Xero Mobile being investigated by SEC

Jun 24 2006 - 12:20 PM ET | MVNO

Ad-for-service startup MVNO Xero Mobile announced that it is complying with requests for information from the SEC. The company became a publically traded [XRMB.PK] company through a reverse merger and is thus subject to regulation from the SEC. Xero's business plan is to give users free airtime (and even handsets) in exchange for viewing ads.

This month Xero Mobile was notified by the local office of the Securities and Exchange Commission in a confidential request that it was conducting an informal inquiry relating to certain aspects of the Company's business. The Company is unaware of the reason for the request. Although the Company was informed by the SEC that it was not required to furnish any information, the Company has chosen to cooperate fully and provide such information as is available to the Company.

Some of Xero's founders came from Gizmondo, a European gaming company that evaporated along with investors' money. Despite the implosion, executives made out unusually well (including Stefan Erikson who became famous for crashing a Ferrari Enzo).