vestin Capital, Inc. (Vestin Capital), Vestin Mortgage, Inc. (Vestin Mortgage), and Michael V. Shustek (Shustek). Vestin Capital, a registered broker-dealer, and Vestin Mortgage are both headquartered in Las Vegas, Nevada. Shustek, age 47, of Las Vegas, during the relevant period, was the owner and controlling person of Vestin Capital and Vestin Mortgage.
The Order finds that, from July 2002 through August 2003 and from November 2003 through November 2004, Shustek, Vestin Capital, and Vestin Mortgage offered and sold units in two mortgage funds managed by Shustek and Vestin Mortgage. They sold units in the funds through sales seminars at which they provided prospective investors with information regarding the funds. The information provided to prospective investors included the prior performance of one of the funds being offered and of another related mortgage fund. The information, however, materially overstated the funds' prior performance.
The Commission simultaneously accepted Shustek, Vestin Capital and Vestin Mortgage's Offer of Settlement wherein, without admitting or denying the Commission's findings: (1) Shustek, Vestin Capital, and Vestin Mortgage agreed to cease and desist from violating Sections 17(a)(2) and (3) of the Securities Act of 1933; (2) Shustek agreed to pay a civil penalty of $100,000; (3) Shustek agreed to be suspended from association with any broker or dealer for a period of six months; and (4) Shustek, Vestin Capital, and Vestin Mortgage agreed to comply with certain undertakings, including the retention of an independent consultant to monitor Vestin's Capital's sales materials and the development and implementation of procedures by Vestin Mortgage to ensure complete and accurate information is provided to investors regarding past performance. [In the Matter of Vestin Capital, Inc., Vestin Mortgage, Inc. and Michael V. Shustek. (Rels. 33-8744; 34- 54524; File No. 3-12440)
This is from 2006. What has happened over the past year? Do you suspect Shustek learned his lesson, or do you think he continues his not so honest ways. He seems to buying alot of the stock himself (VRTBD). Why does he do that?