Close Close

Life Health > Life Insurance

Shell Company Acquires California Agency

Your article was successfully shared with the contacts you provided.

Investors have used a small publicly traded company to acquire Rubicon Financial Insurance Services Inc.

Executives at Rubicon Financial Inc., Irvine, Calif., a company that was known as Rub Investments Ltd. up until September 2006, say they have obtained control over Rubicon Financial Insurance Services Inc., Irvine, Calif., a life insurance agency, by exchanging 50,000 shares of shell company stock for all shares of the insurance agency’s stock.

The life insurance agency sells health insurance, life insurance, credit life insurance, annuities and other products through referral arrangements with lenders, tax advisors and securities brokers.

Todd Torneo, who founded the insurance agency in 2005, has agreed to work for Rubicon Financial Inc. for a base salary of $5,000 per month, according a report that Rubicon Financial Inc. filed with the U.S. Securities and Exchange Commission.

Joseph Mangiapane Jr. is the chief executive of Rubicon Financial Inc., and Timothy McDermott owns 84% of the new parent company’s stock, Rubicon Financial Inc. says.

Mangiapane has been a senior registered options principal and a registered representative with Advantage Investment Strategies Inc. since 2005. From 1992 to 2000, he was senior registered options principal and a registered representative with Tradeway Securities Group Inc., Irvine.

Although Rubicon Financial Inc. is registered as a public company with the SEC, it has had little income, and it was considered a “shell company” under SEC rules until it acquired the life insurance agency, Rubicon Financial Inc. says.

In addition to the insurance agency, Rubicon Financial Inc. owns a business formed by Mangiapane’s father that markets the Dial-A-Cup system, a machine that can make one serving of a beverage or instant soup mix of the user’s choice at a time.

Rubicon Financial Inc. shares trade on the Over The Counter Bulletin Board system under the symbol RBCF.