Extremely interesting/disturbing read on just how deep the corruption goes:
Pople needs to be aware of this .. this was posted on other board..
One of the fact to highlight in the below articale
" Back in 1999, there were 12,500 companies listed on the OTC Bulletin Board. Now, there are 2,700. The question has been, how long can you eat your children and expect to have a family?” "
Extremely interesting/disturbing read on just how deep the corruption goes:
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By Paul Giannamore
The Herald-Star
Steubenville, Ohio
April 27, 2007
Sometimes the guy with the better idea ends up as Bill Gates.
And sometimes, he ends up like Rod Young.
Young, a Richmond native and 1969 graduate of Jefferson Union High School, is at the center of legal actions bringing focus to the involvement of organized crime in Wall Street and shedding light on the process of “naked short selling,” which can result in counterfeit stocks floating and being sold and resold until a company is valueless.
Young, the son of Betty and Ralph Young of Richmond, is the principal behind Eagletech Communications, a Florida-based telecommunications firm he had hoped would revolutionize small-business communications.
Young was in the construction business in the 1990s when he realized the need for an automated corporate phone system that could direct calls to himself or others working offsite from the main office. He developed and patented the technology to create a hybrid communications platform more efficient than competitive unified communications platforms; he assigned the patents to Eagletech in hopes of selling a true improvement in business efficiency.
Young’s company had begun doing business with major telecommunications firms in the late 1990s, selling a service allowing small firms to use one telephone number for customers to reach businesspeople, no matter where they were out of the office. The single number could be used for fax notification, to store and forward faxes to any fax machine and to notify the business person when a fax is received. Further, Eagletech’s service included an automated phone attendant, call screening, voice mail and messaging, as well as the ability to use a Web browser from anywhere on the road to make changes or set up transfer numbers, message delivery parameters and other items, from a cell phone. Messages could be delivered to an e-mail address and heard on a multimedia computer.
Eagletech targeted phone companies instead of end users and began to contract with large phone companies to provide services to business customers. Phone companies could upgrade their hardware with Eagletech technology, enhancing their service offerings for business customers without an extensive capital outlay.
Eagletech’s business plan was to provide “a significant value proposition to the major phone carrier as well as their business customers,” according to the firm’s latest lawsuit.
To revolutionize communications would take more than a great idea and an innovative product.
It would take money.
Young was no financier. In fact, he says he’d never even owned a piece of stock in his life at that point.
“I invented something that had huge potential and everybody recognized it. What I needed was money to make it come to fruition. Little did I know that Wall Street was pretty well along in their development of schemes to make profit from the destruction of these types of companies,” Young said.
The lawsuits are filed
Eagletech’s lawsuit filed April 10 in the 17th Judicial Circuit Court in Broward County, Fla., offers allegations of how a firm with good intentions can end up caught in a web of Wall Street and Mafia intrigue, stretching from New York to the Bahamas and back again.
The Eagletech suit, the second one filed since the company found itself with more stock than it had issued and no money to pay for even routine reporting to the Securities and Exchange Commission, alleges violations of the federal Racketeer Influenced and Corrupt Organizations act against 26 banks and securities firms, as well as 100 unnamed companies and individuals for manipulation of Eagletech’s stock prices, laundering of organized crime money, counterfeiting of stocks and charging illegal fees and commissions for Eagletech stock sales.
Several defendants are alleged to have conducted multiple acts of securities fraud and violated federal securities statutes. Wall Street giants including Citigroup, Bank of New York, JPMorgan Chase, Chase Manhattan and the firm of Schroeder PLC are alleged to have violated federal securities statutes as the controlling firms for other companies involved.
A variety of state laws are also alleged to have been violated.
Rod Young’s mother, Betty Young of Richmond, says among the investors who lost all their investments in her son’s company are people from the Jefferson County area. Over the years since her son’s troubles with Wall Street began around the year 2000, Betty Young has been diligently researching and learning and trying to educate herself and others about the common practice of naked short selling of stock on Wall Street and what that has done to firms. Overstock.com’s founder has long alleged his company was destroyed by being sold into a death spiral through the practice, which led to there being more stock in existence than the company actually had issued.
Rod Young says it’s the same thing with Eagletech.
