Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Excellent. Absolutely, positively excellent.
I'd tell you to make sure you don't exagerate anything, but that would be a pretty dumb thing to say - it's virtually impossible to exagerate anything about what happened...
As much as I thought there were serious issues and questions about this company, I am still stunned by the depth of the deception, as well as by the depth to which the stock price has gone.
I'm also shocked that given the evidence presented by the SEC against Plant, the anyone, and I mean anyone, could possibly express support for Plant:
The contract was completely fabricated, right down to Plant creating a false contract to show to BA and others. If any contract ever existed with anyone, Plant could have provided proof to the SEC. Clearly he couldn't.
The idea of the float being 200M was a joke - apparently the 400M to 500M shares that everyone thought was in Plant's hands had long since made it into the float. How many more shares did? Hopefully someday we will know. These sales happened; the SEC could track them easily, once they started looking.
The constant banter by Plant and his agent, BA, about audit financials coming out shortly, soon, in 30 to 60 days (way over that limit), 2 to 3 weeks, etc. was all a total lie. He never hired anyone to do any auditing, and still hadn't as late as March 14th (probably still hasn't), the date the SEC last checked the auditing status before it put it's charges together. Had Plant actually hired an auditor at any time through March 14th, he could have provided proof to the SEC. Clearly, he hadn't.
Is there anyone out there who will step up to the plate and explain how none of these things reflects what happened?
Personally, I'm more in sandvet's court on this - Plant may very well have been the front man for the others. It helps explain why he is still there - they need to try to keep him in line, because the SEC and Federal charges are squarely on him.
We'll all know more, maybe not soon, but there will be other heads to be offered up to the SEC and Feds...
I particulary liked the wording you cite - clearly indicates that the rest of the shoes haven't fallen yet.
If you look at the SEC civil action against USXP, as an example, there are actually several diffent cases, one main one against Altomare, Gunderson, and USXP, and individual ones against the people who worked in concert with him on his share selling schemes.
I expect the same thing to happen here - That additional cases will be brought against at least the TA, possibly BA, and if no other officers at CyberKey are charged I'd be shocked.
One thing about the shoes that are still to be dropped, unlike the ones that fell already, 99.9% of the people on this board will be celebrating any new ones.
Pity the person who made that fat-finger trade.
Hey, maybe they'll be no other trade today, and people will see the huge one day gain, and momentum players will think that something maybe up, and they'll be a huge rally and everybody can get out whole (except the mo-mo players, that is)!
Maybe not. From .005 to .0001 in one trade, from up 1150% to down 75% in one trade.
I would not be surprised to see some kind of rally if Plant gets pushed out, even though that won't solve a damned thing.
msgbrdinfo: You can still write it off on your Sch D, just like always. It may take you awhile to get 100% of the write off, but only if you are in the habit of not having any short or long term capital gains to write it off against, in which case you write off 3000.00 per year.
Why? The SEC charges clearly show that Plant has been lying about everything, from the contract, to the float, to audited financials coming.
Now, apparently he either can't or won't pay for products from Sequim, which wipes out the company's biometric product line, and makes it virtually impossible for any deals to be made with any other companies for new products except on a totally cash up front, we'll wait for the check to clear, purchases. And the company hasn't got the money to buy anything.
So the company is left trying to peddle USB v2.0., 128-bit encryptied flash drives that are over priced compared to products from companies like IBM and Sandisk, when the flash drive market is already seeing reasonably priced 256-bit encrypted v.3.0 devices, and higher.
And the SEC fines are going to put the company into BK. No if ands or buts about that.
So, I'm surprised anyone is still willing to pay .0001.
All IMNSVHO, of course.
Stogie: You forgot another very important fact - Anyone who buys CyberKey right now is going to be paying any money the SEC gets a judge to agree the company owes.
Now you'd think that the SEC would fine the people who commit the fraud more than their company, but if you look at USXP, the SEC was looking to get about 4M from Altomare and Gunderson, but about 18M from USXP.
Doesn't really make sense to me, but that's the SEC...
msgbrdinfo: At least in the case of the SEC, I'm sure. They don't even guarantee setting aside any money for investors. The SEC gets most of its operating funds from its fees and its penalties.
In the case of the Feds, I'm not so sure, but I don't think it really matters, because there just isn't going to be much available.
I agree. Whatever is there to get will go to SEC and Justice Department fines, first, then if anything is left over it could be set aside for restitution, particularly by the justice department.
The SEC can, but very rarely does, set aside any restitutions it imposes in addition to fines.
And there is the whole question of how much the IRS will take before the SEC and Feds can get anything.
The savings in taxes due to the losses is about all anyone here can count on.
I have no doubt that SEC action regarding National Transfer will pop up one of these days, very soon.
Madmax posted a conversation with the head honcho where she laughed and said a class action suit involving her company would be a moot point. Very telling as to what she knows is coming down.
smartmoney77: They are shares that are not registered with the SEC. Such shares are no illegal, per se, but they do fly under the radar when a company fails to inform its investors that these shares have been issued.
There are exceptions that allow sales of unregistered shares. You can read more about this subject at the SEC site:
http://www.sec.gov/info/smallbus/qasbsec.htm#eod6
BigWill: The New York Post isn't noted for its reporters' abilities to accurately interpret anything except maybe a sport's score.
It is clearly a misinterpretation of what selling unregistered shares means.
bsandy: Some advice - You really, really, really need to get a new tax person.
What you get to do with any loss on property, whether stock, or a house you sell at a loss, is two fold.
First, you get to deduct that loss from any capital gains you may have for the same year. If you lost 10000.00 on CKYS, and had 15000.00 in gains from other stock sales (gains in your portfolio value has no affect until you actually sell, just as losses cannot be deducted until you actually sell), you are only liable for taxes on the 5000.00 difference.
Now, let's say you lost the 10000.00 but have no capital gains. What the government allows you to do is to deduct 3000.00 of that from your taxable income. So, if you had no taxable income this year, or not enough to have to pay taxes, your are shit out of luck on any tax benefit for that 3000.00, and if you are in the 15% tax bracket, you save 15% on that 3000.00, 25% tax bracket, you save 25% on that 3000.00.
If you have no capital gains next year, you get to deduct another 3000.00 from your taxable income.
If you have capital gains, you get to deduct up to 7000.00 from that capital gains.
Once your 10000.00 has been fully deducted, either from existing capital gains, or by deducting 3000.00 from taxable income for 3 years, and then the last 1000.00 from taxable income in year 4, it's over.
So you see, you actually get back more of the loss if you have a higher tax bracket.
Please, find another tax person. No telling how much money this person you have may be costing you because obviously that person has no clue about tax regs...
ToddWHO2: Jim's last PR clearly shows that it is ignorance of the offense that he is trying to set up as his defense - attempting to blame someone else for doing it and keeping him in the dark.
The language used by the SEC is fairly standard wording. I'm pretty sure that you'd find the same wording in any SEC civil suit. But even if it isn't, it is clear that it is waranted in this particular case.
echogreen: According to the SEC charges, Plant sold hundreds of millions of unregistered shares. You can't do that without the TA - it is the TA that actually issues the shares and makes sure they get to the people Plant was selling them to.
Why CyberKey still went to FOSE: It really is pretty simple guys. As long as Jim is CEO, and his other cohorts are still leaving him in charge, Jim is going to do everything he can to pretend that CyberKey is a going concern. Why'd Dan and the guys actually go? Because they still work for CyberKey, and if they want to keep getting paid, they went.
I don't doubt that some of them are looking really hard for new jobs, as is any other employees are doing, but most people won't walk until they have something.
Yellowdog: Sorry, but I do not have any faith in Dan. As VP of Sales he should have been able to figure out that nothing was being shipped from anywhere to anywhere on any contracts. It is difficult to believe that anyone at that level isn't in on the whole thing.
My 15th message, and thus my last for today.
joenatural: Nobody, and I mean nobody, is going to pay anything for a grey market shell.
An OTC BB shell is one thing, but it cost very little to file the appropriate form with the SEC to get a symbol that at least trades on the pinks.
You did see such a trade:
1:34:42 PM Trade 0.14 250000
It pretty much would have to be an arranged trade because IMNSVHO people don't put up blocks of 250,000 shares at Ask and hope someone will buy them all...
Waitedg: I hated it as well, never a good sign, almost always a harbinger of something bad waiting around the corner.
So now we have even higher volume, at the moment, going back up.
I like the fact that it is green, but I really don't like having mixed (in this case, rather violently mixed) signals, particularly on a penny stock.
Clock ticking on 10K. Due by end of March, with a 15-day extension possible.
ragisme: What would there to be picked up? It's a reseller of other people's products which apparently it hasn't bottered, or can't, pay for.
And nobody is going to pick up a gray market shell, as far as the stock goes.
Leroux: The 5% is probably close to what these suits actually deliver to the affected shareholders.
But the question is how much will be left to carve up in a class action settlement? The SEC is going to take a huge slice of Jim and Cyberkey funds, and the federal courts will take a huge slice out of anything Jim might of had.
Winning anything from others who manage to excape the federal courts is the only real hope, as is the chance that the SEC and Feds make any of the money they get available to harmed shareholders.
No difference in ability to collect.
Yes. You do not have to remain a bagholder. Anyone who bought any shares within the period of time yet to be defined, either for a shareholders classaction, or for any money set aside by the Feds and SEC, and sold those for a loss, can get their appropriate share of whatever pie may actually exist.
If you sold any shares for a profit, and your profit actually is more than the loss you suffer on other sales (like me), you're out of luck, for the most part.
Not to mention all the times he'd talked publicly and privately about how the audited financials were on their way, when the SEC clearly states they were never being done.
And someone who shall remain nameless is still going to hero worship yet another scumbag CEO?
Well at least info about the SEC charges has been posted in the header.
Could we please also have info about the Sequim default, the arrest, and the federal charges filed?
Or will one of the mods delete the SEC charges info soon?
Looks like a lot of the people have no idea about the SEC charges, or the Sequim default.
There certainly appears to me that there is no reason to buy any shares right now at any price.
Supergarvis: The evidence is very strong, and mounting, that there never was any 25M contract, and probably the add-on contract never existed either, and growing stronger everyday.
There is no third-party.
Sorry, they have no such rule. That is up to the judge to decide.
Look at USXP. Altomare has (and still contiues to be) been the CEO since the SEC filed suit in 2004. And the judge ruled in favor of the SEC on all summary judgement requests, yet he still is acting as the CEO.
His disbarment won't be until the judge officially announces the penalties, which should happen soon.
So, if Jim really is in total control, like Altomare is at USXP, he ain't going anywhere for awhile.
Double Wow - Looks like CyberKey will have serious problems finding products to sell other than their non-biometric USB flash drives.
Unless they pay for product up front, and I wonder where they'll get that upfront cash, particularly after the SEC takes them to the cleaners.
Ouch...
Wow - This is the quickest I've ever seen the SEC move from start of an investigation to filing charges.
This represents the death knell for the company, since not only Jim will be fined, but the company will be fined heavily, as well.
Bankruptcy won't help.
Please continue to post a link to that info when you make statements about Sequim apparently not doing business with Cyberkey anymore.
Cyberkey is not listed as a distributor or partner anywhere in that presentation. Doesn't mean CyberKey isn't buying product for resale, but it doesn't give me any warm and fuzzy feelings about their 'partnership.'
jack of stocks: I have no doubt that if CyberKey is laboring under the worse possible scenario, it would be possible that they don't have enough money to pay for product they've bought from Sequim.
That said, please provide a link to verifiable information that Sequim is in fact no longer doing business with CyberKey. I don't believe in this company, but I don't believe it is right for anyone to make a statement such as you have without verifiable proof.
TIA for that link.
psych7: Yep. And they took away the info about Jim's arrest.
Biased? Nah, no evidence of that...
I browsed your postings but I didn't open every one, obviously. I don't doubt that you made such a post, but my browsing couldn't find it, so if you could ID the post number, I'd appreciate it.
TIA...
Robtff: The catalog I see has an effective date of Feb 8th (I believe - not looking at it right now), and the PR about Alpha Data is dated Feb 21st.
I don't remember seeing one that had cyberkey's stuff in it, and if they did edit it, they need to refile the catalog with GSA, and the date of that file would be after Feb 21st, for sure.
They're still for sale at GSA is all I know (though I can't actually try to order one because I'm not someone who would have GSA priveledges).
I have to wonder if today's .0001 trades are really people selling at that price, or people who made a 'fat-finger' trade with one too many zeros...
GamblerNC: CyberKey's products are still listed on the GSA Advantage site for purchase from Alpha Data:
https://www.gsaadvantage.gov/advgsa/advantage/main/start_page.do
Do a search for cyberkey in the upper left corner.
I can find a PR about him coming on board last November as VP of Sales, but nothing available through a search about him becoming a member of the Board.
Danno123: You haven't heard anything back from Mike, have you? Well, I know the answer to that is 'No' because had you, we'd all know about it.
I don't understand Mike's reluctance to say whether he is or is not working on the auditing. If he isn't, I'd think he'd want to distance himself from the whole mess. If he is, I'd think that Plant (or whoever is in power) would want him to answer yes.
A bit perplexing...
faster183: Decided to swing trade this one just like in the really old days for THTH.
Got trapped in my last swing trade when the SEC halted trading, but worse case, I'll still walk away with about 11K (21K in best case, which doesn't look like that will happen).
Talk to on THPHF one of these days...