Cobalis Corp., Exchange Act Rel. 64813, July 6, 2011
The Commission took more than a year to decide this appeal. Cobalis' Exchange Act registration was revoked by the ALJ because the company had failed to file periodic reports since 2008. During much of this period it was in bankruptcy proceedings. Despite claims to be able to become compliant it was unable to pay its auditor as late as March 2011.
The ALJ revoked the company's Exchange Act registration by summary disposition without an evidentiary hearing.
The Commission needless to say could have, and should have, summarily affirmed the ALJ's decision. The company failed to become current in its filings despite repeated assurances that it would soon do so. The Commission has previously ruled that when there is a recurrent failure to file periodic reports only compelling evidence will justify a lesser sanction than a revocation.
