regulatory
confidence high
sentiment negative
materiality 0.75
SDR Drone halts Reg A offering after finding 2014 California, 2018 South Carolina regulatory orders
HALLMARK VENTURE GROUP, INC.
- South Carolina Consent Order (July 27, 2018) permanently bars the company from the securities business in South Carolina; $25,000 investor payment and $5,000 penalty were paid.
- California Desist and Refrain Order (Nov 25, 2014) found respondents raised over $800,000 from 50+ investors, misrepresenting guaranteed $1.00/$2.00 resale prices.
- Robert L. Cashman, former officer/director named in both orders, has had no role at the company since 2020; Service Team, Inc. is not an affiliate.
- Rule 262 disqualification blocks the pending Regulation A offering; company suspended sales, requested relief from South Carolina and will seek a Reg A waiver from SEC Corp Fin if needed.
- Reg D is also affected: the South Carolina order disqualifies Rule 506 offerings until relief is granted; the California order's 10-year look-back expired Nov 25, 2024.