Kara International commissioned and distributed Skylab medals 1980-81 (NU 34881). In 1984 it published The America's Cup Cartoon Collection, and it listed an address in Perth.
Kara International became Heritage Incorporated some time between 1981 and 1998, when it was described as a 'publicly traded shell company'. The US Securities and Exchange Commission announced on March 16 1998 a temporary restraining order against International Heritage Incorporated, a Nevada corporation ("Heritage Incorporated"), formerly known as Kara International Inc. ("Kara"); International Heritage, Inc. ("IHI"), a North Carolina corporation; Stanley H. Van Etten ("Van Etten"), founder, chairman of the board of directors, president and chief executive officer of IHI and chairman and CEO of Heritage Incorporated; Claude W. Savage, a founder and director of IHI and a director of Heritage Incorporated; and Larry W. Smith, a founder and director of IHI and a director of Heritage Incorporated. In addition, the Court appointed a receiver for IHI.
The Commission's complaint, filed on March 16, alleged violations of the anti-fraud and registration provisions of the federal securities laws. The complaint also alleged that Heritage Incorporated violated the reporting provisions by filing a misleading Form 8-K with the Commission. The Commission's complaint alleged that, IHI through Van Etten, Savage, Smith and others, solicited individuals throughout the United States to invest in a pyramid scheme. IHI raised more than $150 million from over 155,000 investors. IHI consummated a reverse merger with Heritage Incorporated (formerly Kara) in 1998. The complaint alleges that Heritage Incorporated then filed a Form 8-K with the Commission which was misleading and concealed the fact that IHI was operating a pyramid scheme. On March 13 1998 the Commission suspended trading in Heritage Inc. stock.
IHI prepared a new compensation plan and submitted it to the court. The court removed the injunction, but expressed grave reservations about the new plan. It noted that since no evidence existed regarding how the plan was actually promoted in the field, the plan could not be deemed a security on its face. The Commission claimed the new plan also constituted a security, so they remained locked in battle with IHI until the cost of litigation forced IHI out of business.
U.S. Securities and Exchange Commission Litigation Release no. 15672, http://www.ihicase.info/pressmedia/03-17-98%20SEC%20Press%20Release.doc, accessed Law Library, US, website http://www.mlmlaw.com/library/guides/securities4.html, accessed