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IMO, it appears to me that the judge asked both sides to provide more information - in letter form, due in 1 week. Plaintiff attorneys need to supply additional information to clarify jurisdictional issues (i.e. where events occurred). Defendants (LG) need to supply information on all members of the LLC
For 10 years, this judge handle criminal matters for the DOJ in NY.
Interest in excess of allowed statutory rates are both a civil and a criminal matter in NY
IMO, it looks like the judge simply wants to dot all of the I's and make sure everything is being heard in the proper courtroom and find out exactly who are all of the players on the Defendant side. I think he knows how serious this could become for the Defendants (LG) and that a lot of eyes are watching
https://www.pacermonitor.com/public/case/44817771/Securities_and_Exchange_Commission_v_LG_Capital_Funding,_LLC_et_al
Here is the case we should be watching.
Very unlikely the judge in the VNUE vs LG Capital matter will render any significant ruling in this case (IMO) before the judge rules in the above case - SEC vs LG Capital. LG has filed a Motion to Dismiss in this case.
If the judge rules in favor of the SEC (subject to appeals of course), then the toxic lenders are out of business and those that helped them plays their games need to worry about being fitted for ankle bracelets (IMO).
Ben, I seriously doubt that Klug is coming back to the OTC Pink.......but I can guarantee you he will take more than a pound of flesh on his way out of the door......
Just 6 more days for the first toxic lender court hearing.
As I understand, Klug has decided to let Andre Toce handle the Jane/John Doe video depositions. I am going to try to get the distribution rights to each Jane/John Doe video. I wish I could get my hands on the Schreiber deposition where he admitted to committing perjury.
My understanding is that Jeff Landry and his office is already involved with RedHawk claims against one of the toxic lenders.
All expense paid "vacation" to Angola (and not the country)
Lawyer-up
Has anyone else noticed that the outstanding share count has not changed since September 2021? Has anyone taken the time to read the past financial statements and review the outstanding share count that the last small amount of toxic debt was NOT converted to shares when it was schedule to do so?
I wonder if the SEC investigations of the toxic lenders was already in process in September/October 2021 and the Company's legal was already working with the SEC on these investigations and that's why conversions didn't occur? Or did everyone simply ASSUME the debt was paid off.....it wasn't - I asked. Under current settlement agreements with the SEC, all toxic lender conversion rights are cancelled.
Wasn't this about the same time the company moved to the Expert Market so only Accredited Investors could trade? SEC investigations are SLOW.......
I've been told the Company is and has been working with the SEC on ongoing investigations of certain toxic lenders, that the SEC is aware the Company's financial statements are prepared. At the Company's request, the SEC is looking into RedHawk stock trading before and after the Company moved onto the Expert Market.
So, perhaps the Company is simply waiting for these initial toxic lender court hearing to be completed very soon, more toxic lender lawsuits to be filed very soon, "critical market" information is released to the market through the issuance of 8Ks, subpoenas are issued (lawyer-up if you're expecting a subpoena), and Klug has decided if/where he wants the stock traded.
Klug has been meeting all day with local litigation counsel.
How do I know all of this information - I ASKED!!!
"Cow" this is for you - my ONE allowed post of the day......my understanding is that there are at least six toxic lender targets with question marks on two more where the company previously entered into litigation settlement agreements (EMA and Auctus).
Two lawsuits have already been filed - RedHawk is already a lead Plaintiff in the Crown Bridge lawsuit and expects to be added as a lead Plaintiff in LG lawsuit after the November 8 scheduling conference. My understanding is that these toxic lenders are by far the smallest of the Company's USURY claims but even those total more than $200,000 ($600,000 if they prevail on treble damages). So, I would expect back of the envelope estimated USURY damages to be about $1.5 million to $2.0 million (3x that amount with treble damages).
In addition to The Basile Law Firm, my understanding is that RedHawk has now engaged the Toce Law Firm as a special advisor in these class action lawsuits. Toce has substantial class action experience and Andre Toce was the Company's attorney that had Schreiber admitting he had committed perjury in his deposition.
You are correct, Dog. Not sure about future legal actions as there are probably more ongoing investigations by the SEC but these first two suits are all about damages - RICO vs Usury. The SEC has already proven the Lenders did not have Broker-Dealer Licenses. So, its all about how many $$$ they owe the borrowers. The Company is following the work already done by the SEC. Now, you can bet the Defendants will file Motions to Dismiss and if they lose, the amount of settlement $$$ goers up substantially.
Two already filed
Two more noticed today
Two more coming - I understand both are big $$$
Forthcoming RICO and Usury Litigation Hold Notices Issued today to:
- JSJ Investments, Sameer Hirji and David Hirji
- Bellridge Capital and Robert Klimov
One would be naive to think that simply because offshore naked shorting is not permitted that it doesn't happen
Another "shoe" is scheduled to drop this week.......I believe this one may be in the Lone Star State where the maximum interest rate on these notes is 10%.......lawyer up Boys and Girls......
My understand is that RedHawk's calculated toxic lender usury claim (before treble damages) totals about $1.8 mil........not sure what part CB and LG fit in there but I do know the big toxic actions are still to come.......Klug and his legal are simply letting SEC Enforcement do all the dirty work for him......lawyer up Boys (John Doe) and Girls (Jane Doe)......
RICO class actions filed against Crown Bridge......RICO class action against LG Capital already filed.......time to lawyer up Guys and Gals.......subpoena's could be going out soon
Litigation attorneys are currently coordinating the filing each lawsuit and/or amending currently filed lawsuits to add RedHawk as a lead plaintiff.
I would expect an 8K will be filed as each lawsuit is filed and/or amended
And he spilled his guts in a "mea culpa" email to Klug.......I would expect all will be able to read that email as an exhibit in a future filing of some sort...
What you don't understand is that Klug doesn't need to "get current" to pursue these legal remedies.
He can simply take the company private, follow the lead taken by the Regulators against these toxic lenders and corrupt Market Makers, settle the litigation, re-register and come back onto a new exchange.
All prosecution legal fees are on a contingency basis
There is no guarantee that a successful settlement will result in the return of shares but, if the settlement is only $$$, it would not surprise me to see Klug use the $$$$ paid by the toxic lenders in a settlement, to be used to re-purchase shares
Most people don't know, because he doesn't disclose it in his bio, that when Klug opened his CPA practice with his colleague from Big 4 accounting, it was during the first oilfield crash of the mid 80's.
All he would represent was debtors in bankruptcies or debt restructuring. Owners that worked their entire lives to fulfill their dreams only to be attacked by creditors with deeper pocketbooks and refused to work with these business owners. He refused to to work for Banks and or Lenders.
He is not intimidated by the size of a Goliath or the depth of their pocketbooks
In New York, a RICO lawsuit has already been filed against LG Capital.....my understanding is that RedHawk has agreed to join that lawsuit as a Plaintiff sometime in September. The SEC filed toxic lending security violations against LG in June 2022
Seeing that Crown Bridge has been slapped by the SEC for similar toxic lending security violations, it would surprise me if a RICO action against CB is next
A little more than 880,130,000 shares
And remember, RICO carries treble damages
Yep, Regulators are engaged.......RICO lawsuits are already filed.........more to follow.......Klug wants $$$$$ and all of the sold stock returned
The Litigation Team
Swiecicki & Muskett
The Basile Law Firm
Toce Law Firm
Just pull a BrokerCheck on Ramson and his partner, Harry Datys
Nothing was disclosed to RedHawk
After reading, then again ask your question if they are or if they should be worried
Yes........and I told everyone last week that I thought Klug was going for the throat on this Jane & John Doe and OTC crap.......I also believe an earlier 8K spoke about the Company was looking to engage NY litigation counsel to pursue these people........expect very serious class action litigation to be filed, expect SEC to drop more bombs on this toxic lending market, and expect more heads to fall......
As I understand, the NY courts have ruled profits from the stock sales should be considered additional interest which in most instances pushes returns well beyond usury limits - and NY has both civil and criminal usury
Hmmmm.............this is probably just starting....long overdue........next they need to focus on the Market Makers and those Jane and John Doe's that facilitate the actions of these crooks (IMHO).......
SEC Charges Convertible Note Dealer and Its Long Island-Based Owners for Failure to Register
Litigation Release No. 25461 / August 2, 2022
Securities and Exchange Commission v. Crown Bridge Partners, LLC, Soheil Adhoot, and Sepas Ahdoot, No. 1:22-civ-6537 (S.D.N.Y. filed August 2, 2022)
The Securities and Exchange Commission today announced settled charges against a convertible note dealer, Crown Bridge Partners, LLC, and its managing members, Soheil and Sepas Ahdoot of Great Neck, N.Y., for failing to register with the SEC as securities dealers. As part of the settlement, the Ahdoots and Crown Bridge agreed to pay more than $9 million in monetary relief and to surrender or cancel securities of 82 different issuers they allegedly obtained from their unregistered dealer activity.
The SEC's complaint, filed in the U.S. District Court for the Southern District of New York, alleges that, between January 2016 and December 2020, Crown Bridge purchased about 250 convertible notes from 150 microcap issuers, and converted the notes into 35 billion newly issued shares of stock at a large discount from the market price. It then allegedly sold the newly issued shares into the market at a significant profit. As alleged, neither Crown Bridge nor the Ahdoots were registered as dealers with the SEC or associated with a registered dealer, as their activities required them to do.
Without admitting or denying the allegations, Crown Bridge and the Ahdoots agreed to be permanently enjoined from further violations of Section 15(a)(1) of the Securities Exchange Act of 1934, to pay disgorgement and prejudgment interest of $8,390,601.27 and a civil penalty of $810,307, and to a five-year penny stock bar. Crown Bridge also agreed to surrender all conversion rights in its currently held convertible notes, surrender all unexercised warrants that it acquired in connection with convertible notes, and cancel any shares it holds that were acquired by converting notes or exercising related warrants. The settlement is subject to court approval. Finally, Crown Bridge and the Ahdoots consented to the entry of a Commission order imposing a five-year collateral bar to be obtained in a follow-on administrative proceeding.
The SEC's investigation was conducted by Elliot Weingarten, assisted by Suzanne Romajas and Robert Nesbitt, and supervised by Fuad Rana, Carolyn Welshhans, and Mr. Cave.
Domino's are starting to fall
SEC Sues New York Based Firm and Its Managing Member for Acting as Unregistered Securities Dealers
Litigation Release No. 25410 / June 7, 2022
Securities and Exchange Commission v. LG Capital Funding, LLC., and Joseph I. Lerman, et. al, 1:22-cv-03353 (E.D.N.Y. filed June 7, 2022)
The Securities and Exchange Commission today announced charges against LG Capital Funding, LLC ("LG Capital") and its managing member Joseph Lerman of Brooklyn, New York, for failing to register as securities dealers with the SEC. LG Capital and Lerman allegedly bought and sold billions of newly-issued shares of microcap securities, or "penny stocks," which generated millions of dollars for LG Capital and Lerman.
The SEC's complaint, filed in the Eastern District of New York, alleges that between at least January 2016 and December 2021, LG Capital engaged in the business of purchasing convertible notes from penny stock issuers, converting the notes into shares of stock at a large discount from the market price, and selling those newly issued shares into the market at a significant profit. LG Capital allegedly purchased over 300 convertible notes from more than 100 separate issuers and sold more than 22 billion shares of newly issued penny stock into the market, generating sales proceeds of approximately $30 million and net profits of approximately $20 million. As alleged, neither LG Capital nor Lerman were registered as a dealer with the SEC or associated with a registered dealer, in violation of the mandatory registration provisions of the federal securities laws. By failing to register, LG Capital and Lerman avoided certain regulatory obligations for dealers that govern their conduct in the marketplace, including regulatory inspections and oversight, financial responsibility requirements, and maintaining books and records.
The SEC's complaint charges LG Capital and Lerman with violating the registration provision of Section 15(a)(1) of the Securities Exchange Act of 1934, and charges Lerman with violating Section 20(a) of the Securities Exchange Act of 1934. The SEC seeks a permanent injunction, disgorgement of ill-gotten gains plus prejudgment interest, a civil penalty, a penny stock bar, and other equitable relief. The complaint also names as relief defendants LG Capital's two other members, Daniel Gellman and Boruch Greenberg, and LG Capital's primary employee, Eli Safdieh, who all allegedly received illicit proceeds from LG Capital and Lerman's violations.
The SEC's investigation was conducted by Elliot Weingarten, assisted by Suzanne Romajas and Robert Nesbitt, and supervised by Fuad Rana and Carolyn M. Welshhans. The litigation will be led by Suzanne Romajas and Elliot Weingarten, and supervised by Melissa Armstrong.
Klug has well over 350 million shares of stock.......so, he is watching out for all stockholders - he has the most to lose if he is wrong.......IMO, Ben is right on point.......SNDD is going to trade again but it just might not be on the OTC......
Agreed, Ben........I could be wrong but I just don't see the Hawk coming back onto the OTC.......in fact, my understanding is that Klug wants a pound of flesh before he leaves the OTC......the word is that RedHawk is one of the lead Plaintiff's in the first of several Class Action RICO lawsuits being filed soon against some of the people the Company "met" on the OTC.....he wants $$$$ for damages incurred.....RICO by definition is treble damages.....
RIO, the Company filed for patent protection for the new SANDD Pro technology and for new safety technology updates to the SANDD mini technology in mid-2021 (I believe that's the timeline).
When issued, the life of the patent will be for 20 years from the date of filing. So, assuming the mid-2021 timeline is correct, the remaining patent protection on the proprietary technology will be 18+ years.
A royalty stream could be a huge RECURRING cash flow influx for RedHawk to build upon and thus help establish RedHawk's valuation.
Klug understands how challenging will be the worldwide distribution of a complete line of SANDD products. So, rather than building a distribution staff and team of hundreds and hundreds of employees, he may simply focus on the valuation of the IP, maximize recurring cash flow (18+ years) and leave the worldwide distribution to a group with much deeper pocket-books and systems in place - just IMHO
Valuation becomes easy at that point - the value of the Company is the value of the IP
The Disintegrator is the original technology Klug purchased in 2015.
The original technology was limited to incineration of insulin needles - small needles used primarily for home use - diabetics
The patented Pro technology is now capable of the incineration of much, much larger needles used in hospitals, clinics, for vaccines, flu shots, for blood draws, for tattoo, etc.
Klug's primary focus right now is on marketing the product - SANDD, the business and establishing future cash flows.
He and his team have been blocked from the market for the past 2 years but they are now able to go back on the road and demonstrate the unique technology the company owns.
He is constantly being told the same thing - "Where has this technology been? I've never heard about this before."
And it's patent protected so, he knows what he has and the current stock price is of little concern to him. He is focused on bringing the product to market and the stock price will take care of itself
IMO valuation will be based on future recurring cash flow. If you are looking back (TTM), you are looking into two lockdown years where the Company's key customer base - hospitals, clinics and schools were shut down. And its not over, here in Louisiana we are starting to see people in offices with masks again.
Higher multiples used for TTM (trailing 12 months).
Lower multiples used for projected 12 months.
That is why recurring vs non-recurring revenues are so important.
Valuation multiples (6x - 14x) are generally based on EBITDA, not Revenues
A new name and/or symbol change is applied for through FINRA.
In the application, a Company can request the three (3) symbols (and the Company originally requested HAWC as the symbol HAWK was not available).
While a Company can make the request, FINRA ultimately decides on the symbol issued
So, it is FINRA who decided on SNDD as the Company's trading symbol.
https://www.oklahoman.com/story/business/2022/02/20/oklahoma-medical-marijuana-prices-fall-lost-business-flat-revenue/6720086001/
This article may help explain why Klug is moving so slow on closing the Oklahoma marijuana acquisition
In short it says product sale prices have dropped more than 50% in the past year
And should the Company announce in the near future that "revenues under contract" were met, then what.....
Yep, and very soon much will be going on "in front" of the scenes
Its time for transparency