International Stocks/Hebilla Mining Corp
I recently found a stock certificate for 87 shares of Hebilla MIning corp. The only thing that I can find on-line are articles about certain states prohibiting the sales of the stock is america. Do you know anything about the company and is there any way to get money back?
Hebilla Mining Corp was placed on the SEC's foreign restricted list in December 1970 following the discovery that Robert Colucci was a company officer. Mr. Colucci first got into trouble with the SEC in 1969 when the SEC announced that an indictment was returned in the Federal court in Peoria, IL, charging violations of the registration and anti-fraud provisions of the Federal Securities laws by him and three other people and three companies. In essence, the indictment charged a scheme whereby American shareholders in six dormant Canadian mining companies were solicited, from June 1966 through 1968, to exchange their stock in such companies for securities of Panamanian and European corporations controlled by Michael Meyer Rush. This was against the law in 1969. The court case was reported in the 1971 SEC review which said: "Hebilla Mining Corporation and Cia. Rio Banano, S. A.69 Unregistered shares of these companies were offered to investors in the United States by mail from Costa Rica. Information avail- able to the Commission indicated that a Robert Colucci was an officer of both companies. One Robert Colucci had been indicted in 1969 by a federal grand jury in Peoria, Illinois in a 61-count indictment charging him and five others with conspiring to violate and violating the Federal securities laws and the Mail Fraud Statute by fraudulently selling unregistered securities. The in-dividual defendants have been fugitives from justice since that time" and as such Hebilla Mining Corp was placed on that list.
The next reference is in 1978 when the Milwaukee Sentinel reported on November 17th that the scheme had popped up in Wisconsin. The method of selling sounds very similar to what is termed "boiler rooms" here in the United Kingdom. This is where an outbound call centre sells questionable investments by telephone. It typically refers to a room where salesmen work using unfair, dishonest sales tactics, sometimes selling penny stock, private placements or committing outright stock fraud. The next reference after that is from 1985 when the Supreme Court of Canada heard Libman v. The Queen where the scam was outlined thus: "During the period covered by the informations, Mr. Libman operated a telephone sales solicitation room (or "boiler room") at 43 Menin Road in Toronto, where a number of individuals were employed as telephone sales personnel. Pursuant to Mr. Libman's directions the sales personnel telephoned United States residents and attempted to induce them to purchase shares in two companies, Hebilla Mining Corporation and Claravella Corporation, which purported to be engaged in gold mining in Costa Rica. In addition to the telephone representations, the United States residents also received promotional material which was mailed from Panama City, Panama and San Josť, Costa Rica by associates of Mr. Libman. The telephone sales personnel, on the direction of Mr. Libman, made material misrepresentations with respect to their identity, where they were telephoning from, and the quality and value of the shares they were selling. As a result of these misrepresentations, a large number of United States residents were induced to purchase shares in the two mining companies. There was some evidence tendered at the preliminary inquiry from which it could be inferred that these shares were virtually worthless. The United States residents who agreed to purchase shares were told by the telephone sales personnel to send their money to offices operated by Mr. Libman's associates in either San Josť, Costa Rica or Panama City, Panama. There was evidence tendered that Mr. Libman went to a location outside Canada, usually Costa Rica or Panama, to meet with his associates and receive his share of the proceeds of the sale of the shares. Mr. Libman then brought this money back to Toronto and distributed a portion of it to his sales personnel. There was also evidence tendered at the preliminary inquiry with respect to the wire transfer of monies from Panama City to Mr. Libman in Toronto". The Supreme Court ruled that the appeal against the conviction of Mr. Libman should not be carried.
As a result, I think it is fair to say that the company never existed and that therefore there is no way of recovering the money bar suing the estate of the people who started the fraud back in 1969.