First American Scientific Corp. (fka FASC)

[sunspotter]

"clay was already an existing market via Atlas Mining...in terms of halloysite clay"

The twist being that it has now transpired that no halloysite clay was mined at Atlas's Dragon Mine, and that indeed it may not even exist:

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=6124845-866-27962&type=sect&TabIndex=2&companyid=69126&ppu=%252fdefault.aspx%253fcik%253d8328)

It's now clear that anyone out there who was an Atlas Mining shareholder has been sorely deceived.

Here's a few snippets from that Current Report filed on August 20:


"The Company is “uncertain . . . whether . . . commercially viable deposits or ‘reserves’ exist on any of our properties.”

In other words, after nine months of investigation they still don't know whether or not the much vaunted halloysite clay actually exists at the Dragon Mine or not. I think I know what the likely final answer is.

"The Special Committee has determined that Mr. Jacobson was primarily responsible for the securities law violations set forth above."

Translation: Jake's a crook.

"During the period beginning in 2002 and ending in early 2006, approximately 30 million shares of Common Stock were issued in violation of the federal securities laws, including the registration provisions of Section 5 of the Securities Act of 1933. The violations involved (a) misuse of SEC Registration Form S-8, a short form registration form for compensatory issuances to certain officers, directors, employees and consultants (approximately 16 million shares were issued under Form S-8), (b) transfer of 9.9 million shares to related parties and affiliates that were purportedly sold under a Company Registration Statement on SEC Registration Form SB-2 and subsequent resales without compliance with the plan of distribution contained in the Company’s SB-2, and (c) grants of at least 2.8 million shares purportedly made pursuant to the exemption from registration set forth in Section 4(2) of the Securities Act."

This was not a small scale fraud, or just an oversight. It was a multimillion dollar fraud.


Makes you wonder quite what the KDS sold to Atlas was used for, and why Atlas, Natural Nano and Atlas claimed sales and processing of a product that didn't exist.