H Quotient, Inc. (fka HQNT)

[bigjeza]

Our-Street Character Back, Newest Complaint Accompanied by Bizarre 'Personal' Attack on CEO






Jun 9, 2004 (financialwire.net via COMTEX) -- (FinancialWire) If the recently unmasked and tarnished proprietor of Our-Street.com, Timothy Miles, who has been charged by the U.S. Securities and Exchange Commission with fraud, had stuck to its "investigations" and its "SEC complaint filings," its current campaign against Circle Group Holdings (CXN) might have been deemed suspicious but not bizarre.

The website, which claims "credit" for what it calls SEC inquiries into Calypte Biomedical (CYPT) US Global Nanospace, Inc (OTCBB USGA), and Epixtar (EPXR), among others, has instead apparently decided to test the limits of what it must believe is an "immunity from judgments."

The self-described "internet based public company watchdog" said it had "filed a complaint with the US Food and Drug Administration and the Federal Trade Commission against Circle Group Holdings, Inc.," alleging "that their recently announced television commercial may not be supported by required documentation or research and that it makes materially false and misleading claims regarding results available to people who use the product."

So far, so good, but then it turns bizarre as the "complaintant," who continues to represent he is the fictitious "Nick Tracy" outlines what only could be described as a vendetta against not just the company but its CEO, Gregory Halpern, at http://www.our-street.com/featured.htm .

"In my opinion Greg Halpern is not the most crooked of all the CEO's," said Miles as he launched.into the bizarre diatribe normally seen only on message boards. "He would have to be much more clever. There are many others who are far better crooks than he is but, in my opinion, he is, without a doubt, the stupidest of any of the 20 CEO's I have covered so far. In fact, I don't recall even calling another CEO 'stupid'. Still I have to call them as I see them and with Greg, I have to say that, in my opinion, this guy is intellectually challenged. I mean seriously ignorant!

" When I published my first report on Circle Group on March 1, 2004 then subsequently issued the press release again through my distributor, I got a call from Greg Haplern. He left a message on my answering machine. I saved it and want you to hear part of it now. It will give you valuable insight into how mentally imbalanced he is as well as to his level of ignorance. Please enjoy this message from the CEO of Circle Group Holdings, Inc. (at http://www.our-street.com/halpernbsthreat.wav) then decide for yourself what you think. To me it is the ramblings of a madman.

"By the way, Greg simply made up the money laundering thing you will hear him mention. Just another one of his lies.. 100% a figment of his unstable mind. The ignorant part is that he actually thought I would be intimidated by stuff that he fabricates in his twisted little mind. Also, for the record, I have never lived in a dumpster. Greg is so mind numbingly ignorant, perhaps he can't even distinguish between fact and fiction when leaving a phone message. No wonder he can't make a profit for his shareholders. In my opinion, he is first too stupid and second too entranced with his own self image to accomplish anything meaningful," Miles/Tracy states, just getting warmed up.

Miles/Tracy and Our-Street had been relatively quiet for the two-and-a-half months since FinancialWire, in an exclusive article, publicly unmasked the mysterious and elusive proprietor, following which he posted a confession and acknowledgement at http://www.our-street.com/about.htm

Among the companies targeted by Miles, who has himself been accused by the U.S. Securities and Exchange Commission as a fraudulent pumper-and-dumper while winning accolades from the Dow Jones (DJ) newswire and other media, are H-Quotient (OTCBB: HQNT) and Circle Group Holdings (CXN). As it turns out, Miles' repertoire involved even more companies than FinancialWire described, now including, by his own admission, Applied Digital Solutions (NADSAQ ADSX) and others.

H-Quotient "blew his cover" by suing him under his real name and in Klamath Falls, Oregon, rather than London, where he had misled his short-selling "followers" and others to believe he lived.

Other companies he has now listed as having been involved with, in addition to Ballyhoo Capital Ventures, Casinovations, Inc., Global Foods Online, Inc., ICV, Inc., Pratt Wylce & Lords Ltd., Sea Shell Galleries, and Wahoo Capital Ventures, and Bionet Technologies, Inc. (BNTK), all failed, are Casino Journal Publishing (OTCBB CJPG), Redneck Foods (RDNK), Level Best Golf (LBGF), and Global Diversified (GDVI).

Miles also acknowledged he has operated under the guise of an ordained minister for the purposes of writing a book, and as Rev. Timothy Miles, has represented in a site at http://www.themeaningoflife.net that he has been gifted through a crystal with a text that he believes is a true "message from God," and that he is proprietor of another quirky website at http://www.otcart.com where he combines his "knowledge" of the over the counter stock market with his special knowledge of "fine art."

The ex-stockbroker and campaigner against "corporate evil-doers" is anything if not versatile.

After acknowledging his "mistakes" that resulted in SEC charges of fraud and corruption, and his failed efforts at running public companies and trading stocks, Miles/Tracy inexplicably stated that this background led him to believe he has the "skills necessary to conduct superior due diligence."

In his confession and acknowledgement, Tracy/Miles stated "there is more and more speculation on the message boards about the person or people behind Our-Street.com and a lot of speculation about who controls or influences it as well.

"My name is Timothy Miles. I am in my mid 50's so I have a lot of experience to draw on as I conduct my research.

"Since the early 70's I have been involved in business management in a wide variety of industries, and almost always with companies grossing less than $100 million per year. I have been involved in turn-around situations as well as start ups and been both a consultant, a hired gun and an entrepreneur. As a result of my experiences, I have developed the ability to analyze a company, its personnel and its activities with a certain degree of accuracy.

"I have been an investor since the late 70's and in 1988 I entered the securities industry on a full time basis as a stock broker. I had a pre-existing idea of what the brokerage business was like and was shocked to discover it was nothing like I imagined it to be. I innocently walked into the offices of Power Securities, one of the more notorious penny stock brokers and was both shocked and horrified to discover what this end of the business was really like. I left there within about a month and found a more suitable firm where I could actually work for my clients and not against them.

"I discovered over time that the best way to make my clients and myself money was working with companies as they were going public and in 1993, I left the brokerage business and started Pratt, Wylce & Lords, a public company that focused on helping small companies enter the public market. Through this company we helped several companies enter the public market, among them Applied Cellular Technologies (now Applied Digital Solutions NADSAQ ADSX) and Gaming Venture Corp (now Casino Journal Publishing OTC BB CJPG). I also worked with a not so successful company, Level Best Golf LBGF.

"In 1996, I shut down the company's operations as a result of my personal failures due in large part to my inability to comply with the SEC's stringent 40 Act requirements. Organizationally wise, I had bitten off far more than I could chew and I knew it.

"Throughout this entire period, I never had a blemish on my record as a stock broker or as a consultant but it was in 1999 that I made a mistake I am not at all proud of. I was working with a company called Auric Enterprises, Inc. and had structured a 504 offering for the stock. A number of my friends wanted to invest but lived in California and Ohio, states that had not been approved for the offering. I was told that if they drove to a neighboring state like Nevada where the offering was approved, they could invest. Rather than having them do this, I made the mistake of telling them instead to put down addresses in approved states and filed these inaccurate documents with the NASD. I also was not accurate as to the relationships of some investors as well. This was wrong to do and I deeply regret having done it. I have admitted this to the SEC in testimony and stand fully accountable for my actions.

"Subsequent to these actions, Auric executed a reverse acquisition with Freedom Golf Corporation and when they became dissatisfied with their investor relations people they called me and asked me for referrals. I didn't have any but asked around and was given the names of two people who were supposed to be honest who I then referred to Freedom Golf. What followed was a significant promotion based upon false and/or misleading information and an SEC investigation," he noted.

The SEC's charges disagree, saying that Miles/Tracy actually paid for the scam hype, and failed at the time, as apparently he fails yet today, to divulge that fact. The SEC also said Miles/Tracy and his co-conspirators "reaped profits of more than $500,000" out of the fraud.

The case is used as "class materials" in presentations on stock fraud by John Reed Stark, Chief of the Office of Internet Enforcement in the Division of Enforcement of the SEC, at http://www.johnreedstark.com/ClassMaterials/LitigationReleases/freedomgolf.htm.

As to his other activities, he admits to having "built a website which deals with another love of mine. It is OTCart.com. I have developed a real time quotation system for limited edition art. It is very slow catching on but I remain optimistic," and to "have built another website which is connected to a novel I am writing. I have been an ordained Christian minister since 1970 and the book is spiritual in nature. It is about the meaning of life and the website is appropriately titled www.themeaningoflife.net .

Miles / Tracy says he is "disillusioned about the corruption that continues to infect the market and those who involve themselves in it and I certainly am not proud that I found myself swept up in it to the point where I personally did things I knew were wrong."

Other companies that Our-Street has gone after include Silverado Gold Mines, Ltd. (SLGLF), Epixtar Corp. (EPXR), Aqua Vie Beverage Corporation (AQVB), ChampionLyte Holdings, Inc (CPLY), BEVsystems Interenational, Inc. (BEVI), DataMeg, Inc. (DTMG), Kingdom Ventures, Inc. (KDMV), Imaging Diagnostics, Inc. (IMDS), SHEP Technologies, Inc. (STLOF), EdgeTech Services, Inc (EDGH), Nutra Pharma Corp. (NPHC), Verdisys Inc. (VDYS), Calypte Biomedical Corporation (CYPT), Galaxy Energy Corp. (GAXI), PowerChannel, Inc. (PWRC), US Global Nanospace (USGA), and Universal Guardian Holdings (UGHO).

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