Flameret Inc (FLRE)

[nodummy]

I find it very disturbing that Stan Larson's name shows up exactly zero times in the FLRE filings.

If what the CEO says is true that Larson has received tens of millions of shares through debt Note conversions then his name should have shown up as a beneficial owner in the filings ... at the very least his name should have shown up just as the most basic form of required disclosure.

Why hide Stan Larson's involvement? Is it because of the way the tandem of Larson and Glover together raped the shareholders of other entities including PYBX, TCEL, and TRDY? Their involvement in those entities together are well documented:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68535560

Or is it because of the absolute criminal conversion ratios given to Larson for his debt Note conversions as illustrated in the last 10Q filing from July 27, 2011:

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8058981






Let me highlight the key parts of those debt Note conversions:

On November 9, 2010, the Company issued 36,000,000 shares of common stock in partial settlement of debt on previously executed convertible notes payable. The shares of stock issued were recorded at $540,000, or $0.015 per share based on the quoted market price of the shares on the date of issuance, and the amount of debt that was forgiven was equal to $3,600. As such, the Company recorded a loss on settlement of debt in connection with the transaction of $536,400.

36,000,000 shares were issued towards $3,600 of debt. The FLRE shares were trading at $.015/share when that conversion took place meaning that those 36,000,000 shares were worth $540,000.

$540,000 worth of shares issued towards $3,600 worth of debt!!!


On January 20, 2011, the Company issued 9,000,000 shares of common stock in partial settlement of debt on previously executed convertible notes payable. The shares of stock issued were recorded at $90,000, or $0.01 per share based on the quoted market price of the shares on the date of issuance, and the amount of debt that was forgiven was equal to $900. As such, the Company recorded a loss on settlement of debt in connection with the transaction of $89,100.

9,000,000 shares were issued towards $900 of debt. The FLRE shares were trading at $.01/share when that conversion took place meaning that those 9,000,000 shares were worth $90,000.

$90,000 worth of shares issued towards $900 worth of debt!!!


Those are the type of debt Note conversions that only a long time partner and close buddy would get. Those are also the type of debt Note conversions that kill a stock price causing the company to have to do a 1:1000 Reverse Split after only being a publicly traded company for less than 17 months.

It seems obvious to me that any money that Larson really did let the company borrow was done with the main intent being to achieve future enrichment.

On top of the criminal debt Note arrangements done for money borrowed, FLRE is paying somebody some ridiculous consulting fees.

According to the filings during the fiscal year ending August 30, 2010, FLRE paid out $428,950 in professional fees to consultants. Most of those professional fees were paid through the issuing of debt Notes:



Professional fees for the year ended August 31, 2010 were $428,950 compared to $3,827 for the period ended August 31, 2009, an increase of $425,123. The increase in our professional fees was a result of increased services provided by consultants to aid in the process of taking our company public and costs associated with maintaining our filings with the Securities and Exchange Commission (SEC). The majority of these costs were paid through debt or were paid by related parties on behalf of the Company

That is one expensive consultant for a company that has no real business operations and no revenues.

Sort of also makes you wonder if any of the money made from the selling of those super discounted shares is being kicked back to the CEO.


So how much more debt remains to be paid?



$925,397 as of May 31, 2011.

How in the world does a company with no real business operations and no revenues end up with $925,397 in debt Notes in 1 1/2 years of existence?

Largely due to unpaid expenses owed to the unnamed company consultant. Because this company isn't about the shareholders, it is about the insiders.


So if it took $630,000 worth of stock to pay off $4,500 worth of debt how much do you think it will take to pay off $925,397 worth of debt?

Using the same average conversion ratio it would take $129,555,580 worth of stock to pay off $925,397 in debt.

Way more than enough to cause a couple more future reverse splits before the shell is abandoned and the tandem moves on to another publicly trading shell to start the same rinse wash repeat act all over again.


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I love how the company says this:

We have no employees, other than our non-paid CEO, Christopher Glover.

Then later in the same filings it says this:

Subsequent to August 31, 2010, the Company issued 288,600,000 shares of common stock to officers of the Company and consultants for services rendered. These services were valued at $3,659,000, or an average of $0.01 per share based on the quoted market price of the shares on the date of issuance.

$3,659,000 worth of stock was paid to officers and consultants!


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Now for a very important part of this post.


If you look at the 10Q/A filed for the period ending May 31, 2011 you'll see that it says there were 426,695,000 common shares outstanding on June 12, 2011:

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8058981




Then if you look at the 8K that was filed announcing the 1:1000 reverse split you'll see that it says that there were 148,160,000 shares outstanding as of the same date:

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8053431


What happened to the other 280,000,000 shares?

I'll tell you what happened to them. The common shares owned by the insiders of this company were exchanged for preferred shares right before the 1:1000 reverse split took place.

The 250,000,000 shares that Glover issued himself for services back on January 20, 2011 valued at over $2,500,000 all got changed into preferred shares so not only did Glover not have his share ownership divided by 1000 like the common shareholders did, he had his shareholder value multiplied by 1000 instead.

Same goes with the 30,000,000 shares held by Stan Larson.

That is why in this post you have the CEO making this statement:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68967901

"Larson has not converted any shares."

Because Larson now holds preferred shares which can be converted back into common shares. Larson not only got criminally discounted shares towards debt owed to him, he also got to have his share value multiplied by 1000 by avoiding having his stake in the company being reverse split like the common shareholders.

FLRE created a brand new class of Preferred F shares (30,000,000 authorized total) right before the 1:1000 reverse split just for the purpose of protecting the value of Larson and Glover's share ownership.


Larson and Glover did the same exact thing with TRDY recently. All detailed in this post:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=67745322



Larson and Glover will just dilute this shell back down to worthless again through their dirty debt arrangements and preferred share tricks.

It is no coincidence that all the companies they have gotten involved with together have followed the same patterns:

PlayBox (US) Inc (PYBX)
1:500 R/S on 3/11/10
1:1000 R/S on 10/28/10
1:1000 R/S on 4/15/11

Therapy Cells, Inc (TCEL)
1:1500 R/S on 9/19/11

Trudy Corp (TRDY)
1:1500 R/S on 11/10/11

Flameret Inc (FLRE)
1:1000 R/S on 8/3/11