This guy is truly a piece of work. In 2005 Pay Pro touts itself as “Pay Pro, Inc. (fka Ostrich Products of America, Inc.) (the Company) was incorporated
under the laws of the State of Nevada on October 16, 1988. The Company is in the
business of issuing debit cards to individuals. The Company was classified as a
development stage company until the acquisition of Chex Card Corporation and My
Bank Card on June 26, 2005.”
Then a strange thing happened:
On April 1, 2006, the Company sold ChexCard Corporation, a provider of debit banking cards. As part of the transaction, certain notes payable and other assets were also retired. As compensation, the Company received 2,000,000,000 shares of the Company’s previously issued stock, and the stock is being held by the Company.
Can anyone tell me what this means? The company received 2 billion shares of what and from whom? Does this mean that the company sold the ChexCard business to itself and buried 2 billion shares in the process? You tell me! I’m not making this stuff up. Talk about convoluted!
It gets better: PANAMERSA Corporation (PINKSHEETS: PNMS) is a holding company for a group of business enterprises which promotes the commercial integration of Latin America into the economic development of the Western Hemisphere. PANAMERSA Corporation is engaged in global e-commerce and e-biz solutions offering interactive e-commerce and e-biz programs in addition to a range of goods and services online including: prepaid Debit cards; e-commerce merchant accounts; life insurance policies, gold transactions; telephony services, text messaging, VoIP, MicroForests properties, real estate investment participations, fixed and variable income real estate properties in Costa Rica and Panama, offshore financial services, asset management and protection; travel services, leisure, business, health, relocation services, and digital marketing services.
So.,,.in the matter of two months, this company goes from selling prepaid debit cards to an entire supermarket of goods and services? Wait a second…..the company still derives income from sale of these debit cards…but sold ChexCard…presumably through Ebiz? This is the company with assets of $5 million that was acquired in 2006 for $1 million? The same company that holds itself out as a financial institution and sells debentures backed by tropical air? The supposed “micro loan” outfit? Where are their financials? I would love to see those. They supposedly sell health and life insurance. Look carefully at the web site. They state very clearly that insurance policies are offered to their clients’ but the policies issued are from outside vendors. Nice trick…but still a lie.
For those who have actually read the “certified” financials, they are as convoluted as the 2 billion share swap. Compare the year end Dec 31, 2006 to the third quarter financials.
OS certified at 7,629,010,600 in both sets of “certified” financials. The Ibox says 5 billion and change. Do we believe Terrel or Ibox? After all, the docs are “certified”! Maybe the TA should do one of these “certification” thingees as well.
Look again at the Dec 31 report: specifically Revenues. “Income Taxes” = 0. Look at September 30 report: Income Taxes $1,820,000. This is based on income of $5.8 million. What kind of tax calculation is this? Which corporation pays 31% tax rate on earnings? Certainly not in the US! If this is what Panama charges corporations, then I would suggest that this is not a very pragmatic investment scenario. What happened to taxes owed at the end of the year? There is no record they were paid. Why does the “certified” financial show zero taxes owed. Read Note 1 (c) where they claim a carryover from 2005. Sorry, but a carryover on a loss of $420,389 does not offset taxes due on net revenue of roughly $27 million. Looking at the September report, a 31% tax rate, then taxes owed on yearly revenues would be roughly $8.6 million. While you are looking at this, would the “revenue” of $80 million raised from sale of 2 billion shares not be taxable as income for the year as well? These financials are just not reliable. It’s no wonder they are not audited. Which auditor would sign off on this stuff?
Sorry guys. I just can’t buy this story.
