AIDS treatment firm’s stock still trading nationally

David Strow

Wednesday, Aug. 25, 1999 | 10:42 a.m.

The state has suspended trading of shares of Uniprime Capital Acceptance Inc. of Las Vegas because of a series of allegedly dubious press releases from the company saying it had reached a breakthrough in the treatment of AIDS.

The suspension only prohibits trading of the Las Vegas company's shares in this state. Uniprime shares continue to trade over-the-counter under ticker symbol "UPCA."

"The viability of the stock market is based on full and fair disclosure so investors may make informed decisions," Secretary of State Dean Heller said. "At this point there is insufficient reliable information available to investors to allow them to make an informed investment decision relating to the securities of Uniprime."

The freeze on the sale of Uniprime stock will continue until the company registers its shares in Nevada. The Securities and Exchange Commission sued Uniprime in New York earlier this month, accusing the company of securities fraud. A federal judge issued a temporary restraining order against Uniprime Aug. 13 freezing its assets. Trading in Uniprime was suspended by the SEC on Aug. 13, but the trading freeze was lifted 10 days later.

The claims were made by Uniprime in connection with New Technologies and Concepts Inc., a subsidiary it helped found in May. In June and July, investigators claim, Uniprime issued three false press releases stating that New Technologies had discovered a miracle HIV cure that reversed the spread of HIV infection in several patients in Spain. Shares of Uniprime rose from 63 cents to $7.94 following the releases, the SEC said.

Despite the trading freeze, Uniprime has raised $500,000 using the purported cure as an inducement, according to Reuters. The SEC is seeking the return of those funds, a permanent injunction against Uniprime and civil penalties.

The president of New Technologies, Alfred Flores, was presented in the releases as the discoverer of the HIV cure. In fact, investigators say Flores was serving time in jail in Colorado on murder conspiracy charges at the time he was supposedly conducting his research in Spain.

Flores was arrested in Las Vegas on Aug. 12 by postal inspectors and charged with securities fraud in connection with the press releases. He could face 10 years in prison and a $1 million fine if convicted on the charges, according to prosecutors.

Uniprime officials could not be reached for comment.