DD Support Board and Research Team

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Update to SEC litigation against Greenstone Holdings Inc

This Company casts a HUGE web

http://www.sec.gov/litigation/litreleases/2011/lr21863.htm

U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21863 / February 22, 2011
Securities and Exchange Commission v. Greenstone Holdings, Inc. et al., Civil Action No. 10-cv-1302 (S.D.N.Y.)
SEC Charges Attorney with Fraud for Issuing False Legal Opinion in Connection with Illegal Stock Offering

On February 10, 2011, the Commission amended its complaint in SEC v. Greenstone Holdings, Inc., et al., 10 civ. 1302 (S.D.N.Y.), to add as a defendant Virginia K. Sourlis, a securities lawyer. According to the amended complaint, in early 2006, Sourlis intentionally authored a materially false and misleading legal opinion, which Greenstone used to illegally issue millions of shares of stock in unregistered transactions. Among other things, Sourlis falsely described promissory notes, note holders, and communications with those holders, none of which actually existed. The SEC alleges that, contrary to Sourlis’ fraudulent opinion letter, the stock issuance did not qualify for an exemption from registration under the federal securities laws.

The amended complaint alleges that Sourlis violated Sections 5 of the Securities Act of 1933 (the “Securities Act”) and Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder and aided and abetted defendant Greenstone’s violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The SEC seeks injunctive relief and financial penalties, disgorgement, and a penny stock bar from Sourlis.

http://www.sec.gov/litigation/litreleases/2011/lr21863.htm

http://www.sec.gov/litigation/complaints/2011/comp21863.pdf

B. Virginia Sourlis January 11,2006 Opinion Letter

41. In or about January 2006 --originally as part of the plan to illegally issue the 12.3 million Greenstone shares discussed above --defendants Pierson and Starczewski retained defendant Virginia K. Sourlis to write an opinion letter concerning Greenstone's ability (and Greenstone's transfer agent's ability) to issue certain unrestricted shares of Greenstone stock to Power Network, MBA Investors, Starr Consulting, and YT2K, Inc. (the "Entities"), based on the conversion of certain alleged promissory "notes" in the total principal amount of $71,339.65.

42. On or about January 11,2006, Sourlis provided Pierson and Starczewski with the requested opinion letter, authored and signed by Sourlis (the "Sourlis Opinion"). The Sourlis Opinion falsely concluded and opined that "the Shares underlying the Note may be issued to [the Entities] and/or its designees without a legend pursuant to the Securities Act of 1933, as amended" (emphasis in original). This conclusion was predicated upon the following materially false and misleading statements.

43. In an attempt to establish that the securities at issue had been held for two years, the Sourlis Opinion falsely stated that the alleged convertible notes originally "were issued by [Auto Centrix] to various vendors on or before January 10,2004," in exchange for $71,339.65 in outstanding "payables" to those vendors for corporate expenses incurred originally by Auto Centrix, including, for example, outstanding payables to "American Express" and "Verizon.,; In fact, Auto Centrix never issued any such notes to "vendors."

50. Pierson and/or Starczewski paid Sourlis at least $5,000 for the Sourlis Opinion.


Other important names included in this litigation:

HISAO SAL MIWA
JOHN B. FROHLING
DANIEL D. STARCZEWSKI
JOE V. OVERCASH, JR.
FRANK J. MORELLI III
THOMAS F. PIERSON
JAMES S. PAINTER, III
VIRGINIA K. SOURLIS


ACTIVE STEALTH, LLC = Richard Muller
BAF CONSULTING, INC. = Frank and Barbara Morelli
BLUEWATER EXECUTIVE CAPITAL, LLC = Braxton Jones
EMERGING MARKETS CONSULTING, LLC = James S. Painter
JDT CONSULTING INC = Paul R Yontz Jr
KCS REFERAL SERVICES, LLC = Braxton Jones
MBA INVESTORS, LTD. = Thomas Pierson
NEW AGE SPORTS INC = Dominic and Ashley Martinez
POWER NETWORK, INC. = Joe V. Overcash
PROJECT DEVELOPMENT, INC. = Daniel Motsinger
SEVILLE CONSULTING, INC. = Kelli M. Myers
STARR CONSULTING INC = Daniel D Starczewski
TUSCANY CONSULTING, INC. = Joe V. Overcash
YT2K, INC. = Richard Muller



Companies that can be linked to some of these people

Mammoth Energy Group, Inc (MMTE) - Joe V. Overcash and Daniel Starczewski

Plateau Mineral Development, Inc. (PMDP) - Joe V. Overcash

Cheyenne Resources Corp. (CYRS) - Daniel Starczewski, Barbara Morelli, Richard Muller, Thomas Pierson, Kelli Myers, Angela Martinez, and Daniel Motsinger

View Systems, Inc. (VSYM) - Daniel Starczewski, Barbara Morelli, Angela Martinez, Kelli Myers, Richard Muller, and Joe Overcash

Global Resource Corp (GBRC) - Daniel Starczewski

Salon City Inc. (SALN) - Daniel Starczewski and Richard Muller

Applied Wellness Corp. (AWLL) - Thomas Pierson and Joe Overcash

Savvy Business Support, Inc (SVYB) - Virginia Sourlis

Left Behind Games (LFBG) - Virginia Sourlis

GreenCell Inc - James Painter

Reflect Scientific, Inc. (RSCF) - James Painter

Vision Industries Corp. (VIIC) - James Painter

Puradyn Filter Technologies (OTC BB (PFTI) - James Painter

Oramed Pharmaceuticals (ORMP) - James Painter

General Automotive Company (GNAU) - James Painter

BrainStorm Cell Therapeutics (BCLI) - James Painter