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Wednesday, July 04, 2012 11:23:43 PM
well, well, finally the culprit of DNA* and AWSR comes to light
DODI HANDY IS DIRECTLY CONNECTED TO AWSR, SO THIS POST IS ON TOPIC
Such an example is Dodi Handy aka Dodi Zirkle…I bring up both names because if you just Google the name she goes by professionally, you might miss this mugshot of Dodi Handy and not get the full picture of who Dodi really is.
How are Jarmall and Dodi related?
I purposely grouped Dodi and Jarmall in the same blog post because as this message board post mentions, Dodi is the investor relations behind AWSR, a pump and dump on which Jarmall made $5,000 whle waiting in line at the DMV (see that crazy blog post)….he bought early during the spike and sold LONG before it tanked 99%, just as pretty much every single one of Dodi’s investor relations companies have done.
After all, Dodi is a longtime penny stock promoter, and her picks do well while she puts the press on, then they crash when insiders cash out, or the company goes bankrupt, or fraud charges are leveled, as you’ll read below has happened multiple times with Dodi’s clientele.
Dodi has decades of experience being in charge of multiple promoters’ mailing lists, creating shiny hardcopy mailers full of propaganda for companies in which her or her associates have been compensated or own shares. Here’s her bio from an old SEC filing (her current company, which is on its 4th name change as you’ll see further down in this post, biography doesn’t dare be so detailed about her promotional mailing history
Prior to joining CCEC, Ms. Zirkle served as General Sales Manager of Direct Response Marketing, Inc. (DRM) from November 1989 to June 1993 and later DataBase Direct, Inc., (which was acquired by DRM), two of the largest direct marketing and lettershop firms in the Southeast, where she was responsible for managing the direct marketing needs of national clientele including the National Republican Congressional Campaign Committee in Washington, D.C., TimeWarner Cable, Universal Studios – Florida and Premier Cruise Lines (The Big Red Boat(R)).
Since joining CCEC in 1993, Ms. Zirkle has served in a variety of capacities involving the Company’s operations. Initially, she was responsible for overseeing all production and operational aspects of the Company’s Inside Wall Street campaigns, in addition to managing all database marketing and list rental services. In 1995, she was promoted to Vice President of Operations where she was responsible for creating many of the logistical operating systems employed by the Company today. In 1997, Ms. Zirkle was promoted to Vice President of Corporate Sales where she assisted CCEC’s Chairman and CEO with multiple managerial tasks, the negotiation and direction of high-profile client campaigns, the development and enhancement of CCEC’s debt/equity financing source network, and the implementation of internal expansion efforts. These activities included the development of the Broker Relations Department, the enhancement of the Company’s Financial Consulting division, and the research and development of CCEC’s Market Access Program. In 1998, Ms. Zirkle was promoted to Chief Operating Officer and has since led the management buy-out of CCEC from the original founder and sole owner via the creation of Madison & Wall Financial Services, Inc.
This detailed biography helps us understand Dodi VERY well as “she assisted CCEC’s Chairman and CEO with…the development of the broker relations department” and when that Chairman and CEO, John R. Manion, as this old article entitled “Embattled Securities Promoter Steps Down” did step down and Dodi led the employees to buyout the boiler room investor relations firm, she was quoted HERE as saying:
John Manion has been a mentor to many of us. We will miss his contributions, not just to our business, but to our lives. His proven leadership and corporate vision have served as the cornerstones on which Continental Capital has been built and upon which all future successes will be founded.
Given that John Manion was her mentor, it was his “vision” that she wanted to build upon and the fact that she created their “broker relations department”, it’s interesting to note that Manion was convicted of fraud and served time and the Bloomberg article detailing the conviction says “Legend accused of mob ties Russian, Italian crime figures linked by feds to defunct firm’s stock deals”, “On July 21, Manion settled unrelated insider trading charges filed by the SEC by agreeing to pay $40,186 and not commit securities fraud in the future.” and worse:
However, it is known that Staples had met with John Manion of Apopka. Manion reportedly stated he had associates in New York who could bolster — even control — the struggling public company’s stock price. Manion is among those named in the 15-page federal indictment; specifically for his involvement with Legend Sports.
According to the indictment, Manion, along with members of the Colombo crime family and Russian organized crime, came to control virtually all of the tradeable stock of Legend and two other publicly traded companies.
That allowed them to artificially inflate the price of Legend’s stock. Once the stock price began rising, a small army of unregistered brokers and cold callers began aggressively selling the stock at its new, high price to unwary investors.
No longer supported by brokers touting its strengths, and battered by the sudden sell-off, the stock price plummeted, leaving the new investors holding near-worthless paper.
But by then, fat commissions had enabled the boiler room operations to shave profits: The stock of Legend and the two other companies alone netted the group an estimated $10 million in profits.
Remember Dodi’s bio said “she was responsible for overseeing all production and operational aspects of the Company’s Inside Wall Street campaigns, in addition to managing all database marketing and list rental services” and this article regarding Manion’s conviction says:
“In 1996, Manion and Continental settled SEC fraud charges relating to their public relations work for First Entertainment Corp., a movie producer, in 1992 and 1993. Neither Manion nor Continental admitted wrongdoing. The SEC alleged that Continental distributed 400,000 copies of its ‘Inside Wall Street’ newsletter touting First Entertainment’s stock without disclosing that Continental was paid in shares worth more than $700,000 to write the reports. Manion and Continental agreed not to commit securities fraud in the future.”
Dodi’s current pump is DIMI, which I actually bought on the first day of the promotion at $1.07 and made some money…it’s a laughable 2-person company whose latest SEC filing shows it has no revenues and under $1 million in the bank (only because they recently sold a ton of shares at 17 cents/share, which is 1/10th of the current price) and is currently losing $100,000+ every 3 months. Yet thanks to Dodi’s “investor relations”, DIMI is valued at over $700 million…hence which I’m currently short (my subscribers of my 4 newsletters know how I expect this to play out).
Of course, as orchestrated by investor relations pro Dodi, DIMI did just use their surging stock price to acquire an app company that has done $14,000 in revenue…and despite having no real cash, no revenues, no product for sale and no real employees, DIMI, thanks to Dodi, who is listed as the press release’s contact, did commence an “awareness campaign”, which is the cause of the stock price surge.
Why promote a company with so little going for it? To sell shares of course!
Just like great pumps of the past, SPNG and POTG and dozens more, DIMI issued a press release stating they would retire/cancel some of their shares…do I believe that they actually do retire these shares?
Of course not!
No different than recent pump IDNGD (which subscribers know I shorted just before it dropped 90% in a week…blog post coming soon), these pumps mess with their share structure just to mess with short sellers and confuse the gullible into thinking the companies are real and good investments…when in reality, the companies know regulators are so incompetent and brokers are so corrupt that they can sell these “retired” shares and pretend they never existed.
This pump, like every other one of Dodi’s pumps in the past, will soon crash 90-99% no different than THIS pump based out of a barn and THIS pump hyped up by a one man operating out of this shack and his cell phone and countless more…just like these 77 pumps I mention in this video, all of which have crash 90-99% after experiencing the same kind of spiking pattern that DIMI is currently enjoying all thanks to people like Dodi and their penny stock promotion campaigns.
What I find most interesting that while Dodi and her firm are listed as the investor relations company behind DIMI, there’s no mention of her compensation nor how many shares she or her firm owns, the EXACT same problem that got her old boss and mentor, John Manion, whose vision she wanted to continue, into so much trouble int he past when their Inside Wall Street newsletter, which as Dodi’s bio states she was responsible for, didn’t include any disclaimer of how they were paid in shares worth $700,000 to write the reports.
Take a look at DIMI’s hardcopy direct-mailer, Dodi’s specialty which as you remember from her bio was her specialty as she worked with “Florida and Premier Cruise Lines (The Big Red Boat(R))” and as you can read in the disclaimer was financed by $2.4 million paid for by a company called Cloud Focus Group (another Dodi company?!?!?!)
Hmmmmmmmmmm, Dodi, am I going to get to feature another mugshot of you soon? Do you miss your mentor John Manion and want to go visit him in prison?
I don’t know if or how much Dodi and her firm are getting paid by DIMI insiders or shareholders or if she owns this Cloud Focus Group or what, but I’d appreciate greater transparency, just like I show how my students have made over $4 million in the past few years and you can see how trade-for-trade.
But promoters like Dodi Handy aka Dodi Zirkle will never be transparent because it would ruin their business.
Dodi has been pumping for decades, she’s been the main PR person for multiple frauds, in fact researching her for two days leads me to believe she is the penny stock promoter with the single most fraud clients like Allou Beauty and Healthcare where she said:
Dodi Zirkle, Chief Operating Officer of Continental Capital, stated, “To say that we are impressed with the depth and breadth of Allou, its management and its future outlook, is a considerable understatement. Everyone at Continental Capital is very excited about introducing such a fundamentally strong company to our network of investors, stockbrokers, analysts, and fund managers and looks forward to effectively educating the Street on this compelling, undervalued situation worthy of mass market awareness. Despite 13 years of consecutive profitability, significant revenue growth, and a reputation for excellence in its field, Allou currently trades at a steep discount to its industry peers. With aggressive representation of Allou and the employment of comprehensive marketing tools and resources, Continental Capital intends to play a key role in obtaining the Company broader market awareness — both domestically and abroad, enhanced market liquidity and, ultimately, a fairer market valuation.”
A little while later, Allou’s stock tanked, the company went bankrupt and executives plead guilty to fraud:
Top executives of Allou Healthcare Inc. and related companies have pleaded guilty to crimes arising from a massive corporate fraud scheme at Allou. The indictment obtained by the U.S. Attorney’s office for the Eastern District of New York detailed a staggering, decade-long bank fraud and securities fraud scheme involving hundreds of millions of dollars of phony sales and grossly inflated inventory, and a mail fraud and insurance fraud scheme arising from a fire at Allou’s Brooklyn warehouse involving a false insurance claim and the bribery of an undercover fre marshal to change the cause of the fire from “arson” to “accidental.” The related schemes resulted in losses to creditors, investors, and other victims in the amount of an estimated $160 million and ultimately drove Allou into bankruptcy.
OK, being attached to one fraud isn’t that bad,, we all make mistakes, right?
Unfortunately, Dodi’s past is VERY checkered, as she’s had dealings with Aaron Tsai, a multiple SEC offender, known for selling unregistered shares, as you can read about HERE and HERE and HERE which basically says Tsai helped convicted stock manipulator Dr. Jui-Teng Lin, who according to the SEC complaint “dumped a substantial amount of Surgilight stock on an unsuspecting public through two nominee accounts and then wired the proceeds overseas” and Tsai was finally barred from the entire brokerage business in 2010 for “based on his wrongdoing in the late 1990s through 2000 while associated with registered broker-dealers.”
Scroll down on this post and you’ll read an article from the San Jose Mercury News:
Consider the strange story of ESafetyworld (SFTY),
It’s hard to know precisely what Madison & Wall did for ESafetyworld. I couldn’t get Madison & Wall’s chief, Dodi Handy, to call me back. But just like some of its clients, Madison & Wall has an interesting history. Once called Continental Capital & Equity, the firm was founded by John R. Manion, 53, who has had a series of run-ins with securities regulators.
Though the company since has been bought out by employees who say that Manion’s problems have no relation with the firm, a close look at developments this year suggests that investors might pause before buying the stock of Madison & Wall’s clients.
Two weeks ago, Nasdaq stopped the trading in one of those companies, GenesisIntermedia (GENI) as the Securities and Exchange Commission began probing dealing in its shares by Saudi arms dealer Adnan Khashoggi. Another Madison & Wall client, Ursus Telecom (UTCC), filed for bankruptcy protection in April. That came a little more than a month after a former Ursus official filed to sell 200,000 shares while the stock enjoyed a brief rebound during a Madison & Wall-sponsored product campaign.
The SEC went after eSafetyWorld and their executives for fraud, just like Dodi’s other client Allou, saying:
In the first action, the SEC claimed that eSafetyWorld’s CEO, Edward A Heil, and CFO, R. Bret Jenkins, engaged in fraudulent schemes in 2001 involving issuance of a false press release, financial fraud and/or market manipulation. According to the SEC’s complaint, on October 19, 2001, shortly after the anthrax attacks, Heil drafted eSafetyWorld’s false press release about a supposed revolutionary anthrax-containment device. The press release had a dramatic effect on the value of eSafetyWorld shares, causing prices to increase by 413% in one day. Volume for that day shot up by 57,085%.
The SEC also alleges that Heil and Jenkins aided eSafetyWorld’s improper conduct by implementing improper revenue recognition policies and understating net losses in the Company’s financial reports.
The improper conduct apparently did not end there. In 2001, in order to manipulate the stock of eSafety, Heil purportedly directed the purchase and sale of eSafety stock and transferred $473,288 in eSafety funds to two entities, one of which he controlled. The SEC says that Heil executed a false loan agreement and provided eSafety’s auditors with a false loan confirmation to conceal the use of monies in the manipulation.
For those keeping track at home, that’s Dodi’s second fraudulent client, but the third is the biggest since that San Jose Mercury reporter mentioned GenesisIntermedia (GENI) and its ties to Saudi arms dealer Adnan Khashoggi. Adnan and this company have their own Wikipedia page and an LA Times article talks about how the SEC went after them for fraud too:
Saudi financier Adnan Khashoggi and former GenesisIntermedia Inc. Chief Executive Ramy El-Batrawi were sued by U.S. regulators over claims that they orchestrated a $130-million stock loan and manipulation scheme.
From 1999 to 2001, Khashoggi, El-Batrawi and others loaned $130 million in GenesisIntermedia’s shares to broker-dealers while allegedly artificially inflating the stock price, the Securities and Exchange Commission said Thursday. El-Batrawi failed to repay the loans when the alleged scheme collapsed, causing some of the dealer-brokers to go bankrupt, the SEC said.
(The article interestingly includes a brief passage about penny stock promoter Courtney Smith who I featured as he was paid $400,000 to promote a company based out of a UPS store whose stock fell from $1.75 to 25 cents/share in 4 days after a 2 week promotion specifically timed to inflate the price before insiders could sell (sound familiar DIMI?))
Can you guess who handled the press of GENI when “inflating the stock price”?
Interestingly, in this message board post Dodi said:
Furthermore, we do not advocate “boiler room” tactics for increasing awareness of our client companies, however we do engage in telemarketing activities to pro-actively educate the professional investment community (i.e. retail brokers, institutions and analysts) on those companies whose fundamentals and technicals meet the expressed interest criteria from individuals within that community
Our financial relations executives are highly trained and effective marketing professionals who understand the sensitivities involved in working in a highly regulated environment and one in which they exhibit only the highest levels of responsibility, integrity and professionalism. Tours of our facilities are common and encouraged.
It is our belief that in today’s sophisticated investment arena, companies can not and should not wait for the market to come to them. If they are to attract broad market appreciation for their businesses, then they must pro-actively educate this arena on the reasons why they are worthy of that appreciation. In our professional opinion, GenesisIntermedia is such a company.
Whoops!
Another fraud from Dodi’s past is Xybernaut, check out the details on that $55 million fraud here.
And there’s plenty more Dodi frauds and questionable associates, but I’ve written nearly 4,000 words today so I’ll only include a bit more.
Worse, Khashoggi, along with Ramy El-Batrawi, the principal financier behind GenesisIntermedia, Inc. (GENI) have ties with the Filipino boiler room king Amador Pastrana who has a VERY interesting feature article on him here and also Rakesh Sexana who just got sentenced to 10 years in jail for embezzlement.
What a group of winners!
OK, OK, let’s play devil’s advocate for a second, maybe Dodi just got realllllly unlucky in her dealings with arms dealer Adnan, but she learned her lesson, right?
Unfortunately, Dodi’s company Madison & Wall, as confirmed by StockLemon HERE, was also the investor relations for Junum Inc., a telemarketing company owned by Khashoggi, which also went bankrupt and was only exposed due to the boiler room operators complaining to the press they hadn’t been paid!
Long story short, penny stock promoter Dodi Handy, arms dealer Adnan Khashoogi and a host of unethical boiler room operators, fraudsters, insider traders, embezzlers, manipulators all are connected and whenever any of these schemes like AWSR and DIMI spike, it’s great to buy early, like trading challenge student Jarmall did on AWSR, locking in $5,000 in profits after he started with just $500, or when I actually bought/alerted subscribers of my 4 newsletters about my buy of DIMI at $1.07 before its 70% spike over the past 3 weeks…and then the best bet is to bet against these pumps since they ALL dump 90-99% within days or weeks.
DODI HANDY IS DIRECTLY CONNECTED TO AWSR, SO THIS POST IS ON TOPIC
Such an example is Dodi Handy aka Dodi Zirkle…I bring up both names because if you just Google the name she goes by professionally, you might miss this mugshot of Dodi Handy and not get the full picture of who Dodi really is.
How are Jarmall and Dodi related?
I purposely grouped Dodi and Jarmall in the same blog post because as this message board post mentions, Dodi is the investor relations behind AWSR, a pump and dump on which Jarmall made $5,000 whle waiting in line at the DMV (see that crazy blog post)….he bought early during the spike and sold LONG before it tanked 99%, just as pretty much every single one of Dodi’s investor relations companies have done.
After all, Dodi is a longtime penny stock promoter, and her picks do well while she puts the press on, then they crash when insiders cash out, or the company goes bankrupt, or fraud charges are leveled, as you’ll read below has happened multiple times with Dodi’s clientele.
Dodi has decades of experience being in charge of multiple promoters’ mailing lists, creating shiny hardcopy mailers full of propaganda for companies in which her or her associates have been compensated or own shares. Here’s her bio from an old SEC filing (her current company, which is on its 4th name change as you’ll see further down in this post, biography doesn’t dare be so detailed about her promotional mailing history
Prior to joining CCEC, Ms. Zirkle served as General Sales Manager of Direct Response Marketing, Inc. (DRM) from November 1989 to June 1993 and later DataBase Direct, Inc., (which was acquired by DRM), two of the largest direct marketing and lettershop firms in the Southeast, where she was responsible for managing the direct marketing needs of national clientele including the National Republican Congressional Campaign Committee in Washington, D.C., TimeWarner Cable, Universal Studios – Florida and Premier Cruise Lines (The Big Red Boat(R)).
Since joining CCEC in 1993, Ms. Zirkle has served in a variety of capacities involving the Company’s operations. Initially, she was responsible for overseeing all production and operational aspects of the Company’s Inside Wall Street campaigns, in addition to managing all database marketing and list rental services. In 1995, she was promoted to Vice President of Operations where she was responsible for creating many of the logistical operating systems employed by the Company today. In 1997, Ms. Zirkle was promoted to Vice President of Corporate Sales where she assisted CCEC’s Chairman and CEO with multiple managerial tasks, the negotiation and direction of high-profile client campaigns, the development and enhancement of CCEC’s debt/equity financing source network, and the implementation of internal expansion efforts. These activities included the development of the Broker Relations Department, the enhancement of the Company’s Financial Consulting division, and the research and development of CCEC’s Market Access Program. In 1998, Ms. Zirkle was promoted to Chief Operating Officer and has since led the management buy-out of CCEC from the original founder and sole owner via the creation of Madison & Wall Financial Services, Inc.
This detailed biography helps us understand Dodi VERY well as “she assisted CCEC’s Chairman and CEO with…the development of the broker relations department” and when that Chairman and CEO, John R. Manion, as this old article entitled “Embattled Securities Promoter Steps Down” did step down and Dodi led the employees to buyout the boiler room investor relations firm, she was quoted HERE as saying:
John Manion has been a mentor to many of us. We will miss his contributions, not just to our business, but to our lives. His proven leadership and corporate vision have served as the cornerstones on which Continental Capital has been built and upon which all future successes will be founded.
Given that John Manion was her mentor, it was his “vision” that she wanted to build upon and the fact that she created their “broker relations department”, it’s interesting to note that Manion was convicted of fraud and served time and the Bloomberg article detailing the conviction says “Legend accused of mob ties Russian, Italian crime figures linked by feds to defunct firm’s stock deals”, “On July 21, Manion settled unrelated insider trading charges filed by the SEC by agreeing to pay $40,186 and not commit securities fraud in the future.” and worse:
However, it is known that Staples had met with John Manion of Apopka. Manion reportedly stated he had associates in New York who could bolster — even control — the struggling public company’s stock price. Manion is among those named in the 15-page federal indictment; specifically for his involvement with Legend Sports.
According to the indictment, Manion, along with members of the Colombo crime family and Russian organized crime, came to control virtually all of the tradeable stock of Legend and two other publicly traded companies.
That allowed them to artificially inflate the price of Legend’s stock. Once the stock price began rising, a small army of unregistered brokers and cold callers began aggressively selling the stock at its new, high price to unwary investors.
No longer supported by brokers touting its strengths, and battered by the sudden sell-off, the stock price plummeted, leaving the new investors holding near-worthless paper.
But by then, fat commissions had enabled the boiler room operations to shave profits: The stock of Legend and the two other companies alone netted the group an estimated $10 million in profits.
Remember Dodi’s bio said “she was responsible for overseeing all production and operational aspects of the Company’s Inside Wall Street campaigns, in addition to managing all database marketing and list rental services” and this article regarding Manion’s conviction says:
“In 1996, Manion and Continental settled SEC fraud charges relating to their public relations work for First Entertainment Corp., a movie producer, in 1992 and 1993. Neither Manion nor Continental admitted wrongdoing. The SEC alleged that Continental distributed 400,000 copies of its ‘Inside Wall Street’ newsletter touting First Entertainment’s stock without disclosing that Continental was paid in shares worth more than $700,000 to write the reports. Manion and Continental agreed not to commit securities fraud in the future.”
Dodi’s current pump is DIMI, which I actually bought on the first day of the promotion at $1.07 and made some money…it’s a laughable 2-person company whose latest SEC filing shows it has no revenues and under $1 million in the bank (only because they recently sold a ton of shares at 17 cents/share, which is 1/10th of the current price) and is currently losing $100,000+ every 3 months. Yet thanks to Dodi’s “investor relations”, DIMI is valued at over $700 million…hence which I’m currently short (my subscribers of my 4 newsletters know how I expect this to play out).
Of course, as orchestrated by investor relations pro Dodi, DIMI did just use their surging stock price to acquire an app company that has done $14,000 in revenue…and despite having no real cash, no revenues, no product for sale and no real employees, DIMI, thanks to Dodi, who is listed as the press release’s contact, did commence an “awareness campaign”, which is the cause of the stock price surge.
Why promote a company with so little going for it? To sell shares of course!
Just like great pumps of the past, SPNG and POTG and dozens more, DIMI issued a press release stating they would retire/cancel some of their shares…do I believe that they actually do retire these shares?
Of course not!
No different than recent pump IDNGD (which subscribers know I shorted just before it dropped 90% in a week…blog post coming soon), these pumps mess with their share structure just to mess with short sellers and confuse the gullible into thinking the companies are real and good investments…when in reality, the companies know regulators are so incompetent and brokers are so corrupt that they can sell these “retired” shares and pretend they never existed.
This pump, like every other one of Dodi’s pumps in the past, will soon crash 90-99% no different than THIS pump based out of a barn and THIS pump hyped up by a one man operating out of this shack and his cell phone and countless more…just like these 77 pumps I mention in this video, all of which have crash 90-99% after experiencing the same kind of spiking pattern that DIMI is currently enjoying all thanks to people like Dodi and their penny stock promotion campaigns.
What I find most interesting that while Dodi and her firm are listed as the investor relations company behind DIMI, there’s no mention of her compensation nor how many shares she or her firm owns, the EXACT same problem that got her old boss and mentor, John Manion, whose vision she wanted to continue, into so much trouble int he past when their Inside Wall Street newsletter, which as Dodi’s bio states she was responsible for, didn’t include any disclaimer of how they were paid in shares worth $700,000 to write the reports.
Take a look at DIMI’s hardcopy direct-mailer, Dodi’s specialty which as you remember from her bio was her specialty as she worked with “Florida and Premier Cruise Lines (The Big Red Boat(R))” and as you can read in the disclaimer was financed by $2.4 million paid for by a company called Cloud Focus Group (another Dodi company?!?!?!)
Hmmmmmmmmmm, Dodi, am I going to get to feature another mugshot of you soon? Do you miss your mentor John Manion and want to go visit him in prison?
I don’t know if or how much Dodi and her firm are getting paid by DIMI insiders or shareholders or if she owns this Cloud Focus Group or what, but I’d appreciate greater transparency, just like I show how my students have made over $4 million in the past few years and you can see how trade-for-trade.
But promoters like Dodi Handy aka Dodi Zirkle will never be transparent because it would ruin their business.
Dodi has been pumping for decades, she’s been the main PR person for multiple frauds, in fact researching her for two days leads me to believe she is the penny stock promoter with the single most fraud clients like Allou Beauty and Healthcare where she said:
Dodi Zirkle, Chief Operating Officer of Continental Capital, stated, “To say that we are impressed with the depth and breadth of Allou, its management and its future outlook, is a considerable understatement. Everyone at Continental Capital is very excited about introducing such a fundamentally strong company to our network of investors, stockbrokers, analysts, and fund managers and looks forward to effectively educating the Street on this compelling, undervalued situation worthy of mass market awareness. Despite 13 years of consecutive profitability, significant revenue growth, and a reputation for excellence in its field, Allou currently trades at a steep discount to its industry peers. With aggressive representation of Allou and the employment of comprehensive marketing tools and resources, Continental Capital intends to play a key role in obtaining the Company broader market awareness — both domestically and abroad, enhanced market liquidity and, ultimately, a fairer market valuation.”
A little while later, Allou’s stock tanked, the company went bankrupt and executives plead guilty to fraud:
Top executives of Allou Healthcare Inc. and related companies have pleaded guilty to crimes arising from a massive corporate fraud scheme at Allou. The indictment obtained by the U.S. Attorney’s office for the Eastern District of New York detailed a staggering, decade-long bank fraud and securities fraud scheme involving hundreds of millions of dollars of phony sales and grossly inflated inventory, and a mail fraud and insurance fraud scheme arising from a fire at Allou’s Brooklyn warehouse involving a false insurance claim and the bribery of an undercover fre marshal to change the cause of the fire from “arson” to “accidental.” The related schemes resulted in losses to creditors, investors, and other victims in the amount of an estimated $160 million and ultimately drove Allou into bankruptcy.
OK, being attached to one fraud isn’t that bad,, we all make mistakes, right?
Unfortunately, Dodi’s past is VERY checkered, as she’s had dealings with Aaron Tsai, a multiple SEC offender, known for selling unregistered shares, as you can read about HERE and HERE and HERE which basically says Tsai helped convicted stock manipulator Dr. Jui-Teng Lin, who according to the SEC complaint “dumped a substantial amount of Surgilight stock on an unsuspecting public through two nominee accounts and then wired the proceeds overseas” and Tsai was finally barred from the entire brokerage business in 2010 for “based on his wrongdoing in the late 1990s through 2000 while associated with registered broker-dealers.”
Scroll down on this post and you’ll read an article from the San Jose Mercury News:
Consider the strange story of ESafetyworld (SFTY),
It’s hard to know precisely what Madison & Wall did for ESafetyworld. I couldn’t get Madison & Wall’s chief, Dodi Handy, to call me back. But just like some of its clients, Madison & Wall has an interesting history. Once called Continental Capital & Equity, the firm was founded by John R. Manion, 53, who has had a series of run-ins with securities regulators.
Though the company since has been bought out by employees who say that Manion’s problems have no relation with the firm, a close look at developments this year suggests that investors might pause before buying the stock of Madison & Wall’s clients.
Two weeks ago, Nasdaq stopped the trading in one of those companies, GenesisIntermedia (GENI) as the Securities and Exchange Commission began probing dealing in its shares by Saudi arms dealer Adnan Khashoggi. Another Madison & Wall client, Ursus Telecom (UTCC), filed for bankruptcy protection in April. That came a little more than a month after a former Ursus official filed to sell 200,000 shares while the stock enjoyed a brief rebound during a Madison & Wall-sponsored product campaign.
The SEC went after eSafetyWorld and their executives for fraud, just like Dodi’s other client Allou, saying:
In the first action, the SEC claimed that eSafetyWorld’s CEO, Edward A Heil, and CFO, R. Bret Jenkins, engaged in fraudulent schemes in 2001 involving issuance of a false press release, financial fraud and/or market manipulation. According to the SEC’s complaint, on October 19, 2001, shortly after the anthrax attacks, Heil drafted eSafetyWorld’s false press release about a supposed revolutionary anthrax-containment device. The press release had a dramatic effect on the value of eSafetyWorld shares, causing prices to increase by 413% in one day. Volume for that day shot up by 57,085%.
The SEC also alleges that Heil and Jenkins aided eSafetyWorld’s improper conduct by implementing improper revenue recognition policies and understating net losses in the Company’s financial reports.
The improper conduct apparently did not end there. In 2001, in order to manipulate the stock of eSafety, Heil purportedly directed the purchase and sale of eSafety stock and transferred $473,288 in eSafety funds to two entities, one of which he controlled. The SEC says that Heil executed a false loan agreement and provided eSafety’s auditors with a false loan confirmation to conceal the use of monies in the manipulation.
For those keeping track at home, that’s Dodi’s second fraudulent client, but the third is the biggest since that San Jose Mercury reporter mentioned GenesisIntermedia (GENI) and its ties to Saudi arms dealer Adnan Khashoggi. Adnan and this company have their own Wikipedia page and an LA Times article talks about how the SEC went after them for fraud too:
Saudi financier Adnan Khashoggi and former GenesisIntermedia Inc. Chief Executive Ramy El-Batrawi were sued by U.S. regulators over claims that they orchestrated a $130-million stock loan and manipulation scheme.
From 1999 to 2001, Khashoggi, El-Batrawi and others loaned $130 million in GenesisIntermedia’s shares to broker-dealers while allegedly artificially inflating the stock price, the Securities and Exchange Commission said Thursday. El-Batrawi failed to repay the loans when the alleged scheme collapsed, causing some of the dealer-brokers to go bankrupt, the SEC said.
(The article interestingly includes a brief passage about penny stock promoter Courtney Smith who I featured as he was paid $400,000 to promote a company based out of a UPS store whose stock fell from $1.75 to 25 cents/share in 4 days after a 2 week promotion specifically timed to inflate the price before insiders could sell (sound familiar DIMI?))
Can you guess who handled the press of GENI when “inflating the stock price”?
Interestingly, in this message board post Dodi said:
Furthermore, we do not advocate “boiler room” tactics for increasing awareness of our client companies, however we do engage in telemarketing activities to pro-actively educate the professional investment community (i.e. retail brokers, institutions and analysts) on those companies whose fundamentals and technicals meet the expressed interest criteria from individuals within that community
Our financial relations executives are highly trained and effective marketing professionals who understand the sensitivities involved in working in a highly regulated environment and one in which they exhibit only the highest levels of responsibility, integrity and professionalism. Tours of our facilities are common and encouraged.
It is our belief that in today’s sophisticated investment arena, companies can not and should not wait for the market to come to them. If they are to attract broad market appreciation for their businesses, then they must pro-actively educate this arena on the reasons why they are worthy of that appreciation. In our professional opinion, GenesisIntermedia is such a company.
Whoops!
Another fraud from Dodi’s past is Xybernaut, check out the details on that $55 million fraud here.
And there’s plenty more Dodi frauds and questionable associates, but I’ve written nearly 4,000 words today so I’ll only include a bit more.
Worse, Khashoggi, along with Ramy El-Batrawi, the principal financier behind GenesisIntermedia, Inc. (GENI) have ties with the Filipino boiler room king Amador Pastrana who has a VERY interesting feature article on him here and also Rakesh Sexana who just got sentenced to 10 years in jail for embezzlement.
What a group of winners!
OK, OK, let’s play devil’s advocate for a second, maybe Dodi just got realllllly unlucky in her dealings with arms dealer Adnan, but she learned her lesson, right?
Unfortunately, Dodi’s company Madison & Wall, as confirmed by StockLemon HERE, was also the investor relations for Junum Inc., a telemarketing company owned by Khashoggi, which also went bankrupt and was only exposed due to the boiler room operators complaining to the press they hadn’t been paid!
Long story short, penny stock promoter Dodi Handy, arms dealer Adnan Khashoogi and a host of unethical boiler room operators, fraudsters, insider traders, embezzlers, manipulators all are connected and whenever any of these schemes like AWSR and DIMI spike, it’s great to buy early, like trading challenge student Jarmall did on AWSR, locking in $5,000 in profits after he started with just $500, or when I actually bought/alerted subscribers of my 4 newsletters about my buy of DIMI at $1.07 before its 70% spike over the past 3 weeks…and then the best bet is to bet against these pumps since they ALL dump 90-99% within days or weeks.
Do your own DD, consider all my posts my opinion
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