Pleeeze - will an MP apologist like Harry please step up and explain why Malcolm Philips elected Jeffrey Rinde as CDEx's securities counsel instead of one of the many securities partners at Hogan & Hartson (two of which are former SEC legal counsels, BTW!) or at Winston & Strawn. WHY DID MALCBABY CHOSE RINDE?
A few more things on Rinde and Infotopia:
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The relationship between Altea and Bondy & Schloss is one focus of a lawsuit filed against the law firm, Infotopia, Jeffrey Rinde, and another Bondy & Schloss partner, Gerald Adler, in the New York Supreme Court. In that case the plaintiffs, a company named J Group, and its owners, allege that Rinde arranged for a $100,000 loan to J Group from another Bondy & Schloss client, Altea Investments, Ltd. in December 2000. According to the complaint, when J Group couldn’t make timely loan payments, Rinde purportedly recommended that the J Group business be sold to yet another Bondy & Schloss client, Infotopia. The owners say they resisted, and instead transferred certain product licensing rights in exchange for Infotopia shares. But J Group alleges that Bondy & Schloss controlled those shares, and sold them for less than had been promised.
Are there other relationships between Grand Enterprises and Infotopia? The Grand Enterprises Registration Statement lists Gorda Private Investments, Ltd. as a selling shareholder, but provides no information about the owners, officers or business of Gorda. Is this the same company that is referred to as Gorda Investments Ltd. in a Registration Statement filed by Infotopia on March 27, 2001? Infotopia was registering 120 million shares of its common stock for Gorda Investments, but Infotopia, like Grand Enterprises, offered no details about Gorda’s ownership or nationality. Perhaps Bondy & Schloss know the answers to those questions. They are identified as counsel for Infotopia and Grand Enterprises on the respective Registration Statements.
Elite Investors
We discovered one other Bondy & Schloss client that appears to have something in common with Infotopia. A company called Pro-Elite filed an SB-2 Registration Statement with the SEC on August 31, 2001 seeking to register 24.8 million shares of common stock, including 11.5 million shares owned by Joseph Blumenthal, 1.05 million shares owned by George Bally, and 150,000 shares owned by Bradley P. Barnes.
By now, Stock Patrol readers recognize the name Joseph Blumenthal. On February 2, 2001 we reported that Joseph Blumenthal was President of JB Marc and Associates, Inc. a firm that purchased 2.5 million Infotopia shares for $967,000 on August 21, 2000. Those shares were included in a Registration Statement filed by Infotopia on October 6, 2000. (Shares issued to a George Bally (950,000 shares), a George Bally, Jr. (812,500 shares) and a Bradley Barnes (705,000 shares) were included on that same Infotopia Registration Statement. (See Infotopia, Inc. – Bye, Bye Shares).
And then there’s this. On September 4, 2001, we reported that HIV-VAC, Inc., a company that is purportedly working on a cure for HIV/AIDS, had filed a Registration Statement on August 22, 2001 for 25 million shares that could be issued to a company identified as Bromley Holdings, Inc. of Hewlett, New York. As we learned, HIV-VAC had sold one million shares of Convertible Preferred Stock to Bromley for $10,000. Each of those Preferred Shares could be converted into shares of HIV-VAC common stock at a substantial discount for the prevailing public prices. As part of the deal, Bromley also received warrants to buy an additional 5 million common shares. (See HIV-VAC, Inc. – You Gotta Have Friends).
Who controlled Bromley? The Registration Statement did not say, but subscription forms for the preferred shares identified “Joe Blumenthal” as President of Bromley.
And who were the attorneys for HIV-VAC? The August 22, 2001 Registration Statement identified the Company’s counsel as Jeffrey Rinde and Bondy & Schloss.
"Stock Patrol started asking questions about those activities in January 2001, when we first noticed that Valentine’s firm, Thomson Kernaghan, had been receiving millions upon millions of shares of Infotopia, Inc. at a deep discount."
I wonder if he got any 10 Centers or 30 Centers.
