GlobeStar Therapeutics Corp (GSTC)

[crazy horse 0]

Went From great Potential to this

OUCH!!!

Pokerpro05

[Pokerpro05]

OUCH!!!

Pokerpro05

[crazy horse 0]

0.000004

[price_and_volume]

Don't forget SEC Enforcement & Complaints:

https://www.sec.gov/submit-tip-or-complaint/tips-complaints-resources/report-suspected-securities-fraud-or-wrongdoing

Back in the day SEC Enforcement had an active twitter profile, but I'm not sure that's still the case.

[Homebrew]

Or maybe 2023, or 2024? Or 2025? 2026? 🤣😂

2022 should be a strong year for GSTC.

[Homebrew]

Obvious scam found to be a scam...duh. $0 assets might have been just 1 red flag.

[Mike198571]

No worries.. f..k him.. i'm already sharing this everywhere:

GSTC & VXIT You should read this again all 13pgs.

STATEMENT OF CHARGES
Please take notice that the Securities Administrator of the State of Washington has reason to believe
that Respondents James Katzaroff, VirExit Technologies, Inc., and Globestar Therapeutics Corporation
(collectively “Respondents”) violated the Securities Act of Washington.

https://dfi.wa.gov/documents/securities-orders/S-23-3528-24-SO01.pdf




GSTC raised $499,500 from sixteen investors in February of 2021... Katzaroff primarily offered the investments by email and phone, though he did meet some investors in person.

Katzaroff told investors that GSTC had a patent for a drug cocktail to treat multiple sclerosis.

Katzaroff told the investors that the drug cocktail’s component drugs had already been approved by the FDA, so the cocktail would be on an accelerated approval basis.

Katzaroff gave investors the impression there was minimal risk because the component drugs were already FDA approved, so the approval process for the combination should have been “perfunctory.”

Katzaroff told investors that he had friends in hospital systems that would do the clinical trials for FDA approval.

Katzaroff failed to disclose... that he had recently purchased GSTC and still owed funds for the purchase.

Katzaroff failed to disclose that at least 85% of the raised funds were spent on payments to Blankenship for the purchase of GSTC, marketing, and payments to Katzaroff himself.


To date, neither Katzaroff nor GSTC has provided investors or the Securities Division with evidence that GSTC has conducted clinical trials for the drug cocktail.

When questioned, Katzaroff could not tell the Division what steps GSTC would need to take to get FDA approval for its drug cocktail.

Katzaroff testified that GSTC eventually pivoted to doing drug trials in India in November of 2022, however, at that point all investor funds from the initial February 2021 offering had been spent.

Katzaroff did not provide the division with records indicating that legitimate steps had been taken towards securing a clinical trial for its drug cocktail before investor funds had been spent.

Katzaroff gave at least one investor the impression that the trials had minimal risk of failure.

*************

And i mean everywhere.. i have shared this under almost all posts of katzaroff at linkedin and he finally deleted his profile picture on the platform.. i have shared this on VXIT "X" profile under few posts, and i have sent email to many people whom knows this pos haha katzarof even wrote email to me and asked to stop and started lying that he is working on something wonderful for us (another lies)

Now i will destroy his reputation everywhere.. everyone will know that he is lying fraud and pos

[BluePuppet]

Expert market, nice

[price_and_volume]

He's absolutely stupid. And a FRAUD imo.

The guy was handed TWO potential goldmines.

He outright LIED TO INVESTORS and ran them both into the ground.

At least experienced traders who KNOW TO NEVER EVER EVER believe ANYTHING these guys say were able to scale-out into runs.

If you can click the mouse to SELL as easily as you click it to buy then you can make money.

Unless you fall into the trap of believing what companies tweet or PR, or if you follow / believe infamous ihub-pumpers, then you're fkd.

GL!

[lifeonthefarm]

if jk keeps GSTC current whales will be buying again.
noone will buy GSTC or merge in if it hits the greys ...then jk will have to work 5x as hard to get it back to pink sheet quotations. he cant be this stupid

[price_and_volume]

Why has EVERY partner walked-away from JK?

There are plenty OTC shells - JK can shop it around, and maybe he'll get lucky just turning-over the shell.

But NOBODY wants to do legit business w/ the guy, that's become apparent over the past 5 years.

Fortunately there are plenty other OTC fish in the sea for traders to jump on, and scale-out of.

OTC's are getting volume.

$GSTC aint.

GL!

[lifeonthefarm]

why wouldn't jk find another company to MERGE into GSTC?
looking forward to your response to this ? tia

[price_and_volume]

He only talks directly to easy MARKS.

i talked with this pos in the past but seems i was too harsh for him and he doesn't want to talk with me anymore 😂

CONMEN require direct-contact to charm their marks.

Once the gig is up and he realizes you can't be conned, then its a losing situation for him to take the call, so he won't.

Oh well, live & learn.

As I've stated countless times here & elsewhere - it's a MISTAKE to ever contact an OTC CEO in pursuit of DD.

Read filings, & pay attention to price-action to determine whether the filings might be accurate or not.

The market, and insiders, know what's up - that WILL BE reflected in price-action.

OTC retail who believe they've uncovered a gem nobody knows about yet are a dime a dozen.

Unfortunately the bags they'll be left holding aren't worth those dimes.

GL!

[Mike198571]

Btw, did anyone talked with jk pos lately ? Did he tell what is his plan ? Did tell that he will sell this shell ? Initial plan is already dead.. we know it and he knows that too.. i talked with this pos in the past but seems i was too harsh for him and he doesn't want to talk with me anymore 😂

[Mike198571]

This will go to EM for some time for sure.. JK POS probably doesn't have money to pay to keep this shell on the OTC Market. This pos knows also that all investors figured out that he is just a lying pos thus he has to vanish for some time (again) to be ableto come back and and steal money from new investors..

[Mike198571]

And not 10 but 15days you expert...

Grace Period

Securities enter a Grace Period when OTC Markets Group is no longer able to confirm that the issuer’s disclosure is current and publicly available as required under Rule 15c2-11. When a security enters a Grace Period, it can continue to be publicly quoted for 15 days. At the end of the 15-day Grace Period, if the required disclosure is not available, the security will move to the Expert Market for unsolicited quoting only, unless OTC Markets Group determines another exception under Rule 15c2-11 applies, such as the Large Company/ADTV exception.

[waterchaser]

Why are you promoting VTXB on this unrelated board?

[Mike198571]

Thanks for the update but i will wait.. for me it doesn't matter wheter it is 0.0002 or 0.0000000001.. 🤷🏻‍♂️ this only proves even more that jk is a pos fraud and should be send to prison

[Aquahoya]

He will hopefully get what is due to him. Hopefully, he forfeits the shell companies and they have to be placed into someone else's hands. And that person or group is able to put a company into them. We will just have to hold our bags for the time being.

[Mike198571]

Previous comment was related to this doc :

https://dfi.wa.gov/documents/securities-orders/S-23-3528-24-FO01.pdf

Below comment is related to this document :

https://dfi.wa.gov/documents/securities-orders/S-23-3528-24-SO01.pdf


The **Stop Order Denying Effectiveness** and **Statement of Charges** (Order No. S-23-3528-24-SO01) issued by the Washington State Securities Division reinforces and expands upon the findings in the prior **Final Order** (S-23-3528-24-FO01). Here’s a breakdown of its legal implications and key conclusions:

---

### **Key Findings and Legal Analysis**
#### **1. Violations of Securities Laws**
- **Unregistered Offerings (RCW 21.20.140):**
Katzaroff and his companies sold securities for VirExit and GSTC without registration or valid exemptions. Both offerings (2021) involved **general solicitation** (emails, phone calls, referrals to strangers), violating Regulation D Rule 506(b), which prohibits public advertising.
- **Unregistered Broker Activity (RCW 21.20.040):**
Katzaroff acted as an unregistered broker-dealer by soliciting and selling securities.

#### **2. Fraudulent Conduct (RCW 21.20.010):**
- **Material Misrepresentations:**
- **VirExit:** Investors were told funds would develop PPE, but ~70% went to marketing, legal fees, and payments to Katzaroff/Sonfield.
- **GSTC:** Investors were misled about FDA approval timelines, clinical trial risks, and use of funds (~85% paid Blankenship, Katzaroff, and marketing).
- **Omissions of Material Facts:**
- Risks (e.g., market competition, supply chain issues, lock-up periods).
- Failure to disclose past unregistered offerings in VirExit’s 2023 Regulation A filing.

#### **3. Pattern of Misconduct:**
- **2023 Registration Filing:** VirExit’s application omitted prior misconduct, misused investor funds, and failed to pay required fees, demonstrating ongoing deceptive practices.
- **Affiliated Parties:** Katzaroff’s association with Sonfield and Blankenship (both with SEC violations) raises concerns about due diligence and ethical standards.

#### **4. Administrative Enforcement Actions:**
- **Stop Order (RCW 21.20.280):** Denies effectiveness to VirExit’s 2023 registration due to material omissions and false statements.
- **Proposed Penalties:**
- **Fines:** $60,000 (Katzaroff), $30,000 (each company).
- **Costs:** $25,000 jointly.
- **Revocation of Exemptions:** Bars VirExit and GSTC from relying on key registration exemptions.
- **Cease and Desist Orders:** Permanent injunctions against further violations.

---

### **Legal Conclusion**
This document serves as the **charging instrument** and **preliminary findings** that led to the subsequent **Final Order**. The Securities Division followed proper procedure:
1. Issued a **Notice of Charges** with tentative findings.
2. Provided Respondents an opportunity to request a hearing (which they declined).
3. Adopted the findings as final after no defense was mounted.

The allegations, if unchallenged (as they were), establish a **prima facie case** of securities fraud under Washington law. The findings demonstrate **intentional deception**, **reckless disregard for investor protection**, and **systemic non-compliance** with registration requirements.

---

### **Recommendations**
- **For Investors:** Pursue civil remedies (e.g., rescission, damages) under RCW 21.20.430.
- **For Regulators:** Consider referring the case to criminal authorities if evidence of **scienter** (intent to defraud) is present.
- **For Katzaroff/Companies:** Compliance with the order is mandatory; failure could lead to contempt charges or escalated penalties.

This order, combined with the Final Order, solidifies the administrative case against Katzaroff as a **fraudulent actor** in securities transactions.

[Mike198571]

Just for fun I have asked AI to analyze documents regarding jk (POS) legal case:

From a legal standpoint, the Washington State Securities Division's **Final Order** establishes that **James Katzaroff** engaged in fraudulent conduct under the **Securities Act of Washington**. Key findings supporting this conclusion include:

### **1. Material Misrepresentations and Omissions**
- **VirExit**: Katzaroff falsely claimed investor funds would be used for PPE development but diverted ~70% to marketing, legal fees, and executive payments (including himself). He also failed to disclose risks (e.g., competition, supply chain issues) and lock-up periods, leaving investors unable to sell shares.
- **GSTC**: He misrepresented the FDA approval process for a drug cocktail, asserting accelerated approval due to pre-approved components. However, no clinical trials were conducted, and ~85% of funds were used to pay the prior owner (Blankenship), marketing, and himself.

### **2. Violations of Securities Laws**
- **Unregistered Offerings**: Both companies sold securities without registration or valid exemptions (violating RCW 21.20.140).
- **General Solicitation**: Katzaroff solicited investors without pre-existing relationships, breaching Regulation D Rule 506(b).
- **Unregistered Broker Activity**: Katzaroff acted as an unregistered broker-dealer (violating RCW 21.20.040).

### **3. Anti-Fraud Violations (RCW 21.20.010)**
The order explicitly concludes Katzaroff made **untrue statements** and **omitted material facts** (e.g., misuse of funds, risks, lock-up periods), satisfying the elements of securities fraud.

### **4. Pattern of Deception**
- **2023 Registration Filing**: VirExit’s Regulation A application omitted past misconduct and misused funds, further demonstrating intent to mislead.
- **Failure to Defend**: Katzaroff’s failure to contest the charges (by not requesting a hearing) strengthens the administrative findings.

### **Legal Conclusion**
The Securities Division’s findings meet the standard for fraud under Washington law, as Katzaroff’s actions involved **intentional deception**, **material misstatements**, and **personal gain at investors’ expense**. The order imposes fines, revokes exemptions, and denies registration, reflecting the severity of the violations.

**Advice**: Katzaroff’s conduct constitutes securities fraud under administrative and civil standards. Investors may pursue further civil remedies, and criminal charges could follow if evidence of intent is substantiated beyond this proceeding.

[Aquahoya]

They did. 

[price_and_volume]

Yep, that's how they end up here:

https://www.otcmarkets.com/learn/prohibited-service-providers

what I have learned is that so many groups are in cahoots with one another and they dont care how exposed they are because they know nothing will be done. CPA firms, Auditing firms, Major Private companies, etc. So many people that essentially lie to your face.

Lotsa dirty lawyers who write "attorney letters" on there...

I think OTC is doing-away w/ annual attorney letters actually - just as well, they meant little to nothing.

[Aquahoya]

Honestly, what I have learned is that so many groups are in cahoots with one another and they dont care how exposed they are because they know nothing will be done. CPA firms, Auditing firms, Major Private companies, etc. So many people that essentially lie to your face. Fabrizio is real that is for sure. Had to take this private with his lawyer. Lawyer is going after Katzaroff in court. Anyway, unfortunately, you just have to play the trade and look at the lenders and the debt.

[price_and_volume]

I've said this before, and stand by it:

Do NOT CONTACT pennystock CEOs.

They're CONMEN who REQUIRE personal-contact to CONVINCE THE MARK to believe.

You'll be much clearer-headed if you:

1. Maintain distance & read Financial Filings (not PRs, not tweets, not ihub pump-posts), and
2. Watch the price-action & order-flow.

Rising PPS is fun, but if turns back down pretty quickly, the market knows what you don't.

JK was outted as a lying sack of shit long before you believed it, and you argued the point til you were blue in the face.

You even jumped on his other scam-stock's board to continue arguing in his favor THERE.

I know you've mea-culpa'd, but I'm not sure you realize where you went wrong.

If you've reached out to any OTHER CEOs since then, then you've become your own worst investment-advisor.

GLTA!

[NebraskaOTC]

The truth shall set you free.... pumperdoodle!

[Aquahoya]

No ifs, ands or butt's about it. 

[lifeonthefarm]

Jim needs to sell this shell or bring in something now and stop the BS already..

[NebraskaOTC]

LMAO. YOU are a liar and a pumper. You did ZERO work here. NO DD whatsoever. If you had, you would have known the CEO was not doing a single thing. A few of us found out and tried telling the truth. YOU and your minions did everything in your power to silence ANYONE speaking the truth. YOU have hopped from ticker to ticker and lied numerous times about each one.
So no Bud... YOU shut YOUR damn mouth and take your pump crew to the next ticker.

[Aquahoya]

What crew man? I have conviction based on the fact I contacted everyone he spoke to. The hospitals, the conversations with societies, etc. Does that mean I wasn't mad at the individual. I continue to speak with the patent owner. The patent is real. Everything is real, Jim and his crew just used it plane and simple and that's not easy to parse out. You knew nothing. You didn't ask any questions. You just made assumptions. I should have seen RDGL for what it was. But even that was real. Fortunately they kicked out Katzaroff. That's the difficulties with this. This was a real company with a CEO that cared about hist interest. So, shut you damn mouth. You are lazy and walk around like you know what is going on. All you do is go board to board saying stuff like you do any form of work to actually find a legitimate company.

[NebraskaOTC]

Pretty safe to say.... YOU and your crew of pumpers attacked people who have been telling the truth here for years! YOU stood up for this guy like he was your girlfriend.... SO if HE is a POS... what does that make YOU?

[Aquahoya]

Pretty safe to say he is a major POS. All we can hope for now is someone else takes this over. It's a good shell with a good OS.

[Mike198571]

No, I'm using Interactive Brokers platform/app.. and i think that it's very likely that we will see this shell in EM.. thanks to jk pos

[lifeonthefarm]

do you have a Canadian account?
anyway I don't think its going to em..

[Mike198571]

I've checked with my broker and even if this scam will be moved to EM will still be able to keep my shares but only to sell.. anyway will keep them until jk won't disappear from this world and somebody genuine and smart will take-over this shell.. hopefully soon! globestar is already dead company!!

[lifeonthefarm]

un f-ing real....

[crazy horse 0]

0.0001

[Mike198571]

BTW, jk is pos and even if this will be moved to EM, i will lose 300$ not 3,000$ or 30,000, so I don't care and will keep this shitty shares with hope that jk will leave this company and let.someone smart run this shell... he is not a CEO.. just a lying pos.. you friend of pos jk ? You want to scare other people ? Give me a break.. nobody here (lucky for the people) bought 100,000,000 GSTC shares... WE DON'T CARE!!!

[Mike198571]

Last part is the best

[Value_Investor]

WARNING And ADVICE to all here!!! The Biggest Pos Scam (GSTC) will be De-Listed or Downgraded to the TOXIC Expert-Market in the coming weeks...

In another word, just SEVERAL Weeks later all the GSTC shares will crash to $0.000001 which means that every 100M shares of GSTC will be worthy only mere $100 after De-Listing! Note, the current Huge OS could be 3B or more shares while the Giant AS is 10B shares!

So, all the shareholders here should Liquidate GSTC at the bids ASAP before it crashes down to $0 x $0.0001 suddenly!

Anyone with any doubt about De-Listing Risk can easily check out what happened to its OTC Expert-Market peers (such as SUTI, KGRI, PBHG, BUNM, PRCX, FRCN, MEMI, NBVG, RDWD, and ZCBD etc.).

Selling 100M shares of GSTC at the Highly-Inflated Short-Lived bid $0.0002 now is still worthy $20,000 but all the Same Amount of shares will only be worthy mere $100 after the Coming Inevitable De-Listing!

The only way to Recover your Huge Losses here is to use all the cash proceeds from Liquidating GSTC to buy a Red-Hot Bitcoin-Mining Hidden Gem (such as VTX?) at current Basement price levels $0.0001 x $0.0002 then hold all the shares to Multiple Pennies at least because the peer could surge to $0.2327 and $0.2306 respectively in the near future based on the Market Value Matching Theory between the two OTC stocks!

[Mike198571]

Katzaroff will lose a lot of money if he will take this shell to expert market.. is he such stupid ? I believe yes.. the most supid ceo i"ve ever seen...but hey.. he qon't lose his money.. only the one he stolen from investors and their families...

[NebraskaOTC]

LIED. pumped and attacked anyone who told the TRUTH about $GSTC. Then moved to the next SCAM to rinse and repeat.

[price_and_volume]

No I did not.

So I believe you lost money too ?

I was attracted to the board for other reasons.

I stayed to debate those who believed in JK & pumped his stock(s), because it became clear to me long ago JK was a lying sack of shit.

I try to present the opposite view to pumpers who too often enable OTC CONMEN to deplete investors accounts.

Where does the lost money go?

Sometimes to the pumpers if they're clever - but more often they're NOT CLEVER at all, they're naive retail idiots who repeatedly believe bald-faced lies despite the truth being laid out for them.

Most often the money goes to insiders & other traders who simply trade price-action.

According to the court case posted here several times, JK stripped over $1MM from investors.

I would expect additional lawsuits, but investors often just walk away.

A learned lesson.

I hope this lesson was worthwhile for a few here.

GLTA

[Aquahoya]

I was wrong. Clear as day. 

[Dudman1207]

For the love of god, please do not believe a thing Aqua says.  He has bagged more people on $GSTC than a grocery store.  

[Mike198571]

So I believe you lost money too ?

[price_and_volume]

Curious about this, tell us more:

This will haunt me for a while. A learned lesson.

Any worthwhile lessons should be shared imo - we all can learn from each other.

[NebraskaOTC]

WRONG!!!!!! There were many here who knew $GSTC was a SCAM. Several of us brought up many valid points and were attacked for it. The ones doing the attacking also knew this was a SCAM.... yet they continued to spread lies and attempt to get people to buy their shares.

[price_and_volume]

OTC has rules for moving to EM.

Previously discussed https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175670623

I didn't receive any response from OTCM when I inquired a couple weeks ago.

Form15 filed 2 weeks ago was no surprise - I mentioned that was fully expected back in August:

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174969714

Unfortunately, $GSTC (and its cousin $VXIT) followed well-worn OTC scam playbooks that sucked-in retail.

Warnings & those providing them were typically disparaged & attacked by the naive.

GLTA going forward.

[Mike198571]

Just checked with chatGPT , details below:

If a company stops reporting to the SEC, its stock will typically move to the Expert Market under the following timeline:

Initial Non-Compliance (First Missed Filing)

If a company misses an SEC filing (e.g., 10-K or 10-Q), it may receive a warning from OTC Markets or an "E" designation on its ticker. OTC Markets may flag it as "Pink Limited Information" for 15–30 days.

Downgrade to Pink No Information (30–60 Days)

If the company fails to file reports for over 30 days, it will likely be downgraded to Pink No Information status. Trading liquidity may drop significantly, but it is still tradeable.

Move to the Expert Market (60+ Days of Non-Reporting)

If non-compliance continues for more than 60 days, OTC Markets may move the stock to the Expert Market, making it nearly untradeable for regular investors. Only broker-dealers and institutional investors can trade Expert Market stocks. This effectively kills liquidity, as most brokers block retail trading. Key Takeaways: 30–60 days after stopping SEC reporting, the stock usually gets downgraded. After 60+ days, it could be moved to the Expert Market, severely limiting trading access. If the company resumes filings, it can move back to OTC Pink or higher-tier markets.

Would you like help tracking a specific stock or navigating SEC filings?