Circle Group Holdings Inc (CXN)

[olico ™]

May 9, 2005 (FinancialWire) "Nick
Tracy," whom FinancialWire unmasked in an expose a year ago as no stock
hero, but rather a never-do-well individual named Timothy Miles charged by U.S.
Securities and Exchange Commission with stock fraud and charged by detractors as
being a sloppy investigator who despite picking some bad apples, has almost
never had his facts straight, says he's giving up his website,
"Our-Street.com."

Whether that is true or another subterfuge, the irrepressible self-appointed
"scam cop" has his SEC trial coming up in June. The other two
individuals charged with him have also reportedly left the country. He is
appealing a ruling against him in a case involving Circle Group Holdings (AMEX:
CXN), and he continues to claim credit for "discovering" a phone scam
involving six companies, including American Multiplexer Corp., Donini Inc.
(OTCBB: DNNI), 5G Wireless Communications Inc (OTCBB: FGWC), Innovative Food
Holdings Inc., and Power3 Medical Products (OTCBB: PWRM) and their shareholders
which the SEC recently said was in reality "discovered" and reported by
the largest number of investors in its history.

True to his history of questionable diligence, the now apparently
"former" Our-Street" proprietor has continued to suggest that the
companies themselves were involved in the scam long after the SEC had said none
of them were found to have been involved.

Although Miles had reveled in his oft-stated position that he is
"judgment-proof,: in an essay entitled, "Thinking of Suing Our-Street?
Read This," he stated that on May 5 he had handed off his ownership to
"new owners." Like "Nick Tracy" before FinancialWire unmasked
Miles, they are anything but transparent.

A search of the site did not turn up any information as to who the "new
owners" are, or their respective agenda or backgrounds. Perhaps more
interestingly, the site still continues what many believe are actionable,
libelous content, and if there are indeed "new owners," it is not clear
if these "new owners" enjoy the same apparent lack of assets that
emboldened Miles to claim he is judgment proof.

After the Illinois court loss, Miles had taken down most of the comments about
Circle Group Holdings and Halpern, as well, although he did add a statement
after the judge's decision, when Miles had posted "Freedom of Speech IS
DEAD," that could be considered libel anew: "That the courts would allow
someone to invade and silence this home of unbiased and independent due
diligence simply because some corporate criminal doesn't like the truths being
told about him is wrong on many levels and has consequences beyond this
website." It appears that he is still referencing Halpern.

Illinois Judge Susan Zwick, in her ruling against Miles, however, pointed out to
Miles that "the same constitutional principles that guarantee free speech
also work to insure that one who engages in such speech will stand behind
it." The judge's order also pointed out numerous conflicting claims and
statements made by Miles in filings and affidavits that were not supported by
facts or evidence.

Miles has since publicly solicited help on legal fees via PayPal or credit card.
He did not state in his solicitation whether any of the funds might also be used
in his defense of fraud and corruption charges brought against him by the SEC.
He also did not indicate whether he would provide any reporting to the public
regarding received contributions.

Meanwhile, Miles said he plans to complete a religious novel on "the meaning
of life," which he links off http://www.themeaningoflife.net , and has a new
financially-oriented website, http://www.scamspotting.com , which lists among
his credits, purported exclamatory statements from FinancialWire, and even the
SEC: "Thank you very much." The latter is the statement that the SEC
makes in its canned response to anyone who writes its enforcement division.

One year ago, FinancialWire unmasked the elusive, mysterious proprietor of
Our-Street.com, who had claimed to be Nick Tracy of London, as Timothy J. Miles,
of Klamath Falls, Oregon. A day later, Miles posted his admittance to his true
identity, and a more or less confession, including the fact that he was being
sued for fraud and corruption by the SEC.

"Securities and Exchange Commission v. C. Jones & Company, Carter Allen
Jones, Timothy J. Miles, Gaylen P. Johnson, and Jonathan Curshen, Civil Action
No. 03-WM-0636(PAC) was filed in the District of Colorado May 9, 2003.

Sources tell FinancialWire that Jones, Johnson and Curshen have left the country
ahead of the trial currently set for this June, and now it appears Miles has
followed their lead, although he continues to exist somewhere in the ether.

Observers are now wondering if Miles will appear in the SEC trial or any of
those that are now closing in on the man who boldly posted "Thinking of
suing Our-Street?", suggesting he was somehow prosecution proof and could
say anything he wanted to about anyone, whether libelous or not, under the guise
of "Freedom of Speech."

Our-Street has made some "believers," mainly by picking small
questionable penny stocks with a boatload of promotions behind them. Over time,
many invariably went out of business or ran into regulatory trouble, which
Our-Street then claimed responsibility for. Some were shorted to death after
becoming a "featured" company in Our-Street, meaning Miles seemed to
have found a way to turn his sloppy investigations and questionable reports into
self-fulfilling prophecies.

Something like throwing blindfolded at a dartboard with a giant center target
which someone moves in front of the dart when it doesn't just accidentally hit
the middle.

Such candidate companies are plentiful indeed. In just over two weeks,
FinancialWire has unearthed and published reports on almost 60 small public
companies about whom unnamed "third party" shareholders are running
promotions, often pocketing profits on their own stock sales as unsuspecting
investors ante up in a kind of pyramid stock scheme.

A year from now, how many of these will still be around? It isn't
rocket-science.

Picking "losers" is easy, however, using Our-Street's methodology,
according to observers: just throw manure and see where it splatters. Miles
welcomes responses from his targets, but invariably brands them as
"lies."

Before heading to the relatively safe haven of Slovenia, Miles' unmasking
included revelations that he is a former broker and self-professed failed public
company executive, who also operates websites devoted to art auctioning and a
mysterious otherworld crystal his site says has revealed to religious leaders
around the world "the meaning of life."

Slovenia, a relatively new country, is said to have only minimum The Hague
conventions, meaning dealing with or extradicting individuals in that country
are difficult if not virtually impossible for anything short of a capital crime.

In his recent post admitting to his move to Slovenia, Miles said one of the
things on his list of "things I want to do before I die," is "live
in Europe." He said other things on his list, like "preach sermons and
touch people with them including in a Pentecostal church, and "become an
international crime fighter," are now "done."

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 OTCBB: 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 It was at this site where he
revealed his "insider" knowledge about the mysterious "crystal."

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."

In February, Miles last wrote to FinancialWire, after first berating the
newswire for covering his (short)comings, and as now seems to be the case, his
goings, "I am empowered and inspired to do good for the market and to expose
stock fraud and corruption in the market.

"I genuinely want to suggest you find a church and get in touch or back in
touch with God and Jesus," adding it's a "good thing God forgives me my
shortcomings."

FinancialWire replied that Miles' irrationality was mindful of Judges 15:16,
"inasmuch as we feel as though we have been slain by the jawbone of an Ass."

Our-Street's publisher didn't respond, leaving reporters to infer the site's
proprietor has no sense of humor that we are aware of.

Observers believe the market hasn't heard the last of Miles. Whether the SEC has
heard the last of him will be determined when his trial comes up in June, or if
and when his appeal of other lawsuits runs out.

For up-to-the-minute news, features and links click on
http://www.financialwire.net

FinancialWire is an independent, proprietary news service of Investrend
Information, a division of Investrend Communications, Inc. It is not a press
release service and receives no compensation for its news or opinions. Other
divisions of Investrend, however, provide shareholder empowerment platforms such
as forums, independent research and webcasting. For more information or to
receive the FirstAlert daily summary of news, commentary, research reports,
webcasts, events and conference calls, click on
http://www.investrend.com/contact.asp

The FinancialWire NewsFeed is now available in multiple formats to your site or
desktop, free. Click on: http://www.investrend.com/XmlFeeds?level=268



URL: http://www.financialwire.net