American Green Inc (ERBB)

[TStarr]

SOUNDS LIKE A COMPANY YOU CANNOT TRUST

This ticker under than name "Desert Winds Entertainment Corp"

Government documents show that Desert Winds was charged with announcing a $25m deal with Warner Bros. when "no such contract existed." It's suspected that numerous insiders sold shares of Desert Winds when the stock rose based on the news of the Warner Bros. deal, and the SEC cracked down on Paloma and another Desert Winds associate Matthew Bardasian.

SEC INDICTED


http://www.theregister.co.uk/Print/2004/09/27/sunncomm_death_or_glorry/

This ticker under the name "SunnComm" sold an XPC named MediaMax that was actually found to be spyware.

"For Jacobs, SunnComm's major mission was to transform into a clean, smooth-running business. He wanted to clear the company's name with the SEC and move from the so-called "pink sheets" to getting listed on a national trading market such as the Nasdaq." - Haven't we heard that before lmfao.

"This firm's past goes back to the 1920s, when it started operations as an oil and gas exploration concern. The company stumbled along all the way until 2001 when it sold off all of its oil and gas assets for a mere $75,777 and acquired of all things a 3.5 inch floppy disk manufacturing firm. Fan Energy valued its disk manufacturing assets at $3.8m, although it never actually produced a disk and the equipment currently sits unused in a warehouse, according to SEC filings. This outcome isn't terribly surprising if you think back to the status of the floppy disk market in 2001. The technology had already been rapidly replaced by smaller disks and was facing CDs as the medium of choice for most PCs.

In a deal best described as unorthodox, Fan Energy agreed to acquire SunnComm's Project 1000 DRM technology for 23.8m shares of its stock. As it turns out, that gave Project 1000 - then a SunnComm subsidiary - the majority ownership (53 percent) of Fan Energy - the very company meant to be acquiring Project 1000. At this point, Fan Energy changes its name to Quiet Tiger and enters the DRM market.

There is where the shareholders get real angry, and things become rather complex."

"A complaint allegedly sent to the SEC charges that Fan Energy/Quiet Tiger misrepresented the value of its assets - the $3.8m in floppy disk gear. There's no record that a single disk was ever produced, although Fan Energy does appear to have done one deal as a type of floppy disk reseller, generating only $4,000."

""It is without doubt that Fan Energy (now Quiet Tiger) had no serious business plan to manufacture floppy disks and the equipment was acquired for no other reason than to place an asset in their balance sheet that they could use to bolster the value of the company by misrepresenting its true value," the complaint states. "Additionally, SunnComm fortified the deception by stating they were committing to using 50 percent of the capacity and in turn caused its own shareholders to be deceived in regards to the true intrinsic value of the shares they were to receive as a property dividend."

Fan Energy's description of its floppy disk business is certainly questionable. In various filings, the company suggests that it could be a major player in a multi-billion dollar market and churn out as many as 6m disks per month. Given that the company never actually produced a single disk and that it admits at times to having no employees, it seems the investors have a point about Fan Energy not being a serious floppy disk contender.

Jacobs, however, insists that Fan Energy was intent on being a real technology company and was just searching for its niche. As soon as SunnComm/Project 1000 took control of Fan Energy, it wrote down the $3.8m in floppy disk assets to just $100,000."

"In 2000, it announced a $20m agreement to provide a Taiwanese CD-maker called Will-Shown with its DRM technology. Here, the disgruntled types charge that SunnComm made the arrangement sound like a done deal - a move that inflated SunnComm's value in the public eye. SunnComm, despite having almost no revenue, would later pull out of the lucrative contract, saying it wanted to focus on the "domestic market" first before expanding overseas - a rationale that doesn't sit well with its critics."

"Another deal that has some concerned was a licensing arrangement between SunnComm and Dstage. The press release for this deal reads, "SunnComm, Inc. (OTC:SUNX), a leader in digital content security for optical media, today announced that it has licensed its Proprietary Copy Management Technology to Dstage.com, Inc. (OTCBB:DSTG) for a one-time fee of $4,000,000."

This statement makes the $4m sound like a cash pay out, but, in actual fact, SunnComm received shares of Dstage - a low volume, penny stock. SunnComm would later reveal this in another statement.

While SunnComm seems to have a dubious flair for aggressive language in its press releases, this deal again checks out with Jacobs' overall strategy of returning value to SunnComm shareholders. They received a piece of Dstage as a dividend - small dividend as it may be."

"To this day, Jacobs believes that that vast majority of large SunnComm shareholders have only benefitted from his actions, unorthodox as they might seem. He accused the angry mob of Internet posters as trying to short SunnComm's stock and take the company down for any number of reasons."

"In November 2005, the Attorney General’s Consumer Protection Division brought the first lawsuit ever filed under the Texas Consumer Protection Spyware Act after learning that so-called XCP and MediaMax technologies violated Texas' consumer protection laws. Further investigation revealed that the software embedded on some Sony BMG CDs could damage consumers’ computers and create security vulnerabilities. The State’s lawsuit also claimed that Sony BMG violated the Deceptive Trade Practices Act."

https://www.texasattorneygeneral.gov/oagnews/release.php?id=1889

SPYWARE LAWSUIT


http://www.theregister.co.uk/Print/2004/09/27/sunncomm_death_or_glorry/

https://www.techdirt.com/articles/20040927/1454242.shtml