WNTR - Here is how Frank Kristan operated his scam on WNTR shareholders
On April 8, 2013, after Frank Kristan was no longer able to get any move value out of his previous dilution scam, SAVW, using old debt Notes he held against SAVW (largely thanks to an SEC suspension against SAVW in September of 2012), Frank Kristan decided to acquire control of WNTR for an undisclosed amount of cash.
Some will argue that Kristan stopped being involved in SAVW after Isaac Sutton took over but the fact is that it was debt owed to Kristan that was used to issued billions of shares of free trading SAVW stock and it was those billions of shares of free trading stocks that killed the SAVW share price. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=67652444
After taking over WNTR, Frank Kristan immediately worked out an agreement for WNTR to acquire "assets" from himself through his company Ludvig Holdings Inc.
Those "assets" were acquired by WNTR from Frank Kristan with 154,125,870 common shares, 5,000,000 shares Series A Preferred shares, and $650,000 in cash that the WNTR shell didn't have.
When you take the value of the stock based on the market price of the stock on that date plus the $650,000 it amounted to a purchase price of $21,062,585.
Are the assets really worth that much? Absolutely not.
Can they be listed as assets worth $21,062,585 on the WNTR balance sheet? Absolutely not. The value of assets isn't determined by the price paid for them in stock. Accounting doesn't work that way and if WNTR was a fully reporting SEC company they wouldn't get away with doing this. Since OTC filings are not regulated they get away with it.
WNTR didn't have $650,000 cash so WNTR borrowed the money from a Toxic Lender located in the Cayman Islands run by Robert Press called TCA Global Credit Master Fund on July 1, 2013. Robert Press used to run a boiler-room brokerage called PCM Securities Ltd that did deals for the mob back in the late 1990s. Eventually More than 50 people connected to PCM and three other firms – Hanover Sterling & Co., Norfolk Securities Corp. and Capital Planning Associates Inc. — either pleaded guilty or were found guilty of racketeering or fraud charges. Robert Press then moved on to Cornell Capital Partners (Toxic Funding family of companies) as Mark Angelo's right hand man later spinning off TCA Global.
So Frank Kristan made out with $650,000 cash in his pocket and TCA Global made out with a $650,000 debt Note
That $650,000 debt Note
would end up immediately being reassigned to an unnamed anonymous third party and would become the focal point of the WNTR insider enrichment scheme.
At this time WNTR traded at $.20/share.
During the 3 months ending September of 2013, this anonymous third party began converting that $650,000 debt Note into free trading stock at $.001/share. 37,000,000 free trading shares were issued towards the $650,000 debt Note at $.001/share between July 1, 2013 - September 30, 2013
and they started being sold into the market immediately bleeding the WNTR share price down from $.20/share to as low as $.0022/share.
WNTR did 12 press releases during this stretch to bring in buyers to acquire the shares that anonymous third party was dumping. Those press releases included:
- a promise to shareholders for the acquisition of 2 apartment complexes in New York that never happened
- financing from Kodiak Capital that never happened
- claims of assets of over $50 million that didn't really exist
- a promise to shareholders for the acquisition of a resort in Bali that never happened
- promises of oil and gas assets, health care assets, solar power assets, portfolio assets, cellular assets - all that didn't exist or were grossly exaggerated
Between October 1, 2013 and December 31, 2013, WNTR issued another 149,500,000 free trading shares to that anonymous third party towards that $650,000 debt Note at $.001/share
to dump into the market.
Thanks to 12 more press releases including promises about acquisitions of a text messaging company, more solar power assets, natural gas assets, medical device assets, an employee leasing company, and a cyber security company.
At this point the press releases and broken promises are beyond ridiculous but people continue to buy the shares from the anonymous third party.
The price fluctuated between $.0014 and $.011 during this 3 month period.
Between January 1, 2014 - March 31, 2014, another 60,000,000 free trading shares were issued to the anonymous third party at $.001/share
to dump into the market.
To support the dumping of the anonymous third party shares, between January 1, 2014 - March 31, 2014, WNTR issued another 19 press releases including promises about acquisitions of more healthcare assets, more natural gas assets, more internet technology assets, Real Estate assets, and an entry into the very popular cannabis market (at this time) with new pot related assets. WNTR also promised it had a $30 million funding commitment which never happened.
The price fluctuated between $.0018 and $.014 during this 3 month period.
Between March 30, 2014 - June 30, 2014, another 63,346,966 free trading shares were issued to the anonymous third party at $.001/share towards that $650,000 debt Note
to dump into the market.
To support the dumping of the anonymous third party shares, between March 30, 2014 - June 30, 2014, WNTR issued another 22 press releases including updates on old asset acquisition promises, more assets in the oil industry, Real Estate, and internet related technologies, and the expansion into new industries like stock trading programs, entertainment & media, hydro pharms, and advertising. WNTR also began to promise dividends in spin-off companies very similar to what SAVW did to its shareholders before getting suspended.
The price started at $.011 then slowly faded to the low $.004s during this 3 month stretch.
During this time WNTR raised its authorized share count from 500,000,000 to 2,100,000,000 to make room for the new shares.
Between July 1, 2014 - September 30, 2014, another 350,000,000 free trading shares were issued to the anonymous third party at $.001/share towards that $650,000 debt Note
to dump into the market. This finished satisfying that $650,000 debt Note. All total the anonymous third party received 659,846,966 free trading shares at $.001/share for that $650,000 debt Note. If those 659,846,966 free trading shares were all sold at an average of $.0042/share (which is a conservative estimate), that anonymous third party would have made over $2,000,000 in profits from the debt Note. Wouldn't you love to know who that anonymous third party was, what their relationship is to Frank Kristan, and if any of that money got kicked back to Frank Kristan? I know I would.
Between July 1, 2014 - September 30, 2014, WNTR also issued 45,000,000 free trading shares to an unnamed anonymous third party for services they provided in 2013.
Researching the Florida County Civil Records shows that AGS Capital Group LLC and GMS Fund Management LLC (each represented by attorney Laura Anthony and each a Toxic lender) both had suits against WNTR in the Miami-Dade County court during this time.
Those 45,000,000 free trading shares plus the 350,000,000 free trading shares issued to the anonymous third party were dumped between July 1, 2014 - September 30, 2014 with the support of 12 more press releases including all the usual promises and a new Walmart name drop.
The WNTR share price faded to as low as $.0011/share during this 3 month period.
By September 30, 2014, the outstanding share count had grown to 1,456,980,289 shares. Since Frank Kristan took over in April of 2013 up until September 30, 2014, the float had grown from under 2,000,000 to nearly 800,000,000 in less than a year and a half.
Since Frank Kristan took over in April of 2013 up until September 30, 2014, the WNTR share price had dropped from $.20/share to $.0011/share in less than a year and a half.
WNTR still has $80,000 in convertible debt on the books and who knows when they'll be issuing more free trading shares for past services provided again like they have done a few times in the past.
The next annual report will no doubt show that the float has continued to grow as the recent price action suggests. To support the latest round of dumping Frank Kristan came up with more exaggerated/fake multimillion assets which he valued based on the amount of stock issued for the assets (not how accounting works). And this time he even created an imaginary fake auditing company to support his claims.
The main part of the insider enrichment scam carried out through the $650,000 debt Note is over, but WNTR will no doubt continue to look for toxic financing and find other ways to dilute shares in the future while continuing to issue a string of press releases about new fake multimillion assets, dividends, spinoffs, and uplistings that will never happen.
The price will continue to slowly fade to $.0001/share with some flip opportunities along the way.