Saleen Automotive, Inc. (fka SLNN)

[FredVestor]

Beware this is only a pump and dump

Look into the big holders here: David Weiner, Fred Knool, KBM Worldwide.

In 2013, Saleen Automotive, mostly known as SMS Supercar back then, was in a bad financial situation with $11 million in accumulated deficit, so they went public through a reverse merger. I don't know how familiar you are with reverse mergers, but basically in order to avoid all the red tape that comes with going public, a private company in bad shape is absorbed by a publicly traded shell company. In this case, Saleen received $3 million for merging with David Weiner's shell company W270. In the process, David Weiner and his associates got a lot of shares of Saleen for cheap. Earlier this year, they even changed the conversion rate of the convertible notes held by Weiner and his associates which will result in them owning a majority stake in the company at maturity unless they unload shares as they go which is evidently what is happening since the stock went from $1.00 2 years ago to now just $0.0035.

Now David Weiner does this scheme a lot. These days mainly with pot related companies because there's lot of hype around the sector with the growing popularity of the legalization movement. These companies' stock always go straight up right after Weiner goes in and then crash. Just like Saleen's stock.

Here is a good writeup from Bloomberg on what Weiner did with a few companies: http://www.bloomberg.com/news/articles/2014-06-18/legal-pot-sets-off-penny-stock-frenzy

Here is an easy to understand visualization of the links between Saleen's ownership and 2 of Weiner's companies mentioned in the Bloomberg article: https://i.imgur.com/MnmZNpr.jpg

Saleen took 3 different loans from a company called KBM Worldwide (See the 3 8K below).

As far as we can tell, these loans have nothing to do with Weiner and friends, yet this new alliance is troubling on its own. All together, these notes are worth $211,000 - $224,000 with interest. This might not seem like much, but with the ridiculous terms attached to the notes (0.6 of low 5 of 10 days), if the notes were converted today, they would get 28.7 million shares at $0.0078. These 3 notes matures in June and July 2015. We can expect tremendous pressure on the stock from these shares starting in the next 3 months.

Now who is behind this KBM Worldwide? Two brother. Seth and Curt Kramer.

These guys are not the kind of people you want SLNN borrowing from and even less owning shares of SLNN.

Seth Kramer conspired in a lender mortgage fraud case and consequently had to settled for $1.2 million and he is barred permanently from HUD programs.

United States Attorney’s Office Recovery press release: http://www.justice.gov/usao/nys/pressreleases/December11/cambridgesettlementpr.pdf

His brother Curt is no better. Out of his 2 investment vehicles prior to KBM Worldwide, one received a cease and desist from the SEC and the other was dissolved. Much like his brother, he had to pay $1.4 million to settle the charges with the SEC. A company even had to cease all relationship with Curt Kramer, from which they borrowed money, in order for FINRA to accept their reverse split. (See comment below)


This is the kind of people Saleen is doing business with…

Sources:


The 8K announcing the notes issued by SLNN to KBM:
https://www.sec.gov/Archives/edgar/data/1528098/000149315214003040/form8k.htm
https://www.sec.gov/Archives/edgar/data/1528098/000149315214003160/form8k.htm
https://www.sec.gov/Archives/edgar/data/1528098/000149315214003262/form8k.htm

comment janice shell - http://investorshub.advfn.com/boards/read_msg.aspx?message_id=112757109

Quote:
The Kramers are very bad news. Curt Kramer used to run a toxic financing company called Mazuma. The SEC finally got round to suing him in 2013:

www.sec.gov/litigation/admin/2013/33-9485.pdf

He settled with them for a sum he wouldn't miss:

http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370540410863

In the meanwhile, he'd created a new company called Asher Enterprises, and was doing his financing deals through it. But there were unintended consequences for Kramer. Last fall, a company called Ecolocap decided to do a reverse split. ECOS had once accepted financing from Asher. FINRA refused to process the corporate action for the reverse split, saying that by virtue of his settlement with the SEC, Kramer had officially become a Bad Actor.

http://www.sec.gov/Archives/edgar/data/1290506/000100201414000516/ecos8k-09162014.htm

Eventually--and disappointingly--ECOS worked out its problem with FINRA, and was allowed to proceed with the r/s:

http://www.sec.gov/Archives/edgar/data/1290506/000100201415000052/ecos8k-02182015.htm

In the meanwhile, though, Asher dumped its positions in most of the companies it had agreements with. But if FINRA or the SEC thought he was admitting defeat, they were wrong. He and his brother Seth got KBM up and running as a substitute for Asher...