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EDMISTEN CLAMPS DOWN ON WILSON FIRM'S SALES ACTIVITIES

 EDMISTEN CLAMPS DOWN ON WILSON FIRM'S SALES ACTIVITIES
 RALEIGH, N.C., April 23 /PRNewswire/ -- Secretary of State Rufus


L. Edmisten today moved to stop the fraudulent sales activities of two Wilson men and their company, which falsely claimed to have rights to a new design of fire-fighters' helmet.
 A cease-and-desist order was issued against: BIS Incorporated, of 111 W. Nash Street in Wilson; Felix M. Batts, BIS founder and president; and Alvin R. Hickman, BIS vice president for marketing.
 The order states Batts and Hickman were selling unregistered securities to North Carolina investors. Additionally, the two misrepresented not only the assets of BIS Incorporated but the purpose to which investments in BIS would be used.
 "Our investigators from the state Securities and Commodities Division began looking into these allegations after receiving complaints from BIS investors," Secretary Edmisten said. "We've spent months scouring this company's financial records and decided to take this action to stop any further improper sales."
 Investigators from the Department of the Secretary of State determined investors had been told BIS held the rights to the design of a new helmet expected to provide better protection for fire-fighters, but that the rights actually belonged to a general partnership called "Inventohelm" formed Jan. 21, 1988 by Batts, Joseph W. Walker, Bobby Ruffin and the Sphinx Investment Co., Inc.
 Additionally, investigators found investors in BIS were not notified that stockholders in a company called CBL Future Designs, Inc. were receiving shares of BIS stock without payment of adequate consideration to BIS; neither were they informed that Batts had declared personal bankruptcy on Sept. 8, 1987.
 "Investors have a right to know a fair amount about who's getting their money and where it is going," Edmisten said.
 The amount of money invested by North Carolinians is yet to be determined, Edmisten said.
 "We'll do whatever we can to help investors recover their money," he said, "but there may be little left of their original investment."
 All securities sold in North Carolina must be registered with the state Securities and Commodities Division of the Department of Secretary of State. Failure to do so is a violation of N.C.G.S. 78A.
 -0- 4/23/92
 /CONTACT: Elliott Warnock, Director of Communications, or Richard H. Carlton, Chief Deputy Secretary of State, State of North Carolina Department of the Secretary of State, 919-733-4161/ CO: State of North Carolina Department of the Secretary of State ST: North Carolina IN: SU:


DF -- CH012 -- 1888 04/23/92 12:20 EDT
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Publication:PR Newswire
Date:Apr 23, 1992
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