Respondent further testified that the Commission investigation and resulting Injunctive Action had interfered with his business. Respondent claimed to have learned from his experience, and undertook to remain fully compliant with the securities laws in the future. Respondent explained that his prior securities law violations stemmed from his lack of understanding of the registration process. According to Respondent, investors could not understand the private placement memorandum and requested that he prepare executive summaries for them. If allowed to do so, Respondent intends to solicit further investment in Alpha pursuant to Regulation D. Respondent has retained the legal services of Christopher Moran, formerly a staff attorney at the Commission's Atlanta District Office, and testified that he intends to pay scrupulous attention to Mr. Moran's instructions as to how to remain in compliance with the law.
Alpha has immediate capital needs to further advance sales and purchase inventory.
Alpha contracts the manufacture of its oil filter products to several manufacturing companies, and these companies require an advance cash deposit to fill orders. Alpha also needs additional funds to hire installers, because Respondent can no longer install the products himself due to physical disability. Alpha's oil filters come in different sizes, ranging from four inches in diameter and six inches in length, to eight inches in diameter and thirty-six inches in length. Alpha has focused on marketing its product to the commercial and industrial market. Respondent testified that he has received indications of interest from the U.S. government, and the U.S. Navy in his product.