DD Support Board and Research Team

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AAST - hires tainted geologist

A PR put out by AAST today says they have hired Richard Tschauder as their geologist

http://ih.advfn.com/p.php?pid=nmona&article=48128835

Allied American Steel Corp (NASDAQ OTC Bulletin Board: AAST.OB; "Allied American" or "the Company") is pleased to announce the appointment of Senior Geologist, Richard Tschauder, to the Company's management team.


Mr Tschauder has a tainted record because of his involvement with the Atlas Mining Company fraud.

http://securities.stanford.edu/1038/ALMI_01/2008728_r01c_0700428.pdf

To perpetrate fraud on its shareholders, Atlas retained Richard Tschauder to publish findings contrary to these reports. Mr. Tschauder’s findings were false and were tainted with conflicts as he was not independent and had a financial stake in providing misleading information concerning the Dragon Mine’s prospects.

The Retention of Tschauder

In order to defraud the market, Atlas hired a Richard Tschauder, a geologist, in March 2003 to provide a false report regarding the quality of the halloysite at the Dragon Mine, which Atlas used, in turn, to misrepresent the prospects of its halloysite business to the market.

Tschauder was a stockholder of NaturalNano, the purported customer of Atlas’ fraudulently booked sales of halloysite in 2004. As is set forth in detail below, in exchange for enabling Atlas to claim those fraudulently booked sales of halloysite, Atlas gave NaturalNano lucrative warrants in Atlas stock for no consideration. Tschauder knew that providing a positive report for Atlas would increase Atlas’ stock price, thus making the Atlas warrants more valuable to NanturalNano and ultimately impacting the price of his NaturalNano stock.

With the help of Tschauder, the Atlas Defendants misled the market through a series of public misrepresentations about the extent of halloysite in Atlas’ possession, and the availability, quality and sale of this clay.. In a January 5, 2005 Atlas press release, Tschauder represented that the Dragon Mine halloysite was unique and unparalleled: “Under an electron microscope, we have compared the tubular clay from the Dragon Mine to those clay samples which can be found in New Zealand...The clay samples from New Zealand are misshaped, blocky, and quite contaminated with various types of debris including quartz, volcanic ash, and silica.” The Atlas release goes on to say that the “purity and quality of the Dragon Mine halloysite is unmatched anywhere in the world.” Tschauder continues: “I told Bill Jacobson that to use this clay to make ceramic and porcelain products was like using gold or wire to plum your house...The Dragon Mine clay is a one-of-a-kind resource...”

Atlas used Tschauder as an integral part of this illusory transaction. Indeed, based on Tschauder’s representations, the market was led to believe that the Dragon Mine halloysite was unusually valuable, hence, resulting in false confidence of Atlas and inflated Atlas stock prices. The inflated Atlas stock price allowed NatualNano to buy and sell the Atlas warrants at a significant profit. Clearly, Tschauder, a NaturalNano stockholder, issued his conflict-tainted report for the purpose of allowing both companies to profit, and for his personal stock holdings to become more valuable. NaturalNano did reap profits of approximately half a million dollars as a result of the Atlas warrants, which profits directly benefited Tschauder and NaturalNano’s other shareholders to the detriment of Atlas shareholders.