Andalusian Resorts and Spas Inc. (fka ARSP)

[Frayed Knot]

John Madsen got a fine of $80,000 for the most recent securities fraud, ARSP.

I assume he will add it to the other Fines/restitutions he hasn't paid.

Both of these are from years ago.

US Dis Court in AZ -Mail Fraud (between 1994-1998 ) Fine of $2.4 MIL and probation 5 years (issued in appx 2005.)

AZ Securities - C&D issued in 2004- plus penalty of $590K , renewed in 2009 - $915K...

This is the SEC recent action.

https://www.sec.gov/litigation/complaints/2017/comp23973.pdf

Ordering Defendants Fried and Madsen to disgorge any and all ill-gotten gains from the
illegal conduct alleged in this Complaint, and to pay prejudgment interest thereon.

[Renee]

ARSP FINRA deleted symbol:

https://otce.finra.org/otce/dailyList?viewType=Deletions

[TradeForProfits]

np

[janice shell]

Thanks...

[TradeForProfits]

no idea. i only have seen a letter about the case related to F. i'm not following it either.

[janice shell]

Whatever happened with Madsen? I haven't been following the case.

[TradeForProfits]

Fried sentencing hearing is tomorrow. No trial as he plead guilty.

[janice shell]

That's good news! I'd always wondered why they left Fried alone. Madsen was a more shadowy figure, but his role in the scam was also known to some.

[scion]

SEC FILES CHARGES IN ALLEGED MICROCAP FRAUD SCHEME

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23973 / October 30, 2017

Securities and Exchange Commission v. Andalusian Resorts and Spas, Inc., John Madsen, and Bernard Fried, Civil Action No. 1:17-cv-08300 (October 27, 2017) (S.D.N.Y.)

SEC FILES CHARGES IN ALLEGED MICROCAP FRAUD SCHEME

The Securities and Exchange Commission today charged Andalusian Resorts and Spas, Inc., its former president and CEO Bernard Fried, and the company's actual control person John Madsen with defrauding investors by issuing false press releases about business prospects and hiding Madsen's secret control of the company.

The SEC alleges that Madsen concealed a past guilty plea to mail fraud by recruiting Fried to serve as a strawman executive of Andalusian while Madsen called the shots from behind the scenes. According to the SEC's complaint, Fried drafted press releases at Madsen's direction announcing the company's intent to acquire a Costa Rican hotel and touting anticipated revenue from the hotel acquisition. Andalusian's press releases were allegedly misleading as the company had no assets, operations, or ability to finance the purchase of the hotel or otherwise satisfy the requirements of the potential transaction. The SEC alleges that the party with whom Andalusian had entered into a letter of intent to purchase did not even have legal title to the hotel, which was in bankruptcy.

According to the SEC's complaint, Andalusian's misrepresentations were intended to fraudulently generate public demand for the company's stock to enable Madsen or his associates to profit from selling their shares into the artificially-inflated market. However, the SEC effectively halted the pump-and-dump scheme before it had the intended effect by suspending trading in Andalusian's securities soon after dissemination of the press releases.

The SEC's complaint charges Andalusian and Fried with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and charges Madsen with violating Section 10(b) of the Exchange Act and Rules 10b-5(a) and 10b-5(c). Madsen also is charged with aiding and abetting Andalusian's and Fried's violations of Section 10(b) of the Exchange Act and Rule 10b-5(b). The SEC seeks penny stock bars, permanent injunctions, and disgorgement of any ill-gotten gains plus interest and penalties against Madsen and Fried. The SEC also seeks an officer-and-director bar against Fried. The SEC also seeks a permanent injunction against Andalusian..

The SEC's investigation was conducted by Brenda Wai Ming Chang, John Lehmann, Peter Lamore and Adam Grace of the New York Regional Office, and the litigation will be led by Paul Gizzi. The case is being supervised by Sanjay Wadhwa. The SEC appreciates the assistance of the U.S. Attorney's Office for the Eastern District of New York and the Federal Bureau of Investigation.

SEC Complaint
https://www.sec.gov/litigation/complaints/2017/comp23973.pdf


https://www.sec.gov/litigation/litreleases/2017/lr23973.htm

[janice shell]

LOLOL!! Not really.

[SevenTenEleven]

Well it should be an interesting case. Plenty of cheerleaders pulling for Hand.

[janice shell]

They do that deliberately. And sometimes there seem to be conflicts between the SEC and the DOJ. At the time of the Amogear arrests and parallel SEC lawsuit, there was much that wasn't clear. A comparison of the material did--at least after three readings--reveal Flaherty as the chief CI.

I had the impression that the DOJ didn't tell the SEC absolutely everything that was going on.

[SevenTenEleven]

It always seems like they leave out a bunch of the facts and/or names. But that is what discovery is for and what the court process should uncover and make available in the court records eventually.

[janice shell]

He was working with Katz the promoter. There were also some people hired by Katz; they weren't named. Katz has evidently already pled guilty in the criminal case. I don't think we'll see that with Hand, though you never know.

And then there're the Confidential Informants. One is Coleman Flaherty. Probably another is Thomas Brazil. I don't know who the third may be. Flaherty and Brazil are already involved in several legal actions, and probably participated in the Greenway sting to get off with lesser charges than might otherwise have been their fate.

[SevenTenEleven]

Were all of the perps named? There was hand, a buddy of his, and three "others".

[janice shell]

Yes. Bernard Fried, the frontman CEO of Greenway, mysteriously moved to ARSP, along with Greenway's assets. The details of that phony transaction have never been clarified.

He isn't named in the SEC complaint, presumably because he sang like a canary.

[SevenTenEleven]

ARSP - Yes they did! Have to Hand it to Jehu...He has had a good run...But all good things must come to an end.

Tic Toc

[janice shell]

For what it's worth, today the SEC charged Jehu Hand and Antonio Katz in connection with the pumpadump of Greenway Technologies, ARSP's predecessor company:

http://www.sec.gov/litigation/litreleases/2015/lr23424.htm

The DOJ indicted Hand, as well:

http://www.justice.gov/usao-ma/pr/california-attorney-indicted-and-new-jersey-stock-promoter-convicted-stock-manipulation

See also:

http://www.theotc.today/2014/05/will-arsp-have-gay-ole-time.html

[fenixinvest]

Does this trade any more?

[Frayed Knot]

The SEC has been looking at them since last May. So someone got in touch..

https://www.sec.gov/litigation/suspensions/2014/34-72183.pdf

Wonder what Adam Grace has found out. (name at the bottom of the notice))

Does anyone have any thoughts on what may or maybe not be happening?

How long does it take the SEC to just take a pinky out completely.

Guess they won't be buying any hotels....

Odd that on the ARSP FB page .. from last year, someone said it was a great hotel, while another person said it didn't exist.

The diversity in the statements is amazing.

This was one weird stinky pinky...or maybe not..

[DSTAT]

They have no money to buy anything and I'd be willing to bet a box of donuts that they cannot even pay themselves, in my opinion. I believe the master behind the plot has all the donuts but doesn't want to share. It would appear to me that ARSP has tech people that can build a site but financial people that cannot manouver their way out of the depths of darkness created by their "leader", that is said to be away from all securities and shouldn't be in driver's seat of this one, through a "consulting" position. Looks a little sketchy to me.

[DeafTrader2]

ARSP www.arsproud.com has the most mouth watering, colorful, and nearly perfect website ever designed. Who does this ? Still polishing it to make it so real and visualicious. Are they buying several high end resorts while being in a grey market ??? Why hiring a new CEO right after SEC temp. suspension as well as entering Grey Mkt ???

[DSTAT]

Not trying to kill anything. Just like to see that all companies and parties are compliant with federal law.

[Patentguy2]

I do not understand the concern. The stock is moving, and moving up. Which seems like a good sign to me since I held onto my shares as the went down, like a dummy :) Why try to kill the movement?

[DSTAT]

Looks like those who are NOT supposed to be involved with ANY securities are possibly up to their old tricks. It seems like an alert to the SEC and FINRA is in order! In my opinion, there could be some serious issues with the weight that this boat is carrying, in every sense!

[rdwf81]

Wait, did someone also buy at .01?

[rdwf81]

Another transaction for .005. So odd...Why would someone offer higher than the last buy price?

[vantillian]

gay. lol

[DSTAT]

Should a company with someone that has been in trouble with and disciplined by the SEC be highly involved be trading, even if they are incognito and making moves behind dummy entities or puppets? My understand is that they are NOT permitted to be involved with securities. Am I wrong? Magic 8-Ball says: Signs point to no!

[janice shell]

What??? The stock traded a lousy 5000 shares yesterday. Not exactly a big deal. It's a Grey. That's what they do.

http://ih.advfn.com/p.php?pid=historical&symbol=NO%5EARSP

[DSTAT]

Someone crept the price up. Gee, who could that be? Maybe its the party that could be incognito with controlling interest? Maybe its someone that is NOT supposed to be involved with securities? I wonder if its the puppeteer. Magic 8-Ball say: Signs point to yes!

[DSTAT]

The lesson learned is NOT to trust those companies involved with known SEC violators, in my opinion. Eventually they tend to find their way back in the game, where they shouldn't be in the first place; thus creating another SEC violation! Whether under an assumed name, company, or some other "non-affiliate", the above applies. I suppose this could possibly be yet another case of that as well.

CAVEAT EMPTOR!

[vantillian]

Oh come on. iHub is a place for nice? and that sure wasn't very mean, either.

This steaming pile deserves a few gay jokes.

[DeafTrader2]

That's not very nice of you vantillian .

[vantillian]

lesson learned: never buy a stock promoted exclusively by homosexuals.

[janice shell]

Madsen.

[rdwf81]

I'm confused. Who are you referring to?

[DSTAT]

I wonder if a special someone (to be nameless) is participating in this company's trading, that was banned by the SEC and shouldn't be. Oops, I believe that's a possible SEC and/or FINRA violation! I wonder if they think that special someone is holding the control block of shares under an assumed name or through another company? That could be the case, in my opinion ;o) Gee, who could be trading stock in this company that has paper certs and inside knowledge? I wonder if that's the same party described above? I am asking myself why ANY stock in this "company" would be traded and who would be doing so. I am asking myself why the SEC wouldn't pay attention to companies with straw-men and puppet games. Based on earlier D/D as shown from this year alone it appears as ARSP has a pending deal for a "hotel" acquisition. The documentation stated that they needed the stock price to maintain $1.10/share for the deal to happen. In my opinion, ARSP cannot seem to muster up money to simply buy a hotel (let alone pay for other things) they have to pump their stock and "run a program", as the above described party once stated, to get what they want. It seems as that's a big SEC "no no". Well, FINRA has some sharp cookies there so I suspect that they are paying very close attention to those sorts of parties and programs in the first place.

CAVEAT EMPTOR!

[rdwf81]

It's still trading! Just kidding.

[DeafTrader2]

ARSP -80% at .001 from .005

Good Bye

Bernie Fried is all Fried UP after his boiler is blowing up downstair inside his beloved Kansas house.

I need to write him a get well soon !

[janice shell]

It could just be that the Nasdaq wants clarification on something. In the case of exchange listed stocks, the exchange deals with problems like these; the SEC only suspends OTC issues.

But if you're thinking of NEWL, its T12 is a bad thing. The company's drowning in toxic conversions and sales. Two reverse splits in the second half of 2013; three so far this year. I think Nasdaq has had enough of NEWL.

[rdwf81]

Janice, can you explain to me the difference between the implications of a NASDAQ T12 halt and an SEC trading suspension? I'm confused by the two. Is a T12 halt always a bad thing, or can it just be that NASDAQ wants clarification on something?

[DSTAT]

And who could be trading 8000 let alone ANY shares of this company? Let's take one guess and ask ourselves the reason.

[DSTAT]

It was a fellow, friendly investor.

[janice shell]

lol, you're right on all points. Who sent that to you?

[DeafTrader2]

ARSP... Since that it is in the grey sheet. It is nearly impossible for it to be reinstated. So thus, Bernard Fried is trying to mend this mess by hiring a top gun business partner. Georgetown University is a very swell Catholic owned college institution. Sorry for the word IVY LEAGUE which is only my perspective. It may take months into years for it to be reinstated. GREY market is the only way to punish presumed fraudulent endeavoring company that pose itself as real and legitmate company. It cannot find guilty until tried in the courtroom or SEC's own investigation. I am still holding this ticker ...

[DSTAT]

Email to me: "This company is more likely to be reinstated by the SEC to go back to OTCBB. It may take months to years to do that. Hopefully sooooner. Bernard Fried is hiring a top gun business consultant. He is from Georgetown University in Washington DC.( IVY LEAGUE UNIVERSITY )"

My Response:

Do you actually believe that he is "hiring" anyone? LOL! With all due respect, I believe he is simply a puppet for someone else. I would be willing to bet on that!

When you mention "a top gun business consultant", are you referring to the new CEO that was shown in the press release? If so, that party may have a good background however from a shareholder's standpoint, it is NOT what the company needs. In my opinion, that stinks to high heaven of "a program" to increase the stock price to use the stock to close deals on a hotel acquisition that may be on the plate, as seen in an earlier press release. As you know, those sorts of programs are forbidden by the federal government! Let's ask ourselves who could be the architect and project manager of such ongoings.

By the way, Georgetown is NOT an Ivy League school. Its a member of significantly lesser academically-driven conference, the Big East Conference.

http://en.wikipedia.org/wiki/Big_East_Conference

The Ivy League consists of: Brown, Columbia, Cornell, Dartmouth, Harvard, Pennsylvania, Princeton, and Yale.

http://en.wikipedia.org/wiki/Ivy_League

[DSTAT]

Gee, I see volume from a Grey company. What's next? Could it be a press release telling me that the management team moved to Alaska and can effectively operate with their leadership from there? Why not? They already appear to have a leader located thousands of miles away, according to the last press release and conducting basis due diligence showing that person in New York and NOT in Nevada....... just like their chairman being in Kansas. I guess there are reasons for this sort of strategy that we all just don't know.

Let's ask ourselves who is calling the shots for this company? No, who is REALLY calling the shots. Let's ask ourselves if its from afar or from someone local? Let's ask ourselves who that might be. In my opinion, its obvious. In my opinion, it may be a really big "no no". Now who could that be? I think I can answer that in 1 guess. I think we all can. Are there some "issues" that prevent this from happening? I guess we can always find out if there are any outstanding issues with any company by asking FINRA, right? We all have that option free of charge!

[janice shell]

There are no "magical ways" to make things happen. As you will see, nothing will happen.

Since early 2010, only two previously suspended Greys have returned to the OTC.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=102719901

[DSTAT]

No but look at the players. There are magical way around the powers that be to make things happen. I'd be willing to bet a LGBT vacation that its gonna happen! Why else would that "CEO" be in place? Its obvious that the former "CEO" couldn't dance so they found a new dance partner that knows the Financial Boogie! To me, it couldn't be any clearer that is what's gonna happen, gray or not! They can emerge from the grays with some slick dance moves; hence my points but CAVEAT EMPTOR! Like I said, I smell bacon! I can't post any more today cuz its my limit.