Fuego Enterprises, Inc. (FUGI)

[Squeegee_1]

.<font color=green> Repost: The next few months may be very interesting. We seem to have a situation on our hands that just might result in a rather nasty short squeeze.

The following statements contain much of my own personal opinions and I have no proof that anything illegal has taken place.


1. On May 9, 2007, we entered into a contract with Var Growth Corporation (D.B.A. Ice Cold Stocks) and issued 875,000 shares of restricted common stock at $.15 in exchange for consulting services to be performed over a 12 month period from the date of the contract.
These shares cannot be sold until the restrictions have been lifted by the company. The $.15 was the value declared at the time of the deal but does not represent money paid for the shares.

2. Over the last six months many of the shareholder have been trying to piece together a puzzle. There has been a constant selling pressure on Fuego's stock at prices that are well below even the lowest averages and nobody knew where the stock was coming from. The answer would have to be someone who's cost basis was below these levels or a desperate shareholder. Only one name ever came up but he did not have free trading shares yet. So it would seem... Sure there have been sellers including one of our hedge funds, but we now have word that that hedge fund is a buyer at this low level and has been sucking up these shares for 2 weeks.

3. Yesterday it seems the company filed a restraining order in Miami's Dade County court today against Var Growth (IceCold Stocks) to prevent them from having the free trading stocks on the grounds that services were not provided as promised. A second lawsuit claims damages. This all takes place only days after yet another massive dump of shares on the last 2 Mondays.

Dade County documents:
http://investorshub.advfn.com/boards/read_msg.asp?message_id=28327482

rule 144 states.
What If a Dispute Arises Over Whether I Can Remove the Legend?
If a dispute arises about whether a restricted legend can be removed, the SEC will not intervene. The removal of a legend is a matter solely in the discretion of the issuer of the securities. State law, not federal law, covers disputes about the removal of legends. Thus, the SEC will not take action in any decision or dispute about removing a restrictive legend.
http://www.sec.gov/investor/pubs/rule144.htm

4. Here is a link to a similar situation where restricted shares were sold into the market and the bad results for the sellers: http://www.finra.org/PressRoom/NewsReleases/2006NewsReleases/P017730

5. What we may have here is the perfect storm... illegal shares possibly sold into the market, rumors of the clearing house requesting the shares, legitimate grounds to deny the shares with legal claims and damages against the seller. Best of all is the seller will not want to go through legal discovery process and reveal that they illegally sold restricted shares through a shorting scheme. If these phantom shares cant be covered with the free trading shares, then where will the clearing firm find them to satisfy the DTCC and Reg SHO?

Can you say.... "Forced Cover?" its either cover or go to court to try and get them while having to admit you already illegally sold them! All speculation on my part...

Again, the next few of months may be very interesting indeed.