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SEALED DOCUMENT- PLEA AGREEMENT for Defendant Mark Harris. (mat) (Entered: 06/12/2013)

NOTE TO MARK HARRIS WHO FLIPPED FIRST: The government works its way up the criminal hierarchy to get to the biggest fish

The government attempts to flip the smallest fish to get to the biggest fish. The investigators usually attempt to use the testimony of the smallest fish to work their way up the ladder to the middle fish and than use the middle fish to catch the biggest fish. The government uses the smallest fish to turn in the middle fish and the middle fish to turn in the biggest fish. Each level of fish is used as bait by the government to reel in the next higher level of fish.

The government would much rather deep fry the biggest fish than either the middle fish or the smallest fish. The government usually considers the smallest fish, small fry. The government expends enormous time and economic resources to investigate and prosecute white collar crimes. As the government works hard, its hunger grows. After so much work by the government, the smallest fish and the middle fish will hardly fill their appetite. The government wants to deep fry the biggest fish.

The Smallest Fish

The smallest fish have to worry about both the middle fish and the biggest fish distancing itself from them. In turn, the middle fish have to worry about the biggest fish distancing itself from both the smallest fish and the middle fish. The smallest fish need to worry about both the middle fish and the biggest fish leaving them hanging out to dry, all alone in the government's net. The smallest fish should look for any subtle changes in the behavior of both the middle fish and the biggest fish for clues as to whether those other fish (the middle fish and the biggest fish) will let the smallest fish fry. After all, if the government cannot eat one big fish or several middle fish, it can fill its appetite by eating plenty of small fish. As a result, the smallest fish become paranoid as their fears grow about the threat from each level of fish above them and the government right in front of them.

The Middle Fish

The middle fish have the biggest problem. The government usually flips the smallest fish to get to the middle fish that is closest to the biggest fish. The middle fish have to worry that the smallest fish do not turn them in to the government to fry. The middle fish also have to worry that the biggest fish may distance itself from the middle fish and leave them hanging out to dry. The middle fish should be alert for any subtle changes in behavior from both the smallest fish and the biggest fish. If the government cannot eat the biggest fish, it can always fill its appetite with plenty of small fish and several middle fish. It's particularly tough being the middle fish. As a result, the middle fish often becomes paranoid as they worry about the threat from the smallest fish under it, the biggest fish over it, and the government right in the middle.

The Biggest Fish

The government loves to feast on the biggest fish. After so much hard work and effort, the government's hunger can best be filled by eating the biggest fish. The biggest fish has to keep both the middle fish and the smallest fish in line, while distancing itself from the other fish. It is quite a balancing act. If the biggest fish stays too close to the other fish, it risks being cast too early into the government's net. Rather, the biggest fish hopes that the governments hunger is satisfied by eating only the smallest fish and/or the middle fish.

If the biggest fish distances itself from the either the smallest fish or the middle fish, it risks alienating the other fish who do not want to fry instead of the biggest fish. The biggest fish must remain alert for any subtle changes in the behavior of both the smallest fish and the middle fish. The biggest fish knows that the first one of the other smaller fish (the smallest fish and the middle fish) to cooperate with the government usually gets the best deal and does not become part of the festive meal. It is often called a race to the prosecutor's office to be the first fish in, so the winner may be able to cut the best deal with the government and avoid being fried. As a result, the biggest fish often becomes paranoid, as it fears the threat of the smallest fish and the middle fish below it and the government bearing down on it.

The Government

The government often casts a wide net in its investigation of white collar crime. The government investigators use the smallest fish from its net as bait to catch the middle fish and they use the middle fish as bait to catch the big fish. The government prosecutors feed on the paranoia of the little fish, the middle fish, and the biggest fish as they scramble to avoid becoming part of the government's festive meal.

As I said, the government's wants to fry the big fish to satisfy its strong appetite. However, if the biggest fish does not fry, the other fish will fry, instead of the biggest fish. Both the smallest fish and the middle fish would much rather be eaten raw by the government, than to be cooked deep fried.

After all, how many times have you heard criminals refer to government investigations as "fishing expeditions."

Written by:

Sam E. Antar (former Crazy Eddie CFO & convicted felon)

For additional advice from a convicted felon, please read my other blog posts:



Fourteen Arrested for Market Manipulation Schemes That Caused Thousands of Investors to Lose More Than $30 Million

Two Federal Indictments Charge 15 Defendants in Plots That Fraudulently Inflated Stock Values and Laundered Profits Through Offshore Accounts

U.S. Attorney's Office February 14, 2013
  • Central District of California (213) 894-2434

LOS ANGELES-Federal authorities have arrested 14 people named in two federal indictments that allege long-term schemes to manipulate stock prices that led to more than 20,000 investors losing over $30 million when artificially inflated stock prices collapsed. As one defendant described his scheme during a wiretapped phone call: "What I do is turn stock into money."

The arrests were made yesterday after two grand jury indictments were unsealed Wednesday. The indictments detail two separate, large-scale fraud schemes in which conspirators gained control of the majority of the stock of publicly traded companies, often co-opting company management to assist in these efforts; concealed their control of the stock by purchasing and transferring shares to offshore accounts and to nominee entities with names such as "Dojo," "Picasso," and "Big Dog"; fraudulently inflated the prices and trading volumes of the companies' stocks through slick marketing campaigns, misleading press releases, payments to stock promoters, and "cross-trading" among co-conspirators that made it appear the stocks were being actively traded; coordinated the sale of the companies' shares at the peak of the fraudulently manipulated market; and hid profits in nominee and offshore accounts.

According to court documents, the defendants are serial market manipulators who carried out several fraudulent deals each year, each of which generated several million dollars. The defendants generally targeted marginal companies operating in areas they believed could easily be touted as generating breakthroughs or deals that would explain sudden increases in trading volume and price, including companies purportedly involved in pharmaceuticals, hair restoration, green technologies, entertainment, oil and gas development, and e-commerce websites. The indictments allege that increased trading volume and higher stock prices were actually the result of the defendants' fraudulent actions. A company CEO brought into one of the schemes summed up a typical deal during a wiretapped call: "There's nothing in there, there's nothing to the company. It's monkey business."

The indictments allege that the schemes collectively engaged in five specific deals that defrauded more than 20,000 investors around the world and generated more than $30 million in illegal profits.

"This case has dismantled a far-reaching stock market manipulation scheme run with ruthless efficiency and operated with one goal in mind-to steal money from the investing public," said U.S. Attorney André Birotte Jr. "This type of predatory behavior cheats the average investor, erodes overall confidence in the markets, and has a devastating impact on companies and their employees."

One indictment alleges a scheme led by Sherman Mazur and his nephew, Ari Kaplan, charging that they "perpetrated a multi-million-dollar scheme to fraudulently inflate the prices and trading volumes of public company stocks and then sell millions of shares of those companies at the fraudulently inflated prices to the investing public for substantial profits." The indictment alleges that the scheme involved a number of companies, but focuses on deals involving two businesses-GenMed, which purported to develop, manufacture, and distribute generic pharmaceuticals; and Biostem, which purported to develop and license regenerative stem cell treatments, including hair regrowth technology.

The 32-count Mazur indictment charges nine defendants, all of whom were taken into custody yesterday morning. They are Sherman Mazur, 63, of the Westwood district of Los Angeles, who controlled a company called the London Finance Group, Ltd.; Ari Kaplan, 40 of Venice, who is Mazur's nephew and was his partner in the London Finance Group, as well as in a series of other business endeavors; Grover Henry Colin Nix IV (who generally used the name "Colin Nix"), 39, of the Los Feliz district of Los Angeles, who controlled the Santa Monica-based Calbridge Capital LLC, which purported to be a "boutique investment banking firm"; Regis Possino, 65, of the Pacific Palisades district of Los Angeles, a now-disbarred attorney who was Nix's partner at Calbridge Capital; Edon Moyal, 32, of Carlsbad, California, who controlled a company called 8 Sounds, Inc. and while allegedly involved in this scheme was free on bond pending trial in a criminal case filed in federal court in San Diego; Mark Harris, 56, of Scottsdale, Arizona, a stock promoter who controlled Apache Capital LLC, an investor relations firm in Scottsdale; Joey Davis, 46, of the Los Feliz district of Los Angeles, who controlled Scripted Consulting Group, a public relations firm in Los Angeles and who was allegedly involved in this scheme while free on bond pending trial in a criminal case filed in federal court in Los Angeles; Curtis Platt, who turned 51 today, of Sarasota, Florida, who controlled Big Dog International LLC; and Dwight Brunoehler, 62, of Maitland, Florida, who is the CEO of Biostem, a company based in Clearwater, Fla.

The Mazur indictment alleges that the nine defendants conspired to commit securities fraud and wire fraud. The indictment alleges that members of the scheme generated at least $13 million in illegal proceeds when they sold their shares of manipulated companies, a figure that includes at least $2.1 million in illegal proceeds from the manipulation campaign for Genmed, as well as $500,000 in illegal proceeds from the ongoing manipulation campaign for Biostem. The indictment further alleges that Mazur, Kaplan, Nix, Possino, and Harris engaged in money laundering, using funds transferred from offshore accounts to promote their fraudulent scheme.

"The defendants' alleged combination of celebrities, press releases, gimmicks, and lies was similar to a how a magician deceives unsuspecting believers into an illusion," said Bill Lewis, Assistant Director in Charge of the FBI's Los Angeles Field Office. "While operating the schemes alleged in the indictments, the defendants kept their audience captive until stock prices peaked, while investor money vanished into defendants bank accounts."

The second indictment concerns a stock manipulation ring allegedly headed by Possino-a former Los Angeles County deputy district attorney-and Nix, both of whom are also key players in the Mazur indictment. This second indictment also outlines a broad scheme to manipulate stock prices and it focuses on deals involving three companies-Sport Endurance Inc., which purported to develop, manufacture, and distribute energy drinks and nutritional supplements; Imobolis, Inc., which came to be known as FrogAds and which purported to operate an online bulletin board for classified advertisements; and Empire Post Media, which purported to provide media services, including post-production services, for feature films and television programs. This 37-count indictment charges 11 defendants, some of whom are also charged in the Mazur indictment. Those named in the second indictment are: Regis Possino, who along with Nix, controlled a series of companies used in relation to the stock manipulation scheme; Grover Henry Colin Nix IV, who was generally known as Colin Nix; Tarun Mendiratta, 42, of Weston, Conn., who claimed to have earned between $75 million and $80 from market manipulation schemes over the past decade and who allegedly participated in the current scheme, in part, by using a cell phone smuggled into the prison where he was housed; Ivano Angelastri, 49, a resident of Switzerland and Dubai, who controlled funds and securities in foreign accounts for himself and Mendiratta (Angelastri is the one defendants who was not arrested yesterday; he is currently being sought by authorities); Mark Harris, the Arizona-based stock promoter; Edon Moyal; the San Diego County man; Joseph Scarpello, 52, of Tustin, California, a disbarred attorney who controlled Taylor Financial, Ltd.; Julian Spitari, 47, of Encino, California, who was the CEO of the company that came to be called FrogAds; Peter Dunn, 72, of the Brentwood district of Los Angeles, who was the CEO of Empire Post Media; William Mackey, 61, a stock promoter who resides in Plantation, Florida, who allegedly was free on bond in a federal case filed in New York City when he committed the crimes alleged in this indictment; and Joseph Davis, the PR executive.

The Possino indictment alleges that members of the conspiracy made at least $18 million in illegal proceeds from selling their shares of manipulated companies. This figure includes at least $1 million in profits from the Sport Endurance campaign, at least $6.8 million from the FrogAds deal and at least $1 million in profits from the Empire Post Media deal. The defendants named in this indictment are charged with conspiracy to commit securities fraud and wire fraud. Possino, Nix, Mendiratta, Angelastri, Harris, Moyal, Scarpello, and Spitari are also charged with money laundering related to funds transferred from offshore accounts.

"This investigation took law enforcement above and beyond its traditional role in financial crimes," said N. Dawn Mertz, Special Agent in Charge of Internal Revenue Service (IRS)-Criminal Investigation's Los Angeles Field Office. "Using foreign bank accounts to promote their scheme, the case put us square in the middle of the world of international banking and the sophisticated electronic movement of money. IRS Criminal Investigation is proud to bring our accounting skills to this joint venture and to put a stop to this and other types of white-collar fraud."

While the two indictments outline conspiracies to engage in wide-ranging market manipulation, each focuses on a small number of deals that illustrate the overall schemes. One deal concerns the alleged manipulation of FrogAds stock. After buying up all of the company's stock just over a year ago, members of the conspiracy arranged for FrogAds to issue a series of press releases touting the company's successes and growth potential, which included making bogus claims that the FrogAds website was among the most visited on the Internet. At the same time, several online stock pickers and at least one analyst recommended FrogAds after being paid by some of the defendants. After the company held a press conference with a well known actress (who was not part of the conspiracy) announcing that she would serve as FrogAds' celebrity spokeswoman and while members of the conspiracy cross-traded stock to give the false appearance of increased market demand, the price for FrogAds stock went up. But the purported success of FrogAds and the apparent interest in the company's stock were an elaborate fabrication. The indictment quotes one member of the conspiracy saying in a recorded phone call: "You're dressing this thing up as a multi-million dollar deal, you gotta make sure that we have all our ducks in order." The manipulation of FrogAds' stock allegedly orchestrated by the conspiracy resulted in profits of nearly $7 million for the defendants.

The defendants arrested yesterday morning-all of the charged defendants except Angelastri-made their initial appearances in federal courts in the districts where they were arrested. Mazur and Possino, both of whom entered not guilty pleas to the charges in their indictments, are currently being held without bond, but they are scheduled to have detention hearings next week in U.S. District Court. Trial dates for both cases were scheduled for April 9 in federal court in Los Angeles.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.

If convicted, each of the defendants would face statutory maximum penalties of at least 100 years in federal prison. Some of the defendants, including Mazur, Possino, Nix, and Mendiratta face potential life sentences.

Yesterday's arrests were made under two indictments unsealed today that are the result of ongoing investigations being conducted by the FBI and IRS-Criminal Investigation. The investigation involved a series of wiretaps that resulted in the interception of more than 60,000 phone calls and 24,000 text messages.

Genmed Holding Corp
. is an international US and Holland based company, focusing on the delivery of low cost generic medicines directly to distribution chains in Europe and other countries. Generic medicines, which become available when the originator medicines patents has expired, are, among to governmental pressure and new insurance policies, increasingly used as equally alternatives to higher-priced originator pharmaceuticals.

Genmed's promoter Mark Harris who paid hudreds of thousands of dollars to promoters to tout stock.

Stock promoter's divorce reveals life of luxury
David Baines
Vancouver Sun

Saturday, May 13, 2006
CREDIT: Vancouver Sun/Handout

From 1986 to 1997, Vancouver businessman MARK HARRIS worked in phone rooms that used high-pressure methods to sell stocks, most of dubious value, to people all over the world.

For more than a decade, Vancouver businessman MARK HARRIS made a fortune running boiler rooms -- high-pressure telephone stock sales operations -- in Europe and Asia. Unfortunately for his net worth, his wife Lori made a career out of spending it.

From 1986 to 1997, HARRIS worked in phone rooms that used high-pressure methods to sell stocks, most of dubious value, to people all over the world. Initially, he manned the phones himself, but eventually became involved in setting up and overseeing the sales operations.

For various reasons, some of them regulatory, he moved often -- from Spain to Hong Kong, Macau, back to Hong Kong, then to the Philippines, California and finally Vancouver. Throughout most of this period, he worked closely with BRYANT CRAGUN, owner of a boiler room operation that was rather grandly called Oxford International Management.

Wherever he went, Lori followed. It was a nomadic existence, but it had its rewards. In his peak earning years, he made more than $500,000 US a year.

Neither of them was shy about spending it. They employed a maid, a gardener, a chauffeur, even a dog-walker. Every year, for Lori's birthday, they went to Italy. During the beach season, they spent weekends on Boracay Island, about 90 minutes from Manila.

Aside from the occasional modelling job, Lori HARRIS did not work. She took Spanish lessons, she played tennis, she flew to Hong Kong to have her hair done. But mostly she shopped.

She bought Versace, Dolce & Gabbana and other expensive designer clothes. When her credit card at Saks Fifth Avenue exceeded her limit, she simply opened another account and purchased an $8,000 full-length mink coat. She shopped so much that she hired a personal shopper to help her.

In 1995, the couple began construction of a mansion on an acre of land in Osoyoos. The project, originally budgeted at 3,000 square feet and $500,000, ballooned to 6,000 square feet and $3 million, including an outdoor dining area modelled after the Four Seasons Resort in Bali and five Versace carpets costing more than $100,000.

In 1997, HARRIS returned to Vancouver to provide investor relations services for many of the same companies he had been selling by phone. Business was initially good, but by 2000, the MARKet had collapsed. His income was decimated and his marriage in a shambles. In 2002 they separated.

Unable to agree on a division of assets, the couple went to court. In a 10-day trial earlier this year, and in a 14-page decision released just days ago, their private lives were laid bare, providing unique insight into the controversial and lucrative business of boiler room operators.

Not mentioned are the people who bought stock from HARRIS's teleMARKeters. According to newspaper accounts, court records and securities filings, many of them lost substantial amounts of money.

One was Guy Fletchere-Davies, a 62-year-old carpet manufacturer in Melbourne, Australia. He told the Wall Street Journal in August 2000 that he bought shares of ZIASUN Technologies Inc., which traded on the dreadful OTC Bulletin Board in the U.S., and several other junior stocks, from the Manila office of Oxford International Management, where HARRIS ran the teleMARKeting operation.

Fletchere-Davies said his brokerage account was passed around among several Oxford salespeople, then to a successor firm. In late 1999, "the phone calls stopped and the paperwork dried up." ZIASUN collapsed and he lost $150,000.

By this time, HARRIS had left Oxford and at CRAGUN's behest he had set up an investor relations business, Veritas MARKeting & Communications Group Ltd., with offices in Vancouver and Solana Beach, Calif., to help promote ZIASUN and other stocks that Oxford was selling.

Oxford and Veritas have since shut down and CRAGUN has reportedly retired, but HARRIS continues to provide investor relations services through a private firm, Skylla Capital Corp., which operates out of a corner office in Park Place in downtown Vancouver.

Skylla is the grotesque six-headed monster in Greek mythology that swooped down on passing ships and sea creatures, but HARRIS denies that any of his business activities have been predatory: "Every company I have been associated with was fully registered and all the companies we recommended were legitimate," he said in an interview this week.


HARRIS is now 49, but his boyish good looks make him appear much younger. He dresses and speaks in a casual but calculated way. His cell phone rings incessantly. For the most part, he ignores the calls to focus on a Vancouver Sun reporter who, uninvited and unannounced, has dropped into his office.

According to the divorce action, HARRIS was born and raised in Calgary. He dropped out of school in Grade 11 and worked at a steel mill, as a truck driver, at McDonald's, and as a car salesman.

In 1986, he met and married Lori, seven years his junior. He began training as a stock broker, then a friend offered him a job with a firm called Indigo Investments in Torremolinos, Spain.

"He immediately began work as a teleMARKeter persuading prospective clients to purchase stock in companies," Judge Linda Loo noted in her judgment.

It was clear that he had an aptitude for the job. He made $5,000 in his first month. The following year, he got a better job as "teleMARKeting sales manager" for a firm called Equity Management Services in Marbella, Spain. It paid $10,000 per month plus a percentage of the business that the phone room generated.

However, the judge noted, "the job ended abruptly after about a year when the payroll failed to materialize." HARRIS told The Sun he's "not 100 per cent sure why it shut down." But in the fluid world of boiler rooms, such businesses disappear and reappear with alarming frequency and speed. In this instance, the phone team was offered similar work in Hong Kong starting the following week.

Within five months, HARRIS was back making $10,000 per month, but once again, the job suddenly ended, this time when the Hong Kong Securities and Exchange Commission intervened. Why the commission intervened is not explained.

HARRIS found work in a similar operation in Macau, but the couple found the living and working conditions unagreeable, so they decided to use their savings to travel throughout Europe and Asia.

In 1990, HARRIS returned to Hong Kong and teamed with BRYANT CRAGUN, a former senior vice-president with Goldman Sachs, in another teleMARKeting operation. Within months, however, Hong Kong regulators once again stepped in and the phone room was shut down. Once again, no reason is given. HARRIS told The Sun that, to meet capital requirements, the firm had posted shares of an OTC Bulletin Board company rather than a Nasdaq company, and the authorities refused to accept them.

The following year, in April 1991, CRAGUN established another teleMARKeting business in the Philippines, Oxford International Management, which styled itself as a "U.S. equity fund manager." He hired HARRIS to manage the phone room, with huge success.

Within four months, HARRIS was making $10,000 US per month, plus a percentage of sales. By 1993, the firm had grown to 50 employees and he was making more than $250,000 US per year. By 1995, the firm had offices in Spain, Brussels, Taipei, Indonesia and Bangkok, and he was making $500,000 US annually.

Life was good. The couple travelled extensively. Each Christmas they stayed at the Four Seasons Hotel in Bali. During the summer, they spent weekends on Boracay Beach, where HARRIS invested $200,000 in an aquasports business which provided them with boats and jet skis, but generated nothing in the way of profits. They also invested $85,000 in an Indian cuisine restaurant in nearby Subic Bay.

Lori was, by all accounts, an excellent hostess. She entertained HARRIS's business colleagues at Boracay Beach and helped arrange Oxford's annual Christmas party, which was attended by up to 400 guests. She also attended dinner meetings with MARK's clients and prospective clients.

"He considered his wife an asset because together, they were an attractive, well-dressed couple," Loo noted. But other than spending money, the judge said, "she took almost no interest in her husband's work or their finances."

In an interview this week, Lori HARRIS said she understood her husband was involved in "venture capital," but didn't know any details. "I knew it was teleMARKeting, but I didn't know the stocks or the names of the companies he was promoting," she said.


Oxford had a stable of junior companies that it organized, financed and promoted to retail investors. Among them were ZIASUN Technologies Inc. and Chequemate International Inc.

Both were listed on the OTC Bulletin Board, a trading forum that is virtually unregulated. In fact, prior to 1999, bulletin board companies didn't even have to issue financial statements.

ZIASUN and Chequemate financed their businesses by selling large blocks of stocks to foreign purchasers under a U.S. securities rule known as Regulation S.

Under this rule, issuers can avoid going through the onerous process of a registered stock offering by placing the shares with "accredited investors" outside the country. The condition is that these shares cannot be sold back to U.S. investors for at least a year.

CRAGUN, as an officer and director of ZIASUN and Chequemate, arranged for these companies to sell large blocks of unregistered stock to Oxford and related boiler rooms, which MARKed up the share price and hyped them to investors in foreign jurisdictions.

Problem was, neither Oxford nor its employees were registered to sell stock in Ireland, Switzerland, Australia or any of the others countries where the purchasers were located. Also, the companies were long on puffery and short on substance, which made them exceedingly risky investments.

According to a June 2002 article in the St. Louis Post-Dispatch, one of Oxford's clients was Australian rancher Wally Peart. Starting in 1994, he bought seven stocks from Oxford, including Chequemate, for a total investment of $130,000 US. Little did he know, but all of the companies had close ties to CRAGUN and associates.

Peart told the newspaper that, on Oxford's advice, he never sold any of the shares, ostensibly to maximize long-term gains. "Everything seemed to work OK, and they often invited me to visit them in Manila," Peart is quoted as saying. "However, in 1999, it all folded and my retirement fund disappeared."

HARRIS rejects the characterization of Oxford as a "boiler room." He said the firm made sure it was licensed in every jurisdiction in which it sold stock. However, when asked if the firm was licensed to sell stock to Australian investors such as Peart, he replied: "I can't answer that question. I don't know exactly."

He also said the companies that Oxford recommended were all legitimate companies and a lot of Oxford clients made money. "I bought IBM and lost a lot of money on it. It's all based on timing," he said.

He also said neither he nor CRAGUN have ever been accused of wrong-doing. CRAGUN told the Wall Street Journal that the U.S. Securities and Exchange Commission spent five years investigating his role in selling Regulation S shares overseas and it "never filed anything against me."


A large chunk of money supplied by investors like Peart found its way back to B.C.

The HARRIS's bought the acre of land in Osoyoos and began constructing their mansion. It had seven bathrooms and marble tiling throughout, even in the mechanical and laundry rooms.

They paid $35,000 for chandeliers, $40,000 for a wrought iron staircase and $25,000 for a desk for MARK's home office. In all, they spent $225,000 on furnishings. The total cost was more than $3 million. "It is the most expensive house in Osoyoos," the judge observed.

But the gravy train was coming to a halt. By 1996, Oxford had over 10,000 clients, but according to Loo, the stock MARKet had turned and HARRIS "was forced to deal with unhappy investors."

CRAGUN opened an investment banking business in San Diego and invited HARRIS to join him. In October 1997, MARK and Lori moved to Del Mar, just outside San Diego, and rented a 3,200-square-foot ocean-view home for $4,750 a month. They also bought a Porsche 911 for $96,000 US and a 540 BMW for $65,000 US.

Within a few months, CRAGUN decided he wanted HARRIS to help him support the public companies that he was promoting. So HARRIS incorporated Veritas MARKeting & Communications with offices in Vancouver and Solana Beach, Calif. He commuted back and forth, spending Tuesdays to Friday in Vancouver, and Saturday to Monday in Del Mar.

Veritas provided investor relations services for several companies, including ZIASUN. At its peak, it had 20 employees, but it was not a lucrative enterprise. HARRIS was paid in shares, which initially soared in value, but by the time they became free-trading, the share price had collapsed. ZIASUN, for example, rose to $30, but plunged to 30 cents by the time they were cleared for trading.

In 2001, HARRIS's total income slumped to $10,000, but Lori could not adjust to this new financial reality. As Judge Loo reMARKed: "Her passion for high-end designer fashions continued undeterred." Among the items she bought, over her husband's objections, was an $8,000 full-length mink coat from Saks. The following month, in September 2002, they separated.

"There is no doubt that Ms. HARRIS has a clothes-buying habit," the judge observed.


Since their separation, Lori has been living in the Osoyoos mansion, but Judge Loo has ordered that it be sold and net proceeds divided between them. She also ordered MARK to pay $150,000 spousal support in two equal instalments in January 2007 and January 2008.

It is not clear what Lori will do. "Mr. HARRIS has suggested avenues Ms. HARRIS might explore, such as being a veterinary assistant, because she loves animals, or being a personal shopper, because she has exquisite taste and enjoys interacting with people," Loo noted.

However, she added, Lori "has taken no real steps towards finding work or training because she claims she is too emotionally distraught...."

In 2003, MARK returned to Marbella, Spain, to set up offices for another teleMARKeting firm called Global Capital Asset Advisors. At about the same time, he began a common-law relationship with Jonni-Colleen Sissons, then a broker with IPO Capital Corp.

In January 2004, Sissons gave birth to their son in Malaga, Spain, and they have since returned to Vancouver. Sissons is now registered with Northern Securities and MARK is pursing his investors relations business through Skylla Capital.

He refuses to say who his clients are: "I have been advised by my lawyer not to say anything further to you."


© The Vancouver Sun 2006

  Genmed's Harris pleads not guilty in L.A.

2013-03-07 12:48 ET - Street Wire

Also Street Wire (U-EMPM) Empire Post Media Inc
Also Street Wire (U-FROG) FrogAds Inc
Also Street Wire (U-HAIR) Biostem US Corp
Also Street Wire (U-SENZ) Sport Endurance Inc

by Mike Caswell

Mark Harris, the former Vancouver promoter facing criminal charges in the United States for several pump-and-dumps, has pleaded not guilty. He entered the plea in a brief appearance before a judge in Los Angeles on Feb. 27, 2013. The judge then allowed his release on a $700,000 bond, with the conditions to include house arrest. (All figures are in U.S. dollars.)

Prosecutors claim that Mr. Harris, 56, was part of a group of serial market manipulators that generated $30-million in illegal profits from a number of pump-and-dumps. The group secretly took control of OTC Bulletin Board companies and promoted the stocks with false or misleading information. The men then allegedly dumped millions of shares and moved the proceeds from the scheme offshore.

Mr. Harris was initially arrested in Arizona on Feb. 13, 2013, when a pair of indictments against him and 13 others were unsealed in California. The U.S. Marshals Service transported him to Los Angeles, where he remained in custody until he pleaded not guilty last week. After he entered the plea, the judge fixed his bond at $700,000, of which $100,000 his wife Jonni would satisfy and the remainder he and his wife would jointly provide.

Mark Harris's House

The judge also ordered him to remain under house arrest at his home in Arizona, to be enforced by electronic monitoring. He may only leave to drive his son to and from school. Other terms of his release include travel restrictions, avoiding contact with his co-defendants, and submitting to drug and alcohol testing.

The move from jail to home will be a substantial upgrade in accommodations for Mr. Harris. The address listed in his release documents is for a 4,407-square-foot home in Scottsdale, Ariz. According to an old real estate advertisement, the house has five bathrooms, a pool and parking for three cars. The average list price of homes in his ZIP code is $1.55-million.

Fraud charges

The charges against Mr. Harris are detailed in a pair of indictments unsealed in the Central District of California on Feb. 13, 2013. The charges included securities fraud, wire fraud and international promotional money laundering. Prosecutors claimed that Mr. Harris and others ran a pump-and-dump scheme that began around 2009 and continued until at least December, 2012. The promotions, as described in the indictments, all followed a similar pattern: the men took control of an OTC-BB company, promoted it with false or misleading news, and then dumped their shares.

One of the examples prosecutors provided was Genmed Holding Corp., a Dutch company that claimed to be developing generic drugs. The Genmed scheme, as described in the indictment, began in early 2011, when then stock was thinly traded and was around 30 cents. According to prosecutors, the men took control of the company and then arranged a touting campaign that included paid promoters, a celebrity video and mass mailings that overstated the company's revenues.

(The recipients of that promotional money, as listed in the indictment, included a West Vancouver company called Raincity Marketing Group. The indictment did not accuse Raincity of any wrongdoing, but said that it received $165,000 through wire transfers to HSBC Bank Canada.)

As the promotion began, the stock became far more active, trading hundreds of thousands of shares per day, and reaching a 52-cent high. The company issued a news release in which it claimed to have an agreement with a pharmaceutical distributor in Ireland that would see its products sold in several countries.

Part of the promotion, according to prosecutors, was a video news release with a known actor. (Prosecutors did not identify the actor, but one of the other companies in the indictment claimed to have Pamela Anderson pitching its products.) The video shoot was the subject of a string of text messages that Mr. Harris received on March 20, 2011, prosecutors claimed. One text said the video would be distributed on "CNN Bloomberg, msnbc, local tv as well as cable across the nation ... I believe it will [be] a great tool for [the third party stock promotion groups]."

One of Mr. Harris's co-defendants, Grover Nix, had high expectations for the promotion, according to the indictment. In an intercepted conversation he said, "I'm fucking truly excited like a kid at Christmas." In all, prosecutors claim that the men made $2.1-million from the Genmed promotion.

The defendants, in addition to Mr. Harris, are Sherman Mazur, Ari Kaplan, Grover "Colin" Nix, Regis Possino, Edon Moyal, Joseph Davis, Curtis Platt, Dwight Brunoehler, Tarun Mendiratta, Ivano Angelastri, Joseph Scarpello, Julian Spitari, Peter Dunn and William Mackey. Most of the men are from California.

The stocks, in addition to Genmed, were Sport Endurance Inc., Empire Post Media Inc., FrogAds Inc. and Biostem U.S. Corp. None of the companies are named as defendants.

The case is scheduled for a trial by jury starting April 23, 2013.

Prior to Arizona, Mr. Harris lived in Vancouver on and off for many years, holding himself out as an investor relations man. He ran a private firm called Skylla Capital Corp., which operated from an office on Burrard Street. The Vancouver Sun's David Baines reported in 2006 that he had a child with former Northern Securities Inc. broker Jonni-Colleen Sissons.

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#969   The indictment was dismissed by US District Court, trueblood786 05/21/16 02:36:12 AM
#968   So how did you get mixed up with StockdungU 03/10/16 08:25:31 AM
#967   Why would an article after the fact have StockdungU 03/10/16 08:16:09 AM
#966   This post has a major error. For Mobashir 02/29/16 02:40:22 PM
#965   GENM revoked: Renee 02/16/16 09:33:30 AM
#964   INITIAL DECISION RELEASE NO. 933 StockdungU 12/29/15 03:19:00 PM
#963   GENM SEC Suspension for Financials / Filings delinquencies: Renee 11/19/15 09:34:39 AM
#962   NO ONE CARES! adama1984 04/23/15 05:02:43 PM
#961   Company is shell. Get out while you can. adama1984 04/12/15 11:46:21 AM
#960   GENM is severely delinquent in filing their Financials Renee 02/22/15 09:52:06 AM
#959   HA....I wish I knew. hamar 06/13/14 01:08:59 PM
#958   i don't know, why don't YOU tell meeeeeee ;) OB_WEALTH_INC 06/12/14 08:09:44 PM
#957   What is with all the activity on genm recently? hamar 05/28/14 10:27:57 AM
#956   Q to Mark Harris: "What do you want StockdungU 05/18/14 08:58:36 AM
#955   People behind Twitter suit have history of questionable dealings StockdungU 10/31/13 09:14:48 PM
#954   GENM continues to be a POS!!! adama1984 09/13/13 06:27:33 PM
#953   Yep adama1984 08/07/13 11:12:28 AM
#952   Today they posted this on their website: Daniel85 08/07/13 03:34:45 AM
#951   From their website: adama1984 08/05/13 12:04:48 PM
#950   The correct website is: http://www.genmed.nl/ adama1984 08/05/13 12:02:25 PM
#949   Looks like the URL/Website domain is up for sale. adama1984 08/05/13 12:00:48 PM
#948   Probably covering their tracks....again. :-( adama1984 08/05/13 11:49:00 AM
#947   It was posted on their website www.genmed.com, but Daniel85 08/05/13 10:05:11 AM
#946   Thanks Daniel85 - where did you find this data/info? adama1984 08/02/13 09:57:23 AM
#945   Latest news about Genmed: Daniel85 07/11/13 10:02:08 AM
#944   As Predicted Mark Harris first to flip. Sends StockdungU 06/18/13 10:39:09 AM
#943   George Sharp, announced today that the first subpoenas Jamming1 05/25/13 07:57:25 AM
#942   THE COURT TRIAL IN LOS ANGELES WAS SUPPOSED carlsg 05/13/13 10:58:38 AM
#941   BIGGEST POS!!! adama1984 05/10/13 02:45:34 PM
#940   Gary Weiss profiles Mark Harris;s boiler room boss StockdungU 04/24/13 12:38:34 PM
#939   Mark HARRIS worked for Boiler Room operator Tommy StockdungU 04/24/13 12:36:09 PM
#938   Genmed's Harris pleads not guilty in L.A. StockdungU 03/07/13 09:17:11 PM
#937   2. Fraudulently Inflating the Price and Trading Volume StockdungU 02/15/13 09:33:50 AM
#936   2. Fraudulently Inflating the Price and Trading Volume StockdungU 02/15/13 09:33:18 AM
#935   2. Fraudulently Inflating the Price and Trading Volume StockdungU 02/15/13 09:31:17 AM
#934   Fourteen Arrested for Market Manipulation Schemes That Caused StockdungU 02/14/13 09:45:05 PM
#933   Mayhem for $GENM, surprised you're not on this.. lol $UPERMAN 02/14/13 03:37:29 PM
#932   Court Troubles and Manipulation Surrounding $GENM $UPERMAN 02/14/13 03:35:07 PM
#931   When, lol?? I wouldnt give .01 for this. $UPERMAN 02/13/13 08:17:56 PM
#930   OMG ITS COMING BACK TO LIFE!!!! LMAO adama1984 01/29/13 10:34:50 AM
#929   If GENM goes to a $1 I will adama1984 12/27/12 11:18:41 AM
#926   get ready to buy this for a buck Jimmy WHEAT 12/17/12 02:27:00 PM
#925   Looks like the scammers have awoken to get Jimmy WHEAT 12/17/12 02:26:09 PM
#924   GENM is officially on Dollar watch. Jimmy WHEAT 12/17/12 01:39:07 PM
#923   All I have to say is.... This is Jimmy WHEAT 12/17/12 11:36:27 AM
#922   Its possible we print $.25 :-) In the Jimmy WHEAT 12/13/12 03:03:40 PM
#921   LOL PPS 12/13/12 02:58:36 PM
#920   Lmao as well. You talk as if you Jimmy WHEAT 12/13/12 02:57:43 PM
#919   LMAO, Thanks Again For Valuable Lessons! PPS 12/13/12 02:45:56 PM
#918   Anytime. Do you like making $$$$? Jimmy WHEAT 12/13/12 02:45:14 PM