Universal Express

Universal Express was a United States company associated with transportation, postal-support, and luggage-delivery claims, but its public history is dominated by securities-enforcement proceedings rather than by an established logistics operation. The company was registered in Nevada and was headquartered in Boca Raton, Florida. It used the abbreviation USXP and represented itself as a provider of transportation and logistics services, including a postal-center support network called UniversalPost and a luggage-handling service called Luggage Express. The company's corporate history was linked to Packaging Plus Services, a defunct business that Richard A. Altomare took control of in 1988. After obtaining control, Altomare became associated with the issuance of very large quantities of company stock. Universal Express later promoted a business model that purportedly involved logistics infrastructure for privately operated postal centers and the separate collection and delivery of travelers' luggage. Company announcements claimed that UniversalPost supported thousands of private postal stores and generated substantial annual revenue. A federal district court subsequently found that these announcements were misleading or fictional and that they were used in connection with the distribution of hundreds of millions of unlawfully issued shares. Universal Express also became associated with claims concerning naked short selling and allegations that market participants had improperly sold shares without borrowing or locating stock. Those claims were part of the company's public messaging, but they did not displace the securities-law findings against the company and its officers. The SEC's investigation concluded that the company's primary activity was the production and distribution of billions of illegal, unregistered shares. According to the findings summarized in the public record, proceeds from the stock sales supported Altomare's lifestyle and that of associates, while some funds were used for advertising intended to stimulate additional share sales. The company's claimed logistics services included Luggage Express, under which travelers could have luggage collected and delivered separately from their personal travel arrangements. Altomare publicly claimed that millions of bags had been handled without loss, although the available record does not establish a durable, independently verified operating network comparable to a major parcel or freight carrier. Likewise, the claimed UniversalPost relationship with private postal centers was challenged by direct contacts with purported partners, who reportedly denied awareness of a relationship with Universal Express. Regulatory and judicial action ultimately displaced the company's operating claims. A federal judge appointed a receiver at the SEC's request, and the court found that Universal Express and senior officers had repeatedly violated securities laws. The court ordered the company and its top officers to pay monetary relief totaling more than $21 million, including disgorgement and civil penalties, and barred them from future penny-stock activity. Richard Altomare was held in contempt in 2008, incarcerated at the Metropolitan Correctional Center in New York City, and barred from serving as an executive of a public company. General counsel Chris Gunderson was also identified in the court's findings as a participant in repeated securities-law violations. The company collapsed by 2007 and is no longer an active logistics brand.

Universal Express emerged from the corporate history of Packaging Plus Services, a defunct company over which Richard A. Altomare took control in 1988. The business later operated under the Universal Express name and was registered in Nevada, with headquarters in Boca Raton, Florida. Its public communications presented the company as a transportation and logistics enterprise, while its securities traded under the USXP identifier. The company's stated operating plans included UniversalPost, a proposed infrastructure and support network for privately operated postal-service centers. Public announcements attributed a large network of participating stores and significant annual revenue to the arrangement. The claims became central to later enforcement proceedings. A federal district court found that the announcements did not accurately describe the company's relationships or operations. Contacts with purported postal-center partners reportedly indicated that those organizations were unaware of the claimed relationship. The court concluded that the publicity was used to support the distribution of hundreds of millions of shares. Universal Express also promoted Luggage Express, a service intended to collect travelers' luggage and deliver it separately from their personal journeys. Richard Altomare claimed that the service had handled millions of suitcases without losing any. The available historical record does not provide enough independently verified information to establish the scale, continuity, or commercial success of the service. Alongside its logistics narrative, Universal Express became identified with allegations concerning naked short selling and criticism of SEC filings. These subjects were prominent in company communications and investor disputes. The SEC's investigation, however, reached a substantially different conclusion about the company's principal activity. It determined that Universal Express was primarily engaged in producing and distributing billions of illegal, unregistered shares. The proceeds were described as funding Altomare's lifestyle and supporting associates, with some money reportedly directed toward advertising intended to encourage further stock sales. The company collapsed by 2007. At the SEC's request, a federal judge appointed a receiver to take control of Universal Express. The court found that the company and senior officers had violated securities laws and characterized Altomare and general counsel Chris Gunderson as persistent violators. The judgment required Universal Express and its top officers to pay more than $21 million in monetary relief. The components described in the public record included more than $9 million in disgorgement of allegedly unlawful profits and an additional civil-penalty or restitution amount of more than $9 million. The court also barred the defendants from future penny-stock sales. Altomare was held in contempt in April 2008 and was incarcerated in May 2008 at the Metropolitan Correctional Center in New York City. He was also barred from serving as an executive of a public company. Michael Xirinachs was separately charged in connection with the unregistered distribution and sale of more than 21 billion Universal Express shares and received injunctions, financial penalties, and a penny-stock bar. These proceedings define the company's legacy. Rather than a continuing logistics brand, Universal Express is chiefly remembered as a defunct public company whose transportation claims were overshadowed by extensive securities-enforcement litigation.

• 2008

  Receivership and federal judgment

  [1]Universal Expressen.wikipedia.org

  A federal judge appointed a receiver at the SEC's request and ordered the company and senior officers to pay monetary relief and accept penny-stock restrictions.

• 2008

  Altomare held in contempt

  [1]Universal Expressen.wikipedia.org

  Richard Altomare was imprisoned for contempt of court and later barred from serving as an executive of a public company.

• 2007

  Company collapse

  [1]Universal Expressen.wikipedia.org

  Universal Express collapsed after years of disputed operating claims and securities-related controversy.

• 1988

  Altomare takes control of Packaging Plus Services

  [1]Universal Expressen.wikipedia.org

  Richard A. Altomare took control of the defunct Packaging Plus Services, the corporate predecessor associated with the later Universal Express enterprise.

Universal Express positioned itself as a transportation and logistics company serving private postal centers and travelers. Regulatory findings, however, characterized its principal activity as the unlawful issuance and distribution of unregistered securities rather than a bona fide logistics business.

• Postal-service infrastructure

  UniversalPost

  UniversalPost was presented as a support network for privately operated postal-service centers. Company releases claimed a relationship involving thousands of stores and substantial recurring revenue. Federal litigation later found that these representations were misleading or fictional, and purported partner centers reportedly denied knowing of the claimed arrangement.

• Luggage transportation

  Luggage Express

  Luggage Express was described as a service allowing travelers to have baggage collected and delivered separately from their personal travel arrangements. Richard Altomare claimed that millions of suitcases had been handled without loss, but the available record does not establish the service's independently verified scale or continuing operation.

• 2008

  Illegal issuance and distribution of unregistered shares

  The SEC and federal courts found that Universal Express was principally involved in the issuance and distribution of very large quantities of illegal, unregistered stock. The company and senior officers faced disgorgement, civil penalties, injunctions, and penny-stock bars.

  Source

• 2008

  Misleading UniversalPost claims

  The company's claims about a postal-center network and its revenue were found misleading or fictional, with the court connecting the publicity to stock distribution.

  Source

• 2008

  Contempt proceedings against Richard Altomare

  Altomare was held in contempt of court, imprisoned, and barred from acting as an executive of a public company.

  Source

Read more

• UniversalPost promotional communications

  United States

  Universal Express used press releases and other promotional communications to present UniversalPost as a large postal-center support network with significant annual revenue.

  Outcome. A federal court found the representations misleading or fictional and linked them to the sale of unlawfully issued shares.

  Source

• 2008

  Federal court orders receivership and monetary reliefOther

  Background

  The SEC sought court intervention after investigating Universal Express's stock issuance, public statements, and securities-law compliance.

  Action taken

  A federal judge appointed a receiver, ordered Universal Express and senior officers to pay more than $21 million, and imposed restrictions on future penny-stock activity.

  Aftermath

  The judgment and related criminal-contempt proceedings effectively ended Universal Express as an operating public-company brand.

  Court-ordered monetary relief. More than $21.9 million (2008)

  Source

1. 1Universal Expressen.wikipedia.org
2. 2SEC enforcement materialssec.gov