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Don't worry about me, my loss is only 4 figures. But I intend to make five figures off a referral fee to the class action lawyers. LOL back at you.
Huh? Pawson is the one who is best at using partial facts. What good facts are there? Statements by Pawson cannot be accepted as true.
See my post 11093.
Newbies probably don't understand what Pawson did. There were two different assignments of the same $14 million mortgage on some west palm beach property. The one owned by Atac had already been upheld as valid by two courts BEFORE cbay purchased its assignment. The cbay assignment was basically created by someone who had no authority to do so ( a disbarred Utah attorney). Nevertheless Pawson recognized 6 million in income from the purchase of this invalid assignment on the financials and reported the 14 million as 100% collectable on the balance sheet. The bankruptcy court on 1/5/07 upheld the validity of Atac's assignment (the third court to do so) and basically rendered Cbay's assignment invalid. So imho Pawson created income and assets out of thin air on the stonewall note, one has to wonder what else, if anything, has been inflated. It is irrelevant whether cbay was defrauded on its purchase, the fact remains that under generally accepted accounting principles , this income or receivable should not have been reported as done. Moreover, not telling investors about the existence of the other assignment was a material omission which is against Rule 10b5. JMHO>
With yesterday's volume, looks to me like the Shakerzz group exited .
Cut $40 million in half. The $14 million stonewall receivable was ruled worthless by the bankruptcy court on January 5th, 2007. The charlotte county property is in foreclosure a mere 6 weeks after it was purchased for 3.1 million.Foreclosure filed Feb 2. Also check Alice's posts on this board who indicated that San Fransisco property was sold months ago and shareholders not told. Don't forget Calbay had a few deals fall through. Question is how much earnest money was lost.
Hard to say. $14,000,000 worthless receivable, charlotte county in foreclosure, some properties have been sold but shareholders not told, oh and the Preferred A may be converted 1 for 50 common which equates to another billion shares.
Pawson proven legitimate ? LMFAO. The shakerzzz group tried to run this thing when it was .25 and were met with Pawson or the restricted shareholders selling into all the buying. Today 14 million shares traded. That kind of volume should have moved the stock up at least back up to 2 cents imho. My guess is somebody is still selling. This stock was trading at 2.2 to 2.4 cents before the bankruptcy decision was uncovered showing that six weeks earlier that court had ruled the $14 million stonewall receivable was worthless and the lis pendes showing that cal bay is in foreclosure on the charlotte county property. The last financials show about $38 million in assets, so imho the market has basically deducted 17 million off the asset base and halved the price of the stock. Negative posts or posters on this board had little impact. The negative news (i.e. foreclosure and worthless receivable and worthless conference call) is what caused the stock to plunge.
Pawson is not in the real estate business...he is in the business of selling shares. JMHO
A reverse split usually causes investors to sell out of fear that it was done to free up the authorized shares so that there can be more dilution, thereby causing yet further downward pressure on the price. Pawson though could more easily just increase the authorized shares without a vote of any other shareholder besides himself so I have my doubts about a reverse split. Pawson has been sued under his guarantee of the charlotte fla loan to the tune of 2.5 -3.1 million. I think he will dilute to get that loan paid off. JMHO>
TDS posted that there would be a reverse split 100 to 1. The post stated that months ago a goup of investors purchased restricted shares which Pawson failed to deliver, and that those investors in all likelihood had reached the end of their rope and were going to the sec fwiw.
Its not that you just can't trust the ceo, its that nobody trusts the company's checks are any good. I re read the mortgage on the charlotte county property. It might be in the note itself, but there is no provision in the mortgage about calling the note if the financial condition of the borrower becomes impaired and the lender deems itself insecure. So if no such term exists, it may be that cbay did not pay the loan down by $600,000 i.e. either the check bounced, or cbay gave a 30 day note for the amount and defaulted on that note. Just speculation on my part.
Also ask for any and all correspondence to and from the various transfer agents, and all information concerning the patents.
I am glad to be of service. To inspect just the shareholder records, you might have to do it at the registered agent's office in Nevada which is in Las Vegas. If the 15% is obtained , also ask to see the engagement letter for the cpa doing the audit, and his workpapers to date. Act like an IRS agent, a pit bull, not a friend. One of the hardest things to do in life imho is to ask hard questions or questions you don't really want to know the answer to. It is especially difficult to do after you have been wined and dined or introduced to family. Oh, and get a look at that Big Apple consulting agreement.
If Jim sees the natives are restless, and have mustered the 15% of shareholders, you might just get a shareholder letter posted on the website explaining and confirming things. The idea is to force his hand . If he makes the group go to court to make the inspection, that in itself would indicate Jim has something to hide. If you get the 15%, don't forget to get a peek at all sec correspondence, a copy of any discovery including depositions taken concerning the inquiry, letters of intent/agreement for acquisitions, etc. It is as much your company as it is Jim's so you can even ask for his expense account records.
Smartmoney you should probably have the group hire a Nevada attorney (one close to the nevada registered agent to save billable hours) to do the inspection/make copies and make the initial demand. I would think all the lawyer would have to do is write a demand letter requesting the inspection, which states he represents the named shareholders and showing their respective share counts. The attorney would probably want a fax from each shareholder stating he has their authority to act on their behalf for the purpose of this inspection. Save costs by providing the lawyer the statute, the name of the registered agent, etc... then you will not be billed for the research. Ckys will think twice about not allowing the inspection with an attorney involved.
All of you could also appoint one of the group (non-lawyer)as their "Attorney in Fact" to represent each of you in your place and stead. I posted a form or a link on this board that shows an all-inclusive nevada power of attorney for stock transactions. Most of the powers granted therein could be eliminated , to limit the power to just inspecting the shareholder records. Obviously, this might in itself require the services of a Nevada attorney to draft something that will do the trick. Plus you run the risk of the non-lawyer not being taken seriously by ckys, and the non-lawyer not getting the right records to extract the information you want. The power of attorney would need to be notarized by each of the group, whereas giving written authority to act to the lawyer would not.
LMFAO. In the first place what difference does it make whether the share structure is on the home page or somewhere else on the site? It would be no less fraudulent despite the less obvious location. Second, no lawyer is going to advise his client to put back up a fraudulent or misleading statement period because then he/she becomes one of the perpetrators of the continuing fraud and will be disbarred and sued for malpractice. You obviously do not have a clue. The relocation of the share count, and not its complete removal, points to its probable truth. Otherwise, it would be gone completely or the numbers revised given the sec inquiry.
>>and then later replaced....believe what you want but IMO someone got real nervous about that share structure and PR's being up there.......before consulting with a lawyer about it........the lawyer probably told them to put it back up as this draws attention to it since it was removed......basicly to late to hide it now!<<
The premise of your argument is that by placing the word "estimate" in front of numbers that are way below actual share numbers , Jim Plant and the TA are protected if the actual numbers exceed the estimated. That premise is false. If Jim Plant had done so, there is no protection because that action would in itself constitute part of the fraud or misrepresention. The use of the word "estimate" merely protects CKYS from people like you who would nitpick over any figure except the exact number. Your argument does not hold water.
Moreover, the TA is not going to fall on its sword for Jim Plant or CKYS. The TA is well aware that if the actual numbers are not close to what the website numbers are, and tell people like Liquid that they are, the TA is then part of a conspiracy to defraud and is subject to lawsuits from all those who relied on the TA's fraudulent/negligent representation of the veracity of the website numbers. So it is very unlikely Liquid was lied to by the TA. Just my professional opinion.
The company has to have the information. I would think the TA gets its information from the company on most everything. If not, the company would be required to get the information from the TA for you. Be sure to get the amendments to the articles of incorporation. You might even be able to order this from the Nevada Sec of State Office. Amendments would tell us the terms of all all authorized stock classes.
the two statutes were copied and pasted on this board at post No. 258 and Post No. 180. It would make things easier if you had a Nevada resident involved . Any ckys shareholders live in Nevada...I think its carson city.
Smartmoney , if you want to just see the company's stock records it is only 5% ; if you want to see any and all other records such as government contracts it is 15%.
Agree with most you say. Except what if the rumor about Pawson not delivering restricted shares to investors does cause the SEC to suspend. FWIW I did not start that rumor, although I have been posting that I think the sec will intervene for other reasons.
To the person who pm'd me I cannot reply. However, the answer is this . The $450,000 home is in alucia (sp?) county , florida which is in north central florida. The charlotte county, florida property is a bunch of vacant residential subdivision lots around tampa area worth 3 - 3.4 million and it looks like cbay's down payment was 600,000.
So TDS when and how did you learn of the 1/5/07 bankruptcy decision concerning the stonewall assignment? Did you know all along it was being contested? When and how did you learn of the Charlotte County Florida property foreclosure? You say the company is not headed for bankruptcy, so explain the reasons behind the foreclosure. Not asking for specifics just generalities. TIA
Me naive? Hardly. I posted rule 10b5, I suggest you read it carefully. It is what the class action lawyers will use when (not if) they sue Cbay, the directors, officers, and perhaps the accountant. Just a little over two weeks ago ckys was suspended from trading by the sec because of an inquiry into a receivable reported on UNAUDITED financial statements. Under GAAP, no way was CBAY justified in recognizing 6 million in income and 14 million as an asset when another assignment existed of the very same note . This was a material omission of a material fact. The fact that CBAY may be able to prove it was defrauded by the seller of that note to CBAY, is irrelevant. The fact that it was reported on the financial statements in the way it was is what will get the sec involved. JMHO. I always share my dd whether it is good or bad. I do not intend to buy cbay shares again. I have not and will not short cbay stock. Why do I continue to do dd on a stock I do not own? Hopefully, it may pave the way for me and other investors to recoup some of our investment here.
What's the sense in being this if chapter 11 is going to be filed, or the sec even ends up halting it. The pumpers dismissed the stonewall misrepresentation as insignificant. I knew better. Not only was 10b5 violated imho, it also caused every cbay creditor to take a closer look and say hey I don't want to be involved with this Pawson character. My speculation is that the real estate acquired is probably in a greater state of distress than when CBAy picked it up.
there has to be some more bad news that I haven't uncovered yet. My guess is chapter 11. Sec doesn't act too quick.
I tend to believe pawson will be in no hurry to file. It has to note major events that transpired since the year end...i.e. the stonewall note debacle. I also believe that cbay will have to hire new accountants. jmho.
Wow. Such a definitive statement. Why couldn't it just be fed up shareholders bailing out as soon as they learn the stonewall note is worthless and cbay's charlotte florida property is in foreclosure. I don't think this information is still known by all who might want to sell because of it. The conference call was on a friday night, on the eve of a three day holiday, after hours. And not everybody reads Ihub.
Where is your source to back up that statement? A legal department means in house counsel. A retainer is paid to outside counsel. Cbay imho worded it that way for investors to believe the lawyer said it was collectable in full, and I guarantee you no lawyer would be stupid enough to state that given the existence of the other assignment which had already been upheld by two prior courts. Under your explanation, one could then sue the retained attorney even though the statement says it is attributable to a fictional legal department . I don't think so.
You know how Pawson basically reports that it has completed merger with cobbs homes and then says oh nevermind. lol. What if he says nevermind with the stock he took in payment for the money he loaned cbay? Maybe that is where all the cash went, to repay that loan now that the stock has lost most of its value. Just throwing out the possibility. Speculation on my part.
reread the press release concerning the stonewall note where cbay says their lawyer uncovered another note. It says cbay's legal department values the note at.... What legal department?
assets that may have to be sold fast and at a discount to payoff or appease lenders.
May I quote you? lol
Creating 14 million of assets and 6 million of income out of thin air is what you have to assert against CBAY, Pawson, and the accountant. Pawson can dilute all he wants and you don't have a basis to sue. Pawson can convert Preferred A at anytime and wipe out the common float owners and you can't sue.
Unfortunately not. Class actions usually only benefit the lawyers. But there is always hope. The northern florida house CBAY owns still appears to be free and clear valued at $450,000. I wonder who is living there. It is in aluchia county (spelling)? Anyone know anything about the phoenix house cbay purchased? I could understand buying a portfolio of homes in one area, but never a single home in one area across the country even if bought at a discount.
I thought back in the fall that it could have been shorts, but it was Pawson diluting while singing that song. My gut feeling is that the collusion has been between buyer and seller on every cbay deal. That Alice d guy alluded to the fact that cbay had already sold a few properties. Where is that cash? Where is the cash raised from dilution for the deals that have been abandoned? If the 100,000,000 shares were truly used as collateral, then how long does it take to uncollateralize them? And if they are being used in connection with re-financing, won't the secured party now want 200,000,000 more now that the share price is almost 1/3 of what it was? Anyone know if the ceo's car has been repossessed? All jmho.
My prediction: SEC subpoena first, then Class Action lawsuit filing for violations under Rule 10b5 relating to the stonewall debacle, then Chapter 11....all by the Ides of March. Also, Tim will be flipping hamburgers even if he was a patsy because of guilt by association.
Unfortunately, expect a Chapter 11 filing. That is the only way anything can be salvaged. And what is salvaged will benefit Pawson only.
You know how desperate Pawson is to have done a rinse and repeat on the short thingy. Did you call charlotte county on the foreclosure petition ? Or do you now realize the lender had to have deemed itself insecure once the stonewall mortgage assignment was ruled worthless by the court?
Either the s.e.c. showed up or a chapter 11 petition is on its way to the courthouse. Inflating assets by $14,000,000 and income by $6,000,000 on your financial statements causes lenders to deem themselves insecure and call loans. But wait, if Cbay files bankruptcy, then all of Pawson's shenanigans come to light, so maybe he will dilute this to oblivion, and then convert the preferred A.
Obviously all the bad news was not priced in.