Black Dragon Resource Companies Inc (BDGR)

[soso]

Vetguy, I disagree. There is absolutely no evidence anywhere that Lanza will ever do anything but continue his life of crime. You are a slow learner, so I thought I would repost some of the documentation of Lanza's past crimes. Hope this is helpful.

Please note as indicated below, Joseph Lanza’s long history of stock manipulation:

BACKGROUND....i.Lanza’s Modus Operandi37. Lanza is a professional con man. He has become a master at pumping a stock on the open market while siphoning away its resources to various companies owned either by him, his family, or frontmen. Typically, Lanza’s modus operandi is to establish a public \l "" offering shares on the OTCBB or Pink Sheet exchanges. As soon as shares of the public company began trading on the open market, Lanza, his family members, or one of his companies run by his frontmen, would enter fictitious "consulting agreements" creating an account payable on the public company’s books. Lanza would then, through a variety of methods, pump the public company’s stock, attempting to entice unwitting investors to purchase the public company’s, usually worthless, stock. Once the company received funds, however, Lanza would insist that it be used to first repay him, his family members or frontmen. Oftentimes, since the public company had no cash to pay these fabricated debts, Lanza would instruct the company to issue stock in lieu of payment. If the stock price rose, Lanza, his family members or his frontmen stood to gain 200% to 1000% of their "investment" for doing little or nothing to enhance the company’s value.38. Lanza is also a convicted felon. On April 2, 1997, he was convicted of tax evasion. Lanza was incarcerated for nearly a year at the Nellis Federal Penitentiary Center in North Las Vegas, Nevada.39. Lanza’s activities have not gone unnoticed by the SEC. On October 19, 2000, Lanza entered into a Consent Judgment with the SEC for making "false and misleading statements in the course of recommending the purchase of Members [Service Corporation] stock." He was required to disgorge $265,214 plus prejudgment interest of $239,085. Payment was waived, however, when Lanza provided an affidavit claiming that he was financially insolvent. The Commission’s Complaint alleged that the majority of the money was funneled to Lanza’s wife, Jayne Lanza. Lanza was permanently enjoined from violating Sections 5(a), 5(c), and 17(a) of the Securities Act, and Section 10(b) and rule 10b-5 of the Securities Exchange Act.

A Federal Court Judgement Offers Lessons for Young Entrepreneurs; $3.2 Million Award Ends Litigation in Securities \l "" Case
\l "" Wire, Dec 12, 2000
Legal Writers

IRVINE, Calif.--(BUSINESS WIRE)--Dec. 12, 2000

Late last month, in the Santa Ana courtroom of \l "" Judge Alicemarie H. Stotler, a four year old securities fraud case came to an end for three young entrepreneurs, who received a $3.2 million award.

To observers and participants in the protracted litigation, lessons coming out of the fray may be just as important as who won or lost.

"What this case underscored," said plaintiffs' attorney Mark T. Palin, managing partner of the Irvine, Calif. office of Arter & Hadden LLP, "is that entrepreneurs have to be exceptionally careful in their business dealings.

"When they are offered an opportunity to partner with someone, and their financial needs are very current, often they have neither the interest or the inclination to do the right due diligence.

"The coins of duplicity are wide and universal," Palin pointed out. "In this instance, the result was almost disastrous."

When Charles Leone, Robert Nyland and Allan King founded San Antonio, Texas-based Select Switch Systems Inc., in 1995, they were certain the firm would become a key telecommunications player. As the company's switching systems gained acceptance, its operating assets began to be stretched severely.

Then, in 1996, the company landed a potentially lucrative government contract as a subcontractor for the installation and operation of telephone systems on certain military bases.

The founders knew they could not keep up with demand without additional cash infusions. In their search for interim funding, they were introduced to a Palm Springs, California investor named Joseph Lanza and a companion firm, Indian Wells \l "" Co.

Lanza and the investment company told the Texas firm that they could help. By selling their interest in Select Switch Systems (Select) to a third, publicly traded firm owned by Lanza and Indian Wells -- Xecom Corp. -- they could capitalize on the defense contracts. Xecom, also known as Airstar, would provide much needed cash.

They also alleged that the sellers would receive stock in Xecom equal to their investment in Select, with a much larger potential payout. The deal was struck.

Leone, Neyland and King soon found, however, that they'd been had. Xecom (Airstar) did not have the financial resources it claimed. Moreover, the company had, in the meantime, absorbed Select Switch Systems and had begun methodically stripping the company of its assets, and pocketing the money it received.

LANZA GROUP LITIGATION. On August 27, 1998, the Company filed suit against Joseph Lanza ("Lanza"), his wife Jayne Lanza, his son Mario Lanza, IWIC and several other entities believed to be owned or controlled by Lanza (collectively, "Defendants" or the "Lanza Group") for breach of contract, unjust enrichment, fraud, breach of fiduciary duty, negligence and violations of securities laws. The case is entitled AIRSTAR TECHNOLOGIES, INC. V. JOSEPH LANZA ET AL. The case is filed in Superior Court for the State of California (Riverside County), Case No. INC008689. The Company's claims arise from the actions of the Defendants in connection with the consulting agreement between IWIC and the Company, the purchase and sale of SelecTel, overbilling and false billing by IWIC and others, fraudulent concealment by Lanza of his background as it relates to the securities business, and fraudulent nondisclosure of information to the Company which had a material adverse effect on the Company's business. SECURITIES AND EXCHANGE COMMISSIONLitigation Release No. 16775 / October 19, 2000SECURITIES AND EXCHANGE COMMISSION v. MEMBERS SERVICE CORPORATION, et al., 97 CV 01146 (HHK) (D.D.C.)The Securities and Exchange Commission announced today that on October 4, 2000, the United States District Court for the District of Columbia entered final judgments as to defendants Philip Sung, Joseph Lanza and Jayne Lanza.Defendant Joseph Lanza is a stock promoter and resident of Rancho Mirage, California. Joseph Lanza is alleged to have made false and misleading statements in the course of recommending the purchase of Members stock. Without admitting or denying the substantive allegations of the Complaint, Joseph Lanza consented to the entry of a Final Judgment which permanently enjoins him from violating Sections 5(a), 5(c) and 17(a) of the Securities Act and Section 10(b) and rule 10b-5 of the Exchange Act, and which orders him to disgorge $265,214 plus prejudgment interest of $239,085 and which waives payment of the disgorgement and prejudgment interest and imposes no civil monetary penalty based upon his sworn representations concerning his financial condition.The Commission's Complaint alleges that Joseph Lanza funneled the majority of the funds he received from his participation in the defendants' fraudulent scheme to his wife, relief defendant Jayne Lanza. Without admitting or denying the substantive allegations of the Complaint, Jayne Lanza consented to the entry of a Final Judgment ordering her to pay $250,000 into the Registry of the Court as settlement of the Commission's monetary claims against her. Relief Defendant Jane Lanza was not alleged to have violated any laws.Entry of these final judgments concludes the litigation of this matter. The Commission's Complaint alleged that Sung and other defendants obtained over one million shares of unregistered stock of Members in sham transactions that violated Regulation S, manipulated the price of Members' stock and sold the unregistered stock into the manipulated market for illegal profits of over $5 million.


UNITED STATES DISTRICT COURT

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF INDIANA
HAMMOND DIVISION

UNITED STATES OF AMERICA )
)
)
)
)
V. ) Case No. 96CR-001 JM
)
) 26 U.S.C. 7201
) 26 U.S.C. 7206
) 18 U.S.C. 1343
) 18 U.S.C. 1341
) 18 U.S.C. 1956
JOSEPH LANZA ) 18 U.S.C. 1957
JAYNE LANZA ) 18 U.S.C. 371

THE GRAND JURY CHARGES:
(Wire Fraud)
Counts 1-9

INTRODUCTION

1. In 1987, the defendant, JOSEPH LANZA, incorporated a new \l ""
called Sensi, Inc. in the State of Oregon. Sensi, Inc. was originally
set up to explore for, acquire and operate oil wells. In 1989, because
the primary focus of Sensi's operation was in the State of Indiana,
JOSEPH LANZA also \l "" Sensi in the State of Indiana.

2. Throughout 1987, JOSEPH LANZA, through Sensi, Inc., purchased the
rights to various oil well leases in the area of \l "", Indiana. None of
JOSEPH LANZA's own money was used to purchase the rights to the Peru,
Indiana, \l "". Rather, money invested by several individuals was used
to purchase the rights to the leases. The leases were named after the
owner of the property where the oil wells were located. The first lease
acquired by Sensi, Inc. was known as the Gretzinger lease and was
purchased for $3,000.

3. After acquiring the Gretzinger lease, JOSEPH LANZA and Sensi, Inc.
obtained the rights to a number of other oil fields which included oil
wells known as South Marburger, Soames, Snowden-Barber, Kokomo Tube,
Enhanced Oil Recovery Fields, Smith, Orion, Rock Industries, Palmer,
Ebert, Cole, Burr, Barr, Wilkerson, Puterbaugh, Lawrence, and Mill. As
with the Gretzinger lease, JOSEPH LANZA used none of his own money to
purchase these additional leases.

4. In addition to the Gretzinger lease, these wells came to be known to
the investors as generically as the Peru Oil Fields.

5. Once the Peru Oil Fields were acquired, JOSEPH LANZA sold off
percentages of each well to interested investors. Many of the investors
who put their money into the Peru Oil Fields has previously invested
with JOSEPH LANZA in oil fields in the area of Berne, Indiana. Since
neither JOSEPH LANZA nor his wife invested any of their own money in the
oil wells, the investors' money was used to actually acquire the leases.
In the early stages, because the oil wells were in need of repair,
investors' money was the only source of funds for Sensi, Inc. After the
wells were developed, a small amount of oil was actually produced.

6. In exchange for investing their money, individual investors received
a "working interest" in the income and expenses of a specific oil well.
Once an investor was the ownerof a working interest in a well, he or she
was expected to reimburse Sensi, Inc. for his or her percentage of the
total drilling costs and operational expenses for that well.

7. In September, 1988, JOSEPH LANZA, incorporated Black Jade of
Indiana, Inc. The purpose of Black Jade was to provide corporate
protection from liabilities for individual investors in the Peru Oil
Fields. By incorporating the business activities, all income and
expenses could run through the corporation and then disbursed out to the
individual shareholders on a percentage basis. Black Jade was
thereafter listed as the holder of the lease rights to the Peru Oil
Fields.

8. Throughout the development of the Peru Oil Fields, JOSEPH LANZA was
able to maintain a 23 1/2% ownership interest in the wells controlled by
Black Jade in his wife's name. At 23 1/2% Jayne Lanza maintained the
largest ownership interest in Black Jade. This occurred even though
Jayne Lanza made no capital contributions to the company. In addition,
Jayne Lanza and was not required to pay her 23 1/2% of the costs
involved in operating the wells.

9. In April, 1990, JOSEPH LANZA incorporated Rich Valley Oil Company,
Inc. in the State of Indiana for the purpose of developing additional
oil leases known as the Cole Ebert and Lawrence lease, the Kunkel lease,
the Mylea Farms lease, and the Urbana lease. Jayne Lanza was the
President of Rich Valley Oil Company. The Urbana lease was touted by
JOSEPH LANZA and his wife as the "Rolls Royce" of oil wells.

10. Rich Valley Oil Company was set up similar to Black Jade of Indiana
in that the company owned the rights to oil leases and then sold working
percentages to various investors. JOSEPH LANZA, through Rich Valley Oil
Company, acquired the leases with the use of investors' money. None of
JOSEPH LANZA's own money was used to acquire these additional leases.

PURPOSE OF THE SCHEME

11. Beginning in or around Novenber 1986, and continuing through in or
around December, 1991, the exact dates being unknown to the Grand Jury,
in the Northern District of Indiana, the defendant,

JOSEPH LANZA,

knowingly devised and intended to devise a scheme and artifice to
defraud and to obtain money be means of false and fraudulent pretenses
and representations, from the following investors: Lee Asch, James
Atkinson, Dr. Donald Baltz, Harvey "Nick" Bunick, Gus Ebenstein, Alan
Goulter, Paul Gulick, Thomas Hageman, Steven Hix, Steve Hurwitz, Lloyd
and Barbara Hames, Judith Isaac, Thomas O'Halloran, James Richardson,
Philip Roberts, William Shmitz, Norman Stutzke, and John Thatcher.

THE SCHEME

12. It was part of the scheme that from the latter part of 1986 through
1991, JOSEPH LANZA sold working interests in various oil wells in
Indiana to 18 different investors. LANZA was able to convince the
investors to contribute approximately $4.8 million into the development
of the oil wells described above. Individual investors' contributions
ranged from a minimum of $9,000 to a maximum of $1,211,000.

13. It was further part of the scheme that JOSEPH LANZA failed to
disclose to the investors that a large portion of the money that the
investors were sending to LANZA was being used by he and his wife to
finance an extravagant personal lifestyle. JOSEPH LANZA and his wife
diverted approximately $1.6 million of investors' funds and purchased
personal items with the money. In addition, approximately $570,000 was
used by JOSEPH LANZA and his wife for travel and entertainment. None of
the approximate $2.2 million, which originally came from investors, was
used to explore for, acquire or operate wells. Instead, it was used for
the personal gratification of LANZA and his wife. In addition to the
$2.2 million that was spent on personal items and travel and
entertainment, another approximate $350,000 was used by JOSEPH LANZA to
write checks to cash.

14. It was further part of the scheme that when JOSEPH LANZA sold the
working interests in the oil wells to the investors, he falsely and
fraudulently told them that their money would be used solely for
expenses incurred in the acquisition, exploration, drilling and
operation of oil wells. JOSEPH LANZA did not disclose to the investors
that a large portion of the money that the investors sent him would be
used for his personal benefit. Had the investors known that a large
portion of the money being sent to JOSEPH LANZA was being spent on
personal items, they never would have invested in the oil wells. The
following are examples these false and fraudulent statements:

[Eight Detailed Examples]

15. It was further part of the scheme that in order to get the
investors to invest in the oil wells JOSEPH LANZA falsely and
fraudulently told investors that he and his wife had a significant
amount of their own money invested in the oil wells and that he and his
wife were covering a large portion of the expenses of perating the
wells. This was stated to the investors so as to give them a false
sense of security; many of the investors believed that if JOSEPH LANZA
and his wife were willing to invest their own money in the oil wells,
then it would likewise be a good investment for them. In reality,
JOSEPH LANZA and his wife had none of their own money in the oil wells
and did not contribute to the operating expenses of the wells. The
following are examples of JOSEPH LANZA's false and fraudulent statements
to investors relating to the amount of money that he andd his wife
supposedly were contributing to the operation of the oil wells:

[Nine Detailed Examples]

16. It was further part of the scheme that in order to get the
investors to originally send him, or to contribute to send him money,
JOSEPH LANZA wrote letters to the investors exaggerating the future
prospects of the oil wells and requesting additional funds. The purpose
of these letters was to lull the investors into a false sense of
security and to get them to continue to send money. For example:

[Nine Detailed Examples]

17. It was further part of the scheme that these lulling letters, as
well as other similar letters, were sent to the investors by JOSEPH
LANZA and Jayne Lanza to hold the investors at bay and to entice them to
invest additional funds in the oil wells so that JOSEPH LANZA and Jayne
Lanza could continue to spend a large portion of the funds for their own
personal benefit.

18. It was further part of the scheme that on or about March 14, 1991
JOSEPH LANZA sent to the investors a listing of the accounts payable for
Sensi Corporation. This was done in order to show to the investors the
severe financial condition confronting Sensi and to ask for additional
money to cover expenses. The accounts payable included tens of
thousands of dollars due to five credit card companies. These credit
card balances were incurred as a result of JOSEPH LANZA and his wife
using Sensi's credit cards to purchase personal items.



"http://usas1.advfn.com/oasis/oasisc.php?s=43&w=336&h=280&t=_blank""notorious U.S. stock hustler Joe Lanza"

The Vancouver \l ""

July 13, 1996, Saturday, FINAL EDITION

* * * * *

David Gilbert, a broker at Union Securities in \l "", has been given a two-month holiday by the Alberta Stock Exchange.

What did he do to deserve this sabbatical?

According to an ASE notice, Gilbert acted as broker for several accounts that traded extensively in an unnamed ASE-listed \l "" from January to April 1993.

Those accounts were under the control of an unnamed promoter and accounted for a "significant percentage" of the company's \l "" volume.

(We have since learned the company was Maesa Petroleum Inc. and the promoter was notorious U.S. stock hustler Joe Lanza.)

The ASE said Gilbert also opened 75 accounts for clients referred by Lanza, and "assisted and/or facilitated a number of manipulative practices."

Among other things, he:

* Executed trades between Lanza's accounts and the referral accounts knowing that orders of the same size, price and time would be entered at opposite ends of the transactions.

* Executed 10 trades between accounts under the direction and control of Lanza.

* Established new trading highs, in some cases with Lanza's accounts and the referral accounts on both sides of the trades.

During this period, Maesa's \l "" rocketed from $ 1 to $ 6.50, then cratered.

For these and other actions that were obviously deleterious to the public interest, Gilbert agreed to a 60-day suspension and a $ 15,000 fine, and to return $ 66,327 in commissions.