Perf Go-Green Holdings, Inc. (PGOG)

[petermic]

=DJ IN THE MONEY: A Couple Of Red Flags For Perf Go-Green Hldrs


By Carol S. Remond
A Dow Jones Newswires Column

All that glitters isn't gold.

And while investors might be attracted by Perf Go-Green Holdings
Inc.'s (PGOG) very impressive corporate board, including a former New
York governor and his economic development czar, there are a couple of
red flags investors might want to look into before buying its stock.

First, it's never a good sign when almost daily promotions paid for
by mysterious entities tout a month-old stock.

Then, there is the issue of company Chairman and Chief Executive
Anthony Tracy's involvement with an extortion attempt a few years
back. According to a court docket available to online subscribers,
Tracy pleaded guilty to one count of extortion in state court in
Pinellas County, Fla., in August 2002. Joseph Cartolano, a lawyer who
represented Tracy, said he is "pretty sure" that his client pleaded no
contest instead of guilty, neither admitting nor denying guilt. The
judge in the case sentenced Tracy to three years probation and
withheld adjudication of guilt - which means that as long as he didn't
violate the conditions of his probation, he wasn't convicted of a
crime.

Tracy's legal woes aren't disclosed in Perf Go-Green's regulatory
filings with the Securities and Exchange Commission. Perf Go-Green's
Chief Operating Officer Michael Caridi said in a telephone interview
Tuesday that he was aware of Tracy's "situation" and that he didn't
know whether it needed to be disclosed. Tracy wasn't immediately
available to comment.

Perf Go-Green is trying to ride the environment friendly wave,
marketing biodegradable trash bags that should hit markets later this
year. The company claims that its new bags, made through the
combination of recycled plastic and additives will brake down within
two years in a landfill, compared to the hundred years or more
required by conventional plastic.

After rocketing to a high of $3.08 a share on June 13, just a month
after it went public, Perf Go-Green stock has been dropping
precipitously in increased volume in the last few days. The stock was
recently trading at $1.75, down 10%.

The company has yet to sell a single trash bag, but it's already
nabbed two very influential powerbrokers to its board of directors:
Former New York Gov. George Pataki and Charles Gargano, former vice
chairman of the Port Authority of New York and New Jersey, and former
chairman of the Empire State Development Corporation. Financial
advisor and author David Bach, who in April published "Go Green, Live
Rich: 50 Simple Steps to Save The Earth (and Get Rich Trying)", was
also recruited to the board.

COO Caridi said he met Tracy last year as the inventor of an
automatic trash bag dispenser and a bagel slicer was having
difficulties raising financing for his plans to go green. He said he
liked Tracy's ideas and innovative nature and started working with him
on structuring and packaging the concept.

Caridi said he reached out to Pataki and Gargano because they both
have been involved with environmental initiatives.

Both are well compensated for their services.

Pataki received options to purchase 1 million shares of Perf
Go-Green at 50 cents. As part of his consulting deal, Gargano received
options to buy 200,000 shares at 50 cents, a $2,000 weekly payment and
2% of all sales attributable to his services. Meanwhile, Bach got
options to buy 650,000 shares at $1.81, as well as options to purchase
20,000 shares monthly at $1 for one year.

Pataki, Gargano and Bach weren't available to comment.

Caridi said he doesn't know who is behind the two entities paying to
promote his company stock. According to disclaimers in online
promotional emails, Universal Management Services and Jayco Consulting
Ltd each paid $30,000 to Xtreme Internet Advertising to "enhance
public awareness" in the stock.

Illustrated with photos of Pataki and Bach, the emails tell
investors that they could "make millions from the soaring 'green'
sector and capitalize on one of the biggest economic wave since the
dot-com bonanza...Get in now at any price up to $10!"

The company said an SEC filing Wednesday that it has "no
relationship with Universal Management Services, Xtreme Internet
Advertising, Hototc.com, Stockegg.com, Streetinsider.com or those
entities publications and have not engaged Universal Management
Services, Xtreme Internet Advertising, Hototc.com, Stockegg.com,
Streetinsider.com or any other person or entity to prepare such
brochures."

Asked about the recently announced hiring of investor relations firm
Euro Invest News, Caridi said that the firm would help the company
market its stock in Germany. Perf Go-Green recently started trading on
the Frankfurt stock exchange and Caridi predicted that the European
market would embrace its products.

But there is virtually no information about Euro Invest News.
Besides the SEC filing made by Perf Go-Green, the only other mention
of Euro Invest News in a press release last month by Odyssey Petroleum
Corp. (ODE.V), a Canadian company trading on the Toronto Exchange.

Euro Invest News already received $487,500 for consulting services.
The investors relation firm stands to received another $750,000 and
750,000 shares of Perf Go-Green for his services.

Despite the firm's hefty price tag, Caridi said he doesn't know
where Euro Invest News is based. "My understanding is there has to be
an appropriate IR budget," Caridi said, explaining that the retaining
of Euro Invest News was part of the deal under which Perf Go-Green
went public.

Perf Go-Green became a publicly traded company through through a
complex three way reverse merger with ESYS Holdings Inc. and La
Solucion Inc. Two offshore funds, Rig Fund II A Ltd and E&P Fund Ltd,
and Guy-Philippe Bertin, an individual residing in France, took
control of La Solucion late last year and renamed it ESYS. Perf
Go-Green later acquired the shell from the three foreign entities. Rig
Fund is listed in an May 16 SEC filing has owning 9.3% of Perf
Go-Green.

"The shell was provided by this group. Euro Invest was all part of
the package," Caridi said.

Caridi said he didn't know the circumstances behind CEO Tracy's 2002
legal troubles.

According to information available online, Tracy and George Cappelli
in November 2001 threatened a Palm Harbor businessman named James
McGuire to get back $30,000 he owed to another individual.

Michael Holbrook, a detective who investigated the case, said Tracy
took McGuire's watch and said he would keep it until the debt was
paid. The detective said that about the same time as Cappelli was
arrested, an attorney from Miami called the Pinellas Sheriff
Department looking to return the watch without naming his client.
Tracy was later identify through information contained in one of
Cappelli's notebooks.

Tracy's lawyer Cartolano said he (Cartolano) called "the owner of
the watch to return it." Cartolano, who explained the affair as "an
argument between two guys", said Tracy was given the watch as a
collateral and then returned it.

(Carol S. Remond is an award-winning columnist who won a Gerald Loeb
Award in 2005 for best news service content with "Exposing Small-Cap
fraud," a series of articles that described how three small companies
unscrupulously pumped up their stocks.)

-By Carol S. Remond; Dow Jones Newswires; 303 997 5783;
[e-mail]

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(END) Dow Jones Newswires
06-18-08 1204ET
Copyright (c) 2008 Dow Jones & Company, Inc.
- - 12 04 PM EDT 06-18-08