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Greetings to the longtime GFCI posters.
Good to see you all are getting some of the losses back. I missed the deadline to file. Oh well, more for everyone else right. Just happy to see Dial & accomplice behind bars.
I presume the they're keeping the funds in a money market account. If so the yield is probably around 0.5 - 0.2 % less monthly maintenance fees.
Good luck recovering your losses.
Shell Game: Over 2,000 companies registered out of a 1,700 sq ft house in Wyoming.
http://news.yahoo.com/special-report-little-house-secrets-great-plains-113759191.html
As a FYI NV and WY is a haven for corporate scams, run the other way. These states are more interested in Revenue from fees than the interest of protecting the public.
There were some here that believed GFCI was a long term value investment. One poster even had the audacity to admit that only 4 out of 2,000 Pinksheet companies become successful and make it to a higher exchange in a given year. Then they followed up the statement with "..and we are fortunate enough to be invested in 2 out of the 4...", referring to GFCI and CTBG.
Former CEO of Victory Energy John Fullenkamp is now trying to take his scam across the pond. This guy is worse than Jim Dial.
http://www.greholdingsuk.com/?page_id=6
It sounds like the purpose of the combination is so B can become a trading company. Let's say if A's financial information is all bogus, B can technically write-off all of it and only show B's financial information.
Typically a scam operation would cook their books by overstating the assets and/or understating it's liability. These accounts can be verified (Cash, receivables, inventory, investments, property, equipment, etc.) by going from the financial statement to the source document (bank statements, credit sales invoice, physical inventory count, investment account/contract, property purchase agreement, equipment purchase invoice (+ physical inspection). If it can not be corroborated B would write off the discrepancy (assets do not exist). The liability (payables, notes payable, accrued expenses etc.) review vendor invoice, receiving report, payment schedule, loan documents etc. to see if all the items that are still outstanding are properly recorded.
I still don't understand company B's problem. Wouldn't they have done this before acquiring company A? Why would they purchase something without knowing its true worth? You wouldn't just pay a certain $$$ based on what a seller tells says would you? If the business combination was properly done the audit process should be a breeze.
B2B, how did A & B combine? In order for B to combine with A (through merger or consolidation) the accounting data for both entity has to be known and the two data are consolidated into one financial statement. Assets/liabilities on the books of both companies are remeasured to fair market value and combined. This process would take place prior to any audit. Therefore, to say A is not providing the information doesn't make sense post consolidation.
How significant is A's asset/liabilities in comparison to B? It sounds like B has greater share of asset/liability than A. Knowing accounting data for A is not very critical in this situation. Accounting data can traced back to its source. If A is showing $100,000 in cash on their financial statement, they should be able to corroborate that amount by tracing it to the bank statements, which would total that amount. If they show $2,000,000 in property, plant, and equipment you should be able to trace that amount to various documents that make up the PP & E that would add up to that amount. If there is a discrepancy, then the record should be adjusted to reflect the correct amount. Again, this should have been done during the acquisition phase.
If B is not coming forward with requested documents during Audit, and the information has a material effect on the financial statement, the auditor will first recommend to B the adjustment required to fix this problem. If management refuse to make changes the Auditor will probably issue an Auditor's Report with a "Disclaimer" opinion. Basically, it means the auditor can not comment on the fairness of the company's financial statement because they couldn't get sufficient evidence to render an opinion. Although this is a negative, the financial statement is still Audited at this point.
"in a situation like this a period of time must pass before B can do an audit that does not include A's data."
Again, it depends on how they were combined. I presume A & B becme 1 entity through a merger or consolidation. In which case, both data are combined to become one entity. Technically A's data will always be part of B since they are one and the same. However, once As accounting information is corrected during the combination, it shouldn't be an ongoing issue as long as B is adequately recording the new information.
IMO B isn't being straight forward with the shareholders.
For a company to say it can not because of a dirty shell etc. is just a flat out lie. Any financial statement can be audited. The more likely explanation of not going this step is that they couldn't find an auditor willing to take on the engagement or the results of the audit was negative, therefore it would be better to hide behind the non-reporting requirements as a pink sheet company.
Auditor's job is to renders an opinion on the fairness of the financial statement and financial statement disclosures in accordance with GAAP. Concurrent with the financial statement, the auditor also renders an opinion on the company's internal control.
The Independent Auditor's report, is standard 3-4 paragraphs long depending on the opinion issued. Every sentence in the paragraph is standard wording defined by GAAP. The final paragraph is called the opinion paragraph which states one of 4 auditor's opinions:
1. Unqualified - "Financial statement is fairly stated in accorance to GAAP in all material respects"
2. Qualfied - "Financial statement is fairly stated in accordance to GAAP except for ____ item(s) "
3. Disclaimer - we can not render an opinion due to scope limitation (lack of independence, material information missing, management not cooperating etc..)
4. adverse - "financial statement is NOT fairly stated in accordance to GAAP"
These opinions pretty much covers all possible scenarios.
Auditor's follow the Professional standard promulgated by PCAOB (Public Accounting Oversight Board) REQUIRING they not take on clients where management lacks integrity (not good for many pinkie operators). This can be a major problem for many pinks have problems.
Also Public Auditors are required to report directly with the audit committee (who MUST all be members independent of management) and the board of governors. Since for CTBG, GFCI, their 1 and the same, they will not deal with such an entity that lack separation of duties (no checks and balances).
The excuse given for CTBG audit is B.S IMHO. The likely reason is their inability to find an audit firm willing to engage an audit due to the reputation of the principal (e.g. Jim Dial) and the separation of duties (no independence between management and board.
Assuming such an organization is in place, and integrity of management is not in question, missing statement from a defunct company out of business (shell corp) should never be an issue mainly because they would not have any significant assets or income. In the case of CTBG, the shell company filed bankruptcy before going defunct. There would be no income (P & L) statement for that particular period. Most of what would be on the books would come from CTBG (or the operating company). Even if there was something on the books GAAP would require it be written down due to impairment.
We need to find an attorney that specializes in Securities class action. They will do the due diligence. They may even go after the DTC. Although some individuals may have been hit for a lot of money, overall what was loss from the CTBG debacle isn't all that much so to compensate the victims - make them "whole", wouldn't be all that much. The chances are, DTC would settled for this amount because it would cost many times more to defend it legally. On the other hand, since it is such a low dollar amount, it would be difficult to find an attorney interested in pursuing the case.
Class action will go after the brokerage firms - Ameritrade, Etrade etc. who executed the trade despite getting copies of the court order not to. The entire litigation was about how to resolve the discrepancy and the judge ordered the brokerage houses not to take action until it is resolved. The brokerage houses took action anyways and bought CTBG shares at whatever price it was available at. The brokers can ultimately blame DTC but they are not innocent either.
The victims can require the brokers to restore their accounts to as it was prior to them pulling the trigger. It would be significantly cheaper for them to do so, especially considering the number of brokers involved, than to try to defend themselves in court.
Not sure what to make of the 8K but it sounds like CTBG is going to issue sufficient number of shares to cover the shortage in the CTBG shares. What's done is done. Too little too late I think.
Most brokers covered the short position ignoring the court order not to do so. This has resulted in some disastrous consequences for many shareholders. Wonder if there is enough cause for a class action to recover the significant losses?
zagdad, I can't privately reply. To answer your question, the link is all I found regarding the matter.
Right, that's the guy that was co-habitating with JF per Victory's PR. Putting them in a male prison is like locking up a straight guy in a harem. They should put those two in the women's prison so they can get their daily but whopping Big Bertha and Twana.
Victory Energy...Looks like the SEC filed criminal charges.
Pretty much for running the same pump and dump scam as Grifco. According to the court document there is a shyster name Tim Pinchin that was behind Victory's fraudulent scheme. Didn't he also have ties to Jim Dial & Grifco?
http://www.inthelineofduty.tv/uploads/Plaintiff_Reply.pdf
If Dial & Jarvis goes down I'll be satisfied. If RG and others go down, it's a bonus. If Dial and Jarvis gets off and RG goes down, I will not be happy.
We're not trying to pull his credit report.
Gharani - Giranai??? Considering the name is Arabic and officially written in the Arabic language, it's rather pointless to argue about the correct spelling. It's all arbitrary based on how one thinks the phonetic sounds are best translated to our alphabet. It's like arguing over the spelling of Huang - Wong (both pronounced Wong) or Lee-Li (Both pronounced Lee). Even in our own language there are two different spellings for many of the same surname name e.g. Fisher-Fischer, John-Jon.
Libya was only one chapter in the book of Grifco scams. Lyamec wasn't involved in the final chapter of the Grifco scam which was Adams Ranch play.
Everyone got scammed by Grifco, who gives a F#$% about Lyamec.
Like I said I'm familiar with guys like RG. A typical ambitious unethical hustlers low on ethics and business knowledge to get things done the right way. They like to make gross exaggeration about their ability and accomplishment. These guys are just sociopaths with a false sense of self.
If Lyamec was just in it for the scam they wouldn't have repeatedly demand Grifco move up to a higher exchange. They wouldn't of publicly fought over the details through the PR. When they gained control over GOTL they would have RM into a Nevada shell and started dumping millions of shares on false PRs. All the PRs naming Lyamec was released by Grifco.
The Grifco tree may have bore a lot of rotten apples but the root of the tree is Dial and Jarvis. I can't be overly concerned about every other underlyings that may or may not have benefited from the scheme. It was good to see Useltons and GGI get prosecuted. However, the news of Dial & Jarvis getting indicted is 100x more satisfying.
A lot of foreigners use aliases and fictitious names.
Lyamec is a properly formed LLP which indicates their primary business is providing a service. Since they are not a Public company they are not held to standards set by the SEC.
What is the purpose of GOTL? Who are they scamming? They're not selling any stocks to anybody. So why have a fictitious website? What is the benefit? Who are they hurting?
In the United States all that is required to form a legal business is an address, Tax ID #, registration with the Secretary of State and pay taxes & fees. So in the legal sense Lyamec is legitmate & they do exist.
It's possible that RG Raymond may have participated in Grifco p&d scam to the extent Dial and Javis allowed. Dial & Jarvis was the main perpetrator and they did what ultimately benefited themselves.
I know a few RG Rayomond types that go around representing themselves as a head of a multi national organization with number of employees. In reality, a one man operation that mainly making money by brokering/networking 2 parties together to effect a business transaction.
I don't see any benefit in Lyamec being part of the scam. They weren't named in the FBI filing and they are not a public company. Lyamec is still keeping up with all their State filings. The website for for Global Oil Tools Libya is still working. Unlike Grifco's 1 man officer roster, the list of officers for GOTL includes Barnhill and a few other individuals. GOT is a private company so they're not scamming the public with worthless penny stocks.
Lyamec's website is still up and looks like they're still updating the content. I never considered them a scam.
Fairness hearing allows the court to listen to the parties affected e.g. SH, Grifco, DTC, CTBG so they can get a better understanding of the issue and decide on a proper resolution. The filing outlines the possible remedy such as CTBG issuing additional shares to satisfy the distribution to those SH who still have not received their proportionate share. I doubt if they're going to adjust the distribution back to 1.89/1. I think they just want to make sure everyone receives the 1.29/1 shares as some had not received a single share.
It would probably be helpful if those who were adversely affected with huge losses to testify. The court needs to know that the problem is beyond a few people not getting distribution. Some people were literally wiped and suffer dire consequences of the botched distribution. I can't say they will do anything about it since this issue wasn't in the original complaint but it will certainly influence the final settlement. It may also lead to a cause for a SH lawsuit against Grifco and DTC.
It also sounds like CTBG will remain a pinksheet instead of moving up to a higher exchange as planned.
Just to pass the time, here is a review of Tomball Bowling Alley owned by John Jarvis. I suppose this is one of the places where some of the shady deals were discussed between Dial, Newman, and Jarvis. Not really surprised by the negative review.
http://www.yelp.com/biz/tomball-bowling-center-tomball
2 out of 5 stars
Not particularly enthusiastic about the lane quality, staff quality, food quality....well the overall quality of this establishment. I wish I could actually be surprised I recall seeing 'under new management' signs up at least 3 times in the 6 years I've lived here.
It is clear they want money only and have not figured out taking care of the reason people are there in the first place - bowling - i.e. the lanes and the pits is how you do that.
The lanes are horribly cleaned/waxed. The pits are full of debris that sticks to shoes and gets carried onto the lanes. And when you draw their attention to this they act as if you sprouted 18 heads and are speaking a foreign language.
The food is insanely overpriced and worse than the nastiest fast food place I've ever eaten in.
I realise I am biased after decades of Palace Lanes, but as far as I am concerned they should be the standard and not the shining star.
I've been to Tomball Bowl twice - hoping the second time things would be better but alas no.
If anything BBB did for Dial is to extend the optimism on the board. Whenever doubtful situations arose BBB would find the silver lining and many people here bought it hook line and sinker. Dial should be kissing BBBs feet.
good for you.
He didn't pay cash for Global. It was all paper trading and who knows how it was structured (bought majority interest, or a interest in the Libya division etc). Part of the deal was that GFCI go public on a higher exchange like AMEX so it was predicated on certain amount of performance/stock appreciation. Since JD couldn't meet the conditions the deal never got finalized.
At this point we can't rely on any JDs PRs.
That could be the Lois Newman. Although the link doesn't give her location, some of her friends list Conroe, TX as their location. I don't know if that's the John Jarvis. He looks awfully young. It may be JJ Jr. I thought the John Jarvis was Nick's father. John Jarvis on her profile looks like he could be one of Sopranos henchmen.
I remember that Nick Jarvis was building a 14,000 sq ft home a couple of years ago. He was a CEO of some type of "green" construction company. Of course it was probably another sham. We also know that story about Jarvis ripping off that congressman who started the security business. Jarvis talked him into going public.
Even if Jarvis was the mastermind and he coerced Dial into doing a lot of it, Dial would still be guilty IMO.
BTW, didn't someone say Lois was Jarvis' mother in law?
Swinford told one investor that he felt Lois was there to keep an eye on things for Jarvis.
Perhaps, but Dial is the one that executed and managed Grifco. He was the face of the scam. He had the ultimate authority to say yay or nay. Regardless of what Lois or John Jarvis may have suggested to him Dial had the power to stop it or proceed. I think by his stature in the company he's responsible for the lion's share. We already see he profited handsomely from all of it.
Yeah, more than likely one of them will rollover and sell the others out. Jim Dial is the mastermind of this operation as he was the CEO, Board, and Mr. Everything. He should not get any type of deal cut.
Lois Newman didn't have a direct involvement in the management of Grifco but I don't doubt for a minute she profited from the scam. The other missing names are Mike King, John Jarvis, Dolkhart, Ed Leonard and Ryan Kirch. BBB had a link to Mike King's radio program where he the idiot hosts were spouting off about how Grifco was worth $4+ dollars a share.
LOL, at least they're educated. As opposed to Palin ( 7 years and 3 community colleges later got a degree in journalism), Limbaugh (flunked out of SE Missouri State freshman year), Beck (2 stints in rehab for alcoholism and marijuana). These are the all knowing chosen ones on the right?
Listening to these guys disseminate complex issues is like going to Granny in Beverley Hillbillies for brain surgery.
Now back to Dial.
I lived out of the country 19 years and grew up under DOD medical plan and an option for Japanese medical plan. My mother was a Japanese national after a series of a stroke and aneuyrsm she passed away in Japan 15 years ago. She spent her final 6 months in a Japanese hospital. She was under the care of the Japanese medical care despite having the U.S. medical option through my father. The base hospital suggested to my father she would be better off in a Japanese facility. They could have sent her to the stateside for care. There was nothing inefficient or 2nd rate about the care she received or its process. There was no long waiting list nor did my family bare any financial burden for the final cost. It was government run healthcare. In fact, they even delivered a monthly check to cover her incidental household expenses during her illness. I never new any Japanese national complain about healthcare. None! Having grown up there as a military brat I had first hand experience with both systems. People have their story about the "other countries" but this is my first hand story.
Second, healthcare policy is not going to kill innovation. That doesn't even make sense. Healthcare industry needs more efficient ways and better technology & delivery systems. On the countrary overhaul would encourage more innovation. Computer/technology prices went down significantly since 1980s yet the technology is hundreds of times better than what existed back then. Did the competition & price reduction stifle technology???
This is why I get somewhat vocal about this type discussion because of lot of what is said just does not make any sense. It's like listening to the same nonsense spewed by the 3 right wing stooges - Palin, Beck, and Limbaugh. This is the last I'll say anything about it as IHUB isn't a forum for political discussion.
B2B
Since there is so much misinformation in efforts to kill the bill he has to keep re-selling/re-assuring the public on the fact vs fiction.
The healthcare bill is developed to be introduced incrementally. Some aspect of it like giving tax credits to a certain segment of population to purchase health insurance won't go into effect until 4 years from now. All provisions doesn't go into effect immediately.
Yes, left wants fiscal responsibility & less government intrusion. If you have doubts ask one of them. After all, who in the right mind doesn't want that? Fact - left has shown more fiscal responsibility than the right. Right talk about it all the time but look at the record. Deficit tripled under Reagan and doubled under Bush. It decreased under Clinton (while he governed more from the center).
In 2007 11% of federal budget was to pay the interest on the Federal Debt. It is the 4th largest federal government expenditure. $5 trillion of the $9 trillion deficit was from unfunded 2004 tax cuts and unfunded Medicare B supplements. Obama Administration inherited $52 trillion in unfunded obligation from SSI and Medicare on the Federal Balance Sheet. Let's not be so quick to blame him for all the financial woes.
Only reason the government created the SEC, Sherman anit-trust, Glass Stegall, Sarbanes Oxley etc. is in response to bad behavior of entities in a less regulated environment. Put it simply, there was 0 crime we wouldn't need law enforcement. Also consider that the reason why US has the most desirable capital markets attracting foreign investment is because of the regulation and high accountability standards. Get rid of most of it, we might as well be investing in Libya. Foreign investors will pull out of our markets and put there money elsewhere that provide them with better assurance. Then just watch the dollar free fall. Most economic crisis is a direct result of de-regulation - S & L crisis, Enron/Worldcom scandal, Financial market crisis, Housing crisis. Regulation is a double edge sword.
I never heard the story about the 3,000% nonsense and I wouldn't buy such claim for a minute if I heard it. According to the math I was taught I can't see any cost going dow less than 100% = 0. Cost can go up unlimited number of percent but it can't go down more than 100%.
You can argue about it all you want. The fact is doing nothing is not an option. OMB, most Economists, and all 3rd party experts believe Healthcare cost is the single biggest issue that can bankrupt the federal government. The Dems wanting incorporate their ideal about covering the less fortunate is one argument, but the fact is something has to get done to control the rising cost.
Where US ranks in education, healthcare, personal income etc. is not based on my hubris conviction that it is so because it's what I so believe. It's based on research and studies conducted by respectable organization.
B2L, my opinion is based on recent experience with a similar case I was involved as a plaintiffs in a class action suit against a shady derivative brokerage house. The suit lasted over 3 years and was settled December 2009. The defendants settled with Federal prosecutor for $5.6 million in fines and restitution. When I followed up with the attorney a few weeks ago regarding the settlement he told me that the Treasury department is reviewing the assets of the 3 defendants. He said "I'll be honest with you, in most of these cases we rarely find any assets". So in short, we got the settlement we wanted on paper but in reality we got nothing but a moral victory.
Also keep in mind the Bowling Alley is owned by John Jarvis so that won't be an asset the State can claim. As for the strip club, condo etc. it depends one how much equity they have as its quite possible they have a mortgage against the asset. As I recall GGI supposedly loaned JD $400K to purchase the strip club. Also, some of the assets can be held in a trust in which it would be very difficult to get to. As shady as these guys are I'm sure they're a step ahead of the law when it comes to hiding assets.
It looks like the authorities are charging them with securities fraud. Once they are found guilty of securities fraud they can prosecute them under Racketeering Influenced Corrupt Organization Act (RICO). In oder for a business to be prosecuted under RICO they must first be found guilty of securities fraud.
The recession in 2000 was very mild. It was largely due to the backlash of dot com bubble. Once again, a failure of businesses largely due to deregulation. Clinton did partake in a some of conservative agendas but IMO that's the difference between pragmatism - doing what's best versus idealism - adhering to political philosophy despite its practicality. I don't think Bush was stubbornly idealistic but he was largely influenced by his inner circle like Cheney, Rove and Rumsfeld there were idealouges.
Glad to see authorities taking action. What Jim Dial did was so obvious. I'm sore JD and gang felt the heat coming and found ways to hide some of their ill gotten gain. I was told by one attorney who prosecute these type of cases that eventually the defendants will settle or plead guilty for millions on paper but very rarely would there be any assets to pay the fine or restitution.
At the very least I hope Jim Dials dirty laundry gets aired out in his community. Let his family suffer the shame and humiliation. Let him get some hard prison time locked in a cell 23 hours per day with a horny bunkmate named Buba.
"When things really fall apart I think the Nation will turn hard Right - guess we'll see"
Yeah it looks that way since hard right seems to be the ones making all the noise these days. What they fail to realize is that everyone from left to right want fiscal responsibility and less government intrusion. The current problems didn't start with Obama, he inherited it yet the right want to attribute all of it to Obama.
In the 20 of the past 29 years we had a conservative administration - Reagan, Bush I, Bush II. Reagan tripled the deficit, Bush II doubled the deficit. The only President during this time to actually reduced the deficit and created a surplus was Clinton.
As for healthcare there are 2 options - do nothing and let it get worse. Do something and stop the bleeding. The latter would cost much less than the former. The tactic used by the right & healthcare lobby are the same tactics used 16 years ago against Clinton's initiative. The healthcare reform should be a bipartisan effort but unfortunately one side is hell bent on killing the bill through fear and misinformation. How can the other side seek middle ground?
Hats off to former CIGNA executive Wendell Potter for blowing the whistle on his former colleagues. 16 years ago he was the industry executive who led the coalition that successfully killed the last attempt at for a healthcare bill.
We are the only country in the world with a for-profit healthcare. According to WHO we spend $4,187 per capita on healthcare and ranked 54th in the world healthcare in financial fairness of healthcare received. We are ranked 24th in overall healthy among developed nations. Ignore the problem now and like the deficit it would be much worse a few years from now. The right with a presumption of America being #1 in everything need to get a grip on reality.
Rex, I saw exactly how profitable those wells were by looking at Victory Energy's financial statements who also scammed people with Adams Ranch. They were stupid enough to make quarterly filings until the last audit discovered a lot of misstatements. So much so that Victory went from .ob to .pk and basically disappeared.
Victory was generating about $60K - $100K in revenues quarterly at an expense of $1+ million. There were doing this around the time gas was selling for around $6/unit. So even if gas prices tripled or quadruple they still wold have been in deep caca.
The accrual accounting the O & G business uses to match income and expenses doesn't give a realistic picture of how much cash they are burning up front. Exploration & drilling cost, which run in the millions, are all capitalized as an asset on the balance sheet. They are slowly expensed as a depletion expense against the quarterly operating income. IMO, it would be better served to look at the Statement of Cash Flows - Operating Cash Flow when evaluating a small time operation.
Victory Energy for example had $4 million in capitalize cost for Adams Ranch...that's $4 million they spent up front. Making $60K - $100K per every 3 month isn't going to help very much in paying down that cost.