Seafarer Exploration Corp (SFRX)

[hedge_fun]

I meant to post the Defendant's Response to.....

The Motion to Quash. It addresses some myths. I also assume this RESPONSE is why SFRX filed the Motion for Contempt. These guys didn't expect this.

I am also going to post something of interest I just saw as I was putting this together.

DEFENDANT’S RESPONSE IN OPPOSITION TO PLAINTIFF’S MOTION TO QUASH SUBPOENA DUCES TECUM AND MOTION FOR PROTECTIVE ORDER AND DEFENDANTS EJECTION OF PLAINITFFS CLAIM THAT DEFENDANT HAS ADMITTED LIABILITY IN THIS CASE

Defendant, $17MM Man, (edited) Pro Se, files this Response in Opposition to Plaintiff’s Motion to Quash Subpoena Duces Tecum and Motion for Protective Order, and states as follows:

1. Plaintiffs Motion to Quash is just one more example of Plaintiffs mantra - “better late than never”. Only this time late is not better than never.

2. Plaintiff’s motion is based upon Rule 1.410(c), F.R.C.P. The foregoing rule relied upon by Plaintiff is not relevant to the issues relating to the non-party subpoena issued to Cleartrust LLC. (“Cleartrust”), pursuant to Rule 1.351(b), F.R.C.P.

3. Before I served Cleartrust, a non-party, with a Subpoena Duces Tecum, I fully complied with Rule 1.351(b), F.R.C.P., which states:

(b) Procedure. A party desiring production under this rule shall serve notice as provided in rule 1.080 on every other party of the intent to serve a subpoena under this rule at least 10 days before the subpoena is issued if service is by delivery and 15 days before the subpoena is issued if the service is by mail or email. The proposed subpoena shall be attached to the notice and shall state the time, place, and method for production of the documents or things, and the name and address of the person who is to produce the documents or things, if known, and if not known, a general description sufficient to identify the person or the particular class or group to which the person belongs; shall include a designation of the items to be produced; and shall state that the person who will be asked to produce the documents or things has the right to object to the production under this rule and that the person will not be required to surrender the documents or things. A copy of the notice and proposed subpoena shall not be furnished to the person upon whom the subpoena is to be served. If any party serves an objection to production under this rule within 10 days of service of the notice, the documents or things shall not be produced pending resolution of the objection in accordance with subdivision (d).

3. On April 18, 2015, I served Craig Huffman, Plaintiff’s counsel, with a Notice of Production from Non-party, which included a copy of the proposed Subpoena to Cleartrust. A copy of the Notice is attached hereto as Exhibit “A”.

4. After waiting more than 15 days (I actually waiting 24 days) after service on Plaintiff, on May 12, 2015, the Clerk of Court issued the Cleartrust subpoena, which was finally served on Cleartrust LLC on July 8, 2015.

5. Pursuant to Rule 1.351(b), Plaintiff had 15 days within which to object to the Cleartrust subpoena. Plaintiff waived its right to object to the Cleartrust subpoena by failing to object within the 15 day period provided in the rule.

6. In fact, Plaintiff filed his “Motion to Quash” the Cleartrust subpoena almost 60 days after being served with the Notice. Plaintiff’s Motion is not timely and should be denied summarily.

7. Once Plaintiff failed to timely object to the Cleartrust Subpoena it lost standing to object. At that point only Cleartrust was in a position to object to the subpoena. Cleartrust did not file any objection to the subpoena and in fact, failed to produce the documents subpoenaed. My Motion to Compel and for Sanctions against Cleartrust will be filed separately.

7. Even if Plaintiff’s Motion was not waived by failing to comply with Rule 1.351(b), it should still be dismissed on its lack of merit.

8. Notwithstanding Plaintiff’s assertion to the contrary, I have not admitted liability in this case. The Court vacated the clerk’s default against me and on November 5, 2014, I filed my Answer and Affirmative Defenses and I filed an Amended Answer on December 17th. Many of the documents I have subpoenaed from Cleartrust go to both the issues of liability and damages.

9. As the Court is aware, one of the main issues in the case is my
contention that the Plaintiff has a longstanding practice of “pumping and dumping”. This has been done for years for the purpose of lining the pockets of family and friends of Seafarer’s CEO, Kyle Kennedy (Insiders), with hundreds of thousands of dollars (or more) at the expense of other shareholders.

10. In addition, many of the same documents I subpoenaed from Cleartrust
go to the issue of liability. The statements I posted were absolutely true. However, I need the Cleartrust documents to prove the truth of my posts.

11. All of the documents I subpoenaed from Cleartrust are relevant and
reasonably calculated to lead to admissible evidence.

12. Lastly, but perhaps most importantly, Plaintiff lacks standing to bring this Motion since they are not Cleartrust and do not represent Cleartrust, the company that was served with the Subpoena.

13. Plaintiff’s only motive in bringing their Motion to Quash is to try to prevent me from proving what the records from Cleartrust show – a deliberate and classic pump and dump scheme.

14. As noted on the Securities and Exchange Commission website, ““Pump-
and-dump” schemes involve the touting of a company’s stock(typically small, so-called “microcap” companies) through false and misleading statements to the marketplace. These false claims could be made on social media such as Facebook and Twitter, as well as on bulletin boards and chat rooms. Pump-and-dump schemes often occur on the Internet where it is common to see messages posted that urge readers to buy a stock quickly or to sell before the price goes down, or a telemarketer will call using the same sort of pitch. Often the promoters will claim to have “inside” information about an impending development or to use an “infallible” combination of economic and stock market data to pick stocks.In reality, they may be company insiders or paid promoters who stand to gain by selling their shares after the stock price is “pumped” up by the buying frenzy they create. Once these fraudsters “dump” their shares and stop hyping the stock, the price typically falls, and investors lose their money.” http://www.sec.gov/answers/pumpdump.htm

15. Paragraph 14 above describes the activity that I uncovered and is the reason that Plaintiff is trying to silence me and others.

16. The pumping and dumping is always done with family members, related
parties, or insiders. And, as admitted by the Plaintiff in its filing, the Plaintiffs scheme represents “...significant potential dilution to the Company’s current shareholders ...and, it is very possible that such dilution may significantly negatively affect the trading price of the Company’s common stock. As demonstrated by the following excerpts from Plaintiffs 10-k filings, the identity of the family member and/or inside is crucial information:

NOTE 11 – RELATED PARTY TRANSACTIONS

In January of 2014, a related party shareholder provided the
Company with a short term loan in the amount of $2,000. The
Company repaid the related party shareholder the entire $2,000
balance during the year ended December 31, 2014. The Company
did not pay any interest or fees to the related party shareholder for
providing the short term loan. In January of 2014, the Company
entered into a convertible loan agreement in the amount of $31,500
with an individual who is related to the Company’s CEO. This loan
pays interest at a rate of 6% per annum and the principle and
accrued interest was due on or before July 17, 2014. The note is
not secured and is convertible at the lender’s option into shares of
the Company’s common stock at a rate of $0.006 per share.

In February of 2014, the Company entered into an agreement with
an individual who is related to the Company’s CEO to continue
serving as a member of the Company’s Board of Directors. Under
the agreement, the Director agreed to provide various services to
the Company including making recommendations for both the
short term and the long term business strategies to be employed by
the Company, monitoring and assessing the Company's business
and to advise the Company’s Board of Directors with respect to an
appropriate business strategy on an ongoing basis, commenting on
proposed corporate decisions and identifying and evaluating
alternative courses of action, making suggestions to strengthen the Company's operations, identifying and evaluating external threats and opportunities to the Company, evaluating and making ongoing recommendations to the Board with respect for one year and may be terminated by either the Company or the Director by providing written notice to the other party. The agreement also terminates automatically upon the death, resignation or removal of the Director. Under the terms of the agreement, the Company agreed to pay the Director 2,000,000 restricted shares of its common stock at the execution of theagreement and to negotiate future compensation on a year-by-year basis. The Company also agreed to reimburse the Director for pre-approved expenses. The 2,000,000 shares are included as an
expense in consulting and contractor fees in the accompanying income statement.

In April of 2014 the Company entered into a convertible
promissory agreement in the amount of $5,005 with an individual
who is related to the Company’s CEO. This loan pays interest at
a rate of 6% per annum and the principle and accrued interest was
due on or before October 22, 2014. The note is not secured and is
convertible at the lender’s option into shares of the Company’s
common stock at a rate of $0.007 per share.

In May of 2014 the Company entered into a convertible promissory note agreement in the amount of $7,000 with an individual who is related to the Company’s CEO. This loan pays interest at a rate of 6% per
annum and the principle and accrued interest was due on or before
November 27, 2014. The note is not secured and is convertible at
the lender’s option into shares of the Company’s common stock at
a rate of $0.007 per share.

In June of 2014 an individual who is related to the Company’s CEO entered into a subscription agreement to purchase 900,000 shares of the Company’s restricted common stock at a price of $0.007 per share and the Company received proceeds of $6,300.

NOTE 11 – RELATED PARTY TRANSACTIONS , continued

On various dates in April, May and June of 2014 a related party
investor converted the principal balance plus accrued interest of
three convertible promissory notes and the accrued interest of three
separate promissory notes into 4,492,150 shares of the Company’s
common stock.

On various dates in August and September of 2014 a related
party investor converted the principal balances totaling $40,000
plus the accrued interest of two convertible promissory notes into
5,125,000 shares of the Company’s common stock.

In July of 2014 the Company entered into a convertible promissory
note agreement in the amount of $17,000 with an individual who
is related to the Company’s CEO. This loan pays interest at a
rate of 6% per annum and the principle and accrued interest are
due on or before January 25, 2015. The note is not secured and is
convertible at the lender’s option into shares of the Company’s
common stock at a rate of $0.008 per share.

In August of 2014, a related party investor converted the accrued interest of $10,000 of a convertible promissory note into 2,500,000 shares of the Company’s common stock.

In September of 2014, the Company’s CEO provided an interest free loan to the Company in the amount of $1,500. The entire loan balance was repaid prior to September 30, 2014 and no interest or fees of any kind were paid to the CEO for providing the loan.

In October of 2014, a related party investor converted the principal balance and accrued interest of $5,160 of a convertible promissory note into 736,450 shares of the Company’s common stock.

In October of 2014 the Company entered into a convertible promissory note agreement in the amount of $21,000 with an individual who is related to the Company’s CEO. This loan pays interest at a rate of 6% per annum and the principle and accrued interest are due on or before April 16, 2015. The note is not secured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.045per share. The Company has an ongoing verbal agreement with a limited liability company that is controlled by a person who is related to the Company’s CEO to pay the related party consultant $3,000 per month to provide general business consulting, industry research, monitoring and assessing the Company's business and to advise management with respect to an appropriate business strategy on an ongoing basis, commenting on proposed corporate decisions and identifying and evaluating alternative courses of action, perform background research including background checks and provide investigative information on individuals and companies and acting as an administrative specialist to perform various administrative duties and clerical services including reviewing the Company’s agreements and books and records. The consultant provides theservices under the direction and supervision of the Company’s CEO. All fees paid to the related party consultant during the period ended December 31, 2014 and 2013 are included as an expense in consulting and contractor expenses in the accompanying statements of operations.

The Company has an ongoing agreement with a limited liability
company that is owned and controlled by a person who is
related to the Company’s CEO to provide stock transfer agency
services. At December 31, 2014, the Company owed the related
party limited liability company $29,850 for transfer agency
services rendered and for the reimbursement of legal fees. In
January 2014 the Company entered into a separate debt settlement
agreement with the related party vendor to settle a total of $7,683
of outstanding debt related to legal fees incurred by the related
party vendor due to a lawsuit against the Company in which suit
the related party vendor was also named as a defendant due to its
position as the Company’s stock transfer agency. The Company
issued 768,293 shares of its common stock to this vendor as
satisfaction for the outstanding debt. The agreement between the
Company and the vendor stipulated that should the transfer agency
realize less than $7,683 from the sale of the stock, then the
consultant is entitled to receive up to an additional 700,000 shares
of common stock or a cash payment until the balance is paid in
full. In March of 2014 the related party limited liability
company also agreed to provide various corporate consulting,
strategic planning and training under a separate consulting
agreement and the Company agreed to pay 500,000 shares of its
restricted common stock under the consulting agreement. All fees
paid to the related party consultant during the period ended
December 31, 2014 and 2013 are included as an expense in consulting and contractor expenses in the accompanying statmenets of operations.


NOTE 11 – RELATED PARTY TRANSACTIONS , continued

The Company agreed to rent a cesium vapor magnetometer from a related party. As of December 31, 2014 the Company and the related party had not entered into a written rental agreement and were still negotiating the amount to be paid in order for the Company to lease the magnetometer and had not entered. No payments or funds were owed to the related party as of December 31, 2014.

At December 31, 2014 the following promissory notes and shareholder loans were outstanding to related parties:

A convertible note payable dated January 9, 2009 due to a person related to the Company’s CEO with a face amount of $10,000. This note bears interest at a rate of 10% per annum with interest payments to be paid monthly and is convertible at the note holder’s option into the Company’s common stock at $0.015 per share. The convertible note payable was due on or before January 9, 2010 and is secured. This convertible note payable is currently in default due to non-payment of principal and interest. A convertible note payable dated January 25, 2010 in the principal amount of $6,000 with a person who is related to the Company’s CEO. This loan pays interest at a rate of 6% per annum and the principle and accrued interest were due on or before January 25, 2011. The note is not secured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.005 per share. This loan is currently in default due to non-payment of principal and interest.

A note payable dated February 24, 2010 in the principal amount of $7,500 with a corporation. The Company’s CEO is a director of the corporation and a former Director of the Company is an officer of the corporation. The loan is not secured and pays interest at a rate of 6% per annum and the principle and accrued interest were due on or before February 24, 2011. This loan is currently in default due to non-payment of principal and interest.

A convertible note payable dated January 18, 2012 in the amount of $50,000 with two individuals who are related to the Company’s CEO. This loan pays interest at a rate of 8% per annum and the principle and accrued interest were due on or before July 18, 2012. The note is secured and is convertible at the lender’s
option into shares of the Company’s common stock at a rate of $0.004 per share. The note is currently in default due to non-
payment of principal and interest.

A convertible note payable dated January 19, 2013 due to a person related to the Company’s CEO with a face amount of $15,000. This note bears interest at a rate of 6% per annum with accrued interest to be paid at the time that the principal balance is repaid or
the note is converted into shares of the Company’s common stock. The note is convertible at the note holder’s option into the Company’s common stock at $0.004 per share. The convertible note payable was due on or before July 30, 2013 and is not secured. The note is currently in default due to non-payment of principal and interest.

A convertible note payable dated July 26, 2013 due to a person related to the Company’s CEO with a face amount of $10,000. This note bears interest at a rate of 6% per annum with accrued interest to be paid at the time that the principal balance is repaid or the note is converted into shares of the Company’s common stock. The note is convertible at the note holder’s option into the Company’s common stock at $0.01 per share. The convertible note payable was due on or before January 26, 2014 and is not secured. The note is currently in default due to nonpaymentof principal and interest.

A convertible note payable dated January 17, 2014 due to a person related to the Company’s CEO with a face amount of $31,500. This note bears interest at a rate of 6% per annum with accrued interest to be paid at the time that the principal balance is repaid or the note is converted into shares of the Company’s common stock. The note is convertible at the note holder’s option into the Company’s common stock at $0.006 per share. The convertible note payable is due on or before July 17, 2015 and is not secured. The note is currently in default due to non-payment of principal and interest.

A convertible note payable dated May 27, 2014 due to a person related to the Company’s CEO with a face amount of $7,000. This note bears interest at a rate of 6% per annum with accrued interest to be paid at the time that the principal balance is repaid or the note is converted into shares of the Company’s common stock. The note is convertible at the note holder’s option into the Company’s common stock at $0.007 per share. The convertible note payable was due on or before November 27, 2014 and is not secured.

A convertible note payable dated July 21, 2014 due to a person
related to the Company’s CEO with a face amount of $17,000. This note bears interest at a rate of 6% per annum with accrued interest to be paid at the time that the principal balance is repaid or the note is converted into shares of the Company’s common stock. The note is convertible at the note holder’s option into the Company’s common stock at $0.008 per share. The convertible note payable was due on or before January 26, 2014 and is not secured. The note is currently in default due to nonpayment of principal and interest.


NOTE 11 – RELATED PARTY TRANSACTIONS , continued

A convertible note payable dated October 16, 2014 due to a
person related to the Company’s CEO with a face amount of $21,000. This note bears interest at a rate of 6% per annum with accrued interest to be paid at the time that the principal balance is repaid or the note is converted into shares of the Company’s common stock. The note is convertible at the note holder’s option into the Company’s common stock at $0.0045 per share. The convertible note payable is due on or before April 16, 2015. The convertible notes that have been issued by the Company are convertible at the lender’s option. These convertible notes represent significant potential dilution to the Company’s current shareholders as the convertible price of these notes is generally lower than the current market price of the Company’s shares. As such when these notes are converted into shares of the Company’s common stock there is typically a highly dilutive effect on current shareholders and, it is very possible that such dilution may significantly negatively affect the trading price of the Company’s common stock.

WHEREFORE $17MM Man, (edited) pro se, respectfully request this Court deny the Plaintiffs Motion to Quash, and such other relief this Court deems just and proper.