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STEVEN52 Saturday, 09/21/13 01:59:55 PM
Re: downtowndentalclinic post# 32668
Post # of 44939
The following is part of an SEC complaint, filed by a GYST shareholder, requesting an investigation on possible insider trading violations, manipulation of share (security) prices and possible fraudulent investment scheme effectuated on investors by the Graystone Company Inc (GYST). The company used fraudulent advertising and misleading press releases (PR) to con investors into buying its securities for almost a year, up until May, 2013, the company executives fraudulently pumped up the price of its securities to entice and commit fraud on investors. Please review the following samples of their fraudulent advertising and press releases:
GYST News: Graystone Company Announces Company Expansion Of Suriname Operations
06/17/2013 09:00:00 AM
GYST News: Graystone Company Announces Corporate Update
06/05/2013 09:25:00 AM
GYST News: Graystone Company Announces Suriname Venture Has Processed 200 Tons of Material
05/21/2013 09:00:00 AM
GYST News: Graystone Company Announces It Is On Track To Double Production in Peru
05/20/2013 09:00:00 AM
GYST News: Graystone Company Announces Suriname Update


On their website, they continue to market their shares by posting false and misleading information. For example, they continue to say that as of January 2013, the company has “according to the S1 filing, the current outstanding share count is 381,221,678.
As of August 28, the current outstanding share count is 2.1 billion.
Additionally, the company executives engaged in insider trading practices by selling large amounts of shares just prior to significant decreases in share prices. The company engages in such fraudulent activities by selling off/converting/cancelling loans to associates by exchanging large amounts (blocks) of shares for loans outstanding. On August 27, the company announced that the wife of Paul Howarth, the company’s CEO, had acquired ownership of a large block of securities. The company filed a statement of beneficial change of ownership by allegedly transferring large blocks of shares to Paul Howarth’s wife. The company is asserting that Howarth’s wife is a managing partner in Renard Properties, a company that allegedly loaned GYST a large amount of money. This action appears to be manipulative and highly suspicious.
Explanation of Responses:
( 1) These shares are owned by Renard Properties, LLC. Mr. Howarth does not own or manage any part of Renard Properties, LLC. This statement is fraudulent. In their most recent quarterly financial report in early August, the company asserts the exact opposite. “During the Six Months ended June 30, 2013, $93,750 was recorded to related party payables from amounts paid on behalf of the Company by Renard Properties, for accrued salaries and consulting fees. $79,568 was repaid against these payables resulting in an ending balance of $79,628. Paul Howarth, our CEO, is the managing member of Renard Properties.”

In the statement of change of ownership for securities, Howarth misleading says that he is not part of the ownership of Renard Properties. However, Mr. Howarth's wife is the managing partner of Renard Properties, LLC and thereby pursuant to Rule 13-d3 Mr. Howarth is deemed to be a beneficial owner of Renard Properties and based on application of Rule 13-d3 needs to report the transactions and holdings involving Renard under his name even though he does not own or manage Renard or have any power to do business in Renard's name.
( 2) These shares are owned by Mr. Howarth's wife. Mr. Howarth does not own or have any power to dispose of these shares. However, pursuant to Rule 13-d3 Mr. Howarth is deemed to be a beneficial owner of this shares and as such needs to report these shares based on application of Rule 13-d3,under his name even though he does not own or have the right to dispose of these shares.

Also, to circumvent SEC regulations, the company filed a statement of beneficial change of ownership on the same day, asserting that large amounts of shares were owned by family members and other associates of Joseph Mazey, the company’s CFO. Joseph Mazey is also identified in company documents as Joseph Wade. This perhaps is to mislead the SEC. These shares allegedly were owned by Mazey, and ownership subsequently transferred.

Explanation of Responses:
( 1) These shares are owned by officers Company in which he owns 100% of and has the sole power to vote and dispose of this (sic) shares.
( 2) These shares are owed by officers family and through Rule 13-d3 officer has decided to disclose this shares as they could be determined to be beneficially owned by officer through the application of Rule 13-d3

In early August, 2013, GYST filed its most recent quarterly report in which it was revealed that the company engages in highly suspicious accounting practices to hide or conceal insider trading and fraud.

The following statements by GYST on Related Party Transaction appear to indicate intent to defraud investors by accepting loans from associates and cancelling same for large blocks of securities, which resulted in the deflation of the value of the securities.

On March 8, 2013, the Company issued 31,500,000 of our Class A Common Stock to Renard Properties for services rendered. The price per shares $.003 for $94,500 in bonus payment for achieving pre-determined mining goals. Paul Howarth, our CEO, is the managing member of Renard Properties.

On March 8, 2013, the Company issued 31,500,000 of our Class A Common Stock to Joseph Wade for services rendered. The price per shares $.003 for $94,500 in bonus payment for achieving pre-determined mining goals.

On March 18, 2013, the Company issued 5,000,000 of our Class A Common Stock to Joseph Wade for services rendered. The price per shares $.0028 for $14,000 in bonus payment for achieving pre-determined mining goals.

On March 18, 2013, the Company issued 5,000,000 of our Class A Common Stock to Paul Howarth for services rendered. The price per shares $.0028 for $14,000 in bonus payment for achieving pre-determined mining goals.

On June 19, 2013, the Company issued 187,500,000of our Class A Common Stock to Paul Howarth for $45,000 in debt. The price per share was $.0008. The shares are restricted for 24 months from the issuance. A loss of $105,000 was recorded on the issuance.

On June 19, 2013, the Company issued 187,500,000of our Class A Common Stock to Joseph Wade for $45,000 in debt. The price per share was $.0008. The shares are restricted for 24 months from the issuance. A loss of $105,000 was recorded on the issuance.


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During the Six Months ended June 30, 2013, $93,750 was recorded to related party payables from amounts paid on behalf of the Company by Renard Properties, for accrued salaries and consulting fees. $79,568 was repaid against these payables resulting in an ending balance of $79,628. Paul Howarth, our CEO, is the managing member of Renard Properties.

During the Six Months ended June 30, 2013, $93,750 was recorded to related party payables from amounts paid on behalf of the Company by JW Group, for accrued salaries and consulting fees. $55,000 was repaid against these payables resulting in an ending balance of $41,271. Joseph Wade, our CFO, is the President of JW Group

During the Six Months ended June 30, 2013, the Company borrowed $67,880 in cash from Renard Properties and repaid $31,606 in cash leaving a balance of $112,950 owed to Renard Properties. Paul Howarth, our CEO, is the managing member of Renard Properties. These loans bear no interest and are due in December 2013.

During the Six Months ended June 30, 2013, the Company borrowed $45,319 in cash from JW Group and repaid $47,963 in cash leaving a balance of $3,589 owed to JW Group. Joseph Wade, our CFO, is the President of JW Group. These loans bear no interest and are due in December 2013.