Genmed Holding Corp. (fka GENM)

[trueblood786]

The indictment was dismissed by US District Court, but Saxena is is serving his time in Thailand

[StockdungU]

So how did you get mixed up with all these swindlers in the first place?

Tells us what you know about these crooks

[StockdungU]

Why would an article after the fact have in it that the indictment was dropped?

[Mobashir]

This post has a major error. For instance, my name is Mobashir Ahmad and as the article states correctly that I was indicted, however, the article does not mention that: In case# CR92-201, 9th Circuit, U.S. District Court, Central District of California, “Charges against Mobashir Ahmad were dismissed by motion from the government.”

In fact, the indictment was dropped against me before the publication of this article, thus this is a clear case for the justification of libel action against publications that publish false information to defame people.

[Renee]

GENM revoked:

http://www.sec.gov/litigation/admin/2016/34-77138.pdf

[StockdungU]

INITIAL DECISION RELEASE NO. 933
ADMINISTRATIVE PROCEEDING
FILE NO. 3-16965
UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
In the Matter of
AFRICAN COPPER CORP.,
GENMED HOLDING CORP., and
YANGLIN SOYBEAN, INC.
INITIAL DECISION ON DEFAULT AS TO
AFRICAN COPPER CORP. AND GENMED
HOLDING CORP.
December 29, 2015
APPEARANCE: Neil J. Welch, Jr., for the Division of Enforcement,
Securities and Exchange Commission
BEFORE: Brenda P. Murray, Chief Administrative Law Judge
On November 19, 2015, the Securities and Exchange Commission issued an Order
Instituting Administrative Proceedings (OIP) pursuant to Section 12(j) of the Securities
Exchange Act of 1934, alleging that Respondents have securities registered with the Commission
pursuant to Section 12(g) of the Exchange Act and have not filed required periodic reports.
Respondents Genmed Holding Corp. and African Copper Corp. (the two Respondents) were
served with the OIP on November 20 and 27, 2015, and Answers were due on November 30 and
December 10, 2015, respectively. African Copper Corp., Admin. Proc. Rulings Release No.
3392, 2015 SEC LEXIS 5070 (Dec. 14, 2015). I ordered that a telephonic prehearing conference
be held on December 9, 2015, and warned that I would default any Respondent that did not file
an Answer, appear at the prehearing conference, or otherwise defend the proceeding. African
Copper Corp., Admin. Proc. Rulings Release No. 3353, 2015 SEC LEXIS 4879 (Nov. 25, 2015).
No Respondent appeared at the prehearing conference, and I ordered the two Respondents to
show cause by December 23, 2015, why the registrations of their securities should not be
revoked by default due to their failure to file Answers, appear at the prehearing conference, or
otherwise defend this proceeding. African Copper Corp., 2015 SEC LEXIS 5070. To date no
Respondent has filed an Answer, responded to the show cause order, or otherwise defended the
proceeding.1
1 This Initial Decision does not apply to Respondent Yanglin Soybean, Inc., which has not yet
been served with the OIP. See African Copper Corp., 2015 SEC LEXIS 5070, at *2 n.1.
2
Findings of Fact
The two Respondents are in default for failing to file Answers, attend the prehearing
conference, or otherwise defend the proceeding. See OIP at 3; 17 C.F.R. §§ 201.155(a)(1)-(2),
.220(f), .221(f). Accordingly, as authorized by Rule of Practice 155(a), 17 C.F.R. §
201.155(a)(1)-(2), I find the following allegations in the OIP to be true.
African Copper Corp., Central Index Key (CIK) No. 1526185, is a revoked Nevada
corporation located in Mowbray, Cape Town, South Africa, with a class of securities registered
with the Commission pursuant to Exchange Act Section 12(g). The company is delinquent in its
periodic filings with the Commission, having not filed any periodic reports since it filed a Form
10-Q for the period ended January 31, 2013, which reported a net loss of $189,977 from the
company’s April 6, 2011, inception to January 31, 2013. As of November 10, 2015, the
company’s stock (symbol ACCS) was quoted on OTC Link (previously, Pink Sheets) operated
by OTC Markets Group, Inc. (OTC Link), had six market makers, and was eligible for the
“piggyback” exception of Exchange Act Rule 15c2-11(f)(3).
Genmed Holding Corp., CIK No. 1061688, is a revoked Nevada corporation located in
Zoetermeer, The Netherlands, with a class of securities registered with the Commission pursuant
to Exchange Act Section 12(g). The company is delinquent in its periodic filings with the
Commission, having not filed any periodic reports since it filed a Form 10-K for the period
ended December 31, 2012, which reported a net loss of $1,429,690 for the prior twelve months.
As of November 10, 2015, the company’s stock (symbol GENM) was quoted on OTC Link, had
six market makers, and was eligible for the “piggyback” exception of Exchange Act Rule 15c2-
11(f)(3).
In addition to their repeated failures to file timely periodic reports, the two Respondents
failed to heed delinquency letters sent to them by the Commission’s Division of Corporation
Finance requesting compliance with their periodic filing obligations or, through their failures to
maintain valid addresses on file with the Commission as required by Commission rules, did not
receive such letters.
Conclusions of Law
Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 require issuers of securities
registered with the Commission pursuant to Exchange Act Section 12 to file with the
Commission current and accurate information in annual and quarterly reports, even if the
registration is voluntary under Exchange Act Section 12(g). Specifically, Exchange Act Rule
13a-1 requires issuers to file annual reports and Exchange Act Rule 13a-13 requires domestic
issuers to file quarterly reports. See 17 C.F.R. §§ 240.13a-1, .13a-13. The two Respondents
have failed to do so. “Compliance with those requirements is mandatory and may not be subject
to conditions from the registrant.” America’s Sports Voice, Inc., Exchange Act Release No.
55511, 2007 SEC LEXIS 1241, at *12 (Mar. 22, 2007), recons. denied, Exchange Act Release
No. 55867, 2007 SEC LEXIS 1239 (June 6, 2007). By failing to timely file required periodic
reports, the two Respondents violated Exchange Act Section 13(a) and Rules 13a-1 and 13a-13.
3
Sanctions
Exchange Act Section 12(j) authorizes the Commission, “as it deems necessary or
appropriate for the protection of investors,” to revoke the registration of a class of securities or
suspend the registration for a period not exceeding twelve months if it finds, after notice and an
opportunity for hearing, that the issuer of the security has failed to comply with any provision of
the Exchange Act or rules thereunder. In determining what sanctions will adequately protect
investors, the Commission “consider[s], among other things, the seriousness of the issuer’s
violations, the isolated or recurrent nature of the violations, the degree of culpability involved,
the extent of the issuer’s efforts to remedy its past violations and ensure future compliance, and
the credibility of its assurances, if any, against further violations.” Gateway Int’l Holdings, Inc.,
Exchange Act Release No. 53907, 2006 SEC LEXIS 1288, at *19-20 (May 31, 2006).
The two Respondents’ failures to file required periodic reports are serious violations
because the reporting requirements of the Exchange Act are the primary tool that Congress
fashioned for the protection of investors from negligent, careless, and deliberate
misrepresentations in the sale of securities. SEC v. Beisinger Indus. Corp., 552 F.2d 15, 18 (1st
Cir. 1977). The two Respondents’ violations are recurrent in that they repeatedly failed to file
periodic reports. See Impax Labs., Inc., Exchange Act Release No. 57864, 2008 SEC LEXIS
1197, at *25-26 (May 23, 2008) (respondent’s failure to make eight filings over an eighteenmonth
period considered recurrent). The two Respondents are culpable because they knew, or
should have known, of their obligation to file periodic reports. See 17 C.F.R. §§ 249.308a, .310
(Commission Forms 10-Q, 10-K); Robert L. Burns, Investment Advisers Act of 1940 Release
No. 3260, 2011 SEC LEXIS 2722, at *40 n.60 (Aug. 5, 2011) (stating that the Commission has
“repeatedly held that ignorance of the securities laws is not a defense to liability thereunder”).
By not participating in this proceeding, the two Respondents forfeited an opportunity to show
they have made efforts to remedy their past violations and to offer assurances against further
violations. On these facts, it is necessary and appropriate for the protection of investors to
revoke the registrations of each class of the two Respondents’ registered securities.
Order
I ORDER that, pursuant to Section 12(j) of the Securities Exchange Act of 1934, the
registrations of each class of registered securities of African Copper Corp. and Genmed Holding
Corp. are REVOKED.
This Initial Decision shall become effective in accordance with and subject to the provisions
of Rule of Practice 360. See 17 C.F.R. § 201.360. Pursuant to that Rule, I FURTHER ORDER
that a party may file a petition for review of this Initial Decision within twelve days after service
of the Initial Decision. See 17 C.F.R. § 201.360(b). A party may also file a motion to correct a
manifest error of fact within ten days of the Initial Decision, pursuant to Rule of Practice 111. 17
C.F.R. § 201.111. If a motion to correct a manifest error of fact is filed by a party, then a party
shall have twenty-one days to file a petition for review from the date of the order resolving such
motion to correct a manifest error of fact. The Initial Decision will not become final until the
Commission enters an order of finality. The Commission will enter an order of finality unless a
party files a petition for review or motion to correct a manifest error of fact or the Commission
4

[Renee]

GENM SEC Suspension for Financials / Filings delinquencies:

http://www.sec.gov/litigation/suspensions/2015/34-76475.pdf

Order:

http://www.sec.gov/litigation/suspensions/2015/34-76475-o.pdf

Admin Proceeding:

http://www.sec.gov/litigation/admin/2015/34-76476.pdf

[adama1984]

NO ONE CARES!

[adama1984]

Company is shell. Get out while you can.

[Renee]

GENM is severely delinquent in filing their Financials and corporate filing obligations to the SEC. On Feb. 20, 2015 the SEC suspended 8 stocks from the Delinquent SEC Filers list, and it is likely that more delinquent Filers will be suspended.

Since Jan 1st, 2010 the SEC has suspended over 1290 stocks for Financials delinquencies. All of those Suspended stocks had their stock registrations revoked.

Shareholders should contact the company and pressure the Mgmt to file their delinquent Financials because ALL shareholders would be wiped out IF the SEC suspends the stock.

GENM is on the list of delinquent filers:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=110680509

[hamar]

HA....I wish I knew.

[OB_WEALTH_INC]

i don't know, why don't YOU tell meeeeeee ;)

[hamar]

What is with all the activity on genm recently?

[StockdungU]

Q to Mark Harris: "What do you want to be? the husband or the wife?"

Prison joke, be forewarned

A very small white guy gets sent to prison for stealing from his company, Once inside his cell he meets his new cell mate, a 450lbs 6’11 black man named bubba. Bubba says to the little white guy, “Now this is how this cell is going to work, we are now a family. One of us will be the man and will have to go out and bring home the food and money, and one of us will be the wife and stay home keep the cell clean, cook, and when the man gets home have to perform certain other wifely duties. Do you understand?” The white man nods. “Now,” bubba says, “since your new here, I’m going to let you choose what do you want to be the husband or the wife?” The white man is shocked at this sudden reprieve and weakly lets out, “ I guess I would like to be the Husband.” Bubba looks his up and down and says, “That’s fine, NOW GET OVER HERE AND SUCK YOUR WIFE’S D1CK!”

[StockdungU]

People behind Twitter suit have history of questionable dealings

Posted on October 31, 2013 by Chris Carey

The principals of two financial firms that sued Twitter Inc. for $124 million in damages have a history of dealings with questionable companies and questionable partners.

Continental Advisors SAand Precedo Capital Group Inc. say Twitter thwarted their efforts last year to line up investors for a fund that would have acquired illiquid, restricted stock from the social-media company’s employees, contractors and other early shareholders.

Twitter is poised for an initial public offering that could value the company at more than $11 million. Continental Advisors and Precedo Capital alleged in their suitthat Twitter never intended to allow the private share deals to go forward. Instead, they claim, Twitter wanted to use the process to help determine a price for the IPO.

CONTINENTAL ADVISORS

Continental Advisors, which is domiciled in Luxembourg, is headed by Andreea Porcelli and Mark Porcelli, a husband-and-wife team who previously worked as stock brokers in the United States.

Sharesleuth is very familiar with the couple’s prior activities. Andreea Porcelli once was a director of AccuPoll Holding Corp., a publicly traded company that marketed touch-screen voting machines. SEC filings show that its financial backersincluded the children and business associates of financial felon Sherman Mazur.

Continental Advisors also was the placement agent for AccuPoll for a series of convertible preferred stock sold in 2005.

Before that, she was a director of Junum Inc., another public company that had ties to Mazur and a second convicted felon, Regis M. Possino. In addition, Continental Advisors was a placement agent for Material Technologies Inc. (later known as Matech Corp.), which had links to one or both of those men.

Shares of AccuPoll, Junum and Material Technologies were marketed to foreign investors in the late 1990s and early 2000s by unlicensed boiler-room style brokerages operating from Europe, Asia and other offshore locations. People who bought shares in the companies through those operations lost nearly all of their money.

Mazur and Possino both served prison time for fraud in the 1990s. They were indictedagain last year in connection with an alleged securities “pump-and-dump’’ network that took more than $31 million from investors around the world.

The indictment identified Mazur and Possino as the ringleaders of two intertwined fraud rings.

The court documents did not mention Accupoll, which morphed into Rudy Nutrition Inc. in 2008 and was used as the vehicle for another pump-and-dump scheme that the SEC saidnetted more than $11 million in illicit profits.

Sharesleuth’s research also found that Andreea Porcelli was sued in 2009 by a stock promoter named Timothy T. Page, who has been the subject of at least two SEC regulatory proceedings.

Page alleged in the complaint that Porcelli sold 2.7 million shares of another company’s stock to foreign investors as part of placement agreement, but failed to forward the proceeds. Page alleged that Continental Advisors was to be the escrow agent for the share transactions.

According to the suit, the shares were originally owned by Canturio Funds LLC, an entity linked to Martin T. Cantu. The SEC brought chargesagainst Page and Cantu in 2009 in connection with a fraud scheme involving shares of a company called ConnectAJet.com Inc., which purported to have developed a real-time, online booking system for private jets.

The SEC said that no such system existed, and that ConnectAJet was part of a pump-and-dump scheme. Page and Cantu were found liable for securities violations and were ordered to pay nearly $3.8 million in disgorgement, penalties and interest.

Cantu also was indicted on criminal chargesin connection with the ConnectAJet scheme.

The SEC also brought separate chargesagainst Page in 2009 in connection with the unregistered sale of shares in two other companies. He settled without admitting or denying guilt, and agreed to a bar on virtually all activities involving penny stocks.

The judge hearing Page’s suit against Porcelli dismissed it without prejudice, on jurisdictional grounds. Porcelli had argued that since she and her husband lived in Italy rather than the United States, the U.S. District Court in California was the wrong venue.

PRECEDO CAPITAL

Precedo Capital was incorporated in Delaware and operates from Arizona. Its managing partner, Timothy D. Moran, also is a former stock broker.

According to a Financial Industry Regulatory Authority document, Moran was terminated by FSC Securities Corp. in 2011 for referring clients to an unapproved investment fund without prior approval.

FINRA suspended Moran’s registration earlier this month for failing to comply with an arbitration award or failing to respond to the agency’s questions regarding that award.

FINRA also is investigating Moran’s activities in raising money for the investment fund, which turned out to be a fraud. According to the allegations in the FINRA document, Moran’s customers invested nearly $1.7 million in the investment fund. It says he failed to disclose that he had personally provided $150,000 to the fund or that he had received more than $200,000 in compensation for obtaining additional capital.

FINRA also alleged that Moran provided false information to its representatives. Although the regulatory authority did not identify the investment fund, other documents show that it was Hampton Capital Markets LLC.

The operator of the fund, Thomas L. Hampton, was hit with criminal charges last year in connection with the fund’s collapse. He pleaded guilty in April to a single count of fraud, admitting that he concealed millions in losses He was sentenced to 30 months in prison.

The Arizona Corporation Commission also brought proceedingsagainst Moran, Hampton and Hampton Capital, alleging that they were offering or selling unregistered securities and were engaged in fraud in connection with the placement of those securities.

THE TWITTER SUIT

Continental Advisors and Precedo Capital filed their suit against Twitter in federal court in New York. They said in their complaint that they had teamed up with GSV Capital Corp. (Nasdaq: GSVC) to market a fund that would be called @GSV Fund LLP and would hold only Twitter stock.

GSV Capital is a California company that acquired a portfolio of pre-IPO shares in sought after Internet companies, including Twitter, Facebook Inc. (Nasdaq: FB) and Groupon Inc. (Nasdaq: GRPN). According to the suit, Twitter had authorized GSV Capital to facilitate a secondary market for its nontrading shares.

Continental Advisors and Precedo Capital said that they had found people willing to buy the equivalent of $278 million in Twitter stock through the @GSV Fund. They alleged that the failure of Twitter and GSV to go forward with the transactions cost them millions in expenses, commissions and other potential gains.

Twitter was quoted in news reports as saying that it had no dealings with Continental Advisors or Precedo Capital.

Posted in Short Takes | Leave a reply

[adama1984]

GENM continues to be a POS!!!

[adama1984]

Yep

[Daniel85]

Today they posted this on their website:

http://www.genmed.nl/news_media/files/612dae3307cd81f27803dcae4e97003c-33.php

[adama1984]

From their website:

http://www.genmed.nl/news_media/files/452d68c22bfc7f71915bcf2725a02d4d-31.php

[adama1984]

The correct website is: http://www.genmed.nl/

[adama1984]

Looks like the URL/Website domain is up for sale.

[adama1984]

Probably covering their tracks....again.

Thanks Daniel

[Daniel85]

It was posted on their website www.genmed.com, but last week they deleted the message.

[adama1984]

Thanks Daniel85 - where did you find this data/info?

[Daniel85]

Latest news about Genmed:

1. Additional marketing authorisations
Genmed is glad to announce that six additional MA’s (marketing authorisations) for Paracetamol 500mg have been granted for European countries in Central and Eastern Europe. Czech Republic, Slovakia and Poland, along with the three Baltic States are important emerging markets for generic medicines. “We can now finalise our negotiations with market leading retailers in these important new markets, declares CEO Erwin Bouwens, “and start production in the coming quarter”. Genmed expects to report on definitive orders this July.

2. Distribution Agreement Dr. Max Pharma
Genmed has entered the Czech and Slovakian Markets. It has reached a long-term distribution contract with Dr Max Pharma. Dr. Max is one of the biggest pharmacy chains in Central Europe. It is a market leader in the Czech Republic (20% market share) and Slovakia (15%).
About Dr Max (from www.pentainvestments.com)
• Over 500 pharmacies in the chain
• Over 130,000 customers served daily
• Over 3,000 employees
Genmed will provide Paracetamol 500mg tablets for Dr Max’ new private label. Genmed and Dr Max are currently discussing the final logistic issues. The first shipment is expected the coming month. Genmed is looking forward to a long and successful partnership.

3. Poland
Genmed has entered the Polish market and has started preparation for production for the Dr Max Brand in Poland. “We are delighted to enter this large European market”, CEO Erwin Bouwens declares” A Promising market to which many leading brands have no access”. With this relatively low competition and our prime quality Paracetamol, Genmed expects to produce growing amounts for the Polish Pharmacy market in the coming years”.

[StockdungU]

As Predicted Mark Harris first to flip. Sends shock waives across internet tout sites. Former Ziasun IR to dime out criminal associates. Takes advise of Stock Dung and becomes first to flip.


Found this when checking the case file in Possino's pump and dump case this morning:

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

[Jamming1]

George Sharp, announced today that the first subpoenas have been issued by the court in regards to the previously announced litigation (San Diego County Division of California Superior Court Case No. 37-2013-00048310-CU-MC-CTL) for violations of California Business and Professions Codes 17529.5 (Anti-Spam). In his complaint, Mr. Sharp alleges the spam emails are part of a scheme to artificially create a marketplace for the stocks of near worthless companies, at artificially high prices, in what is commonly known as a "pump and dump" scheme.

Named as defendants in the case are: Degroupa Tenner Morales Media Corp. and Centro Azteca S.A., the current and former publishers of the Awesome Penny Stocks series of newsletters; and, Victory Mark Corp Ltd., the publisher of newsletters Select Penny Stocks, Preferred Penny Stocks and Penny Stock Heroes. Several companies promoted by these newsletters are also identified as defendants, including the subject of the current promotion, Xumanii (OTCQB:XUII).

In the course of the promotion, startup Xumanii, a one-man operation purportedly headquartered in the Cayman Islands with total assets reported to be $80,000 and liabilities of almost a million dollars, claims to have established business relationships with a variety of performers and infers endorsements from megastars. By the company's own admission, none of these relationships will add revenue to the company's bottom line. Mr. Sharp cautions investors that celebrity name dropping or endorsements are often used to attempt to attempt legitimize a penny stock fraud, often without the knowledge by the celebrity. Recently, celebrity relationships have been used to tout FrogAds, Inc. (Pink Sheets:FROG) and Genmed Holdings Corp. (OTCQB:GENM), two schemes for which 14 parties were recently indicted by the Grand Jury for securities fraud, under complaints 125526814 USA v Mazur Et Al. and 125529135 USA v Possino Et Al.

Mr. Sharp, advises investors in Xumanii, that every Awesome Penny Stock Ponzi-scheme style promotion, has left a trail of those whom have lost almost their entire investment, totaling hundreds of millions of dollars in losses, including those on past promotions conducted on fellow defendants, VuMee, Inc. (OTCQB:VUME); Amwest Imaging, Inc. (OTCQB:AMWI); Goff Corporation (OTCQB:GOFF); Swingplane Ventures, Inc. (OTCQB:SWVI); World Moto, Inc. (OTCQB:FARE); Taglikeme Corp (OTCQB:TAGG); and, Pharmagen, Inc (OTCQB:PHRX). Several hundred of these victims have written emails of gratitude to Mr. Sharp, since he first announced this litigation.

Investors should note that it is never a good idea to invest in stocks advertised in any manner, including email tout sheets, conventional mail brochures, and newspaper/magazine ads, nor is it wise to rely on the advice posted on the internet message boards which are controlled by shills for the promoters.

Mr. Sharp holds no interest in any of the stocks mentioned.

Updates to this litigation may be viewed by following Mr. Sharp's tweets at www.twitter.com/goniffs.
CONTACT: George Sharp
[e-mail]
Report TOS

[carlsg]

THE COURT TRIAL IN LOS ANGELES WAS SUPPOSED TO START TWO OR THREE WEEKS AGO. ANYBODY HAVE ANY IDEA IF
IT HAS STARTED, OR HAS IT BEEN DELAYED OR SETTELED? IF ANYONE KNOWS ANYTHING PLEASE BE GOOD
ENOUGH TO POST IT HERE. THANK YOU.

[adama1984]

BIGGEST POS!!!

[StockdungU]

Gary Weiss profiles Mark Harris;s boiler room boss Tommy Quinn:

THE MOB ON WALL STREET: WHY YOU CAN'T SEE ITAn inside look at how organized crime hides its involvement in stock deals Early in the morning of Jan. 7, 1997, a television camera crew was staked out near 215 Oxford Ave. in Saddle Brook, N.J., a quiet suburb about a half-hour's drive from New York City. But the man who lives at that address, Philip C. Abramo, did not emerge. A day earlier, he had left to stay overnight near his new home--the Fort Dix federal correctional facility in central New Jersey, where he was about to begin serving a one-year term for tax evasion. The well-timed departure was quintessential Abramo--whose almost perfect record at avoiding publicity has cemented his role as a leading reputed Mob figure on Wall Street. For years, Abramo has managed to avoid official scrutiny while allegedly controlling at least four brokerage firms and exerting a wide-ranging influence over the huge market for ''chop stocks''--Street lingo for easily manipulated micro-cap stocks (BW--Dec. 16). Nothing has put Abramo on the regulatory radar screen--not his indictment in a consumer fraud scheme, not his guilty plea to tax evasion. Not even his rise to the rank of capo in the DeCavalcante crime family, according to a 1994 FBI court affidavit. How do Abramo and other reputed Mob financiers and stock promoters keep their machinations from regulatory and public scrutiny? The answer to this question can be summed up in two words: offshore companies. Usually, the offshore financial mechanisms used by the Mob are enmeshed in secrecy. But lately some answers have turned up--all surrounding the December, 1995, initial public offering of a small Phoenix-based company that makes multimedia components, SC&T International Inc. At the center of this tale are a half-dozen shadowy Bahamian entities and Sovereign Equity Management Corp., which brought SC&T public. Street sources say Sovereign is controlled by Abramo through a man named Philip Gurian, whose National Association of Securities Dealers registration was revoked in 1991. Gurian was the key player in organizing the offshore financial conduits that handled the SC&T deal. Also playing a pivotal role is a prominent Bahamian, the son of the island nation's former Prime Minister, Lynden Pindling. Also allegedly involved in the SC&T deal is a man described by Street sources and investigators as a longtime associate of both Abramo and Gurian--Thomas F. QUINN, a disbarred lawyer and convicted securities swindler with a two-decades-long history of running investment scams worldwide. With its unlikely cast of characters, the tale of SC&T and the Mob is a prime example of how the Mob exploits companies and walks away unscathed, and, almost inevitably, unexposed. In the process, investors in small-cap stocks are routinely ripped off. By the time the public buys the shares at the IPO, the Mob has already cashed in cheap stock that it obtained well in advance. For SC&T's shareholders, the horror story did not begin until last year, when the company earned the distinction of being one of the worst performing stock issues in the NASDAQ small-cap market. But for the few who profited from the deal, the SC&T story begins late in 1994. Back then, all looked promising. The company was about to get some preliminary financing. SC&T's chief financial officer dashed off a routine letter to the underwriter--Sovereign--on Dec. 19, 1994. The letter was addressed to ''Mr. Phil Gurian, Sovereign Equity Management.'' But there was no Phil Gurian at Sovereign. Not officially. In fact, Gurian's role at Sovereign and the SC&T deal was crucial. Sources who are well acquainted with Gurian say that for years he has been the New York-based Abramo's key confederate at Sovereign's Boca Raton (Fla.) headquarters and serves a similar function at its sister company, Falcon Trading Group Inc. In the words of one former SEC organized crime investigator, the two men are closely linked--the ''two Phils,'' as he calls Gurian and Abramo. Both men also are alleged by investigators and sources to work closely with QUINN, whom they described as a master at organizing stock deals and high-pressure ''boiler room'' operations that sell stock to the public. One investigator, who has examined phone records of both QUINN and Gurian subpoenaed in an SEC lawsuit against QUINN, notes that there were phone calls between Gurian and Quinn--and between Abramo and Quinn--in 1995, while the SC&T financing was under way. There were also calls from QUINN to Falcon. SMALL TALK? Gurian denies having any role at Sovereign or Falcon, but says that he is often at Sovereign because of his close friendship with its former president, Glen T. Vittor. (The December, 1994, letter was sent to him at Sovereign, Gurian says, because of his frequent visits to the firm.) Sovereign Compliance Director Thomas W. Hands denies that Abramo, QUINN, or Gurian have any role at the firms. Gurian readily admits that he had frequent phone contact with QUINN in 1995, but says that he discussed a variety of innocuous things. ''We talked about hockey,'' says Gurian. He says that he knows Abramo, but only as a ''stock promoter.'' Gurian denies any business dealings with QUINN or Abramo. Although only in his mid-thirties, Gurian has long been enmeshed in the world of ''chop houses''--dealers in penny stocks such as Blinder, Robinson & Co., where he worked in the early 1980s. In 1991, Gurian's registration was revoked by the National Association of Securities Dealers for nonpayment of fines imposed in disciplinary proceedings. But apparently, it didn't spark a career change for Gurian. In early 1994, the NASD brought charges accusing Gurian of working as a trader at Falcon without being registered and said he and Falcon had failed to honor trades from other brokerages. The NASD permanently barred him from the securities business. Gurian appealed, but the action was upheld in March, 1995. But even though he was twice ordered to stay clear of the brokerage business, Gurian had a major role in the SC&T financing. That is clear from internal records produced under subpoena by SC&T in court proceedings brought against Sovereign, Falcon, and other firms by Edwin B. Mishkin, court-appointed trustee for the bankruptcy of Adler, Coleman Clearing Corp. Adler collapsed after the demise of the penny-stock firm Hanover, Sterling & Co., and Mishkin has filed suits accusing short-sellers, including Sovereign, Falcon, and Gurian, of causing Hanover's demise. The two firms and Gurian are fighting the suits. The internal SC&T records subpoenaed by Mishkin in the suits include letters written by SC&T's then chief executive, James L. Copland, and addressed to ''Phil and Glen''--Sovereign former President Vittor and the barred broker, Gurian. Copland, who remains chairman but has since stepped down as SC&T's CEO, did not return phone calls. SC&T's new CEO, Thomas Bednarik, declined comment. SC&T's attorney, Sara R. Ziskin, said that company officials would not be interviewed for this article. In a previous interview, Copland acknowledged Gurian's key role in the financing but denied any knowledge of an organized crime role. ANGRY LETTER. Gurian acknowledges that he worked on the financing--but insists that he did all that work out of friendship for Vittor. ''I didn't get paid a penny for that deal,'' he says. But Hands insists that Gurian is mistaken, and that he had no role in the IPO, paid or unpaid. The Gurian-Vittor-SC&T correspondence was sometimes acrimonious. At one point, Copland expressed irritation at being put off when he asked where the money for the company was coming from. ''Yes, I do care fellows, who is funding it all, and right now I have no idea!'' said an exasperated Copland in a letter to ''Glen and Phil'' on May 15, 1995. By the time Copland wrote that letter, SC&T already had gone through its first wave of interim financing. In April and May, Gurian and Vittor raised $2.5 million for SC&T by selling notes, warrants, and stock, mainly to six Bahamian investors: Maraval & Associates, Bauman Ltd., Caspian Consulting, Robert Adams, Roddy DiPrimo Ltd., and Ubiquity Holdings. In the IPO, the Bahamians cashed out for $5 apiece the 1.6 million shares they acquired at $1.33 a share--a gain of $5.8 million. Copland would have gotten little information on the people funding his company--the Bahamians--from his own prospectus. The ''beneficial owners'' of the companies, listed in the prospectus, appeared to have no apparent links to either SC&T or Sovereign, which brought the company public. Who put the money into those Bahamian entities? Gurian won't say. But there is one solid clue to the people who were getting in on the ground floor of the SC&T deal. Not long after the Bahamians were snapping up cheap shares, some two dozen individuals participated in the company's smallest round of financing. Some $875,000 in notes and SC&T stock were sold in a Sovereign-managed deal in August and September, 1995. The names were listed in the footnote to an SC&T filing with the SEC in November, 1995. Three of the 24 names have a familiar ring to them--Abramo and QUINN. Among the buyers of the private-issue shares and notes, duly redeemed in December, 1995, were Romilda Abramo--the wife of Phil Abramo--Frank QUINN and Laura QUINN. According to an investigator who has long tracked Thomas QUINN, Frank QUINN is the father, and Laura QUINN the aunt, of Thomas QUINN. QUINN is the subject of a $25 million civil judgment arising from SEC proceedings involving stock deals in the 1980s, and investigators for the SEC are exploring the possibility that Frank and Laura QUINN have been used as thinly concealed fronts for Thomas QUINN. Quinn's attorney declined comment. Likewise, Romilda Abramo might easily have been a proxy for her husband. Indeed, their house in Saddle Brook is in her name as well. Efforts to reach Frank and Laura QUINN and Romilda Abramo were unsuccessful. The presence of the QUINN and Abramo kinfolk is among the most compelling evidence of links between the two men--and their links to the SC&T deal. Another link between QUINN and the Bahamian companies appears in the phone records subpoenaed by the SEC in its legal tussles with QUINN. A source says they show calls from QUINN to a Bahamian company called Pindling & Co. during 1995. Pindling is a crucial name in this saga. L. Obafemi Pindling is a registered agent for Ubiquity and the other Bahamian firms involved in the SC&T deal. (''Umbiquity'' is the name that appears in SEC filings but is apparently a misspelling.) Pindling is the son of Lynden Pindling, who was for many years Prime Minister of the Bahamas. How did such a prominent Bahamian get involved in setting up the Bahamian firms? Obafemi Pindling did not respond to phone calls and faxes to his office in Nassau. PRIME MOVER. Pindling handled the paperwork involved in organizing the Bahamian companies. But by all accounts, he had no role in running them. Who did? QUINN may have had a role, as the phone records imply. But the man who had the leading role in operating those companies was none other than the ubiquitous Philip Gurian. Abramo's alleged associate was not only the prime mover behind the SC&T financing but also was instrumental in the operation of the offshore entities, which were set up in early 1994 and did more than just buy SC&T stock. Mishkin recently sued Ubiquity, Maraval, Caspian, and Bauman, claiming they received proceeds from improper short-selling of Hanover stocks. Gurian dismisses the suit as ''bull.'' A similar suit against DiPrimo recently resulted in a $150 million default judgment, which DiPrimo is appealing. Gurian's involvement in the Bahamian companies would ordinarily never have come to light. Not a word was said about him in the SC&T prospectus or in the papers filed with the SEC by the offshore entities in connection with the offering. But there was an unforeseen development. Several months after the SC&T offering, some $1.7 million allegedly disappeared from Ubiquity's accounts held at a Canadian brokerage. In a suit filed against the brokerage and others by Ubiquity, the firm notes that the person who ''provided all trading instructions'' for the firm was none other than Phil Gurian. Gurian describes himself as merely an ''adviser'' to the Bahamian accounts. But he acknowledges that he directed the trading for Ubiquity and other Bahamians involved in the SC&T deal. The case of the missing $1.7 million is a saga within a saga. Ubiquity claims in the suit that the money was stolen by a Canadian broker and a convicted penny-stock manipulator, Eric Wynn--whose ''coffee'' meetings with President Clinton have lately gained notoriety. Efforts to obtain an interview with Wynn, who recently began serving a prison sentence for securities fraud, were unsuccessful. In a statement to BUSINESS WEEK, he denies involvement in any theft and claims the theft never took place. Wynn says that Gurian falsely claimed that the money was stolen. He maintains that Gurian hatched a scheme to defraud the Canadian broker and its insurance company by falsely claiming the loss and then unsuccessfully sought to involve Wynn in the scheme. Gurian vigorously denies Wynn's allegations. The Royal Canadian Mounted Police investigated the reported disappearance of the money--and came up with an intriguing tidbit about Ubiquity's ownership. According to a summary of the RCMP investigation, a copy of which was obtained by BUSINESS WEEK, an ominous incident took place after the money was found missing. A Canadian broker, accused in the suit of joining with Wynn in stealing the money, was visited in a Manhattan hotel room in mid-1996 by Gurian and what the report describes as ''three males.'' An RCMP investigator, who requested anonymity, says the three were described to the RCMP as ''hoodlums.'' Gurian says he brought along three ''friends'' to intimidate the broker, but denies they were ''hoodlums.'' He also denies reports, from sources familiar with the incident, that one of the three was an angry Abramo, who allegedly claimed the stolen money was his. Abramo's lawyer, Harvey Weissbard, declined comment. BIG LOSERS. Whoever owned the money, it would seem Ubiquity and the other Bahamian entities were linked. A Dec. 20, 1995, letter from Sovereign's Hands instructs SC&T to make payments for all the Bahamian entities to a bank account in New York City--for the benefit of a single account at Pindling & Co. If Ubiquity was the victim of a heist, it was not the only party to the SC&T saga to have lost big. SC&T shareholders saw their shares, which went public at $5, climb to $8 in June before plummeting to pennies by yearend. Sovereign ceased supporting the stock. For his part, Abramo, though incarcerated, has ensured that he remains current on activities in his old stomping grounds--Wall Street. And it is no surprise that the man who sources say is filling in for Abramo on the Street has also made a fetish of secrecy. He is an Abramo confidant who goes by the name of ''Lou''--a man who is so averse to publicity that only his closest confederates know his last name. Lou has been seen in New York City, Long Island, and Florida, watching out for the interests of his imprisoned associate. But if he decides someday to expand his vistas to the Bahamas, he will find the welcome warm and the wall of silence as comfortingly high as ever. By Gary Weiss in New York

RELATED ITEMS TABLE: Dramatis Personae

TABLE: Five Steps to Offshore Riches

Return to top of story

[StockdungU]

Mark HARRIS worked for Boiler Room operator Tommy QUINN in 1998 stock fraud.

As if Ziasun's IR job history could not be any worse I have recently discovered that Mark HARRIS who was Bryant Craguns partner in crime also worked for securities recivist Tommy QuinnI nternational swindler and convicted criminal .

In Mark HARRIS divorse case his wife testified that Mark was a sales manager for :"telemarketing sales manager for Equity Management Services ("EMS"). :

Equity Management Services was one of Tommy Quinns Boiler Room which was involved in a massive stock swindle (see below)

also see news.google.com
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" [8] The couple returned to Calgary for a summer vacation in 1987. Shortly after they returned to Spain, they moved to Marbella, Spain when Mr. HARRIS became the telemarketing sales manager for Equity Management Services ("EMS"). For his work Mr. HARRIS received a percentage of the business and a salary of about $10,000 a month. The job ended abruptly after about a year when the payroll failed to materialize. However, EMS' telemarketing team was offered similar work in Hong Kong starting the following week. "

"[9] Within a few days the parties moved from Spain to Hong Kong and within five months, Mr. Harris' commission income was back up to $10,000 a month. However, eight months later, the Hong Kong Securities and Exchange Commission (SEC) forced the telemarketing operations to shut down. Mr. HARRIS tried working for a similar operation in Macau but the parties found working and living in Macau extremely uncomfortable. After about a month the parties decided to leave Macau and use their $100,000 in savings and travel. "
Message 28538576
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or brokerage companies controlled by QUINN in Europe such as Kettler Gmbh, Falcontrust Financial and Equity Management Services. Each component of that scheme is separately actionable under the antifraud provisions of the federal securities laws.
http://www.leagle.com/xmlResult.aspx?page=5&xmldoc=19921651799FSupp852_11540.xml&docbase=CSLWAR2-1986-2006&SizeDisp=7


Investigators said the swindle, originally detailed in the business magazine La Vie Francaise, involved companies like Falcon Trust, Kettler Investment, Chelsea Financial and Equity Management Services."



Swiss Ask S.E.C. for Help in Stock Inquiry
By STEVEN GREENHOUSE, Special to the New York Times
Published: August 18, 1988
Swiss and French investigators are stepping up their inquiry into a stock swindle that they say cost investors at least $80 million.

More than half a dozen investment firms in Europe have been accused of soliciting money from investors and absconding with it. There have been 18 arrests in France, two in Switzerland and one in West Germany.

The investigation intensified today as Swiss authorities asked Washington for information about some over-the-counter American companies.

In a telephone interview, Laurent Kasper-Ansermet, a prosecuting magistrate in Geneva, said he had sent an official letter to the Securities and Exchange Commission asking it to investigate 10 to 15 American companies. He said he wanted to know whether the companies had cooperated in the swindle. It is also possible that the companies were victims.

Investigators said stocks of two nonexistent mining companies, Messicor and Hillside Gold and Minerals, were traded, as well as stocks of Vanguard Financial and Columbia Electronics Systems. Extent of Fraud Estimated



The swindle affected more than 5,000 investors in Switzerland, France, West Germany and other countries, Mr. Kasper-Ansermet said. He estimated that $80 million to $150 million was lost in the fraud.

According to other investigators, more than $200 million has been lost. Many of the investment firms were based in the Geneva and Nice areas, but investigators said the network stretched from Spain to Sweden.

French and Swiss investigators said the fly-by-night investment firms, which had offices in half a dozen European countries, would go out of business and then set up in another city. Sometimes investors received stock certificates and sometimes not. Investors were often told that the value of their shares was rocketing upward and that they should increase their investments.

Investigators said the investment firms published newsletters with impressive-sounding names like Strategy for Investors and Invest News. These gave advice not only on giants like I.B.M. and Siemens but also on penny stocks that were touted as having hot prospects. A few days later, brokers from the investment firms telephoned investors and urged them to buy the penny stocks. Dawn Raid by French Police

The French police moved to stop the scheme in a morning raid on July 27 when they arrested Thomas F. QUINN, a former Wall Street broker, at a villa outside Cannes on the French Riviera.

European investigators said Mr. QUINN masterminded a ring that was based in Geneva and also had sold stocks to investors in Sweden, the Netherlands, the Middle East, Asia and South America.

''His problems with the commission span a number of years, going back to the late 1960's,'' said Chiles T. A. Larson, an S.E.C. spokesman.

In 1970 Mr. QUINN spent six months in jail for stock manipulation. In 1987, without admitting guilt, he settled a case in which the S.E.C. accused him and several partners of using false information in a 1980 stock offering of a minuscule company called Sundance Gold Mining and Exploration Inc.

French authorities have charged Mr. QUINN with securities fraud. His lawyers have declined to comment. His wife, Rochelle Rothfleisch, and another man were also arrested. Focus on Investment Firms

Investigators said the swindle, originally detailed in the business magazine La Vie Francaise, involved companies like Falcon Trust, Kettler Investment, Chelsea Financial and Equity Management Services.

Kettler Investment was one of the most active, according to Swiss investigators. They said the company was incorporated in Liechtenstein, had its main office in Geneva and attracted 5,000 to 7,000 investors.

Investigators said that Andrew Chapman, a 32-year-old Englishman, was arrested in Switzerland. He was registered as chairman of Kettler Investment and several of the other ''boiler room'' investment firms.

French investigators also said they were looking for Carl Porto, a resident of Boca Raton, Fla. They said he was involved in many of the companies named in the scheme. The S.E.C. accused Mr. Porto and others earlier this year of civil fraud in the offerings of several penny stocks. His telephone number is unlisted, and he could not be reached for comment.

''We still have a long way to go,'' said Gilles Rouveure, a French police investigator specializing in financial fraud. ''We're still trying to track down all the people involved.''

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11 arrested in Europe stock swindle
[FIN Edition]



Toronto Star - Toronto, Ont.
Author: (REUTER-SPECIAL)
Date: Aug 3, 1988
Start Page: B.1
Section: BUSINESS TODAY
Text Word Count: 431



Abstract (Document Summary)




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They were identified as Thomas QUINN, Rachel Rothfleish and Dominik Di Mare. A British citizen identified as Carl Davies, 41, was also among those arrested, police sources said.

The arrests were made coincidentally with police raids on the offices of Kettler Investment, registered in Liechenstein, Equity Management Services of Switzerland and Falcontrust Financial of Switzerland, according to the London newspaper The Times.

The sources said the network of fraudulent investment companies was believed to be active in Bahrain, Argentina, Liechtenstein, Cyprus, Sweden and France. They said profits from the scheme were laundered through a Gibraltar bank account.


11 arrested in Europe stock swindle
[FIN Edition]



Toronto Star - Toronto, Ont.
Author: (REUTER-SPECIAL)
Date: Aug 3, 1988
Start Page: B.1
Section: BUSINESS TODAY
Text Word Count: 431



Abstract (Document Summary)




[iframe style="POSITION: absolute; TOP: 0px; LEFT: 0px" id=aswift_0 height=200 marginHeight=0 frameBorder=0 width=200 allowTransparency name=aswift_0 marginWidth=0 scrolling=no][/iframe]

They were identified as Thomas QUINN, Rachel Rothfleish and Dominik Di Mare. A British citizen identified as Carl Davies, 41, was also among those arrested, police sources said.

The arrests were made coincidentally with police raids on the offices of Kettler Investment, registered in Liechenstein, Equity Management Services of Switzerland and Falcontrust Financial of Switzerland, according to the London newspaper The Times.

The sources said the network of fraudulent investment companies was believed to be active in Bahrain, Argentina, Liechtenstein, Cyprus, Sweden and France. They said profits from the scheme were laundered through a Gibraltar bank account.

[StockdungU]

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.



ARIZONA REAL ESTATE
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.

Reader Comments - Comments are open to paying subscribers of Stockwatch and unmoderated, although libelous remarks, obscene language and impersonations may be deleted. Opinions expressed do not necessarily reflect the views of Stockwatch.
For information regarding Canadian libel law, please view the University of Ottawa's FAQ regarding Defamation and SLAPPs.

[StockdungU]

2. Fraudulently Inflating the Price and Trading Volume of the Manipulated Companies' Stocks

17. After obtaining secret control of the manipulated companies' free trading shares, defendants POSSINO, NIX, MENDIRATTA, ANGELASTRI, HARRIS, MOYAL, SCARPELLO, SPITARI, DUNN, MACKEY, and DAVIS, together with others known and unknown to the Grand Jury, used the following methods, among others, to generate interest in the companies and fraudulently inflate the price and trading volume of the companies' shares:

a. Defendants POSSINO, NIX, and ANGELASTRI, together with others known and unknown to the Grand Jury, bought shares of the companies on the open market shortly before the promotion campaigns were launched. To the investing public, these trades appeared to be purchases by investors not affiliated with the companies, and gave the false appearance that there was an increasing market demand for the shares.

b. Defendants POSSINO, NIX, MENDIRATTA, and ANGELASTRI secretly cross traded the companies' shares back and forth between accounts that they controlled, in order to create the false appearance that there was an active market for the companies' shares so that:

i. The DTC would approve the electronic transfer of the shares through the DWAC program, thereby enabling the conspirators to manipulate the shares' prices and trading volumes more rapidly and effectively; and

ii. The investing public would take interest in the companies and purchase the shares.

c. Defendants POSSINO, NIX, MENDIRATTA, ANGELASTRI, HARRIS, MOYAL, SPITARI, DUNN, MACKEY, and DAVIS, together with others known and unknown to the Grand Jury, fraudulently promoted the companies' stocks through the following means, among others:

i. Paying stock promoters, including defendants HARRIS, MACKEY, and DAVIS, to tout the companies' performance and prospects, including through mass emails and mailings, television and internet advertisements, celebrity endorsements, promotional events, infomercials, and other media outlets;

ii. Giving, and offering to give, defendants MENDIRATTA, ANGELASTRI, MOYAL, and MACKEY, as well as others known and unknown to the Grand Jury, shares of the companies, or a portion of the profits from the manipulation campaigns, in exchange for funding the promotion campaigns; and

iii. Paying stock analysts and recommendation websites, many of which purported to offer independent and unbiased analyses of companies' stocks, to recommend the companies as favorable investments.
Defendants POSSINO, NIX, MENDIRATTA, ANGELASTRI, HARRIS, and MOYAL took steps to conceal from the public that they were the source of the funds paid to these stock analysts and recommendation websites.

d. Defendants POSSINO, NIX, MENDIRATTA, ANGELASTRI, SCARPELLO, and DAVIS worked with certain officers at the companies, including but not limited to defendants SPITARI and DUNN, and Unindicted Co-Conspirator 1, to issue press releases that the defendants knew contained materially false and misleading information, and omitted material information necessary to make the press releases not false and misleading, regarding:

i. The companies' business operations, products that the companies had supposedly developed or were developing, hiring of new employees, projected earnings, and growth potential;

ii. The defendants' ownership and control, through various nominees, of a substantial portion of the free trading shares of the manipulated companies' stocks;

iii. The defendants' payments to promoters to tout the manipulated companies' stocks;

iv. The defendants' artificial manipulation of the price and trading volume of the manipulated companies' stocks through, among other methods, cross trading shares of the manipulated companies between accounts that the defendants controlled; and

v. The defendants' intention to sell their shares of the manipulated companies' stocks at the same time that they were paying promoters to encourage the investing public to buy and hold shares of those companies' stocks.

Extract -

Doc 1 PDF file
http://www.scribd.com/doc/125529135/US-v-Possino

[StockdungU]

2. Fraudulently Inflating the Price and Trading Volume of the Manipulated Companies' Stocks

17. After obtaining secret control of the manipulated companies' free trading shares, defendants POSSINO, NIX, MENDIRATTA, ANGELASTRI, HARRIS, MOYAL, SCARPELLO, SPITARI, DUNN, MACKEY, and DAVIS, together with others known and unknown to the Grand Jury, used the following methods, among others, to generate interest in the companies and fraudulently inflate the price and trading volume of the companies' shares:

a. Defendants POSSINO, NIX, and ANGELASTRI, together with others known and unknown to the Grand Jury, bought shares of the companies on the open market shortly before the promotion campaigns were launched. To the investing public, these trades appeared to be purchases by investors not affiliated with the companies, and gave the false appearance that there was an increasing market demand for the shares.

b. Defendants POSSINO, NIX, MENDIRATTA, and ANGELASTRI secretly cross traded the companies' shares back and forth between accounts that they controlled, in order to create the false appearance that there was an active market for the companies' shares so that:

i. The DTC would approve the electronic transfer of the shares through the DWAC program, thereby enabling the conspirators to manipulate the shares' prices and trading volumes more rapidly and effectively; and

ii. The investing public would take interest in the companies and purchase the shares.

c. Defendants POSSINO, NIX, MENDIRATTA, ANGELASTRI, HARRIS, MOYAL, SPITARI, DUNN, MACKEY, and DAVIS, together with others known and unknown to the Grand Jury, fraudulently promoted the companies' stocks through the following means, among others:

i. Paying stock promoters, including defendants HARRIS, MACKEY, and DAVIS, to tout the companies' performance and prospects, including through mass emails and mailings, television and internet advertisements, celebrity endorsements, promotional events, infomercials, and other media outlets;

ii. Giving, and offering to give, defendants MENDIRATTA, ANGELASTRI, MOYAL, and MACKEY, as well as others known and unknown to the Grand Jury, shares of the companies, or a portion of the profits from the manipulation campaigns, in exchange for funding the promotion campaigns; and

iii. Paying stock analysts and recommendation websites, many of which purported to offer independent and unbiased analyses of companies' stocks, to recommend the companies as favorable investments.
Defendants POSSINO, NIX, MENDIRATTA, ANGELASTRI, HARRIS, and MOYAL took steps to conceal from the public that they were the source of the funds paid to these stock analysts and recommendation websites.

d. Defendants POSSINO, NIX, MENDIRATTA, ANGELASTRI, SCARPELLO, and DAVIS worked with certain officers at the companies, including but not limited to defendants SPITARI and DUNN, and Unindicted Co-Conspirator 1, to issue press releases that the defendants knew contained materially false and misleading information, and omitted material information necessary to make the press releases not false and misleading, regarding:

i. The companies' business operations, products that the companies had supposedly developed or were developing, hiring of new employees, projected earnings, and growth potential;

ii. The defendants' ownership and control, through various nominees, of a substantial portion of the free trading shares of the manipulated companies' stocks;

iii. The defendants' payments to promoters to tout the manipulated companies' stocks;

iv. The defendants' artificial manipulation of the price and trading volume of the manipulated companies' stocks through, among other methods, cross trading shares of the manipulated companies between accounts that the defendants controlled; and

v. The defendants' intention to sell their shares of the manipulated companies' stocks at the same time that they were paying promoters to encourage the investing public to buy and hold shares of those companies' stocks.

Extract -

Doc 1 PDF file
http://www.scribd.com/doc/125529135/US-v-Possino

[StockdungU]

2. Fraudulently Inflating the Price and Trading Volume of the Manipulated Companies' Stocks

17. After obtaining secret control of the manipulated companies' free trading shares, defendants POSSINO, NIX, MENDIRATTA, ANGELASTRI, HARRIS, MOYAL, SCARPELLO, SPITARI, DUNN, MACKEY, and DAVIS, together with others known and unknown to the Grand Jury, used the following methods, among others, to generate interest in the companies and fraudulently inflate the price and trading volume of the companies' shares:

a. Defendants POSSINO, NIX, and ANGELASTRI, together with others known and unknown to the Grand Jury, bought shares of the companies on the open market shortly before the promotion campaigns were launched. To the investing public, these trades appeared to be purchases by investors not affiliated with the companies, and gave the false appearance that there was an increasing market demand for the shares.

b. Defendants POSSINO, NIX, MENDIRATTA, and ANGELASTRI secretly cross traded the companies' shares back and forth between accounts that they controlled, in order to create the false appearance that there was an active market for the companies' shares so that:

i. The DTC would approve the electronic transfer of the shares through the DWAC program, thereby enabling the conspirators to manipulate the shares' prices and trading volumes more rapidly and effectively; and

ii. The investing public would take interest in the companies and purchase the shares.

c. Defendants POSSINO, NIX, MENDIRATTA, ANGELASTRI, HARRIS, MOYAL, SPITARI, DUNN, MACKEY, and DAVIS, together with others known and unknown to the Grand Jury, fraudulently promoted the companies' stocks through the following means, among others:

i. Paying stock promoters, including defendants HARRIS, MACKEY, and DAVIS, to tout the companies' performance and prospects, including through mass emails and mailings, television and internet advertisements, celebrity endorsements, promotional events, infomercials, and other media outlets;

ii. Giving, and offering to give, defendants MENDIRATTA, ANGELASTRI, MOYAL, and MACKEY, as well as others known and unknown to the Grand Jury, shares of the companies, or a portion of the profits from the manipulation campaigns, in exchange for funding the promotion campaigns; and

iii. Paying stock analysts and recommendation websites, many of which purported to offer independent and unbiased analyses of companies' stocks, to recommend the companies as favorable investments.
Defendants POSSINO, NIX, MENDIRATTA, ANGELASTRI, HARRIS, and MOYAL took steps to conceal from the public that they were the source of the funds paid to these stock analysts and recommendation websites.

d. Defendants POSSINO, NIX, MENDIRATTA, ANGELASTRI, SCARPELLO, and DAVIS worked with certain officers at the companies, including but not limited to defendants SPITARI and DUNN, and Unindicted Co-Conspirator 1, to issue press releases that the defendants knew contained materially false and misleading information, and omitted material information necessary to make the press releases not false and misleading, regarding:

i. The companies' business operations, products that the companies had supposedly developed or were developing, hiring of new employees, projected earnings, and growth potential;

ii. The defendants' ownership and control, through various nominees, of a substantial portion of the free trading shares of the manipulated companies' stocks;

iii. The defendants' payments to promoters to tout the manipulated companies' stocks;

iv. The defendants' artificial manipulation of the price and trading volume of the manipulated companies' stocks through, among other methods, cross trading shares of the manipulated companies between accounts that the defendants controlled; and

v. The defendants' intention to sell their shares of the manipulated companies' stocks at the same time that they were paying promoters to encourage the investing public to buy and hold shares of those companies' stocks.

Extract -

Doc 1 PDF file
http://www.scribd.com/doc/125529135/US-v-Possino

[StockdungU]

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 [phone]


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.

[$UPERMAN]

Mayhem for $GENM, surprised you're not on this.. lol

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=84608866

[$UPERMAN]

Court Troubles and Manipulation Surrounding $GENM

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=84608866

[$UPERMAN]

When, lol?? I wouldnt give .01 for this.

get ready to buy this for a buck very soon.

[adama1984]

OMG ITS COMING BACK TO LIFE!!!! LMAO

[adama1984]

If GENM goes to a $1 I will be very happy and will go to Vegas and party like its 1999.

[Jimmy WHEAT]

get ready to buy this for a buck very soon.

[Jimmy WHEAT]

Looks like the scammers have awoken to get the boiler rooms jumping off in the Dominican Republic.

[Jimmy WHEAT]

GENM is officially on Dollar watch.

[Jimmy WHEAT]

All I have to say is.... This is on Dollar watch! Just look at the sudden burst of bids.

[Jimmy WHEAT]

Its possible we print $.25 In the near term.

[PPS]

LOL

[Jimmy WHEAT]

Lmao as well. You talk as if you got plays. If you like money , radar this one.

[PPS]

LMAO, Thanks Again For Valuable Lessons!

[Jimmy WHEAT]

Anytime. Do you like making $$$$?