Beverage Creations Inc. (fka BVRG)

[Stock]

87. Having counseled MVBY and Alchemy on their offerings to the Promoters, and knowing that the Promoters had previously engaged in a scheme to immediately sell their MVBY and Alchemy stock, by December 17, 2007 Czarnik knew or recklessly disregarded that the Promoters had a plan to distribute BCI stock.

88. On October 11, 2007, Czarnik received an email from Feeback: "We need to get everything prepared to upload on Pink Sheets. The plan is to start trading [BCI] in two weeks... Make sure our website has all the necessary components to accommodate, investor inquiries."

89. On October 15, 2007, Czarnik received an email from Feeback: "Stephen, FYI, Beverage Creations is ready to post on Pink Sheets once they have their symbol."

90. On November 29, 2007, Czarnik received an email from Feeback: "Stephen... Can we get Beverage Creations trading quickly?" Czarnik replied, "As we discussed numerous times, it is in the hands of NASDAQ and I have done everything that I can to speed this up."

91. On December 5, 2007, Czarnik received an email from Feeback: "Stephen... Carl and I need to have a discussion with the BCI folks on the delays with getting them up and trading."

92. January 15, 2008, Czamik received an email from Promoter Fleming: "Stephen... I do agree with Rob's earlier email in your representations about when Beverage Creations would be completed so we could initiate advertising and marketing the company along with providing them additional much needed capital... I am going to move forward with some firm this week to ensure these companies become publicly traded."

93. January 15, 2008, Czarnik received an email from Feeback: "Stephen... You need to call [a BCI officer] tomorrow and explain to him as to why they do not have a symbol... We told them last June that we would have them trading by August/September."

94. Prior to January 30, 2008, Czarnik counseled BCI in obtaining a NASDAQ ticker symbol. Czarnik also helped draft and file a disclosure document sufficient to be quoted by Pink Sheets.

95. On January 30, 2008, BCI issued a press release announcing that BCI had "initiated trading."

96. On January 30, 2008, the Promoters sold over 2.3 million shares in the public market for profits of more than $3 million.

97. From February 4, 2008 through March 6, 2008, one of the Promoters distributed over 1.75 million, full-color, promotional mailers nationwide touting BCI. The mailers boasted that "EARLY INVESTORS COULD MAKE A FORTUNE," rated BCI stock a "STRONG BUY," and predicted astronomical gains within the first year.

98. From February, 2008 to March 2008, www.theStockPic.com promoted BCI on its website and through spam emails.

99. The promotional scheme worked. In the three weeks after its January 30, 2008 debut — even as the Promoters dumped their shares on the public — BCI's stock price more than doubled from an intraday low of $.55 per share on January 30 to its February 21 close at $1.25 per share.

100. On February 20, 2008, in reaction to the Promoters' promotional activity, Pink Sheets discontinued its quotation of BCI stock, and gave BCI its lowest rating of "Caveat Emptor."


Doc 1 PDF file
http://viewer.zoho.com/docs/yY4cci