yup clearly the criminals at minimar hired this criminal

ORGANIZER OF INTERNATIONAL SECURITIES FRAUD RING CHARGED IN STOCK MANIPULATION CONSPIRACY USING HACKERS AND BOTNET OPERATORS

FOR IMMEDIATE RELEASE

March 21, 2011
www.justice.gov/usao/nj CONTACT: Rebekah Carmichael
Office of Public Affairs
(973) 645-2888

http://www.justice.gov/usao/nj/Press/files/Rad,%20Christopher%20News%20Release.html

NEWARK, N.J. – Federal agents arrested the alleged organizer of an international securities fraud ring employing hackers, botnet operators and e-mail spam distributors today for conspiring to artificially inflate the value of stocks through the scheme, U.S. Attorney Paul J. Fishman announced.

Christopher Rad, 42, of Cedar Park, Texas, was arrested this afternoon by FBI special agents on a federal Indictment charging him with one count of conspiracy to commit securities fraud and transmit multiple commercial e-mail messages with fraudulent information. The defendant is scheduled for an initial appearance and bail hearing this afternoon before U.S. Magistrate Judge Robert L. Pitman in Austin, Texas federal court.

James Bragg, 42, of Chandler, Ariz., pleaded guilty on October 20, 2010, before U.S. District Judge Joel A. Pisano in Trenton, N.J., federal court for his role in hiring botnet operators and engaging in mass e-mail campaigns to pump up the value of stock prior to dumping shares.

According to the Indictment unsealed today, other documents filed in this case, and statements made in Newark and Trenton federal court:

Rad conspired with stock promoters in a scheme to manipulate the price and volume of particular stocks, including stocks with ticker symbols RSUV and VSHE (the “Manipulated Stocks”), in order to later sell them at an artificially inflated price – a practice known as a “pump and dump” scheme. The scheme began as early as November 2007 and continued through February 2009. After conspiring with the stock promoters, Rad organized others to manipulate the stock price.

During his plea hearing, Bragg admitted that as part of his conspiracy with Rad he hired hackers and spammers, including an individual in Russia referred to in the Information as “B.T.” The hackers distributed computer viruses to infect computers around the world and create a virtual army of computers, or “botnet.” The hackers then caused the botnets to distribute spam to promote the Manipulated Stocks. Some of the targeted victim-investors were residents of New Jersey.

In addition to relying on unsuspecting investors to buy into the spam promotions, the hackers also hacked into the brokerage accounts of third parties, liquidated the stocks in those accounts, and then used those accounts to purchase shares of the Manipulated Stocks. This created trading activity in the Manipulated Stocks and increased the volume of shares being traded, further creating an impression that the Manipulated Stocks were worth purchasing.

Rad also agreed with others to trade the Manipulated Stocks between themselves, creating the impression that the stocks were active. In some instances this was done prior to the spam campaigns so that recipients of the spam would perceive active trading in the promoted stocks.

A stock promoter who was also part of the conspiracy falsified documents submitted to attorneys in order to obtain opinion letters to secure millions of freely-trading shares in those stocks. Those letters certified that trading restrictions on shares of the Manipulated Stocks could be lifted because certain conditions set forth in securities regulations were met.

The conspiracy count with which Rad was charged carries a maximum potential penalty of five years in prison and a $250,000 fine.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward in Newark, with the investigation leading to the charges. He also thanked the U.S. Securities and Exchange Commission’s Division of Enforcement.

The government is represented by Assistant U.S. Attorneys Christopher Kelly of the U.S. Attorney’s Office Economic Crimes Unit and Erez Liebermann, Deputy Chief of the Economic Crimes Unit and Chief of the Computer Hacking and Intellectual Property Section.

The charge and allegations contained in the Indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

11-112 ###

Defense counsel: Engin Derkunt, Esq., Austin, Texas

Rad, Christopher Indictment.pdf
http://www.justice.gov/usao/nj/Press/files/pdffiles/2011/Rad,%20Christopher%20Indictment.pdf

http://www.justice.gov/usao/nj/Press/files/Rad,%20Christopher%20News%20Release.html

Christopher Rad, Organizer of International Securities Fraud Ring Charged in Stock Manipulation Conspiracy Using Hackers and Botnet Operators

http://www.outlookseries.com/A0997/Security/3537_Christopher_Rad_Securities_Fraud_Ring_Charged_Stock_Manipulation_Hackers_Botnet_Christopher_Rad.htm

March 22, 2011

Federal agents arrested the alleged organizer of an international securities fraud ring employing hackers, botnet operators, and e-mail spam distributors today for conspiring to artificially inflate the value of stocks through the scheme.

Christopher Rad, 42, of Cedar Park, Texas, was arrested this afternoon by FBI special agents on a federal Indictment charging him with one count of conspiracy to commit securities fraud and transmit multiple commercial e-mail messages with fraudulent information. The defendant is scheduled for an initial appearance and bail hearing this afternoon before U.S. Magistrate Judge Robert L. Pitman in Austin, Texas federal court.

James Bragg, 42, of Chandler, Ariz., pleaded guilty on October 20, 2010, before U.S. District Judge Joel A. Pisano in Trenton, N.J., federal court for his role in hiring botnet operators and engaging in mass e-mail campaigns to pump up the value of stock prior to dumping shares.

According to the indictment unsealed today, other documents filed in this case, and statements made in Newark and Trenton federal court:

Rad conspired with stock promoters in a scheme to manipulate the price and volume of particular stocks, including stocks with ticker symbols RSUV and VSHE (the “Manipulated Stocks”), in order to later sell them at an artificially inflated price—a practice known as a “pump and dump” scheme. The scheme began as early as November 2007 and continued through February 2009. After conspiring with the stock promoters, Rad organized others to manipulate the stock price.

During his plea hearing, Bragg admitted that as part of his conspiracy with Rad he hired hackers and spammers, including an individual in Russia referred to in the information as “B.T.” The hackers distributed computer viruses to infect computers around the world and create a virtual army of computers, or “botnet.” The hackers then caused the botnets to distribute spam to promote the Manipulated Stocks. Some of the targeted victim-investors were residents of New Jersey.

In addition to relying on unsuspecting investors to buy into the spam promotions, the hackers also hacked into the brokerage accounts of third parties, liquidated the stocks in those accounts, and then used those accounts to purchase shares of the Manipulated Stocks. This created trading activity in the Manipulated Stocks and increased the volume of shares being traded, further creating an impression that the Manipulated Stocks were worth purchasing.

Rad also agreed with others to trade the Manipulated Stocks between themselves, creating the impression that the stocks were active. In some instances this was done prior to the spam campaigns so that recipients of the spam would perceive active trading in the promoted stocks.

A stock promoter who was also part of the conspiracy falsified documents submitted to attorneys in order to obtain opinion letters to secure millions of freely trading shares in those stocks. Those letters certified that trading restrictions on shares of the Manipulated Stocks could be lifted because certain conditions set forth in securities regulations were met.

The conspiracy count with which Rad was charged carries a maximum potential penalty of five years in prison and a $250,000 fine.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward in Newark, with the investigation leading to the charges. He also thanked the U.S. Securities and Exchange Commission’s Division of Enforcement.

The government is represented by Assistant U.S. Attorneys Christopher Kelly of the U.S. Attorney’s Office Economic Crimes Unit and Erez Liebermann, Deputy Chief of the Economic Crimes Unit and Chief of the Computer Hacking and Intellectual Property Section.

http://www.outlookseries.com/A0997/Security/3537_Christopher_Rad_Securities_Fraud_Ring_Charged_Stock_Manipulation_Hackers_Botnet_Christopher_Rad.htm

lol

I'm not sure if the SEC will look into it but it should be interesting.

Prosecutors said the manipulated stocks included Remote Surveillance Technologies Inc. and VShield Software Corp.

Computer Expert Pleads Guilty to Hacker Stock Scheme

October 20, 2010, 3:11 PM EDT
By David Voreacos
http://www.businessweek.com/news/2010-10-20/computer-expert-pleads-guilty-to-hacker-stock-scheme.html

Does anyone know the status of the shell here?

Thanks for some kind of update

There is some new info on PS.com

The ibox needs to be up dated here

Trading halted on 09/23/09
http://www.sec.gov/litigation/suspensions.shtml

I agree.

by scion with corrected link to lit release

Trading in the securities of VShield Software Corp. appears to be predicated on apparent misstatements. Certain persons appear to have usurped the identity of a defunct or inactive publicly-traded corporation, initially by reinstating the company without authorization, and then by obtaining a new CUSIP number and ticker symbol based on the apparently false representation that they were duly authorized officers, directors and/or agents of the original publicly-traded corporation.


http://www.sec.gov/litigation/suspensions/2009/34-60707.pdf

Trading in the securities of VShield Software Corp. appears to be predicated on apparent misstatements. Certain persons appear to have usurped the identity of a defunct or inactive publicly-traded corporation, initially by reinstating the company without authorization, and then by obtaining a new CUSIP number and ticker symbol based on the apparently false representation that they were duly authorized officers, directors and/or agents of the original publicly-traded corporation.

http://www.sec.gov/litigation/suspensions/2009/34-60708-o.pdf

looks like the didnt do very good DD and bought a highjacked shell from someone. This used to be a Michael Burke, Select America company. Then somehow they got it from Belmont?

http://www.sec.gov/litigation/suspensions/2009/34-60707-o.pdf

It appears to the Securities and Exchange Commission that there is a lack of
current and accurate information concerning the securities of VShield Software Corp.,
which are quoted on the Pink OTC Markets under the ticker symbol VSHE. Trading in
the securities of VShield Software Corp. appears to be predicated on apparent
misstatements. Certain persons appear to have usurped the identity of a defunct or
inactive publicly-traded corporation, initially by incorporating a new entity using the
same name, and then by obtaining a new CUSIP number and ticker symbol based on the
apparently false representation that they were duly authorized officers, directors and/or
agents of the original publicly-traded corporation.

Agreed. I'm sure it will be active again.

looks like nothing going on here and thats a good thing

Now now.. be nice.. lol. It had a 5k trade yesterday.. one trade every 2 wks.. hmmm.. ok, you're right.

No! Not a thing going on here at this moment in time

nothing, lets hope it remains that way

I see the SEC mentioned cold beverages division under the supervision of Mr. Larry Twombley. The SEC claimed that he put out false and misleading information and eventually had him out and suspended the stock.

I am hearing hot drinks subsidiary is doing fine and I also think they should put out a PR (I believe there were many good news we missed meanwhile) and there's no need to be precautious about announcing them. I guess time will tell HKBV will be warmed up again.

Here's the link you asked for:

http://www.sec.gov/litigation/suspensions/2008/34-58860.pdf

Here's what happened after the letter to Garr. I guess they never answered the letter:


IN THE MATTER OF HAT TRICK BEVERAGE, INC.

The U.S. Securities and Exchange Commission today announced the temporary suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934 (the “Exchange Act”), of trading in the securities of Hat Trick Beverage, Inc., at 9:30 a.m. EDT, October 27, 2008, through 11:59 p.m. EDT, on November 7, 2008.

The Commission temporarily suspended trading in these securities because questions have arisen concerning the the accuracy and adequacy of statements in the company’s press releases and public statements regarding its business operations. Hat Trick Beverage, Inc. does not file periodic reports with the Commission and is quoted on the PinkSheets under the ticker symbol HKBV.

The Commission cautions brokers, dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company.

Further, brokers and dealers should be alert to the fact that, pursuant to Rule 15c2-11 under the Exchange Act, at the termination of the trading suspension, no quotation may be entered unless and until they have strictly complied with all of the provisions of the rule. If any broker or dealer has any questions as to whether or not it has complied with the rule, it should not enter any quotation but immediately contact the staff in the Division of Trading and Markets, Office of Interpretation and Guidance, at (202) 551-5760. If any broker or dealer is uncertain as to what is required by Rule 15c2-11, it should refrain from entering quotations relating to the securities of Hat Trick Beverage, Inc. until such time as it has familiarized itself with the rule and is certain that all of its provisions have been met. If any broker or dealer enters any quotation which is in violation of the rule, the Commission will consider prompt enforcement action.

If any broker, dealer, or other person has any information which may relate to this matter, they should contact David Frohlich, at (202) 551-4963.

http://www.sec.gov/litigation/suspensions/2008/34-58860.pdf

Hat Trick Beverage, Inc.
See also Order
http://www.sec.gov/litigation/suspensions/2008/34-58801-o.pdf

Here's some proof. You see it is addressed to Garr Winters. I especially like the fact that they sent the SEC an order form as proof of a contract that they PR'd. You see, this is why stocks get suspended and delisted. It's quite comical:


Hat Trick Beverages (HKBV) - SEC Letter to HKBV: 01 Oct 08

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
DIVISION OF ENFORCEMENT
Roger Paszarnant
Branch Chief

Direct Dial: (202) 5514979
Facsimile: (202) 772-9230
VIA OVERNIGHT DELIVERY
COPY VIA TELECOPIER 866-455-6270
October 1, 2008

Garr Winters
Hat Trick Beverages Inc.
2325 Hurontario St.,
Suite 170 Mississauga,
ON L5A 4K4 Canada

Dear Mr. Winters:

I respond to your faxed letter dated September 30, 2008. I will not comment about your characterizations of our communications that tend to minimize the seriousness of this situation, but will focus on facts.

The staff is concerned that Hat Trick may have disseminated materially false information to the public. We seek to resolve this issue immediately to help ensure that innocent investors are not being harmed by reliance on false and misleading information.

More specifically, Hat Trick issued at least three public statements regarding a contract with two Arizona supermarket chains_ First, on September 3, 2008, Hat Trick issued a public statement titled "Hat Trick Beverages (HKBV) in over 500 new retail locations" which included the following statements:

a. ts cold beverage division has picked up a major and a significant new distribution in the State of Arizona."

b. "The Company, working with its Arizona distributor, Pinnacle Distributing, has just achieved listings in a total of over 500 new store locations."

c. The Company's Pumped Fitness beverage . _ will now be available in Hi Health Stores, an upscale grocery chain, as well as Fry's, an important mid-market grocery chain."

d. "Hat Trick Beverage CEO, Sender Vaiser commented; 'This is a significant win.
These are strong, mid-sized retailers and they are demonstrating faith in the product concept.

e. "The issuer expects, and projects its initial order of 20,000 cases to begin filling
the retail pipeline with product, in September with up to 250,000 cases of anticipated fulfillment"

f. "The entire contract has a face value of $3,900,000.00 to the issuer.

Second, on September 23, 2008, Hat Trick issued a public statement titled "Hat Trick Beverages (HKBV) Completes Initial Orders With 52 Hi Health Stores" which included the following statement:

"Hat Trick Beverages Inc. (1-11CBV.PK) is pleased to announce that it has received initial orders from Hi Health a 52 store chains (sic]."

Third, on or about September 26, 2008, Hat Trick issued a public statement dated September 25, 2008 and titled "Hat Trick Beverages (HKBV) Confirmation Of Previous News Release Transaction With Hi Health" which included the following statements:

a. "The issuer is using this filing to denounce such rumors, and affirm the validity of the agreement."

b. "The issuer hat (sic] Trick Beverages affirms and confirms to its shareholders that this contract in fact exists and is in a good and valid state."

c. "the buyer's name at Hi Health (which contract is the target of the false rumor) is Mike Gleela."

Since Monday, the staff, in communications with you and Larry Twombly, has repeatedly asked for documentation to verify the existence of a "contract" or "agreement" between Hat Trick and Hi Health. The only information you have provided to date is what appears to be a Hat Trick product order form dated September 25, 2008 billed to Pinnacle Distributing. This document was publicly disclosed by Hat Trick on September 29 "as a true copy of the Hi Health initial purchase order." The only reference to Hi Health is a handwritten note which provides no indication of any contract or agreement regarding Hi Health. It appears to be an order for about 1,000 24-pack cases, not 20,000 cases as referenced in the September 3 announcement, Thus, the "purchase order" provides little support for Hat Trick's public statements.

You stated to Ms. Cain and me that, since last week, you have been trying to substantiate the existence of an agreement by Hi Health to sell Hat Trick products. You thus admit that this is an issue you have been investigating since prior to our contacting you on Monday. The inability of a Hat Trick officer and director to obtain substantiating information in this time frame exacerbates our concern about the information Hat Tick has provided to the public.

Moreover, the staff has contacted Hi-Health Supermart Corporation and Pinnacle Distributing and the information provided does not support the public statements made by Hat Trick. Knowledgeable representatives from both have stated that Hi Health has made no commitment to buy Hat Trick products. In addition, Larry Twombly stated to the staff that Hat Trick's announcements contained inaccuracies--most importantly that there was no direct agreement between Hat Trick and Hi Health.

Finally, repeated messages left for Sender Vaiser have gone unanswered. The staff has been provided with a variety of inconsistent reasons about why he has been unable to contact us, including two from you -- first, that he was busy trying to get information about the Hi Health agreement and, second, that he has been at a trade show. Given the seriousness of the situation, I think it reasonable that the staff expect to hear promptly from the president of a public company who is quoted directly in some of the company's announcements at issue.

Again, evidence obtained by the staff to date indicates that Hat Trick public statements may be materially false. We request that Hat Trick substantiate the claims made it its public statements regarding Hi Health and Fry's by Monday, October 6, 2008. If Hat Trick cannot establish the existence of a valid contract or agreement by Hi Health and Fry's to carry Hat Tick's products, the staff may have no choice but to conclude that the statements are false and will proceed accordingly.

Sincerely,
Roger Paszarnant

Got a link to that proof?

YES, caught red handed lying to regulators

caught lying to regulators

Sorry, nothing proven yet, too much dust raised and....puff. As far as I am concerned VSHE is a non-reporting issuer, the only place to file info, PRs, etc is pinksheets, so please update it with the most current info otherwise you're taking things into your own hands. Placing contact information to SEC and Department of Justice investigators in the IBOX is NOT a priority, the board is not about SEC or DOJ, however as far as I am concerned feel free to put that info as well.

No where near the truth
This company is run by the same crooks who run GLCC MONA RMDM and the others..........NO DIVIES WERE GIVEN OUT!!!!!! SHAREHOLDERS WERE ROBBED!!!!!

That's an even better example than mine. MONA claims that it developed the "proprietary" software.


There's no record of this ever being sold, and now it just appears on another stock's asset list??

Someone's got some splainin' to do. and should start splainin' quickly.

Should I delete this message, since it is not accurate?

Please PM me if you would like to request a deletion.

Thank you.

Your Friendly Moderator....Stratey

I think there's a crime being committed here.

I cannot begin to explain how completely wrong you are AGAIN. On the bright side, at least you are consistent. Read the PR that came out soon after the asset sale and MONA was yet another new company. The PR is in the following post:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=28850891&txt2find=trust|vault

Pay very close attention to the description of MONA at the end of it:

"About Monarc Corporation: Monarc (MONA) is a financial services holding company and a public company quoted on the pink sheets, symbol MONA. MONA operating subsidiaries Cash Next and Brookcor's primary goal is to provide consumer and business loans to businesses that qualify based on the company's unique formula. MONA has developed a proprietary online software, 'Trust Vault' which allows lenders and borrowers to communicate in real time and to transfer documents in electronic format in a filing storage type environment. MONA also operates a B2B business financing division named IFGX. Through IFGX, MONA acquires growth based businesses (ie 'other operating subsidiaries') and spins them off to other publicly traded shells in search of operating entities; which proceeds MONA distributes to its shareholders in a form of a special dividend. MONA's other operating subsidiaries are Canden Financial Inc, Horescon and Syscon Systems beverage control systems. These are inventory control systems and financing solutions for the hospitality industry."

You're right, it wasn't Russian. He is from Serbia.

That's just not true. Trust Vault was never owned by MONA!!

OK. But being 100% sure (without a valid proof) and making such a public statement is something else? That's why I suggested you contact the company first.