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GLBT's Qwest debt settlement!
Lets add GLBT's settlement & paid debt to Qwest while we are at it. Now we have MCI Worldcomm, Cisco, GEF, and Qwest in the settled debt arena. The amount previously was 36.4 million, add Qwest to the mix and it is now $37,825,000 that we know of.
On June 23, 2005, Qwest entered into a Settlement Agreement with the Company and International. Pursuant to the Settlement Agreement, International acknowledged that it owed Qwest a debt in the amount of $850,000 and the Company paid a debt owed to Qwest in the amount of $500,000. In addition, the Company also paid $75,000 to Qwest in connection with the settlement of a lawsuit filed by Qwest against the Company as previously disclosed in the Company's filings. The Company and International, on one hand, and Qwest, on the other hand, each
agreed to a mutual release including a dismissal by Qwest of its current action in Colorado and the satisfaction of judgments entered in Virginia and Texas. In the event that the Company or any of its agents should attempt to purchase services from Qwest, then the release provided by Qwest shall be deemed null and void, the party purchasing such services shall be deemed to owe $350,000 representing the portion of the Qwest debt that was not paid and the debt owed to Qwest shall be revived. The Company shall preserve all defenses in the event
that the debt is revived.
http://www.sec.gov/Archives/edgar/data/810932/000114420405020175/v020815_8k.txt
Lets see what after hour volume we get.
I believe 35 days. em.
OT: Another NSS Settlement
I'm glad GLBT had complaints submitted to the SEC. Found on RB.
By: jcline
11 Oct 2007, 11:30 AM EDT
Msg. 343962 of 343967
Jump to msg. #
STOCKGATE TODAY-Simple Mistake or Criminal Fraud
An online newspaper reporting the issues of Securities Fraud
Simple Mistake or Criminal Fraud - October 11, 2007
David Patch
This week the Securities and Exchange Commission announced yet another settlement in a case involving illegal shorting practices. These illegal trades are ones the SEC once called insignificant and illegal shorting practices the mainstream media continues to deny even exists.
On October 10, 2007 the SEC released a press statement announcing a settled enforcement action against New York hedge fund adviser Sandell Asset Management Corp. (SAM), its chief executive officer, and two other employees for engaging in improper short sales in connection with trading in the securities of Hibernia Corporation in the immediate aftermath of Hurricane Katrina.
The significance in this case is not what the SEC did but what the SEC did not do.
According to the complaint filed, SAM executed short sales totaling over 9 million shares through a variety of deceptive schemes. The SEC Release stating, "SAM personnel believed that Capital One would lower its offering price for Hibernia shares in the wake of Katrina. In an attempt to offset an anticipated loss to a client, SAM personnel began to sell short as many shares of Hibernia stock as possible, improperly marking certain sales orders as "long" or misrepresenting to the broker-dealers executing some of the trades that they had located stock to borrow."
For these actions SAM was forced to disgorge their ill-gotten gains $6.7 Million, pay $730,000 in interest, and a $650,000 civil penalty. These fines came as part of an SEC action that involved complaints of compliance violations.
In a letter to Sandell investors Thomas Sandell said the SEC had not found any "fraudulent intent," and that the investors would pay no penalties.
No fraudulent intent?
While the details are complex due to the arrangement SAM had with 9.2 Million 'risk arbitraged' restricted shares, the actions speak for themselves. It starts with the presumption of SAM Executives that hurricane Katrina would delay the merger agreement between Hibernia and Capital One.
According to the Administrative order, SAM Head Trader Richard Ecklord attempted to execute a short sale legally by seeking shares to borrow but found difficulty in locating shares in the 20 Million free trading shares. SAM executives then decided to become creative in their trading strategy and simply market the sales long using the 9.2 million shares signed over in a risk arbitrage agreement as the collateral.
Problem is the 9.2 million shares were restricted and not free trading and, SAM was not the listed beneficial holder of these shares.
The fact that SAM initially attempted to locate to borrow 9.2 Million shares implies knowledge that they had no beneficial rights to the 'risk arbitrage' shares. Any actions thereafter to work around the problem imply fraud and possibly criminal intent.
With a free trading float of 20 Million shares, SAM shorted 3.5 Million of Hibernia on August 31, 2007 and did so by mis-marking the shares long and executing these sales by flooding the bids with sales. The results would be predictable. The market dropped.
A day later SAM was able to locate shares in a borrow and engaged in legal short sales using the 1 million shares located. The fact that Ecklord continue to attempt to locate indicates knowledge that the trading the day before was not legal.
The next day, September 2, 2007 when shares were no longer located, in what the SEC administrative order states was an animated discussion, Thomas Sandell instructed the traders to continue selling. Here is where it gets amusing.
Sandell claims he did not tell the traders to sell illegally but just instructed them to continue selling. The traders had informed Sandell that shares were not available to locate prior to his instructions so they interpreted his instructions as sell short without the locate.
The Abbott and Costello routine was on and the SEC bought it hook line and sinker. It was just a simple misunderstanding according to SAM who, through this misunderstanding happened to avoid a possible $6.5 Million loss.
Ironically, in cases such as these the NASD has routinely barred individuals for such brazen acts of fraud. The SEC barely imposes a slap on the wrist to the $7 Billion Hedge Fund and their founder who orchestrated the fraudulent acts.
The SEC highlights this case as a case of naked short selling. The Chairman of the SEC has stated that naked short selling is a practice that can drive down a stock's price, hurting investor confidence and a company's ability to attract capital.
In this case, the naked short sales merely drove the market in Hibernia down and created excess investors (9.5 million shares worth) that took a loss on SAM's gains. A market with 20 million free floating shares is diluted with 9.5 million shorts (8.5 million illegally) and the SEC doesn't even recognize what impact that had on the market.
Isn't the illegal manipulation of a stock fraud?
So here lies the crux of the problem.
The Commission staff and SEC director of Enforcement Linda Thomsen are imposters. These comedic actors come out and make public the appearance that they are taking necessary steps to clean up fraud on Wall Street and protect the public in the process but the evidence points us in a different direction. The staff talks a tough game and puts out great public sound bites but rarely do their actions fit their tough talk.
Case in point, the enforcement case against SAM is not an anomaly it is the norm. Wall Street's biggest players will generally cut corners and risk compliance when profits are at risk. While penny stock grifters are barred from future executive positions for fraud committed against the public the SEC staff lets the most abusive walk with mere compliance violations.
Personally, I think the SEC needs to dust off those books on market manipulation and begin to analyze the trading impacts of cases such as this and begin prosecuting at the higher-level charges of fraud and market manipulation and cease with the dog and pony compliance crap we witness regularly. Compliance violations are simply window dressings that will never alter the risk v. reward potentials of the next SAM.
Closing thought: If Wall Street took seriously SEC Rule 15c6-1, and all contracts for trades must include 3-day settlement, where were the Buy Side Broker Dealers calling in the massive fails created by SAM. This fraud would never have existed if Wall Street's prime brokers took seriously the requirement of trade settlement. My understanding is that the SEC has once again given them a free pass despite the losses their clients incurred due to the negligence.
I suggest it is time the Federal Authorities take a higher role in financial market enforcement. Clearly, any individual above a pre-school intelligence level can see that what Sandell did was calculated and was an act of fraud. The schemes engaged in prove that without question. This was not just simple fraud either, this borders on criminal fraud as the actions of Sandell became criminal theft and stock manipulation.
http://ragingbull.quote.com/mboard/boards.cgi?board=CLB01219&read=343962
Can you get like 3 soft with 3 crunchy?
Is that a *New* Value meal at TACO BELL!!!!! BWAAAA!!! HAA!
208,459,208 10/11 Volume 18:25 EST. OptionsXpress. What is up?
FWIW, strategically it makes sense to file limited information (10K's '03 &'04) get the word out, let it spread, and draw in the attention before releasing the information that everyone has truly been waiting for. That being the '05 & '06 10K's. I say let it churn for a week and lift it off the floor. With Oct 15th being Monday I'm optimistic.
I'm thinking 10/15 for the next round of info.
They need a Twelve-Step-Program for help!
Coffee in hand! Morning everyone!
Thanks Chuck! Hoping to find some enlightening info.
I've started digging into China, looking for some links to follow up on.
Ex Director CV (Resume)
2003-2004 Work Experience sheds a little more light on where our markets are.
Work Experience
2003-2004 Globalnet International LLC Director of Sales and Business Development Europe. Barcelona. (www.gbne.net)
Responsible for European Accounts and new business activities Europe and Latin America. Established POPs and interconnects in Madrid, London, and Frankfurt. Termination agreements and networks into Morocco, Mali, Central and South America etc. Responsible for structuring distribution of retail satellite services in Middle East.
http://www.smarthunt.com/resume.cfm?portfolioid=18636
Globalnet Subsidiary (Repost)!
Posted by: fugazyh8er
In reply to: None Date:9/20/2007 11:24:45 PM
Post #of 4221
Globalnet subsidiary? International Broadband Services (IBS).
Read Klaus Scholz resume for business development 2005.
http://www.klausscholz.com/Business_Development.html
Cali, LOL! Christopher Walken, right? Gotta love him!
We need more of those but going through at .0003. Make um pay people!
Sounds good to me! eom.
Sterv, the thing that amazed me was not only was the debt forgiven but Globalnet was allowed to retain the equipment and deploy it to maximum benefit for their VOIP business.
Usually the creditor would have taken possession of the equipment and liquidated it to recover some of the money lost.
NOT IN THIS CASE!
I woke up to .0003! AWSOME! Mornin Everyone.
36.4 million in debt settled?
MCI 19.6 million
Cisco 2.8 million
GEF 14 million
Can't wait to find out why!
Stervc & Redskies, Cisco Settlement article...
Here is the article discussing the Globalnet Cisco settlement.
GlobalNet Corporation Announces Settlement with Major Equipment Vendor and Acquisition of Leasehold Assets
Business Wire, Nov 16, 2004
THE WOODLANDS, Texas -- Company Settled over $16 Million in Debt over Last 30 Days
GlobalNet Corporation (OTCBB:GLBT) (www.gbne.net), a major provider of international telecommunications services, today announced that it has reached a contractual settlement with Cisco Systems Capital Corporation, from whom the Company's principal operating subsidiary, GlobalNet International LLC (LLC), had leased the majority of the telecommunications equipment used in its wholesale telephony business. In exchange for a $750,000 cash payment by the Company to Cisco, all leasehold obligations owed by LLC to Cisco will be satisfied and the Company will take title to the leased equipment. The settlement eliminates $2.8 million in debt obligations from the Company's consolidated balance sheet, a $225,000 monthly payment towards the debt obligations and allows the Company to deploy the newly-acquired leased equipment to the maximum benefit of the Company's overall VoIP business.
Earlier this month the Company announced an agreement with its principal shareholder whereby its major shareholder Growth Enterprise Fund, S.A. (GEF) has surrendered to the Company for cancellation 100,000 shares of Series A Convertible Preferred Stock, which represents all of the Company's outstanding preferred stock. The preferred stock is valued at over $14 million and was redeemable monthly for cash payments totaling $250,000 or 156,250,000 shares of common stock, which the Company has been making since January 1, 2004. The cancellation represents a monthly cash savings for the Company of $250,000 and a total cash savings of over $14,000,000. When combined with the Cisco Systems Capital Corporation settlement this represents $16.8 million in debt settlement and eliminates $475,000 in monthly obligations resulting from these settlements.
Advertisement
LLC is currently in reorganization under Chapter 11 of the U.S. Bankruptcy Code, in the United States Bankruptcy Court for the Southern District of New York. The settlement with Cisco was approved by the bankruptcy court.
The Company also filed today an extension of time to report its results for the quarter ended September 30, 2004, which otherwise would have been due yesterday. The Company expects to file its third quarter Form 10-QSB within the extension of time requested.
About GlobalNet Corporation
GlobalNet Corporation is one of the top ten U.S. service providers of outbound traffic to Latin America and counts among its customers more than 30 Tier 1 and Tier 2 carriers. GlobalNet provides international voice, data, fax and Internet services on a wholesale basis over a private IP network to international carriers and other communication service providers in the United States and internationally. GlobalNet's state-of-the-art IP network, utilizing the convergence of voice and data networking, offers customers economical pricing, global reach and an intelligent platform that guarantees fast delivery of value-added services and applications. More information may be obtained from our website at http://www.gbne.net.
Safe Harbor for Forward-Looking Statements:
Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in the future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product price, volatility, product demand, market competition, risk inherent in the Company's domestic and international operations, imprecision in estimating product reserves and the Company's ability to replace and expand its holdings.
COPYRIGHT 2004 Business Wire
COPYRIGHT 2004 Gale Group
http://findarticles.com/p/articles/mi_m0EIN/is_2004_Nov_16/ai_n6360812/pg_1
Additional OAA article.
http://findarticles.com/p/articles/mi_m0EIN/is_2005_May_4/ai_n13672005
Cali, OAA
c) Mr. Schaftlein did not report his May 2005 appointment as Director on Form 3, and did not report a pecuniary interest in OAA’s stock ownership. Mr. Schaftlein did not file a Form 5 to report these transactions
(g) OAA executed a binding agreement to purchase shares from GEF in 2005. Although transfer of the shares, comprising a greater than 10% holding in the Company’s common stock, has not occurred through the transfer agent, OAA is deemed to be the beneficial owner and did not file either a Form 4 or Form 5 to reflect this transaction.
(a) Mr. Schaftlein performs consulting services to the Company through Ocean Avenue Advisors, LLC (“OAA”). Total cash payments to Mr. Schaftlein or OAA, in this consulting capacity, totaled approximately $107,000, and $177,000 for the years ended December 31, 2006 and 2005, respectively. On January 8, 2007, the Board of Directors increased monthly fees paid to Mr. Schaftlein in this consulting capacity from $5,000 per month to $7,000 per month, in recognition of Mr. Schaftein’s additional duties as President of the Company. See Director Compensation table for further information.
Additionally, in August 2004, the Company agreed to issue 150 million restricted common shares to OAA, which is accounted for by monthly vesting over 12 months. Expense during 2005 and 2004 associated with the Executive Consultant Grant was $600,000 and $360,000, respectively.
As discussed under “Item 11. Security Ownership Of Certain Beneficial Owners And Management,” Mr. Schaftlein does not have an ownership position in OAA, but does have a “profits interest.” As a result, although Mr. Schaftlein disclaims beneficial interest in the shares of the Company owned by OAA, Mr. Schaftlein’s earnings from OAA will be affected by any gains or losses recorded by OAA on any transactions in the Company’s stock.
http://www.sec.gov/Archives/edgar/data/810932/000114420407052433/v087628_10ksba.htm#item7
Located between pages 112 - 118
I see board marks have jumped to 99.
I'm with you man, taken it all in and enjoying the process!
I've waited over two years, my hands and teeth are clenched tight till we hit my mark.
Was that 5 million at .0002? Nice!
Hey Cali and all! Wow! Day by day this has really picked up. Volume in trading and posts on this board. Word sure is spreading.
Cali, I saw that you inquired about some updated charts for the IBox. What's the status on that? Has anyone got back to you?
Ya! How are the shorts going to cover if majority of sellers are holding out to review all the information Globalnet has to release. Is it possible Globalnet is negotiating with Short Sellers to settle?
OT: from my previous post, this is a link to Schaftliens presentation for EPCG at Value Rich
http://www.visualwebcaster.com/ValueRichMiami07/event.html
OT: Surfkast AT&T...
Remember,
http://www.visualwebcaster.com/ValueRichMiami07/event.html
And now,
AT&T Set To Include Internet Telephony In Product Bundles
October 01, 2007: 08:05 PM EST
Oct. 1, 2007 (Investor's Business Daily delivered by Newstex) --
AT&T plans by year-end to package its fledgling Internet TV service with an Internet phone service.
AT&T has more than 100,000 customers for U-verse, the TV service it launched in late 2006.
But so far, AT&T (NYSE:SBT) (NYSE:T) has sold U-verse TV along with standard, circuit-switched phone service and broadband Internet access via digital subscriber line. Later this year, AT&T plans to install a voice over Internet protocol connection when customers sign up for U-verse TV.
Providing VoIP has advantages for users, but the $99 introductory price for all three services -- voice, data and TV -- will stay the same. AT&T says U-verse's Internet calling will be just as reliable as standard phone service.
By substituting VoIP for standard phone service, AT&T expects to lower network operating costs, says Ralph de la Vega, AT&T's group president, regional telecommunications and entertainment. In the long run, AT&T plans to shut down its older voice network.
"Customers just want voice to work, whether it's VoIP or not," de la Vega said. "It's a big step forward for us because we're putting all our services -- U-verse TV, broadband, voice -- over the same IP (Internet protocol) infrastructure using the same billing system. It begins a transition to the future where we can dismantle the (older) voice circuits."
VoIP services require a broadband connection. The switch to VoIP is also tied to AT&T's strategy of delivering all home services via Internet technology. De la Vega says AT&T will be able to offer new products, such as caller I.D. on TV screens, by having an all-Internet service platform.
AT&T also plans to meld TV and wireless services through Internet protocol technology. AT&T's wireless unit has launched a service that lets customers share live video over their cell phones at the push of a button. AT&T says its wireless customers will be able to whisk video to home TVs in the near future.
A network technology called Internet protocol multimedia subsystem or IMS, enables both VoIP and video-sharing. AT&T plans to fuse IP-based wireline and wireless services under the same customer billing system, says Boyd Peterson, an analyst at Yankee Group.
'Interconnectedness'
"VoIP is easier to integrate with other products than circuit-switched (wired phone) service," Peterson said. "It's about interconnectedness and weaving video, data and wireless under accounts management software. IMS links products in such a way that consumers are less likely to switch service providers."
The U-verse Internet phone service will be AT&T's first VoIP offering in a few years.
Local phone company SBC acquired AT&T in late 2005 and changed its name to AT&T. The old AT&T sold a VoIP product called CallVantage, but it didn't get many customers. The new AT&T hasn't marketed the CallVantage service much, and AT&T won't say how many CallVantage users are left.
De la Vega says the CallVantage network had limits in how many customers it could support. "CallVantage has capacity limitations, this new offering doesn't," he said.
The new VoIP product will only be available in markets where AT&T delivers U-verse TV. AT&T is still in the early stages of upgrading about half its residential markets to deliver TV services. AT&T says it'll spend $6.5 billion on the U-verse TV upgrade through 2008.
AT&T says its upgraded network will reach about 8 million homes by Dec. 30 and 18 million homes by the end of 2008, all within the 13 states that were SBC's region for wired phone service.
AT&T is expected to reveal additional U-verse upgrade costs for another nine states, all in the former BellSouth region, later this year. AT&T bought BellSouth in 2006.
U-verse TV ultimately might be available in two-thirds or more of AT&T's service footprint, including BellSouth's southeast region, analysts say. In other locales, AT&T plans to resell satellite TV services.
Only Within U-verse Network
AT&T customers in areas outside its TV network upgrade might have to wait a long time to get a U-verse-type VoIP service, de la Vega says. He says AT&T has no firm plans to sell a VoIP product packaged only with DSL.
"That's further down the road," de la Vega said. "We're going to be more cautious about that."
AT&T charges customers a higher price for DSL service if they do not buy local phone services in a package.
Analysts say phone companies do not want to sell DSL-only hookups, because consumers are then free to buy any VoIP service separately.
De la Vega, though, says in eight states AT&T is testing a package of wireless-only phone service and DSL, in which customers don't have to also buy landline phone service. This $60-a-month package offers 1.5 megabit-per-second home DSL along with 450 minutes anytime wireless minutes, plus 5,000 night and weekend minutes.
"Young people are going to be the target market," de la Vega said.
http://money.cnn.com/news/newsfeeds/articles/newstex/IBD-0001-19959029.htm
Do any of you expect '05 & '06 10K's next week? It sure would go nicely with the trend we have experienced this week. A volume high for the week is a nice way to end a good week.
Volume 2 days in a row; when was the last time that happened?
Info everyday this week! Lookin for the final two 10K's though. I would guess they file them sooner than later. Wouldn't you?
8K Out! Financing!
http://pinksheets.com/edgar/GetFilingHtml?FilingID=5462018
Pope, you think Geduld wants to get ahold of more than 385,000 shares? They sure have the money for it.
Thanks Pope! More...
This keeps getting more & more interesting.
Emanuel E. Geduld an institutional holder of GLBT. Excellent!
Try this link below.
http://www.j3sg-test.com/Reports/Stock-Insider/generate-Institution.php?tickerLookUp=GLBT&pageNu...
I hope this dream is a prelude to '05, '06 and it may get wet! LOL!
Part II, Item 7, page 118.