YTB Travel International sell 4 million in stock???

YTB Travel News: (Press Release) YTB Travel dumps 4 million dollars worth of stock this time. As first reported by Notravelmlms site.

Michael Brent, who is a 10%+ owner of YTB Travel International, Inc. or yourtravelbiz.com or "the Company" has apparently seen the writing on the wall and is looking to sell up to 4 million shares of YTB Travel International, Inc.


On September 30, 2008, Michael Brent and Beth Brent entered into a Rule 10b5-1 Sales Plan ("Sales Plan") to be administered by Gilford Securities, Incorporated. Michael Brent is a ten percent shareholder of YTB International, Inc.(the "Company") and is the Chief Executive Officer of REZconnect Technologies, Inc., a wholly owned subsidiary of the Company.

During the one year term of the Sales Plan, the Sales Plan provides that Gilford Securities, Incorporated will sell under Rule 144 up to a maximum of four million shares of Class A Common Stock of the Company held by Mr. and Mrs. Brent, subject to the price and volume restrictions stated in the Sales Plan.

However, according to this Rule 10b5-1 of the SEC, people that are privy to non public insider information are prohibited from selling stock. This should prove to be a problem for Cauthen, Clagg, Scott Tomer, Coach Tomer and Kim Sorensen as they all have sold securities when the California Attorney General Investigation was ongoing and not disclosed. This will also be yet another problem for Brent, based solely on "if" that information was disclosed to him as well.

Nevertheless, there is a way out when someone is looking to minimize the risk. Especially, "if" a trustee handles the sales of securities at a predetermined schedule or per a predetermined Canaccord-Adams' formula. You can read about the details of the plan here.

Now, according to Canaccord-Adams:

A large number of corporate executives are using 10b5-1 plans to turn their risks into rewards with respect to trading company stock. Rule 10b5-1 plans allow corporate insiders to preclude trading liability and more easily access their personal wealth held in stock.

It seems that Michael Brent who by the way has already sold over a million shares in the last year, should be a little concerned that because of what he knows as an insider, he may be guilty of violating insider trading rules. Moreover, he must feel that selling YTB Travel ie the company, yourtravelbiz.com stock is a personal risk.

Does this represent the beginning of the end? I guess that time will tell

For More Information Contact:

Daryl D. Alex
Regional Executive
Traverus Travel and TeleVerus Cell Phones
1.800.781.3254
1.877.744.3431
225.590.7700