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LOL! masta! You got me!!! I feel sorry for that poor person that has that website - imagine the hate amil that they received in error!
Yeah, obviously some one on HSM picked up on my post from yesterday - BEFORE it was being discussed over on HSM. By the comments being made over there - and the rejoicing - they hardly think it is a shame.
His job is done. Guess he could have kept it up and await for all those apologies he had coming from that unrelenting abuse he received. Well, with no apologies at least he gets to see the misery of those same abusive posters. Sounds fair to me!!
hey - who knows - it was gossip - and god only knows how the truth gets twisted over there:
Sorry to hear that SWEETSPLAT's WSJ article won't get published - would love to hear what that would have been all about.
bohogirl
Jan 27th, 2007, 08:23 PM
For real, Sweet said that?
Actually, from what Sweet told me, the editor called him and asked for permission to 'shelf' the article, as it may interfere with an ongoing investigation; he was asked by feds to sign something essentially saying 'I'll stfu' (:LOL: I'm sure that the form didn't use those specific words, but that's what he used to explain it to me), so the article's publication has been postponed until later date, if ever. Maybe he shared something else with others, but he never said 'xyz side won' to me, or that the article is now irrelevant - quite the opposite - it was relevant enough to interfere with an investigation.
:( I was kinda looking forward to reading it :(-------------------
Maybe the FBI took over the site??? or advised him to shut it down???
Apparently someone named Sweetsplat had some article about CSHD to be published in the WSJ and it was requested to be shelfed by the FBI or something like that. sorry don't have the details. but obviously someone is being investigated! LOL!
Hey serfy, I can't get onto Our streets website any more - can you? wanted to amuse myself with our Festering Pool letter...the original one.
You know I can prove it - I never make statements with the posts to prove it! LOL!
Hey Janice, what are the reasons for "gagging" a T/A?? I know that happened with CSHD afew times.
you oughta know!!! LOL! I saw you playing coy over on that OTHER board about that stalker!! You didn't fool me.
First it starts with breaking into your kids piggybank, than you remortgage your house, use your credit card and apply for new ones, use your life savings, take out another mortgae, get all your familiy and friends to invest - How many shares did the HSM CSHD shareholders that were posting (including BODI/Mike alexander) end up with? Enough to vote the CEO out?
I just sent off this post to the SEC to remind them why they are working.
There are real people that need their help.
Posted by: xxxxxxx
In reply to: xxxxxx who wrote msg# xxxxx
Date:1/28/2007 Post #of xxxxx
Think about how many shares are owned by people on this board who are going long.... An awfully large number of the people I have been talking to on this board are in the 1 million plus club and it's common knowledge that there are several members in the 5m club and at least 1 in the 10m club. Last weeks selloff got many more of us to increase our shareload with cheap shares. How much of the Outstanding Shares are controlled right here!! In all reality $1 a share in a few weeks is not an unreal expectation.
My recommendation, Monday/Tuesday will be the last chance to still get cheap shares under .03. So break into your kids Piggy Banks empty them out and leave an IOU or a convertable debenture note (you'r choosing) and grab your take of the shares.
Once we clear the .05ish point virtually everybody will be in the GREEN again and this place is going to go NUTS!!!!
Good Luck Everybody, Strap in your seatbelts and START YOUR ENGINES!!!!!
VVVVVVVVVVVVVRRRRRRRROOOOOOOOOOOOOOOOOOOOOOOOOOOMMMMMMMMMMM!!
and to da Mooooooooooooooonnnnnn!!!!
Yea baby!!
- This is xxxxxxx... Over and Out!-
Here's a post of someone about to learn the hard way about his new found supportive friends he found on the messageboard. No it is NOT an old post from someone at HSM. Maybe he should take a gander over to that old CSHD HSM board and watch how those so called supportive friends are now busy slitting each others throats. Pretty Pretty ugly. If only they had that chance TO listen to the naysayers. As Simon said on Subpenny a few days ago - if you listen to bashers you would probably save yourself from a much bigger loss.
The only thing this guy will be thankful for is the lesson NOT to listen to those on the messageboards specially when they are banning and trashing any naysayers. "How far trading has come?" To the point where the messageboards are a breeding ground for Pump and dumps. Where do all these little lambs come from???
Posted by: xxxxxxx
In reply to: None
Date:1/28/2007 2:00:21 AM
Post #of xxxxxx
I've got to say, if it wasn't for this board and a new friend, I probably would have sold. That was a really scary event over the last few days. For the most part, when I read this board, it makes me feel a little more secure in what I have invested my money in. I have watched everyone pull together here, running off the bashers, which I must admit, I had to laugh a few times:) I wish I had joined ihub a few months ago when I first started getting into trading stocks. It can be informative as long as you don't believe EVERYTHING you read.
My dad would be so proud:) He traded in a few penny stocks a long time ago, by phone, actually. I never could figure out why he had to be on the phone so much when it came to stocks. Now I see why and wish he was here today to see how far trading has came. He would have loved it. It is rather addictive:)
Anyway, no longer than I've been an ihub member, I have felt welcome and I just wanted to thank all of you for being here!
yessssss! Memory still intact!!! Whooo Hoooo!
whew! my only asset - my memory is still intact! Thank you you silly rabbit!!
Did those financials ever show up?? LOL!
Dave Perley was on subpenny?? Don't remember that. I think I remember James Gee being asked if that is where he got there investors from, or I think James Gee was saying that they were accused of going to churches to round up investors. Damn, my memory is fading.
You made the right choice about not getting involved in another stock - ughhhh! I forgot how addicting doing the research was - and it is so fun to snoop! I think I will pass on following up on FCCN and send my files to the SEC. They got big fast!!! I can look things up more quickly now.
Looks like we have another two weeks t see if Rufus pulls that proxy thing off. LOL - never know with this damn thing. I need my life back. LOL! I think I have spent more time with you than my "other" husband!
Interesting conversation that girl Jenna had with Alana Black. Sounds like they have Rufus in the bag for fraud. If I was his lawyer, I would pleadhim insane. Maybe even blame it on that stroke he had at the age of 31 - damage to his grey matter that turned him into a pathological liar.
Damn I have no memory of Dave on SP.
Well it's been ......... something - haven't figured tha one out yet.
Easy there serfy!!! You have been right on target the whole time. I remember you kept saying there was all that toxic financing that came with the deal - way before I even knew what toxic funding was! You nailed that one too!
here's another interesting HSM post - and Simon referred to Rufus alias on HSM as this person ghostxmaspast. found it odd though not many mispellings. Guess they are up for slinging some mud. I never did much digging on Dave Perley. Just knew that he was one of the original investors that held 2 million shares and he was the one that went hunting with Mike and James G when Mike shoot that Bison with a pistol. tsk tsk
Today, 01:12 AM #5413
ghostxmaspast
HSM Newbie
Join Date: Jan 2007
Posts: 3
_____________________
Quote:
Originally Posted by dplin2001
Give me a break!!!!!!!!!!!
1. where did I say I know what is going on????? NO WHERE
2. I have no idea how much money DP has and I'm glad that he kept FHAL going (if you say so).
3. What does this have to do with hypocrisy????
4. Where am I trying to hang anyone??????????/
5. do a search on DP and anyone can get the same info, I did'nt put it on the web!!!!!!!!!!!!!!
Why are you so defensive?????????????? I just thought a chapel in your house was interesting.
Maybe the way you are attacking me, now makes me suspisous!!!!
______________________
I'm not afraid to say, DP is a total crook. The only reason DP would place money into anything is to ensure that he can screw someone else out of there's. Proof is in the puddin in this instance, he and MA figured they would take RHP and their investors for a little ride like they did the original FHAL investors. Sort of didn't turn out the way they had planned though...So they found a patsy for everyone else to hate worse than them, because this guy was already having some credibility problems. I've know DP a lot longer than anybody here, short of his mom and dad. Ever ask him why he had to leave CA? Ever ask him why he had to create that "Trust"? Ever ask him how much money he really sunk into the company in the beginning? Ask him to see the cancelled check...he won't be able to produce one. Why cause all of his shares were free shares MA gave him for screwing other people out of their money...including his own family. DP hasn't got a moral bone in his body and the only loyalty he has is to his bank acct.....
ghostxmaspast
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Today, 01:13 AM
hey serfy, remember one of our conspiracy theories about he religion thing? Well check this out - you know who Dave Perley is right - a pipe along with James Gee - a hunting buddy of Mike A's -
qrq3p7
Jan 25th, 2007, 01:14 AM
Argyle builder Randy Bollig
Early this year in Argyle, Randy Bollig, a Catholic, began building $1 million-plus speculative homes with chapels.
Dave and Donna Perley say they did not buy their home because it had a place to pray and worship.
"We were a little surprised. But we go to church every Sunday, so we appreciate what Randy is doing," Dave Perley said. "Most of our friends are believers and don't go, 'That's weird.'"
The 250-square-foot chapel has images replicating early Christian art in Roman catacombs, including an image of the Virgin Mary and the Last Supper.
Perley said his wife plans to hold Bible studies and prayer in the chapel soon.
"You know, with your day-to-day work and dealing with the kids, you just kind of go, 'Hmm. I think I'll go in there for a while.'
"It's not that it's any greater than any room in the house; we don't worship the room," Perley said. "But it reminds you what you are supposed to be doing. It keeps you in check: 'Did I say the right thing? Did I do the right thing?'
"You don't go in there to say a bad word, I'll tell you that right now."
from http://www.e-hq.co.uk/mysterial.co.uk/web/cgi-bin/index.cgi?action=forum&board=spirit&op=dis...
Why are you so defensive?????????????? I just thought a chapel in your house was interesting
BS....you thought the chapel in the house was interesting.....:LOL: but you highlighted the $1 million dollars...what are you really trying to say?
Hey You are on the wrong board!!! LOL!!! this ain't SLJB!!
Pulling a BlueDiamond here:
driver4t3
Jan 26th, 2007, 01:31 PM
post from all stocks, from jenna.
posted January 26, 2007 12:20
--------------------------------------------------------------------------------
Ms. Black was very nice....She explained that she could only tell me what is already public knowledge via the court documents. She did say they have a man that is taking phone calls from concerned shareholders...his name is John....I do have his number....I will PM it to anyone that wants it....She said she deals more with witnesses & evidence.....& John answers shareholders questions. Here is the gist of our conversation....I do not want to put her answers in quotes being that I just took notes & it would not be her exact words......
*************************************************
Jenna: "How is the investigation going?"
Ms. Black:
-Both parties need lawyers, neither the company or Mr. Harris have attorneys.....
- currently in default process- not the same as entry or default judgement.....
-Judge needs to be shown proof
*************************************************
Jenna: "There are questions about who the CEO really is....Rufus is claining that he is the rightful CEO..."
Ms. Black:
-Great Question.
-Someone has to review the companies bylaws.
-SEC is not looking into that at this time.
-If Mr. Arlitt gets a lawyer to represent the company, that means it's up to the companies lawyer to make sure John is the legal CEO....The lawyer would have to confirm it through the bylaws of the company.
*************************************************
Jenna: "Is John Arlitt working with the SEC, is he frequently in contact with you?"
Ms. Black:
-unfortunatley can't comment on who they are working with or communicating with regarding the case.
*************************************************
Jenna: "Is the FBI currently involved in the investigation?"
Ms. Black:
- can't comment, but frequently do involove other government agencies during investigations
*************************************************
Jenna: "Are there any other individuals being investigated regarding Conversion Solutions?"
Ms. Black:
-can't comment but Rufus is the only one named in compliant...He is named in complaint because the SEC is confident they have enough evidence to point to fraud. The default needs to be answered by an attorney before this can move on...
*************************************************
Jenna: "Do you know of anything new on Pacers or anything that may be coming out on Pacer's soon?"
Ms. Black:
-we don't know it until it comes out....we have nothing on our side- if something comes out on Pacers it would be from the other side....
*************************************************
Jenna: "One of the times you were all in court Rufus handed the judge a sealed envelope are you now aware of what is in it?"
Ms. Black:
-envelope was entered as one of many exibits by Rufus Harris....he was entering them himself, as evidence, because there was no attorney present...the judge told him this would be the last time he could speak for himself....in the future, he would need an attorney....the envelope contained some codes....he did not want these entered as public exibits because if someone had these codes they could change ownership ...she said she could share this with me because it is a matter of public record....
*************************************************
Jenna: "We just want this over- we want whoever is responsible to be prosecuted- if there was a fraud committed......what happens if you do find fraud - how would we get our money back?"
Ms. Black:
- SEC's goal is to provide relief monitarily...
- the SEC sets up a fund - any money recovered will get distributed....
*************************************************
Jenna: "IF, in fact, you find Rufus has comitted fraud - How anything could be recovered if he has his assets in a trust..."
Ms Black:
-having assets in trust doesn't necessarily mean it can't be touched.
------------------------------------------------------------------------------
driver4t3
Jan 26th, 2007, 01:32 PM
part 2
*************************************************
Jenna: "We (the shareholders) are tired & just want this done....we hope that the SEC is in this to protect us..."
Ms Black:
-Our lives are on the line- our reputations are on the line..
- they wouldn't risk there lives & livelyhood to make something up
- they believe they have a case & would not pursue it if they didn't....
*************************************************
Jenna: "There are 2 bonds named in the complaint does that mean the other assests are not being looked at & that they are not fraudulent?"
Ms. Black:
-just becausse something is not in the complaint doesn't mean it's not being looked at...
- the SEC is looking at all the assets that are claimed
*************************************************
Jenna: "If Mr. Arlitt obtains new assets & does not include the old assets would that get the company in compliance or end the investigation of the company?"
Ms. Black:
- that's would have to be talked about when the case is opened up again....first he needs a lawyer & then these things can be discussed
*************************************************
Jenna: "Can you work with John Arlitt?"
Ms. Black:
-"That's a tricky situation...."
-Corp. needs an attorney....
- The attorneys duty to find out if John is the CEO.....Then the attorney needs to file a Notice of Appearance....
*************************************************
Jenna: "What does the company have to do to get compliant?"
Ms. Black:
"First, get an attorney."
*************************************************
Jenna: "Are you filing charges against Rufus?"
Ms. Black:
"The charges are in the complaint - those are the charges."
*************************************************
As far as a proxy vote goes....she said that she can't comment on that for the company ...she doesn't know anything about it...I was asking her a general question like who can distribute a proxy.....
Ms. Black was extremely nice & a classy woman....She sounded like she genuinely cared for the shareholders....I told her I belonged to a website & that we all had these questions... she also said if anyone else has any more concern & want to talk about it to call John at the SEC office....like I said I would be glad to give his number via PM.....The reason for that is I feel if I post his number he will be bombarded with calls all at once....if I give it via PM maybe it will reduce the volume of calls....
I hope these Questions & Answers helped....it looks like we still aren't 100% sure who our CEO is.....
--------------------
2007 = Big Money!
--------------------------------------------------------------------------------------------------------------------------------------------------
HSMers here's the interview that Sweetsplat did with Paul Poetter.
Posted by: cindyyoohoo
In reply to: None
Date:10/14/2006 10:14:08 PM
Post #of 143767
rufus mentioned a guy named Paul Poetter involved with the Cobra program that would be funded. Is Paul just the contact person? In interview he said just the agent.
(thanks blue for the repost!)
TR: Interview: Agent of Record for Waatle Holding Corporation and more...
FWIW:
[QUOTE=sweetsplat]This is an interview conducted today by Sweetsplat with Paul Poetter, the Agent of Record for Waatle Holding Corporation in the State of Arizona.
Question: Are you Paul Poetter, the Agent of Record for Wattle Holding in the State of Arizona?
Answer: I am the agent of record.
Question: There has been alot of talk about a JV in AZ..... Why is the Waatle corporation not in good standing in AZ?
Answer: It is my understanding that the powers that be did file late...in another state and mailed directly to commission. Waatle has little if anything to do with cshd. Waatle has moved onto Delaware because of their privacy act.
Question: Has Waatle been dissolved in AZ and what is your relationship?
Answer: I believe it is current but not active. iAs far as my role, I am simply the fellow that helped the powers that be file while they were in AZ. I am the fellow that would receive info in az, but that was then this is now.
Question: So why would Mr. Harris and Waatle...come to you as an agent in AZ?
Answer: they were visiting me at the time and you need a person who lives in az to be the agent of record to receive paper work.
Question: What is your relationship with Mr. Harris?
Answer: I consider him to be my friend and i hope he considers me to be his. I am working in r&d. I know Mr. Harris on a personal level. I trust the man and his instincts. He is only 38 and a work-a-haulic. He is the only guy who sleeps less than me.
Question: What type of R & D?
Answer: I known some things but I know I cannot speak to them. This drama is two years in the making. I am a project developer. : I have worked on most of the future projects page from the cshd site.
Question: When is the last time Mr. Harris talked to you about R&D in AZ?
Answer: weekly...we have a lot of things on the plate and are preparing to get started.
Question: Are you paid a salary at the moment?
Answer: No
Question: What type of person in Mr. harris and do you trust him?
Answer: Harris is a very intelligent and direct person...you either love him or you hate him, but he doesn't care if you do or don't...just get the job done.
Question: What is you opinion of the whole Dr. Mensah/AISS/GA ordeal with Mensah being negative on Rufus?
Answer: the good doctor. has so many phds and patents and patents that are secret, has un ultra security clearance, is considered to be strategic to the welfare of this government and he really is going onto chat rooms and giving statements to strangers. HA HA
sweetsplat: I have heard him lose it on the phone....lol
response: all of the fellows at their level have short fuses and get the job done no matter what the cost. He like most people do not like to answer the same question twenty times. One would thing that people are listening the first nineteen times
Question: Paul, what do you think of the current , pps with respect to your shares?
Answer: I believe what I read that the asset base is large enough to support the claims.
Question: Do you have restricted shares at the moment?
Answer: free trading
Question: Do you believe the bonds exist?
Answer: yes
Question: What do you know of the Mensah deal going south?
Answer: : i do not know about any deal going south.
Question: Do you own shares of FHAL/CSHD?
Answer: Waatle to CVSU to CSHD not FHAL
Question: Do you think you have any additional insight to give investors confidence or not regarding CSHD?
Answer: I do not believe I am allowed to...but I could.
Question: Why, in your opinion, should anyone buy or hold shares of CSHD?
Answer: For the future. look at the title to the future projects page at cshd and the future of my children.
Question: In your opinion....when do you see the pps really start to rise? Without giving specific filings......can you give us a date?
Answer: it should have risen weeks ago
Thank you very much for your time.[/QUOTE]
http://www.hotstockmarket.com/forums/showthread.php?t=42538&page=228
HA!!! that was a mild reprimand!!! You should have seen his posting a few months ago. I believe Dimension sent a message over to get him on some Prozac. Yup he was one of the ones responsible for deleting the "bashers."
answers to their questions:
NCTS37-The Rookie
Jan 27th, 2007, 05:43 PM
Oh shoot, it's on the tip of my tongue - I wasn't at the meeting, but I know who you're talking about, I just can't remember the name.
I'll be baaack...
EDIT: I'm back! As soon as I hit 'post', it hit me - are you talking about Peter Poetter (sp?)
He was connected with Waatle, if I remember correctly, and is from/in Arizona.
Sweetsplat might be able to help with more info as to Poetter's involvement, if he's around
If this guy is still around he can help clear up how the bond deal will work, that is if he will talk to someone about it. But Rufus did talk very highly of this man from Arizona.
The Rookie
*******************
the name of the guy was Paul Poetter. He acted as the registered agent since they needed someone in arizona to file. Yes he was that heavy guy in the fish shirt eating creme brulee in that Mexican Restaurant. From Wattle Holdings. the guy that dreamed up the futuristic JV's He had nothing to do with the bonds.
Rufus said he learned everything about bonds from the internet. also he worked with Ben Stanley that also did bonds. Ben Stanley remember him???
Sorry to hear that Sweetsplat's WSJ article won't get published - would love to hear what that would have been all about.
bohogirl
Jan 27th, 2007, 08:23 PM
For real, Sweet said that?
Actually, from what Sweet told me, the editor called him and asked for permission to 'shelf' the article, as it may interfere with an ongoing investigation; he was asked by feds to sign something essentially saying 'I'll stfu' (:LOL: I'm sure that the form didn't use those specific words, but that's what he used to explain it to me), so the article's publication has been postponed until later date, if ever. Maybe he shared something else with others, but he never said 'xyz side won' to me, or that the article is now irrelevant - quite the opposite - it was relevant enough to interfere with an investigation.
:( I was kinda looking forward to reading it :(------------------------------------------------------------------------
HSM gossip:
Moderator
Jan 27th, 2007, 08:28 PM
I have had about enough disrespect to the Moderation of this thread and in the next 24 hours the decision will be made to close it down or keep it open. Unfortunately , due to a small number of people, who appear to have strong influence on this thread, it puts the site in jeaporady and it is not worth my time nor the freedom we have given members to respect what we offer. This has nothing to do with freedom of speech, but certain individuals whom i have begged to follow the rules and yet all I have gotten is a slap in the face for my trusting that he wouldl respect the Rules of HSM. I suggest you go RB OR IHUB who allow such garbage and have a free hand to slander whomever you wish. I am tired and worn out trying to be a mediator. It just doesn't work.
We have a small group doing what they call due diligence. GIVE ME A BREAK!! You are in the stock, no matter what is dug up in public records or even to infer that someone has done wrong. You own the bloody stock, made your choice , now live with it because it is too late for this garbage after the fact. Let the FBI OR SEC do their job and not some half assed individual with an ego larger than life , who has basically ruined it for so many of you. I have had enough and you make your own decisions and no matter what, we or should I say MOI, will never be right. Live on the other side of where I come from for one day with this BS and see how long you last in this job. If it is my last message to you, it has been a slice. I am in the same boat as all of you, lost my investment unless something turns around , but the final straw was drawn this afternoon when i allowed a certain individual to return on condition. I was basically Fxxked. Sooo- long people if this is the last time i speak with any of you.:mad: :mad: :mad: :mad:------------------------------------------------------------------------
speaking of Corey Ribotsky -
xxxxxx
xxxxx
Sewer Pipes
Nathan Vardi 02.12.07
http://www.forbes.com/forbes/2007/0212/064_print.html
Hedge funds are posting nice returns from deals that may involve ex-cons, stock scammers--even the Mob.
If your entrepreneurial venture were desperate for capital, would you get it from a hedge fund? Sometimes that's not such a good idea. Consider Laurus Master Fund. The Cayman Islands hedge fund opened with $5 million under management in 2001 and has grown to $1.6 billion making investments in so-called PIPEs, or private investments in public equities.
In those deals the fund invests in a cash-starved, thinly traded public company. In exchange it gets securities--notes that charge interest, warrants and options--convertible into common shares of the company. Laurus claims it has achieved an annualized net return of 18.5% since inception. The people running Laurus from New York--brothers Eugene Grin, 49, and David Grin, 37--are making out pretty well, too. In addition to the standard 2% of assets and 20% cut of profits, they also collect a closing fee, an average 3.5% of each deal, which they liken to points on a mortgage. As for the companies they invest in? Not so well. On average they lose 30% of their stock price within a year of signing a Laurus pipe, says PlacementTracker, a San Diego research service.
PIPEs are a big business, drawing $28 billion last year from hedge funds. Some of the companies raising the capital are large, but most are desperate indeed, too small or too weak financially to raise money with a public stock offering. Some of the hedge funds providing the money are not financiers that you would select if you had a choice.
Originally from Ukraine, Eugene Grin became a vacuum cleaner salesman when he landed in the U.S. in 1979. Then he worked as a broker of penny stocks, among other investments, at F.N. Wolf & Co., the boiler room shut down by regulators in 1994. At Wolf one of Grin's clients was Gilbert Bornstein, a 54-year-old unemployed man who invested $32,000 with Grin after being convinced he could safely double his money through penny stocks. (Grin says he never made that claim.) Bornstein was soon stuck with $27,000 in losses. Nine years later a New York State judge determined that Grin owed Bornstein $40,000. Grin has yet to pay that bill, and the judgment remains outstanding. "He was superwealthy," Grin shrugs, by way of an excuse. "There was money in the family."
Today Grin and his younger brother, David, still traffic in penny stocks. But they do so through PIPEs. Hedge funds love these deals because the shares they get are often priced at a discount to the market to compensate for the fact that they can't be traded until they are registered with the Securities & Exchange Commission, which can take months. Meantime, though, hedge funds can value those PIPE warrants and options pretty much any way they want and calculate their net asset value accordingly. The larger the gain in a fund's NAV, of course, the more attractive it is to new investors.
And the more attention these deals may draw from regulators. "Improper trading practices in connection with PIPEs is a concern," says David Markowitz, an SEC assistant regional director in New York. "It's an area that SEC enforcement is looking at." The feds have so far focused on the improper shorting of stock. It is mighty tempting for a PIPE buyer to double-cross the company it is investing in by shorting the company's stock and using the conversion privileges with the PIPE investment to cover its short position. That earns the investor a quick spread but wrecks the target's ability to raise more equity capital. Such shorting is forbidden by Section 5 of the Securities Act. In September a U.S. Attorney charged Hilary Shane, a former hedge fund manager, with insider trading, accusing her of shorting Compudyne's stock after learning that Compudyne was contemplating a pipe fundraising. On Jan. 4 Joseph Spiegel, a onetime portfolio manager for a New York hedge fund, settled SEC allegations of his using PIPE shares to cover short trades and paid a $110,000 penalty.
Andrew Worden, 41, runs Barron Partners, a $150 million hedge fund that has invested $85 million in pipes since 2003. The fund flogs its expertise in microcap companies. It doesn't promote the fact that Worden in 1994 pleaded guilty to wire fraud--he stiffed brokers on shares they bought for him that decreased in value--and served two years' probation. "I was 23 years old," Worden says of his indiscretions, which were not prosecuted for five years.
In March 2005 Barron Partners invested $1.5 million in Cordia Corp., a Winter Garden, Fla. Internet-phone outfit 54% owned by Alexander G. Minella, who in 1993 was sentenced to up to six years in prison. Minella, then president of broker Wakefield Financial Corp., pleaded guilty to having "secretly rigged the trading in certain Nasdaq securities" by getting brokers to trade among themselves to manipulate prices.
Corey Ribotsky, 36, heads N.I.R. Group, a handful of Roslyn, N.Y. hedge funds with $630 million under management. His first business partner successfully sued him for stealing away their marketing and consulting firm. The florist at Ribotsky's wedding filed a $7,275 claim against him for failing to pay the bill.
So how does he do as a hedge fund manager? A Ribotsky PIPE, on average, precedes a stock-price drop of 54% a year after the deal, according to PlacementTracker. That still works for Ribotsky because of the way he structures a PIPE: He receives debt securities convertible into discounted stock, in an amount determined by dividing the principal by the price of the shares at the time of conversion, less a steep discount. The further a stock falls, the more shares he gets.
Since Ribotsky invested $1.5 million in 2005, shares in Med Gen are down from $1 on the o-t-c bulletin board to a fraction of a penny. The Boca Raton, Fla. company had less than $1 million in sales from an antisnoring spray, diet pills and supplements. (Its biggest shareholder and chief executive is Paul B. Kravitz, the former president of AppleTree Cos., who paid a $25,000 penalty in 1996 to settle SEC claims that he failed to tell investors in an AppleTree offering that he planned to invest $250,000 in a gambling casino.) Ribotsky converted the debt into 171 million shares of Med Gen, at discounts of 40%, by September 2006. Did he sell his stake, triggering the stock-price plunge? N.I.R. lawyer Jonathan Schechter declines to say. "It is not us that makes a company lose its value--maybe a company hasn't executed its business plan," he says, adding that N.I.R. never shorts a stock.
One of Ribotsky's PIPEs, a $1 million investment in Roanoke Technology, a Rocky Mount, N.C. Web site designer, allowed N.I.R. to purchase newly issued shares at a discount of 50%; Roanoke's shares then traded hands on the o-t-c bulletin board at 12 cents. After Ribotsky sued Roanoke when it didn't meet its loan payments, Roanoke countersued, claiming that N.I.R.'s selloff of shares was destroying the company. Indeed, trading volume of Roanoke stock jumped from 180,000 to 2.4 million shares on the days Ribotsky's funds filed conversion notices, say court documents, and the stock price plunged to less than a penny. Both suits were settled. Roanoke chief David L. Smith Jr. ended up leaving the company and settling SEC charges in August 2006 that he improperly issued stock to consultants who sold them for $7 million and kicked back $4 million to him. Smith has been barred from acting as an officer or director of a public company.
When it comes to dicey partners, though, few are as accomplished as the Grins. They financed Francis O'Donnell, who has gotten to know the feds pretty well. Taking over as chief of Searchhound.com, an o-t-c bulletin board stock in 2003, O'Donnell changed its name to Coach Industries, quickly built up a controlling stake in the Cooper City, Fla. firm and started acquiring limousine companies. Laurus backed him with a $6 million loan. On Jan. 5 O'Donnell pleaded guilty to being an associate of the Genovese crime family. The indictment also claimed that an FBI agent posing as a drug dealer was asked to launder proceeds through Coach in exchange for a fee. In addition O'Donnell is accused of luring a victim to his office, where Clement (Clemmie) Santoro allegedly held a gun to his head and demanded a $1.5 million payment.
The Grins invested $1.5 million in April 2004 with Magic Lantern Group, which marketed Canadian educational videos. Their introduction to the company came through National Financial Communications, owned by Geoffrey Eiten, a Needham, Mass. newsletter writer who flogged companies and claimed to show readers "how to make 5,000%" on their money. Magic Lantern's biggest backer was Lancer Management Group, a New York City hedge fund that blew up amid accusations of fraud.
Magic Lantern, which lost $15.9 million on sales of $2.7 million in 2004, began to disintegrate. Eiten was sued in September 2006 by William Galvin, Massachusetts secretary of state, for engaging in "widespread 'pump and dump' transactions by publicly promoting certain stocks at the same time he was selling them." Galvin released chummy e-mails between Eugene Grin and Eiten's company suggesting they team up to sell Magic Lantern shares. Eiten denies any wrongdoing. Laurus managed to eke out what it calls "a nominal profit" before Magic Lantern's stock collapsed.
In November 2004 Laurus agreed to lend Thomas Equipment, which makes skid loaders and hydraulic equipment in Canada, $22 million to finance acquisitions and operations. At the time the stock traded at 88 cents. Most of Laurus' loans were convertible into stock at prices of $1.50 a share; the Grins also bought 2 million shares for a penny each and received options to purchase 4 million more for a cent apiece. Helped by a steady stream of press releases, Thomas shares touched $8.99 in January 2005 on light volume.
What was driving the stock? James Patty, former interim chief executive at Thomas and a current board member, says that David Grin was constantly focused on Thomas Equipment's share price, even though the lack of liquidity in the stock meant that Laurus could not sell too many shares without driving down the price. Word came down from David Grin, says Patty, "that he couldn't allow that type of hit to his portfolio." Why? "My assumption would be he was looking at a valuation of the company in order to attract additional money into his fund," Patty says.
Ridiculous, says Eugene Grin. The effect of Thomas' high stock price on Laurus' net asset value "was never material." His valuation model, he claims, discounts severely for the lack of trading volume in a stock like Thomas. A good thing for Laurus: Thomas Equipment's two main units have filed for insolvency in Canada; it was yanked off the American Stock Exchange and now trades for 8 cents.
Eugene Grin says he never shorts a stock. He also insists that Laurus provides a valuable service--and is more like a bank than a hedge fund. "We have tens of thousands of people working because of our investments," he says. "It's a beautiful thing."
http://www.forbes.com/forbes/2007/0212/064_print.html
CAREFUL! If you don't want to be up all night trying to decipher what he is posting, you better ignore him!! I was exhausted last night! I have no clue what kind of translation program he is using...
A girl can hope can't she???
It won't stop me from communicating with the SEC - the more red flags you show them, the more likely they will react. Onwards and upwards! Don't let the crooks get away with thinking it will only be a slap on the wrist....
And stop depressing me with comments like that!!!
I don't know who has babysitting detail today, but you better take a look at Mr. T's postings on FCCN. I doubt you should be allowing that type of "insider info" leaks - he could bring down IHUB.
GO!!! SEC!!!! GO!!!!SEC Targets Recidivists in Over-the-Counter Markets (Update1)
By David Scheer
http://wealth.bloomberg.com/apps/news?pid=20601203&sid=alPi86Bdl_ZM&refer=insurance
Jan. 26 (Bloomberg) -- The U.S. Securities and Exchange Commission will boost scrutiny of over-the-counter market frauds to identify and pursue repeat offenders who facilitate misconduct, the agency's enforcement chief said.
The agency will target even supporting players whose names are linked to multiple infractions in such cases, including lawyers, brokers, penny-stock promoters and shell-company sellers, Linda Thomsen, the highest-ranking U.S. securities enforcer, said in an interview yesterday.
``If you go after the other players, you have more effect,'' potentially upsetting a variety of scams, she said. ``There are international implications.''
SEC Chairman Christopher Cox last year pledged to boost efforts to thwart frauds aimed at retail investors as the increasing concentration of wealth among older Americans threatens to trigger an ``avalanche'' of cases. Those investors are often the targets of fraudulent securities sales, penny stock manipulation and so-called Ponzi schemes.
The SEC review may cast a spotlight on people whose names were linked repeatedly to past lawsuits, or highlight recidivists in current ones, said Thomsen. The agency usually seeks higher penalties against those who repeat misconduct.
Strategy Shift
Pursuing outside lawyers in over-the-counter cases would mark a shift for the agency, which more frequently goes after companies' in-house counsel.
Comverse Technology Inc.'s former legal chief, William Sorin, this month agreed to pay $3.1 million to settle SEC accusations he played a critical role in backdating stock options. He is among at least 10 general counsels who have quit or been fired during similar SEC probes.
``It's an intriguing area to look and may well prove to be fertile,'' said Jim Cox, a Duke University law professor specializing in securities fraud.
Some professionals are thought to be more lenient in their dealings, serving ``as a path of least resistance, or a weak link in the network protecting investors,'' Cox said.
The SEC will step up cooperation with criminal prosecutors to pursue recidivists and plans to develop computer methods to identify people with multiple violations, Thomsen added in a speech today in Coronado, California.
``We may have a case in L.A., a case in Fort Worth, a case in Chicago, that are on their surface unrelated,'' she said. ``We will try to focus on actors in common.''
Over-the-counter markets trade stocks, bonds, futures and derivates that are not listed on one of the major exchanges. A Ponzi scheme is a strategy in which people are promised returns on an investment, with the money taken from new investors used to pay off earlier investors.
To contact the reporter on this story: David Scheer in Washington at dscheer@bloomberg.net .
Last Updated: January 26, 2007 12:21 EST
http://wealth.bloomberg.com/apps/news?pid=20601203&sid=alPi86Bdl_ZM&refer=insurance
Hey Mr. T you better read this..
Read a few posts back about you visiting the company officials. Seems like you , lumik , and scoobey know the company pretty well. I was curious about a few things - something that this poster on FCCN said about Nicholas Investment Company. Wanted to know how exactly did S3 Investment end up with assets - specifically SINO - which at one time was sold to YaSheng. I see that Redwood Capital is part of the deal - did they get that asset from Nicholas? the filings stopped on YaSheng and I could find any details of any transfer.
Originally Posted by CASSITY
-They will be announcing all business for Aero, now that the definitive agreement is complete. He expects a very active PR campaign.
-Javelin is doing FCCN's audits
-Private firm is doing Aero's audits
-Developing a new website now that definitive agreement is complete.
-Should be an update on Aero's distribution
-Should be update on 1.5 million given to Aero (within days). (explanation if it was a private placement) He said, it like giving money to yourself. He also stated that in manufacturing(which I'm getting my degree in) a company will have loans of hundreds of millions, even if they make 100's of millions.(I was already aware of this) They need the money for RIPID growth.
-There are many filings that FCCN needs to get cleaned up. FCCN was a lazy piece of chit company.
-Aero value will decide where we are listed after merger. People wanted unaudited fins on Aero, he said that this would be very dangerous. If they were off on the unaudited fins, the board could be sued and it could do more damage than good.
-Stated that being a pinksheet company and being involved with NASCAR, would not be a good idea. Aero will NOT be a pink.
-I spoke to him about a previous merger he was involved with(Nicholas and some Chinese company) He stated this acquisition will better. The Chinese company came in with their own management and completely dropped the ball. They didn't put out any PR's and wanted to do everything themselves. There was more to this, but that's the highlights.
There was also more to the conversation, but you would just have to be there. The main thing I received from the call is that there is much more news to come. Some will come in the short term and some will take awhile. Point is that they are completing the deal and they are doing it RIGHT. So go listen to some dumb-ass basher or relax, as for me, I think I'll take a break from all the B/S. It's going to happen and it's going to be BIG. GLTA
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NOTIFICATION OF WITHDRAWAL OF ELECTION TO BE SUBJECT TO SECTIONS 55 THROUGH 65 OF THE INVESTMENT COMPANY ACT OF 1940 FILED PURSUANT TO SECTION 54(c) OF THE ACT
The undersigned business development company hereby notifies the Securities and Exchange Commission that it withdraws its election to be subject to sections 55 through 65 of the Investment Company Act of 1940 (the "Act"), pursuant to the provisions of section 54(c) of the Act and, in connection with such notification of withdrawal of election, submits the following information:
Name:
NICHOLAS INVESTMENT COMPANY, INC.
Address of Principal Business Office
43180 Business Center Dr., Suite 202
Temecula, CA 92590
Telephone Number
(951) 587-9100
Name and Address of Agent for
Service and Process
Shane H. Traveller
NICHOLAS INVESTMENT COMPANY, INC.
43180 Business Center Dr., Suite 202
Temecula, CA 92590
Basis for Filing Withdrawal
On July 16, 2004, approximately 54% of the capital stock of Nicholas Investment Company was acquired by YaSheng Group, Ltd., a publicly-held conglomerate whose primary operations are based in China. Subsequently, YaSheng acquired additional capital of Nicholas Investment Company such that as of December 1, 2004, YaSheng owns 91.7% of the total capital of Nicholas Investment Company and consolidates the operations of Nicholas. Further, on July 16, 2004, YaSheng elected to assume the reporting status of Nicholas and filed a Form 8-K12g3 with the Commission. Accordingly, Nicholas Investment Company no longer meets the definition of a business development company as it is no longer a reporting entity. The successor reporting entity, YaSheng Group, Inc., is excluded from the definition of a business development company.
Pursuant to the requirements of the Act, the undersigned company has caused this notification of withdrawal of election to be subject to sections 55 through 65 of the Investment Company Act of 1940 to be duly signed on its behalf in the City of Temecula and State of California on this 7th day of December 2004.
/s/ Steven R. Peacock
NICHOLAS INVESTMENT COMPANY, INC.
By: Steven R. Peacock
Its: Chief Executive Officer
http://www.sec.gov/Archives/edgar/data/1123312/000126246304000033/nivm6_2004.htm
REDWOOD CAPITAL, INC., WHICH WILL DO BUSINESS IN CALIFORNIA AS REDWOOD CHINA GROUP, INC.
Number: C2800638 Date Filed: 8/24/2005 Status: active
Jurisdiction: NEVADA
Address
43180 BUSINESS PARK DR STE 202
TEMECULA, CA 92590
Agent for Service of Process
KENNETH WIEDRICH
43180 BUSINESS PARK DR STE 202
TEMECULA, CA 92590
NICHOLAS INVESTMENT COMPANY, INC.
Number: C2668925 Date Filed: 7/9/2004 Status: active
Jurisdiction: NEVADA
Address
1450 ODDSTAD DR
REDWOOD CITY, CA 94063
Agent for Service of Process
MICHAEL LARIVEE
1450 ODDSTAD DR
REDWOOD CITY, CA 94063
Corporation
S3 INVESTMENT COMPANY, INC.
Number: C2051249 Date Filed: 4/20/2000 Status: active
Jurisdiction: California
Address
43180 BUSINESS PARK DR STE 202
TEMECULA, CA 92590
Agent for Service of Process
CHRIS BECKEL
43180 BUSINESS PARK DR STE 202
TEMECULA, CA 92590
BTW I am not trying to kill everyone on the train - this train already crashed - by I was concerned about the people boarding the FCCN train - since Zebra don't change their stripes. Not exactly a stretch to make a connection and not as farfetched as some Oliver Stone conspiracy theory.
any comments would be appreciated - other than off topic nasty ones.
run that through your translator one more time...
After Jannie??
You know what the most incredible part of that post was???? You posted it on CMKX as well. Now why would that be??? Are you Beaches? Blue Diamond? Someone from Prosperity for God's People? trying to spew that stupid naked short crap? Look up convertible debenture death spirals - that was the problem - that's why they shorted the crap out of it!
Money & Investing Naked and Confused
Conversion Solutions Holdings Corp. (CSHD)
1/26/2007 10:44:51 PM
Money & Investing Naked and Confused
CMKM Diamonds Inc. (CMKX)
1/26/2007 10:44:12 PM
"every" as in ONE??? Where is my DD on Szolt!!! I knew you knew NOTHING about this company.
screw the price tag, show me the merchandise! Oh wait is that right???should it be the other way around??
You got a penile implant???
Bets anyone??? How long will it take smallgain to comeback with info on Zsolt??
To whom??????
Hey smallgain - you are late to the party! This thing has been DD'ed to DEATH! How about I give you a name and you see if you can figure out how they are involved with the company - I'll time you to see how long it takes to come back with some DD on it - then we can discuss it....READY - SET - GO!
Zsolt Szekely
I'll give you a hint if you need one.
I'll let you ask me a question IF you can tell me something about this guy. Now Scoot!
I don't know - yo tell me...
http://www.investorshub.com/boards/read_msg.asp?message_id=16465252" target="_blank">http://www.investorshub.com/boards/read_msg.asp?message_id=16465915http://www.investorshub.com/board...
http://www.investorshub.com/boards/read_msg.asp?message_id=16465503
http://www.investorshub.com/boards/read_msg.asp?message_id=16463862
http://www.investorshub.com/boards/read_msg.asp?message_id=16463343
http://www.investorshub.com/boards/read_msg.asp?message_id=16462627
I KNEW IT!!! Come here you bad boy?!!