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ZIPG SEC Litigation and Judgement:
http://www.sec.gov/litigation/litreleases/2014/lr23078.htm
I see that the iBox here still has the information about MediaG3 going back to the 2009 announcement of a LOI for MDGC to sell its assets to ZIPG.
http://ih.advfn.com/p.php?pid=nmona&article=37882202
The SEC Complaint against Michael Lee and Zipglobal Holdings, Inc. (ZIPG):
http://www.sec.gov/litigation/complaints/2011/comp-pr2011-251-leezipglobal.pdf
Michael Lee, 51, of Hingham, Mass. (CEO of ZipGlobal), charged with mail fraud and conspiracy to commit securities fraud.
SEC, U.S. Attorney and FBI Announce 13 Charged in Connection with Securities Kickback Schemes
SEC Suspends Trading in Seven Companies
FOR IMMEDIATE RELEASE
2011-251
Washington, D.C., Dec. 1, 2011 — The Securities and Exchange Commission, U.S. Attorney for the District of Massachusetts, and Federal Bureau of Investigation today announced parallel cases filed in federal court against several corporate officers, lawyers and a stock promoter alleging they used kickbacks and other schemes to trigger investments in various thinly-traded stocks.
Additional Materials
SEC Complaint: Edward Henderson and Paul Desjourdy
SEC Complaint: Michael Lee and Zipglobal Holdings, Inc.
SEC Complaint: James Wheeler and Microholdings US, Inc.
The criminal case charged 13 defendants who engaged in criminal activity in the midst of an undercover FBI operation. According to the charges filed in U.S. District Court, the schemes involved secret kickbacks to an investment fund representative in exchange for having the investment fund buy stock in certain companies; the kickbacks were to be concealed through the use of sham consulting agreements. What the insiders and promoters did not know was that the purported investment fund representative was actually an undercover agent.
The criminal defendants include Kelly Black-White and James Prange, both of whom were in the business of finding capital for emerging companies. The civil case names some of the individuals who were charged criminally, and the SEC also issued trading suspensions in the stocks of a number of the companies involved in the criminal cases.
The charges follow a year-long investigation focusing on preventing fraud in the micro-cap stock markets. Microcap companies are small publicly traded companies whose stock often trades at pennies per share. Fraud in the microcap stock markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the SEC.
The SEC suspended trading in seven microcap companies involved in the kickback-for-investment schemes:
1st Global Financial Inc. (FGFB) based in Las Vegas
Augrid Global Holdings Corp. (AGHD) based in Houston
ComCam International, Inc. (CMCJ) based in West Chester, Pa.
MicroHoldings US, Inc. (MCHU) based in Vancouver, Wash.
Outfront Companies (OTFT) based in Fla.
Symbollon Corp./Symbollon Pharmaceuticals, Inc. (SYMBA) based in Medfield, Mass.
ZipGlobal Holdings Inc. (ZIPG) based in Hingham, Mass.
MicroHoldings and ZipGlobal are also charged civilly by the SEC with fraud.
These latest charges follow a series of similar cases filed by the SEC in October 2010 and June 2011 in which more than a dozen companies and penny stock promoters were charged in similar kickback-for-investment schemes.
“The public has a right to invest in an honest and fair market. Companies that agree to pay illegal kickbacks harm investors and undermine fair competition in the markets,” said United States Attorney Carmen Ortiz. “Hard working Americans who invest their savings should not be subjected to backroom deals like those alleged today.”
“We are committed to working with our law enforcement partners here in Massachusetts and around the country to stop abuses in the microcap sector and hold the perpetrators responsible,” said David Bergers, Director of the SEC’s Boston Regional Office. “Kickbacks and phony consulting agreements have no place in the financial strategies of any public company, and executives who engage in this kind of fraud are just selling out their own investors.”
“Boston FBI agents initiated an undercover operation aimed at identifying corporate insiders engaged in illegal investment schemes. No one who is engaged in illegal activity while participating in the markets, including CEOs, traders, fund managers, equities analysts, lawyers and publicists, is exempt from the FBI's scrutiny," said Richard DesLauriers, Special Agent in Charge of the FBI in Boston. "Because the nation's economic security is intertwined with our overall national security, the Boston division of the FBI places a substantial emphasis on investigating white collar crimes. During these difficult economic times, now, more than ever, the well-being of the global economy rests on the diligent enforcement of laws designed to ensure the fair and orderly operation of the capital markets. The FBI will continue to use undercover operations and other sophisticated investigative tools at its disposal to protect the integrity and transparency of financial markets.”
The following individuals were criminally charged today:
Kelly Black-White, 51, of Mesa, Ariz. (Operator of Premier Funding, Inc. and Premiere Services, Inc.), charged with wire fraud.
James Prange, 60, of Greenbush, Wis. (Northern Equity, Inc.), charged with wire fraud.
Michael Lee, 51, of Hingham, Mass. (CEO of ZipGlobal), charged with mail fraud and conspiracy to commit securities fraud.
Edward Henderson, 69, of Lincoln, R.I., charged with wire fraud.
Paul DesJourdy, 50, of Medfield, Mass. (CEO of Symbollon Pharmaceuticals), charged with mail fraud and conspiracy to commit securities fraud.
James Wheeler, 51, of Camas, Wash. (CEO MicroHoldings, Inc.), charged with mail fraud and conspiracy to commit securities fraud.
Steve Berman, 49, of Hillsboro, Ohio (CEO of China Wi-Max Communications), charged with mail and wire fraud.
Richard Kranitz, 68, of Grafton, Wis. (Board Member of China Wi-Max Communications), charged with mail and wire fraud.
JC Jordan, 60, of Cameron Park, Calif. (CEO of Vida Life International, LTD), charged with mail and wire fraud.
Karen Person, 61, of Naperville, Ill. (President of Small Business Company, Inc.), charged with mail and wire fraud.
Albert Reda, 65, of Tustin, Calif. (Treasurer of 1st Global Financial), charged with mail and wire fraud.
Steve Stuart, 48, of Monrovia, Md. (Major Shareholder in ComCam International, Inc.), charged with mail and wire fraud.
Muhammad (“M.J.”) Shaheed, 44, of Houston, Texas (CEO of Augrid Global Holdings Corporation), charged with mail and wire fraud.
Today, the SEC also filed civil charges of securities fraud against Desjourdy, Henderson, Lee and Wheeler alleging they defrauded investors through the use of kickbacks in financing transactions.
If convicted, the defendants charged with mail fraud and wire fraud each face up to 20 years in prison, to be followed by three years of supervised release and a $250,000 fine on each count. If convicted on the conspiracy to commit securities fraud charges, the defendants each face up to five years in prison, to be followed by three years of supervised release and a $250,000 fine on each count.
U.S. Attorney Ortiz; SAC DesLauriers; and Director Bergers made the announcement today. The criminal case is being prosecuted by Assistant U.S. Attorneys Vassili Thomadakis and Sarah E. Walters of Ortiz’s Economic Crimes Unit. The SEC’s case was investigated by Michelle Giard Draeger, Ellen Moynihan, and Marty Healey of the Boston Regional Office.
# # #
For more information about this enforcement action, contact:
David P. Bergers
Regional Director, SEC's Boston Regional Office
(617) 573-8927
John T. Dugan
Associate Regional Director, SEC's Boston Regional Office
(617) 573-8936
http://www.sec.gov/news/press/2011/2011-251.htm
ZIPG SEC Suspension:
http://www.sec.gov/litigation/suspensions/2011/34-65857.pdf
PRESS RELEASE: SEC, U.S. ATTORNEY AND FBI ANNOUNCE 13 CHARGED IN CONNECTION WITH SECURITIES KICKBACK SCHEMES
Washington, D.C., Dec. 1, 2011 - The Securities and Exchange Commission, U.S. Attorney for the District of Massachusetts, and Federal Bureau of Investigation today announced parallel cases filed in federal court against several corporate officers, lawyers and a stock promoter alleging they used kickbacks and other schemes to trigger investments in various thinly-traded stocks.
The criminal case charged 13 defendants who engaged in criminal activity in the midst of an undercover FBI operation. According to the charges filed in U.S. District Court, the schemes involved secret kickbacks to an investment fund representative in exchange for having the investment fund buy stock in certain companies; the kickbacks were to be concealed through the use of sham consulting agreements. What the insiders and promoters did not know was that the purported investment fund representative was actually an undercover agent.
The criminal defendants include Kelly Black-White and James Prange, both of whom were in the business of finding capital for emerging companies. The civil case names some of the individuals who were charged criminally, and the SEC also issued trading suspensions in the stocks of a number of the companies involved in the criminal cases.
The charges follow a year-long investigation focusing on preventing fraud in the micro-cap stock markets. Microcap companies are small publicly traded companies whose stock often trades at pennies per share. Fraud in the microcap stock markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the SEC.
The SEC suspended trading in seven microcap companies involved in the kickback-for-investment schemes:
• 1st Global Financial Inc. (FGFB) based in Las Vegas
• Augrid Global Holdings Corp. (AGHD) based in Houston
• ComCam International, Inc. (CMCJ) based in West Chester, Pa.
• MicroHoldings US, Inc. (MCHU) based in Vancouver, Wash.
• Outfront Companies (OTFT) based in Fla.
• Symbollon Corp./Symbollon Pharmaceuticals, Inc. (SYMBA) based in Medfield, Mass.
• ZipGlobal Holdings Inc. (ZIPG) based in Hingham, Mass.
MicroHoldings and ZipGlobal are also charged civilly by the SEC with fraud.
These latest charges follow a series of similar cases filed by the SEC in October 2010 and June 2011 in which more than a dozen companies and penny stock promoters were charged in similar kickback-for-investment schemes.
"The public has a right to invest in an honest and fair market. Companies that agree to pay illegal kickbacks harm investors and undermine fair competition in the markets," said United States Attorney Carmen Ortiz. "Hard working Americans who invest their savings should not be subjected to backroom deals like those alleged today."
"We are committed to working with our law enforcement partners here in Massachusetts and around the country to stop abuses in the microcap sector and hold the perpetrators responsible," said David Bergers, Director of the SEC's Boston Regional Office. "Kickbacks and phony consulting agreements have no place in the financial strategies of any public company, and executives who engage in this kind of fraud are just selling out their own investors."
"Boston FBI agents initiated an undercover operation aimed at identifying corporate insiders engaged in illegal investment schemes. No one who is engaged in illegal activity while participating in the markets, including CEOs, traders, fund managers, equities analysts, lawyers and publicists, is exempt from the FBI's scrutiny," said Richard DesLauriers, Special Agent in Charge of the FBI in Boston. "Because the nation's economic security is intertwined with our overall national security, the Boston division of the FBI places a substantial emphasis on investigating white collar crimes. During these difficult economic times, now, more than ever, the well-being of the global economy rests on the diligent enforcement of laws designed to ensure the fair and orderly operation of the capital markets. The FBI will continue to use undercover operations and other sophisticated investigative tools at its disposal to protect the integrity and transparency of financial markets."
The following individuals were charged today:
• Kelly Black-White, 51, of Mesa, Ariz. (Operator of Premier Funding, Inc. and Premiere Services, Inc.), charged with wire fraud.
• James Prange, 60, of Greenbush, Wis. (Northern Equity, Inc.), charged with wire fraud.
• Michael Lee, 51, of Hingham, Mass. (CEO of ZipGlobal), charged with mail fraud and conspiracy to commit securities fraud.
• Edward Henderson, 69, of Lincoln, R.I., charged with wire fraud.
• Paul DesJourdy, 50, of Medfield, Mass. (CEO of Symbollon Pharmaceuticals), charged with mail fraud and conspiracy to commit securities fraud.
• James Wheeler, 51, of Camas, Wash. (CEO MicroHoldings, Inc.), charged with mail fraud and conspiracy to commit securities fraud.
• Steve Berman, 49, of Hillsboro, Ohio (CEO of China Wi-Max Communications), charged with mail and wire fraud.
• Richard Kranitz, 68, of Grafton, Wis. (Board Member of China Wi-Max Communications), charged with mail and wire fraud.
• JC Jordan, 60, of Cameron Park, Calif. (CEO of Vida Life International, LTD), charged with mail and wire fraud.
• Karen Person, 61, of Naperville, Ill. (President of Small Business Company, Inc.), charged with mail and wire fraud.
• Albert Reda, 65, of Tustin, Calif. (Treasurer of 1st Global Financial), charged with mail and wire fraud.
• Steve Stuart, 48, of Monrovia, Md. (Major Shareholder in ComCam International, Inc.), charged with mail and wire fraud.
• Muhammad ("M.J.") Shaheed, 44, of Houston, Texas (CEO of Augrid Global Holdings Corporation), charged with mail and wire fraud.
Today, the SEC also filed civil charges of securities fraud against Desjourdy, Henderson, Lee and Wheeler alleging they defrauded investors through the use of kickbacks in financing transactions.
If convicted, the defendants charged with mail fraud and wire fraud each face up to 20 years in prison, to be followed by three years of supervised release and a $250,000 fine on each count. If convicted on the conspiracy to commit securities fraud charges, the defendants each face up to five years in prison, to be followed by three years of supervised release and a $250,000 fine on each count.
U.S. Attorney Ortiz; SAC DesLauriers; and Director Bergers made the announcement today. The criminal case is being prosecuted by Assistant U.S. Attorneys Vassili Thomadakis and Sarah E. Walters of Ortiz's Economic Crimes Unit. The SEC's case was investigated by Michelle Giard Draeger, Ellen Moynihan, and Marty Healey of the Boston Regional Office.
# # #
For more information about the SEC's enforcement action, contact:
David P. Bergers
Regional Director, SEC's Boston Regional Office
(617) 573-8927
John T. Dugan
Associate Regional Director, SEC's Boston Regional Office
(617) 573-8936
maybe a new deal going in here
ZIP will be filing a late 10K.
http://www.sec.gov/Archives/edgar/data/1364436/000114420409034754/v153554_nt10k.htm
ERIE, Pa. - Vice President Joe Biden is scheduled to be in northwestern Pennsylvania to discuss ways federal stimulus funding can be used to expand broadband access to the Internet for rural areas that aren't served by faster connections.
The federal economic recovery act package includes $7.2 billion to expand broadband. President Barack Obama has made improving broadband access part of his objective for boosting the economy by improving the nation's infrastructure.
Biden will speak Wednesday afternoon at Seneca High School near Erie. He'll be joined by Agriculture Secretary Tom Vilsack, U.S. Rep. Kathy Dahlkemper, D-Pa., and others.
http://www.philly.com/philly/wires/ap/news/state/pennsylvania/20090701_ap_bideninwpatodiscussruralbroadbandaccess.html
I have not been able to talk to the opmpamy .
Has anyone doe so with success? Any comments.
Interesting article about the Recovery Act and the '08 farm bill. MDGC already has back-end and CPE hardware.
http://www.cfra.org/ruralmonitor/2009/04/30/rural-america-your-wimax-waiting
I am here as well.
Stingray
I really hope you are joking... I'ld rather find that "other" spread...
thank god for little blue pills....
cheers,
SJ
Hit the Ask SJ!
now the spread is .05 to 3.00
almost as good as my mistress....
cheers,
SJ
Holy Crap, Batman, a trade...
Great spread too,,,, .05 to $1.01
LOL
cheers,
SJ
More like the begging of the middle, or the middle of the beginning. IMHO.
The beginning of the end!
I do not agree, This is just the beginning.
I will be visiting the company as soon as I can. I'm only 45 minutes away. For know MDGC is dead.
ZipGlobal Holdings Signs Letter of Intent to Acquire MediaG3 Assets
May 26, 2009 8:00:00 AM
Email Story Discuss on ZenoBank
View Additional Profiles
HINGHAM, Mass., May 26 /PRNewswire-FirstCall/ -- ZipGlobal Holdings Inc. (OTC Bulletin Board: ZIPG) is pleased to announce the signing of a non-binding letter of intent to acquire MediaG3, Inc. (OTC Bulletin Board: MDGC) broadband LMDS technologies and business. This is the first step in the formal process of aligning the MediaG3 technology into the new ZipGlobal platform. It is anticipated that both companies will move quickly towards a definitive acquisition agreement.
ZipGlobal Holdings, Inc. is a US based Holdings Company whose goal is to build out a full complement of wireless equipment and technologies that will do business with and support the rapid growth of broadband and IP based networks both domestically and worldwide. MediaG3, Inc. is a leading developer of LMDS broadband wireless technology and products.
ZipGlobal Holdings CEO, Mr. Michael Lee comments: "We are excited to have the opportunity to include MediaG3's LMDS technology as part of a new ZipGlobal Holdings growth strategy. MediaG3's patent protected LMDS technology delivers excellent wireless "last mile" access to support the demands of 3G networks and their subscribers in markets worldwide. ZipGlobal has already identified strategic partnership candidates. It is ZipGlobal's definite intention to deliver fully integrated applications and services that will address the needs of current and future telecom and broadband markets. Additionally, ZipGlobal has initiated conversations with several other companies whose products and services can assist ZipGlobal reach our goals. We will endeavor to keep our shareholders fully informed as other opportunities evolve."
MediaG3's President and COO, Mr. Joseph L. Anzalone comments: "We have been working diligently with the leadership of ZipGlobal. Both companies share a common vision in how to effectively pursue the unprecedented opportunities for broadband product and services in both the domestic and international markets. ZipGlobal has identified and is launching initiatives that will bring together complimentary technologies and create the synergies necessary to address current and future demands in the market place. We are excited to bring MediaG3's LMDS technology platform in support of this strategy."
About ZipGlobal Holdings, Inc.
ZipGlobal is a fully reporting OTC:BB company with corporate offices in Hingham, Massachusetts. ZipGlobal previous business has been in telecommunications, payment solutions, and technology based products and applications. The company has definite intention to complete and launch a new telecommunication and technology based platform that will deliver fully integrated applications and services to the current and future telecom and broadband markets.
About MediaG3, Inc.
MediaG3 develops and markets broadband wireless technology products for today's fixed and mobile customers. MediaG3 is developing its integrated business and product lines to offer the best solutions for broadband wireless infrastructures. MediaG3 is based in Santa Clara, California, with an office in Shenzhen, China. For more information on the company, please visit www.mediag3.com.
Forward Looking Statements:
Some paragraphs of this news release, particularly those describing ZipGlobal's strategies and business plans, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1993, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While ZipGlobal is working to achieve those goals, actual results could differ materially from those projected in the forward-looking statements. This could have an adverse effect on ZipGlobal results of operations. In light of significant uncertainties inherent in forward-looking statements included herein, the inclusion of such information should not be regarded as a representation of ZipGlobal or any other person that the objectives and plans of ZipGlobal and its subsidiaries will be achieved.
CONTACT: Michael Lee, Chief Executive Officer, +1-781-556-1062
SOURCE ZipGlobal Holdings Inc.
----------------------------------------------
Michael Lee
Chief Executive Officer of ZipGlobal Holdings Inc.
+1-781-556-1062
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