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The only thing promised by SIRG's CEO is that he will build the company and he asked us to have patience.
Taken at the Chloride Copper Mine.
In 2013, SIRG will have the mine in production and copper cathodes will be produced - producing revenues.
On the day production begins, SIRG has a contract with Mr. Rowland to begin the search for an acquisition or JV to grow the company.
Michael Rowland, Member #225364 of the Australasian Institute of Mining and Metallurgy (Ausimm) and Qualified Person (Q.P.) for the form 43-101F1. (Great to have a Q.P. on staff.)
Private consultant in mining geology including photo geology, geotechny, and hydrogeology. He served as Project Manager in the Dynasty gold field, exploring and drilling for gold, silver and copper.
Prior to 2004, he worked for companies such as COGEMA from France,RUMICURI from Ecuador, ECUASAXON and Minera Australiana from Canada and Australia, Vicente Coronel Compania from Ecuador,Petro-Canada, Fougerolle from France, Coyne et Bellier from France, and the Department of Commerce of France.
He received a Geologist Engineer degree in 1973 from Escuela Politécnica Nacional, Quito, Ecuador, a Master degree in Geology from Dijon University, France, in 1961, and a Bachelor degree in Geology from Paris University in 1960. His skill and extensive experience in exploration and exploitation phases of mining operations qualify him to discover the next project for SIRG.
It is my opinion that Rod has secured the funding SIRG needs, but with a permit contingency. When the permits are approved, the funds will be released so those two events could be PRd together.
We all know how stingy Rod is when it comes to releasing PRs.
Actually the SIRG ship has been sailing along just fine.
In 2012 they have moved forward with the following events accomplished in their goal to return the Chloride Copper mine to production.
Jan - hired Travis Snider as Sr. VP of Operations at the mine.
Feb. - Hired Paul C. Rizzon & Assoc to assist with the permitting process pit engineering and the new heap leach pad.
Filed their revised MOP with BLM Kingman office.
May - Added Barton Budman and Carlos Cordon the the Board of Directors.
Appointed Barton R. Budman, as Chief Financial Officer of our Company.
June - Launched their new website.
Hosted a town hall meeting in Chloride for the locals, officials and GLM agents where Rod announced a Jan/Feb target to begin production.
While there, Rod awarded a contract to Desert Construction of Kingman to handle the dig, load and haul part of the operations.
These events indicate that funding has been secured but likely with a permit contingency.
SIRG is not an exploration company and therefore would never need a POO. A POO is for companies out searching for ore. SIRG is way past that stage of building a company, has the ore reserves proven and is building a real mining company.
SIRG will be a full production mining company and as such SIRG needed an MOP. A revised MOP was done by Paul C. Rizzo & Assoc and submitted in Feb. BLM asked for some revisions and they were completed and the revised MOP was approved in June.
Problems were discovered at two nearby mines when they were caught operating without proper permits. One of them was fined $1,300,00! The other recently received two NOVs.
Because of these problems, BLM decided to put Sierra under the microscope and asked that a DEIS be filed. The other two mines were not required to do a DESI so that was something Rod had not expected.
Unlike gold mines, the copper at the Chloride Copper mine is easily visible just laying on the ground.
The copper deposit is hosted by Late Tertiary conglomerates and, to a lesser extent, by Quaternary alluvium and Cretaceous granitic rocks. Copper mineralization at this property is in the form of mineralized lenses contained within a paleochannel a few thousands of feet long and up to 750 feet wide. The source of copper is interpreted to be the low grade porphyry-type copper mineralization at Alum Wash, about 3.5 miles northeast of the Chloride deposit. The mineralization is characterized by dark blue to black rock similar to the Exotica deposit, a satellite of the huge Chuquicamata copper deposit in Chile.
Past exploration (seismic survey by Arimetco) results suggest that a paleochannel similar to the one hosting this deposit may be present south of the current open pit however there can be no assurance at this time that such a paleochannel actually exists.
Just got great news. One of the SIRG longs followed through with Ross Miller, the Sec. of State in Carson City, NV. and got the Certificate of Correction.
Doc. Number 20120283793-37 filed on 4/24/2012 10:05 AM.
It is in PDF format and our converter is offline but it will be converted to JPG and WILL be posted on the board.
Glad to clear the misconception up with proof that SIRG notified Nevada SOS when they said they did.
Facts are so important!
Since Paul Lovito was the previous CEO of GDSM and the brother of Marc Lovito his history is relevant and GDSM investors should be aware of the facts.
On July 9, 2002, the plaintiff filed a complaint against Edward H. McCluskey, William Barnett, and Paul Lovito for breach of fiduciary duty, breach of duty of loyalty, and fraud. On November 4, 2002, the plaintiff filed a motion for extension of time of 60 days to serve the complaint. He alleged that at least one defendant had been served, and that the process server was attempting to serve the other two defendants. The plaintiff asked for more time in case they were not served within the requisite 120 days. See Fla. R. Civ. P. 1.070(j). On November 4, 2002, the trial court gave the plaintiff sixty days in which to serve the complaint.
The plaintiff attached an affidavit from the process server attesting to these facts. The process server's affidavit indicated that he had spoken with Lovito's mailman who told him that Lovito and the “LBI Group” moved on a regular basis. The mailman had come across Lovito and the group on different routes. According to the mailman, Lovito never stayed anywhere for longer than two months, and the landlords were also looking for him. The plaintiff alleged that he had exhausted his efforts, which included checking public records, the telephone directory, and using two process servers.
If Paul Lovito had nothing to hide why was he hiding from the process server??
Paul F. Lovito Jr. has been the Chairman, President, Chief Executive Officer and Director of the Company since September 2001. Mr. Lovito has been President and Chairman of LBI Group, Inc., a business consulting company, since June 1994. Mr. Lovito is Chairman and Chief Executive Officer of LBI Properties, Inc., a development stage real estate holding company, a position he has held since February 1998. He also serves as Chairman of LBI E Web Communities, Inc., an internet holding company, a position he had held since June 2000. Mr. Lovito has been the Chairman and President of LBI Asset Management, LP, a Delaware partnership, which provides management, services to the related companies, a position he had held since July 1998. Mr. Lovito is also the general partner in LBI Capital Partners, LP, a hedge fund, a position he has held since July 1998. All of the foregoing entities are located in Coral Springs, Florida.
Marc A. Lovito has been a Vice President and Director of the Company since September 2001. He has been a Vice President with LBI Group, Inc., since June 1994. Mr. Lovito is President of LBI Properties, Inc., a position he has held since February 1998, and Vice President of LBI E Web Communities, Inc. Mr. Lovito is also a partner in LBI Asset Management LP and LBI Capital Partners LP, positions he has held since July 1998.
http://www.reuters.com/finance/stocks/companyOfficers?symbol=GDSM.PK
http://caselaw.findlaw.com/fl-district-court-of-appeal/1081524.html
http://www.4dca.org/june2004/06-16-04/4d03-3190.pdf
Several non investors have provided the best research the GDSM investors have ever seen.
If the results of their research are not positive, like the facts revealed in the POO, that is sad and GDSM investors had expected so much more. They were looking for $1.00 a share on GDSM and it is not going to happen.
There are just too many problems with the current GDSM/WSRA JV and the fact that two previous JVs with WSRA failed does not help the situation.
Research provided by at least 3 independent posters has nothing to do with any other board.
It is not even known when GDSM and WSRA will get all their permits.
A backhoe and trommel like this placer operation will not be allowed on the Gold Crown but the God Star should be no problem But just look at the destruction to the land that will all need to be restored to its previous pristine condition.
Placer mining is the most destructive mining operation because it destroys such vast areas of a claim.
This is about the same terrain as Skull Valley and shows what a real placer mine is. They can produce 90T an hour.
Where would GDSM and WSRA get the funds to build an operation like this. No problem, I doubt BLM would permit that total destruction of its land.
www.youtube.com/watch?v=j3VPGGhai2s
That's what peeps were cheering about when they grabbed those .004s.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=74278250&txt2find=cheapies
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=73818926&txt2find=cheapies
that .018 sell at 265k exactly is funny. l2 retail move to get cheapies. naughty naughty,
Every time the MM's bring this down to the 1 cent area, huge buys go off... I saw a few for 2M shares each. Sounds like the big dogs are having MM's just get them cheapies before they let it rip. I'm counting on the 1 cent support and holding strong. 1 minute chart has almost a quadruple bottom happening, and it's been descending all day, so it's going to break out in one of the 2 directions, and I'm hoping it's to the upside.
That 404 deals with disturbing the stream that runs through Mexican Gulch and the Clean Water Act. It is likely the best place to discover small pockets of placer gold that has washed down from the mountains.
A stream like this would likely be the best place to find gold.
They will not allow pollution or stream bed erosion that could carry sediment down stream.
Say they have a small backhoe digging in the stream bed and it ruptures a hydraulic line or has an oil leak. That would be a very serious problem as it would pollute the stream bed.
Without the 404 permit GDSM would be limited to panning for gold in the Mexican Gulch streambed.
Or they could use a small sluce if there is enough waterflow.
Better than carrying the gravel out in 5 gal. buckets.
So another fluff GDSM PR is expected next week. It is not smart to make predictions like that because if Marc fails again to produce GDSM could be back in the trips by next Friday.
And that possible additional venture with GDSM is just pure 100% fluff. They don't even have the current JV adventure under control and are not financially able to take on additional projects.
GDSM has put forth the $600,000 in cash,
ooking at 404 permits that gdsm has to get ,statistic 89 % of applications get turned down because of environmental issues
GDSM is going to be one of the only really big splashes in the investment banking world once they start mining operations.
According to Jenkins report from 2005, the Mexican Gulch area was mined in the 1980s and the photo of the water pond shows it. How do people know that those 1980 miners didn't already remove most of the gold. This is a rerun of a previous mining operation with no proven reserves.
What mining operations are they going to start and when? Every date for phases has gone by and still waiting for sample results.
They have no proven ore reserves on either claim and there is no proof that there is enough gold to sustain a mining operation for other than a couple of recreational prospectors. Lots of them use metal detectors to find nuggets.
Today's machines can detect gold as small as a half a grain with ease. The depth of detection grows with the size of the target. A one grain nugget may be found at two inches, a match head size nugget at four inches, and a quarter ounce nugget at ten inches. Only the largest nuggets will be found at depths over a foot. Metal detectors will not normally find buried accumulations of fine gold directly.
Great gold finding video filmed in Arizona - must watch, very educational.
Potential investors in GDSM should be aware that GDSM was pumped in Jan and Feb. all the way up to .034 and that on March 1st it traded an insane volume of 166,832,561 shares and on March 2nd 111,729,990, the share price dropping both days as traders and momo players raced for the exits. By March 12th GDSM had returned to sub-penny prices.
Sadly many traders failed to exit their positions and have ended up as "investors" in a company with no mining claims, no mining equipment and their only asset is a JV with WSRA that has claims with questionable ore resources as there are no assay reports to show that those claims are worth the maintenance fees that are going up 800% in Sept.
The classic pump and dump spike is clearly visible and GDSM has a lot more to drop to return to pre-pump prices which is where most of the pump and dumps eventually do. To invest in a company after the pump is not smart investing.
For most of 2011, GDSM traded in the trips, not good for those who bought in 2009 when GDSM and WSRA announced the two previously failed JVs.
GDSM/WSRA would be permitted to build roads on the BLM claims but that would involve another set of permits and a huge expense.
A dirt path can be seen in this photo to the well but it does not look adequate to handle larger water trucks.
With terrain like this to deal with it would take months to survey, get permits, and build the road.
EXPLOSIVE NEWS" on the horizon
GDSM is a non reporting SEC company and those financial REPORTS are not SEC "FILINGS".
Please verify who and where those "filings" were filed with. What SEC regulatory agency depository is holding those filings?
Why is GDSM the 6th company to try to make a success out of these failures? Nasty track record.
Gold Coast Mining Corp.
Formerly=Hot Web, Inc. until 7-2009
Formerly=Snap 'N' Sold Corp. until 9-06
Formerly=Raptor Investments, Inc. until 7-05
Formerly=Paramark Enterprises, Inc. until 11-01
Formerly=T.J. Cinnamons, Inc. until 8-96
From 2005 until January 2009 the Company focused its efforts on its online properties and operations, including Snap N’ Sold, Inc. (an eBay drop store chain) and Hot Web, Inc. (an online auction/classified network of websites). In 2008 Jason Cooper, a business consultant and shareholder, became CEO of the Company and shifted a large part of the Company’s focus and resources towards mining opportunities accessible to the Company.
In January 2009, the Company entered a joint venture agreement with Western Sierra Mining Corp. (“WSRA”) for several mining properties owned or controlled by WSRA.
In January 2009, the Company sold its websites. The transaction resulted in the Company receiving 29,400,000 common shares of Max Media Group, Inc., which is publicly traded on the Pink Sheets under the symbol MXMI.
In February 2009 the Company's Articles of Incorporation were amended to change the Company’s name to Gold Coast Mining Corp.
From cinnamon buns to a wannabe gold miner, GDSM has failed every step of the way.
From September 2009 to December 2010, the Company pursued financing for its Ore Cache and Sun Gold Mine Joint Venture Projects, as well as several joint venture opportunities available to the Company.
WoW - I didn't realize that GDSM tired for a year and 3 months to get funding and still failed in all that time??
Although the Company received numerous financing opportunities, they involved substantial dilution (probably Asher) and the
requirement for a reverse split of the Company’s common stock. Management agreed to not accept any toxic financings or proposals requiring a reverse split and therefore rejected these potential funding sources. Additionally, management has and continues to review other opportunities in various industries in an effort to
stay diversified and bring value to its shareholders.
I know its difficult but let's paint a different picture here. By not getting the funding, GDSM passed the opportunity to be rolling in the gold today. Just think of the share price IF GDSM had not failed but instead became a major gold mining company. But they failed because they did not have the foresight to bite the bullet and move forward. The Lovitos "protected" their shareholders but what did it get them?
GDSM accepted funding by convertible notes from Asher in Oct of 2009. The JV went great with WSRA and both the Oro Cache and Sun Gold mines were developed and are currently producing revenues in the millions of dollars every month. Dore bars are being pored daily and they are approaching the 24,000 ounces that the Oro was shown to have in indicated reserves. The Sun Gold was indicated to have 234,500 oz of Au oz/t of .41 - outstanding and a very high grade vein. Production started there in 2010 and it has already produced 40,000 oz of gold by now.
Pretty picture but GDSM failed to get any funding and lost both of those opportunities!
Those gold estimates, etc. can be verified here.
http://www.westernsierramining.com/minesForSaleLease.htm
These Brokerages are restricting SIRG because its a scam! They are trying to protect investors from getting burned by SIRG with all the new dilution that is headed this way. Anytime a stock falls from a dollar to Sub penny in less than a year is always a bad sign for investors. Now they increased the authorized share structure. Too bad for investors. The best thing anyone could do is hope to get out on the next pump or sell for a loss now before it goes any lower.
Certainly I have, I live in copper country - Arizona is the Copper State. I have toured several copper mines here including the underground Copper Queen mine in Bisbee. SIRG's Chloride mine is above ground, an open pit mining operation.
Asarco also offers tours and it is about an hour from our home. It is a huge operation. Anyone visiting the Tucson area would find this an interesting and educatioal experience. I highly recommend it.
http://www.mineraldiscovery.com/
To "see" it one has to know what to look for and what raw copper looks like. Clue - anodized copper has a lovely turquoise patina. This can be seen on copper domes, rooftops, rain gutters and downspouts on old homes. This is copper returning to its natural state.
As copper ages, it forms a patina or film on the surface which is produced by oxidation. This process occurs over a long period of exposure to the atmosphere. The colors produced depend entirely on the location. For example, an area with a dry climate will produce a different patina than coastal or marine locations. The natural patina process can take many years to achieve.
The above picture was taken near the Chloride Copper Mine pit.
A beautiful copper dome that will last hundreds of years.
Do you see the copper now?
But that flipping of GDSM shares has not worked well since March unless one is doing backward flips. Those who bought GDSM to flip have lost over 30% of their investment and as the downward spiral on GDSM's stock price continues, without a strong reversal, they will lose more.
Most flippers set a 10 to 20% loss limit on a flip investment and I would think they are the ones who have been selling. Others have averaged down hoping to find a way to recover their investment.
I see only a couple of flip trades that would have worked. For example, GDSM could have been bought on May 30th at .003 but the volume that day was a measly 392,170 shares, a peanut amount for a flipper. They could have sold those .003s on July 10th at over .005 when over 7M shares were dumped.
The share price has now dropped below the 50 MA and the RSI is down to 40, both bad indications of where GDSM is heading.
GDSM, has been a great long term investment,(those are facts).
More research should be done and a complete study of the effects of using Asher Enterprises for start up funding. Start with a search of the SEC filings and you will discover that Asher has provided funding for over 800 companies. Despite the dilution caused by the Asher notes, SIRG has continued on its upward climb to penny land in 2012.
The SIRG stock chart clearly shows the rise from .001 on Feb 15th to .017 in June after SIRG launched their new website.
When starting a company like SIRG funds are a required prerequisite as everyone knows it takes money to make money.
SIRG had the funding with Harmony Mining for the Chloride Copper Mine start-up expenses. However the BOD voted that funding down and banks were not rolling out the red carpets to fund start-up mining operations. Had the BOD accepted that funding agreement there would have been no reason for any more Asher notes.
But things did not go the optimal route and like most other junior mining companies another source of temporary funding was required.
SIRG was very quiet from Oct until March 11th when it PRd the hiring of Travis Snider and Paul C. Rizzo to begin the process of returning the Chloride Copper mine to production.
Travis Snider, Senior VP of Operations at SIRG.
Engineering For the Future
Paul C. Rizzo Associates, Inc. (RIZZO) is an award-winning, highly focused firm specializing in all aspects of the civil engineering and earth sciences fields for the dams, nuclear power plants, and tunneling markets. For over a quarter century our firm has worked around the world on unique, challenging, and technically demanding projects. We take pride in our commitment to providing personal and professional services in a responsive, high quality manner, and continually strive to exceed our clients’ expectations by providing innovative and economically smart solutions.
Many of our engineers and scientists are registered professionals with advanced degrees in their respective fields of study. Embracing a hands-on approach with our projects, staff, and clients, they routinely mentor our emerging engineers to ensure we provide an unwavering level of service. At RIZZO, we believe this blend of seasoned engineering experts and bright, young talent is essential when engineering for the future!
SIRG hired an international award winning company to assist in the permitting and engineering needs to return the mine to production.
The goal for the open pit at the Chloride mine will be to turn this
into this. Notice the copper just laying on the ground!
Too funny! How long is it expected to take to verify a legal document that has the Arizona State Land Dept logo on it along with Mr. Chaffee's signature? When can we expect to see verification.
I notice that the POO was applied for in Western Sierra Mining Corp's name with Don Jenkins as the directing geologist and the Plan Number is 08-115459, dated April 15th 2011.
I just enlarged it and I see this:
Date of Permit Issue: 4/15/11
Wait a minute - that is 10 months before the JV with GDSM was announced and when Jenkins was still a registered CPG. Something sure smells fishy to me.
DENIED - OMG they failed to submit the requested bugs bunny and weed report!
But Mr. Chaffee was able to get the POO approved a year later by transferring the lease to himself.
Actually bucket mining in Arizona is not all that rare. There are prospecting clubs that do panning and bucket mining.
Those pails sure do look heavy!
At least SIRG releases complete SEC filings, SIRG is a fully reporting OTCQB company. The SIRG longs read and discussed the filings in May - months ago. Nothing new and nothing we didn't already know. To see that discussion go the posts for that time frame.
Those filings were all "A" filings and the originals were filed months ago. People unfamiliar with fully reporting OTC might not understand them.
The Company issued Mr. Stonehouse and Mr. Juilland each an option to purchase 419,178 shares of Class A Common Stock at an exercise price of $0.051 per share which represents the accrued board compensation as approved by shareholders on April 21, 2011 and disclosed in the Company’s 8-K filing on April 27, 2011.
On March 9, 2012, former Director James Stonehouse and the Company entered in to a settlement agreement and general release of claims whereby all debt of approximately $106,000 owed by the Company to Mr. Stonehouse were satisfied in exchange for 250,000 options at an exercise price of $0.05 per share.
Mr. Timothy Benjamin shall also receive a stock bonus epresenting up to an additional 20 million option shares exercisable at $0.05 per share. Mr. Benjamin held supervisory positions with the Federal Reserve Bank of Atlanta for six years. He received his MBS in 1995 and his Bachelor's of BA in 1989, both from Florida International University.
On June 7, 2011 the Company issued Michael Rowland as consultant for the Company, 300,000 shares of the Company’s Common Stock in consideration for his services to the Company. The Company recorded professional expenses of $6,000 based on the market trading value of the shares on the date of issuance.
Actually I made the mistake of buying this fraud last Feb. but sold with only a $20 loss after doing my usual research. I removed myself as Mod because I didn't want to be connected to this scam. I tried to short it at $1.05 but could never find any shares to borrow! Dam that would have been a great trade.
If I remember, gitreal found me here a couple of months later, maybe around April.
Another Gold Mining Scam!
Will people never learn?
7/20/2012 @ 12:04PM
The Securities and Exchange Commission (“SEC”) charged a Nevada company with operating a fraudulent investment scheme that lured investors with the promise of a 35,000% return on an investment in an $11 billion gold mine. 3 Eagles Research and Development, LLC (“3 Eagles”), along with Harry Dean Proudfoot III and his children Matthew Dale Proudfoot and Laurie Anne Vivilo (collectively, the “Proudfoots”), were charged with multiple violations of federal securities laws in connection with the scheme, which raised at least $2.7 million from over 100 investors nationwide. The SEC is seeking injunctive relief, disgorgement of all ill-gotten gains, and civil monetary penalties.
3 Eagles was formed by Harry Proudfoot in April 2008. Shortly after, Proudfoot hired his children Laurie and Matthew in various executive positions. From September 2009 to October 2011, 3 Eagles solicited potential investors to purchase royalty units for a purported Ohio mining project. One royalty unit consisted of a $5,000 investment and entitlement to a portion of future gross mining profits. According to 3 Eagles, investors were told they could receive a return of 35 times their original investment!
Through Power Point presentations distributed via email, UPS, and in-person meetings, investors were given an outline of the project, which included representations that 3 Eagles had an expert geologist team and had obtained an exclusive license to extract mineral deposits in over 300 acres of land in Ohio. According to 3 Eagles, the land had a “$11,250,000,000.00 gross value”, and would generate approximately $1.6 million in gross monthly revenues once a “pilot plant” was built and preliminary production started in late 2010. Based on these representations, the company raised nearly $3 million from 140 investors in 23 states.
However, according to the SEC, these promises were “flat out lies.” Investor funds were not used to build a pilot plant, purchase mining equipment, or to operate any gold mine in Ohio. There was no “geology expert”, nor did there exist a mineral rights lease to any property. Instead, more than $1 million of investor funds was misappropriated by the Proudfoots to support lavish lifestyles that included $245,000 for personal travel, clothing and medical expenses, nearly $100,000 in automobile costs, and $30,000 annually for vitamins and nutritional supplements. Additionally, Matthew Proudfoot used investor funds to make monthly personal bankruptcy payments. As a result of the numerous unauthorized expenditures, only $38,000 remained as of September 2011, and 3 Eagles never purchased or installed mining equipment or commenced mining operations.
The SEC also accused 3 Eagles of failing to disclose numerous red flags to potential investors, including prior regulatory actions against Harry Proudfoot that included prior cease-and-desist orders issued by regulators in Alaska and Oregon concerning the sale of unregistered securities in violation of state law. Additionally, Harry Proudfoot had previously been issued a cease-and-desist order by Oregon regulators for an unrelated failed gold mining scheme in Canada.
Indeed, a simple Google search for “Harry Proudfoot” yields a link to an Oregon cease-and-desist order detailing a scheme in the early 1990's involving investors “loaning” over $200,000 to Proudfoot with the promise of 15% returns supposedly secured by “bonuses” due to Proudfoot. None of those loans were fully repaid.
A copy of the SEC’s Complaint is here.
A copy of the Oregon cease-and-desist order is here.
Jordan Maglich is an attorney at Wiand Guerra King P.L. in Tampa, Florida whose practice includes white-collar crime and securities and financial litigation. He also covers Ponzi schemes on his blog, PonziTracker. Follow him at @PonziTracker.
http://www.forbes.com/sites/jordanmaglich/2012/07/20/sec-says-company-offering-investors-35000-return-for-investment-in-11-billion-gold-mine-was-a-fraud/?feed=rss_home
http://www.sec.gov/litigation/complaints/2012/comp22416.pdf
Another Gold Mining Scam!
7/20/2012 @ 12:04PM
The Securities and Exchange Commission (“SEC”) charged a Nevada company with operating a fraudulent investment scheme that lured investors with the promise of a 35,000% return on an investment in an $11 billion gold mine. 3 Eagles Research and Development, LLC (“3 Eagles”), along with Harry Dean Proudfoot III and his children Matthew Dale Proudfoot and Laurie Anne Vivilo (collectively, the “Proudfoots”), were charged with multiple violations of federal securities laws in connection with the scheme, which raised at least $2.7 million from over 100 investors nationwide. The SEC is seeking injunctive relief, disgorgement of all ill-gotten gains, and civil monetary penalties.
3 Eagles was formed by Harry Proudfoot in April 2008. Shortly after, Proudfoot hired his children Laurie and Matthew in various executive positions. From September 2009 to October 2011, 3 Eagles solicited potential investors to purchase royalty units for a purported Ohio mining project. One royalty unit consisted of a $5,000 investment and entitlement to a portion of future gross mining profits. According to 3 Eagles, investors were told they could receive a return of 35 times their original investment!
Through Power Point presentations distributed via email, UPS, and in-person meetings, investors were given an outline of the project, which included representations that 3 Eagles had an expert geologist team and had obtained an exclusive license to extract mineral deposits in over 300 acres of land in Ohio. According to 3 Eagles, the land had a “$11,250,000,000.00 gross value”, and would generate approximately $1.6 million in gross monthly revenues once a “pilot plant” was built and preliminary production started in late 2010. Based on these representations, the company raised nearly $3 million from 140 investors in 23 states.
However, according to the SEC, these promises were “flat out lies.” Investor funds were not used to build a pilot plant, purchase mining equipment, or to operate any gold mine in Ohio. There was no “geology expert”, nor did there exist a mineral rights lease to any property. Instead, more than $1 million of investor funds was misappropriated by the Proudfoots to support lavish lifestyles that included $245,000 for personal travel, clothing and medical expenses, nearly $100,000 in automobile costs, and $30,000 annually for vitamins and nutritional supplements. Additionally, Matthew Proudfoot used investor funds to make monthly personal bankruptcy payments. As a result of the numerous unauthorized expenditures, only $38,000 remained as of September 2011, and 3 Eagles never purchased or installed mining equipment or commenced mining operations.
The SEC also accused 3 Eagles of failing to disclose numerous red flags to potential investors, including prior regulatory actions against Harry Proudfoot that included prior cease-and-desist orders issued by regulators in Alaska and Oregon concerning the sale of unregistered securities in violation of state law. Additionally, Harry Proudfoot had previously been issued a cease-and-desist order by Oregon regulators for an unrelated failed gold mining scheme in Canada. Indeed, a simple Google search for “Harry Proudfoot” yields a link to an Oregon cease-and-desist order detailing a scheme in the early 1990's involving investors “loaning” over $200,000 to Proudfoot with the promise of 15% returns supposedly secured by “bonuses” due to Proudfoot. None of those loans were fully repaid.
A copy of the SEC’s Complaint is here.
A copy of the Oregon cease-and-desist order is here.
Jordan Maglich is an attorney at Wiand Guerra King P.L. in Tampa, Florida whose practice includes white-collar crime and securities and financial litigation. He also covers Ponzi schemes on his blog, PonziTracker. Follow him at @PonziTracker.
http://www.forbes.com/sites/jordanmaglich/2012/07/20/sec-says-company-offering-investors-35000-return-for-investment-in-11-billion-gold-mine-was-a-fraud/?feed=rss_home
http://www.sec.gov/litigation/complaints/2012/comp22416.pdf
Same here, there are several boards more suited to these kind of posts.
Incredible that Hondo still has not filed an 8K. Just shows their disreguard for the laws of Arizona and the SEC.
They got away with that last pump because it was prior to the defaults and the facts becomming known.
Won't work again!
Only one company out of hundreds who have corrected all issues has been able to get the chill lifted. SUGO is not that one and the officers will sit around until the convrtible note money is gone and SUGO will revert to being an empty shell.
Started following SUGO in Feb of 2011 and that qualifies as long term.
I almost bought this POS when it was trading over .05!
SUGO is a 2 man operation out of an apartment in R.I. who was buying claims on Conglomerate Mesa, a mountain peak off HY 395 above Owens Valley is Ca.
I quickly did my research and realized that the LAWD had spent almost 1/2 BILLION dollars to remove dust that is the result of draining Owens Lake for LA water. There is no way SUGO would ever get a permit to destroy that mountain top with an open pit mine and create tons of dust that would drift down into Owens Valley.
No funding even for exploration test permits, SUGO finally defaulted on their mining claims and lost them. All the toxic convertible notes have continued to pay the officers salaries while they did nothing except mine investors' wallets.
SUGO is exactly where it belongs and every share you buy gives those noteholdrs a 40% porfit.
There are good potential stocks out there, this is not one of them.
Try another broker - only TDA, Zecco and Sogo Trade are restricting their customers from buying SIRG. E*Trade, Scottstrade, and dozens of other top brokers allow trading with no restrictions.
Some brokers may choose to charge an additional fee when buying or selling DTCC chilled stocks like SIRG.
Check out Just2Trade - commissions only $2.50 - can't beat that. No DTCC chill issues and I have added SIRG shares every month.
SIRG already had enough shares in the electronic system that they can be easily transferred but many small companies, especially thinly traded pinks so not so that creates the problem for trading those companies.
That had to be some kind of computer glitch. I put in an order at .0017 but it will never get filled.
NO he bought his SIRG shares on the open market, and added around April 2nd at under .002. Volume that day was 15,940,000 million shares traded so he bought a lot.
If he bought restricted shares they would have to have been sold from the company treasury, correct?
YIKES I got to run and LOAD THE BOAT - what a steal at that price.
Hurry and grab the cheapies!
SIRG actually received the DTCC chill notice late last Nov. Since then the stock rose from .016 to penny land. The chill had no effect on SIRG's ability to return to penny land and all issues involved with the chill have been resolved.
Some of the insiders share count was incorrect and they actually owned more shares than was reported. This was likely the result of them adding shares but the records were not properly updated.