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Tell more about the group with 117 million shares. I can then answer the questions.
Any connection to public broker/dealer that BGMO claimed to own 2 mm shares of, but which was never verified.
The biggest share increase was August 2012 (62 mm shares at $0.001 per), well after the BB Solar opportunity collapsed. Please clarify.
Sorry, but SEC does not provide blow-by-blow coverage of its investigations. Just the conclusion, which was the strongest action it is allowed to take short of a civil lawsuit, which could take years to be filed. Rest assured the SEC has ample internal procedures where claims about a company are vetted/reviewed before the SEC can cease trading.
Has anyone seen any shares trade in grey market? Where is there info on this?
We agree on this - BGMO is a
"Justice" in USA sees Hillard Herzog and Sohail Parekh as the long running perpetrators of criminal securities fraud who filed massively false and misleading financial statements with OTC Markets.
Rahi did not. He merely presented a business opportunity, which BGMO appeared to accept and tout in radio interviews and PRs. Rahi delivered the demo he promised, never reported revenues/profits that were fictitious, never claimed to have access to absurd funding sources in HK. There is no claim or issue. He didn't break any laws or make false/misleading statements.
Conclusion - Rahi has no legal issues he needs to worry about.
Please explain this statement --
The dumbest part of Rahi's plan was that he trusted Hillard/Sohail and gave BGMO 60% ownership for nothing at all. BGMO delivered bupkis. What does this say -- first, HH is convincing and tireless liar. Second, Rahi didn't have a real business. but was chasing a dream. A company with a real business would never have accepted terms from BGMO or allowed themselves to get caught over a barrel. To your question -- BB Solar had the best business prospect of anything BGMO was involved with for years. There was definite market opportunity in Pakistan for solar pumps, and the business would have worked if BGMO delivered government introductions, on-the-ground partner with Haanz, knowledge of import/export, etc.
Describing the solar equipment supply chain as "flipping panels" shows ignorance about power industry that I've come to expect from the rag merchant at BGMO. The projects require combination of delivery, design, integration, finance, permitting, etc. -- i.e., development. BGMO's lack of understanding development was clear from the Pakistani coal plant and all the CSP plants in India/Lebanon -- none of which BGMO ever did jack but make PRs.
BGMO is suspended for cause. Won't be coming back. Get used to it.
The claims are absurd. I don't understand why someone would keep harping on this matter.
From the beginning, BB Solar and BGMO provided links to BlueSun product specifications. This was on BGMO website. It is exactly what one would expect in a solar project design/integration/construction business to do. Did you think BB Solar manufactured solar panels and/or water pumps? What a laugh.
Let me repeat -- the solar equipment industry is defined by equipment manufacturers, distributors and system integrators, who like BB Solar, sold, financed, designed and installed the actual projects after purchasing the equipment from a manufacture. Duh.
This isn't like supplying manufactured clothing from Pakistan, where visits to the factory are necessary and you wouldn't want to deal with another broker/middleman since it cuts into margins.
Now that BGMO scam has been slammed to ground by SEC, company is flailing around to accuse anyone and everyone but the people really responsible -- Hillard Herzog and his sidekick, Sohail Parekh.
The more they fail to accept their fate, the worse their situation gets. It's time for BGMO to STFU.
Great work. You might check if HSBC has a fraud tip line. Herzog and his euro-buddy should be reported to Interpol for attempting to defraud banks with counterfeit and worthless papers.
It is an oxymoron to say anything related to BGMO is positive news, especially promises from HH to show people the worthless "signed papers" proving the company's claims. Trading in shares of this fraud has been effectively and permanently shut down by SEC. BGMO concocted fantastical stories of investment and profit for years, and occasionally dragged legitimate companies into its cesspool. Herzog is an effective sociopath, who can and does dissemble and lie straight to people's faces. I am sorry Shawn Singh is too buried under his own problems to realize what a jackass is for allowing the BGMO charade to continue. How many closings dates have been missed? What possible reason does SS have to keep SPA open? He should tell HH to shove off. Otherwise he just makes VSTA a target for SEC investigation too (guilt by association). I am stunned Platinum allows this albatross to hang over VSTA, which repels any other potential investor, just like with Greensafe.
BGMO had a chance to build a real business in Pakistan and elsewhere to supply and install solar water pumps, but blew it by royally screwing their partner.
Turns out the last thing HH/SP wanted was a real business, when telling fantastical stories on BigBiz and selling shares was the company's business model.
Details of BB Solar's supply arrangements are not important. There is no possible benefit for Rahi to sue HH/SP/BGMO, because there is nothing to recover. He'd just get on line behind Camofi and other defaulted creditors, vendors and ex-partners. However, Rahi got his revenge filing complaints with such groups as SEC, Canadian authorities, immigrations, IRS, etc.
We may never know what triggered the investigation that led to Federal securities action against BGMO, because the SEC does not disclose this info.
I believe various people filed complaints with SEC over time, and with encouragement from the Vancouver guy, several more did this year.
There is a chance, the case was offshoot of criminal fraud investigation of Robert Fowler of U.S. Capital Funding scam, in which BGMO played a highly visible role, as one of the few companies to public associate itself with the Ladies Man. While many of us within minutes figured out the SBLCs were worthless (and US Capital had highjacked someone else's S&P rating), the great business leader HH kept promoting the SBLCs as good as cash for over a year, and maybe even presenting them to banks (an international crime).
The SEC has taken action to close down the BGMO scam. There is chance this is the end of the story, but given the continuing unrepentant actions by the insider gang, who doesn't know when to shut up, they may goad the SEC staff to keep going.
Can anyone tell how many shares have exchanged in grey market?
What in the world are you talking about? BB Solar was supplying BlueSun solar pump systems, widely available in the market and proven. SP blew a great business opportunity through his ineptness and bad faith dealings. But what do you expect from someone who's stuck by HH through all the lies and failure. SP should be deported - we don't need this sort of scum from Pakistan, we have enough scum already in this country.
http://bluesunpv.com/pview.asp?id=1794
The SEC moves slowly, so it could be years before a civil case is filed, or never. SEC already ran its investigation, which resulted in the two week trading suspension (the maximum allowed by statute) and triggering of onerous trading requirements that effectively bans BGMO from OTC Markets for good. This may be end of SEC actions, but more commonly the SEC persevere to ban HH and SP for life from involvement as an officer or director of a public company. From the SEC's point of view, HH/SP have run a campaign of false and misleading statements, flouting the forward looking statement safe harbor rules, failed to provide material information to investors, provided grossly false and unsubstantiated financial disclosures, exhibited gross negligence and willful misconduct in their management, etc. Therefore they are not competent to serve as officer/director of public company.
The SEC doesn't need to meet with BGMO, as they have already reached a final decision. The game is over.
It is hilarious that HH/SP and family still churn out nonsense as they've done for years, apparently not having gotten the memo that the SEC closed down this scam, sending the shares forever to the grey markets of no return. Their ATM is closed. The shares are worthless.
Silly cut/pastes of VSTA old PRs rub peoples' faces in the glaring fact that BGMO defaulted, as predicted, on SPA, just like it did on every previous claim/promise, because it had no money, never did and never will.
April 16th PR is classic Herzog -- working to produce the "real documents" to prove everything, just as soon as OJ finds the real killer. Herzog M.O. has always been to have rafts of "signed documents" to provide alibis on his massive long running campaign of false and misleading information.
HH knows the $88 million was a scam and no $billion at HSBC for him to invest, yet there will never be acknowledgment. HH is a deeply troubled liar sociopath and so is SP. May they rot in hell.
I am hoping the SEC, IRS, FBI, Immigrations etc. follow through.
I bet BGMO hasn't filed tax returns in years.
Federal criminal indictment could take a year or longer. Justice works slowly.
BGMO permanently in grey sheets, unless it gets revoked.
Mission Accomplished.
The con men issuing PRs for BGMO don't know much about SEC rules or how to play the pink sheets. Otherwise they would have cashed out more money by now and moved on. These are friends/family of Herzog and Sohail with little financial sophistication, and much of their lives tied up in BGMO. Too bad they dug deep hole for themselves and have attracted Federal investigation.
The filing of false financial statements based on meaningless papers from secret European "subsidiary" is prima facie evidence of gross corporate mismanagement. HH and SP will be banned for life from officer or director of any public company, especially non-listed ones.
Same head fake story these conmen have been foisting for years --- let me guess -- the final financial arrangements will be done .... wait for it..... in two weeks.
BGMO is a never ending fraud, which is now ending, thanks to SEC action. Grey sheets are an island of no-return.
BGMO can't become compliant with OTC Markets -- it tried once with blatant misrepresentation and incomplete disclosures to fool simpleton lawyer Seeberger and simpleton accountant, then massively distorted their work product, which has since been withdrawn. Until HH can find the secret profits from his secret European subsidiary, he's up the creek without a paddle.
I am enjoying this quite a bit.
By now HH has positively determined the HBSC paper was worthless. Any chance he will finally man-up and tell the truth? I doubt it. He is so set in his lying ways, he doesn't know how to tell the truth. Sohail is even more guilty and should be deported. We don't need this trash. We have enough of our own.
Heard this story so many times before -- not once has it resulted in anything positive -- just blather.
The Great Big Lie of BGMO is coming to the end.
How can Shawn Singh keep holding out any hope that BGMO will fulfill SPA? What load of crap has HH been delivering -- HH is a master liar who dissembles and rambles, and never admits fault or takes responsibility. I bet HH begged SS not to cancel SPA since HH was "flying to HK" to get the money.
It's all fake. HH is a conman. SS has been made to look like a fool. This is big black mark on his professional career.
Grey Market opens up today for prearranged trades. Watch for nonsense, but nothing will save company now. There is no return from grey land. Shares are worthless.
I am still wondering -- what is identity of broker dealer BGMO claimed to own 2 mm shares of? Once HH told people it was Global Arena.
Who is the European partner -- was it that hedge fund guy from a couple of years ago?
I can imagine Hillard coming out of Hong Kong Shanghai Bank Headquarters in Central after being told "Why did you fly half way round the world? We told you the papers are fake. There is no deposit. Go away old man".
Hillard knew all this already, but is desperately trying to build up his alibi that he was a "victim" of a scam, not the perpetrator. It's the difference between criminal securities fraud and just gross negligence and willful mismanagement. The SEC doesn't care for the old man's stories. The evidence is overwhelming about the BGMO scam, whether or not Hillard had "signed papers" to back up his claims. He's toast and so is BGMO. Sohail will be the Fall guy.
1. How could HH share money with investors? It is not his money. At best, he was hired to advise on investments as sub-manager to NWI.
2. The fake Power of Attorney says money can not be removed from the account.
3. When he gets to HK, he'll be told "you've been scammed". The papers are phony. There is no money on deposit sitting there for past eight months waiting for instruction from shell pink sheet players. Duh.
4. Helps establish alibi for SEC that HH believed the papers were real when he issued PRs, and even showed them to CPA. SEC won't buy the argument, because conspiracy to issue false PRs is well established and company failed to act in commercially responsible standard, but might save him from criminal case.
5. It's a bogus argument, but bought HH another two weeks with VSTA.
6. It does nothing about the massively false revenue/income/cash reported almost a year ago and not seen since.
7. Fat lady is singing.
Tomorrow could be interesting -- I expect tape gets well painted with nonsense trades. My guess is that SP and HH families have nothing to do but hover over this failed carcass trying to make it look alive.
It appears from 10-Q that VSTA has not yet abandoned BGMO, but this is hardly proof of anything. HH must be providing typical dissembling excuses and never-ending assurances that everything will work out "in two weeks". He is a well-oiled liar.
For BGMO to actually have money requires one to believe (a) a super secret trading program gifted to BGMO by mystery partner produced immense profits a year ago with no capital at all or (b) a mystery bizzionare picked HH to make equity investment through tax inefficient unaudited pink sheet shell with many liabilities for 50% of upside, and didn't pull back despite SEC investigation.
One also has to believe BGMO chose to keep all the money tied up, therefore has no money at hand.
And, management has chosen to make no PRs to shareholders on 2012 full year results, why company got booted from OTC Market, response to SEC suspension, etc., or anything, but company gladly lets pink sheet investors know with daily touts.
Even the Vancouver crowd is slapping their forehead at HH and his gangs idiotic actions in the face of Real as a Heart Attack Federal Investigation.
The Good News
VSTA timely filed with SEC, a day early
Company reported $186k profit for Q1
Company removed statement that BGMO was in default of SPA (although they are still in default)
Company got someone other than Platinum to invest, although amounts were tiny ($32k from Singh, $25k to Autilion, some amount to accredited investor in August)
The Bad News
No revenue at all, continuing trend for several quarters
Profit came from write-down of warrant/cont note liability, not real cash or real business
Assets total $0.4 mm vs. Payables of $2.1 mm, Notes of $4.8 mm
No mention of any new business prospects/opportunities
Burn rate still over $250k a month
Accumulated deficit now totals $67.5 mm with no end in sight for losses
No comment on defaulted closings with Autilion, no sight of money
Common holders being squashed under senior secured debt and diluted by warrants/converts now totaling 45 mm shares or more than 2x the current common
Regardless of outcome, issuance of 9 mm warrants at $0.0001 strike price in 2010 to relatives and 62 million shares at $0.001 in 2012 caused taxable income to the receivers, based on the "in the money" value.
What's the bounty for tax cheater tips?
http://www.irs.gov/uac/Whistleblower-Office-At-a-Glance
Bull Manure
BB Solar is not a public company. It never issued securities to investors. It did not do business in USA. It never filed false financial statements to OTC Markets claiming enormous revenues, income and cash. Its PRs were accurate, timely and not misleading. It had real employees and an office.
I can't even make up the hooey that is being slung.
The only reasonable and well-written PRs from BGMO were the ones two years ago about your solar demonstration in Pakistan (which I assume you prepared). I thought HH was turning a new leaf -- because he finally had a knowledgeable business partner and a real product, one that actual could be delivered to customers and brought benefit to society.
Too bad, HH welshed on his end of bargain, bungled the opportunity and screwed you. Apparently the last thing HH/SP wanted was a real business. That would upset their grift of telling false stories to sell shares. If they had a real business, they might have to prepare real financial statements and file tax returns, etc.
The idiots at BGMO don't even realize that Chinese solar panels are world-class quality and used all across Asia/Europe/America.
The Vancouver group seems to have done its due diligence on grey market, and abandoned ship. Hillard's group didn't get the memo, and continues to issue brain farts. I am just waiting for that chuckle-head Shawn to wake up and smell the coffee.
Platinum continued to fund senior secured notes in July to cover the cash burn. I am sure they are working on every viable opportunity to staunch cash burn and exit the position.
VSTA doesn't have any near-term viable business plan, but could do licensing or IP sale deals. All the consideration up to the total senior secured loan and interest will belong to Platinum before anything available for the other mounting unsecured liabilities. In most cases, the common will see nothing.
I am not sure why small holders aren't exiting --- either they aren't paying attention or there aren't really any. What euphoric exit do they think could happen to justify risk of holding shares at these prices. While most early stage pharma can support high market value while losing money, this company has demonstrated that its technology isn't highly prized in drug discovery. That is what passage of time and $50 mm spent, along with numerous pitches to companies and several demonstrations. The only active business I see are things like Hopkins which is using VSTA's stem cells but not their process for predicting drug impact on organs (i.e., the company's core technology).
Claims that VSTA is "standing by BGMO" are a perfect set up for another face slam disaster, just like claims that "no Federal authority is investigating BGMO" which were still being made up the minute SEC posted trading suspension.
Just a matter of time for this last shred of credibility to fall away. There is no money from HSBC - that just isn't how international equity investments are made. It's just a penny stock feint, like all the others.
Question - if there was a Hong Kong investor who wanted to put money in this highly speculative revenueless biotech start-up, why would he be doing it through BGMO C-Corp with tons of liabilities? He would cut his own deal directly with the target on much better terms. HH adds zero to the opportunity and has defaulted on agreements. BGMO's deal with NWI would be over because in 8 months, BGMO hasn't done anything.
Of course, this is just pointing out the obvious -- since money isn't real. Papers were faux. NWI is made-up shell.
Good thinking. Use VistaGen as crutch to provide legitimacy -- especially since HH clammed up and stopped issuing PRs himself while under investigation.
Too bad the suspension is because of false claims of $179.5 mm of cash and $283 million of revenue, that is backed up by nothing.
It might be closer to home. Even the Vancouver gang knows a lost-cause.
Experienced people know there is so little to gain from a grey sheet stock -- I am thinking SP and HH family and close friends.
At least it is entertaining.
The SEC Suspension is as real as a Heart Attack.
The SEC Suspended BGMO trading and sending stock to grave yard because BGMO filed false financial statements with OTC Markets.
The HSBC deposit, while also fake, is not a reason for SEC to act, since company never reported revenue/profit from laughably phony deal.
Anyone have any proof HSBC are real. Nope, didn't think so.
1. Papers are filed with typos
2. No one would hire Hillard the Liar as a money manager.
3. Fee structure is silly.
4. This is not how multi-billionaires handle investments.
BGMO is grasping at straws even though the inevitable is happening. Shares are worthless. HH slammed to the ground.
Last gasp will be VSTA termination.
Here is EDGAR site with quaint old BGMO filings:
http://www.sec.gov/Archives/edgar/data/1106652/000101968703001568/0001019687-03-001568.txt
The Real History of Bergamo (Company wants you to forget)
-BGMO was formed in 1997 and was a non-operating shell until July 2002 merger with Herzog/Parekh company, Clothing Source of California.
-Hillard Herzog, currently 84, is an undistinguished lifelong ladies garment salesman who moved from company to company without apparent success. Sohail Parekh, age 47, is the Sancho Panza the bean counter.
-Following RM in 2002 Bergamo maintained filings with SEC for about a year. The filings showed little revenue and loses. BGMO stopped filing in 2003. It formally terminated registration Sept 8, 2006. Old filing can be found on EDGAR. HH/SP comp in 2001 and 2002 was $36k/$34k, respectively. At that time the company had 2.5 million shares, with HH/SP controlling 64.4%.
-The company collapsed in 2007 under weight of debt to Platinum Funding after announcing several dubious acquisitions widely touted in PRs (a prevue of coming attractions).
-Through connections to corrupt government officials in Pakistan (a redundant statement), the dynamic duo learned of existing government plans for a coal power plant which all knowledgeable power plant developers including the Chinese had dismissed as unfinanceable. HH issued PRs that he would build the plant and announced BGMO was receiving $1 billion of financing from LondonWall, an invented entity. There were numerous PRs about the eminent closing, which briefly propelled share price to $1 with help from StockGuru. Nothing ever happened and the non-existent deal “died” when HH wouldn’t make deposit on Power Purchase Agreement.
-In Oct 2010, company announced large investments into Suntrough, a start-up CSP trough manufacturer with unproven design, and GreenSafe Demanufacturing, another start-up with plans to built appliance recycling and Freon disposal company using European design. These would be funded by money from Vivek Sinha of eSoft Informatics, a New Jersey based con man originally from India.
-Since then, the company has announced every few months bizarre and implausible financing schemes running into the $$$$ billions -- all of which depend on unidentified parties delivering huge sums of money on inconceivable terms. None of these investors can be verified as real and most appear made up from thin air. The CEO never explains why months later these massive deals have never happen.
-These financial schemes involve obvious scams -- such as worthless Stand By Letters of Credit (SBLCs), High Yield Investment Programs (HYIPs), prime bank guarantees, cash-backed deposits, etc. The 2012 deals involved deposit scheme of Italian bank Eurobonds and Brazilian bank guarantees. The 2013 scam is an investment arrangement where BGMO gets to invest $1 billion or $1.5 billion, depending on which PR you read, supposedly on deposit in Hong Kong Bank through bond powers granted to Anguilla shell, National Wealth Int'l. Herzog gets to keep 50% of profits. Paper work is phony, but company got a bottom-of-barrel penny stock accountant to repeat what was written on the papers, without any independent verification, which company then widely touted that deposit was "CPA verified". Clearly meant to deceive/fool investors.
-The CEO loves saying he has signed contracts or that he has documentation verifying everything, however, the papers are worthless.
-There was a very real $4 million final judgment handed down by NY Supreme Court in 2012 in favor of a plaintiff a former lender, Camofi Master LDC. Search for NY Supreme Court and see for yourself in the docket of cases (and other litigation BGMO has lost). Also litigation in Illinois and elsewhere.
-CEO has long history of making highly confident and convincing-sounding assertions in PRs, phone calls and interviews that something's been accomplished, everything's still on the table, all past statements are true and investors are about to be rewarded -- every time to no avail.
-The CEO will get hostile if you ask why previous PRs didn't happen. Financings are presented as imminent - and spurious details, like location of bank accounts, are in attempt to make claims sound real. It's all head-fakes from a master con man.
-The share dilution is not as blazing fast as many pink sheet BB pump/dumps. Shares when from 2.5 million in 2003 to 35 million in 2007, then climbing rapidly 2009-1020 to 155 million and then jumped in August 2012 when company gave away 62 million shares for $62,000 ($0.001 per share) to unnamed person. CEO swears under penalty of perjury that shares are 144 restricted, however the one year holding period is now over. Company refuses to identify the notorious 25% owner, but likely to be Herzog/Parekh or one of their co-conspirators. Herzog has also issued himself 58 million warrants, and 18 million of $0.0001 warrants to relatives.
-The CEO and his partner sold over 7 mm shares of their shares (20% of company back then) to the public in 2010 in deal with ICG and falsely claimed to have just 5 million shares in filing with OTC Market. See affidavits from ICG litigation for eye-opening testimony on how company is really run.
-The company pays people to post on iHub. Many different people admitted receiving money for posting (awareness posts). The company won't pay for an audit, rarely pays vendors, but does pay for relentless posting campaigns.
-Herzog and Parekh fumbled one actual business opportunity in 2012 by failing to deliver their side of the bargain and screwing over Rahi Tajzedah of BB Solar regarding the widely touted solar demo Pakistan. Herzog proved beyond doubt he is Bozo the clown.
-CEO is a stubborn short-fused soon to be 84 years old washed out garment salesman who has lived off this long running stream of fake and hapless ventures by borrowing against shares and selling shares.
-The Sept 17th release of compiled financial report brazenly reports $179.5 million of Cash in European subsidiary, but no one has seen a dollar of this. Company managed to get uptiered on OTC Markets to "current" status (but still no audit). Current status was stripped in March 2013 when company failed to provide required information to OTC Markets.
-Since December 2012 there has been a renewed pump campaign that continues to this day. Some think this is tied to recipient of 62 mm shares, whomever that may be (company won't disclose owner of 25% shares gotten for a song).
-Company in clear violation of U.S. Law by failing to hold shareholder meeting for as long as anyone can remember. Also, Herzog let corporate registration expire last year. Articles of Incorporation presented to OTC Markets show only 20 million shares. Governance is in shambles.
-SEC suspended trading in shares on Aug 2, 2013. Company moves to grey markets, but it appears to IR campaign of utter denial and nonsense will continue.
Herzog/Parekh filed a financial report to OTC Markets dated September 17, 2012 knowingly presenting to the public blatantly false, grossly exaggerated and highly misleading revenues, net income and cash.
The SEC asked for supporting information, and got "the Herzog run around". You know what I mean - just like the nonsense he filed in Camofi case.
The SEC suspended the shares.
SEC will proceed to strip HH/SP of their ability to be officers or directors of BGMO and any public company, or provide any services to any pink sheet company.
SEC will study the evidence to decide on criminal charges for Herzog and others involved with BGMO.
The head fake about an investment management relationship using some mystery person's money supposedly deposited at HKSB, while just as fabricated as BGMO's phony European subsidiary profit gusher, is not the basis of the SEC actions.
It doesn't matter whether there is a billion or $1.5 billion at HKSB, this isn't BGMO's money. Assets purchased with this money aren't BGMO's assets. All BGMO has is sub-advisory agreement with NWI. But this is moot, since the deposit and NWI are scams, just like almost everything having to do with BGMO.
HH days are numbers. SATISFACTION