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OTCRICK Richard McCaffrey is a natural person http://www.sec.state.ma.us/sct/sctnat/eiten_complaint.pdf
By: rickotc
17 Oct 2006, 10:29 AM EDT
Msg. 25922 of 26881
(This msg. is a reply to 25919 by stockmasterflash.)
Jump to msg. #
To stockmasterflash:
again I repeat........................I would like to remind everyone that any complaints about Eiten are currently being handled through all appropriate legal channels. I have worked for OTCFN and closely with Eiten now for over 8 years and I can personally tell you that he exemplifies forthrightness in all his business practices and fully discloses his interests in any deals he backs. Again, I would be glad to answer specific questions you may have on Ingen or Eiten. You can reach me at 781-444-6100x625 or email rick@otcfn.com.
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http://ragingbull.quote.com/mboard/boards.cgi?board=IGTG&read=25922
Let's Talk Recovery, Inc. Announces Joint Venture Agreement to ...
Contact: Investor Relations for LKRV Aurora Venture Communications Group, LLC James A. Romero 1-(866)-360-1643 lkrv@avcg.net www.avcg.net/profile/LKRV ...
findarticles.com/p/articles/mi_pwwi/is_200610/ai_n16809964 - 33k - Cached - Similar pages
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SECURITIES AND EXCHANGE COMMISSION Washington, D.C.
SECURITIES EXCHANGE ACT OF 1934 RELEASE NO. 57486 / March 13, 2008
The Securities and Exchange Commission announced the temporary suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934 (the "Exchange Act"), of trading of the securities of the following 26 companies at 9:30 a.m. EDT on March 13, 2008, and terminating at 11:59 p.m. EDT on March 27, 2008: Andros Isle Development Corp. (AVPJ) of Miami, Florida; Asante Networks, Inc. (ASTN) of San Jose, California; Beluga Composites Corporation (BGCC) of Montreal, Canada; Cobra Energy Inc. (CBNG) of Boynton Beach, Florida; Complete Care Medical, Inc. (CCMI) of Houston, Texas; Disability Access Corporation (DBYC) of Las Vegas, Nevada; El Alacran Gold Mine Corp. (EAGM) of Toronto, Canada; Extreme Fitness Inc. (EXTF) of Penrose, Colorado; Gaming Transactions Inc. (GGTS) of Vancouver, British Columbia; Global Equity Fund, Inc. (GEQF) of Vancouver, British Columbia; HealthSonix Inc. (HSXI) of Irvine, California; IQ Webquest, Inc. (IQWB) of Fort Lauderdale, Florida; JSX Energy Inc. (JSXG) of Hong Kong, China; Kensington Industries, Inc. (KSGT) of Burnsville, Minnesota; Kingslake Energy Inc. (KGLJ) of San Antonio, Texas; L International Computers Inc. (LITL) of Santa Barbara, California; Let’s Talk Recovery Inc. (LKRV) of Beverly Hills, California; Mobilestream Oil, Inc. (MSRM) of West Berlin, New Jersey; Mvive, Inc. (MVIV) of Toronto, Canada; Native American Energy Group Inc. (NVMG) of Forest Hills, New York; Paramount Gold and Silver Corp. (PZG) of Ottawa, Canada; Regal Technologies Inc. (RGTN); Remington Ventures, Inc. (REMV) of New York, New York; Straight Up Brands, Inc. (STRU) of New York, New York; Transglobal Oil Corp. (TRGO) of Santa Teresa, New Mexico; and Turquoise Development Company (TQDC).
The Commission temporarily suspended trading in the securities of the 26 companies because of questions that have been raised about the accuracy and adequacy of publicly disseminated information concerning their status as publicly-traded companies. Certain persons appear to have usurped the identity of 26 defunct or inactive publicly traded corporations, initially by incorporating 26 new entities using the same names as each of the defunct entities, and then by obtaining new CUSIP numbers and ticker symbols for use by the newly incorporated entities based on the apparently false representation that they were duly authorized officers, directors and/or agents of the original publicly traded corporations.
The Commission cautions brokers, dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the suspended companies.
Further, brokers and dealers should be alert to the fact that, pursuant to Rule 15c2-11 under the Exchange Act, at the termination of the trading suspension, no quotation may
be entered unless and until they have strictly complied with all of the provisions of the rule. If any broker or dealer has any questions as to whether or not he has complied with the rule, he should not enter any quotation but immediately contact the staff in the Division of Trading and Markets, Office of Interpretation and Guidance, at (202) 551-5760. If any broker or dealer is uncertain as to what is required by Rule 15c2-11, he should refrain from entering quotations relating to the securities of any of the foregoing 26 companies until such time as he has familiarized himself with the rule and is certain that all of its provisions have been met. If any broker or dealer enters any quotation which is in violation of the rule, the Commission will consider prompt enforcement action.
If any broker dealer or other person has any information that may relate to this matter, he should contact John Polise, Assistant Director, Division of Enforcement of the Securities and Exchange Commission by calling 202-551-4600 or sending an email to ENF-26suspensions@sec.gov.
PirateStockTV pumping penny stocks on CNBC
http://www.bloggingstocks.com/2008/03/28/piratestocktv-pumping-penny-stocks-on-cnbc/
Posted Mar 28th 2008 5:46PM by Zac Bissonnette
Filed under: Television
I was stunned when I saw an advertisement from an outfit called PirateStockTV.com on CNBC pitching an unknown microcap trading on the Pink Sheets -- this being CNBC, a network that is supposedly the leader in serious business news.
You can watch the ad here. The narrator advises viewers that "Rudy (OTC: RUNU), in the $5.4 billion sports drink industry is a prime buyout, just like The Coca Cola Company (NYSE: KO) bought Vitamin Water."
There's no disclosure in the television ad or in the video, but the "disclaimer" page on the PirateStockTV website contains this disclosure:
Companies featured at www.alphatrade.com pay consideration, which may include cash and/or shares of stock, to APTD for creating and displaying advertisements on it's websites and, in some cases, for building websites. When APTD receives shares as compensation for advertising or website creation for a featured company, APTD may sell part or all of any such shares during the period in which APTD is performing such services. APTD's advertising services for a company may cause the company's stock price to increase, in which event APTD would make a profit when it sells its stock in the company. In addition, APTD's selling of a company's stock may have a negative effect on the market price of the stock. All statements and expressions are the opinion of the companies featured and are not meant to be a solicitation or recommendation to buy, sell, or hold securities ... APTD has been compensated in free trading shares of common stock, available for public trading as follows: two hundred thousand free trading shares of Rudy Nutrition, Inc. from a third party shareholder. To date, APTD has not sold any of the shares. (emphasis added)
The problem is that this disclosure may be inadequate. You have to dig around the site quite a bit to find that disclosure and anyone who just saw the ad on TV would not have been aware of this conflict of interest.
Legal issues aside, I would advise investors to stay very far away from any stock that appears to be the target of a concerted publicity campaign. You just don't find great investments in paid advertisements on CNBC, and I can not find any 10-Ks or 10-Qs filed with the SEC for this company.
Tags: cnbc, Pirate Penny Stocks, PiratePennyStocks, Rudy, RUNU
http://www.bloggingstocks.com/2008/03/28/piratestocktv-pumping-penny-stocks-on-cnbc/
Pipedream, you posted a fax number which is OTCFN.com's fax number. You should disclose who you are and your compensation
---------------------------------------------
Posted by: pipedream61
In reply to: None Date:3/26/2008 12:00:33 PM
Post #of 1367
Is there anyone here that would be willing to fax me a copy of that mailer as my mailbox was not selected. I guess they didn't want my money!!
781-444-6101 is my direct fax.
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Secretary Galvin Files Against
Pump and Dump Operator
(On September 6, 2006)
EITEN Complaint (PDF, 1.8mb ) EITEN_complaint.pdf'>
http://www.sec.state.ma.us/sct/sctnat/EITEN_complaint.pdf
EITEN Exhibits (PDF, 12.2mb ) EITEN_exhibits.pdf'>
http://www.sec.state.ma.us/sct/sctnat/EITEN_exhibits.pdf
=================================================
Wednesday, September 6, 2006
Dover man charged in alleged "pump and dump" scheme
Massachusetts Secretary of State William F. Galvin today charged a Dover man with illegally promoting stocks at the same time he was selling them, known as a "pump and dump' arrangement.
In a civil complaint Galvin's office seeks to recover proceeds it estimated at more than $4.5 million from GEOFFREY EITEN and his companies. The complaint charges EITEN offered investment advice through newsletters, emails and websites, but also was hired by companies as an investor relations consultant, and subscribers weren't told of his conflicts of interest.
(By Ross Kerber, Globe staff)
Posted by Boston Globe Business Team at 01:35 PM
Print | E-mail to a friend | Permalink | Subscribe via rss More news updates from The Boston Globe
Imagine, Active and Pain Free http://cfrn.net/hsxi/
Oh God......
How many of the 26 stocks promoted where also promoted by thegreenbaron? Can you name them?
"We have received 30,000 free trading shares of common stock from an unaffiliated third-party investor and 35,000 restricted shares and an additional 65,000 shares of restricted stock from HealthSonix, Inc. (HSXI); "
From thegreenbaron who also promoted CMKX and coined the million millionaire phrase
http://www.thegreenbaron.com/Disclaimer.htm
39. IMPORTANT NOTICE AND DISCLAIMER:
The purpose of this material is to provide coverage and publicity for the companies, products or services. The information provided is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country. Verify all claims and do your own due diligence. This material is not a solicitation or recommendation to buy, sell or hold securities and does not provide an analysis of the financial position of the company. We recommend you use the information provided as an initial starting point for conducting your own research on these companies in order to determine your own personal opinion before investing. All information concerning these companies contained herein should be verified independently by an attorney and/or an independent licensed securities analyst. We are not offering securities for sale. All statements and opinions contained in this material are the sole opinion of the authors and are subject to change without notice. We are not liable for any investment decisions by our readers. Readers should independently investigate and fully understand all risks before investing. It is strongly recommended that any purchase or sale decision be discussed with a financial adviser or broker prior to completing any such purchase or sale decision. We are not registered investment advisers, or broker-dealers, or members of any financial regulatory bodies. The information contained in this material is provided as an information service only. The accuracy or completeness of the information is not warranted and is only as reliable as the sources from which it was obtained. We disclaim any and all liability as to the completeness or accuracy of the information and for any omissions of material facts. This advertisement may contain hyper links to web sites operated by third parties other than us. Such hyper links are provided for the reader's reference and convenience only. We are not responsible for the reliability of these external sites nor are we responsible for any of the contents, advertising, products, or other materials on such external sites. Our inclusion of hyper links to such web sites does not imply any endorsement of the material on such web sites or any association with their operators. Under no circumstances shall we be held responsible or liable, directly or indirectly, for any loss or damage caused or alleged to have been caused in connection with the use of or reliance on any content, goods, or services available on such external site. We may refer to other sources of information, or other commentary. We intend to offer these items to readers as additional sources of information only. It should be understood that there is no guarantee past performance will be indicative of future results. In order to be in full compliance with the U.S. Securities Act of 1933, Section 17(b), Evergreen Marketing, Inc. has received U.S. $2500 from PCS Edventures! (PCSV); we have received 250,000 shares of common stock from Cybertel (CYTP); we have received $2500 from a consultant of LJ International (JADE); in May of 2003 we received 5000 shares of common stock from a consultant of China Wireless Communications (CWLC) in January of 2004 we received $15,000; we have received $5,000 U.S. From a consultant of Office Managers, Inc (OFFM); we have received 200,000 shares of common stock from a consultant of International Sports and Media Group (ISME) Formerly San Diego Soccer Development (SDSD); we expect share compensation from a consultant of Warpradio.com (WRPR); we have received 50,000 shares of common stock from a consultant of Pluristem Corp. (PLRS). We have received 4000 additional shares of Pluristem (PLRS) in May 2004 and we expect to receive another 5000 shares of PLRS in June 2004 for continued Green Baron updates and webcasts; we have received 85,000 shares of common stock from a consultant of Gluv Corp. (GLVP); we received 2 million shares of V-Net Beverage, Inc. (VNTB) for public relations and promotion on The Green Baron and 2 million shares for designing, hosting, and launching a website in 2003. In 2004, we received an additional 3 million shares for ongoing consulting, website development, and webcast services; we received 2,000,000 shares of common stock from a consultant of Tropical Beverage, Inc. (TPBV); we received 5,000 shares, and anticipate receiving an additional 5,000 shares of common stock from a consultant of Alpine Air Express, Inc. ( ALPE); we have received 540,000 shares of common stock from a consultant of MISecurity Plus, Inc. (MSCU); we have been compensated 5,000 shares of common stock by Database solutions (DBSL); In April 2004 we received 15,000 shares of Caditec International (CDCI); we received 50,000 shares of common stock from The Dale Jarrett Racing Adventure (DJRT); We have received 17,000 shares of common stock from Nutri Pharmaceuticals Research, Inc. (NRIP); We received 15,000 shares of common stock and $1500 US from Consolidated Resources Group, Inc (CSRZ); We received $10,000 US from SE Global Equities Corp. (SEGB); We have received a total of 375,000 shares of American Scientific Resources (ASRO) from a consultant for webcast, promotion, and consulting services. We received 150,000 shares of common stock from a consultant of Portrush Petroleum, Inc. (PRRPF); We have received 25,000 shares of common stock from a Marketing Consultant for BP International, Inc. (BPIL), We received $5,000 US and approximately 57,000 shares of restricted common stock from Power2Ship, Inc (PWRI), We have received an initial payment of $5,000 and an additional payment of $6,000 US from a consultant of BonusAmerica, Inc. (BAWC); We will receive 500,000 shares of common stock during October, 2004 from a consultant of Tropical Beverage, Inc. (TPBV); We have received 100,000 shares of restricted common stock and we received no compensation for a webcast conducted in September of 2007 in Azco Mining, Inc. (AZMN); We have received US $15,000 from TelePlus Enterprises, Inc. (TLPE); We have received 4.2 million shares of free trading common stock from a consultant of Nicodrops, Inc. (NCDP); We have received $5,800 US from a consultant of Inform Worldwide Holdings (IWWH); We have received 150,000 free trading shares of common stock from a consultant of GLUV Corporation (GLVP); We have received 6,000 free trading shares of common stock from a consultant of Mercantile Gold, Inc. (MGCP); We have received 500,000 free trading shares of common stock and we anticipate receiving an additional 500,000 restricted shares from a consultant of Torbay Holdings, Inc. (TRBY); We have received $7,500 US from FaceKey Corp (FEKY); We have received 35,000 free trading shares of common stock from a consultant of Gateway Access Solutions, Inc. (GWYA); We have the option of receiving up to 250,000 free trading shares of common stock in Pender International, Inc. (PNDR); We have received in cash what will total $14,000 US and 350,000 shares of restricted common stock from Trey Resources, Inc. (TYRIA); We have received 200,000 shares of free trading common stock from a consultant of Media International Concepts, Inc. (MEIC); We have received 700,000 free trading shares of common stock from a consultant of Ecogate Corp (ECGT); We have received 100,000 free trading shares of common stock from a consultant of IVI Communications, Inc. (IVCM); We have received 500,000 free trading shares and an additional 175,000 free trading shares and 250,000 shares of restricted stock from a consultant of ImageXpress Corporation (IMJX); We have received 800,000 free trading shares of common stock from a consultant of Chilmark Entertainment Group, Inc. (CMKK); We have received 40,000 shares of free trading common stock from a consultant of BlueBear Networks International, Inc. (BLBR); We have received 40,000 shares of free trading common stock from a consultant of Senticore, Inc. (SNIO); We have received 225,000 shares of free trading common stock from a consultant of PDC Innovative Industries, Inc. (PDCN); We have received $20,000 US from China Media1 Corp. (CMDA); We have received 18,500,000 shares of free trading common stock from a consultant of Plasticon International, Inc. (PLNI); Evergreen Marketing acquired an additional 10,849,829 shares of PLNI through private market purchase and finders fees. Evergreen Marketing partners acquired a total of 9,993,106 through private market purchases. We have also funded the company an additional $100,000 through a private purchase of shares. We invested another $50,000 US through a private purchase transaction. We have purchased an additional $120,000 US of PLNI through a private transaction in January 2006. In August, 2006, Evergreen Marketing, Inc. exercised its right to purchase $170,000 worth of Plasticon (PLNI) common shares. We have received $7,500 US from a consultant of Industrial Nanotech, Inc. {INTK); We have received 50,000 free trading shares of common stock and 25,000 shares of restricted stock w/ piggy-back rights from a consultant of AngelCiti Entertainment, Inc. (AGCI); We have received 2,000,000 US free trading shares of common stock from a consultant of Tropical Beverage, Inc. (TPBV); We have received $25,000 US and 50,000 shares of restricted common stock from BioCurex, Inc. (BOCX); We expect to receive an additional 175,000 free trading shares of common stock and 250,000 shares of restricted stock from a consultant of ImageXpres Corp. (IMJX); We have received 450,000 free trading shares of common stock from a private investor of Astris Energi, Inc.(ASRNF; We have received 175,000 free trading shares of common stock from a consultant of ATWEC Technologies, Inc. (ATWT); We have received 250,000 free trading shares of common stock from a non-affiliated third party shareholder of AFMN, Inc. (AFNN); We have received $15,000 US from Teleplus Enterprises, Inc. (TLPE); We have received 400,000 free trading shares of common stock from a consultant of InRob Tech, Ltd. (IRBL); We have received 250,000 shares of free trading common stock from an unaffiliated third party shareholder with an expected agreement to receive an additional 1,000,000 shares of restricted stock for a continued shareholder awareness program over the next 12 months for FP Group, Ltd. (FPGR); We have received $50,000 US w/ a possible additional $50,000 US for continued shareholder exposure from Sunwin International Neutraceuticals, Inc. (SUWN); We have received US $50,000 and expect to receive an additional US $50,000 in the next 60 days from Linkwell Corporation (LWLL); We have received 160,000 free trading shares of common stock from an unaffiliated third party of Syngas International Corp. (SYNI); We have contracted to receive US $100,000 from an unaffiliated third party of Viva International, Inc. (VIVI); We have received 100,000 free trading shares of common stock from an unaffiliated third-party consultant of Prime Time Group, Inc. (PRTH); We have received 1.5 million free trading shares of common stock from a consultant of Blue Diamond Ventures, Inc. (BLDV); We have received 1 million shares free trading shares of common stock (pre-split) from an unaffiliated third party investor and 2.5 million shares of restricted stock (pre-split) from GL Energy and Exploration, Inc. (GEEX); We have received $2,000 US from Fuego Entertainment (FUGO); We have received 100,000 shares of free trading common stock from an unaffiliated third-party of Nitro Lube, Inc. (NTLB); We have been compensated 1,500,000 free trading shares and 1,500,000 shares of restricted shares from a non affiliated, third-party shareholder and we have received an additional 6 million shares of free trading shares of common stock from an unaffiliated third-party shareholder and an additional 2 million shares of restricted stock from Complete Care Medical, Inc. (CCMI); We have received US $500, 50,000 and an additional 400,000 shares of restricted common stock from BioElectronics Corp. (BIEL); We have received 250,000 shares of restricted stock from World Energy Solutions, Inc. (WEGY); We have received US $2,500 and 250,000 shares of free trading common stock from an unaffiliated third-party investor of GuestMetrics, Inc. (GESM); We have received 500,000 shares of free trading shares of common stock and expect to receive an additional 500,000 shares from an unaffiliated third-party investor of MediSys Corporation (MDYS);We have received US $30,000 from an unaffiliated third-party consultant of DigitalPost Interactive, Inc. (DGLP); We have received US $1,750,000 free trading shares from an unaffiliated third-party shareholder of Franklin Mining, Inc. (FMNJ); We have exchanged marketing & consulting services with AlphaTrade.com (APTD); We have received US $8,000. from INA on behalf of Intelligentias, Inc. (ITLI); We have received 30,000 free trading shares of common stock from an unaffiliated third-party investor and 35,000 restricted shares and an additional 65,000 shares of restricted stock from HealthSonix, Inc. (HSXI); We have received 2 million free trading shares of common stock from an unaffiliated third-party shareholder in addition to 1 million restricted 144 shares from International Food Products Group, Inc. (IFDG); We have received US $5,000 from Exchangeblvd.com, Inc. (EXBV); We have received 6500 free trading shares of common stock from an unaffiliated third-party consultant of Inform Worldwide Holdings, Inc. (IWWI); We have received 15,000 shares of restricted common stock and US $5,000 from New Century Companies, Inc. (NCNC); We have received 2,000 free trading shares of common stock from an unaffiliated third-party investor and US $9,000 from Gray Publishing & Media, Inc. (GPMIJ); We have received 25,000 free trading shares of common stock from an unaffiliated third-party RFID, Ltd. (RFDL); We have received 125,000 shares of free trading common stock from an unaffiliated third-party of Perfect Web Technologies, Inc. (PWBI); We have received 1,000,000 free trading shares of common stock from an unaffiliated third-party investor of Naturally Iowa, Inc. (NLIA); We have received $8,600 and have agreed to receive 80,000 shares of restricted common stock from Gener8Xion Entertainment, Inc. (GNXE); We are expected to be compensated a total of $16,000 cash for six months of the IR Suite and introductory services from a non affiliated, third party to Petroquest Resources, Inc.(PQRJ); Evergreen Marketing has agreed to purchase 20,000 shares of Immunosyn (IMYN) from a non-affiliated, third party shareholder at par value; We have received 50,000 shares of free trading common stock from an unaffiliated third party shareholder of U.S. Minemakers, Inc. (USMM); We are expected to receive 100,000 shares of free trading common stock for general coverage from a non-affiliated, third party shareholder of Axial Vector Engine Corporation (AXVC); We have received 150,000 shares of free trading common stock from an unaffiliated third-party shareholder of Spongetech Delivery System, Inc. (SPNG) for the distribution of this and other material. Since we are receiving compensation and may hold stock in the company there may be an inherent conflict of interest in our statements and opinions and such statements and opinions cannot be considered independent. We may benefit from any increase in share price of the company. We may sell our shares at any time, without notice, be that before, during or immediately after the release of this material. Furthermore, our associates and/or employees and/or principals may have stock positions in profiled companies purchased in the open market or in private transactions. These positions may be liquidated, without prior notification, even after we have made positive comments regarding these companies. It should be understood that any price targets and/or projections mentioned are solely opinions and should not be taken as suggested holding periods. The receipt of this information constitutes your acceptance of these terms and conditions. Reading this material shall not create under any circumstances an offer to buy or sell stock in any company profiled. Nor shall it create any principal-agent relationship between the reader and us. Information within this material contains "forward looking" statements within the meaning of Section 27(a) of the U.S. Securities Act of 1933 and Section 21(e) of the U.S. Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical facts and may be forward looking statements. Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements may be identified through the use of words such as expects, will, anticipates, estimates, believes, or by statements indicating certain actions may, could or might occur
"We have received 30,000 free trading shares of common stock from an unaffiliated third-party investor and 35,000 restricted shares and an additional 65,000 shares of restricted stock from HealthSonix, Inc. (HSXI); "
From thegreenbaron who also promoted CMKX and coined the million millionaire phrase
http://www.thegreenbaron.com/Disclaimer.htm
39. IMPORTANT NOTICE AND DISCLAIMER:
The purpose of this material is to provide coverage and publicity for the companies, products or services. The information provided is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country. Verify all claims and do your own due diligence. This material is not a solicitation or recommendation to buy, sell or hold securities and does not provide an analysis of the financial position of the company. We recommend you use the information provided as an initial starting point for conducting your own research on these companies in order to determine your own personal opinion before investing. All information concerning these companies contained herein should be verified independently by an attorney and/or an independent licensed securities analyst. We are not offering securities for sale. All statements and opinions contained in this material are the sole opinion of the authors and are subject to change without notice. We are not liable for any investment decisions by our readers. Readers should independently investigate and fully understand all risks before investing. It is strongly recommended that any purchase or sale decision be discussed with a financial adviser or broker prior to completing any such purchase or sale decision. We are not registered investment advisers, or broker-dealers, or members of any financial regulatory bodies. The information contained in this material is provided as an information service only. The accuracy or completeness of the information is not warranted and is only as reliable as the sources from which it was obtained. We disclaim any and all liability as to the completeness or accuracy of the information and for any omissions of material facts. This advertisement may contain hyper links to web sites operated by third parties other than us. Such hyper links are provided for the reader's reference and convenience only. We are not responsible for the reliability of these external sites nor are we responsible for any of the contents, advertising, products, or other materials on such external sites. Our inclusion of hyper links to such web sites does not imply any endorsement of the material on such web sites or any association with their operators. Under no circumstances shall we be held responsible or liable, directly or indirectly, for any loss or damage caused or alleged to have been caused in connection with the use of or reliance on any content, goods, or services available on such external site. We may refer to other sources of information, or other commentary. We intend to offer these items to readers as additional sources of information only. It should be understood that there is no guarantee past performance will be indicative of future results. In order to be in full compliance with the U.S. Securities Act of 1933, Section 17(b), Evergreen Marketing, Inc. has received U.S. $2500 from PCS Edventures! (PCSV); we have received 250,000 shares of common stock from Cybertel (CYTP); we have received $2500 from a consultant of LJ International (JADE); in May of 2003 we received 5000 shares of common stock from a consultant of China Wireless Communications (CWLC) in January of 2004 we received $15,000; we have received $5,000 U.S. From a consultant of Office Managers, Inc (OFFM); we have received 200,000 shares of common stock from a consultant of International Sports and Media Group (ISME) Formerly San Diego Soccer Development (SDSD); we expect share compensation from a consultant of Warpradio.com (WRPR); we have received 50,000 shares of common stock from a consultant of Pluristem Corp. (PLRS). We have received 4000 additional shares of Pluristem (PLRS) in May 2004 and we expect to receive another 5000 shares of PLRS in June 2004 for continued Green Baron updates and webcasts; we have received 85,000 shares of common stock from a consultant of Gluv Corp. (GLVP); we received 2 million shares of V-Net Beverage, Inc. (VNTB) for public relations and promotion on The Green Baron and 2 million shares for designing, hosting, and launching a website in 2003. In 2004, we received an additional 3 million shares for ongoing consulting, website development, and webcast services; we received 2,000,000 shares of common stock from a consultant of Tropical Beverage, Inc. (TPBV); we received 5,000 shares, and anticipate receiving an additional 5,000 shares of common stock from a consultant of Alpine Air Express, Inc. ( ALPE); we have received 540,000 shares of common stock from a consultant of MISecurity Plus, Inc. (MSCU); we have been compensated 5,000 shares of common stock by Database solutions (DBSL); In April 2004 we received 15,000 shares of Caditec International (CDCI); we received 50,000 shares of common stock from The Dale Jarrett Racing Adventure (DJRT); We have received 17,000 shares of common stock from Nutri Pharmaceuticals Research, Inc. (NRIP); We received 15,000 shares of common stock and $1500 US from Consolidated Resources Group, Inc (CSRZ); We received $10,000 US from SE Global Equities Corp. (SEGB); We have received a total of 375,000 shares of American Scientific Resources (ASRO) from a consultant for webcast, promotion, and consulting services. We received 150,000 shares of common stock from a consultant of Portrush Petroleum, Inc. (PRRPF); We have received 25,000 shares of common stock from a Marketing Consultant for BP International, Inc. (BPIL), We received $5,000 US and approximately 57,000 shares of restricted common stock from Power2Ship, Inc (PWRI), We have received an initial payment of $5,000 and an additional payment of $6,000 US from a consultant of BonusAmerica, Inc. (BAWC); We will receive 500,000 shares of common stock during October, 2004 from a consultant of Tropical Beverage, Inc. (TPBV); We have received 100,000 shares of restricted common stock and we received no compensation for a webcast conducted in September of 2007 in Azco Mining, Inc. (AZMN); We have received US $15,000 from TelePlus Enterprises, Inc. (TLPE); We have received 4.2 million shares of free trading common stock from a consultant of Nicodrops, Inc. (NCDP); We have received $5,800 US from a consultant of Inform Worldwide Holdings (IWWH); We have received 150,000 free trading shares of common stock from a consultant of GLUV Corporation (GLVP); We have received 6,000 free trading shares of common stock from a consultant of Mercantile Gold, Inc. (MGCP); We have received 500,000 free trading shares of common stock and we anticipate receiving an additional 500,000 restricted shares from a consultant of Torbay Holdings, Inc. (TRBY); We have received $7,500 US from FaceKey Corp (FEKY); We have received 35,000 free trading shares of common stock from a consultant of Gateway Access Solutions, Inc. (GWYA); We have the option of receiving up to 250,000 free trading shares of common stock in Pender International, Inc. (PNDR); We have received in cash what will total $14,000 US and 350,000 shares of restricted common stock from Trey Resources, Inc. (TYRIA); We have received 200,000 shares of free trading common stock from a consultant of Media International Concepts, Inc. (MEIC); We have received 700,000 free trading shares of common stock from a consultant of Ecogate Corp (ECGT); We have received 100,000 free trading shares of common stock from a consultant of IVI Communications, Inc. (IVCM); We have received 500,000 free trading shares and an additional 175,000 free trading shares and 250,000 shares of restricted stock from a consultant of ImageXpress Corporation (IMJX); We have received 800,000 free trading shares of common stock from a consultant of Chilmark Entertainment Group, Inc. (CMKK); We have received 40,000 shares of free trading common stock from a consultant of BlueBear Networks International, Inc. (BLBR); We have received 40,000 shares of free trading common stock from a consultant of Senticore, Inc. (SNIO); We have received 225,000 shares of free trading common stock from a consultant of PDC Innovative Industries, Inc. (PDCN); We have received $20,000 US from China Media1 Corp. (CMDA); We have received 18,500,000 shares of free trading common stock from a consultant of Plasticon International, Inc. (PLNI); Evergreen Marketing acquired an additional 10,849,829 shares of PLNI through private market purchase and finders fees. Evergreen Marketing partners acquired a total of 9,993,106 through private market purchases. We have also funded the company an additional $100,000 through a private purchase of shares. We invested another $50,000 US through a private purchase transaction. We have purchased an additional $120,000 US of PLNI through a private transaction in January 2006. In August, 2006, Evergreen Marketing, Inc. exercised its right to purchase $170,000 worth of Plasticon (PLNI) common shares. We have received $7,500 US from a consultant of Industrial Nanotech, Inc. {INTK); We have received 50,000 free trading shares of common stock and 25,000 shares of restricted stock w/ piggy-back rights from a consultant of AngelCiti Entertainment, Inc. (AGCI); We have received 2,000,000 US free trading shares of common stock from a consultant of Tropical Beverage, Inc. (TPBV); We have received $25,000 US and 50,000 shares of restricted common stock from BioCurex, Inc. (BOCX); We expect to receive an additional 175,000 free trading shares of common stock and 250,000 shares of restricted stock from a consultant of ImageXpres Corp. (IMJX); We have received 450,000 free trading shares of common stock from a private investor of Astris Energi, Inc.(ASRNF; We have received 175,000 free trading shares of common stock from a consultant of ATWEC Technologies, Inc. (ATWT); We have received 250,000 free trading shares of common stock from a non-affiliated third party shareholder of AFMN, Inc. (AFNN); We have received $15,000 US from Teleplus Enterprises, Inc. (TLPE); We have received 400,000 free trading shares of common stock from a consultant of InRob Tech, Ltd. (IRBL); We have received 250,000 shares of free trading common stock from an unaffiliated third party shareholder with an expected agreement to receive an additional 1,000,000 shares of restricted stock for a continued shareholder awareness program over the next 12 months for FP Group, Ltd. (FPGR); We have received $50,000 US w/ a possible additional $50,000 US for continued shareholder exposure from Sunwin International Neutraceuticals, Inc. (SUWN); We have received US $50,000 and expect to receive an additional US $50,000 in the next 60 days from Linkwell Corporation (LWLL); We have received 160,000 free trading shares of common stock from an unaffiliated third party of Syngas International Corp. (SYNI); We have contracted to receive US $100,000 from an unaffiliated third party of Viva International, Inc. (VIVI); We have received 100,000 free trading shares of common stock from an unaffiliated third-party consultant of Prime Time Group, Inc. (PRTH); We have received 1.5 million free trading shares of common stock from a consultant of Blue Diamond Ventures, Inc. (BLDV); We have received 1 million shares free trading shares of common stock (pre-split) from an unaffiliated third party investor and 2.5 million shares of restricted stock (pre-split) from GL Energy and Exploration, Inc. (GEEX); We have received $2,000 US from Fuego Entertainment (FUGO); We have received 100,000 shares of free trading common stock from an unaffiliated third-party of Nitro Lube, Inc. (NTLB); We have been compensated 1,500,000 free trading shares and 1,500,000 shares of restricted shares from a non affiliated, third-party shareholder and we have received an additional 6 million shares of free trading shares of common stock from an unaffiliated third-party shareholder and an additional 2 million shares of restricted stock from Complete Care Medical, Inc. (CCMI); We have received US $500, 50,000 and an additional 400,000 shares of restricted common stock from BioElectronics Corp. (BIEL); We have received 250,000 shares of restricted stock from World Energy Solutions, Inc. (WEGY); We have received US $2,500 and 250,000 shares of free trading common stock from an unaffiliated third-party investor of GuestMetrics, Inc. (GESM); We have received 500,000 shares of free trading shares of common stock and expect to receive an additional 500,000 shares from an unaffiliated third-party investor of MediSys Corporation (MDYS);We have received US $30,000 from an unaffiliated third-party consultant of DigitalPost Interactive, Inc. (DGLP); We have received US $1,750,000 free trading shares from an unaffiliated third-party shareholder of Franklin Mining, Inc. (FMNJ); We have exchanged marketing & consulting services with AlphaTrade.com (APTD); We have received US $8,000. from INA on behalf of Intelligentias, Inc. (ITLI); We have received 30,000 free trading shares of common stock from an unaffiliated third-party investor and 35,000 restricted shares and an additional 65,000 shares of restricted stock from HealthSonix, Inc. (HSXI); We have received 2 million free trading shares of common stock from an unaffiliated third-party shareholder in addition to 1 million restricted 144 shares from International Food Products Group, Inc. (IFDG); We have received US $5,000 from Exchangeblvd.com, Inc. (EXBV); We have received 6500 free trading shares of common stock from an unaffiliated third-party consultant of Inform Worldwide Holdings, Inc. (IWWI); We have received 15,000 shares of restricted common stock and US $5,000 from New Century Companies, Inc. (NCNC); We have received 2,000 free trading shares of common stock from an unaffiliated third-party investor and US $9,000 from Gray Publishing & Media, Inc. (GPMIJ); We have received 25,000 free trading shares of common stock from an unaffiliated third-party RFID, Ltd. (RFDL); We have received 125,000 shares of free trading common stock from an unaffiliated third-party of Perfect Web Technologies, Inc. (PWBI); We have received 1,000,000 free trading shares of common stock from an unaffiliated third-party investor of Naturally Iowa, Inc. (NLIA); We have received $8,600 and have agreed to receive 80,000 shares of restricted common stock from Gener8Xion Entertainment, Inc. (GNXE); We are expected to be compensated a total of $16,000 cash for six months of the IR Suite and introductory services from a non affiliated, third party to Petroquest Resources, Inc.(PQRJ); Evergreen Marketing has agreed to purchase 20,000 shares of Immunosyn (IMYN) from a non-affiliated, third party shareholder at par value; We have received 50,000 shares of free trading common stock from an unaffiliated third party shareholder of U.S. Minemakers, Inc. (USMM); We are expected to receive 100,000 shares of free trading common stock for general coverage from a non-affiliated, third party shareholder of Axial Vector Engine Corporation (AXVC); We have received 150,000 shares of free trading common stock from an unaffiliated third-party shareholder of Spongetech Delivery System, Inc. (SPNG) for the distribution of this and other material. Since we are receiving compensation and may hold stock in the company there may be an inherent conflict of interest in our statements and opinions and such statements and opinions cannot be considered independent. We may benefit from any increase in share price of the company. We may sell our shares at any time, without notice, be that before, during or immediately after the release of this material. Furthermore, our associates and/or employees and/or principals may have stock positions in profiled companies purchased in the open market or in private transactions. These positions may be liquidated, without prior notification, even after we have made positive comments regarding these companies. It should be understood that any price targets and/or projections mentioned are solely opinions and should not be taken as suggested holding periods. The receipt of this information constitutes your acceptance of these terms and conditions. Reading this material shall not create under any circumstances an offer to buy or sell stock in any company profiled. Nor shall it create any principal-agent relationship between the reader and us. Information within this material contains "forward looking" statements within the meaning of Section 27(a) of the U.S. Securities Act of 1933 and Section 21(e) of the U.S. Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical facts and may be forward looking statements. Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements may be identified through the use of words such as expects, will, anticipates, estimates, believes, or by statements indicating certain actions may, could or might occur
BCSC seeks extension of suspension order
Vancouver Sun
Published: Friday, March 28, 2008
B.C. Securities Commission enforcement staff are seeking to extend a temporary suspension order against Vancouver promoter Philip Wong, who is facing charges of fraud and conspiracy in the United States.
In December 2006, the Southern District of New York filed an indictment alleging that Wong, a Vancouver resident, schemed to defraud investors by bribing financial advisers to induce their clients to buy shares of eNotes Systems, Inc. (now Veridigm, Inc.), which trades on the OTC Bulletin Board in the United States.
A second indictment, filed in New Jersey in July 2007, alleges Wong and Gerald Danny Stefaniuk, while working as a broker at Vancouver brokerage firm Golden Capital Securities, schemed to manipulate the market for the securities of Secureware Inc., which trades on the "pink sheets" in the U.S. At a hearing next Wednesday, BCSC enforcement staff will ask a commission hearing panel to extend the temporary order against Wong pending the conclusion of the U.S. proceedings.
Info on IR of this company:Secretary Galvin Files Against
Pump and Dump Operator
(On September 6, 2006)
EITEN Complaint (PDF, 1.8mb ) EITEN_complaint.pdf'>
http://www.sec.state.ma.us/sct/sctnat/EITEN_complaint.pdf
EITEN Exhibits (PDF, 12.2mb ) EITEN_exhibits.pdf'>
http://www.sec.state.ma.us/sct/sctnat/EITEN_exhibits.pdf
=================================================
Wednesday, September 6, 2006
Dover man charged in alleged "pump and dump" scheme
Massachusetts Secretary of State William F. Galvin today charged a Dover man with illegally promoting stocks at the same time he was selling them, known as a "pump and dump'' arrangement.
In a civil complaint Galvin's office seeks to recover proceeds it estimated at more than $4.5 million from GEOFFREY EITEN and his companies. The complaint charges EITEN offered investment advice through newsletters, emails and websites, but also was hired by companies as an investor relations consultant, and subscribers weren't told of his conflicts of interest.
(By Ross Kerber, Globe staff)
Posted by Boston Globe Business Team at 01:35 PM
Print | E-mail to a friend | Permalink | Subscribe via rss More news updates from The Boston Globe
Wave Uranium just hired Elite/Dodi Handy as IR.
some info:
July 14, 2000 "DODI HANDY noted, “John Manion has been a mentor to many of us. We will miss his contributions, not just to our business, but to our lives. His proven leadership and corporate vision have served as the cornerstones on which Continental Capital has been built and upon which all future successes will be founded. Moving forward, we intend to initiate an aggressive growth strategy focused on strategic joint venture partners and prospective merger/acquisition candidates. Our goal is to distinguish Continental Capital as a global entity responsible for establishing the standard by which all financial public relations companies are measured.”
=======================================
Legend accused of mob ties Russian, Italian crime figures linked by feds to defunct firm's stock deals.
June 25, 1999
Alan Byrd Staff Writer
ALTAMONTE SPRINGS -- Just when it looked like defunct golf concern Legend Sports Inc. would fade away amid a flurry of stock fraud allegations, along comes the Russian mafia.
In a stunning, one-of-a-kind sweep this month, the U.S. Justice Department slammed stock brokers and others with 89 indictments, alleging mob interests -- both homegrown and in Russia -- had helped defraud investors of more than $100 million.
Squarely in the center of the legal storm: Legend Sports, its Altamonte Springs founder and an Apopka financier.
At first glance, the new federal indictments appear to have little to do with Legend, which has its own legal troubles.
The fledgling golf range company was shuttered last year after a three-year investigation by state authorities found it had fraudulently sold millions of dollars in securities to mostly elderly investors.
Indeed, in the federal indictments, the company and one other local concern, Orlando Supercard, look like victims of a more sophisticated stock scam: Brokers linked to organized crime artificially inflated stock prices of the companies, and then took hefty commissions based on sales at the higher prices.
However, the common denominator in both cases is former Legend Sports CEO Jim Staples. Staples already has cut a plea agreement with state prosecutors.
Sources close to the investigations say Staples escaped being named in the recent federal indictments only because he also agreed to cooperate with federal authorities about his role, and the role of Legend, in the alleged mob scam.
His attorney, David Fussell of Horwitz & Fussell of Orlando, will neither confirm nor deny that Staples is cooperating with federal authorities, saying only that, "Mr. Staples has come to the conclusion that he had conducted himself in an improper and illegal manner, and once he had reached that decision, he believed he had an obligation to rectify the situation."
Assistant U.S. Attorney Patricia Notopoulos, who is handling the federal prosecution, would not comment on whether Staples had entered a plea agreement with federal authorities.
However, it is known that Staples had met with John Manion of Apopka. Manion reportedly stated he had associates in New York who could bolster -- even control -- the struggling public company's stock price.
Manion is among those named in the 15-page federal indictment; specifically for his involvement with Legend Sports.
According to the indictment, Manion, along with members of the Colombo crime family and Russian organized crime, came to control virtually all of the tradeable stock of Legend and two other publicly traded companies.
That allowed them to artificially inflate the price of Legend's stock. Once the stock price began rising, a small army of unregistered brokers and cold callers began aggressively selling the stock at its new, high price to unwary investors.
No longer supported by brokers touting its strengths, and battered by the sudden sell-off, the stock price plummeted, leaving the new investors holding near-worthless paper.
But by then, fat commissions had enabled the boiler room operations to shave profits: The stock of Legend and the two other companies alone netted the group an estimated $10 million in profits.
Manion, who has an unlisted phone number, could not be reached for comment.
Meanwhile, in Knoxville, Staples remains free on bond, as he helps state and federal authorities locate the remaining assets of Legend Sports.
http://www.google.com/search?q=cache:orlando.bcentral.com/or...
July 14, 2000 "DODI HANDY noted, “John Manion has been a mentor to many of us. We will miss his contributions, not just to our business, but to our lives. His proven leadership and corporate vision have served as the cornerstones on which Continental Capital has been built and upon which all future successes will be founded. Moving forward, we intend to initiate an aggressive growth strategy focused on strategic joint venture partners and prospective merger/acquisition candidates. Our goal is to distinguish Continental Capital as a global entity responsible for establishing the standard by which all financial public relations companies are measured.”
CONTINENTAL CAPITAL & EQUITY CORPORATION
ANNOUNCES MANAGEMENT BUYOUT
Longwood, Fl – (BUSINESSWIRE) – July 14, 2000 – Continental Capital & Equity Corporation, a nationally recognized, full service financial public relations firm, today announced that the employees of the Company, led by the Executive Management Committee, are in the final stages of a planned buyout of Mr. John R. Manion, Founder and President of Continental Capital. In consideration of the buyout, Mr. Manion announced his resignation from the Company effective immediately. Employees of Continental are expected to complete a buyout of Mr. Manion prior to the end of July. Nearly 100% of Continental’s personnel have signed letters of intent to purchase shares of the Company.
In a letter to Continental Capital’s Executive Management Committee, Mr. Manion stated, “Since opening our doors in 1992, I have sought to distinguish Continental Capital as an industry innovator and as an organization responsible for redefining how investor relations is delivered. I believe that mission has been accomplished. Continental is a dynamic, results-oriented enterprise which has earned the respect and acknowledgement of our clients, our industry peers, Wall Street and the financial community, in general.”
Mr. Manion also stated, “Continental Capital is now uniquely positioned to leverage its fundamental successes into new and exciting growth opportunities that our Management Committee is more suited to oversee. As such, I am stepping aside so that the Continental team can aggressively steer the Company into a new era of corporate evolution.”
For the past 19 months and in contemplation of the planned buyout, Continental Capital has been managed by its Executive Management Committee, led by Chief Operating Officer DODI B. (Zirkle) HANDY, Chief Financial Officer and General Manager James R. Schnorf, and Vice Presidents Scott Gibson and Jimmy Holton. Audited financials of the Company reflect that under the reign of the Executive Management Committee, Continental Capital achieved 1999 revenue of nearly $9.5 million, representing a 40% increase over revenues generated in 1998. Profits increased nearly 50% to over $3 million. Currently, Continental Capital is on track to achieve similar growth in revenues and profitability in 2000.
DODI HANDY noted, “John Manion has been a mentor to many of us. We will miss his contributions, not just to our business, but to our lives. His proven leadership and corporate vision have served as the cornerstones on which Continental Capital has been built and upon which all future successes will be founded. Moving forward, we intend to initiate an aggressive growth strategy focused on strategic joint venture partners and prospective merger/acquisition candidates. Our goal is to distinguish Continental Capital as a global entity responsible for establishing the standard by which all financial public relations companies are measured.”
About Continental Capital & Equity Corporation
Continental Capital & Equity Corporation is a leading, nationally recognized, financial public relations firm that specializes in increasing mass market awareness of its clients among individual investors, retail stockbrokers, institutional investors, analysts, the financial media and other investment professionals.
- more -
Through its publication, Inside Wall Street, and its web site, www.insidewallstreet.com, Continental concentrates on spotlighting undervalued, undiscovered or turnaround situations operating in emerging, high-growth industries. Since its founding in 1992, Continental has represented hundreds of public companies headquartered on six continents. Current clients include, but are not limited to, Ashton Technology Group, Inc. (Nasdaq/NM:ASTN); NetCurrents, Inc. (Nasdaq:NTCS); Ursus Telecom Corporation (Nasdaq/NM:UTCC); BitWise Designs, Inc. (Nasdaq:BTWS); THCG, Inc. (Nasdaq/NM:THCG); New Visual Entertainments, Inc. (OTCBB:NVEI); IFS International, Inc. (Nasdaq:IFSH); and Viragen, Inc. (AMEX:VRA).
FOR MORE INFORMATION, PLEASE CONTACT:
DODI B. HANDY
407-682-2001
DODI@insidewallstreet.com
==============================
Sept. 24 2000 Continental Capital's Manion Sentenced to 15 Months for Fraud
By David Evans
New York, Sept. 24 (Bloomberg) -- John Manion, owner of Continental Capital & Equity Corp., a Florida-based financial public relations company, received a 15-month federal prison sentence and a $100,000 fine for cheating investors of a client company, Legend Sports Inc., between 1995 and 1998.
Manion was sentenced Friday in U.S. District Court in Brooklyn, New York, by Judge Nina Gershon. Manion, 52, of Longwood, Florida, still faces criminal charges in Florida in connection with the Legend Sports fraud. His attorney, Sean O'Shea, didn't return telephone calls seeking comment.
Manion founded Continental in 1992. Some publicly traded companies, like Legend Sports, paid Continental to write and distribute favorable articles about them to investors on its Web site, www.insidewallstreet.com, and in newsletters with the same name. Continental says its 1999 profits exceeded $3 million.
Legend Sports, which developed and operated golf facilities in Central Florida, raised $18 million from investors between from 1994 to 1996. The Securities and Exchange Commission halted trading in the shares after alleging the company operated as a Ponzi scheme, using money from new investors to pay returns to earlier investors.
On July 21, Manion settled unrelated insider trading charges filed by the SEC by agreeing to pay $40,186 and not commit securities fraud in the future. He didn't admit wrongdoing in that case, in which he was accused of illegally trading shares of Bio- Dental Technologies Corp. before it was acquired by his client Zila Inc. of Phoenix, Arizona, in 1997.
In 1996, Manion and Continental settled SEC fraud charges relating to their public relations work for First Entertainment Corp., a movie producer, in 1992 and 1993. Neither Manion nor Continental admitted wrongdoing.
The SEC alleged that Continental distributed 400,000 copies of its 'Inside Wall Street' newsletter touting First Entertainment's stock without disclosing that Continental was paid in shares worth more than $700,000 to write the reports. Manion and Continental agreed not to commit securities fraud in the future.
When Manion resigned as president of Continental on July 14, the company said he would sell Continental to its employees within two weeks. Manion still owns Continental, said DODI HANDY, chief operating officer, in an interview Friday. DODI said she expects the sale to be completed over the next 30 days.
Continental filed a registration statement with the SEC to sell one-third of the company to the public in 1998 for $14 million, shortly before Manion was charged with criminal securities fraud in Brooklyn. It never completed its initial public offering.
Continental has more than 30 corporate clients, including New Visual Entertainment Inc., Creative Host Inc. of San Diego, and Clearworks.net Inc., a fiber-optic network operator based in Houston.
re: Money TV:Are You Sure That's CNBC You're Watching?
By Matthew Goldstein Published: June 16, 2000
Anchors for hire: Donald Baillargeon (left) and Skip Lindeman.
DONALD BAILLARGEON ISN'T a financial news anchor, but he plays one on cable television systems across the country.
The former advertising and marketing executive is the star, founder and executive producer of a television program called "Emerging Company Report," which appears weekends on cable systems in more than 125 cities. The 30-minute show, now in its fourth year, focuses exclusively on small publicly traded companies that Baillargeon likes to say could be "the stars of tomorrow."
But don't let the show's anchor desk, nifty theme music and on-camera interviews with corporate executives fool you — "Emerging Company Report" is a far cry from the business news programs that regularly air on CNBC and CNNfn. In fact, the show's not much different from the infomercials for products like Suzanne Sommers' Torso Track abdominal machine that usually precede or follow it on local cable systems. The corporate executives interviewed on "Emerging Company Report" pay $10,950 for the privilege of having Baillargeon and his co-host Skip Lindeman lob big, juicy softball questions at them and promote their companies.
You'd have a hard time discovering that bit about the fees, however, from watching an "Emerging Company Report" broadcast. The only indication that the corporate executives have forked out dough comes in a 130-word disclaimer that flashes on the TV screen for about 8 seconds at the start of each broadcast. And since the disclaimer appears before the logo is flashed and the theme music kicks in, it's possible that viewers tuning in late might think they're actually watching a real business news show and not an advertisement for a bunch of over-the-counter Bulletin Board stocks.
"These infomercials are really little more than advertisements made to appear like news programs," says Bradley Skolnik, Indiana securities commissioner and president of the North American Securities Administrators Association, a professional association of state securities regulators. They're difficult to regulate, he says, because "many in the regulatory community aren't even aware when these shows are on."
There's nothing illegal or inherently unethical about television programs like "Emerging Company Report." So-called pay-for-hire stock broadcasts have been around for years — first on radio, then TV and now the Internet. Executives at small businesses say they need these kinds of programs in order to get their stories out to the investing public. The Securities and Exchange Commission, meanwhile, says stock-promotion programs are permissible as long as the broadcasts disclose that companies are paying a fee — either in cash or stock — for a favorable mention. The SEC won't comment on "Emerging Company Report's" broadcasts, but it appears that Baillargeon is doing just enough to satisfy the disclosure requirement.
But a pay-for-hire broadcast that meets the letter of the law can still create confusion in the minds of some investors — particularly with the explosion of financial news on TV and the Web. "If a disclosure is going to mean anything, it's important the disclaimer is posted in a manner that can be understood by the average viewer," says Skolnik. John Markese, president of the American Association of Individual Investors, a consumer protection group, takes a more direct stand. He advises investors to ignore shows like "Emerging Company Report" entirely, since the information they provide is completely one-sided and goes unchallenged.
With millions of online investors now buying and selling stocks on their own, regulators say, individuals need to be especially vigilant in choosing their financial news sources. That's especially true when it comes to highly speculative Bulletin Board stocks, a popular playground for stock scammers. Just this week, for example, federal authorities in New York charged 120 people, including brokers and individuals with ties to two of New York's organized-crime families, of running a massive stock-manipulation scheme involving nearly a dozen small-cap stocks.
Two years ago, the SEC began an aggressive crackdown on pay-for-hire stock promotion newsletters, broadcasts and Web sites that failed to disclose that they took money to tout a stock. One of the companies caught up in the sweep was Baillargeon's "Emerging Company Report," which broadcasts from a Hollywood, Calif. studio. The SEC cited Baillargeon, as well as the program, for not disclosing the exact dollar amount of the fees he was taking from companies that had been featured on the show — an omission Baillargeon has since rectified at the SEC's request.
But the SEC isn't finished with Baillargeon just yet. In an unrelated matter, regulators have charged him with being a participant in a multimillion-dollar stock-manipulation scheme involving a now-defunct Bulletin Board company called Alliance Industries. Baillargeon had been vice president of public relations and marketing for the California firm when the SEC suspended trading in its stock in 1996. Last summer the commission filed civil fraud charges against Baillargeon and former Chief Executive Peter Norman, who allegedly controlled 80% of the company's stock. The SEC contends the two men made false and misleading statements in an attempt to bolster the company's stock price. Some of the misleading statements, the SEC charges, included claims about several new business ventures the company intended to move into — including the breeding of GOATs and the development of a chain of chiropractic clinics. The SEC complaint says the two men claimed the new businesses would boost Alliance's revenues from $20 million in 1997 to $1.2 billion in 2006. That's a lot of GOATs.
Baillargeon insists Norman duped him, and says he had no knowledge of the alleged stock manipulation and relied on financial projections that had been verified by an accountant. He contends he'll be vindicated when the case comes to trial. "Nobody lost more in that deal than me," says Baillargeon, who was in New York Thursday to film this weekend's edition of "Emerging Company Report." "Going to work for that company was a huge error on my part." Norman couldn't be reached for comment.
So far, however, the pending litigation doesn't seem to have had much impact on "Emerging Company Report" or Baillargeon's television career. In September, the company will air its 200th original show, a rare feat in the television business. Clearly, there seems to be a market for this kind of material.
Robert Ziner, chief executive officer of Value Holdings (VALH), a Miami-based lumber-distribution business with $70 million in sales, has only positive things to say about the program. He's appeared on the show three times in recent weeks, and those appearances have prompted more than 700 requests from viewers for more information. "It's all about public relations and investor information," says Ziner. But if Ziner was looking for a bounce in his stock, forget it. Since his appearance on the June 2-4 edition of "Emerging Company Report," Value's stock on the Bulletin Board has never risen above 40 cents, although daily trading volume rose from about 800,000 shares to 2 million shares on June 15.
But results aren't especially important to Baillargeon — he says he has no vested interest in the performance of stocks profiled on his program because he's paid in cash. All he's trying to do, he says, is provide a forum for small businesses to communicate directly to investors. "I think we go out of our way to say that it is only an information source," says Baillargeon. "I would hope that people wouldn't make investment decisions based solely on what they see on a television program."
That's certainly good advice, because one of the companies featured on an "Emerging Company Report" broadcast in early March, Enterprises Solutions (EPSO), became ensnarled in a legal battle with the SEC shortly after one of its executives appeared on the program. The SEC suspended trading in the Massachusetts-based company's stock in March and later filed civil fraud charges against the tiny Internet security firm. The SEC contends the company repeatedly made misleading statements about several security products it was developing as part of a multimillion-dollar stock-manipulation scheme. Baillargeon says situations like the one involving Enterprises Solutions are rare, and points out that, while he tries to make sure all the companies featured on the show are viable concerns, he isn't a financial analyst.
In other words, making an investment decision based on something you see on a show like "Emerging Company Report" is not much better than buying a stock based on a company's press release. Just as you generally don't find bad news in a corporate press release — and when it is there, it's usually sugar-coated — an "Emerging Company Report" broadcast is the epitome of positive spin control.
Programs like "Emerging Company Report" give a whole new meaning to the derisive phrase "happy talk," which some in the news business use to describe the inane banter between anchors on local television newscasts. But this kind of happy talk could end up costing people money.
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TV host got your GOAT?
Baillargeon's "MoneyTV" was a strange choice for Anselmo, given that Baillargeon was one of two officers sued by the SEC in a multi-million dollar micro-cap fraud case.
The SEC charged Peter Norman and Baillargeon touted a company called "Alliance" on the Internet and used Alliance's website to make materially false representations about businesses in which various Alliance subsidiaries were supposedly engaged, including the cultivation and sale of fast-growing "paulownia" hardwood trees, the breeding and selling of live GOATs and GOAT carcasses, and the development of a nationwide chain of chiropractic clinics.
The complaint alleged that, contrary to the representations, Alliance owned no paulownia-tree technology or plantations, did not own or operate a GOAT business, and was not developing a chain of chiropractic clinics.
Nonetheless, according to the complaint, Norman and Baillargeon projected that Alliance's various businesses would generate $4.8 billion over a projected ten-year period and that the paulownia-tree business alone would bring Alliance more than $l billion in annual revenue by 2006.
The SEC charged the pair carried out a wide-ranging manipulation of Alliance's stock from January to November 1996, causing investors to lose millions of dollars.
Baillargeon submitted to a final judgment in the case in January of 2002. The agreement permanently restrained and enjoined him from engaging in fraudulent activities and required him to pay a $10,000 fine. In addition, the court ordered Baillargeon to cooperate with the SEC in its further inquiries into the case, including testifying in all its investigations and judicial proceedings.
Last month, co-defendant Peter H. Norman was found liable for $2.2 million dollars including a $110,000 civil penalty.
An SEC attorney familiar with the case labeled Baillargeon a "fraudster." "That's what we call repeat fraud offenders," he said. "It's amazing. And that TV show has had so many names."
"MoneyTV" is described as a weekly syndicated financial TV show. It is part of Emerging Company Report, a promotional service used by Silverado in the past. As WND previously reported, the SEC instituted public cease and desist proceedings against DONALD A. Baillargeon, individually and doing business as Emerging Company Report in 1998, for failure to disclose that ECR had received compensation and stock for promoting securities.
Baillargeon received, directly or indirectly, compensation ranging from $2,500 to $17,000 for each guest appearance package sold and did not disclose the amount of money he had received from the issuers to publicize their companies and stock.
Baillargeon subsequently submitted an offer of settlement, which the Commission accepted. The SEC reported, "Without admitting or denying the findings herein, Baillargeon has consented to the entry of this Order Instituting Public Proceedings … and to the imposition of the cease-and-desist order."
That case was part of the SEC's first Internet securities fraud sweep. WND recently has learned that the SEC has launched a major new investigation of Internet stock promoters. The investigation has been launched from its San Francisco Pacific Regional office.
V. Conclusion – Incarceration of Altomare is the Only Viable Sanction.
----------------------------------------------
Doc 302 Extract – part 13
V. Conclusion – Incarceration of Altomare is the Only Viable Sanction.
The judgment unambiguously required Altomare to disgorge $1,419,025 in ill-gotten gains and pay $283,073 in prejudgment interest within ten days of entry of the judgment on March 8, 2007. Altomare did not make the payments as ordered. He has made four payments totaling $60,000 subsequent to the Court’s contempt hearing on October 12, 2007. Rather than acting diligently to disgorge his illicit profits, Altomare repeatedly flouted the judgment by using his available funds to purchase luxury goods. As discussed above, while disgorging only minimal funds, Altomare (1) has spent at least $690,492 to remodel and furnish a second home; (2) received at least $1,740,000 in compensation from Universal Express during 2007 for which he has not accounted; (3) gave his sons $134,200 during 2006 and 2007 which he has not attempted to recover; (4) obtained at least $160,466 from his credit line at Washington Mutual and $288,900 from his credit line at Wachovia which he did not use to pay the judgment; (5) sold at least $570,000 in jewelry for which he has not accounted; (6) provided incomplete bank records and no sworn accounting; (7) failed to identify all of his assets; and (8) lied to the Court. Altomare’s failure to provide credible evidence of the sources of over $1.5 million in deposits into the Wachovia bank account during 2007 and no information on over $1.6 million in distributions does not meet his burden of demonstrating an inability to disgorge his illicit profits in spite of repeated opportunities to do so.
Incarceration under a civil contempt order pending compliance with the Court’s order is within the Court’s authority and is a well-recognized method of coercing compliance with court orders. SEC v. Bremont, 2003 U.S. Dist. LEXIS 10279 at *20-21, citing Shillanti v. United States, 384 U.S. 364, 370-71 (1966) and United States v. Bayshore Assocs., Inc., 934 F.2d 1391, 1400 (6th Cir. 1991). In determining an appropriate sanction for civil contempt, a court must consider: (1) the character and magnitude of the harm threatened by the continued contumacy; (2) the probable effectiveness of any suggested sanction in bringing about compliance; and (3) the contemnor’s financial resources and the consequent seriousness of the burden of the sanction. Bremont at *21, citing Dole Fresh Fruit Co. v. United Banana Co., 821 F.2d 106, 110 (2d Cir. 1987).
Altomare should be incarcerated. His continuing refusal to satisfy the judgment undermines the deterrent effect of the Commission’s enforcement actions as well as the enforcement powers of the Court. No other sanction will coerce Altomare to comply. He has already violated the judgment by issuing over 20 billion shares of unregistered Universal Express stock, has paid only $60,000 toward satisfaction of the judgment while more than $3.8 million passed through his bank accounts, has failed to meet his burden of establishing his inability to pay, and has lied to the Court. There is every reason to expect that Altomare will defy further orders of the Court.
Ordering Altomare to pay a daily fine until he complies with the judgment would be futile because he has refused to pay despite the availability of funds and the continued accrual of post-judgment interest. There is no reason to believe that the imposition of fines would be any more likely to coerce his compliance with the judgment. Incarceration is appropriate and reasonable in these circumstances and has been ordered where defendants in securities fraud cases have failed to pay court ordered disgorgement. See SEC v. Kenton Capital, Ltd., 983 F. Supp. at 17-18; SEC v. Margolin, 1996 U.S. Dist. LEXIS 11299 at *13-15; SEC v. Porto, 748 F. Supp. 671, 672 (N.D. Ill. 1990).
For the reasons discussed above, the Commission respectfully requests that the Court incarcerate Altomare until he pays the disgorgement and prejudgment interest in full, or proves categorically and in detail that any payment is impossible.
Dated: March 21, 2008
Respectfully submitted,
s/ Leslie J. Hughes
Leslie J. Hughes
Attorneys for the Plaintiff
Securities and Exchange Commission
--------------------
03/21/2008 302 MEMORANDUM OF LAW in Support re: 191 MOTION for Sanctions and Entry of Contempt against Universal Express, Altomare and Gunderson. Summarizing evidence presented at February 4 2008 hearing that establishes Altomare's continuing contempt. Document filed by U.S. Securities and Exchange Commission.
Poverty, USXP Style
March 25, 2008, 11:40 am
http://norris.blogs.nytimes.com/2008/03/25/poverty-usxp-style/
Let us pause from stories of rebounding share prices and collapsing home prices to ponder the life of one self-styled victim of the crash in Florida real estate values.
I refer to Richard Altomere, the former chief executive of Universal Express, a company that paid him millions by illegally issuing billions of shares of stock while its operations never amounted to much. Mr. Altomare kept peddling the shares, and taking the cash, for months after a federal judge ordered him to stop. I’ve written about this in these blog items.
Now the S.E.C. is trying to get the judge to throw Mr. Altomare into jail for contempt. He did eventually stop running the company, after the judge appointed a receiver, so the issue is whether he has paid what he could toward the $1.7 million he was fined by the judge, including interest. So far he has put up $60,000.
The S.E.C. suspects Mr. Altomare has some money squirreled away somewhere, and points to discrepancies between his testimony and bank records.
One of Mr. Altomare’s fans has already pronounced on this blog that he won the hearing, and is sure to be absolved. (See comment No. 20 here.) I have read the briefs, but did not go to the hearing, so I won’t argue the point.
But I did enjoy a few facts from the briefs. Mr. Altomare and his wife bought a condo in Highland Falls, Fla., for $3.1 million in November 2006, while the S.E.C. suit against him was pending. He says the condo is now worth less than he owes, and the same is true for his primary residence in Boca Raton, Fla.
Fans of the mortgage crisis will recognize the lenders who put up the money for the condo. The first mortgage ($2.1 million) was issued by Countrywide, and the second ($750,000) by Washington Mutual.
Meanwhile, despite having no sources of income, and two homes that are cash drains and worth less than their mortgages, Mr. and Mrs. Altomare manage to keep their three cars. There is a 2007 Mercedes ML350 and a 2007 Mercedes S550V. And when the two Mercedes are not good enough — one must keep up appearances, after all — they can drive the 2006 Bentley. Over the year after the judgment was issued, lease and insurance payments on the cars came to $100,326. Mr. Altomare also managed to keep current on his $4,600 monthly life insurance premiums.
In his brief, Mr. Altomare’s lawyer says that the executive clearly “qualifies for bankruptcy.”
If he files, do you think he will give up the Bentley?
http://norris.blogs.nytimes.com/2008/03/25/poverty-usxp-style/
You can read about Equitilink here http://www.wwauctions.biz/Boiler%20rooms/Amber.htm
---------------------------------------------------
Universal Express, Inc. - USXP - Selects Equitilink for Shareholder Communications.
Publication: Business Wire
Publication Date: 21-SEP-01
NEW YORK--(BUSINESS WIRE)--Sept. 21, 2001
Universal Express, Inc. (OTC BB:USXP) today announced that it has added Equitilink, LLC to its financial communications and shareholder relations campaign.
The selection of the investor relations consultancy follows several weeks of negotiations between the two firms.
James J. Mahoney, Managing Director of Equitilink stated, "As a result of meeting...
===================================================
Equitilink LLC, California :
Mr Thomas Norman Mahoney was part of Amber Management for a while. Owning previously an NASD Series 7 license, he seemed credible in his new venture.
Now back in California, he was working for an 'investor relation' company called Equitilink, together with his brother, @ http://www.equitilinkpr.com/team.html. Equitilink was promoting shares of companies, very possibly an entrance door to Boiler room, and just mysteriously disappeared mid 2005...
Search Equitilink shareholder and you will find a bunch of Medical start-up companies, having invented great medecine of this century.
http://www.wwauctions.biz/Boiler%20rooms/Amber.htm
=========================================================
USXP has paid BSR a fee of $8,000 for research services, including posting on this web site.
http://www.barrowstreet.com/news.html#UNIVERSAL
===========================================
http://www.sec.gov/litigation/litreleases/lr15957.txt
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission v. John D. Attalienti and
Barrow Street Research, Inc., Civil Action No.98-CIV 7660 (DAB)
(Oct.27, 1998 S.D.N.Y.)
Litigation Release No. 15957 / October 27, 1998
SEC OBTAINS $25,000 PENALTY AND PERMANENT INJUNCTION AGAINST JOHN
D. ATTALIENTI AND BARROW STREET RESEARCH, INC. FOR FAILING TO
DISCLOSE ADEQUATELY PAYMENTS FROM ISSUERS FOR TOUTING STOCKS
The Securities and Exchange Commission (SEC) announced that
on October 27, 1998 it filed a civil action in federal district
court against John D. Attalienti ("Attalienti") and Barrow Street
Research, Inc. ("Barrow Street") alleging that Barrow Street, a
newsletter advertising itself as an independent, impartial stock
analyst, failed to disclose fully that it routinely received
payments of cash and securities from issuers in exchange for
touting the issuers' stocks on Barrow Street's Internet web site.
Attalienti and Barrow Street promoted the stock of 10 different
publicly-traded companies on Barrow Street's Internet web site
without fully disclosing the nature, terms and amounts of
compensation received from the advertised companies, in violation
of Section 17(b) of the Securities Act of 1933 ("Securities
Act"). The SEC also alleges that Attalienti and Barrow Street
distributed the Barrow Street recommendations to a network of
broker-dealers without full disclosure of the compensation
received from the issuers.
Without admitting or denying the allegations in the
Complaint, Attalienti and Barrow Street have consented to the
entry of Final Judgments (i) permanently enjoining them from
violating Section 17(b) of the Securities Act and (ii) ordering
Attalienti to pay a penalty of $25,000.
Section 17(b) of the Securities Act makes it illegal for any
person to distribute a publication recommending a security
without fully disclosing the nature, terms and amounts of
compensation received or to be received in connection with the
distribution of the publication.
Investors are advised to read the SEC's "Cyberspace" Alert
before purchasing any investment promoted on the Internet. The
free publication, which alerts investors to the telltale signs of
online investment fraud, is available on the Investor Assistance
and Complaints link of the SEC's Home Page on the World Wide Web
<www.sec.gov>. It can also be obtained by calling 800-SEC-0330.
Investors are encouraged to report suspicious Internet offerings
(or other suspicious offerings) via e-mail to
<enforcement@SEC.gov>. A user-friendly form to assist you in
making a report is available at the Enforcement Complaint Center
on the Enforcement Division link of the SEC Home Page
<www.sec.gov>. Investors can also mail a report to the SEC
Enforcement Complaint Center, Mail Stop 8-4, 450 Fifth Street,
Washington, D.C. 20549.
Anyone who thinks they have been affected by the scam should contact the City of London Police at operationarchway@cityoflondon.police.uk
--------------------------------------------
Boiler room scam hits pensioners for £35m as UK 'bears the brunt' of fraud
Friday, 14 Mar 2008 09:30
A US boiler room scam has hit British pensioners for over £35 million through selling worthless shares, with the UK is bearing the brunt of scams.
Around 95 per cent of the victims are thought to be pensioners – most with some investment experience - hit with a slick marketing campaign and repeated cold calls.
Up to 15,000 Brits have been hit by the fraud.
Father and daughter team Paul Robert Gunter, 58, and Zibiah Joy Gunter, 25, based in Florida, were arrested yesterday on charges of conspiring to commit, and committing substantive acts of, mail fraud, wire fraud, securities fraud, and money laundering.
DCI Robert Wishart, head of the money laundering unit at the City of London Police, which initiated the investigation, told myfinances.co.uk: "The UK is bearing the brunt of this kind of fraud.
"Thousands of British people have fallen victim to this crime - in this inquiry alone, we estimate that around 15,000 mostly elderly people have lost money."
He explained victims of mass marketing fraud and boiler room scams are most likely to be over 50 with a background of investing and all have some spare income.
"We have identified some of the individuals affected but there are a lot more to come. With today's coverage a lot of people have come out of the woodwork."
DCI Wishart added the UK was suffering particularly from the fraud because of the creditability of the UK financial services sector and the fact it is an English speaking country.
"This action today demonstrates how effective the law enforcement community can be in ensuring there is no hiding place for criminals or their money," he added.
The fraud dates back to at least the spring of 2005 and involved the selling of virtually worthless shares and the hijacking of identities of dormant, publicly-traded companies.
Figures from the FSA show the average boiler room victim loses £20,000 – with older male investors with some experience more likely to be targeted.
US attorney Robert O'Neill said: "The stock market must be protected by ferreting out those who prey on investors."
Anyone who thinks they have been affected by the scam should contact the City of London Police at operationarchway@cityoflondon.police.uk
In June 2007, executives of Universal Express, which had claimed naked shorting of its stock, were sanctioned by a federal court judge as “repeated and remorseless violators” of the securities laws. The SEC asserted that the company “appears to exist primarily as a vehicle for fraud.” [22] Referring to a court ruling barring CEO Richard Altomare from serving as an officer of a public company, New York Times columnist Floyd Norris said: "In Altomare's view, the issues that bothered the judge are irrelevant. 'Long and short of it,' he said in a statement, 'this is a naked short hallmark case in the making.' Or it is proof that it can take a long time for the SEC to stop a fraud."[23] Universal Express has claimed that 6,000 small companies have been put out of business by naked shorting, which the company says "the SEC has ignored and condoned."[24] A receiver was subsequently appointed to administer the company.
http://en.wikipedia.org/wiki/Naked_short_selling
Appears that one of the signatures is a forgery. Check out the two Urban Casavant signatures on the documents
http://www.cmkmdiamondsinc.com/documents/americanshaft.pdf
http://www.cmkmdiamondsinc.com/documents/forfeiture-of-gold-sands-05-02-05.pdf
Not even close
Print them out and compare
Form 8-K for FONIX CORP
--------------------------------------------------------------------------------
5-Mar-2008
Change in Directors or Principal Officers
Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Resignation of Thomas A. Murdock and William A. Maasberg, Jr.
On Wednesday, March 5, 2008, Thomas A. Murdock resigned as Chairman of the Board, President, and Chief Executive Officer of Fonix Corporation, a Delaware corporation (the "Company"). Additionally, Mr. Murdock resigned all officer and director positions he held with Fonix Speech, Inc., Fonix/AcuVoice, Inc., Fonix/Papyrus Corporation, Fonix UK, Ltd., and Fonix Sales, Korea Group, Ltd., all subsidiaries of the Company.
Additionally, on Wednesday, March 5, 2008, William A. Maasberg resigned as director of the Company.
Appointment of New Chairman, President, and Chief Executive Officer
In connection with the resignation of Messrs. Murdock and Maasberg, the Company appointed Roger D. Dudley, who is currently serving as the Company's Executive Vice President and Chief Financial Officer, as the Company's Chairman, President, and Chief Executive Officer. Mr. Dudley will continue to serve as Chief Financial Officer. Following the resignations of Messrs. Murdock and Maasberg, Mr. Dudley is the sole director of the Company.
Information relating to Mr. Dudley can be found in the Company's most recent proxy statement, filed with the SEC on December 7, 2007.
Is Overstock CEO Patrick Byrne defending the Universal Express fraud?
http://www.bloggingstocks.com/2008/03/04/is-overstock-ceo-patrick-byrne-defending-the-universal-express-f/
Posted Mar 4th 2008 6:21PM by Zac Bissonnette
Filed under: Law, Scandals
If you've read my posts on Overstock.com, Inc. (NASDAQ: OSTK) CEO Patrick Byrne's allegations of a vast conspiracy of market manipulation involving a character from Star Wars and crooked reporters, you know that I'm a bit skeptical. But for this post, let's put all that aside and assume that Patrick Byrne's whacked out conspiracy theory is right on: there is indeed a cabal of hedge fund managers and "captured journalists" working overtime to drive down his company's stock price.
In the comments section of his latest blog post accusing Gary Weiss of being a Scaramouch, someone identifying himself or herself as "The Good Samaritan" posted the following (edited for rambling):
Patrick...been following your yeoman work in this area ... I must say it mirrors my own experience over the past several years with Universal Express, Inc. and Richard Altomare ... you should know that Altomare and his general counsel are about to rain on their parade in the 2nd circuit court very shortly...since USXP is so far along in their particular battle (having already won two judgments against the naked shorts), and most who follow this area admire you for your fearless position against the entrenched low-lives operating this scandal for the misguided forces on wallstreet ... do not forget the small but equally worthy fights also going on in this vast battlefield...
A little bit of background on Universal Express and Richard Altomare: The company has massively diluted shareholders while dumping unregistered securities on the market -- and has racked up an accumulated deficit of nearly $100 million in the process. Remarkably, all that dilution and all those losses have come on paltry revenue -- just over $1 million in 2006.
Meanwhile, Altomare was using the company as his personal piggy bank. Floyd Norris reported that "From April 2006 to May 2007 - the latter date after the judge had ordered him to stop running the company - Mr. Altomare had the company spend $558,900 at a retail jewelry store in Boca Raton, Fla. In October, he pawned the jewelry for $500,000. In July - after my column, and after the Securities and Exchange Commission asked a judge to hold him in contempt for failing to obey the earlier order - Universal Express paid $30,000 "to cover Altomare's marker at the Wynn Las Vegas," a casino."
The company has been cast into receivership and is in the process of liquidation -- There are also allegations that Mr. Altomare has absconded with some Michael Jackson master tapes but you get the idea. This is a bizarre story of a crooked little company with a CEO who spun vast conspiracy theories to divert attention from his own misdeeds.
In other words, if Patrick Byrne is right about the whole market manipulation conspiracy, Richard Altomare would be exactly the kind of person he would want to distance himself from. Here's how Byrne responded to "The Good Samaritan's" comment:
Good Samaritan,
Don't worry, I am quite aware that mine is just one battle in a larger war, and that others are fighting their own equally worthy ones. Every victory one of us has against the Combine is a victory for all. Good luck.
If Overstock.com and Universal Express's causes are equally worthy, Overstock shareholders might want to run like hell. Shares of USXPE closed at $0.0001 on Monday.
Tags: OSTK, Overstock.com, Pat Byrne, PatByrne, Universal Express, UniversalExpress
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CMKX and USXP, then came Bronson:
http://goliath.ecnext.com/coms2/summary_0199-1000559_ITM
Casavant Mining Kimberlite International Hires Howard Bronson For Financial Public Relations.
Publication Date: 23-DEC-02
Publication Title: Business Wire
Format: Online - approximately 350 words
LAS VEGAS--(BUSINESS WIRE)--Dec. 22, 2002
Casavant Mining Kimberlite International (OTCBB:CMKI) has come to terms with the world renowned Howard Bronson who is well connected in financial circles throughout Wall Street.
Casavant is a Nevada-based company in the "conflict free" diamond mining business. Principal mining operations are located in Saskatchewan, Canada, encompassing...
http://query.nytimes.com/gst/fullpage.html?res=9407E0DD1039F930A25754C0A962948260&n=Top/Reference/Times%20Topics/Subjects/S/Stocks%20and%20Bonds
======================================================
Universal Express - USXP - Retains Howard Bronson Associates, Inc ...Founded in 1965, Howard Bronson Associates, Inc. will provide strategic counseling ... of our Company and expand the variety and scope of services we offer. ...
findarticles.com/p/articles/mi_m0EIN/is_2001_Sept_10/ai_78028609 - 30k - Cached - Similar pages
=====================================================
Firm Warned On Reports
Published: July 13, 1984
The Securities and Exchange Commission yesterday warned a New York public relations firm not to disseminate false or misleading information about publicly traded companies.
Public relations firms should be aware of their 'obligation' not to disseminate information about publicly traded companies when they 'know or have reason to know that such information is false or misleading,' the agency said in a rare public report on a private enforcement investigation.
The warning concerned a report distributed to about 50 broker-dealers in 1983 by Howard Bronson & Company recommending the purchase of a new issue of common stock of the International Technologies Corporation, a Canadian company that holds patent to several enhanced crude-oil recovery technologies.
The agency said that Bronson might have violated the antifraud provision of Federal securities laws by failing to disclose that International Technologies was paying it $3,000 a month for preparing the material.
Howard Bronson, president of the firm, said yesterday: 'We never knowingly disseminated false information. We were led to believe that the information was accurate by the company.'
http://query.nytimes.com/gst/fullpage.html?res=9407E0DD1039F930A25754C0A962948260&n=Top/Reference/Times%20Topics/Subjects/S/Stocks%20and%20Bonds
US BIODEFENSE INC AND THE DIPLOMA MILL DEGREE V.P.
Date Filed Title
08/30/2006 EX-99 of 8-K for US BIODEFENSE INC
COMPANY NAME(s) - [US BIODEFENSE INC (CIK - 1122130 /SIC - 7389)]
Mr. Charles Wright holds a Masters degree in Business from Harrington University in London</B> and has over 30 years of marketing and business experience as a successful entrepreneur and consultant to companies such as Toyota and Kaiser as well as with organizations such as the American Red Cross.
Parent Filing
Executive sacked for faking CV</B>
Mark Russell
February 24, 2008
A senior Federal Government executive has been sacked after being accused of using fake qualifications to get a job with the very department that warns employers to be wary of fraudulent degrees.
Bobby Singh had been recruited to a senior position within the former Department of Employment and Workplace Relations before his credentials were scrutinised.
Checks revealed he had included on his curriculum vitae allegedly fake degrees from Harrington University and the Trinity College and University, in the United States. The two universities have been described as "degree mills," which sell degrees over the internet and require no educational assessment.
The Sunday Age has obtained copies of the degrees that state Mr Singh has been awarded a Doctorate of Philosophy and a Masters of Science, both with a major in information systems, from Trinity, and a Masters of Business Administration from Harrington.
A spokesman for the federal Education, Employment and Workplace Relations Department — which carries warnings about fake degrees on its website — said Mr Singh was employed as an executive level 2, with a salary of between $79,691 and $98,900 in 2005 after a merit selection process. He was sacked in December 2006.
His case was due to go before the Federal Magistrates Court, but was settled out of court last year.
Hundreds of thousands of Australians are thought to have overstated their educational achievements on their CVs. A PricewaterhouseCoopers forensic investigation of the CVs of staff at a large financial institution in 2003 found 40% contained "serious mis-statements", including fake qualifications.
New anti-money laundering legislation has forced employers to become more vigilant, but a fake qualifications expert, Dr George Brown, says most employers accept background documentation at face value.
"That's the problem," he told The Sunday Age.
"How many people check? What skills and knowledge do they have to verify the authenticity of an academic qualification?"
Dr Brown said that in today's "credential-conscious" society, "academic qualifications are items of value that are being falsified by people wanting to move ahead in society".
Faking it
■JANUARY 2008 Former Qantas engineer Timothy McCormack will stand trial in the NSW District Court for forging a maintenance engineer's licence. McCormack had been responsible for safety checks on the airline's fleet of Boeing 747s.
■2006 Former Federal Court judge Marcus Einfeld was revealed to have a PhD from Pacific Western University, which has been debunked as a diploma mill for handing out doctorates for the flat fee of $US2595 ($A2800).
■2003 Glen Oakley was sacked from his $1.2 million role as general manager of Sydney's Randwick Council after faking academic qualifications, including an MBA from Harvard University.
http://www.sec.gov/Archives/edgar/data/1122130/000136896606000010/ex99press.htm
EX-99 3 ex99press.htm
U.S. BioDefense Retains Emergency Preparedness Industry Leader as Executive Vice President to Guide New Initiatives
City of Industry, CA – August 21, 2006 – David Chin, CEO of U.S. BioDefense, Inc. (OTCBB: UBDE) announced today the appointment of Charles Wright as the company’s Executive Vice President. Charles Wright will assist with the buildup and expansion of subsidiary Emergency Disaster Systems’ sale team as well as with the overall direction of U.S. BioDefense’s business development and marketing efforts.
Mr. Charles Wright holds a Masters degree in Business from Harrington University in London and has over 30 years of marketing and business experience as a successful entrepreneur and consultant to companies such as Toyota and Kaiser as well as with organizations such as the American Red Cross. He was founder and director of Emergency Disaster Systems which he grew from $1000 in sales in 1989 to $1,000,000 in the most recent fiscal year. Through his direction at Emergency Disaster Systems, Mr. Wright developed the EDS Corporate Awareness Program to educate and assist large corporations with emergency and disaster preparation. As a successful inventor Mr. Wright is the co-creator of the patent-pending EDS Stretcher that is capable of safely supporting and securing 1000 pounds.
“The addition of Mr. Wright, with over 19 years of experience in the emergency disaster preparedness industry, is a significant addition to U.S. BioDefense’s management team and a solid compliment to the direction and growth of the company. This is the first step toward forming a strong board of directors that will lead the company to explore new opportunities and build upon its existing infrastructure,” said David Chin, CEO of U.S. BioDefense.
“Joining U.S. BioDefense will allow me to capitalize on my experience and utilize my close network of advisors and consultants to maximize the growth potential of the company. In turn, the company’s resources will allow me to more fully develop already proven strategies to increase sales and sustain growth for Emergency Disaster Systems,” commented Charles Wright, U.S. BioDefense Executive Vice President.
About U.S. BioDefense, Inc.
U.S. BioDefense is a Department of Defense central contractor that researches, develops, and commercializes homeland security and leading-edge biotechnology. U.S. BioDefense is focused on transferring, researching, and commercializing groundbreaking technologies from Universities, Research Labs, Fortune 500 Companies, and Government Agencies. Through its subsidiary Emergency Disaster Systems (EDS), the company operates its Emergency Preparedness Program as part of its Homeland Security division. U.S. BioDefense is focused on developing EDS as an industry leader in the disaster mitigation and preparedness arena, an underserved market that could see consumer spending of over 24 billion dollars in 2007.
About Emergency Disaster Systems, Inc.
Emergency Disaster Systems is a leading provider of disaster mitigation services, emergency preparedness, and first response products to local communities, government agencies and Fortune 500 companies. Emergency Disaster Systems is committed to the protection of our children's lives and communities from the devastating aftermath of a catastrophic event.
Forward-Looking Statement
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of management of U.S. BioDefense, Inc., and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors, and other factors affecting the operation of the businesses of U.S. BioDefense, Inc. U.S. BioDefense, Inc. is under no obligation to, and expressly disclaims any such obligation to, update or alter the respective forward-looking statements, whether as a result of new information, future events, or otherwise.
Contact:
David Chin
U.S. BioDefense, Inc.
626-961-0562
--------------------------------------------------------------------------------
U.S. BioDefense, Inc. - Revisiting Rashomon
Investigative Reports
December 1 2005
Akira Kirosawa’s classic film, “Rashomon,” presents an interesting thesis; several people viewing the same events may walk away with different versions of what has occurred. This notion, that “facts” depend upon perspective, is intriguing, but not always apt. When it comes to investments and public companies the underlying facts should be clear, even if their analysis may differ.
In other words, reasonable individuals may disagree about a company’s prospects, but the entity’s operations, history and financial condition should not depend upon one’s point of view. Of course, as we have seen often, promoters tend to exaggerate and companies occasionally “gild the lily.” In the end, investors are likely to find the most accurate – and conservative information in a company’s public filings.
We had these thoughts in mind this week as we reviewed an email from “Investment Opportunities” promoting the latest “news” about a company called U.S. BioDefense, Inc. (OTCBB: UBDE) – the current incarnation of a Utah corporation that once sold candy to hospital gift shops and now says it is focused on “encouraging the development, manufacture and commercialization of biologic products for the prevention and treatment of human infectious disease.”
The spam for U.S. BioDefense was intriguing, not because of the Company’s track-record, or even its $36 million market cap, but because it soon became evident that its relative beauty and flaws truly were in the eye of the beholder. Promoters, press releases and public filings each placed a decidedly different spin on the Company, its activities, and its prospects.
Is this a case of “Rashomon?” Different perspectives offer an array of distinctive views.
Promoter Plays Chin Music
“Investment Opportunities” has a distinct point of view – although it is not necessarily independent. In fact, as we discovered, “Investment Opportunities” and U.S. BioDefense both are controlled by the same individual, David Chin. But more about that later.
The “Investment Opportunities” e-mail featured excerpts from a press release issued by U.S. BioDefense on November 29, 2005. In that press release, the Company indicated that it was poised to participate in the production of “Tamilflu®,” which it described as “the first line of defense against the H5N1 avian flu virus.” Although it stated that U.S. BioDefense had applied for a license to produce a version of “Tamiflu®,” the press release did not indicate whether the Company had the funds, capacity or resources to support that effort.
In fact, the press release contained few details and fewer clues about the Company’s plans. That did not dissuade “Investment Opportunities” from spreading the good word, or at least positive implications, about U.S. BioDefense – and not for the first time. In recent months, “Investment Opportunities” has disseminated a series of e-mails promoting U.S. BioDefense, including an October 18 message reciting the Company’s vague plan to “develop new treatment for neural diseases.”
Perhaps there is good reason for that enthusiasm. “Investment Opportunities” is published by Financial News USA (Pink Sheets: FNWU), which describes itself as “a next generation financial news network” that provides “an open forum for public companies, investors and professionals to publish news, strategies and tips.” Financial News USA, which has been distributing “news” about U.S. BioDefense for more than one year, apparently has been rewarded for its efforts. Financial News USA acknowledges that it may own up to 4.9% of the companies it promotes and a disclaimer on the Financial News website states that Investment Opportunities, Inc. is “in negotiations” to be paid “$10,000 in cash” in consideration for rendering promotional services on behalf of U.S. BioDefense.
That $10,000 compensation reflects only one fragment of the relationship between these companies – and certainly not the most significant aspect. The Financial News USA disclaimer acknowledges that U.S. BioDefense has the “same CEO” – although it does not name that individual. We found that information in public reports filed by U.S. BioDefense, which identify David Chin as the CEO of U.S. BioDefense and President of Financialnewsusa.com, Inc. In this case, Financial News USA has a significant interest in the Company it is profiling. Chin owns over 90% of the outstanding common shares of U.S. BioDefense.
The two companies have something else in common. They each occupy offices at 13674 E. Valley Blvd, City of Industry, California. So does Camino Real Career School, another company run by Chin. Camino Real Career School trains truck and bus drivers.
While Chin’s biography suggests considerable demands on his time - running two public companies and a driving school - it offers no meaningful insight into his professional background or qualifications to lead U.S. BioDefense. According to the Company, Chin studied general education, business and management at the University of Irvine from 1988 to 1993 and built a vocational training company – presumably the truck and bus driving school – from $100,000 in revenues in 1996 to $2 million in 2002.
How does that impact Chin’s ability to lead U.S. BioDefense? That, of course, depends on the business pursued by the Company. Where is the Company headed and what has it achieved so far? Again, that may be a matter of perspective. The Company’s website offers one distinct point of view.
On the Web
The “news” distributed by Financial News USA, and several recent press releases issued by the Company, suggests that U.S. BioDefense is heavily invested in the biotech field, with its hand in efforts to combat the avian flu and cancer research. The Company’s website places a somewhat different spin on the business plan. It describes U.S. BioDefense as “a high technology company that acquires, develops and finances Homeland Security related businesses and technologies for its own portfolio and those of its private and publicly traded corporate customers.”
Those are noble objectives, but there is nothing on the website that would suggest the Company actually has acquired, developed or financed any Homeland Security operations. Instead, the Company merely recites the government’s determination to strengthen homeland defense, noting that billions have been budgeted to develop vaccines against biological threats, such as anthrax and Ebola virus. And, in a rather odd turn, the Company describes how the government funds might help R&D efforts by Vaxgen, Inc. an established bio-tech firm that has no obvious relationship to U.S. BioDefense. As for U.S. BioDefense- while the Company claims that it “is an innovative technology transfer and corporate development company dedicated to acquiring patented homeland security technologies,” there is nothing that would suggest it has acquired any such technologies so far.
The Company’s website lists nine members of a “Scientific and Strategic Advisory Board,” whose areas of expertise range from law and investments to medicine and technology. The website does not indicate the level of participation by each of the experts or whether they are compensated for their efforts.
Despite the absence of discernible achievements, the website paints an ambitious picture of the Company’s goals, citing plans to carve a niche in the stem cell research arena. Here again, however, the Company focuses on the broader issue rather than its own accomplishments. According to the website, U.S. BioDefense had responded to “the potential of California’s $3 Billion Stem Cell Research Fund and a Department of Defense BioDefense Grant available to Embryonic Stem Cell technology commercialization” by positioning itself “to leverage the company’s Stem Cell technology transfer focus to increase shareholder value and place the company at the center of this emerging industry.”
What does this mean, other than signaling the Company’s intention to become involved in stem cell research – in some undefined manner? The website indicates that the Company’s principal tangible presence in the stem cell field consists of a “white paper” it published called “Collaborative Stem Cell technology Commercialization Opportunities in California.” Has U.S. BioDefense seized any of those “opportunities?” Does it have the resources to do so? The Company claims that it is evaluating licenses and has submitted research proposals with the assistance of “expert advisors.” Although the Company does not identify those experts, its “Scientific and Strategic Advisory Team” includes a “postdoctoral fellow” at Los Alamos National Laboratory, whose is described as a “specialist in embryonic, adult and germ cell isolation and culture.”
Observers who visit the website obtain a broad overview of U.S. BioDefense’s plans – but little else. Those who read the Company’s press releases may come away with a different impression.
And Over the Wires
U.S. BioDefense issues press releases with considerable frequency, somewhat unusual considering the Company’s limited achievements and activities – but perhaps not all that surprising since its CEO also runs Financial News USA. In fact, Financial News USA manages to insert seemingly superfluous references to U.S. BioDefense, almost daily, in press releases featuring news about other companies. Thus, by way of example, a press release featuring news about Ratheon included an unrelated reference to efforts by U.S. BioDefense to commercialize a flu vaccine, and a press release recognizing achievements by Boeing took pains to mention a luncheon attended by a U.S. BioDefense representative.
Then there are those press releases that focus solely on the Company. A number of those relate to the Company’s professed efforts to enter the stem cell research field. On January 13, 2005, for example, the Company announced that it had retained the consulting services of Tech IAConnect and Associates and Dr. Robert Gruetzmacher - to assist with its “stem cell technology commercialization initiative” and the preparation of its “white paper.” Dr. Greutzmacher was described as Director of Intellectual Property and Licensing at Dupont’s Center for Collaborative Research and Education. Neither of these consultants is listed on the Company’s website as members of its “Scientific and Strategy Advisory Team.”
The January 13 press release did not describe the nature or terms of those consulting agreements, and perhaps with good reason. StockPatrol.com spoke with Greutzmacher this week. He indicated that he has had no contact with U.S. BioDefense since entering into the initial consulting agreement almost one year ago, and never has been called upon to provide consulting services to the Company. He also noted that he has no background or expertise in stem cell research.
The January 13 press release also included a brief description of U.S. BioDefense – providing considerably more detail than the synopsis on the Company’s website. According to the press release, U.S. BioDefense is a “Department of Defense central contractor that researches, develops, and commercializes leading-edge biotechnology. The press release goes on to state that the Company “recently entered into a Commercial Evaluation License Agreement with the National Institutes of Health (NIH)” for a biotechnology “related to a method for universal inactivation of viruses, parasites and tumor cells” which can be” used as vaccines against the diseases caused by such viruses, parasites and tumor cells.” The Company claimed that it intended to conduct laboratory experiments “to evaluate the suitability for commercial development” and “has agreed to provide the facilities, personnel, and expertise to evaluate the commercial applications”
The Company did not indicate how it was funding these efforts, where the experiments would be conducted or by whom they would be monitored – but it certainly left the impression that the Company was actively laying the groundwork for an extensive research project.
A January 18 press release indicated further activities. The Company stated that it had filed a research grant proposal with the Small Business Administration. According to CEO, David Chin, the Company’s “technical objective is to grow large bioengineered skin grafts from embryonic stem cells” and to “develop a product that will enable medical personnel to react quickly and efficiently in the face of biological warfare in the midst of the battlefield, abroad and within our national borders.” To achieve this goal, U.S. BioDefense proposed a collaborative effort between doctors, universities, major corporations and the government. It was unclear what role the Company intended to play in this process.
Three days later the Company was set with another announcement. A January 21 press release said that U.S. BioDefense was developing an “open source” stem cell research platform which would provide access to broad-based research efforts – in other words, a clearing house for research. Was this a departure from the Company’s plan to conduct its own research – or just an additional product?
How would the Company profit from this new initiative? Chin claimed that revenues would “quickly scale up” from the sale of these open source tools and by “commercializing leading edge technology.” The press release offered no indication of what those revenues might be or when they might arrive.
The Company’s press machine continued to spin noting, among other things, a series of options to license “patent applications.” A January 25, 2005 press release revealed that U.S. BioDefense had signed an “option license agreement” with an unidentified “major university” and would now evaluate an adult stem cell technology that can be applied to gene therapy. The press release cited recent studies on tissue grafts, but did not indicate whether they related directly to the Company’s latest project. Although few details of the option were included in the press release, the Company promised to provide significantly more information once the option agreement was exercised in June 2005.
We were unable to find any later announcement detailing this option- although in October 2005 the University of Minnesota terminated an option to license a stem cell patent application to the Company. U.S. BioDefense did not indicate why this option had been cancelled.
Another option met a similar fate. On February 23, 2005, the Company announced that it had signed an agreement to license certain patent right applications from UCL Biomedica, PLC, a subsidiary of University College in London. These patents, the Company explained, related to the treatment of liver disease. Again, terms of the license were not disclosed.
On August 9, 2005, U.S. BioDefense issued a press release disclosing that UCL Biomedica had canceled the license, claiming that the Company had failed to pay agreed upon fees. U.S. BioDefense, which did not disclose the amount of those fees or the payment schedule, denied any default and said it would consider filing a complaint against UCL.
The Company also issued a July 6 press release announcing that it had entered into a six month option to license a “patent application” from the University of British Columbia. The press release claimed that the patent application related to “neural crest stem cell” research and its utilization to treat brain and spinal cord repair. Once again, the Company revealed few details of the option agreement, promising to do so after final evaluation and exercise of the option in the last quarter of 2005. On September 20, 2005, the Company announced that it had received its first stem cell line as part of this agreement and had extended the option for an additional six months.
These announcements and other press releases suggested that the Company was actively pursuing its stem cell research initiative. A February 8, 2005 press release indicated that U.S. BioDefense had signed a “secrecy agreement” with a $4 Billion New York Stock Exchange listed company to explore a potential relationship for its “Stem Cell technology transfer initiative.” No details of the agreement were provided – other than the fact that it was secret.
The announcements continued, conveying the notion that U.S. BioDefense was becoming a player in the stem cell research field – but providing few details of substance. A few examples:
• On February 11, David Chin announced that the Company would file a proposal for funding under a stem cell research program conducted by the National Institutes of Health. Chin claimed that U.S. BioDefense was in discussions with “prominent Southern California Doctors, researchers, and educational collaborators at hospitals, universities, small and blue chip companies in order to study the feasibility of founding a Stem Cell Research Center for the rapid development of Stem Cell technology.”
• On February 28, the Company announced the launching of T2X.us, which it described as a search engine identifying intellectual property, and modeled on Google. The Company subsequently described the search engine as an open source where buyers can identify technology that is available for licensing or purchase. On June 20, the Company issued a press release announcing an agreement to list patent pending technologies developed by Diamond I, Inc. As best we can determine, U.S. BioDefense has not indicated how it would generate revenues from the search engine.
• A May 10 press release announced a “definitive agreement” with the University of Texas MD Anderson Cancer Center which gave U.S. BioDefense the “priority option” to review and license a patent pending technology entitled “Use of Non-marrow Stem Cell for Cardiac Regeneration.”
• On May 20 the Company said that it planned to position its stem cell division for an Initial Public Offering. There is no indication that this IPO has moved forward or is imminent.
• On October 18, the Company announced plans to collaborate with an entity called AntiCancer Inc. to research ways to use “human neural crest stem cells” and their potential in human transplantation.
Each of these announcements reflected the Company’s avowed efforts to advance stem cell research. But stem cell research invites controversy. Where does the Company stand on the polarizing issue of embryonic stem cell research? On July 28, 2005, the Company announced that it had sponsored the successful launch of 1-800-Stem-Cells.com a part of an effort to accelerate awareness of preserving blood from umbilical cords – Cord Blood Banking - and the advancement of stem cell research.
As we discovered, 1-800—Stem-Cells.com is designed to foster a distinct point of view – one which would not include encouragement of embryonic stem cell research. The site is maintained by the United States Conference of Catholic Bishops and while it would appear to support the concept of Cord Blood Banking, it espouses views that are decidedly at odds with embryonic research efforts.
The Company’s recent press releases have created a new impression – that U.S. BioDefense is involved in efforts to fight the potential pandemic posed by avian flu. A November 2, 2005 press release was headlined “U.S. BioDefense, Inc. Updates Shareholders on Viral Inactivation Method and Comments on President Bush's $7.1 Billion Dollar Plan for Pandemic Flu-Fighting Strategy” – an evident attempt to tie the Company’s nascent activities to the President’s plan.
According to the November 2 press release, the Company’s viral inactivation method “will provide for a safe, non-infectious composition for vaccination against the corresponding agent, whereas some current vaccines; have a risk of infectivity associated with them. This method can be applied towards the influenza virus to develop a more effective vaccine.” The Company says that the “invention” was developed with support from the National Cancer Institute and that the U.S. government has “certain rights” in the product – but fails to explain the nature of its relationship with the National Cancer Institute or the basis for the government’s interest in the “invention.” U.S. BioDefense offers no information that would suggest that this product, assuming it ever is fully developed, would help protect against avian flu, or that it might do so on a timely basis.
So why did the Company’s “viral inactivation” share billing with the President’s proposal? As we noted earlier, it has become common for Financial News USA to include U.S. BioDefense in press releases highlighting activities by better established companies and better known individuals. Call it credibility by association, but it fails to answer fundamental questions – exactly what has the Company accomplished and how does it generate revenues?
The Company continued its ride on the bird flu bandwagon on November 15, 2005, when it issued a press release headlined, “U.S. BioDefense, Inc. Explores Strategic Response to Bird Flu Utilizing New Universal Viral Inactivation Method.” The body of the press release hardly supported that bold headline. While the Company noted the dangers of epidemics in general, and the perceived threat of a potential bird flu crisis, it offered little indication that it was positioned to play any significant role in addressing that problem.
Instead, the Company again offered general statements that implied but did not establish the value of its product. The Company said that it was “working with the National Institutes of Health to commercially evaluate its Universal Viral Inactivation Method.” What was the nature of that “working” relationship? The press release did not provide any details, but it seemed that any connection between the Company’s technology and a bird flu treatment had not advanced beyond the conceptual stage. U.S. BioDefense stated that it was “seeking major commercial partners to utilize the inactivation method to explore the development of a special vaccine to combat the bird flu and the potential occurrence of an influenza pandemic.” Could the Company proceed without such partners? Had any entities accepted or declined the invitation? Again, the Company did not say.
The November 15 press release was followed by the Company’s announcement – embodied in the spam email that first called our attention to U.S. BioDefense – of its application to produce a version of TAMIFLU. Nothing indicated that the Company had the financial resources or production capacity to fulfill that task. Still Financial News USA featured this “news” in a series of press releases announcing business developments at Raytheon, Amgen and Northrop Grumman.
Does U.S. BioDefense belong in such lofty, established and well-financed company? One final perspective provides a more sobering view, and sheds some light on that question.
On The Record
Public filings – particularly audited financial statements - tend to open a realistic window on a company’s condition and prospects. Often, this disclosure contrasts starkly with hyped up information from promoters, press releases and website.
In the case of U.S. BioDefense, the public reports offer a dose of reality – few assets, minimal revenues, and a daunting deficit. As of August 31, 2005, the Company’s assets totaled $19,797, consisting of $10,797 in cash and $9,000 in unidentified “investments.” Liabilities were approximately $21,000, while the accumulated deficit totaled nearly $3.8 million.
The Company’s Form 10-Q Report for the quarter ended August 31, 2005 reflected revenues of $25,000 for the three month period – none of which had been generated by the projects or initiatives reflected in the Company’s myriad press releases. All of the Company’s revenues for the fiscal year had been received from its affiliate, Financialnewsusa.com, in exchange for an agreement to develop content for something called “Biodefense Industry News.” As noted earlier, David Chin is an officer of both U.S. BioDefense and Financial News USA.
The Company, which conceded that it generates “minimal revenue from its operations,” said that it planned to raise funds by selling common stock “or other means” with a view toward “moving forward” with the development of its homeland security and biodefense products. The Form 10-Q did not indicate the status of any of those products or the likelihood that they will generate revenues at any time.
Indeed, the Form 10-Q contained no information that would suggest that the Company is actively conducting research, developing products, or marketing technology – even though various press releases left the distinct impression that such activities were well underway. The Form 10-Q did not discuss any tangible efforts to further stem cell research or combat viruses. It makes no reference to the Company’s various options to license patent applications from major universities. In short, it offers little to confirm the optimism embodied by the Company’s press releases.
And while the Form 10-Q noted that U.S. BioDefense is “a registered government contractor with the Department of Defense Logistics Agency that is focused on designing and developing homeland security and biodefense products,” the value of that relationship is questionable – at best.
The Defense Logistics Agency (DLA) is a logistics combat support agency whose primary role is to provide supplies and services to America's military forces worldwide. The DLA awards 8,200 contracts daily and deals with over 24,000 different suppliers who supply every imaginable item to the armed forces – from food and clothing to medical supplies and construction materials. Based upon its public reports, U.S. BioDefense does not appear to have anything of value to supply to those troops. Consequently, at present, there seems to be little value to its status as a “registered government contractor.”
The Form 10-Q also noted that the Company paid $3,500 in November 2004 to a division of the U.S. Department of Health and Human Services for a six-month nonexclusive license to evaluate the suitability for commercial development of cellular and viral inactivation. It did not state whether U.S. BioDefense conducted any activities under that license or if it has been extended or renewed.
The Company’s Form 10-K for the year ended November 30, 2004, which was filed in April 2005, conceded that no products had been developed, and no money had been expended on research or development under the license.
That Form 10-K indicated that on February 15, 2005, the Company had retained a consultant to assist with preparation of its National Institutes of Health proposal relating to the creation of a “Stem Cell Research Center of Excellence.” The Form 10-K did not identify the consultant, although it said he (or she) would be paid $100 an hour for these services. Consequently, it is not clear whether the Company was referring to the agreement with Dr. Greutzmacher, who maintains that he never rendered consulting services and is not an authority on stem cell research.
The public filings leave little doubt that this Company is in a nascent stage. According to the Form 10-K, the Company “intends” to provide services in the biological defense area, but is continuing to develop “internal operations” and research “potential opportunities.” And while the Company claims that it expects a substantial portion of its proceeds to flow from the federal government, so far its only income has been derived from a sibling corporation. David Chin, who runs both companies, reportedly devotes approximately 10 hours a week to U.S. BioDefense - which the Company considers adequate in view of its limited operations.
Can this be the same Company who “activities” have been highlighted boldly in press releases, promotional e-mails and on its website – and which has been paired with a string of successful businesses in press releases issued by Financial News USA? What accounts for such divergent “information?”
Could it simply be “Rashomon?”
IF YOU HAVE QUESTIONS OR COMMENTS FOR STOCKPATROL.COM, CONTACT US AT editor@stockpatrol.com
All content © 2006 StockPatrol.com
AR's plight reminds me of another story:
You're not alone, Dennis
Tyco's Kozlowski joins a long list of prominent personalities who have faced tax evasion charges.
June 5, 2002: 7:59 AM EDT
NEW YORK (CNN/Money) - Tyco International's former CEO Dennis Kozlowski may be the latest business mogul to be indicted for tax evasion -- but he certainly isn't the first. A who' who list of athletes, gangsters, investment bankers and politicians have faced similar charges.
Here's are some notable tax cases.
Al Capone. The Internal Revenue Service charged the Chicago crime boss with failure to pay four years' worth of taxes. Despite his pleas of "this is preposterous, you can't tax illegal money," Capone was sentenced to 11 years in jail and an $80,000 fine in 1930.
J.P. "Jack" Morgan. Morgan became the senior partner of investment bank J.P. Morgan after his father, J. Pierpont Morgan, died in 1913. Upon returning from a trip to Europe, Jack told reporters waiting at the dock that he had no remorse about not paying taxes in 1931 and 1932. "If [Congress] doesn't know how to collect them, then a man is a fool to pay," he added.
Leona Helmsley
Joseph Nunan. Nunan, who was IRS commissioner from 1944 through 1947, made a $1,800 bet in 1948 that Harry Truman would win the Presidential election. He won the bet but did not report the winnings to his employer. Nunan was convicted of tax evasion in 1952.
Spiro Agnew. The former vice president to Richard Nixon pleaded no contest to one count of tax evasion in 1973. Agnew agreed to resign, received three years probation and paid a $10,000 fine.
Leona Helmsley. Claiming "only the little people pay taxes," the real estate heiress and her late husband withheld millions in tax revenue. Helmsley received two years in prison and a $7 million fine for her 33 counts of tax evasion.
Pete Rose
Pete Rose. Major League Baseball's all-time leader in hits, who is banned from the Hall of Fame for alleged gambling indiscretions, was sentenced to five months in jail, a $50,000 fine and 1,000 hours of community service in 1990 for evading taxes.
Heidi Fleiss. The world's oldest profession also gets a 1040. The "Hollywood Madam" served 20 months for evading taxes on her call-girl service to the stars.
Peter Max. The artist was sentenced to two months in prison and 800 hours of community service after concealing more than $700,000 in income from art sales and trades.
Marc Rich
Marc Rich. Rich was indicted for evading more than $48 million in taxes in 1983. He also was charged with 51 counts of tax fraud and with running illegal oil deals with Iran during the Iran hostage crisis, but President Clinton pardoned the fugitive financier in one of his last acts in office.
Dennis Kozlowski. According to an indictment from Manhattan District Attorney Robert Morgenthau, Kozlowski bought six paintings worth $13.2 million using funds borrowed from Tyco, including valuable pieces by Renoir, Monet and other artists, but avoided paying any of the $1.1 million in New York sales taxes by persuading art gallery employees in New York and London to ship empty boxes to the company's offices in Exeter, N.H. Kozlowski, 55, pleaded innocent Tuesday and was released on $3 million bail.
-- Money magazine contributed to this report.
Terry Ramsden
1991 Arrested in America at the request of the Serious Fraud Office, which is trying to extradite him back to Britain. Spends six months in jail in Los Angeles
1992 Ramsden agrees to return to Britain where he is declared bankrupt with debts of £100m
1998 Sentenced to 21 months in prison for concealing assets from bankruptcy officials. He serves 10 months
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http://www.blogmaverick.com/entry/1234000137073540/
Naked Shorting - The Real Bad Guys
I got a very interesting email a few minutes ago. I cant say I have fact checked it exhaustively. I havent. Im sure the Naked Shorting Sithmeisters will weigh in with their comments about any perceived or real inaccuracies. Facts can never get in the way of a war, so every side and every word will be spun by all those with something at stake.
Personally, the only thing I have at stake is the ongoing entertainment value of all of this. My 20k shares short of Overstock will continue to do just fine. ( Patrick Byrne, if you want to lend me any of the shares you own and have taken possession of, I would be happy to borrow them and short them).
But I digress. Here is the information I received. You can do your own research before coming to any conlusions. Im sure the comments to this blogpost will be very, very interesting.
Ive been following your blog and have been particularly amused by your postings about Patrick Byrne, Overstock.com and the mysterious people behind the anti-naked shorting movement.
Ive spent quite a bitof time tracking a vast network of corrupt executives, financiers and brokers who route discounted shares of obscure U.S. companies overseas through sham private placements and venture capital deals and then resell them to foreign investors at marked up prices, through unlicensed securities boiler rooms
A few weeks ago, I learned that shares of one such company, Private Trading Systems Inc. of Scottsdale, Ariz. (Pink sheets: PVTM), were being offered to European investors by an apparently fictitious brokerage calling itself Anglo Swiss Consulting (fictitious in the sense that it is not registered with any nations regulatory agency and that its Internet site is something of a Potemkin storefront.)
When I looked into Private Trading Systems, I noted that its chairman, chief executive, treasurer and corporate secretary is none other than C. Austin BUD BURRELL, whose dire warnings about naked shorting have been featured at NCANS.net, on the Bob OBrien blog and similar Internet sites.
BURRELL also has been a litigation consultant for John OQuinn, the Texas lawyer representing Overstock.com in its suit against Rocker Partners, Gradient Analytics and other defendants who allegedly undermined the companys stock through nefarious shorting activities.
Its worth noting that shares of Endovasc Inc., another company that is part of the anti-naked shorting coalition, also were sold by a foreign boiler room known as Bellador Advisory Services.
Theres another interesting aspect to Private Trading Systems. According to the Form 10-12 that Private Trading filed earlier this month with the SEC, its biggest shareholder, with a 43.2 percent equity stake, is T.P. Ramsden.
The filing said Ramsden controlled the rights to the technology behind the trading system that the company is developing to allow institutional investors to privately trade securities, instruments, or any financial asset that is capable of being converted to electronic form.
What Private Trading Systems SEC filing did not say is that T.P. Ramsden is Terry Ramsden, once a highflying British bond trader, who pleaded guilty to investment fraud in the 1990s and later was convicted of bankruptcy fraud. He was sentenced to 21 months in prison, and served 10.
Ramsden is making a comeback of sorts, and has raised eyebrows in British investment circles by taking positions in several small public companies whose shares have moved upward after his arrival (Hansard Group is one example).
I offer this tale as yet another example of the kinds of activities that members of the anti-naked shorting coalition have been engaging in, while claiming that it is their detractors who are involved in dishonest undertakings.
Feel free to use this information as the basis for a new blog post
Let the comments begin.
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Terry Ramsden
1991 Arrested in America at the request of the Serious Fraud Office, which is trying to extradite him back to Britain. Spends six months in jail in Los Angeles
1992 Ramsden agrees to return to Britain where he is declared bankrupt with debts of £100m
1998 Sentenced to 21 months in prison for concealing assets from bankruptcy officials. He serves 10 months
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Ramsden's back and banking on Atalza
The returning big-time gambler tells Greg Wood why he is punting on a 66-1 outsider
Saturday April 3, 2004
The Guardian
The word was out last summer but there were many who had their doubts. Terry Ramsden, the whisperers said. He's back. Yeah, right, we said. We'll believe it when we see it. Then we did see it, and still we didn't quite believe. There he was in the winners' enclosure at Lingfield in December. ####-sparrer Terry, Thatcherism's poster boy, the loudest and brashest Flash Harry of them all.
"My name's Terry," he once said. "I'm a stockbroker from Enfield. I've got long hair and I like a bet." Didn't he just. At one point in the mid-1980s Ramsden was said to be worth £150m, he had 100 horses in training and regularly bet in sums that would pay off the average mortgage. But then he crashed and burned along with the markets, and lost the lot. The last time anyone heard, he was bankrupt, in jail, and out of the racing game for good.
Article continues
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But it certainly sounds like Ramsden on the phone. An interview? No problem. You can tell everyone how I'm going to give £350,000 to the kids of Liverpool if Royal Atalza wins the National. Great, Terry, thanks. So where are you based these days?
"Based? I'm not really based anywhere right now. I've bought a house in Northamptonshire next door to David Beckham's, but I haven't moved in yet. I've got a place on the waterfront in Chelsea but it's still not decorated. So I'm just having to live at the Conrad Hotel."
It's him all right. He's back. Believe it.
The next morning, we are sitting in the breakfast room at the (five-star, suite-only) Conrad. There are three of us at the table: me, Terry, and Terry's self-belief. It is a tangible presence which cannot be ignored. He has been through so much, but in this, at least, he hasn't changed a bit.
He always was cocksure, and even the six months he spent in a hell-hole of a prison in Los Angeles in 1991, awaiting extradition to Britain to face fraud charges, did not knock it out of him. Gang warfare was raging all around, and he fully expected to come home in a body bag.
"Yeah, that was rough, and it was hard to stay alive," he says, and for a moment his fizz goes flat at the memory. Not for long, though. "But what I always say is that I was blessed. Not with the face, it's a shame about that, but I was blessed with a fantastic brain and a strong heart, and I think I've always opened my heart to things that need to be done. Some people have pretty faces, and some people have pretty arses. I have assets, and I've used them."
He returned to Britain in February 1992, was declared bankrupt shortly afterwards, and received a two-year suspended sentence in 1993 after pleading guilty to recklessly inducing fresh investment in his company, Glen International.
He could not escape jail five years later, though, when he was sentenced to 21 months for failing to disclose £300,000 worth of assets, a breach of the Insolvency Act. He said that he was using the money to buy a house for his wife and child, in an attempt to save his collapsing marriage. He emerged in 1999, broke and alone.
"I went all the way down," he says. "I had no friends, nowhere to live, I was bankrupt and I'd just been in prison, and that's probably as far down as you can go. The easiest thing to do would have been to boo-hoo and give up, to end up in the gutter drinking wine and feeling sorry for myself, but you'll never hear me boo-hoo. I'm not in the giving-up business. If I was I wouldn't be here, would I? I always thought I'd get my second chance, and now I have, and I've earned it."
Ramsden's second chance is founded on a revolutionary trading system for securities and currencies, which works a little like a betting exchange for the stock market.
"In terms of matched order, it would not be dissimilar to Betfair," he says. "In terms of speed and capacity, it would far outweigh anything that anybody has seen before. How much money is that worth? I don't know, but it will be a very, very large amount of money. I mean, a large amount."
But Ramsden has other priorities these days. "Other than revolutionising trading, the other thing I really want to do is build a major children's hospital. I've got a new partner and we're planning to start a family.
"And, in June, my court case [against the Inland Revenue, which forced him into bankruptcy] comes up. I can't say too much about it, but I'm 100% sure that I will be totally exonerated, and the reality of what happened to Terry Ramsden will become clear for the world to see.
"They might think they'll get some nice, quiet deal, but guys, you waited too long, and I'm way, way too strong for you now. They've wriggled and jiggled and now, end of June, they pay the bill. No way out, as they say in WWF."
You can only believe him, and he also retains the cheerful, devil-may-care outlook that made him so popular with the punters. It is 19 years now since one of his most spectacular bets, on Mr Snugfit in the National. "The truth of that is that I had half a million quid each way, quote, unquote. Anything else you hear is ########." As for Royal Atalza, an outsider for today's race, "on jumping ability and his rating he should go a long way. He's got a great young jockey [Paul Moloney] and if he's still there with three to go it will take a good one to beat him. But really I just hope the kid rides safe and he comes back in one piece."
Optimism, always optimism, even when his horse is a 66-1 chance. It has carried him back from the edge of the gutter, and the ride has surely not finished yet.
"I always said I wanted to be the first self-made British billionaire, which I wasn't," Ramsden says. "Wouldn't it be funny if that's how I ended up? That would be such a crack.
"I think what's different about my life at the moment is that there's a momentum behind me now, and it will be very hard to stop me. I can't be sure I'll win every race but I will always travel strongly and I'm not easily beaten. When you're hot, you're hot, and right now, this time, this place, I'm there. I don't know how long it will last but, right now, I've really got it going on."
A chequered career
1984 Buys the filly Katies for £500,000, which goes on to win the Irish 1,000 Guineas
1986 Lands a £500,000 each-way gamble when Mr Snugfit finishes fourth in the National
1987 Ramsden's company Glen International collapses
1988 Is "warned off" racing by the Jockey Club after failing to keep up repayments to Ladbrokes
1991 Arrested in America at the request of the Serious Fraud Office, which is trying to extradite him back to Britain. Spends six months in jail in Los Angeles
1992 Ramsden agrees to return to Britain where he is declared bankrupt with debts of £100m
1998 Sentenced to 21 months in prison for concealing assets from bankruptcy officials. He serves 10 months
1999 After release begins building another fortune in the private treaty market. Creates a revolutionary trading system which speeds up the transaction of equities. His new company has a market capitalisation of £250m
2003 The Jockey Club clears Ramsden to go racing again and to own horses. Returns to the track in October at Newmarket. His two-year-old Jake The Snake, named after his teenage son, wins the Bet Direct No Q Maiden Stakes at Lingfield in December, his first victory since his return
----------------------------------------------------
"In 1993 it fell to Pownall to sentence Terry Ramsden, who had pleaded guilty
to fraudulently inducing investors to invest £90 million in his company Glen
International. A postman's son from Essex, Ramsden had become the archetypal "
His Honour Henry Pownall
(Filed: 07/08/2003)
His Honour Henry Pownall, who has died aged 76, became one of the Old
Bailey's most popular and respected judges after a successful career at the
Criminal Bar.
When The Sunday Telegraph ran an article entitled "The Good Judge Guide" in
1987, Pownall was listed among the top 20 members of the bench; he was,
furthermore, said to be one of four judges before whom one could hope to
have "a less run-of-the-mill, perhaps livelier, more entertaining, more
memorable, at any rate more absorbing trial".
Pownall was praised as "a fine judge whose intelligence, tact, fairness and
charisma have won him golden opinions. . . He speaks in a warm, velvety
baritone and reprimands poor, struggling counsel more in pity than in
anger".
As an advocate at the Bar, Pownall's great assets were his charm and obvious
fairness, which tended to make juries desperate to accept what he said; he
was thus a deadly prosecutor. On the bench, he exhibited a self-deprecating
demeanour and unfailing courtesy, as well as an impish sense of humour.
Among the many high-profile cases at which he presided, perhaps the most
complicated was the trial of the three men and a woman who had plotted to
"cleanse" half of the £26 million worth of gold bullion robbed from the
Brinks Mat vault near Heathrow.
At the end of the case, which was beset by fears of "jury nobbling", lasted
more than a year, and cost £7 million, Pownall jailed the defendants for
between five and 10 years. He told them: "There can hardly have been a more
serious case of handling than this."
In 1993 it fell to Pownall to sentence Terry Ramsden, who had pleaded guilty
to fraudulently inducing investors to invest £90 million in his company Glen
International. A postman's son from Essex, Ramsden had become the archetypal
1980s City whizz-kid, buying racehorses, Walsall football club and being
described by the Racing Post as "the biggest punter in history".
Accepting that Ramsden had offended out of criminal financial recklessness
rather than dishonesty, Pownall gave him a two-year suspended prison
sentence.
In one of his last cases on the bench, in 1999, Pownall dismissed an attempt
by City of London police to force newspapers to hand over pictures and notes
of the "carnival against capitalism" demonstration, saying that "necessity"
had to be convincingly established by the police. With its implied reference
to the European Convention on Human Rights, Pownall's judgment was seized on
as a landmark decision regarding the incorporation of the Convention into
British law.
Henry Charles Pownall was born on February 25 1927; he was the fifth
successive generation of his family to supply recruits to the Bar.
On leaving Rugby, Henry joined the Royal Navy, serving on the lower deck in
the Mediterranean at the end of the war. Demobbed in 1948, he went up to
Trinity, Cambridge, to read Law. Called to the Bar by Inner Temple in 1954,
he entered the chambers of G D "Khaki" Roberts, formerly resident leading
counsel at Nuremberg, at 2 Harcourt Buildings.
After pupillage, Pownall began practising in criminal cases on the
South-Eastern Circuit, much of his work coming from the Bank of England, on
whose behalf he prosecuted in banknote cases. He was an understated and
quietly effective advocate, punctilious and scrupulously fair as a
prosecutor.
He was Junior Prosecuting Counsel to the Crown at the Central Criminal Court
(Old Bailey) from 1964 to 1971, and then Senior Prosecuting Counsel from
1971 to 1979, when he took Silk.
Having gained judicial experience as a Recorder of the Crown Court since
1972, and as a Judge of the Courts of Appeal of Jersey and Guernsey since
1980, he was appointed to the bench as Resident Judge at Knightsbridge Crown
Court in 1984. He was a Permanent Judge at the Central Criminal Court from
1997 to 1999.
Although he was by nature inclined to say what he thought, Pownall allowed
himself to be constrained by his office, but he took the opportunity of his
retirement speech, at the Old Bailey's Court One, to deliver a withering
indictment of "political correctness in all its horrid forms" and a thinly
veiled attack on such directives from the Lord Chancellor Lord Irvine.
Speaking two days after Lord Irvine had launched a revised Equal Treatment
Bench Book, a guide for judges on how to avoid any perception of racial bias
or insensitivity (including the suggestion that judges should respect the
Rastafarian "sacrament" of smoking cannabis), Pownall said: "I find it sad,
even offensive, to be bombarded with bumf from on high telling me I must
disclose any personal interest I might have which might be seen to have some
effect on my judgment - as if I had not conformed since pupillage."
He went on: "There are those who will find prejudice around every corner.
They find it where none exists and they find it where none is intended. It
is time somebody said there is none of it in this building in any of us. We
do as we will be done by."
Henry Pownall was elected a Bencher of the Inner Temple in 1976. He was a
Member of the Committee of the National Benevolent Institution and a Freeman
of the City of London.
He was an expert on medals and medal ribbons and the possessor of one of the
largest collections in the country. A past president of the Orders and
Medals Research Society, he was the author of several books on the subject,
including Korean Campaign Medals 1950-53.
Occasionally he was to be seen arriving at court with his beloved dog,
Muffin, on a lead.
Pownall, who died on July 29, married in 1955, Bettine Deverell, who
survives him along with a son and a daughter. Another daughter died in
infancy.
-----------------------------------------
Sources say RAMSDEN may have invested in Enterprises Solutions and similarly tried to get others to invest. RAMSDEN couldn't be reached for comment.
http://www.smartmoney.com/stockwatch/index.cfm?story=200005101
But the SEC isn't done. Sources say regulators are looking into a possible connection between some of those European partnerships and British investor Terry RAMSDEN. In the 1980s, RAMSDEN, a noted high-stakes gambler, was listed as Britian's 57th richest man, but he lost most of his fortune when the Japanese stock market collapsed nearly a decade ago. After filing for bankruptcy, he was charged with fraud for trying to conceal some assets and ultimately spent 10 months in jail. Sources say RAMSDEN may have invested in Enterprises Solutions and similarly tried to get others to invest. RAMSDEN couldn't be reached for comment.
Stock Watch
Out of Luck
By Matthew Goldstein Published: May 10, 2000
Click here for more stories by Matthew Goldstein .
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The $2.3 Million Hot Potato
It may be hard to believe, but there's $2.3 million sitting in two accounts at a New York brokerage that no one wants to claim.
Securities regulators say the money and stock in the accounts represent some of the ill-gotten gains from the alleged stock scam involving Enterprises Solutions, the Canton, Mass., Internet-security firm. The accounts are registered with two offshore limited partnerships based in the British colony of Gibraltar. The Securities and Exchange Commission alleges that Herbert Cannon, a Florida stock promoter, secretly controlled those entities — a charge Cannon denies.
At a recent hearing in Manhattan federal court to determine whether a temporary freeze on those assets should be lifted, no one appeared to represent the Gibraltar partnerships. In the absence of any objection, U.S. Southern District Judge Miriam Cedarbaum extended the freeze until a trial is held later this year on the underlying civil fraud charges against Enterprises Solutions, Cannon and John Solomon, the company's chief executive. That means Wall Street Equities, the brokerage firm where the accounts are held, can't transfer or release the money to the owners.
Government lawyers had rushed to court on April 6 to obtain a temporary restraining order after they got word that a representative of the offshore entities had asked Wall Street Equities to liquidate the accounts and transfer the proceeds overseas. In court papers, regulators contend Cannon personally instructed brokers at Wall Street Equities to sell shares of Enterprises Solutions when the company's stock was rising sharply earlier this year.
The SEC suspended trading in Enterprises Solutions stock on March 30, after its shares shot from $7 to just under $22. Though the 10-day suspension expired at midnight April 12, the stock has yet to resume trading on the OTC Bulletin Board. For the past two weeks, shares have sporadically traded on the Pink Sheets, the loosely regulated trading platform run by the National Quotation Bureau. Daily volume has averaged a few thousand shares, compared to the 260,000 shares that changed hands the day before trading was halted. At last count, shares of Enterprises Solutions were selling for $7.
— Matthew Goldstein
THOMAS J. MURPHY was no stranger to risk. A former craps dealer on the Las Vegas strip, Murphy enjoyed playing high-stakes poker and dabbling in speculative stocks. But sometime on March 31, the longtime Las Vegas resident decided he'd overplayed his hand.
For weeks, Murphy had been recommending a tiny stock called Enterprises Solutions (EPSO) to just about anyone he met — relatives, friends, even people he played poker with in the casinos. And for a time, it seemed his tip was a winner. Between March 21 and March 29, shares of the fledgling Internet-security company rocketed from $7.38 to nearly $22 on the National Association of Securities Dealers' OTC Bulletin Board.
Then, on March 30, the Securities and Exchange Commission suspended trading. The SEC was concerned, it said, about the veracity of several press releases issued by the company. People whom Murphy had advised to invest in the company began calling his home, wanting to know what was going on. Murphy, apparently as distraught as they, didn't know what to tell them.
Around 10:30 a.m. PT on March 31, Murphy called his wife of 24 years, Virginia, at her job as a casino entertainment director and left a message on her voice mail saying he loved her. Then the 49-year-old marketing executive hand-wrote a three-page letter to her and their two college-age children, drove to a shooting range, rented a gun and took his life. In his letter, Murphy instructed his wife to tell anyone who asked that he had believed Enterprises Solutions was a legitimate company.
"I think he was mortified and ashamed,'' said Virginia Murphy in a recent interview. "I think the phone calls upset him. When it stopped trading, it upset him. He felt unbearable guilt. It wasn't just about our finances. He felt personal responsibility."
In the days immediately after Murphy's death, things got worse for investors in Enterprises Solutions. The SEC filed civil fraud charges against the Canton, Mass., company and Chief Executive John A. Solomon, charging them with issuing misleading press releases about a product the company claimed to have developed to protect Web sites from hack attacks. Regulators contend the company has no such product. In fact, SEC lawyers say, Enterprises Solutions isn't much of a company at all — it has no revenues, no customers and just a handful of employees. The company and Solomon deny the fraud charges and insist the company was on the verge of lining up customers when the SEC swooped in.
Federal regulators also are pursuing fraud charges against Herbert Cannon, a Boca Raton, Fla., stock promoter whom the SEC alleges was the scam's mastermind. According to the Commission, Cannon, who has a long history of fraud convictions and securities violations, secretly controls two foreign limited partnerships that at one time owned nearly 15% of Enterprises Solutions' 3.2 million outstanding shares. In all, 61% of the company's outstanding shares are owned by 15 European entities.
Regulators say that while Enterprises Solutions stock was soaring, Cannon and some of the European partnerships were selling thousands of shares through accounts held at a New York brokerage, taking in at least $2.3 million. Cannon denies having "any legal or beneficial ownership interest" in the accounts.
But the SEC isn't done. Sources say regulators are looking into a possible connection between some of those European partnerships and British investor Terry RAMSDEN. In the 1980s, RAMSDEN, a noted high-stakes gambler, was listed as Britian's 57th richest man, but he lost most of his fortune when the Japanese stock market collapsed nearly a decade ago. After filing for bankruptcy, he was charged with fraud for trying to conceal some assets and ultimately spent 10 months in jail. Sources say RAMSDEN may have invested in Enterprises Solutions and similarly tried to get others to invest. RAMSDEN couldn't be reached for comment.
While SEC lawyers won't comment on Murphy's ebullient stock touting, there's no indication that they're looking at anything he may have done or said. Still, there's no easy explanation for why he was so eager to spread the word about Enterprises Solutions — or, for that matter, why some investors took his advice. Virginia Murphy claims her husband simply was a gregarious fellow and compares his enthusiasm for Enterprises Solutions to getting "caught in a whirlwind." Whatever his motivation, Murphy's story sheds light on how investors are drawn to such speculative stocks.
One investor says he learned of Enterprises Solutions from Murphy during a February trip to Las Vegas, where the two met in the poker room of Steve Wynn's splashy new Bellagio Hotel & Casino. The investor, who didn't want to be identified, recalls Murphy as a boisterous man who seemed to be a regular in the poker room. Over the course of an evening, Murphy told him he had a hot stock tip, then suggested he invest in Enterprises Solutions.
Murphy gave the investor his card, and over the next few weeks the two had more conversations by phone. Each time, the investor says, Murphy became more effusive about Enterprises Solutions, once concluding a voice message by exuberantly shouting, "EPSO! EPSO!" The investor says he finally bought 400 shares in late March, when the stock was trading around $15. When the SEC later halted trading, he called Murphy, who sounded "haggard." Murphy told him his phone "had been ringing off the hook."
According to other investors, Murphy's wife and some of his friends, Murphy, who spent more than 20 years dealing craps at the Tropicana Casino before taking a job marketing health-food products over the Internet, was indeed a fixture in Vegas's casino poker rooms. And he liked to chat up anyone who'd listen. "Murph," as he was known, "was advising quite a few people to invest in [Enterprises Solutions]," says Margaret Larsen, one of his partners at Marketing Opportunities Group. "I was probably one of the few people he didn't tell about it."
Murphy's wife says she doesn't know how her husband learned of the company. She's not even sure how much he invested. A friend says Murphy got hooked during a conversation with Enterprises Solutions' investor relations manager, Vancouver businessman Eugene Hodgson — whom he met in a casino. Hodgson, identified as a contact person on several Enterprises Solutions press releases, declined to comment.
It's perhaps fitting that Las Vegas — which in recent years has emerged as an epicenter of stock manipulation schemes and "pay-for-hire" newsletters that tout stocks for a fee — would play a role in the Enterprises Solutions affair. Not only did news of the stock spread in poker rooms along the Strip, but the company came into existence after taking over the corporate shell of a now-defunct gaming company called American Casinos International. (The SEC says that Cannon — whose home city, Boca Raton, is another spawning ground for stock scams — was instrumental in negotiating the 1999 quick-change maneuver, commonly known as a "reverse merger.")
Moreover, many Wall Street professionals say investing in a Bulletin Board company is little better than gambling. With few, if any, analysts following the 4,900 stocks that trade on the Bulletin Board, it's hard to find independent assessments of a company's prospects. And even though the National Association of Securities Dealers has stiffened financial reporting requirements, regulators say the market, with its pint-sized stocks, remains a breeding ground for fraud.
Nonetheless, small investors are often drawn to Bulletin Board stocks by bargain prices. Before April's big market sell-off, more investors than ever were pouring money into Bulletin Board stocks; the NASD estimates that trading activity was running 366% higher than a year earlier. Recent statistics show a subsequent fall-off in Bulletin Board trading — probably a good thing, given the perils.
Ironically, Murphy's wife says no one knew better than her husband the dangers of gambling — whether at cards, dice or stocks. He knew that one's luck could change quickly, she says, and that there are no sure things. So why, she wonders, didn't he apply those lessons to Enterprises Solutions?
"I have this three-page letter and it's the last thing he'll ever say to me," Virginia Murphy laments, "and half of a page is about this stupid stock."
------------------------------------------------------------------------------------
While officials mysteriously halted trading of Toronto-based Silversword on the Vancouver exchange, Mr. Ramsden's world was falling apart in London. "Terry Ramsden, who was once Britain's fifty-seventh richest man but ended up becoming one of the country's most famous bankrupts after running up gambling losses of more than 100 million pounds," stated the Guardian newspaper in a recent article. Mr. Ramsden was also well on his way to jail.
British racing and gambling journalist Mark Siggers of Alfa, an industry news service, notes that Mr. Ramsden, a familiar face at horse tracks around the world, reputedly lost 58 million pounds to bookies in three years after betting heavily and disastrously on his own stable of racehorses. The bookies and authorities found out too late that Glen International, which also happened to be a major shareholder of Silversword, was about to collapse.
"Pursued by the Serious Fraud Office, Ramsden fled to the U.S. in 1991 and fought extradition procedures from a Los Angeles jail cell. When he eventually volunteered to return, receiving a two-year suspended jail sentence for having fraudulently induced finance houses to invest in Glen International," reports Alfa. The judge reportedly found Mr. Ramsden's guilt was related to criminal recklessness instead of deliberate fraud.
--------------------------------------------------------------------------------------------------------
SEC target Rosenfeld nabbed in money laundering sting
2002-08-16 17:36 PT - Street Wire
by Brent Mudry
Bay Street penny stock lawyer Simon Rosenfeld, a past securities violator, has been charged with three counts of money laundering in a Canadian sting operation related to Bermuda Short. The Miami-based overall FBI-RCMP operation is the broadest U.S.-Canadian joint probe of stock-market-related money laundering in recent history. Of 58 individuals named in 23 separate grand jury indictments unsealed Thursday in Miami, 20 were Canadian, including Mark Valentine, the suspended head of Toronto brokerage Thomson Kernaghan, controversial former Vancouver lawyer Martin Chambers and numerous Vancouver and Toronto penny stock players.
The top-secret arrest of Mr. Rosenfeld, 55, was more than two months ago, the first known arrest related to the overall Bermuda Short operation. FBI Assistant Special Agent in Charge Frank Figliuzzi confirms the first of the 58 current parties was arrested 6:30 Tuesday morning, as more than 100 FBI agents fanned out across the U.S. in the co-ordinated arrest operation, which ended Wednesday. A total of 29 targets were arrested in the greater Miami area, Boca Raton and other cities in South Florida.
While Special Agent Figliuzzi was unable to make any comment on the Rosenfeld case, another high-ranking law enforcement official confirmed the Toronto lawyer is related to the overall Bermuda Short operation. "There is a connection," the official told Stockwatch. Although the RCMP-based "E" Division, which handled the Chambers sting, dubbed "E-POS," presumably for "point-of-sale," notes its investigation lasted three years, the Toronto Rosenfeld case is believed to be much more recent.
It is unclear whether Mr. Rosenfeld, like Mr. Chambers, was snared for offering to launder drug money. In fact, even though the whole outline of the Rosenfeld case was presented in Ontario Provincial Court at Old City Hall in Toronto Wednesday, almost every detail is covered by a broad publication ban requested by the lawyer's lawyer.
While publication bans at Canadian bail hearings are relatively routine, the Rosenfeld ban is so broad that a Toronto RCMP spokeswoman told an inquiring Stockwatch reporter Thursday that even the identities of the two parties cannot be revealed. This was particularly surprising, as the reporter had made no direct or indirect mention of Mr. Rosenfeld, had no knowledge of his predicament at the time, and was specifically inquiring about the Toronto individuals named Thursday, especially Mr. Valentine.
Left unexplained is exactly why there is such a fuss about Mr. Rosenfeld, and why is case is so sensitive that a respected Canadian judge would agree to a publication ban so broad that even the parties' names were protected. Stockwatch has since confirmed that the names are no longer subject to such a gag order.
Here is what Mr. Rosenfeld and his defence lawyer are so desperate to keep a secret. For the record, Mr. Rosenfeld has been charged with three counts relating to money laundering. The Toronto penny stock lawyer was charged June 4 with one count each of money laundering and possession of proceeds of an alleged crime. A month later, on July 5, a third count, also of money laundering, was added to the list.
Co-accused Sotirios Phronomadis, believed to be a secondary player, was also charged June 4 with two counts relating to money laundering. Both men face a next court date of Sept. 13 at 9 a.m. in Court 114, unless Mr. Rosenfeld and his lawyer manage to get the date switched or shroud the case in further secrecy.
It is not known whether Mr. Rosenfeld, like Mr. Chambers, was snared in a sting to launder Colombian cocaine funds, or some other operational premise. In the Chambers operation, an undercover RCMP corporal and an undercover FBI special agent posed as Colombian narco-cartel operatives anxious to launder drug money through banks in Canada, the U.S., especially Miami, and offshore.
While Mr. Rosenfeld, like his co-accused, remains presumed innocent until proven guilty, he is hardly the most respected lawyer on Bay Street.
Mr. Rosenfeld's biggest claim to fame, at least in penny-stock circles, is a $2.82-million penny stock fraud judgment the United States Securities and Exchange Commission won against him in March of last year. (All figures are in U.S. dollars.)
The combined judgment against Mr. Rosenfeld gave him full credit for his key role in the "pump and dump" promotion of Synpro Environmental Services, a Nasdaq Small Cap Market stock, between 1991 and 1994. The SEC claims Mr. Rosenfeld, the former president, treasurer and director of Synpro, violated a number of securities regulations in the fraudulent scheme.
Mr. Rosenfeld, 54, earlier served as a director of Al Shefsky's Silversword Corp. and SFP International, while fellow Synpro director and defendant Terry Kochanowski, 37, also of Toronto, earlier served as a director of United Gunn Resources. None of these three companies were involved in the regulatory proceedings. Mr. Kochanowski and bribed Colorado broker John F. Yakimczyk, 60, settled their Synpro prosecutions earlier.
In a consent settlement in January, 2000, Mr. Kochanowski agreed to disgorge $50,000 of illicit profits, but payment was waived and no fine was levied, based on a "demonstrated inability to pay." Both Mr. Rosenfeld and Mr. Kochanowski have been banned as directors or officers of a public company.
In a consent settlement with the SEC in April, 2000, Mr. Yakimczyk agreed to disgorgement of $139,500 in illicit profits, but payment of all but $15,000 was waived, and no fine was levied, based on the promoter's plea of poverty. In a July, 1996, settlement with the National Association of Securities Dealers, Mr. Yakimczyk agreed to a reprimand, a two-year prohibition on association in any capacity with a brokerage, and a $25,000 fine.
The SEC claims Mr. Rosenfeld, with the assistance of Mr. Kochanowski, masterminded and orchestrated a fraudulent scheme to falsely inflate the value of shares of Synpro, formerly known as Sherwood Corp., and made numerous registration violations including unregistered distributions of offshore shares. "For instance, Rosenfeld directed Synpro to overstate the value of the company's assets by falsely reporting, among other things, that Synpro owned a $15-million, 17-acre property on the Isle of Rhodes, Greece. Rosenfeld also failed to disclose the related party nature of numerous transactions to which Synpro was a party," states the SEC.
The regulator also notes the Toronto lawyer made numerous moves to "condition" the market for Synpro shares to sell his secret holdings, including making undisclosed stock and/or cash kickbacks to broker Mr. Yakimczyk, of Aurora, Colo., and other promoters, for inducing investors to buy the stock. The SEC claims that Mr. Kochanowski was also a central player, arranging and keeping track of the bribe payments.
In a final judgment entered March 12, 2001, by United States District Court Judge William Pauley III for the Southern District of New York, Mr. Rosenfeld was ordered to pay a total of $2,816,764. This amount includes $1.09-million in disgorgement, $630,000 in prejudgment interest and $1.09-million in civil penalties.
Under the direction of Mr. Rosenfeld from December, 1991, to December, 1994, Synpro claimed to be involved in international real estate development and in the recycling of waste tires into marketable byproducts. Until March, 1993, the company was headquartered in both Portchester, N.Y., and Toronto, before relocating to Conyers, Ga.
In 1991, Synpro reported its acquisition of Ramia Holdings, a Cypriot company controlled by Giovanni Ilardo, an Italian resident, for 5.62 million restricted shares. The sole asset of Ramia was Italhellas SA, a company based in Rhodes, Greece, whose sole purported asset was 17 acres of property on the Isle of Rhodes. Synpro valued the property and the shares at $15-million. Neither Synpro nor Italhellas own or have ever owned property on the Isle of Rhodes, however, and Synpro accordingly overstated its assets by $15-million.
Synpro also claimed the Greek government made $13.5-million in grants and loans for development of the property, but this also was allegedly false. In the second dubious property deal, Synpro claimed in July of 1992 that it acquired 100 per cent of Inmobiliaria Medialuna SA, an Equatoguinean corporation, from three companies: Croyden Investments, Nesden Management and Korsal Finance SA. Synpro claimed that IMSA owned the Hotel Medialuna, a purported resort hotel located in the west African country of Equatorial Guinea, valued at $20-million.
Three months later, in October of 1992, Synpro and Mr. Rosenfeld were informed by IMSA that the Presidency of Equatorial Guinea had transferred ownership of the hotel to the government. IMSA twice informed Synpro and Mr. Rosenfeld that it was proceeding to annul its agreement with Synpro. The SEC claims Synpro and Mr. Rosenberg knew of or recklessly disregarded the significant risks and uncertainties concerning the true ownership of the hotel.
The SEC also claims that Synpro issued 362,500 shares to a consultant, Euro-Pacific Investments & Trading, as compensation for "professional services rendered" in connection with the acquisition of the Rhodes property, but it forgot to disclose that in reality Euro-Pacific was a British Virgin Islands shell controlled by Mr. Rosenfeld. At the time the shares were issued, the Toronto lawyer was both president and secretary of Euro-Pacific, which had business addresses in London and Tortola.
Later in 1992, Synpro falsely claimed it had obtained a $5-million line of credit from Societe Financiere Privee SA, a private Swiss bank based in Geneva. Synpro also issued 7.2 million shares to Elije, another BVI shell with business addresses in Geneva and Tortola, but forgot to mention the offshore shell was controlled by Mr. Rosenfeld. The company paid four million shares to Elije as payment for a $1-million fee for arranging the purported $5-million line of credit, and 3.2 million shares in payment of a $1.6-million fee for "structuring and consulting services" in connection with Synpro's acquisition of IMSA.
The SEC claims that from August of 1992 through February of 1995, 4.23 million of the 7.2 million shares issued to Elije were sold to public investors in the U.S. and Canada. About 735,000 of the shares were sold through accounts in Elije's name at various registered broker-dealers, while 3.8 million of the shares issued to Elije were transferred to brokerage accounts in the name of Merchant House Internationale Populaire SA. Of these shares, 3.5 million were sold in the U.S. and Canada through accounts in the name of Merchant House at various brokerages. The SEC claims that Merchant House is another BVI shell controlled by Mr. Rosenfeld.
The 4.23 million shares sold generated proceeds of $1.05-million, and almost all of the proceeds were remitted to bank accounts controlled by Mr. Rosenfeld. The SEC claims that as part of the fraudulent scheme, at least 1.32 million of the 7.2 million Synpro shares issued to Elije were delivered to "various persons" for their efforts in boosting the stock price by inducing the public to buy the stock.
In addition, at least 76,000 of the 362,500 shares issued to Euro-Pacific were delivered, and at least $200,000 was paid in cash, to "various persons" to arrange public buying. While Mr. Rosenfeld was the alleged mastermind and controlling figure, the SEC notes that Mr. Kochanowski was a central player, and he arranged for and kept track of the kickback payments to brokers.
Three years before embarking on the fraudulent Synpro pump and dump, Mr. Rosenfeld was a key player in another troubled penny stock promotion, Silversword, which he departed in 1990. He was not the most distinguished Silversword player, however. That title goes to Howe Street player Terrance Philip Ramsden, also known as Terrence Ramsden, the controversial flamed-out expatriate British horse racing gambler and penny stock promoter. A decade ago, Mr. Ramsden achieved the rare distinction of joining the select list of penny stock players deemed unfit for even the former Vancouver Stock Exchange, which was dubbed at the time as the Scam Capital of the World by Forbes magazine.
On Howe Street, Mr. Ramsden is best known for his rocky reign over Silversword, a controversial Toronto company listed on the VSE. In mid-1990, two years after Mr. Ramsden took control of Silversword, shocked VSE officials abruptly halted trading after they suddenly twigged in to some sort of suspicious trading. That fall, the exchange demanded Mr. Ramsden be given the boot before it would lift the trading suspension, without making public any details of his troubles with authorities.
Mr. Ramsden's Silversword saga traces back to September, 1987, when the VSE halted trading of Canadian Estate Land Corp., a one-year-old VSE shell, amid a two-step reverse takeover in which the London financier's Panther Oil and Gas Ltd. was vended into Lynx Petroleum Ltd. and Lynx was vended into Canadian Estate. The deal gave Mr. Ramsden 95-per-cent control of Lynx, resulting in him becoming the major shareholder of Canadian Estate.
Mr. Ramsden opted not to join the board, which was led by Alan Shefsky, now a TSX Venture Exchange diamond stock promoter, and Mr. Rosenfeld, the Toronto lawyer. When the deal closed in March, 1988, Canadian Estate changed names to Silversword, which began trading at $4.05. (All Silversword figures are in Canadian dollars.) The thinly traded stock slipped to $1 by that August but bounced back to end the year at $1.75.
1989 was a banner year for Silversword. The stock more than doubled to $3.70 in early February amid increasing trading volume, then peaked at $7 that August.
Silversword trading was even more volatile in early 1990, with the stock collapsing from $2.50 that January to 68 cents five weeks later, then abruptly quadrupling to $3.05 a month after that, in early March.
Three months later, on June 1, 1990, the VSE abruptly halted trading at $2, "pending clarification of market activity." Later that month the exchange upgraded its action to a trading suspension, citing concerns over both the market activity and the composition of Silversword's board of directors. (Mr. Rosenfeld, who served a stint as chairman, had already left the board that February.)
Silversword's controversial collapse was no doubt embarrassing to its marquee director, former federal cabinet minister Eugene Whelan, whose claim to fame was serving 12 years as agriculture minister under the late prime minister Pierre Trudeau. (Mr. Whelan was subsequently named Senator Whelan by current Prime Minister Jean Chretien in 1996, but he resigned in July, 1999, as the senate, plagued by no-shows and sleepers, nudges out members at age 75.)
The only sliver of detail to emerge on the Silversword debacle came on Nov. 22, 1990. "The company has been advised by the VSE that trading of its shares will not resume on the exchange until such time as Mr. Terence Ramsden, the principal shareholder of the company, divests himself of his holdings in Silversword," stated Silversword head Raymond Barlett, an associate of Mr. Ramsden, in a terse press release.
Silversword shares never resumed trading on the VSE and the Vancouver penny stock exchange delisted the stock in May, 1993. (By this time, Mr. Rosenfeld's fraudulent promotion of an unrelated penny stock on Nasdaq was at its peak.)
Nowhere in the VSE's public notices or Silversword press releases was there any mention of Mr. Ramsden's serious troubles with British authorities, as exchange authorities usually liked to sweep any emerging scandals under the carpet as the targets were swept out the door.
While officials mysteriously halted trading of Toronto-based Silversword on the Vancouver exchange, Mr. Ramsden's world was falling apart in London. "Terry Ramsden, who was once Britain's fifty-seventh richest man but ended up becoming one of the country's most famous bankrupts after running up gambling losses of more than 100 million pounds," stated the Guardian newspaper in a recent article. Mr. Ramsden was also well on his way to jail.
British racing and gambling journalist Mark Siggers of Alfa, an industry news service, notes that Mr. Ramsden, a familiar face at horse tracks around the world, reputedly lost 58 million pounds to bookies in three years after betting heavily and disastrously on his own stable of racehorses. The bookies and authorities found out too late that Glen International, which also happened to be a major shareholder of Silversword, was about to collapse.
"Pursued by the Serious Fraud Office, Ramsden fled to the U.S. in 1991 and fought extradition procedures from a Los Angeles jail cell. When he eventually volunteered to return, receiving a two-year suspended jail sentence for having fraudulently induced finance houses to invest in Glen International," reports Alfa. The judge reportedly found Mr. Ramsden's guilt was related to criminal recklessness instead of deliberate fraud.
Bad as this might sound, Mr. Ramsden's troubles were just starting. The tax chaps from Inland Revenue sent the Silversword financier a bill for 21.5 million pounds in overdue taxes and he was declared bankrupt soon after. Unfortunately, Mr. Ramsden then perpetrated a bankruptcy fraud by hiding assets from bankruptcy court officials, including 77,000 pounds of winnings from a British track and 300,000 pounds he received from a New York trust.
The fallen horseman of Howe Street was sentenced to 21 months in prison in 1998, and on his release he reportedly appeared in a number of Internet companies, including some with betting Web sites. Soon after walking free, with the prison doors clanging shut behing him, Mr. Ramsden headed to the open doors of Union Securities in Vancouver, which was happy to open a brokerage account for the fallen financier.
While Mr. Ramsden has relocated to Gibraltar, amid an exodus of British bookies and gambling figures to the tax-friendly secrecy haven, the troubles in his former racing empire are far from over.
On Jan. 4, high-profile British horse trainer Rod Simpson, who had been the top trainer in Mr. Ramsden's stable for years, was fined 2,500 pounds by the British Jockey Club for a series of racetrack misdemeanours. "What I didn't allow for was the fact that the Jockey Club has these ex-policemen aged 90 to 130 with nothing else to do," the unrepentant racing legend told the press.
According to Alfa, two years ago Mr. Simpson had the misfortune of being evicted by receivers from racing stables owned by another client, David Piper, who had been arrested and charged with drug trafficking offences. One of the horses trained by Mr. Simpson for Mr. Piper was Nipper Reed, named after the Great Train Robbery detective who put the infamous Kray brothers behind bars.
Although Howe Street boosters love to say the riff-raff were chased out years ago, Mr. Ramsden is back to playing the markets through Vancouver brokerage Union Securities, which filed a $248,400 (Canadian) suit against its offshore Gibraltar-based client this January. another Silversword alumni has been in regulators' crosshairs in recent years.
While Union's star client in recent years, at least in the bad-boy category, has been notorious American career felon and New York Mafia associate Ed Durante, Mr. Ramsden deserves special recognition for his own career achievements.
(In the unrelated Durante case, Vancouver broker Trevor Koenig, who ran Union's White Rock satellite branch specializing in garbage OTC Bulletin Board stocks, has been in custody since his Labour Day, 2001, border arrest, and is now in jail in New York. In a parallel Durante sting to that of Mr. Koenig, controversial Vancouver offshore accountant Michael K. Graye, an associate of Mr. Chambers, was nabbed last October.)
With such a rich penny stock legacy on Howe Street and Bay Street, it is hardly a surprise that so many Canadians, including Mr. Rosenfeld, were targeted and nabbed in Bermuda Short.
$750,000 mortgage with WAMU most likely a fixed second mortgage or a HELOC
The receiver should subpoena ALTOMARE $2,030,000.00 mortgage application that he did through Countrywide. http://oris.co.palm-beach.fl.us/or_web1/details.asp?doc_id=16081666&file_num=20060626190
He would have had to declare his income and assets on the application. Would have included accounts and account numbers. Also listed the stock he owns
Countrywide also may have pulled a IRS form 4506
Altomare Losing High-Stakes Game of Monopoly http://garyweiss.blogspot.com/2008/01/altomare-losing-high-stakes-game-of.html
"Santangelo, 35, is married to Michael Santangelo, a politically connected Westchester County lawyer who represented Al Pirro in a 2000 federal tax-fraud case in which he was convicted and served 11 months in prison."
http://64.233.169.104/search?q=cache:SmlD35TuN34J:www.nypost.com/seven/09292006/news/regionalnews/jeanines_fear_of_other_lady_regionalnews_frederic_u__dicker__lorena_mongelli_and_lukas_i__alpert.htm+MICHAEL+SANTANGELO&hl=en&ct=clnk&cd=1&gl=us&ie=UTF-8
Bud Burrell is or was an officer in the following company. Is this the same Michael Santangelo that is in the filing?
Detail by Officer/Registered Agent Name
Foreign Profit Corporation
THE QUANTUM MATRIX CORP.
Filing Information
Document Number P06687
FEI Number 133299465
Date Filed 07/10/1985
State DE
Status INACTIVE
Last Event WITHDRAWAL
Event Date Filed 02/09/1988
Event Effective Date NONE
Principal Address
2 WORLD TRADE CENTER
NEW YORK NY 10048
Mailing Address
2 WORLD TRADE CENTER
NEW YORK NY 10048
Registered Agent Name & Address
C T CORPORATION SYSTEM
8751 WEST BROWARD BOULEVARD
PLANTATION FL 33324
Officer/Director Detail
Name & Address
Title PD
BURRELL, C. AUSTIN II
620 BROADWAY, APT. 4
NEW YORK NY
Title T
SANTANGELO, MICHAEL
231 AMBER STREET
STATEN ISLAND NY
Title S
KULLEN, BARBARA C.
61 MAPLE HILL DRIVE
LARCHMONT NY
Title D
KELLY, DAVID W.
531 MAIN STREET
ROOSEVELT ISLAND NY
Title D
LLOYD, LOUIS B.
444 EAST 82ND STREET
NEW YORK NY
Title S
MOESCHLIN, GEORGE J. III
221 EAST 66TH STREET
NEW YORK NY
Annual Reports
Report Year Filed Date
3489
3489
3489
Document Images
No images are available for this filing.
Reference: http://www.sunbiz.org/
"Second, I would like to introduce you to Mr. Clarence A. Burrell, a foremost industry expert in the abstract field of “naked shorting”, one who is also intimately aware of the USXP saga, and one who has generously offered to sit with you and your staff in confidence and lay out for you the fine details about naked shorting in this case, and also the statements in the response by the Denver SEC regional director that could constitute perjury to your esteemed office. His telephone contact number is 602-300-7600. Mr. Burrell has offered to fly and meet with you and explain to you and your staff the intricacies of this case in spite of very little, if any, personal benefit. He has been at the forefront of those attempting to shed light on this dark chapter in our nation’s history."
http://investorshub.advfn.com/boards/read_msg.asp?message_id=26202454
Anyone want to pitch in a few bucks and help them send Patch, Faulk and Bobo.
Would be worth the entertainment value alone.
Earlier this week, Maria Elena Holly's attorney in Dallas, Richard Wallace, sent a cease-and-desist letter to TogiEntertainment Inc., an Oklahoma City-based publishing house. Wallace declined to comment Friday.
"Confusion and tarnishment of Buddy Holly's name and Ms. Holly's reputation are likely to result from this unauthorized book," the letter states.
The letter demands the ceasing of promotion and sale of the book, removal of the subtitle and cancellation of all book orders. It also asks for refunds on any deposits for the book and for an accounting of revenues from any sales.
Mark Faulk, chief executive officer of TogiEntertainment, said the threat of a lawsuit won't deter Gerron or his company.
http://www.foxnews.com/story/0,2933,322267,00.html
Buddy Holly's Widow Threatens to Sue 'Peggy Sue' Over Book
Friday, January 11, 2008
LUBBOCK, Texas — Buddy Holly's widow is trying to keep the woman whose name was made famous by the hit song "Peggy Sue" from selling a book about her friendship with the late rock 'n' roll star.
Maria Elena Holly said Friday that Peggy Sue Gerron's "Whatever Happened to Peggy Sue?" is unauthorized and will harm Holly's name, her reputation and that of her company, Holly Properties.
"It's very interesting that this woman makes up all these stories," Maria Elena Holly said from her home in Dallas. "He never, never considered Peggy Sue a friend."
Gerron, who lives in Lubbock and wrote the 283 page-book in the past year with another woman from West Texas, said she wrote the book because 2008 is the 50th anniversary of the release of "Peggy Sue." Holly also recorded "Peggy Sue Got Married."
Gerron said material for the book came from about 150 diary entries she made during the time she knew Holly.
"I wanted to give him his voice. It's my book, my memoirs," she said from Tyler where her publishing company held a news conference Friday defending Gerron's right to write her biography. "We were very, very good friends. He was probably one of the best friends I ever had."
Maria Elena Holly said she will sue if the excerpts she's read are in the book, which is available online and will be in bookstores soon.
"I don't understand why people do that, especially when she knows that people know the truth," she said.
Gerron said a potential lawsuit is "just another matter."
"I feel I have every right to write my book. That's why we live in America." she said. A lawsuit "won't taint the book."
Earlier this week, Maria Elena Holly's attorney in Dallas, Richard Wallace, sent a cease-and-desist letter to TogiEntertainment Inc., an Oklahoma City-based publishing house. Wallace declined to comment Friday.
Holly was killed Feb. 3, 1959, in a plane crash that also claimed singers Ritchie Valens and J.P. "The Big Bopper" Richardson. Holly was 22.
Maria Elena Holly, who married Holly in August 1958, has for years owned the rights to her husband's name, image and related trademarks, and other intellectual properties, the letter said.
No one involved in the book's publication asked for consent to use Holly's name or image — "his likeness will be featured prominently" on the book's cover and the subtitle reads, "Memoirs of Buddy Holly's Peggy Sue," the letter said.
"Confusion and tarnishment of Buddy Holly's name and Ms. Holly's reputation are likely to result from this unauthorized book," the letter states.
The letter demands the ceasing of promotion and sale of the book, removal of the subtitle and cancellation of all book orders. It also asks for refunds on any deposits for the book and for an accounting of revenues from any sales.
Mark Faulk, chief executive officer of TogiEntertainment, said the threat of a lawsuit won't deter Gerron or his company.
Buddy Holly's brother, Larry Holley, said "Peggy Sue" was not the original lyric in the song of the same name. The name Holly originally intended to use was Cindy Lou, Holly's niece, Larry Holley said.
Maria Elena said her husband changed the name to Peggy Sue after Crickets drummer Jerry Allison, the man who married Gerron in July 1958, asked him to because he had a crush on Gerron at the time.
Widow: Peggy Sue no friend of Holly
4 days ago
Buddy Holly's widow is trying to stop the woman whose name was made famous by the hit Peggy Sue from selling a book about her friendship with the late rock 'n' roll star.
Maria Elena Holly said Peggy Sue Gerron's Whatever Happened To Peggy Sue? was unauthorised and would harm Holly's name, her reputation and that of her company, Holly Properties.
"It's very interesting that this woman makes up all these stories," Mrs Holly said from her home in Dallas, Texas. "He never, never considered Peggy Sue a friend."
Ms Gerron, who lives in Lubbock, Texas, and penned the 283-page book in the past year with another woman from West Texas, said she wrote it because 2008 was the 50th anniversary of the release of Peggy Sue. Holly also recorded Peggy Sue Got Married.
Ms Gerron said material for the book came from about 150 diary entries she made during the time she knew Holly.
"I wanted to give him his voice. It's my book, my memoirs," she said from Tyler, where her publishing company held a news conference defending her right to write her biography. "We were very, very good friends. He was probably one of the best friends I ever had."
Mrs Holly says she will sue if the excerpts she has read are in the book, which is available online and will be in bookshops soon. Ms Gerron said a potential lawsuit was "just another matter", adding: "I feel I have every right to write my book. That's why we live in America."
Holly was killed at the age of 22 on February 3 1959, in a plane crash that also claimed the lives of singers Ritchie Valens and JP "The Big Bopper" Richardson.
Buddy Holly's brother, Larry Holley, said Peggy Sue was not the original lyric in the song of the same name.
The name Holly originally intended to use was Cindy Lou, Holly's niece, Mr Holley said. Mrs Holly said her husband changed the name to Peggy Sue after being asked to by Crickets drummer Jerry Allison, the man who married Ms Gerron, in July 1958, because he had a crush on her at the time.
Dallas securities fraud investigation targets former SEC lawyer
'I have interesting clients with interesting problems,' he says
11:18 PM CST on Sunday, January 13, 2008
By ERIC TORBENSON, MICHAEL GRABELL and BRENDAN M. CASE / The Dallas Morning News
etorbenson@dallasnews.com; mgrabell@dallasnews.com;
The securities case that brought Dallas lawyer Phillip Offill to court last week is the kind he has worked for decades: Investors are alleging fraud, large sums of money are moving around mysteriously, and the government has stepped in.
This time, though, Mr. Offill is not the accuser, but the accused.
In a contempt-of-court hearing in federal court, Mr. Offill, who litigated fraud cases for nearly 15 years in the Fort Worth office of the federal Securities and Exchange Commission, took the stand and defended himself against accusations that he helped violate a court-ordered asset freeze for a client charged by the SEC with securities fraud.
Mr. Offill argued that the assets in question came from companies that weren't part of the original court order. The judge has yet to rule on the contempt motion.
But the case is just the start of Mr. Offill's troubles. Last year, he was named as a defendant in two lawsuits by his former employer, the SEC, which accused him of participating in the same kind of stock scams he once fought.
Former colleagues have been trying to understand his change of roles from defender of the nation's securities laws to defendant.
Interviews paint a picture of a brilliant lawyer, personable and sharply dressed.
"He's a bright guy," said David Newsome, who was Mr. Offill's boss at the Oklahoma Department of Securities in the 1980s. "He was effective at what he did as a securities enforcement lawyer, which is why you're scratching your head."
But several people who have worked with him say he seemed always to want more for himself and didn't mind walking close to the legal and ethical edge to get it.
It's common for former government lawyers to "switch sides" to far-more-lucrative private practice. But some of Mr. Offill's former SEC colleagues say his quick transition, while not in violation of SEC restrictions, was unseemly. They point in particular to Mr. Offill's taking on a client who was being investigated by the SEC.
Regarding one of the SEC suits against him, Mr. Offill told Texas Lawyer in June that he was only representing his clients, legally and legitimately. "There are probably some I should have turned away that I didn't," he said. He denied wrongdoing and said, "I intend to vigorously defend myself."
He declined an interview for this article but said by e-mail: "I have interesting clients with interesting problems – none of which I can or will discuss – and I have been successful in representing them. In other words, I don't have a 'side' other than my client's, and don't have anything to explain."
Climbing SEC's ladder
Phillip Windom Offill Jr. was born in 1958 in Big Spring, a West Texas oil town between Midland and Abilene. He graduated from Georgetown University and received a law degree at the University of Oklahoma.
In 1985, he joined the SEC and worked his way up from staff lawyer to supervising lawyer, branch chief, trial counsel and finally senior trial counsel in Fort Worth.
He left the SEC in late 1999 to go into private practice, apparently a good financial move.
He and his wife soon sold a $150,000 house in Arlington and in 2000 bought a $400,000 home in Allen, according to property records. He said in a 2005 lawsuit deposition that his net worth is more than $1 million.
Several former colleagues who asked not to be identified suggested money was a motivation. Some lawyers call it "affluenza" – public servants' envy of the higher salaries in the private sector.
"I suspect Phil Offill's motivation in large part was money," said Randy Johnston, who defended someone Mr. Offill targeted while at the SEC, and who more recently represented someone suing Mr. Offill and others. "When he was at the SEC, he spent an awful lot of time going after people who were making lots of money. Seeing their lifestyles, maybe he got infected by that, and maybe that's why he became one of them."
At the SEC, Mr. Offill was skilled at getting cases resolved, former colleagues said. But they also said he seemed to get close to some of the agency's targets.
One of Mr. Offill's first cases in private practice was representing Irving brokerage RichMark Capital in a lawsuit against another company. At the time, RichMark and its vice president, Doyle Mark White, were involved in an SEC administrative investigation conducted by the Fort Worth office, launched while Mr. Offill worked there as senior trial counsel.
"All of a sudden he's on the other side representing Mark White," complained a former colleague of Mr. Offill's at the SEC.
In addition to defending Mr. White, Mr. Offill sometimes recommended him for business deals with others, deals that would later get Mr. Offill into trouble.
For example, when an Addison sports video producer came to Mr. Offill to raise capital in 2004, Mr. Offill suggested they use a shell company tied to Mr. White to take the Addison company public, according to business and court records. Mr. Offill also suggested the production company hire Mr. White to distribute news releases.
But in a move that's typical of the penny stock scams Mr. Offill is accused of being involved with, Mr. White helped send out a junk fax about the stock, court records show. The fax fooled investors into buying the stock as the share price soared and then tanked.
The company, Consolidated Sports Media Group, sued Mr. Offill, accusing him of orchestrating a scheme to manipulate the company's stock for profit. Mr. Offill and his law firm, Godwin Gruber LLP, paid a $4.8 million settlement without admitting wrongdoing, court records show.
High-profile client
Mr. Offill was hired by Godwin Gruber in 2002 to represent one of the firm's high-profile clients, Halliburton. Mr. Offill's salary ranged from $300,000 to $400,000 a year.
The Sarbanes-Oxley Act was passed that year in response to the Enron and WorldCom scandals, and accountants and lawyers were grappling with the new disclosure requirements on big companies like Halliburton.
But what got Mr. Offill into trouble were penny stocks, whose share prices usually hover below $1 and revenues are in the low millions or less, rather than billions.
Officials at the law firm, known now as Godwin Pappas Ronquillo, declined to comment for this article. But they expressed their views on Mr. Offill in depositions for Consolidated Sports' lawsuit.
"Phil is a very talented lawyer," Donald E. Godwin, the firm's chairman, testified. "I had a client that loved him, Halliburton, one of the largest companies in the world. They loved him. They thought he did a great job."
But concern arose when firm officials discovered some unsettling things about Mr. Offill's work unrelated to Halliburton.
•Mr. Godwin and others said the firm noticed that large sums of money were being moved into and out of the firm's trust account for Mr. Offill's clients. Such accounts are typically used to deposit client payments, hire expert witnesses and disburse settlement funds.
"The last thing we're ever going to want to do is be involved in anything with a trust account that's not handled properly," Mr. Godwin said. "It's not a pass-through where people can park money for any reason."
•Mr. Godwin said he was concerned by Mr. Offill's clients' unpaid legal bills of over $1 million.
"He took in far too much business that ended up having to be written off ... because it was uncollectible," he said. "The receivables were much too high for someone with his volume of business."
•Mr. Godwin said it wasn't until Consolidated Sports filed its lawsuit in August 2005 that he learned Mr. Offill had taken on a practice area for which he wasn't hired – helping small companies go public as penny stocks.
"He wasn't hired to do transactional work," he said. "He was hired to do SEC investigations."
Mr. Offill blamed Consolidated Sports executives for the troubles.
"If there was a mistake made," he said in his deposition for the lawsuit, "it was made at the outset, and that mistake was that I believed ... [those involved with Consolidated Sports] to be responsible, competent and ethical businessmen. I later found that to be untrue."
However, Mr. Godwin said the firm's managers approached Mr. Offill about their concerns and told him: "We don't think this is working. ... What do you suggest?"
Mr. Offill said he had been thinking about starting his own firm anyway and decided to leave. His last day was Jan. 19 of last year.
SEC suit
In June, the SEC sued Mr. Offill and another lawyer in Detroit federal court, accusing them of scheming to pump up the stock of a Global Positioning System company called AVL Global that said its tracking devices were being tested by the Botswana Department of Defense.
The commission said Mr. Offill played a key role in setting up bogus investment firms that funneled hundreds of thousands of dollars in stock sales back to AVL Global's executives.
The firms got around securities law by pretending to be longtime investors. But after getting a false legal opinion from the other lawyer, they sold their shares within days, the SEC said.
Mr. Offill has denied wrongdoing and requested a change of venue in the case.
One of the investment firms Mr. Offill set up listed Mr. White, of now-defunct RichMark Capital, as sole director.
Mr. White said in an interview this month that he was surprised to learn his name was on the corporate documents. He said he believes somebody forged his name but declined to speculate who.
Mr. White praised Mr. Offill as a knowledgeable attorney and said he didn't think Mr. Offill had broken any laws.
"Just remember what the Dalai Lama said," Mr. White said. " 'Know what the rules are so you can break them correctly.' ... 'Know what the rules are so you can abide by what you should and shouldn't do.' Offill didn't set out to break the rules. I don't think he was going over 55 mph."
Second suit
In September, the SEC filed a second lawsuit against Mr. Offill, accusing him and others of evading the SEC's registration requirements to allow six penny stocks to be sold to the public with few of the disclosures normally required.
Securities law allows companies to avoid registering with the SEC as long as stock sales don't exceed $1 million and are made only to accredited investors. Under Texas law, investors must be state residents and hold their shares for more than a year before selling.
Mr. Offill created the Texas companies that would be listed as accredited investors and then signed false agreements claiming the shares would be held as a long-term investment, the SEC said.
The companies were only intended to hide the participation of others from outside Texas, the SEC said, and the stock was sold almost immediately to unsuspecting investors.
Mr. Offill made about $250,000 for his services, according to the SEC, while others involved made millions.
Mr. Offill is due to formally respond to the suit today.
Last week's case
In the case that brought Mr. Offill to court last week, the SEC has accused Amerifirst Funding executives Jeffrey C. Bruteyn and Dennis Bowden of making false statements about the safety of so-called secured debt offerings and then misappropriating millions of dollars raised from investors.
In July, the SEC won a court order freezing the assets of Mr. Bruteyn, Mr. Bowden and their related companies.
Mr. Offill was giving legal advice to Amerifirst and its officers months before the SEC suit, according to testimony last week, and he incorporated a penny stock company called InterFinancial Holdings Corp. that is at the center of the civil contempt motion related to the asset freeze.
Last month, Gerald Kingston of Dallas admitted manipulating shares of InterFinancial Holdings. His plea deal says the government will urge a reduced sentence if Mr. Kingston provides "substantial assistance in the investigation or prosecution of others."
At the contempt hearing last week, Mr. Kingston testified that Mr. Offill hatched a scheme with Mr. Bruteyn to circumvent the court's freeze order.
In order to pay Mr. Offill's legal fees and give Mr. Bruteyn living expenses, Mr. Kingston said, he agreed to use InterFinancial shares to buy a Picasso painting owned by Mr. Bruteyn's mother for $431,000. The Picasso, called Hands with Bouquet, is actually a print worth about $100, an art expert testified.
According to the contempt-of-court motion, the cash was used to benefit Mr. Bruteyn, in violation of the asset freeze.
"The fact remains that you endorsed it, and you should have known better," Mr. Kingston told Mr. Offill in the hearing.
InterFinancial wasn't part of the original asset freeze, a point Mr. Offill made in court last week. Mr. Offill, who was representing himself, also said the case against Amerifirst is flawed because investors were getting paid and the company was profitable.
But the case could expand beyond civil charges; Mr. Kingston testified that he had met with officials from the Department of Justice and the FBI to talk about Amerifirst and Mr. Offill.
Under cross-examination by an SEC lawyer, Mr. Offill said, "I figured you pretty much knew that the U.S. attorney's office was involved" in the ongoing investigation.
Where the money went
Of the proceeds from the Picasso, $150,000 went to a criminal lawyer for Mr. Bruteyn, $50,000 went to Mr. Offill and the most of the rest went to pay down the mortgage of Mr. Bruteyn's mother's home, according to the receiver for Amerifirst.
The court-appointed receiver wants all the money back to distribute to Amerifirst investors; the judge's decision is pending.
That may not be the last legal proceeding to hit Mr. Offill in the pocketbook. In the two SEC lawsuits, the commission is seeking civil penalties against him.
The commission also wants to stop Mr. Offill from participating in any future penny stock offerings, a substantial part of his legal business. He has dropped out as Mr. Bruteyn's attorney.
And the Pink Sheets, the New York-based over-the-counter exchange where penny stocks trade, recently barred Mr. Offill from writing letters and opinions for listed companies. He is one of nine attorneys banned by the exchange, its Web site shows.
Lawyers don't usually face such regulatory action, but in the case of the SEC suits, regulators seem to be making a statement.
"The public markets rely on the integrity of attorneys and other gatekeepers," SEC enforcement director Linda Chatman Thomsen said in announcing the June lawsuit. "This case shows that the commission will pursue not only those who perpetrate penny stock fraud but also those who facilitate such schemes."
REGULATORS' INTEREST
Securities regulators have been showing an interest in Dallas lawyer Phillip Offill for nearly three years.
• In June 2005, the Securities and Exchange Commission issued a subpoena requesting financial records on dozens of companies in which Mr. Offill was corporate counsel or registered agent or had helped set up a company listed as a major shareholder. The subpoena was related to an investigation into a Dallas-based "shell creation group," suspected of manipulating stock prices by making false or misleading statements to the public. No accusations have been leveled against Mr. Offill in relation to the "shell creation group" companies.
• In March 2007, as part of a crackdown on e-mail stock fraud called Operation Spamalot, the SEC suspended trading in 35 stocks, eight of which had ties to Mr. Offill, either as corporate counsel or as someone who had helped set up or controlled a company that was a major shareholder. The SEC action did not name Mr. Offill.
• In June, the SEC accused him in a civil complaint of having devised a scheme to pump up the stock price of a defunct company, sell the shares to unsuspecting investors and funnel the profit back to company executives through a series of bogus investment firms. Mr. Offill has denied wrongdoing.
• In September, the SEC accused him in a second civil complaint of violating federal securities laws by participating in a scheme to sell unregistered shares of six penny stocks. Mr. Offill is due to formally respond to the accusations today.
• Also in September, Mr. Offill was accused of defying a judge's order to freeze the assets of a client facing SEC fraud allegations. The judge is considering a contempt citation, which Mr. Offill opposed in court last week.
• Officials with the New York-based Pink Sheets, the primary over-the-counter stock exchange, decided recently to bar Mr. Offill from writing letters and opinions for Pink Sheet-listed companies.
SOURCES: SEC; Pink Sheets; Dallas Morning News research
"Alright. What's the news on USXP? If this is dead then who is buying at 2?"
Enter the con men and penny-stock hustlers
gemm A/K/A acen GETS SKULL AND CROSS BONES http://www.pinksheets.com/pink/quote/quote.jsp?symbol=ACEN
ACEN — AC Energy, Inc.
Com ($0.001)
Primary Venue: Pink Sheets
QuoteNewsChartsCompany InfoFilingsShort InterestInsider TransactionsPink Sheets has discontinued the display of quotes on pinksheets.com for this security because it has been labeled Caveat Emptor (Buyer Beware) and because adequate current information has not been made available by the issuer of the securities. It has been labeled Caveat Emptor for one of the following reasons.
The security is being promoted to the public, but adequate current information about the issuer has not been made available to the public;
The security has been quoted on an unsolicited basis since it entered the public markets and the issuer has not made adequate current information available to the public; or
The security is the subject of a spam promotion having the effect of encouraging trading of the issuer's securities, or represents, in Pink Sheets view, a public interest concern.
Consequently, Pink Sheets has removed the quotes from this website until adequate current information is made available by the issuer pursuant to Pink Sheets Guidelines for Providing Adequate Current Information (PDF) and until Pink Sheets believes there is no longer a public interest concern. Investors are encouraged to use care and due diligence in their investment decisions. Please read our Investor Protection page for more information.
Any news from Clarence A Burrell?
"Altomare, a former tenured College Professor"
SCHOOL DISTRICT OF PALM BEACH COUNTY
DEPARTMENT OF PUBLIC AFFAIRS
PRESS RELEASE
For Immediate Release Contact: Ana Sands
June 4, 2007 (561) 357-7662, PX 47662
Universal Express Inc. Awards $5,000 to Boca Raton
Community High School and Teacher of the Year
Glynis Benson
CEO and Teacher of the Year to ‘swap’ positions for a day early
in Fall
NEW YORK, NY – May 31, 2007 - Universal Express Inc. (OTCBB: USXP) -
Richard A. Altomare, Chairman and CEO of Universal Express Inc., a transportation
conglomerate, was so moved when he read about Glynis Benson’s recent win for
Teacher of the Year, he called Principal Geoff McKee personally to award Mrs.
Benson $2,500 on her outstanding achievement and $2,500 towards the students of
Boca Raton Community High School. Mr. Altomare and Principal McKee surprised
Mrs. Benson with a $5,000 check in front of students, Thursday, May 24th on-site at
Boca Raton Community High School.
http://www.msnbc.msn.com/id/18416656/
Altomare, a former tenured College Professor, also invited Mrs. Benson, an intensive
reading and English teacher, to ‘swap’ positions with him for a day. The date of the
one-day honorary ‘occupation exchange’ will occur early Fall 2007 and will be
announced later this summer.
“Mrs. Benson has done a phenomenal job with her students; many hopefully will
become Universal Express future employees. On behalf of the shareholders of
Universal Express and subsidiary Luggage Express, it is truly our pleasure to present
this $5,000 donation to Mrs. Benson and the students of Boca Raton Community High
School on a job well done,” said Mr. Altomare.
“Special thanks to Principal McKee for allowing this swap to happen. I am very much
looking forward to meeting the students of Boca Raton Community High School and
eagerly await Mrs. Benson’s take on what it’s like to be an honorary CEO for a day,”
he continued.
“We are so deeply touched by Mr. Altomare’s desire to support our Teacher of the
Year and to additionally support the hardworking students at Boca Raton Community
High School. We look forward to Mrs. Bensons becoming honorary CEO for a day at
Universal Express and are honored to have Mr. Altomare educate our students early
this fall,” says Principal Geoff McKee.
For more information regarding the swap or to request press photos of the check
presentation, kindly contact Jennifer Pearson at The Gab Group, 561.750.3500 or
email her at jennifer@thegabgroup.com.
About Universal Express:
Universal Express, Inc. is a 23-year-old logistics and transportation conglomerate with
multiple developing subsidiaries and services. For additional information please visit
www.usxp.com.
Safe Harbor Statement under the Private securities Litigation Reform Act of 1995:
The statements contained herein, which are not historical, are forward-looking
statements that are subject to risks and uncertainties that could cause actual results to
differ materially from those expressed in the forward-looking statements including,
but not limited to, certain delays beyond the Company's control with respect to market
acceptance of new technologies, products and services, delays in testing and
evaluation of products and services, and other risks detailed from time
http://www.palmbeachschools.org/PDFs/Past_Press_Releases_06-07.pdf
West, Kevin Vice President The Owners Group Inc. Universal City Texas United States
http://register.shareholdersresearch.com/members.aspx?memberid=3