Blunt warns out-of-state firm to cease stock offerings

Missouri Secretary of State Matt Blunt is again warning Missouri investors to be cautious with whom they invest their money.

A news release from Blunt's office said that Bidbay.com Inc., based in the state of Nevada, has been offering unregistered securities to Missouri investors. Blunt Sept. 9 ordered Bidbay, its president and CEO George Tannous and sales agent John Montgomery, to halt the offer and sale of unregistered securities.

According to reports from the Securities Division of Blunt's office, a Missouri resident purchased 5,000 shares of Bidbay stock for $1 per share, only to receive 1,667 shares of George Tannous & Affiliates Inc. stock. The Missouri resident, after getting no response from Tannous regarding the stock, reported the sale to Blunt's office.

Blunt's office has confirmed that Montgomery and Tannous are not registered to sell securities in Missouri and that no registration or exemption was granted for the securities offered. Furthermore, the office found the state of Pennsylvania had issued a cease-and-desist order against Bidbay on Aug. 22, 2000. The Missouri resident also was told prior to the sale that Bidbay would be comparable to eBay and was expected to start at $20 per share. It was supposed to go public in January.