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Here are some excerpts from a recent Investor Alert issued by FINRA, the Financial Industry Regulatory Authority.
FINRA is the largest independent regulator for all securities firms doing business in the United States. We oversee nearly 4,435 brokerage firms, 161,450 branch offices and 630,155 registered securities representatives. Our chief role is to protect investors by maintaining the fairness of the U.S. capital markets.
[Note: Gold is used here as an example but this warning could apply to any mining/oil exploration scam.]
Some Investments Mine Your Pocketbook
The price of gold bullion—which recently touched an all-time high—has sparked considerable interest in gold investing, not to mention aggressive marketing and advertising of gold investments, including gold stocks. And even a cursory Internet search will pull up numerous websites, blog posts, investment newsletters and social media posts. But some of the stocks and opportunities being promoted have precious little value, and others are outright frauds.
Spotting "Gold" Stock Scams
Many gold-related investment scams involve the stocks of gold mining and/or exploration companies. The stock value is often based on gold reserves that are difficult to estimate, much less verify. While stock promoters regularly cite the potential value of a gold reserve, some statements can be deliberately misleading. For example, in 2010, the Securities and Exchange Commission (SEC) took legal action against a mining company based in Florida for false press releases and other misleading statements associated, in part, with a mining project in Ecuador. The releases claimed the gold reserves were worth more than $1 billion. The SEC noted that the exact value of those reserves could not be known “without further detailed exploration.”
Some things to keep in mind.....
Predictions of swift growth. These predictions often are based on gold reserves, the actual existence and true size of which are next to impossible to verify.
A rise in gold prices does not guarantee a rise in the price of a gold company’s stock—there might be little or no correlation between these two things.
Speculative claims based on a new reserve’s proximity to an existing reserve. Without more information, such an assertion amounts to little more than idle speculation.
Note: For "gold", you could just as easily substitute platinum, diamonds, iron ore, even barite.
Wow, you asked some interesting questions but I see you asked these questions of another poster named Bonnie on another board. As a gentleman, I always allow the lady to go first. So we must wait for Bonnie to answer first.
While we wait, I have a question for you. Why do you think Haliburton and all of the Zimbabwean and South African mining companies passed on the property?
Have a nice weekend.
Clarifications
1. "positions in companies with no actual operations that only existed on paper"
Not illegal but dishonest and misleading to use it as one's bona fides.
Bona fides: evidence of one's qualifications or achievements —often plural in construction.
2. The first complaint asserted one count under the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. ? 1962 ("RICO"), one count under the Securities Exchange Act of 1934, 15 U.S.C. ? 78j(b) and Rule 10b-5, 17 C.F.R. ? 240, 10b-5 ("10b-5" or "Section 10(b)"), and seven counts under state common law.
Defendants moved to dismiss all of the claims asserted against them the Defendants argued that the circumstances of fraud were not pled with sufficient particularity.
The judge considered the Defendants' arguments sufficiently compelling that he summarily dismissed the complaint in a single-paragraph minute order. [NOTE: A "Minute Order" does NOT an indicator of "record time". A Minute Order is a legal document which is recorded in the minutes of a court session rather than in formal court order format.]
The judge dismissed the first complaint summarily, without prejudice allowing the plaintiff to file an ammended complaint. The amended complaint set forth one count under RICO against all Defendants, one count under Section 10(b) against Defendants Stevens and Bruce only, and eleven counts under state statutes and common law variously against some or all Defendants. However, the ammended complaint did not sufficiently address the lack of specificity in the RICO and 10b-5 fraud claims that led to the dismissal of the original complaint.
The Court notified the plaintiff that it intended to dismiss the federal claims for failure to state a claim and also to dismiss all pendent state claims without prejudice so that they can be reasserted in state court. The court gave the plaintiff an additional 14 days to correct the deficiencies. The plaintiff was invited to file a brief regarding why the pending federal law claims in the amended complaint should not be dismissed with prejudice for the reasons identified, such that Plaintiff would be able to pursue his state law claims in state court.
All in all, the case was in the federal court for more than a year. Hardly "record time". Also, before anyone brings up the plaintiff, I would like to point out that there are many people in the US with the same name. There are 33 in Kentucky alone.
This post is getting too long so I will stop for now. Perhaps tomorrow I can get into the background facts and allegations.
Beware of the Mineral Oil King of Wal-Mart or is that Snake Oil?
Why did the Mineral Oil King of Wal-Mart have to fake his resume? Why did he fake his experience with self named positions in companies with no actual operations that only existed on paper?
Well, it seems as if his REAL experience is something he would rather not mention as in one position, he was charged under the RICO Act. That charge was dismissed in part because "Plaintiff has not properly alleged any predicate acts of racketeering activity. The only supposed "racketeering activity" identified by Plaintiff is that "Defendants conspired to commit fraud through, inter alia, creating shell companies for the sole purpose of establishing credit and accumulating debt, and then transferring the assets of said companies to new companies.""
It is important to understand the bolded text above because if it worked once, it's sure to be tried again. And speaking of trying again, the other experience Alf left off his resume in favor of the faked postitions is with Dark Dynamite. I referred to that in an earlier post. There, they turned millions of dollars of investor's money into virtually NOTHING!
I encourage all to take the time to research these things for themselves. Too many similarities to past events to dismiss, in my opinion.
As I've said in the past, good luck to you, hp. I hope you make a lot of money. I'm very skeptical because of the reasons I've enumerated. That certainly doesn't mean I want you or anyone else to lose. As I've said in the past, just because the weatherman says there's a strong chance of severe weather doesn't mean he's hoping for a tornado to flatten your house. {8^D
Why did the Mineral Oil King of Wal-Mart have to fake his resume? Why did he fake his experience with self named positions in companies with no actual operations that only existed on paper?
Well, it seems as if his REAL experience is something he would rather not mention as in one position, he was charged under the RICO Act. That charge was dismissed in part because "Plaintiff has not properly alleged any predicate acts of racketeering activity. The only supposed "racketeering activity" identified by Plaintiff is that "Defendants conspired to commit fraud through, inter alia, creating shell companies for the sole purpose of establishing credit and accumulating debt, and then transferring the assets of said companies to new companies.""
It is important to understand the bolded text above because if it worked once, it's sure to be tried again. And speaking of trying again, the other experience Alf left off his resume in favor of the faked postitions is with Dark Dynamite. I referred to that in my last post. There, they turned millions of dollars of investor's money into virtually NOTHING!
I encourage all to take the time to research these things for themselves. Too many similarities to past events to dismiss, in my opinion.
Regarding the convertible preferred shares the CEO gave himself.....
It seems very reminiscent of what was done at Dark Dynamite while Alf was there. Dark Dynamite issued convertible preferred shares with voting rights which gave control to a two men. It was later written.....
Dark Dynamite shareholders must be getting whiplash by now, watching shares increase and decrease at the whim of two men, the Company’s sole director, CEO and CFO, and its controlling shareholder. Thanks to the decisions imposed by that pair a shareholder who owned 1 million shares before the November 8th reverse-split now would own one half of a share.
Alf seems to have learned a lot during his stint with Dark Dynamite. He is now the CEO, CFO, Director AND controlling shareholder! A $2 million investment in Dark Dynamite made before Alf came on board is today worth about a buck! Some investment, huh?
One other item of note regarding the free preferred shares.....Preferred shareholders have priority over common stockholders on earnings and assets in the event of liquidation. So Alf has basically insured himself of taking everything.
We'll address TAG in an upcoming post.
I did not remove your second post. It was removed by IH Admin. I cannot overrule Admin decisions. I suggest you contact IH Admin and request their reasoning. I have found they will always give you the reason for removal. Once he even reversed his decision on one of my posts.
ALL posters, paid or not, have the ability to PM Admin.
A few words about barite.....
Most barite is mined from layers of sedimentary rock which formed when barite precipitated onto the bottom of the ocean. Some smaller mines utilize barite from veins, which formed when barium sulfate was precipitated from hot subterranean waters. In some cases, barite is a by-product of mining lead, zinc, silver, or other metal ores.
There are nine barite mines in the United States; in Nevada, Georgia, Tennessee, and Missouri. China produces nearly ten times as much barite as the U.S., and India also produces more. About 40 other countries are also producers.
Many barite deposits are known worldwide, but some are uneconomic because barite can be mined more cheaply in China.
Possible substitutes for barite, especially in the oil drilling industry, include other similar minerals, such as celestite (strontium sulfate, SrSO4) and iron ore. A German company is producing synthetic iron ore (hematite) which is proving a good substitute for barite. However, these alternatives have yet to be widely used in the oil industry, and barite continues to be the preferred commodity for this application as long as barite production remains strong (prices remain low).
As with any commodity, the price will tend to fluctuate over time. When the price rises, miners will purchase new equipment and upgrade oldler less efficient equipment, thus increasing production and again, lowering prices.
Mining may be "free enterprise" but it is by NO means a FREE enterprise. There's much more to mining than some people seem to think. It is an expensive startup.
Wow, Please repost your last post without the personal attacks. You presented some good, on topic points but personal attacks will not be tolerated.
If the rules are not enforced, there are no rules.
Sometimes silence speaks louder than words.....So much for "Big things".
Hi Richard, You said, "Big things are in the works." Can you be specific please? Exactly what "Big things" are we talking about here? Thnx
Ho hum...... It seems no one is getting excited about a mining company in the "exploratory phase" announcing it is almost getting ready to begin phase 1 of exploration. It seems more than a bit anticlimactic, does it not?
Mining is not "easy money", like some who were here seem to think. It requires a lot of capital and this is a tight capital market. Alf puffing up his resume with fake credentials did nothing to engender trust in the company.
I'm not sure Soon-Shiong wants to hold this stock for long. Additionally, I doubt that it will ever hit your price range.
Maybe it's just the beginning of millions of shares being trickled out.
So shaffer, I take it you are still not able to buy those shares since the TOTAL volume for today is still 0. Why not?
I show a real time bid and ask during market hours and can place buy and sell, limit and market orders.
Do not use the '.pk' suffix when trying to place your order. If that doesn't work, try calling customer service for help.
I have no experience with Scottrade but most online brokers offer "broker assisted" trades for a small extra fee.
Good luck to you.
Anyone who took the time to check out his resume wouldn't have given him much to begin with.
I wouldn't hire him for anything. In my experience, when someone starts out by trying to con you, odds are good it's not going to get much better from there.
Good luck Rich & hp. I hope you know that I'm not "rooting" against you guys or anyone that owns this stock, anymore than the weatherman is "rooting" for a tornado to demolish someone's house when he predicts stormy weather.
All I'm saying is the skies look kind of dark and threatening. It weather system may pass without incident but one would be wise to keep an eye on it and take any necessary precautions.
The case was dismissed on a technicality. I belive the reason given was that it was "improperly filed". It's pretty difficult to prove a RICO case without a serious, long-term government investigation.
I don't know a lot about the case but from what I read, the investor was "sold" a 40% stake in the company. That's what he was led to believe he was buying. After they took his money, they issued so many sharesand the resulting sell offs, they diluted his 40% stake down to nothing.
Sounds an awful lot like DKDY. After Al became involved, they began bBy issuing hundreds of millions of free shares to execs, then doing a 1:2000 reverse split, issuing hundreds of millions of shares to execs again and doing a 1:1000 reverse split, they turned all the original investor's money into dust. A $20,000,000 original investment would be worth about $1 today.
Having RICO charges filed against him doesn't automatically mean he is guilty, just like having the charges dismissed without trial doesn't mean he didn't do it. It's just good for new investors to be aware of these things before putting up large sums of money.
You know the old saying, "If it looks like a duck and quacks like a duck, it's probably a duck."
Remember the large investor that filed RICO charges against Al and the others? He stated that he bought a 40% interest in the company and then, without his knowledge, they diluted him down to next to nothing.
Sounds like it could have been DKDY. Looks like the early stages of the same thing could be happening here.
Not enough volume for L2 to be meaningful. I'd be more worried about the similarity to DKDY. They give themselves hundreds of millions of shares and then reverse split to wash out the old investors. That's what happened after Al got involved with DKDY.
If you had invested $20,000,000 in that one before Al got involved and held the stock until now, your investment would be worth about a buck.
So, you voted to give Al 300,000,000 shares?
Yeah, that resume certainly doesn't say, "Mineral King of Wall Street", to me.
A while ago someone came through here proclaiming the "Mineral King of Wallstreet" BS. Many here just accepted that bit of fluff without checking any further. Anyone who would have checked would have found that the "Mineral King's" credentials were BOGUS!
His resume says that he was CEO and a Director of Rock of Angels Capital Corp. from 2006 to 2010. Pretty impressive, right? Well, here's the truth....
Rock of Angels was incorporated as a WY shell company in 2006 and was COMPLETELY INACTIVE, dormant on the shelf. They conducted NO business! Al had himself slotted in as CEO and Director of the bogus "PAPER" company.
So, he was CEO and Director of what? A few sheets of paper in a filing cabinet, nothing more!
In 2010, he became CEO and Chairman of the Board of TAG Minerals. Well, Rock of Angels wasn't so impressive but CEO and CoB of TAG Minerals, now that MUST be impressive, right? ..... WRONG! Here's the truth....
Towards the end of 2010 TAG Minerals came into existance, born of another company. That company was.........Rock of Angels! Yes for a small fee, Rock of Angels just changed its name to TAG Minerals Inc. and while he was at it, Al promoted himself to CEO and Chairman of the Board of this new "PAPER" company.
On April 22, 2011, LLSR issued 165,000,000 shares of its common stock to acquire TAG Minerals Inc.
As of April 21, 2011, TAG Minerals Inc. had NO revenue, with just minor operating expenses ($50 fee for name change) and only nominal assets ($50 Cash to pay for the name change). Those assets included the 49% interest in TAG-Z. TAG-Z had just commenced operations in 2011 and still had no reportable assets at the time Lantis acquired all of the TAG stock. In effect, NOTHING! WORTHLESS!
Just two months later Lantis issued 5,000,000 shares of common stock to have TAG-Z acquire Ontage Resources (Private) Limited. The only asset that Ontage had is a 10% ownership in Slashwood Mining (Private) Limited. Now remember that LLSR only owns 49% of TAG-Z and TAG-Z acqired Ontage, so LLSR only owns 4.9% of Slashwood, yet LLSR paid for ALL of Ontage so it seems Tapiwa made out like a bandit, getting 51% of Ontage for nothing. (Remember this, it will appear again later.)
There was only a nominal balance sheet, and NO OPERATIONS for Ontage through June 30, 2011 other than the 10% investment. So basically, they bought another company worth nothing, with no operations. Even the company had to admit it was next to worthless when the SEC asked them about it.
"Lantis recorded the 5,000,000 shares as a deposit at $0.03 per share based on the readily determinable market value as this was the price of the shares of stock at the time of issuance. Management does not believe that this price is the fair value due to the fact that they are just commencing a new business which is the mining business. Management believes that a more appropriate value would be closer to par value, which would put this value at $5,000" - Statement to the SEC
So they gave up $150,000 worth of shares to acquire something "management believes" is worth close to $5,000 and they are really only entitled to 49% of THAT! Again, someone made out like a bandit, literally.
Now you may ask, just who was it that "made out like a bandit"? Good question! One need only go back to the "management resumes" to find: Tapiwa Gurupira! "Since 2009 Mr. Gurupira had been CEO and a Director of Ontage Resources..." Since Ontage was a private company, CEO and Director are synonymous with owner, just like the "Mineral King" and Rock of Angels.
This seems to be a web of worthless "paper" companies buying other worthless "paper" companies. Millions upon millions of LLSR shares!
The FALSE "Mineral King"
A while ago someone came through here proclaiming the "Mineral King of Wallstreet" BS. Many here just accepted that bit of fluff without checking any further. Anyone who would have checked would have found that the "Mineral King's" credentials were BOGUS!
His resume says that he was CEO and a Director of Rock of Angels Capital Corp. from 2006 to 2010. Pretty impressive, right? Well, here's the truth....
Rock of Angels was incorporated as a WY shell company in 2006 and was COMPLETELY INACTIVE, dormant on the shelf. They conducted NO business! Al had himself slotted in as CEO and Director of the bogus "PAPER" company.
So, he was CEO and Director of what? A few sheets of paper in a filing cabinet, nothing more!
In 2010, he became CEO and Chairman of the Board of TAG Minerals. Well, Rock of Angels wasn't so impressive but CEO and CoB of TAG Minerals, now that MUST be impressive, right? ..... WRONG! Here's the truth....
Towards the end of 2010 TAG Minerals came into existance, born of another company. That company was.........Rock of Angels! Yes for a small fee, Rock of Angels just changed its name to TAG Minerals Inc. Al promoted himself to CEO and Chairman of the Board of this new "PAPER" company.
On April 22, 2011, LLSR issued 165,000,000 shares of its common stock to acquire TAG Minerals Inc.
As of April 21, 2011, TAG Minerals Inc. had NO revenue, with just minor operating expenses ($50 fee for name change) and only nominal assets ($50 Cash to pay for the name change). Those assets included the 49% interest in TAG-Z. TAG-Z had just commenced operations in 2011 and still had no reportable assets at the time Lantis acquired all of the TAG stock. In effect, NOTHING! WORTHLESS!
Just two months later Lantis issued 5,000,000 shares of common stock to have TAG-Z acquire Ontage Resources (Private) Limited. The only asset that Ontage had is a 10% ownership in Slashwood Mining (Private) Limited. Now remember that LLSR only owns 49% of TAG-Z and TAG-Z acqired Ontage, so LLSR only owns 4.9% of Slashwood, yet LLSR paid for ALL of Ontage so it seems Tapiwa made out like a bandit. (Remember this, it will appear again later.)
There was only a nominal balance sheet, and NO OPERATIONS for Ontage through June 30, 2011 other than the 10% investment. So basically, they bought another company worth nothing with no operations. Even the company had to admit it was next to worthless when the SEC asked them about it.
"Lantis recorded the 5,000,000 shares as a deposit at $0.03 per share based on the readily determinable market value as this was the price of the shares of stock at the time of issuance. Management does not believe that this price is the fair value due to the fact that they are just commencing a new business which is the mining business. Management believes that a more appropriate value would be closer to par value, which would put this value at $5,000" - Statement to the SEC
So they gave up $150,000 worth of shares to acquire something "management believes" is worth close to $5,000 and they are really only entitled to 49% of THAT! Again, someone made out like a bandit, literally.
Now you may ask, just who was it that "made out like a bandit"? Good question! One need only go back to the "management resumes" to find: Tapiwa Gurupira! "Since 2009 Mr. Gurupira had been CEO and a Director of Ontage Resources..." Since Ontage was a private company, CEO and Director are synonymous with owner, just like the "Mineral King" and Rock of Angels.
This seems to be a web of worthless "paper" companies buying worthless "paper" companies. Millions upon millions of LLSR shares!
I will not remove your post but if IH Admin or the ModSquad sees it, I'm sure they will remove it.
This is the LLSR message board. From now on, posts should be related to LLSR. Too many off topic posts are frowned upon. So to get back on topic.....
Can anyone point out the section/paragraph/sentence in the agreement that says Chiroswas is selling and TAG-Z is buying the mining claims? Lots of references to selling/buying 50% of the shares in Chiroswa which are worthless.
kjb76, you may become a moderator on this board if you wish. I would support your application. Moderators have to follow IHub rules just like everyone else though. Being a moderator would allow you to see verify that almost all of the posts that have been removed since I became a moderator have been removed by IH Admin and not me. The few that I have removed were clear violations of the IHub rules and you would be expected to remove them also.
I have tried to bend over backwards to accomodate everyone. Please state the IHub rule that any of my posts has broken and I will remove my own post. I promise.
Once again, I ask you....
Do you really think the agreement between Chiroswa Minerals and TAG-Z, as stated in the last 8K is material to LLSR and do you think that LLSR enforceable in that agreement?
By now, everyone should have had time to read the agreement between Chiroswa Minerals (Pvt) Ltd. and TAG Minerals (Pvt) Ltd. If that doesn't have you scratching your head wondering why Al signed that document, I don't know what will.
This thing's got "Goat Rodeo" written all over it.
By now, everyone should have had time to read the agreement between Chiroswa Minerals (Pvt) Ltd. and TAG Minerals (Pvt) Ltd. If that doesn't have you scratching your head wondering why Al signed that document, I don't know what will.
This thing's got "Goat Rodeo" written all over it.
I think the SEC will have a number of questions about this.
What kind of nimrods are in charge of this goat rodeo?
I think the SEC will have a number of questions about this.
What kind of nimrods are in charge of this goat rodeo?
You're right, it is too early for any public flogging. The Raptor deal isn't complete yet and the new stock symbols haven't even been announced. Some of the groundwork is being laid, that's all at this time. The Raptor reverse split and increase in authorized shares has to occur first.
Will it work? Probably..... but how well, I don't know.
I still believe the gold mine is here not in Zimbabwe. The website is an integral part of mining the "gold".
I believe the real "gold mine" is financing, whether through private placements, public offerings, convertible notes or something else. In order to get money coming in, you've got to generate interest. Just issuing PRs hasn't generated much interest and probably won't.
No, the website will probably be back up soon. They need it, not just for advertising but to provide some credibility. Most people don't like to put money into something blind.
Raptor Resources site is down. Probably not permanently but who knows? Must have gotten too many hits to handle yesterday. Oh well, that's what happens when you do things on the cheap.
Raptor Resources site is down. Probably not permanently but who knows? Must have gotten too many hits to handle yesterday. Oh well, that's what happens when you do things on the cheap.