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Wind, if you're right, let's spend it on a big party for all the dreamers, like you and I.
I doubt they would want the publicity.
You mean from the cowards?
You're very kind to be concerned. Thanks.
Perhaps you can have closure now.
Duplicate post
Ron, I think it's highly unlikely there will be anyone other than jackal lawyers dining on the carcass.
Hi Ron, good to hear from you! It would have been nice to see some of the numerous collaborators convicted as well, but the trustees of the "bones" of our former investment have done quite well, and now they can grind up whatever is left and make a nice Sunday dinner at home. Maybe they won't immediately have us escorted off the property for just peering through the windows at the final morsels of the feast being wolfed down. On a happier note, I hope you have a nice 4th!
Hi Ron, good to hear from you! It would have been nice to see some of the numerous collaborators convicted as well, but the trustees of the "bones" of our former investment have done quite well, and now they can grind up whatever is left and make a nice Sunday dinner at home. Maybe they won't immediately have us escorted off the property for just peering through the windows at the final morsels of the feast being wolfed down. On a happier note, I hope you have a nice 4th!
Scarfo, Pelullo, Maxwell Brothers Guilty In FirstPlus Trial
By George Anastasia
For Bigtrial.net
Mobster Nicodemo S. Scarfo and his business associate Salvatore Pelullo were convicted today of looting more than $12 million from a Texas-based mortgage company through a series of phony business deals and bogus consulting contracts.
Scarfo, 49, the son of jailed Philadelphia mob boss Nicodemo D. "Little Nicky" Scarfo, was described by the government as the behind-the-scenes power in the secret takeover of FirstPlus Financial in 2007.
Pelullo, 47, an Elkins Park businessman with two prior fraud convictions, was the point man in the scheme, according to authorities. A wannabe wiseguy who quoted lines from The Godfather and brought a street corner swagger to business meetings, Pelullo was accused of using threats and intimidation to force company officials to do his bidding.
The anonymous chosen jury, which deliberated for parts of 10 days over two weeks, also convicted former FirstPlus CEO John Maxwell and Maxwell's brother, William, a lawyer who worked as special counsel for FirstPlus. The jury found lawyers David Adler, Gary McCarthy and Donald Manno not guilty of the charges they faced.
The verdicts were announced shortly after 11 a.m. to a courtroom packed with friends and family members of the defendants and with government officials. The process took more than twenty minutes as Judge Robert Kugler read each of the 25 counts in the case and the jury foreman declared "guilty" or "not guilty" to each charge faced by each defendant.
Scarfo and Pelullo have been held without bail since their indictments in November 2011. They showed little emotion as the process played out. Scarfo heard the word "guilty" tied to his name 25 times. Pelullo charged with one less count, heard it 24 times.
Both men, because of their prior criminal convictions and because of their principal roles in the scam, face from 30 years to life when sentenced by Judge Kugler. Sentencings have been scheduled for October.
The verdicts capped a six-month trial and a federal investigation that began more than seven years ago. The probe became public in May 2008 when the FBI conducted a series of coordinated raids in Philadelphia, South Jersey, Miami and Irving, Tx (where FirstPlus was based).
Authorities charged that the takeover of FirstPlus began in the spring of 2007 when Scarfo and Pelullo began to maneuver for control of the troubled mortgage company. At one point, FirstPlus had been a key player in the subprime lending business but had subsequently fallen into bankruptcy.
Scarfo and Pelullo were accused of using fear and intimidation to insert their own candidates on to the company board of directors in the summer of 2007. Authorities charged they were controlling the company by that point, even though their names never appeared on any company documents or on filings with the SEC and other government agencies.
Full of bravado and bluster, according to witness testimony, Pelullo was involved in the day-to-day operations of the company and used his own arrogance and allusions to his organized crime connections to instill fear in those who balked at doing his bidding.
At one point, according to a company official who testified during the trial, Pelullo threatened the official, telling him his wife would be raped and his young daughters sold as prostitutes if the official didn't go along with Pelullo's directions.
Testimony from former employees, including Cory Leshner a top Pelullo associate who became a key prosecution witness, helped the government build its case which was also based on hundreds of secretly recorded phone conversations and thousands of pages of documents.
Several hours after the verdicts were announced, Scarfo's court-appointed attorney, Michael Riley, said he was disappointed but not surprised. Riley said he would "aggressively" pursue every appeal issue. As he had throughout the trial, Riley said the government mischaracterized the case in order to convince the jury.
"This was prepared and packaged as a mob case in order to make a weak white collar case more saleable to the jury," Riley said. He said his client was also disappointed but not surprised by the outcome. The younger Scarfo, Riley said, has continuously paid a judicial price for the criminal acts and reputation of his more notorious father.
Little Nicky Scarfo and jailed Luchese mob boss Vittorio "Vic" Amuso were named unindicted co-conspirators in the case. The government alleged that both were to benefit from the fraud.
In a separate hearing this afternoon, the jury also granted all the government's forfeiture requests for assets the defendants had obtained through the fraud. These included a yacht and an airplane purchased by Scarfo and Pelullo, a Bentley purchased by Pelullo and bank accounts and other valuables, including jewelry Scarfo purchased for his wife.
The readings of the verdicts came in a tense courtroom where friends and relatives had begun gathering earlier in the morning. The jury panel had sent a note to Judge Kugler late yesterday afternoon announcing that it was close to a consensus but wanted to sleep on its findings before announcing them.
The first verdicts announced for the racketeering conspiracy count that topped the indictment set the stage for what was to follow. Scarfo, Pelullo and the Maxwell brothers were found guilty, but Adler, McCarthy and Manno were found not guilty. What followed was the recitation of the remaining counts and as the jury foreman declared "not guilty" again and again on separate fraud charges, friends and family members of Adler, McCarthy and Manno began to smile and quietly nod to one another.
One friend of McCarthy's offered a quiet fist pump as he sat in the third row of the packed courtroom and heard "not guilty" announced to a securities fraud charge, 17 wire fraud charges and one money-laundering charge that McCarthy faced.
The reaction was similar from friends and family members of the other defendants. Manno's wife, Rita, broke into tears of joy after the final "not guilty" was announced to one of the five charges her husband faced. One of her daughters sat next to her, gently rubbing her back.
"A six-year ordeal is finally over," Manno, a veteran criminal defense attorney who had represented Scarfo for years, said as he exited the courtroom.
Manno, who represented himself, said he never second-guessed his decision. He said it gave him a chance to "personalize" the defendant. Throughout the trial he spoke of himself in the third person and in a detailed closing argument he hammered home the key point in his defense: he was a lawyer trying to counsel Scarfo, not a member of the conspiracy. More important, he argued and the government's own wiretaps appeared to confirm, neither Scarfo nor Pelullo followed his advice.
Like the two other lawyers acquitted, Manno contended that he was lied to by Scarfo and Pelullo and was never fully aware of what they were doing behind-the-scenes at FirstPlus.
"They split the case the way we had argued for in a severance motion," Manno said of the jury's verdict, referring to a motion rejected by Judge Kugler to have Scarfo, Pelullo and the Maxwell brothers tried together and Ader, McCarthy and Manno tried in a second trial.
Adler declined to comment as he left the courtroom, but smiled and said any questions should be handled by his defense attorney Barry Gross.
Gross, himself a former federal prosecutor in Philadelphia, thanked the jury and the judge and said his client "looks forward" to returning to his legal practice. Adler, based in New York, specializes in SEC filings.While a federal prosecutor for the U. S. Attorney's Office for the Eastern District of Pennsylvania, Gross had won convictions of some of the top mobsters in Philadelphia, including Scarfo's father, "Little Nicky" Scarfo.
In a prepared release later in the day Gross, who works for the Philadelphia law firm of Drinker, Biddle&Reath, said, "There was an enormous quantity of information that the government presented in this case, but the jurors clearly took their responsibilities very seriously and justice was finally achieved."
Manno said the same thing more succinctly. "It ended the way it should have," he said, before heading off with his wife, daughter and son-in-law to celebrate the outcome.
In a prepared statement released by his office, Paul Fishman, the U.S. Attorney for New Jersey, said those convicted had "given new meaning to the term 'corporate takeover' looting a publicly traded company to benefit their criminal enterprise." He said the case proved the "rampant self-dealing, fraudulent SEC filings and intimidation" that had been used to advance the fraud.
Assistant U.S. Attorney Steven D'Aguanno, based in Camden, and FBI Agent Joseph Gilson spearheaded the probe which also included the SEC, the Department of Labor and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Neither Maxwell brother offered any comment. Both appeared resigned as the guilty verdicts, one after another, mounted against them. William Maxwell continued to jot notes on a legal pad. John Maxwell sat with his head resting on his hand. Following the hearing on forfeiture actions, Judge Kugler revoked the bail of both Maxwell brothers and ordered then imprisoned pending sentencing.
William Maxwell was accused to helping to funnel cash to Pelullo and Scarfo through a series of phony consulting contracts. Maxwell was appointed as legal counsel for the firm at a fee of $100,000-a-month plus expenses. A firm set up by Pelullo was given a similar contract and in turn transferred $33,000-a-month to a Scarfo front company. Those cash transfers were the bulk of the wire fraud charges in the case.
Deliberations over the last three days appeared to be headed toward the conclusions that were announced today, Questions from the jury panel indicated early in the week that it had voted to convict some defendants on the overarching racketeering conspiracy charge.
Scarfo, Pelullo and the Maxwell brothers were the four defendants directly involved in the company, according to evidence and testimony and were the logical targets of that finding. Adler, McCarthy and Manno were not directly involved in any business decisions.
The jury also voted to convict on two weapons counts. Scarfo, Pelullo and the Maxwell brothers were guilty of conspiracy to sell and possess firearms, a count tied to a cache of weapons and ammunition found on the yacht. Scarfo was convicted of a second weapons offense based on two guns found in his Egg Harbor Township home during one of the raids in May 2008.
As convicted felons, neither Scarfo nor Pelullo are permitted to possess guns.
Before the verdicts were announced, John Maxwell, who despite his complaints about media coverage had consistently and graciously made himself available to the media, said "It is what it is...As a kid I used to do some bull riding. This can't be any harder than that."
John Maxwell had insisted that he was only following the advice of lawyers while running FirstPlus and that he was targeted because he had declined to cooperate in an investigation of Pelullo and Scarfo. He often joked that as a Texan he knew little about organized crime or the Luchese crime family to which Scarfo belonged.
The only Luccheses he knew, Maxwell quipped, were the Texas boot making company that has been in business since 1883.
The forfeiture hearing that took up this afternoon's court session focused in large part of who would be held accountable for the money that was siphoned out of FirstPlus. Throughout the trial, the government argued that the money was used primarily by Scarfo and Pelullo to support a lavish lifestyle that included the yacht, the Bentley and a $715,000 home near Atlantic City that Scarfo and his wife purchased early in 2008.
Lawyers for Pelullo, Scarfo and the Maxwells argued that FirstPlus failed because of a poor economy and the negative impact of the federal investigation which became public after the raids in May 2008. The defense also argued that the government used the specter of organized crime to sensationalize the charges but insisted there was no mob involvement.
Twelve defendants were originally named in a 25-count indictment handed down in November 2011. Five defendants, including Scarfo's wife, have pleaded guilty. She is awaiting sentencing on bank fraud charges linked to a mortgage for the home near Atlantic City.
George Anastasia can be reached at George@bigtrial.net.
Read more at http://www.bigtrial.net/2014/07/verdict-expectedtoday-in-firstplus-trial.html#vTpJc40eHZTJfO26.99
Verdict Expected Today In FirstPlus Trial
By George Anastasia
For Bigtrial.net
Verdicts are expected today in the FirstPlus Financial racketeering fraud trial.
The anonymously chosen jury panel sent a note to Judge Robert Kugler at the end of yesterday's
deliberations indicating it was close to a final decision on all 25 counts in the case.
"We feel we are close to consensus," the note read, "but need to sleep on it. We've done all we can
today and are ready to leave."
The panel has deliberated for parts of 10 days over a two-week period after listening to testimony and
evidence in a trial that began back in January.
The government has alleged that mobster Nicodemo S. Scarfo and his business associate, Salvatore
Pelullo, secretly took control of FirstPlus, a troubled Texas-based mortgage company, in 2007. The
two then orchestrated a series of phony business deals and bogus consulting contracts that allow them
to siphon $12 million from the company, according to the case against them.
The money was used to support a lavish lifestyle. Authorities allege that Scarfo and Pelullo bought a
yacht valued at nearly $900,000; that Pelullo purchased a $217,000 Bentley automobile, and that
Scarfo and his wife, Lisa Murray Scarfo, bought a $715,000 home near Atlantic City.
Throughout the trial, the defense has argued that FirstPlus failed because of a poor economy and the
negative impact of the federal investigation which became public after a series of raids in May
2008. The defense also argued that the government has used the specter of organized crime to
sensationalize the charges but insisted there was no mob involvement.
Thirteen defendants were originally named in a 25-count indictment handed down in November 2011.
Six defendants, including Scarfo's wife, have pleaded guilty. She is awaiting sentencing on bank fraud
charges linked to a mortgage for the home near Atlantic City.
In addition to Scarfo and Pelullo, those on trial include former FirstPlus CEO John Maxwell, his
brother, William, who worked as a lawyer for the company, and lawyers David Adler, Gary McCarthy
and Donald Manno.
All seven are charged with racketeering conspiracy. Other counts in the indictment include bank fraud,
wire fraud, mail fraud, money laundering and obstruction of justice. Not every defendant faces every count. Scarfo and Pelullo also face weapons offenses.
SATURDAY, JUNE 28, 2014
Verdict In FirstPlus Trial, But Deliberations Contniue
By George Anastasia
For Bigtrial.net
It looks like the jury has voted to convict in the FirstPlus Financial racketeering fraud trial.
But at this point we don't know which one -- or how many -- of the seven defendants have been found guilty.
Jury deliberations resume today in the six-month old trial. But questions submitted by the anonymously chosen jury panel to Judge Robert Kugler last week offer some insight into the process and have given rise to speculation that the panel has voted to convict someone.
In a note sent Thursday afternoon, the last day of deliberations last week, the panel wrote: "We are unanimous on some counts, but we are not unanimous yet on others (the word "yet" was underlined twice in the note). Are we under any time constraints to reach unanimity?"
That question, coupled with an earlier inquiry about the way to respond to the racketeering conspiracy charge, has led to speculation that the jury has voted to convict at least one and possibly more of the defendants on the principal count in the 25-count indictment. All seven defendants are charged with conspiracy.
"It doesn't look good," said one member of the defense camp last week.
The six-month trial has focused on government allegations that mobster Nicodemo S. Scarfo and mob associate Salvatore Pelullo secretly took control of FirstPlus Financial, a troubled Texas-based mortgage company, in 2007 and siphoned more than $12 million out of the company through a series of bogus business deals and phony consulting contracts.
Five other defendants, including the former CEO of the company and four lawyers, are also on trial.
All seven defendants have been charged with racketeering conspiracy. A number of other charges, including wire fraud, bank fraud, mail fraud and money-laundering are part of the case, but not every defendant faces every charge.
In response to Thursday's question, Kugler told the jury there were no time constraints. The deliberation process will resume today with an alternate being seated to replace one of the jurors who was dismissed at the end of last week's deliberations because of a pre-planned (and pre-paid) vacation.
A male alternate will take the place of the female juror who was let go. Technically, the panel is supposed to begin deliberations from scratch when an alternate is seated, but the reality is that the alternate will be quickly brought up to speed on the status of deliberations and, barring any major objection on his part about the findings thus far, the process is expected to move forward quickly.
One source in the defense camp predicted verdicts before the end of the week. The panel has opted not to sit on Fridays and this Friday, July 4, a holiday.
While it is impossible to determine what the jury has already decided, a note sent to Judge Robert Kugler earlier last week indicated the panel had reached a unanimous decision on at least two of the predicate acts that support the conspiracy charge against one or more of the defendants.
The law requires a jury to find at least two of those acts proven before it can find a defendant guilty of conspiracy. The number of predicate acts each defendant faces varies. Scarfo and Pelullo are each charged with eight.
In a question submitted early last week, the jury wanted to know if the panel had reached unanimity on two of the predicate acts, was it required to find on the others. The only scenario in which the other acts could be ignored was if the panel had found two of acts proven, thereby supporting a guilty verdict and making the other predicate acts moot.
Pessimism rose in the defense camp as defendants and their lawyers analyzed the two questions posed by the jury last week. One source speculated that the jury has reached verdicts in the cases against Scarfo and Pelullo and possibly John Maxwell, the CEO of FirstPlus, and his brother William, a lawyer who worked for FirstPlus and who is accused to funneling company funds to Scarfo and Pelullo through phony consulting contracts.
Observers believe the jury could be wrestling with the charges against lawyers David Adler, Gary McCarthy and Donald Manno. Those three were not directly tied to the day-to-day operations of FirstPlus. Adler was involved in SEC filings for the company, filings that the prosecution alleges were based on false information. McCarthy was involved in business and financial deals that the government charges Pelullo orchestrated to advance the fraud. And Manno, Scarfo's long-time defense attorney, was charged with bank fraud and obstruction of justice.
Manno, who defended himself, offered a "are you fuckin' crazy" defense, using the prosecution's own evidence to support his argument that Pelullo and Scarfo continually lied to him about financial issues. In his closing argument, he highlighted a secretly recorded phone conversation picked up on an FBI wiretap in which he argued with Pelullo.
The conversation dealt with information being submitted in a mortgage application by Scarfo's wife, Lisa Murray Scarfo, for a $715,000 home outside of Atlantic City. Pelullo and Scarfo kept Scarfo's name off the application and lied about Murray Scarfo's income and financial status.
Manno is heard on the tape telling Pelullo there was no reason to lie and that to do so would be a red flag that would attract investigators because of Scarfo's mob history. Pelullo ignored the advice with Manno at one point asking him, "Are you fuckin' crazy?"
Lisa Murray Scarfo is one of six defendants in the case who pleaded guilty rather than face trial. She has yet to be sentenced.
Because of prior convictions, Scarfo, 48, and Pelullo, 46, face jail terms of from 30 years to life if convicted of the racketeering conspiracy charge and related offenses.
The penalties for the other defendants could be substantially less, but convictions for the four attorneys in the case would result in the loss of their licenses to practice law, a potentially career-ending outcome that could overshadow or at least be as devastating as any jail time.
Read more at http://www.bigtrial.net/2014/06/verdict-in-firstplus-trial-but.html#WqUBP1cY4JBqj7lq.99
SATURDAY, JUNE 28, 2014
Verdict In FirstPlus Trial, But Deliberations Contniue
By George Anastasia
For Bigtrial.net
It looks like the jury has voted to convict in the FirstPlus Financial racketeering fraud trial.
But at this point we don't know which one -- or how many -- of the seven defendants have been found guilty.
Jury deliberations resume today in the six-month old trial. But questions submitted by the anonymously chosen jury panel to Judge Robert Kugler last week offer some insight into the process and have given rise to speculation that the panel has voted to convict someone.
In a note sent Thursday afternoon, the last day of deliberations last week, the panel wrote: "We are unanimous on some counts, but we are not unanimous yet on others (the word "yet" was underlined twice in the note). Are we under any time constraints to reach unanimity?"
That question, coupled with an earlier inquiry about the way to respond to the racketeering conspiracy charge, has led to speculation that the jury has voted to convict at least one and possibly more of the defendants on the principal count in the 25-count indictment. All seven defendants are charged with conspiracy.
"It doesn't look good," said one member of the defense camp last week.
The six-month trial has focused on government allegations that mobster Nicodemo S. Scarfo and mob associate Salvatore Pelullo secretly took control of FirstPlus Financial, a troubled Texas-based mortgage company, in 2007 and siphoned more than $12 million out of the company through a series of bogus business deals and phony consulting contracts.
Five other defendants, including the former CEO of the company and four lawyers, are also on trial.
All seven defendants have been charged with racketeering conspiracy. A number of other charges, including wire fraud, bank fraud, mail fraud and money-laundering are part of the case, but not every defendant faces every charge.
In response to Thursday's question, Kugler told the jury there were no time constraints. The deliberation process will resume today with an alternate being seated to replace one of the jurors who was dismissed at the end of last week's deliberations because of a pre-planned (and pre-paid) vacation.
A male alternate will take the place of the female juror who was let go. Technically, the panel is supposed to begin deliberations from scratch when an alternate is seated, but the reality is that the alternate will be quickly brought up to speed on the status of deliberations and, barring any major objection on his part about the findings thus far, the process is expected to move forward quickly.
One source in the defense camp predicted verdicts before the end of the week. The panel has opted not to sit on Fridays and this Friday, July 4, a holiday.
While it is impossible to determine what the jury has already decided, a note sent to Judge Robert Kugler earlier last week indicated the panel had reached a unanimous decision on at least two of the predicate acts that support the conspiracy charge against one or more of the defendants.
The law requires a jury to find at least two of those acts proven before it can find a defendant guilty of conspiracy. The number of predicate acts each defendant faces varies. Scarfo and Pelullo are each charged with eight.
In a question submitted early last week, the jury wanted to know if the panel had reached unanimity on two of the predicate acts, was it required to find on the others. The only scenario in which the other acts could be ignored was if the panel had found two of acts proven, thereby supporting a guilty verdict and making the other predicate acts moot.
Pessimism rose in the defense camp as defendants and their lawyers analyzed the two questions posed by the jury last week. One source speculated that the jury has reached verdicts in the cases against Scarfo and Pelullo and possibly John Maxwell, the CEO of FirstPlus, and his brother William, a lawyer who worked for FirstPlus and who is accused to funneling company funds to Scarfo and Pelullo through phony consulting contracts.
Observers believe the jury could be wrestling with the charges against lawyers David Adler, Gary McCarthy and Donald Manno. Those three were not directly tied to the day-to-day operations of FirstPlus. Adler was involved in SEC filings for the company, filings that the prosecution alleges were based on false information. McCarthy was involved in business and financial deals that the government charges Pelullo orchestrated to advance the fraud. And Manno, Scarfo's long-time defense attorney, was charged with bank fraud and obstruction of justice.
Manno, who defended himself, offered a "are you fuckin' crazy" defense, using the prosecution's own evidence to support his argument that Pelullo and Scarfo continually lied to him about financial issues. In his closing argument, he highlighted a secretly recorded phone conversation picked up on an FBI wiretap in which he argued with Pelullo.
The conversation dealt with information being submitted in a mortgage application by Scarfo's wife, Lisa Murray Scarfo, for a $715,000 home outside of Atlantic City. Pelullo and Scarfo kept Scarfo's name off the application and lied about Murray Scarfo's income and financial status.
Manno is heard on the tape telling Pelullo there was no reason to lie and that to do so would be a red flag that would attract investigators because of Scarfo's mob history. Pelullo ignored the advice with Manno at one point asking him, "Are you fuckin' crazy?"
Lisa Murray Scarfo is one of six defendants in the case who pleaded guilty rather than face trial. She has yet to be sentenced.
Because of prior convictions, Scarfo, 48, and Pelullo, 46, face jail terms of from 30 years to life if convicted of the racketeering conspiracy charge and related offenses.
The penalties for the other defendants could be substantially less, but convictions for the four attorneys in the case would result in the loss of their licenses to practice law, a potentially career-ending outcome that could overshadow or at least be as devastating as any jail time.
Read more at http://www.bigtrial.net/2014/06/verdict-in-firstplus-trial-but.html#WqUBP1cY4JBqj7lq.99
If it were zero, I doubt either of us would be here venting years of repressed anger.
My guess is that the company is about to be sold and these two people probably want to be able to sell their shares anonymously. While this is pure speculation on my part, I suspect the recent filings, coupled with all the cost saving moves, are designed to maximize value and attractiveness to a potential buyer. Perhaps they already have a buyer. We should know soon.
This could get interesting.
From the 13D filing
ITEM 1. Security and Issuer
Common stock of Claude Resources, Inc. ("the Company"), 224 4th
Avenue South, Suite 200, Saskatoon, Saskatchewan, Canada S7K 5M5.
ITEM 2. Identity and Background
The reporting person, Timothy J. Stabosz, 1307 Monroe Street, LaPorte, IN
46350, a natural person and United States citizen, is engaged as a private
investor. He has not been convicted in a criminal proceeding (excluding
traffic violations or other similar misdemeanors) in the last 5 years, and has
not been a party to any proceedings, or subject to any judgements, enjoinments,
decrees, et al., related to violations of state or federal securities laws, in
his lifetime.
ITEM 3. Source and Amount of Funds or Other Consideration
The reporting person has expended personal funds, in the amount of
$2,116,932.26, to purchase the shares. The reporting person has not used any
borrowed funds to effect the purchases.
ITEM 4. Purpose of Transaction
The reporting person is the largest shareholder of Claude Resources.
He holds the shares for investment purposes, and believes that the market is
substantially underpricing the Company, based upon measures of Claude's
"intrinsic value."
The reporting person believes that traditional measures of valuation, such
as price/book, price/NAV, price/sales, EV/EBITDA, and other measures, in
comparison to the company's peers, all substantiate the Company's under-
valuation. Moreover, the reporting person believes that the Company's risk
profile has been significantly reduced, over the last 6 or so months, as the
Company has engaged in 2 major, minimally dilutive capital raising efforts,
by: 1) selling its former Madsen property (while retaining a monetizable
interest in Madsen's high profile acquiror, Laurentian Goldfields), and 2)
engaging in a royalty arrangement on its Seabee mine with Orion Mine
Finance. These capital raising endeavors, combined with: 1) the Company's
Q1 2014 report, indicating significantly increased mine production and grade,
2) the accelerating progress in bringing the high yield Santoy Gap into pro-
duction, 3) the impressive reductions in cash costs per ounce achieved, and
4) the removal of the "going concern" clause from the Company's financial
statements, all place the Company in a remarkably better position, financially
and liquidity-wise, than it had been. The reporting person believes
the Company's stock price does not reflect the noted improvements, and
the Company's fundamental value. The reporting person also believes that,
primarily owing to massive and indiscriminate selling by gold ETF's, especially
in the junior miner sector, that a "generational opportunity" exists in the
sector, from a contrarian perspective, and that Claude, specifically, offers
shareholders noteworthy opportunities to increase shareholder value through
a combination of: 1) a turnaround in the Company's operations, and
2) a potential sale of the Company.
The reporting person notes the requirement of the Company's covenant
waiver with its major lender, Crown Capital, to explore a potential sale of
the Company, and the requirement that that review process conclude in
July of 2014. The reporting person supports a sale of the Company, at an
appropriate premium that recognizes the fact that the Company is turning itself
around, is in control of its own financial destiny, and that Santoy Gap affords
an opportunity for the Company to substantially increase its yield, ounces
mined, and cash flows, over the intermediate and long term. The reporting
person supports the Company's remaining independent, if any offers
received do not reflect the Company's going concern value, and opportunity
for substantial synergies and cost savings for an appropriate acquiror,
which adequately compensates Claude's shareholders.
The reporting person also notes that the Company has a new CEO, who has
a background as a seasoned mining executive. Under the prior CEO's 18
year tenure, the Company's shareholders suffered horrendous and
inappropriate levels of dilution, with shares outstanding going up by a factor
of 4 or 5 times over. Meanwhile, over most of that tenure, annual ounces
mined were stagnant in the rough vicinity of 50,000. The reporting person
believes it is very important that, in order to establish its credibility,
management must NOT issue new shares, under any circumstances, at
anything remotely close to current prices. Such action would be a betrayal
of the long vexed shareholders of Claude, who have suffered extraordinarily,
over many many years, owing to prior management's failures and missteps.
Considering the Company's history of destruction of shareholder value, the
reporting person believes the Company can improve its governance, by
placing one or more large outside shareholder representatives on the
board, to replace one or more legacy directors. The reporting person
intends to discuss this matter with management, including the scenario of the
reporting person, or his representative, being seated on the Company's board,
in order to provide an "outside witness" for the broader shareholder base
of Claude. The reporting person believes such "outside appointments" would
substantially increase investor confidence in Claude, broaden the overall
shareholder base, and contribute to an increase in shareholder value.
The reporting person believes that the Company has an excellent
investor relations department, and the Company is good at relating its own
"story." With this in mind, the reporting person was extremely displeased
that the board saw fit to delist the Company from the NYSE Market, last
year. He believes that the decline in trading volume in the Company's
stock, since the delisting, has evidenced a decline in interest in the Company,
and that such delisting was misbegotten. The Company has similarly
publicly disclosed the potential deregistering from the requirements of
filing under the U.S. Securities and Exchange Act of 1934. The reporting
person believes the benefits of remaining a publicly reporting entity in the
U.S. far outweigh the costs, in terms of retaining credibility for the
Company, in the U.S. investment community, and that the Company should
remain a full public reporting entity in the U.S.
The reporting person may increase or decrease his position in the
Company's stock, at any time, based on any number of factors, including,
but not limited to, price fluctations, opportunity cost calculations, and
other investment, trading, speculation, margin, or liquidity considerations.
ITEM 5. Interest in Securities of the Issuer
As of the close of business on June 19, 2014 the reporting person has
sole voting and dispositive power over 9,772,517 shares of Claude Resources,
Inc.'s common stock. According to the company's 1st quarter 2014 earnings
release, as of March 31, 2014, there were 188,155,978 common shares
outstanding. The reporting person is therefore deemed to own 5.2% of the
company's common stock. Transactions effected by the reporting person,
in the 60 days prior to the April 15, 2014 "trigger" date, through June 19, were
performed in ordinary brokerage transactions, and are indicated as follows:
02/13/14 bought 698,400 shares at .164
02/25/14 bought 50,000 shares at .179
02/26/14 bought 90,500 shares at .171
02/27/14 bought 35,000 shares at .172
02/28/14 bought 13,500 shares at .172
03/05/14 bought 459,000 shares at .19
03/06/14 bought 249,582 shares at .199
03/20/14 bought 50,000 shares at .191
03/21/14 bought 100,000 shares at .196
03/24/14 bought 103,000 shares at .192
03/26/14 bought 82,000 shares at .18
04/01/14 bought 50,000 shares at .173
04/11/14 bought 65,000 shares at .17
04/14/14 bought 68,600 shares at .168
04/15/14 bought 209,200 shares at .153
04/16/14 bought 136,500 shares at .163
04/17/14 bought 21,500 shares at .164
04/21/14 bought 150,000 shares at .163
05/01/14 bought 134,500 shares at .158
05/02/14 bought 15,500 shares at .155
05/05/14 bought 50,000 shares at .155
05/07/14 bought 37,530 shares at .152
05/30/14 bought 25,000 shares at .136
06/02/14 bought 30,000 shares at .13
06/03/14 bought 300 shares at .13
06/05/14 bought 1500 shares at .127
ITEM 6. Contracts, Arrangements, Understandings or Relationships
with Respect to Securities of the Issuer
None
ITEM 7. Material to be Filed as Exhibits
None
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
Date 06/19/14
Signature Timothy J. Stabosz
Name/Title Timothy J. Stabosz, Private Investor
Overruled! Please, sit down, Counselor!
Does your spouse ever accuse you of not being a good listener?
You won't agree with anything I classify as a failure, but according to your own description, the old principals were a bunch of cry babies who couldn't deal with criticism from a few shareholders. In case you don't know, many public companies have been quite successful in spite of having shareholders. Incidentally, I publicly cheered for the success of the company at times over the years, and I think a more competent and ethical team of leaders would have made the company a success with quite significant funds flowing from the Intercompany Claim. Of course, this discussion is just an exercise in futility because the company was turned over to known criminals in June 2007, not exactly something one would want to put on a resume.
Two bits, four bits, six bits, a dollar! All for CLGRF, stand up and holler!
If AVCVF and Tesla get mentioned in the same press release, we'll be looking at a dollar in our rear view mirror.
The cowardly abdication of fiduciary responsibility in June 2007 at FPFX is a fact which you will never address, and I'm fairly confident I know the reason. Your bitterness over shareholder activism and internet postings is understandable in the context of someone who feels unbearable guilt, and one could easily conclude you were intimately involved on the inside, simply on the basis of your fervor. The SEC filings are hardly exculpatory, but your indefatigable quest to reassign blame to others, for the numerous failures of the "old" principals, is almost admirable in a perverse sort of way.
Your verbal attacks always lack any credibility, but you probably already know that since you never offer any tangible evidence to back up your vitriol. I've always wondered what your role, if any, was at the company and just how much you really know. Of course, you'll obviously never reveal anything about that, and I certainly don't blame you, considering the potential liability. Your anger is palpable, and I apologize if I, as a vocal shareholder, contributed to your misery over the years.
I was referring to ALL their assets. Shareholders may want to consider whether or not there is something actionable about the cowardly abdication in 2007, assuming the RICO charges are upheld. Regardless of how fearful they were, the spineless, fleeing directors and officers bore a fiduciary responsibility to shareholders.
Vanadium: The metal that may soon be powering your neighbourhood
http://www.bbc.com/news/magazine-27829874
Firstplus RICO trial goes to jury.
http://www.bigtrial.net/2014/06/firstplus-trial-heading-to-jury.html
Any idea how the "old" guys fared financially after they sneaked out the back door in 2007? Inquiring minds want to know.
I just hope they get their spines back.
Why it took 40,000 shares to burn through all the "sells" is a bit puzzling. Anyway, we're now back at .17 and hopefully, on the way back into the .20's.
Here's your ballgame, folks.
http://www.investing.com/commodities/gold
Ladies and gentlemen, the Captain has turned on the Fasten Seat Belt sign. If you haven’t already done so, please stow your carry-on luggage underneath the seat in front of you or in an overhead bin. Please take your seat and fasten your seat belt. And also make sure your seat back and folding trays are in their full upright position.
http://www.investing.com/commodities/gold
American Vanadium eyes share of storage battery market
BY NINA CHESTNEY AND HARPREET BHAL
LONDON Wed Jun 11, 2014 7:12am EDT
(Reuters) - American Vanadium is aiming to capture a 20 percent share of the global market for energy-storing vanadium flow batteries by 2020 after it begins production at the only vanadium mine in the United States, its chief executive said.
Most vanadium has traditionally been used to strengthen steel but the metal is now also being employed as a component in batteries to store large amounts of power from renewable energy sources or to balance the grid when there are surges in demand.
American Vanadium, which is listed on the Toronto Stock Exchange, currently sells "CellCube" vanadium flow batteries made by German technology firm DMG Mori Seki.
It is also developing its own vanadium mine in Nevada so it has its own supply of the metal to produce electrolytes for vanadium flow batteries.
China is currently the world's biggest vanadium producer and consumer. Russia and South Africa also have significant resources.
American Vanadium expects its Gibellini mine - the only vanadium mine in the United States - to produce 11 million pounds (lbs) a year of vanadium pentoxide from 2017 which will be turned into electrolytes for energy storage batteries.
"The long-duration flow battery market is expected to be worth $5 billion in 2020. The CellCube is expected to be a major global player, capturing at least 20 percent of the market by then," Bill Radvak, the company's president and chief executive, said in an interview.
The electrolytes for flow batteries sell at around $25 a pound weight equivalent, compared to just $6.50 a pound for vanadium pentoxide for the steel-strengthening market, Radvak said.
"We are able to increase our margins several-fold by going into the electrolyte business," he added.
STORAGE NEEDS
Global demand for vanadium for use in strengthening steel is expected to double by 2025 from around 80,000 tonnes in 2012 and energy storage applications will add significantly to that, Radvak said.
Energy storage technologies, such as pumped hydro or advanced batteries, can help to manage the amount of power needed at peak times and variable supply from renewable energy sources.
The International Energy Agency has estimated that around 310 gigawatts of additional electricity storage capacity is needed in the United States, Europe, China and India to support more low-carbon power generation.
Vanadium flow batteries have a lower energy density than other types and are expensive, but have long lifetimes.
"The cost of these batteries is considered a high upfront capital cost but when they work for 20 years reliably every day, your return on the purchase is spectacular," Radvak said.
CellCube will be installed this year at the U.S. National Renewable Energy laboratory in Colorado and at the Metropolitan Transit Authority's building in New York City, he added.
Other players in the flow battery market include Japan's Sumitomo Electric and China's Dalian Bolong New Materials Co., but Radvak said CellCube was the only commercially-available vanadium flow battery at present.
Robert Catell
http://www.nationalgridus.com/information/bios/
https://www.linkedin.com/profile/view?id=18652748&authType=NAME_SEARCH&authToken=b-bp&locale=en_US&srchid=217802461401887754278&srchindex=1&srchtotal=3&trk=vsrp_people_res_name&trkInfo=VSRPsearchId%3A217802461401887754278%2CVSRPtargetId%3A18652748%2CVSRPcmpt%3Aprimary
New Director Appointed (with NYC connections)
Jun 04, 2014 (ACCESSWIRE via COMTEX) -- Vancouver, BC / ACCESSWIRE / June 4, 2014 / AMERICAN VANADIUM CORP. ("American Vanadium" or the "Company") (tsx.v:AVC) (otcqx:AVCVF) is pleased to announce the appointment of Robert B. Catell to the Board of Directors, effective immediately.
"We are honored to welcome Bob to our Board of Directors and look forward to working with him to position the Company as a leader in the energy storage industry," said Bill Radvak, President & CEO of American Vanadium. "Bob's career and background in the energy sector are truly impressive and the knowledge and relationships he brings will have a major impact as we continue to grow our presence in the rapidly expanding energy storage marketplace. This appointment is a key part of the process of ensuring that we have the resources and leadership in place to achieve our goals."
Mr. Catell, currently Chairman of Keyera Corp. (TOR:CA:KEY) , was formerly the Chairman and CEO of KeySpan Corporation and KeySpan Energy Delivery, the former Brooklyn Union Gas. Following National Grid's acquisition of KeySpan Corporation, Mr. Catell became Chairman of National Grid, U.S. and Deputy Chairman of National Grid plc.
"With the commercially available CellCube vanadium flow system, American Vanadium is well positioned to become a leader in the long duration energy storage sector," said Bob Catell. "Tremendous opportunities are arising in New York, California, Hawaii, Ontario, Alaska and other parts of North America with new requirements for local utilities to integrate long-duration storage into their transmission networks and the CellCube is a proven solution for these opportunities."
Mr. Catell currently serves as Chairman of the Board of the Advanced Energy Research and Technology Center (AERTC) at Stony Brook University, New York State Smart Grid Consortium, Cristo Rey Brooklyn High School, Futures in Education Endowment Fund and the New York Energy Policy Institute's Advisory Council (NYEPI). Mr. Catell serves on the Board of NY State Energy Research & Development Authority (NYSERDA) and the NYS Economic Development Power Allocation Board (EDPAB).
In connection with his appointment, American Vanadium has granted Mr. Catell a total of 250,000 stock options at the exercise price of $0.60 each for a term of five years. The stock options are granted pursuant to the Company's Stock Option Plan, as amended.
American Vanadium also reports that it has entered into a consulting agreement ("Agreement") with Murdock Capital Partners Corp. ("Murdock") to act as the Company's corporate advisor. Pursuant to the Agreement, American Vanadium will issue to Murdock up to 60,000 common shares of the Company in two tranches upon Murdock achieving certain milestones. The issuance of these shares is subject to the approval of the TSX Venture Exchange.
American Vanadium further reports that Revelation Business Solutions Ltd., a consultant, has met certain milestones pursuant to a consulting agreement dated May 1, 2013 and the Company is issuing the second tranche of 30,000 common shares at a deemed price of $0.53 each subject to TSX Venture Exchange approval.
About American Vanadium Corp.
American Vanadium is an integrated energy storage company and the Master Sales Agent in North America for GILDEMEISTER energy solution's CellCube energy storage system. The CellCube is the world's only commercially available vanadium flow battery, providing long duration solutions over a 20+ year life for a broad range of applications including renewable energy integration and demand charge reduction. CellCube is a powerful, durable and reliable energy storage system that ensures a clean, emission-free energy supply at all times. American Vanadium is developing the Gibellini Vanadium Project in Nevada to be the only dedicated vanadium mine in the United States, providing a critical source of vanadium electrolyte for CellCube energy storage systems.
ON BEHALF OF THE BOARD
Bill Radvak, President and CEO
For further information, please contact: Dan Schieber, Director, Corporate Finance
(604) 681-8588 X 106
dschieber@americanvanadium.com
www.americanvanadium.com
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE: AMERICAN VANADIUM CORP
http://www.accesswire.com/img.ashx?id=416442
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I suppose the fact EKCS is still filing SEC reports is reason for hope. Then again, that means someone could actually read those reports. LOL
American Vanadium Engages Torrey Hills Capital, Inc. as Investor Relations Consultant
http://online.wsj.com/article/PR-CO-20140527-910961.html
Torrey Hills Capital, Inc. - Website
http://www.torreyhillscapital.com/
Oh yeah, this should end well.
French far right in 'earthquake' win as Europe votes
http://www.reuters.com/article/2014/05/25/us-eu-election-idUSBREA4N0DK20140525
Let's hope they have a high level of confidence in the success of these potential sales. Announcing contract talks can be a good thing if a positive outcome is already assured, but not so much if they don't lead to anything.
American Vanadium Talks to Three Companies Seeking ‘Major’ Deals
By Louise Downing - May 20, 2014
American Vanadium (AVC) Corp., owner of the only known U.S. deposit of the metal, is in talks with a global power company and two large domestic solar developers on plans to use its battery technology in “major” contracts they’re seeking.
The three are targeting the deals to install solar and energy-storage microgrids this year, American Vanadium Chief Executive Officer Bill Radvak said in an interview in London.
“We’ve taken a partnering strategy as opposed to selling one-offs,” Radvak said. “We targeted the largest energy developers, solar developers and integrators in North America, proposing to be the solution provider for major companies that have either numerous customers or a backlog of significant projects in dire need of long-duration energy storage.”
American Vanadium sells vanadium-flow batteries under a long-term partnership with DMG Mori Seiki (GIL) AG’s Gildemeister unit. The company’s CellCube batteries store 100 kilowatts to 10 megawatts of energy from 4 to 12 hours. Unlike lead-acid or lithium-ion units, they can be recharged and discharged indefinitely, lasting as long as 20 years, according to Radvak.
Energy storage is increasingly important as economies shift to using power from the sun and wind that varies according to the weather. Batteries store spare power for release when demand peaks. California regulators in October ordered the state’s utilities to buy 1,325 megawatts of energy storage by 2020.
While American Vanadium’s focus is North American, it’s also interested in South American countries such as Chile, Radvak said. “When you add up all the global opportunities, CellCube sales could reach $1 billion a year,” he said.
The company in April agreed to install an energy-storage system designed to reduce power costs for the Metropolitan Transportation Authority, the operator of New York’s subways and buses. The MTA plans to charge the batteries at night when power is cheap and discharge them when energy is more expensive.
To contact the reporter on this story: Louise Downing in London at ldowning4@bloomberg.net
To contact the editors responsible for this story: Reed Landberg at landberg@bloomberg.net Tony Barrett, Alex Devine