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hOPE nEWTON SERVES TIME
No in blackjack you have a chance of winning.
Will this ever come back ? I know we own some trademarks that might be worth something . Did our CEO ever get his due ??
who is bidding .009 ??? I guess market makers playing !!!
Account says I have almost $50,000 and I cant sell ! lol
sold my BFAR and got my $1000 back. Good luck fellas. Website gone. No one returns calls. Little hope left.
they are saying S*C*A*M******
( or scram ) lol
THis thing is dead. Please admit defeat !
up 250%%%%%% whhooohooooo !!!!!!!!!!
( Seriously ??? Seriously ??)
1000 shares big money moving in !!!
Looks like people believe the PR.
Time will tell if this is a smart move. Im holding.
Contact:
Gloria Fang
(86) 135-3407-3970
Email Contact
So Fang is still the contact?
Hey guys. Just waiting here on $1. I agree some news is better than total silence but news of substance would be great.
I agree this is a big gamble but it looks promising. Im holding.
This is like watching grass grow. BORING.
I guess we attack each other for something to do while we wait
for the second coming of BFAR.....If it ever comes.
WAX ON ....WAX OFF !!!!!!!
Kenneth and Wong dont really go together.
Fake name ??? Just asking.
Not a licence to do business in Nevada but ...
this is the corporate registration. I have a corporation and I know you have to renew every year or you are in default.
As suce your corporation status to do business ANYWHERE can be revoked. IMO
I am a long and not trying to scare. Look it up yourself.
All there on Nevada Corporations Website.
Why cant we get anyone on the phone ?? Just asking.
I have seen scams in pinks here before and this smells rotten. IMO
Nevada licence expired 7/2011 in default !
Info from Nevada department of corporations. We are licenced company in nevada but are in defualt as filings have not been made and payment to renew not recieved. In other words we are no longer a corporation. IMO
Business Entity Information
Status: Default File Date: 7/31/2001
Type: Domestic Corporation Entity Number: C20921-2001
Qualifying State: NV List of Officers Due: 7/31/2011
Managed By: Expiration Date:
NV Business ID: NV20011385984 Business License Exp: 7/31/2011
Additional Information
Central Index Key: 000108908
Registered Agent Information
Name: CSC SERVICES OF NEVADA, INC. Address 1: 2215-B RENAISSANCE DR
Address 2: City: LAS VEGAS
State: NV Zip Code: 89119
Phone: Fax:
Mailing Address 1: Mailing Address 2:
Mailing City: Mailing State: NV
Mailing Zip Code:
Agent Type: Commercial Registered Agent - Corporation
Jurisdiction: NEVADA Status: Active
Financial Information
No Par Share Count: 0 Capital Amount: $ 170,000.00
Par Share Count: 20,000,000.00 Par Share Value: $ 0.001
Par Share Count: 150,000,000.00 Par Share Value: $ 0.001
Officers Include Inactive Officers
Director - YANHUA HAN
Address 1: NEW AGRICULTURE DEVELOPMENT PARK Address 2: DAQUAN VILLAGE
City: TONGHUA COUNTY, JILIN State:
Zip Code: 134115 Country: CHN
Status: Active Email:
President - WENZHONG QIN
Address 1: NEW AGRICULTURE DEVELOPMENT PARK Address 2: DAQUAN VILLAGE
City: TONGHUA COUNTY, JILIN State:
Zip Code: 134115 Country: CHN
Status: Active Email:
Treasurer - WENZHONG QIN
Address 1: NEW AGRICULTURE DEVELOPMENT PARK Address 2: DAQUAN VILLAGE
City: TONGHUA COUNTY, JILIN State:
Zip Code: 134115 Country: CHN
Status: Active Email:
Secretary - WENZHONG QIN
Address 1: NEW AGRICULTURE DEVELOPMENT PARK Address 2: DAQUAN VILLAGE
City: TONGHUA COUNTY, JILIN State:
Zip Code: 134115 Country: CHN
Status: Active Email:
Actions\Amendments
Action Type: Articles of Incorporation
Document Number: C20921-2001-001 # of Pages: 9
File Date: 7/31/2001 Effective Date:
(No notes for this action)
Action Type: Merger
Document Number: C20921-2001-003 # of Pages: 5
File Date: 10/10/2001 Effective Date:
ARTICLES OF MERGER FILED MERGING SUZY-PATH, CORP., A (NV) CORPORATION FILE
#C22726-1999, INTO THIS CORPORATION. (5) PGS. PXE
Action Type: Amendment
Document Number: C20921-2001-004 # of Pages: 1
File Date: 12/05/2001 Effective Date:
CERTIFICATE OF CORRECTION FILED CORRECTING ARTICLES OF MERGER FILED 10-10-01-
VOTING. (1)PG CHM
Action Type: Annual List
Document Number: C20921-2001-006 # of Pages: 1
File Date: 6/05/2002 Effective Date:
(No notes for this action)
Action Type: Annual List
Document Number: C20921-2001-005 # of Pages: 1
File Date: 6/02/2003 Effective Date:
(No notes for this action)
Action Type: Annual List
Document Number: C20921-2001-002 # of Pages: 1
File Date: 7/12/2004 Effective Date:
List of Officers for 2004 to 2005
Action Type: Annual List
Document Number: 20050218914-82 # of Pages: 1
File Date: 6/08/2005 Effective Date:
(No notes for this action)
Action Type: Annual List
Document Number: 20060403437-59 # of Pages: 1
File Date: 6/26/2006 Effective Date:
(No notes for this action)
Action Type: Annual List
Document Number: 20070486097-93 # of Pages: 1
File Date: 7/17/2007 Effective Date:
(No notes for this action)
Action Type: Amended List
Document Number: 20080017261-87 # of Pages: 1
File Date: 1/08/2008 Effective Date:
AMENDED JULY 07-08
Action Type: Registered Agent Change
Document Number: 20080017262-98 # of Pages: 1
File Date: 1/08/2008 Effective Date:
(No notes for this action)
Action Type: Annual List
Document Number: 20080336486-50 # of Pages: 1
File Date: 5/15/2008 Effective Date:
08/09
Action Type: Amendment
Document Number: 20090552302-48 # of Pages: 2
File Date: 7/17/2009 Effective Date:
Previous Stock Value: Par Value Shares: 50,000,000 Value: $ 0.001 No Par Value Shares: 0 ----------------------------------------------------------------- Total Authorized Capital: $ 50,000.00 New Stock Value: Par Value Shares: 20,000,000 Value: $ 0.001 Par Value Shares: 150,000,000 Value: $ 0.001 No Par Value Shares: 0 ----------------------------------------------------------------- Total Authorized Capital: $ 170,000.00
Action Type: Annual List
Document Number: 20090553964-63 # of Pages: 2
File Date: 7/17/2009 Effective Date:
(No notes for this action)
Action Type: Designation
Document Number: 20090631274-74 # of Pages: 8
File Date: 8/21/2009 Effective Date:
(No notes for this action)
Action Type: Annual List
Document Number: 20100554142-74 # of Pages: 1
File Date: 7/27/2010 Effective Date:
(No notes for this action)
Fangzhuang (??) is a vast residential area in southern Beijing. It is located in northern Fengtai District and is bounded to the north and south by the 2nd and 3rd Ring Roads and to the west and east by Tiantan Dong Lu and Fangzhuang Dong Lu. Fangzhuang was developed in 1985, and was the first "modernized" residential area of Beijing. It features dense concentrations of high rise apartments, along with several primary and secondary schools, hospitals, a courthouse and the Fangzhuang Sports Park.
Fangzhuang is divided into four neighborhoods: ??? (Fangguyuan), ??? (Fangchengyuan), ??? (Fangqunyuan), ??? (Fangxingyuan). The second character of each neighborhood name, taken together, spells ????, which means the "stars of the ancient city." Historically, Fangzhuang was well known as an area where the affluent of southern Beijing lived (?????).
Fangzhuang is served by Line 5 of the Beijing Subway and by many city bus routes
NOTE : ALL PINK SHEETS ARE MANIPULATED> JUST SO U KNOW> IMO
Fangzhuand is near fukutoo i think ! lol
This thing could fly with volume.
unfortunately we are flatlined now .
Any idea on the future of this pos?
I am a newbie here but past chart looks good if we could return to
above a dollar days !
hard to get volume if sales not going through
waiting on more shares now. prospects look good for this company. Chart looks ready to blow. IMO
.065 x .0698 now !!!!!!!
why is stock going up ????
ADLR insiders buying !!!!
look at postings of filings. August buys
Guess we are dead now .
Disappointed in today's action but not giving up yet. Hoping for good things next week from earnings and conference calls !
ADLR HELD UP WELL IN DOWN MARKET TODAY.
Hopefully building a base for higher shares. Numbers released before market 7/28. Let's hope they beat the street.
disappointed. new business direction sounded promising. Tried to get current share structure but they are remaining mum until SEC completes criminal and civil suits , if any. I look for the principals to continue their plan if RLAB does not suffer a huge fine and penalties for Doug's supposed actions. I hope for the sake of the shareholders they resolve things sooner rather than later.
http://www.courthousenews.com/2011/07/01/Kickbacks.pdf
Douglas Newton, 66, of Rancho Mirage, CA, was charged with one count of conspiracy to commit securities fraud in connection with a scheme to defraud the investing public by engaging in deceptive and manipulative trading practices in connection with Real American Brands, Inc. stock. Newton was the President of Real American Brands, Inc. Newton is charged with engaging in a “pay-to-play” scheme to cause a pension fund fiduciary to purchase Real American Brands, Inc. stock in return for a kickback payment. Newton faces up to 5 years in prison, three years of supervised release and substantial monetary fines.
Waiting on news . With no preferred shares and few common shares available we are still a good value. IMO We have patents and trademarks and other assets. With any news it could move. Someone accumulating here a little.
Oh yeah.. back to old symbol RLAB. I asked that board be moved to that location.
Nothing to be done and no Pr's issued until they resolve the SEC case. Hopefully the RLABD shareholders will not be punished for one person's actions. Time will tell. At least we have shares and they are trading finally.
bid .0004 no ask ?? does that mean no one is selling ?
etrade got me my shares today. They are not worth much . lol
Shares should be coming in week or less
my inquiry on shares ...
Dear Mr. D,
Thank you for your message regarding the RLAB shares in your brokerage account .
We have not yet received the new shares of RLAB from the company. Once the shares are received, your account will be updated. In the meantime, if you would like to sell the stock and are unable to do so online, please contact us at the number listed below and a broker will assist you by placing the order in your account.
Sincerely,
Quinton Green
Monday - Friday 8:30a.m. -5p.m. est.
1-800-ETRADE-1 (1-800-387-2331)
Sr. Financial Service Representative
E*TRADE Securities, LLC
Should reach $5.00 IMO !
MY response from RLABD..Not good. read further ...
7/1/2011
"Given the news concerning the SEC action against Doug Newton and Real American Capital Corporation in relation to a transaction that took place long before the current plans were being undertaken, we must regrettably postpone iour plans to reorganize, restructure and pursue a new business plan for the company. The new principals had been alerted to this inquiry, but were caught off-guard because it did not appear to be targeting the company itself, and further because it did not appear to be a problematic transaction. The current principals are not expressing any opinion on the matter itself because it precedes their involvement. While all the new principals remain desirous of engaging in this business, until there is some kind of indication from the SEC that no punitive action will be taken against the company, all such prospective new principals feel that it is advisable to not take any action which may be deemed contrary to SEC goals and actions."
Howard Salamon
Remember guys this sounds bad But the current members of the RLABD team had nothing to do with Mr Newton's proposed illegal activities since this happened in 2009 well before they became involved. Let's hope we can recoup losses one day.
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
CASE NO.
SECURITIES AND )
EXCHANGE COMMISSION, )
)
Plaintiff, )
v. )
)
DOUGLAS NEWTON and )
REAL AMERICAN BRANDS, INC. ) n/k/a REAL AMERICAN CAPITAL CORP.,)
)
Defendants. )
)
COMPLAINT
Plaintiff Securities and Exchange Commission alleges as follows:
I.
1. From at least March through April 2009, Defendants Douglas Newton and Real American Brands, Inc. n/k/a Real American Capital Corp. engaged in a fraudulent scheme involving the company’s stock. The fraud scheme involved illicit kickbacks and phony agreements to mask those kickbacks.
INTRODUCTION
2. Newton, the CEO and president of Real American Brands, paid illegal kickbacks to a purported trustee of an employee pension fund so the trustee would purchase over 6.2 million restricted shares of the company’s stock. Real American Brands also issued shares of its stock as compensation to a middleman who introduced them to the purported pension fund trustee.
3. Unbeknownst to the Defendants, the corrupt pension fund trustee was a creation of the FBI. The pension fund’s purported friend who helped arrange the deals Case 0:11-cv-61455-XXXX Document 1 Entered on FLSD Docket 06/30/2011 Page 1 of 10
-2-
was an undercover FBI agent, and the middleman was a witness cooperating with the FBI.
4. The Defendants attempted to conceal the kickbacks by entering into a sham consulting agreement between three entities: Real American Brands; Billy Martin’s USA, Inc. – an entity affiliated with Real American Brands; and a bogus consulting company purportedly created to receive the kickbacks.
5. As a result of the conduct described in this Complaint, the Defendants violated Section 17(a) of the Securities Act of 1933 (“Securities Act”), 15 U.S.C. § 77q(a); and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934 (“Exchange Act”), 15 U.S.C. § 78j(b) and 17 C.F.R. § 240.10b-5. Unless restrained and enjoined, they are reasonably likely to continue to violate the federal securities laws.
6. The Commission respectfully requests that the Court enter: (a) a permanent injunction restraining and enjoining the Defendants from violating the federal securities laws; (b) an order directing the Defendants to pay disgorgement with prejudgment interest; (c) an order directing the Defendants to pay civil money penalties; and (d) an order barring Newton from participating in any offering of a penny stock.
II.
7. Newton is the CEO of Real American Brands. He resides in Rancho Mirage, California.
DEFENDANTS
8. Real American Brands is a Delaware corporation with its principal place of business in Rancho Mirage, California. It purports to be the owner of American retail and wholesale brands and related registered US trademarks for, among other things, apparel, jewelry, home décor, and accessories and operates retail stores. During the Case 0:11-cv-61455-XXXX Document 1 Entered on FLSD Docket 06/30/2011 Page 2 of 10
-3-
relevant time period, its common stock was quoted on OTC Link operated by OTC Markets Group, Inc. under the symbol “RLAB.” Its securities have never been registered with the Commission.
9. Real American Brands’ stock is a “penny stock” as defined by the Exchange Act. At all times relevant to this Complaint, the stock’s shares traded at less than $1 per share. During the same time period, Real American Brands’ stock did not meet any of the exceptions to penny stock classification pursuant to Section 3(a)(51) and Rule 3a51-1 of the Exchange Act. For example, the company’s stock: (a) did not trade on a national securities exchange; (b) was not an “NMS stock,” as defined in 17 C.F.R. § 242.600(b)(47); (c) did not have net tangible assets (i.e., total assets less intangible assets and liabilities) in excess of $5,000,000; and (d) did not have average revenue of at least $6,000,000 for the last three years. See Exchange Act, Rule 3a51-1(g).
III.
10. The Court has jurisdiction over this action pursuant to Sections 20(d) and 22(a) of the Securities Act, 15 U.S.C. §§ 77t(d) and 77v(a); and Sections 21(d) and 27 of the Exchange Act, 15 U.S.C. §§ 78u(d) and 78aa.
JURISDICTION AND VENUE
11. This Court has personal jurisdiction over the Defendants, and venue is proper in the Southern District of Florida, because many of the Defendants’ acts and transactions constituting violations of the Securities Act and the Exchange Act occurred in the District. For example, Newton met with the cooperating witness and the agent on March 24, 2009 in Broward County to finalize the scheme. In connection with the scheme, Newton met again with the agent on April 28 in Coral Springs. Additionally, on March 25, the Defendants sent a kickback via express delivery to the agent in Coral Case 0:11-cv-61455-XXXX Document 1 Entered on FLSD Docket 06/30/2011 Page 3 of 10
-4-
Springs, Florida. On April 8, they sent a kickback and a second subscription agreement to the same location.
12. The Defendants, directly or indirectly, made use of the means or instruments of transportation or communication in interstate commerce, or of a means or instrumentality of interstate commerce, or of the mails, in connection with the conduct alleged in this Complaint.
IV.
13. On March 24, 2009, following several telephone conversations with the cooperating witness, Newton met with the cooperating witness and the agent, who posed as a corrupt trustee of an employee pension fund, in Broward County, Florida to finalize a fraudulent scheme involving Real American Brands stock.
THE FRAUDULENT SCHEME
14. As part of the scheme, the parties agreed the pension fund would purchase $20,000 worth of Real American Brands stock in exchange for a 30 percent kickback by Newton and Real American Brands to the pension fund trustee. In addition, Newton and Real American Brands agreed the cooperating witness, as a middleman, would receive shares of the company’s stock for introducing the parties to the deal.
15. To conceal the kickback, Newton and Real American Brands agreed to pay a kickback to a bogus consulting company, and they planned to enter into a phony consulting agreement. They understood the bogus consulting company would not be performing any actual consulting services.
A.
16. On March 24, 2009, pursuant to a subscription agreement between the pension fund and Real American Brands, the pension fund agreed to purchase 4 million
The First Restricted Stock Transaction and Kickback
Case 0:11-cv-61455-XXXX Document 1 Entered on FLSD Docket 06/30/2011 Page 4 of 10
-5-
restricted shares of Real American Brands stock for $20,000.
17. On the same day, the bogus consulting company, Real American Brands, and Billy Martin’s USA entered into a sham consulting agreement.
18. On March 25, 2009, the FBI wired $20,000 to Billy Martin’s USA’s bank account. Billy Martin’s USA then sent a $6,000 kickback in the form of a cashier’s check to the bogus consulting company.
19. On March 30, 2009, Real American Brands issued a stock certificate to the pension fund for 4 million restricted shares. On the same day, Real American Brands completed the deal by sending a stock certificate to the cooperating witness for 1 million restricted shares.
B.
20. Shortly after completing the first transaction, the parties agreed to do another restricted stock deal. On April 7, 2009, Newton left a message for the agent, stating that Real American Brands’ “stock is around 006 or 007. My goal is to get it up; my goal is to get it up to 1 or 2 cents.”
The Second Restricted Stock Transaction and Kickback
21. That day, pursuant to a second subscription agreement, the pension fund agreed to purchase 2,222,222 restricted shares of Real American Brands stock for $20,000.
22. The next day, the FBI wired $20,000 to Billy Martin USA’s bank account. Real American Brands then issued the stock certificate to the pension fund, and Billy Martin’s USA issued a $6,000 kickback via certified check to the bogus consulting company. Case 0:11-cv-61455-XXXX Document 1 Entered on FLSD Docket 06/30/2011 Page 5 of 10
-6-
23. On April 13, 2009, Real American Brands sent the cooperating witness a restricted stock certificate dated March 26 along with an e-mail stating he wanted the cooperating witness’s company “to have additional stock incentive and ownership in [Real American Brands], based on [the cooperating witness’s] contributions…to the continued growth and implementation of [Real American Brands’] new business plan.”
24. Newton, acting as president of Real American Brands, executed the stock certificates issued to the pension fund and the cooperating witness.
Fraud In Violation of Section 17(a)(1) of the Securities Act
COUNT I
25. The Commission realleges and incorporates paragraphs 1 through 24 of this Complaint.
26. From March through April 2009, the Defendants, directly and indirectly, by use of the means or instruments of transportation or communication in interstate commerce and by use of the mails, in the offer or sale of securities, as described in this Complaint, knowingly, willfully or recklessly employed devices, schemes or artifices to defraud.
27. By reason of the foregoing, the Defendants, directly and indirectly, violated and, unless enjoined, are reasonably likely to continue to violate, Section 17(a)(l) of the Securities Act, 15 U.S.C. § 77q(a).
Fraud in Violation of Sections 17(a)(2) and 17(a)(3) of the Securities Act
COUNT II
28. The Commission realleges and incorporates paragraphs 1 through 24 of this Complaint.
Case 0:11-cv-61455-XXXX Document 1 Entered on FLSD Docket 06/30/2011 Page 6 of 10
-7-
29. From March through April 2009, the Defendants, directly and indirectly, by use of the means or instruments of transportation or communication in interstate commerce and by the use of the mails, in the offer or sale of securities, as described in this Complaint:
(a) obtained money or property by means of untrue statements of material facts or omissions to state material facts necessary to make the statements made, in the light of the circumstances under which they were made, not misleading; or
(b) engaged in transactions, practices, or courses of business which operated or would have operated as a fraud or deceit upon purchasers or prospective purchasers of such securities.
30. By reason of the foregoing, the Defendants, directly and indirectly, violated and, unless enjoined, are reasonably likely to continue to violate Sections 17(a)(2) and 17(a)(3) of the Securities Act, 15 U.S.C. §§ 77q(a)(2) and 77q(a)(3).
COUNT III
Fraud in Violation of Section 10(b) and Rule 10b-5 of the Exchange Act
31. The Commission realleges and incorporates paragraphs 1 through 24 of this Complaint.
32. From March through April 2009, the Defendants, directly and indirectly, by use of any means or instrumentality of interstate commerce, or of the mails, in connection with the purchase or sale of securities, knowingly, willfully or recklessly:
(a) employed devices, schemes, or artifices to defraud; Case 0:11-cv-61455-XXXX Document 1 Entered on FLSD Docket 06/30/2011 Page 7 of 10
-8-
(b) made untrue statements of material facts or omitted to state material facts necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or
(c) engaged in acts, practices, or courses of business which operated or would have operated as a fraud or deceit upon any person.
33. By reason of the foregoing, the Defendants, directly or indirectly, violated and, unless enjoined, are reasonably likely to continue to violate, Section 10(b) of the Exchange Act, 15 U.S.C. § 78j(b), and Rule l0b-5, 17 C.F.R. § 240.10b-5.
WHEREFORE, the Commission respectfully requests that the Court:
RELIEF REQUESTED
I.
Declare, determine, and find that the Defendants have committed the violations of the federal securities laws alleged in this Complaint.
Declaratory Relief
II.
Issue a Permanent Injunction restraining and enjoining the Defendants, their officers, agents, servants, employees, attorneys, and all persons in active concert or participation with them, and each of them, from violating Section 17(a) of the Securities Act and Section 10(b) and Rule 10b-5 of the Exchange Act, as indicated above.
Permanent Injunctive Relief
Case 0:11-cv-61455-XXXX Document 1 Entered on FLSD Docket 06/30/2011 Page 8 of 10
-9-
III.
Issue an Order directing all Defendants to disgorge all ill-gotten gains, including prejudgment interest, resulting from the acts or courses of conduct alleged in this Complaint.
Disgorgement
IV.
Issue an Order directing the Defendants to pay civil money penalties pursuant to Section 20(d) of the Securities Act, 15 U.S.C. § 77t(d), and Section 21(d) of the Exchange Act, 15 U.S.C. § 78u(d).
Penalties
V.
Issue an Order barring Newton from participating in any offering of a penny stock, pursuant to Section 20(g) of the Securities Act, 15 U.S.C. § 77t(g), and Section 21(d) of the Exchange Act, 15 U.S.C. § 78u(d), for the violations alleged in this Complaint.
Penny Stock Bar
VI.
Grant such other and further relief as may be necessary and appropriate.
Further Relief
VII.
Retention of Jurisdiction
Further, the Commission respectfully requests that the Court retain jurisdiction over this action in order to implement and carry out the terms of all orders and decrees Case 0:11-cv-61455-XXXX Document 1 Entered on FLSD Docket 06/30/2011 Page 9 of 10
-10-
that it may enter, or to entertain any suitable application or motion by the Commission for additional relief within the jurisdiction of this Court.
Respectfully submitted,
June 30, 2011 By:
s/ James M. Carlson
James M. Carlson
Senior Trial Counsel
S.D. Florida Bar # A5501534
Telephone: (305) 982-6328
Facsimile: (305) 536-4154
E-mail: CarlsonJa@sec.gov
Trisha D. Sindler
Senior Counsel
Florida Bar # 0773492
Telephone: (305) 982-6352
E-mail : FuchsT@sec.gov
ATTORNEYS FOR PLAINTIFF
SECURITIES AND EXCHANGE COMMISSION
801 Brickell Avenue, Suite 1800
Miami, Florida 33131
Telephone: (305) 982-6300
Facsimile: (305) 536-4154
Case 0:11-cv-61455-XXXX Document 1 Entered on FLSD Docket 06/30/2011 Page 10 of 10
Douglas Newton, of Rancho Mirage, Calif., the CEO of Real American Brands, Inc. n/k/a Real American Capital Corp., paid kickbacks to a purported employee pension fund trustee to buy more than 6.2 million shares of restricted Real American Brands stock. Newton attempted to conceal the kickbacks by entering into a consulting agreement with a phony company that the trustee fabricated to receive the kickbacks. However, the corrupt trustee was a fictitious person, the trustee’s business associate who helped arrange the deal was an undercover FBI agent, and the phony consulting company was actually created by the FBI.
[url]http://www.sec.gov/news/press/2011/2011-138.htm[url]
Do we get any damages as the victims ?
Three CEOs, 2 others charged in penny stock fraud
Thu Jun 30, 2011 2:45pm EDT
* CEOs charged with conspiring to manipulate stock prices
* One defendant enters plea agreement -- lawyer
By Jonathan Stempel
NEW YORK, June 30 (Reuters) - Three chief executives and two stock promoters were criminally charged with engaging in fraudulent penny stock schemes, after a probe that involved undercover FBI agents, federal investigators said on Thursday.
The U.S. Department of Justice said the executives charged include Donald Klein, 40, of KCM Holdings Corp (KCMH.PK); Douglas Newton, 66, of Real American Capital Corp (RLABD.PK); and Thomas Schroepfer, 54, of Smokefree Innotec Inc (SFIO.PK).
Also charged were Charles Fuentes, 66, accused of promoting Smokefree stock; and Brian Gibson, 63, accused of promoting stock of Xtreme Motorsports International Inc (XTMM.PK).
Each defendant was charged with conspiracy to defraud the investing public and faces a maximum of five years in prison plus fines.
The U.S. Securities and Exchange Commission also filed civil fraud charges against the defendants. The charges were brought in the U.S. District Court for the Southern District of Florida.
Investigators said the defendants manipulated the shares of thinly-traded companies that traded on the Pink Sheets.
Most of the schemes involved kickbacks to a purportedly corrupt pension fund or a broker who agreed to buy shares, while Gibson's scheme involved the alleged creation of a fake website to tout Xtreme stock, the SEC said.
According to the SEC, one example of FBI involvement was when an agent, posing as a corrupt pension fund trustee, met with Newton and agreed to buy Real American stock in exchange for a 30 percent kickback.
A day later, the FBI wired funds to Real American's Billy Martin's USA affiliate, which then issued a check to a bogus consulting firm set up to conceal the kickback, the SEC said.
"Investors deserve better than secret investment strategies based on kickbacks and bribes," SEC enforcement chief Robert Khuzami said in a statement. "These CEOs got more than they bargained for but exactly what they deserved."
Jeffrey Cox, a lawyer for Klein, said his client entered a plea agreement in his criminal case. The other defendants' lawyers were not immediately available to comment on their behalf. (Reporting by Jonathan Stempel, editing by Gerald E. McCormick)
The split had already taken place, but I am not sure how I missed
it. The price had been .0004, but the 20-1 reverse brought it up to .008,
which is where it is currently at.
I still have no shares at etrade. Just a number.
The D on the end of it is
something FINRA does to note a corporate change. It's kept for around 20
business days, which I think takes us to July 19th, depending on when the
clock started ticking on that. Then back to RLAB.
no preferred stock means common stock is worth more especially with fewer shares among 1000 shareholders. Plus free shares in other companies we help go public would be worth something hopefully,
Of course this could be business as usual and a complete sham.
Buyer Beware. There is a public interest concern associated with the company, which may include a spam campaign, questionable stock promotion, known investigation of fraudulent activity committed by the company or insiders, regulatory suspensions, or disruptive corporate actions. During the time it is labeled Caveat Emptor, any stock that is not in the Current Information category will also have its quotes blocked on otcmarkets.com.
yes but when will we start trading and how long till we see shares ??? This is taking much longer than other splits I have been involved in. Any ideas ?
anyone get shares yet ? hopefully tomorrow and news too