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Why did this thing jump 9900%? Did it reverse split, letter drop? I couldn't find any changes, news etc related to this company.
The SEC is incompetent beyond words.
It's a miracle that the SEC is doing something, considering how long they let Bernie Madoff rip people off.
Man.. it's about time. I filed a complaint with the SEC when I started posting here almost 2 years ago proving it was a scam. Oh well, better late than never.
Got them again/
Off to the greys she goes.
GAEC suspended by the SEC:
Jul 31, 2009
Pink OTC Markets News Service
Washington, D.C.— SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
RELEASE NO. 60410 / July 31, 2009
SEC SUSPENDS TRADING IN THE SECURITIES OF GULF ALTERNATIVE ENERGY CORPORATION
The U.S. Securities and Exchange Commission today announced the temporary suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934 (the “Exchange Act”), of trading in the securities of Gulf Alternative Energy Corporation, at 9:30 a.m. EDT, July 31, 2009, through 11:59 p.m. EDT, on August 13, 2009.
The Commission temporarily suspended trading in these securities because of questions regarding the accuracy of statements made by Gulf Alternative Energy Corporation in press releases to investors and on its website concerning the quality of the company’s technology and the company’s business prospects and agreements.
The Commission cautions brokers, dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company.
Further, brokers and dealers should be alert to the fact that, pursuant to Rule 15c2-11 under the Exchange Act, at the termination of the trading suspension, no quotation may be entered unless and until they have strictly complied with all of the provisions of the rule. If any broker or dealer has any questions as to whether or not it has complied with the rule, it should not enter any quotation but immediately contact the staff in the Division of Trading and Markets, Office of Interpretation and Guidance, at (202) 5515760. If any broker or dealer is uncertain as to what is required by Rule 15c2-11, it should refrain from entering quotations relating to the securities of Gulf Alternative Energy Corporation until such time as it has familiarized itself with the rule and is certain that all of its provisions have been met. If any broker or dealer enters any quotation which is in violation of the rule, the Commission will consider prompt enforcement action.
If any broker, dealer, or other person has any information which may relate to this matter, they should contact Christopher Ehrman, Branch Chief, at (202) 551-4590, or by email at ehrmanc@sec.gov.
Pinksheets has just downgraded GAEC to their dreaded "Caveat Emptor" rating:
http://www.pinksheets.com/pink/quote/quote.jsp?symbol=gaec
Pink OTC Markets has discontinued the display of quotes on pinksheets.com for this security because it has been labeled Caveat Emptor (Buyer Beware) and because adequate current information has not been made available by the issuer of the securities. It has been labeled Caveat Emptor for one of the following reasons:
•Questionable Promotion — The security is being promoted to the public, but adequate current information about the issuer has not been made available to the public.
•Spam — The security is the subject of spam promotion having the effect of encouraging trading of the issuer's securities.
•Investigation of Fraud — There is a known investigation of fraudulent activity involving the company, its securities or insiders.
•Suspension/Halt — A Regulatory Authority has halted or suspended trading for public interest concerns (i.e. not a news or earning halt).
•Disruptive Corporate Actions — The security or issuer is the subject of corporate actions, such as reverse mergers or serial stocks splits and name changes, without adequate current information being publicly available.
•Unsolicited Quotes — The security has only been quoted on an unsolicited basis since it entered the public markets and the issuer has not made adequate current information available to the public.
•Other Public Interest Concern — There is, in Pink OTC Markets' view, a public interest concern.
Consequently, Pink OTC Markets has removed the quotes from this website until adequate current information is made available by the issuer pursuant to Pink OTC Markets Guidelines for Providing Adequate Current Information (PDF) and until Pink OTC Markets believes there is no longer a public interest concern. Investors are encouraged to use care and due diligence in their investment decisions. Please read our Investor Protection page for more information.
This whole business about sending off to an independent lab, however belated the news release is, is simply bogus.
The measure of how effective their process is cannot be measured by standard scientific material composition tests. They have to subject the material to a comparative test of what the material composition was prior to it being subjected to their "alledged" pre-treatment and what characteristics were retained by the material after the testing. This is true for the free occuring sugars first and then for all of the rest of the compositional molecular strucutres of the materials.
After all of this then the material has to be subjected to a fermentation vs time vs mass basis which will then give you the ability to make a definitive determination of the continuous flow fermentation volume that can be done. The CFFV can only be calculated from another set of variables that are strictly related to the strain of microbe being used as the fermentation medium and the enzyme loading that is required for conversion of the higher order cellulose and hemicellulose to be broken down.
Of course Mr. Shearer nor Ms. Delany do not have any knowledge or technical experience for establishing controlled procedures, let alone know how the process even works, nor how to design and build a continuous flow fermenter. Assuming even on the surface that they are trying to actually develop a legitimate operation, there is also a problem with one very critical issue - they still haven't beat the molecular bulk density equation to the degree that they are not going to have some serious economic problems based on transportation and handling of the material. So even if they have magically stumbled upon a pre-treatment process that does what they claim to do, they do not have a practical application until that issue is solved!
Furthermore, if they have managed to replicate ATNE's technology, then it would appear that they have a big problem as violating the signed NDAs they previously have with them: http://findarticles.com/p/articles/mi_m0EIN/is_2008_May_12/ai_n25406262/
The question can be simply answered by asking Microlab this question:
"Does the samples contain esterified lignin?". If the answer is "no", then the samples provided to them are stolen directly from ATNE as their process separates out the lignin from the process. If the answer is "yes", then GAEC is not doing anything new and simply taking existing process technology (i.e. Vortex Ventures equipment) - either way, the answer will implicate GAEC as a complete hoax.
repost/updated from yahoo: 2008 financials out -
Most notably (and laughably!) is this statement about the Beneficial owners:
Firemark Capital, LLC
Joe Schmoe, Manager & Resident Agent 4,557,260 shares (9.0%)
Address: 1947 Sparrow Ridge Road (according to Harris County Tax Records, this is Jack and Rowanne Uselton's home address)
IBIS Energy, LLC
Joe Schmoe, Manager & Resident Agent 4,755,420 shares (9.4%)
Address: 615 Flaghoist Lane (according to Harris County Tax Records, this is Darrel and Lorena Uselton's home address)**
**According to Fort Bend County, TX Tax Records, Darrel just purchased a new home for $825,000 on March 14, 2008 at 10111 W HIDDEN LAKE LN, RICHMOND, TX. 77469. The property has an assessed value of $1,036,380 and was bought with "cash".
"Joe Schmoe" - LOL!!! Why not just call them Beavis and Butthead? Everyone knows that Darrel and Jack Uselton, are the owners of each of these companies!! GEEEZZZ - call a spade a spade will ya?
If you may recall, the Company made this 2007 statement:
"On July 17, 2007 the Board of Directors, after becoming aware of an investigation of Darrel and Jack Uselton for securities related matters, resolved that the Company and all officers and directors should sever all business relationships with Darrell Uselton, Jack Uselton and any entities controlled by the Uselton’s. In order to separate the company from the Useltons all of the shares held by the Uselton’s or their entities were subsequently purchased by Galleria Asset Management, Inc. The President of Galleria Asset Management, Inc. is John Thomas Cloud and is located at 160 Wimberly Ranch Drive, Wimberly, TX 78676. The registered agent is William A. Carmichael"
Yet, quite disturbing, the opposite appears to be true. Notwithstanding Darrel and Jack's other 8.457 million share holdings (pre-split) through Tejas Capital, Accelerator Partners, Brazos Capital and Valores Fund which may or may not have been absorbed through Galleria Asset Management, the net portolio appears to actually INCREASE for Ibis and Firemark!!
In 2007, Ibis Energy (Darrel Uselton) was issued 112,770 shares of GFET (2.255 million pre-split), yet his current holdings are now 4.755 million. Similarly, in 2007, Firemark (Jack Uselton) was issued 7500 shares (150k pre-split) while his holdings now have dramatically increased to 4.557 million shares!! Say it ain't so Kathleen!! WTF!
Other items of note:
Typo carry over from 3rd qtr financials - corporate phone number should be 713-461-9229, not 713-463-9229.
New website noted in financials as: http://www.gulfalternativeenergy.com/ . Typos on website still erroneously show the stock ticker as GEAC instead of GAEC.
Outstanding shares ballooned from 47,086,265 to 50,586,265 in the last quarter alone (7.4% increase for the quarter, 29% increase for the year). Personal ATM Shares issued for cash include 1.0 million shares at an average price of $0.025/share, and 2.5 million shares issued for debt conversion generaing $225k in proceeds.
"We do not have enough cash to satisfy our capital requirements for the next twelve months"
"We currently have few assets ($15k) and no income."
"Our general and administrative expenses decreased from $4,154,833 for the year ended December 31, 2007 to $606,071 for the same period ended December 31, 2008." - congratulations - guess William Carmichael and JT Cloud are officially retired! However, with Kathleen's salary now at $21k per year, what is the other $585k for??!?
GAEC has an accumulated deficit during the development stage of $6,619,931 as of December 31, 2008 and a working capital deficit of $319,215 at December 31, 2008.
Gulf Alternative Energy is still a development stage company
Left over business from the "old" management: On February 13, 2007 we granted options to two shareholders who were included in the original offering, to purchase up to an additional six million shares. These options had an exercise price equal to the par value of the common shares ($0.0001) and must be exercised within one year. As of December 31, 2007, all of the six million options had been exercised, resulting in a cash receipt of $600 (YUP! - that's right, $600 bucks for 6 million shares - now THERE is fiscal responsibility for ya!).
"We have one full-time employee and no part-time employees" - Kathleen still a one-woman show!
Why would anyone think things have changed?
Kathleen's business acumen at leading a fledgling developmental healthcare startup company into oblivion (MYHA.pk), while being well over 4 weeks tardy in communicating the corporate news, and still not being current with the SEC filings, while making it entirely unclear where the corporate headquarters is (Houston vs. San Antonio vs. Lake Charles, Blalock Road vs. Long Point Rd. vs Post Oak Blvd. vs. IH 35, etc...), sloppy website, etc....
Just wondering if Kathleen's middle name might be Sybil....
http://www.fmsfonline.org/sybil.html
Not sure if Carmichael leaving makes gaec less likely of being a fraud. Does anyone think this company will actually do something now with the ceo change or is it just more dog and pony.
I am unsure why Kathleen made this announcement as it was already evident that she had taken control as early as over 4 weeks ago on March 27th press release announcing the name change (http://finance.yahoo.com/news/Gulf-Ethanol-Evolves-to-Gulf-bw-14726267.html?.v=1) as well as knowing that William Carmichael had fled the coop for a new company literally a block down the road with "Proven Technologies" (http://www.proventechllc.com/managementteam.html). Curious statement by Kathleen stating that the corporate website is "updated", when it is still lacking any meaningful information on what exactly GAEC does, and also still contains numerous errors, like the glaring one for the symbol name being incorrectly shown as "GEAC".
Maybe details of the companies technology being less than elaborated on is not so surprising, as it would appear William has replicated the same at his new company: http://www.proventechllc.com/shredders.html
Maybe it is instead the fact that the latest financials indicate that the technology isn't quite ready for commercial applications and is needing further refinement/modifications.
Gulf Alternative Energy Announces Changes
May 4, 2009 7:55:00 AM
Copyright Business Wire 2009
Email Story Discuss on ZenoBank
View Additional ProfilesHOUSTON--(BUSINESS WIRE)-- Gulf Alternative Energy Corporation (PinkSheets:GAEC) announced today that it has appointed Kathleen Delaney to serve as its new Chairman and CEO. Ms. Delaney brings experience in management and in the practice of law to the leadership of the Company.
In addition, the company has updated its web-site and invites those interested in the Company to visit www.GulfAlternativeEnergy.com for an update on the Company. Gulf is focused on commercializing its cellulose pre-processing technology and on expanding its green technology portfolio.
Transforming cellulose to ethanol efficiently is a technical challenge that will transform the biofuels industry. Gulf Alternative Energy believes it has moved the industry much closer to economic viability with its preprocessing technology that turns non-food plant material (called biomass) into extremely small particles that can more quickly and more cheaply be turned into ethanol.
About Gulf Alternative Energy Corporation
Gulf Alternative Energy is an alternative energy company focused on the development of the alternative energy industry with a particular emphasis on Texas and the Gulf Coast.
For more information, visit www.gulfalternativeenergy.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipate" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.
Source: Gulf Alternative Energy Corporation
----------------------------------------------
Gulf Alternative Energy Corp.
Kathleen Delaney
713-461-9229
Yea, this company is shaddy...I had 10,000 shares and now have 500 worth a few hundred bucks. I am saving this one to write off as a loss end of tax season this year. Don't like this one at all and I think they put out a lot of fluff PR about big contracts in Brazil ect...
This hurts. When they did the 1/20 split .03 cents became .60 cents. The stock briefly went to .90 cents and has dropped like a rock ever since. Today it closed at .30 which is equal to .015 before the split. Needless to my stock is worth virtually nothing
New name, same game....btw...anyone think the name change and reverse split was a way to defer publicity to Jack and Darrel Uselton (former GFET CEO) settling civil charges with the SEC while still trying to settle the criminal charges leveled by the Texas OAG?
http://www.sec.gov/litigation/litreleases/2009/lr20961.htm
Intentions of Gulf Ethanol Corporation (GFET.PK)
As Gulf Ethanol Corporation (GFET.PK) states, they do not have any significant operations at this time. However, the company intends to become a developer and constructor of ethanol and ethanol feed stock manufacturing facilities. Unfortunately, sometimes intentions remain only intentions. The share price has been dropping gradually from the middle of 2007. Besides, one more new stroke my eye: Ahead Of The Bulls has been compensated 75,000 free trading shares to promote GFET.PK.
This entry was posted on Thursday, May 22nd, 2008 at 12:59 pm and is filed under Penny Stock Promoters.
2 Responses to “Intentions of Gulf Ethanol Corporation (GFET.PK)”
cruela Says:
December 8th, 2008 at 11:03 am
Yeah, the stock has been going down for some time….nothing nice, I would say…
Adam Says:
December 5th, 2008 at 4:28 am
if you check out my blog, you will see why GFET has done so poorly.
Go to main page click blog and search GFET in searchbar
http://www.pinkinvesting.com/2008-05-22/intentions-of-gulf-ethanol-corporation-gfetpk/
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thank you, and the same to you sir,moreover, thank you for the information.
Thanks - for the record, I sincerely want people to make money with their investments, and as such, people should take my comments with the grain of salt and NOT a direct endorsement to buy, sell, trade, go long or short in this or any other stock.
Off topic - penny stocks, with proper discipline, can be a profitable way to make money as sometimes you do find a diamond in the rough. A few years back, during the irrational market of the late 90's, I found one in a company called DCH Technology (DCHT). The stock ended up on the AMEX for a short period before collapsing under the weight of the overall market crash. The reason I bring it up is that the same individuals that ran that company, have a new venture: EIPC http://www.enableipc.com/ . Seasoned management, who are technically at the top of their game, might be worth a crap shoot on that stock. I am not an investment advisor, so suggest doing your own DD, but for what it is worth, I have personally met management and have personal faith in them and know that they have a real product with real promise. From a stock play, they need some exposure as the chart is not so impressive.
zekel, your research (if accurate, and I have no reason to believe it's not) is second to none. These pennies are a cesspool. I keep dreaming I will find a stock that miraculously can make it. I'm quite confident GFET will never be such a stock. The irrational share volume is all I need to know this. (I've been in the pennies for 10 years and never have seen a stock trade like GFET.)
Mainly just wanted to say I'm impressed. And I'm only allowed 3 posts a day now (for pimping another stock across iHub) so for me to use a post thanking a stranger such as yourself, I really am quite impressed. :0)
New information to share:
For those of you that recall the press release back in April where GFET announced a Letter of Intent to purchase an Ethanol Plant from SMS Environmental and move it to an undisclosed location in Central America, there is some additional history on this.
SMS changed their name to Sunrise Solar (OTC:SSLR) a few months ago, and has stated in their financials that the plant in question has been sold off to Cargill, Inc. as part of a settlement for previously delinquent debt owed to Cargill. This debt was to have been paid to them beginning in September 2007. By SSLR's own admission in their financials, they only satisfied enough payments to carry them through about December 2007. What is disturbing is that the LOI with GFET was after this fact, when SSLR is believed to have known definitively that the plant had a lien on it and was the likely subject of an impending settlement with Cargill.
One might ask, "so what - how does that affect me here at GFET?". The answer is not so complicated - it has been reported that SSLR's CEO, Eddie Austin, is related to GFET's JT Cloud (cousins?). You should also know that one of SSLR's officers is Thomas Cloud (JT's son). So with the explicit knowledge and non-arms length transaction that was allegedly supposed to go through betweeen SSLR and GFET, both companies management knew it would never go through, but it sure might look good on the books (re: stock price) to have a sale (SSLR revenue stream) and a new, 1st, operating plant (GFET).
But wait, the story gets thicker over the last couple of weeks! Thomas Cloud's other company, Telemedicus (OTC: TMDI - the "virtual ambulance" company), suddenly, and inexplicably decided to change their company focus via an unannounced 1:20 R/S and name change to National Wind Solutions (OTC: NWND). The only company information we have to date (received posthomulously a week later) is that they "announced new management" (names withheld for some strange reason), moving to a new corporate office (which by the way, I drove by and found it to be unoccupied), and a new investor contact: Kathleen Delany. No surprise to me, but perhaps to others, Ms. Delany is also the CEO of My Healthy Access (OTC: MYHA), a company that was supposed to have an equity stake bought out by Cloud's TMDI company, but mysteriously fell through. Also of no surprise to me, Kathleen is a partner in Eddie Austin's Lake Charles Law firm. Can things get any more incestious than this?
The whole thing just smells fishy to me...anyone else share my feelings or is this all "coincidence" that the trail from Jack and Darrell Uselton has found its way here?
fair enough - please accept the apology - I came on a bit strong.
i wasnt aware of all that you talk about, i appreciate the info...still thats no way to come at me, i respect and expect respect, if its information that helps out the share holders im all in, thank you
"given the right promotion and exposure Gulf Ethanol has a chance to be in the lime light IMO"
That of course, is ridiculous to make such a statement. The Company is a self described "developmental" company, with management having little to no experience in the industry, a penchant for spewing out dozens of press releases promising "letters of intents", "engagements" with other companies, "intentions" of buying ethanol plants, opening up offices, and touting on their website that they have seasoned business history of buying, trading, and producing ethanol, when it is clear from their own financials, that they have never done any of the above.
Even if they actually get to the point of jointly developing a preprocessing unit, the company has no financial wherewithall, no employees, and no experience in marketing such a product. Notwithstanding these small obstacles, the stated agreement with Vortex Ventures is to simply be a distributor/servicer of the product - the financial arrangements for profit on such venture are non-disclosed, but certainly GFET has no such servicing staff to actually support such an operation.
The whole fascade of such a venture is just laughable on its face.
In the alternative, if your comments are to suggest this would be a good stock play due to the illusion of having a real company, I believe they already tried that game back in July 2007 when they hired Chet Gutowski as an independent analyst to pump this dog. What they failed to mention in their disclosure was that Chet is part owner of (GFET major shareholder, Jonathan Gilchrist's companies: ), Goldbridge Capital and Southfield Energy, both located in the same office suite as GFET.
This whole company reeks of deceit in my opinion.
Wash trading - i.e. the illegal practice of trading shares between accounts to give the appearance of liquidity.
The allegations, as outlined in the Federal (SEC) and State (Texas OAG) indictments of former GFET CEO, Darrel Uselton, and his uncle, Jack Uselton, they allege that there were numerous wash trades performed as a common practice by these individuals on the 35 companies referenced ("Operation Spamalot"). The trial procedures for these two individuals are ongoing with recent motions considered last month, and expected to move towards a docket sometime early next year, so at this point they deserve to be "presummed innocent", until proven otherwise.
However, disturbing to me are the numerous entities at GFET that were issued millions of shares:
Ibis Energy LLC Darrel Uselton 2,255,403
David Mordekhay David Mordekhay 1,585,000
Carly Long Carly Long 1,585,000
Oren Mizrahi Oren Mizrahi 1,585,000
Mark Schiller Mark Schiller 500,000
Firemark Capital, LLC Jack Uselton 150,000
Cloud Management JT Cloud 4,000,000
Oxford Funding JT Cloud 2,000,000
National Health Alliance, Inc. JT Cloud 2,000,000
Galleria Securities Corp. JT Cloud 2,000,000
The Internet Business Factory Jonathan Gilchrist 6,000,000
Hepplewhite Corporation Jonathan Gilchrist 2,000,000
Tejas Capital, Inc. Steven Lease* 2,000,000
Accelerator Partners, Inc. Darrel Uselton 2,000,000
Brazos Capital, Inc Jim Mobitty* 2,457,000
Valores Fund, L.P. Unknown* 2,000,000
Total 34,117,403
*Note: These three companies are previously known to be Darrel Uselton controlled entities.
It is my belief/speculation, although unconfirmed, that these entities continually churn shares between themselves to give the appearance of liquidity that we witness on a daily basis on this stock. There are many days that the company has no news items, and we see an irrational amount of activity on the stock.
given the right promotion and exposure Gulf Ethanol has a chance to be in the lime light IMO
this one has potential to be a monster IMO
Whoever is wash trading (IMO) this stock is pretty committed!
"How KDS enhances the production of Cellulosic Ethanol"
http://fasc.net/cellulosic-ethanol.php
FASC (unlike GFET) is the real deal. Watch and see.
70vwvert:
"gfet emphasis is on alternative sources of feed stock (NOT CORN) for the production of ethanol" - for clarity, GFET does not market, produce, or trade ethanol and I would envision that their new focus of producing this pre-processor technology would be applicable to any ethanol plant irrespective of feedstock.
"gfet has proven that its' method produces a feed stock that may be a competitive alternative to corn" - GFET has not proven anything yet except proclaiming they have turned on the machine and running some sorghum through it. By its own admission in its press release, they are asking for further modifications to the prototype unit, and have yet to announce definitive results of the first dry run, nor the scalability of such a unit on a larger scale.
"this action keeps the ethanol mandate at 9.5 million gallons vice 4.5 million gallons TX was asking" - the problem remains with the amount of mass needed for transportation in order to generate the same volume of ethanol by using non-food feedstock which is 4-6 times more mass. You either have to preprocess the feedstock at each farm location (which means you need a new infrastructure for storage and processing), or you need to put the preprocessors at the ethanol plants (which is a good idea), but you still have the increase in transport costs now.
"one more thing - if you are a meaningless basher disregard the above because it will make no difference in your message and consider this my last repsonse to you as you are probably paid by generating responses to you negative comments." - hope you find my comments not to be "meaningless".
FASC is the real deal. I am in GFET but FASC is still trading under the radar at .04. Go to http://KDSMicronex.com and http://fasc.net and find the next GFET. I would definately be buying both on Monday. But FASC is still only .04. Good luck all. FASC is a must DD for all GFET investors.
OG7
You figure it out, here is a start
gfet emphasis is on alternative sources of feed stock (NOT CORN) for the production of ethanol
gfet has proven that its' method produces a feed stock that may be a competitive alternative to corn
this action keeps the ethanol mandate at 9.5 million gallons vice 4.5 million gallons TX was asking
Texas recently announced its' interest in cellulosic sources of feed stock for ethanol production because imo TX would rather corn be fed to livestock ie cattle
do your own dd the information is there
one more thing - if you are a meaningless basher disregard the above because it will make no difference in your message and consider this my last repsonse to you as you are probably paid by generating responses to you negative comments.
Nice!!!!!!!
weeeeeeeeeeeeee!!!!!!!!
:)
Nice move on that news!
"EPA Denies Texas' Request for Ethanol Waiver"
How is this relavent to this company? GFET has never produced, manufactured, traded, bought, sold, or bartered any ethanol EVER!
Hopefully something will start to move the 'right'way. They need to be able to repeat this and have it veified as a viable process before I'm convinced and willing to stay. This is such a shaky company .
Gulf Ethanol: It Works!
GFET's New Biomass Preprcessing System
HOUSTON, TX--(Marketwire - August 4, 2008) - Gulf Ethanol Corporation (PINKSHEETS: GFET) announced today the first successful testing of its biomass preprocessor. The prototype unit successfully processed raw feedstocks into an extremely fine powder which will allow cellulosic ethanol producers to improve results significantly.
"We are excited to see the first successful operation of our new technology," noted Bill Carmichael, President of GFET. "We have evaluated the initial results and are now ordering some design revisions that we believe will improve the efficiency of our technology. Then we will resume further testing," he added.
The U.S. Department of Energy states that, "The initial sizing and grinding of biomass affects efficiencies and quality of all the downstream operations. New technologies and equipment are required to process biomass between the field and conversion facilities." This is the need met by our new technology.
The U.S. Department of Energy states that, "Biomass is the single renewable resource that has the potential to supplant our use of liquid transportation fuels now and help create a more stable energy future. Using our indigenous biomass resources, we can potentially fuel our cars and provide new economic opportunities across the nation." It can be converted to carbon-based fuels and chemicals, in addition to electric power. America's plan to replace 20% of gasoline with biofuels within 10 years has five steps leading from the farmer's field to the consumer's vehicle. Gulf Ethanol's feedstock pre-processing technology fits in the feedstock logistics portion of this plan which addresses transportation, costs and handling of feedstocks.
About Gulf Ethanol Corporation
Gulf Ethanol is an alternative energy company focused on the development of technology for the cellulosic ethanol industry with a particular emphasis on Texas and the Gulf Coast.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipate" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.
Former GFET CEO, Darrel Uselton, set for trial in September. Fellow co-conspirator, Eddie Davidson found dead of an apparent murder-suicide:
http://www.denverpost.com/headlines/ci_9989562
Federal law enforcement and media across the country called him the “Spam King,” a legacy more than a decade in the making that ended with a gunshot Thursday.
After earning millions pushing everything from cheap thrills to penny stocks with anonymous, unsolicited e-mails, 35-year-old Eddie Ray Davidson became a “consultant” to the FBI, giving up names and methods, before he landed in a federal prison camp in Florence on May 27.
Davidson had regular meetings with an FBI agent and his cooperation was “complete, truthful and reliable,” Assistant U.S. Attorney Tim Neff said in court documents.
Besides telling the agents about methods, software and financial transactions used by spammers, Davidson provided information on one-time business partner Darrel Uselton, who is scheduled for trial Sept. 29 in Texas on organized-crime and money-laundering charges.
Uselton and Davidson sold low-cost, high-risk “penny” stocks in 2005 and 2006. Davidson sent thousands of unsolicited e-mails to promote stocks in Uselton interests, Neff said.
In return, Uselton paid Davidson based on sales increases, Neff said. Davidson told agents he and Uselton manipulated stock prices with bogus news releases and announcements.
Davidson had Web-based businesses in Colorado, Ohio and Florida, records show.
Before last year, he had been arrested only once before: a domestic-battery charge in Palm Harbor, Fla., in November 1998, which resulted in a misdemeanor charge on his record.
His 21-month federal prison sentence was the result of a guilty plea to tax evasion and falsifying computer records. He surrendered $714,139 to the Internal Revenue Service.
Prosecutors estimated Davidson earned $3.5 million from 2003 to 2006.
He was a veteran of the game. At just 24 years old in March 1998, Davidson was sued by America Online, which also published an online article calling him one of the country’s “Ten Most Wanted Spammers.”
His pitch for “generic Viagra” flooded America Online’s systems with more than 74 million messages in five months.
Davidson dodged the case and a default judgment was entered in July 2000 for $1.58 million, most of it for restitution from using AOL’s system as an advertising vehicle without paying for the privilege.
Playboy Enterprises sued in 1997 for copyright infringement claiming Davidson used its nude photos on his websites. Playboy got a $120,000 default judgment in 1999.
Another business permutation — Snagster Inc. — was sued in April 2003 by Yahoo. That suit was dismissed.
In 1997 his company was targeted by the U.S. Department of Housing and Urban Development for scamming people into paying $39.95 for a kit that helped them track down HUD mortgage refunds then take a commission for returning the funds to the rightful owners.
Staff researcher Barry Osborne and staff writer David Migoya contributed to this report. Joey Bunch: 303-954-1174 or jbunch@denverpost.com
Hard to believe it was only just a year ago we saw this happend to the CEO of GFET: http://www.oag.state.tx.us/oagnews/release.php?id=2088 and the
subsequent indictment by the SEC: http://www.sec.gov/litigation/litreleases/2007/lr20187.htm
This all happening shortly after the company issued Darrel and his uncle Jack Uselton (http://www.sec.gov/litigation/litreleases/lr18294.htm), approximately 10.9 million shares of GFET at par value (Ibis Energy, Firemark Capital, Tejas Capital, Accelerator Partners, Brazos Capital, and Valores Fund, L.P. - all companies controlled/owned by them). Even after the indictment, JT Cloud and William Carmichael pretended to "buy back" these shares through their controlled company, Galleria Asset Management. They then tried to hide the fact that Useltons were still involved by showing the owner of Tejas Capital and Brazos Capital were run by a Mssrs. Steven Lease and Jim Mobitty respectively, despite the fact that the mailing address still shows up as Uselton's home address.
Notwithstanding the shell game switch on the shares, the company (JT and Carmichael) also issued themselves a hefty portion of shares at par value (10 million to Cloud Management, Oxford Funding, National Health Alliance, Galleria Securities Corp.) on top of the shares acquired from the Useltons.
No worries though, their long time buddies David Mordekhay and Jonathan Gilchrist were also well taken care of by being issued almost 9.6 million shares at par value (The Internet Business Factory and Hepplewhite Corporation).
Not too surprising when they were all fully flush with shares, and despite the arrest of Jack and Darrel, they still went on a spam campaign, issuing false and misleading press releases, highly embellished websites, and a not so independent analyst report issued by Chet Gutowski (co-owner of Gilchrist's Goldbridge Capital and Southfield Energy, both officed in the same office suite as GFET, as well as Carmichael/Cloud's other companies, such as TMDI, OXFD, and AEND 35% owned subsidiary Dynamic Distribution).
The point in rehashing all of this is that the current management of Carmichael has never learned from the litigation issues presented in the Advanced Powerline Case (OTC: APWL - http://dockets.justia.com/docket/court-txsdce/case_no-4:2007cv00356/case_id-489219/) and ongoing issues with the alleged illegal activities with the Alternative Energy Technology Center (OTC: AETE - http://investorshub.advfn.com/boards/read_msg.aspx?message_id=29526247), nor has he learned to cut his ties to the old ways of Uselton, Gilchrist, Mordekhay, and Cloud, as evidence by the recent hiring to the board of Robert Wilson (long time associate via American Security Resources (OTC: ARSC), American Enterprise Development Corp (OTC: AEND), System Management Solutions (OTC: SMSE)and the Professional Directors Institute).
The history is long and consistent with all of these players, supported directly and indirectly by a cast of many (Dino Price, Carly Long, Tyson Rhode, Ben Roberts, Debe Nease, Guttman, Tow, Blumenthal, Pollock, Carroll, and others). The story is pretty much the same - offer a fledgling company the promise of exposure through PR in exchange for large blocks of shares, infiltrate and take over the companies through a Corporate Secretary that can issue even more shares to friends and cohorts, pump up the market through "independent" promotion (OTC Services, Protrading.com, National Capital Trading, etc...), false and misleading press releases, a glossy website filled with factual inaccuracies (in some cases unauthorized by the company), the appearance of liquidity through wash trades in between various controlled family companies, and in the end
the result is invariably the same...a stock price in the gutter, and the bewildered investor wondering how he got into this train wreck.
Still confused? Here is some more supplemental information to help you navigate into the set up that is ongoing: http://www.spamnation.info/blog/archives/2007/07/the_useltons.html
Also:
http://pennystock-fraud.info/news.php/stock/symbol/Darrel%20Uselton/
http://www.rgm.com/articles/stockwatch5.html
Meridian Attorneys Letter Cancelling Agreements with GFET tells the real story;
January 14, 2008
Gulf Ethanol Corporation
1240 Blalock Road
Suite 200, fax: (713) 461-9230
Houston, Texas 77055
Attention: Mr. J. T. Cloud, Chairman and CEO
(By fax and U. S. Mail)
Re: Joint Venture with Meridian Bio-Refining, Inc.
Dear Sir:
This letter will serve to notify you that Gulf Ethanol Corporation is in material default in regard to the above referenced joint venture agreement (dated December 4, 2007) for failure to fund a cash payment of $50,000.00 to Meridian Bio- Refining, Inc. by the end of business on January 10, 2008 as per Article I, paragraph 1.1 on page 1, and also for failure to promptly advance stock shares of Gulf Ethanol Corporation (as bargained consideration) to Meridain as per Article 2, paragraph 2.2, on page 2 of said joint venture agreement. Consequently, you are herein notified that the joint venture is forthwith dissolved the joint venture agreement having been materially breached) and that no further business relationship or legal obligations of any kind now exist between the parties to said (dissolved) joint venture agreement.
Furthermore, in view of the above described circumstances, the tender of an “Intellectual Property and Patent Sublicense Agreement” which was previously submitted in writing to Gulf Ethanol Corporation by Meridian Bio-Refining, Inc., but which sub-license agreement was never signed by Gulf Ethanol Corporation, is hereby formally withdrawn and any offer from Meridian Bio-Refining to license the technologies or intellectual property (owned or licensed by Meridian Bio-Refining) to Gulf Ethanol Corporation is revoked, rescinded, and withdrawn.
Respectfully,
JOHN MICHAEL JOHNSTON
CC : Jonathan C. Gilchrist, Goldbridge Capital, LLC
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