Treaty Energy Corp. (fka TECO)

[smithsd7]

Important DD for all investors

From the merger Agreement:
http://www.sec.gov/Archives/edgar/data/1075773/000135448808002139/ex101.htm

EFFECT ON CAPITAL STOCK; SURRENDER OF CERTIFICATES AND PAYMENT
ARTICLE II
"with 397,440,000 of such shares to be issued to TK Holdings; and 16,560,000 of such shares to be issued to Osprey Partners’s designee, Michael A. Mulshine, constituting 90% of the issued and outstanding common stock of ARGY."

The A/S was 500,000,000 (Note: It is now 750,000,000)
O/S was.....460,061,553
.........................................Shares
TK Holdings.......................397,440,000....86.39 % of O/S
Osprey Partners..................16,560,000.....3.6 % of O/S
(designee, Michael A. Mulshine)

---------

From the 10-k filed 5/15/2009:
http://www.sec.gov/Archives/edgar/data/1075773/000135448809000366/treaty10k.htm
TK Holdings, LLC (a.k.a. Tri Koon Holdings)
310 North Willis, Suite 212,
Abilene, Texas 79603

---------

I believe that the fictatious name "TK Holdings, LLC"
http://sunbiz.org/scripts/ficidet.exe?action=DETREG&docnum=G09013900355&rdocnum=G02007900411
used in the 10k, instead of the real name "Tri Koon Holdings, LLC", was in order to hide the fact that the Alonzo's and Blackburn were the principles involved with TECO.(an example of smoke and mirrors, not transparency)

If you look up TK Holdings, LLC on the Texas site
https://ourcpa.cpa.state.tx.us/coa/servlet/cpa.app.coa.CoaGetTp?Pg=tpid&Search_Nm=TK%20Holdings%20&Button=search&Search_ID=10437185415
the Alonzo's and Blackburn don't show up, because its the wrong company.
It's only when you look up Tri Koon Holdings, LLC or TK Holdings(Fictitious Name Search) on the Florida site, that the curtain is lifted.

http://www.sunbiz.org/scripts/cordet.exe?action=DETFIL&inq_doc_number=L08000094414&inq_came_from=NAMFWD&cor_web_names_seq_number=0000&names_name_ind=N&names_cor_number=&names_name_seq=&names_name_ind=&names_comp_name=TRIKOONHOLDINGS&names_filing_type=

10/03/2008 -- Florida Limited Liability:

Electronic Articles of Organization
Dated October 03, 2008
The officers of Tri Koon Holdings were:
Paul Alonzo
Ronald Blackburn
Carolyn Alonzo
--------------

Why would they want to hide the involvement of the Alonzo's and Blackburn?

UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF LOUISIANA

IN RE: PHOENIX ASSOCIATES LAND SYNDICATE, INC.
CASE NO. 09-11743
CHAPTER 7
DEBTOR

WILBUR J. “BILL” BABIN, JR., IN HIS
CAPACITY AS TRUSTEE OF THE
BANKRUPTCY ESTATE OF PHOENIX
ASSOCIATES LAND SYNDICATE,
PLAINTIFF

"Between June 10, 2005 and June 10, 2009 (the four year reach-back period under Nevada law), Phoenix distributed in excess of $6,000,000.00 to its three principals, Paul Alonzo, Carolyn Alonzo, and Ronald Blackburn. At the same time that it was distributing these millions of dollars to its principals, Phoenix submerged sharply into deeper levels of debt. Schedule F of the Debtor’s bankruptcy schedules tallies a total indebtedness at $20,135,813.313 (Bankruptcy Case Doc. 39). The Trustee has determined that the distributions to the Alonzos and Blackburn were paid at the expense of its and its companies’ unpaid creditors, and constituted fraudulent conveyances and unlawful dividends under Nevada and federal bankruptcy law.

Since 2003, creditors have been pursuing Phoenix. According to the Statement of Financial Affairs, at least forty creditors have filed suits in various courthouses across the country and are seeking collection of their claims."
---
Background links for Ronald L Blackburn:

Toledo Blade Article May 19, 1990
http://news.google.com/newspapers?nid=1350&dat=19900519&id=6g4VAAAAIBAJ&sjid=EgMEAAAAIBAJ&pg=6853,5403156

Toledo Blade Article September 10, 1999
http://news.google.com/newspapers?id=5IYUAAAAIBAJ&sjid=9QMEAAAAIBAJ&pg=6727,3477522&dq=former-sylvania-man-sentenced-to-37-months-in-income-tax&hl=en

Federal Bureau of Prisons
http://www.bop.gov/iloc2/InmateFinderServlet?Transaction=NameSearch&needingMoreList=false&FirstName=Ronald&Middle=L&LastName=Blackburn&Race=U&Sex=M&Age=63&x=81&y=10
--------------------------------
The old officer list of TREATY ENERGY CORPORATION:
GARY E DUNHAM
DAVID HALLIN
RONDA HYATT
RANDALL NEWTON

Blackburn fired the old management as mentioned in these TECO documents filed with the sec on July 8, 2009...

http://www.sec.gov/Archives/edgar/data/1075773/000111650209001454/treaty_171.htm
http://www.sec.gov/Archives/edgar/data/1075773/000111650209001454/treaty_172.htm
http://www.sec.gov/Archives/edgar/data/1075773/000111650209001454/treaty_173.htm
--------------
Blackburn dissolved Tri Koon Holdings, LLC as recorded in this document:
11/19/2009 -- LC Voluntary Dissolution
on the Florida site.

http://www.sunbiz.org/scripts/cordet.exe?action=DETFIL&inq_doc_number=L08000094414&inq_came_from=NAMFWD&cor_web_names_seq_number=0000&names_name_ind=N&names_cor_number=&names_name_seq=&names_name_ind=&names_comp_name=TRIKOONHOLDINGS&names_filing_type=

If the notation in Blackburns own hand is accurate(and I see no reason to believe that it is not) then he owned 100% of Tri Koon Holdings interest in TECO at that time.(397,440,000 shares....86.39 % of O/S)

And why did the 10K(dated Dec 31, 2009) list TK Holdings, LLC as a beneficial owner when it was already dissolved? The rightful entry of beneficial owner should have been Ronald L Blackburn.

I see that they are finally using his name, instead of the curtain of "TK Holdings".


Per the 10k for 2010
http://www.sec.gov/Archives/edgar/data/1075773/000135448811001208/0001354488-11-001208-index.htm
he owned 67,353,946. Some of those shares have gone for acquisitions ( I haven't tallied them, but definitely not 330,086,054), he seems to be selling hand over fist. Or maybe alot of them were converted into voting Preferred shares that would suck out a lot of the profit from Treaty, should there ever be any. The common shares that were converted would probably go to the treasury, most likely to be sold by Treaty, causing further dilution and suppressing the PPS further.
[/color]

--------------------------------
--------------------------------
Background links for Andrew V. Reid, Treaty's CEO

Excerpt from:
http://www.nola.com/business/index.ssf/2010/12/new_orleans_newest_public_comp.html
---
History of fraud

Micro-cap stocks, or companies with fewer than 500 investors and $10 million in assets like Orpheum Property, don't have to make filings with the U.S. Securities and Exchange Commission. No filings have been made about the Orpheum merger or name change.

The SEC notes that many micro-cap stocks are legitimate businesses, "but the lack of reliable, readily available information about some microcap companies can open the door to fraud." Fraud perpetrators often pay promoters to tout their stock and issue news releases that are exaggerated or untrue, the SEC warns.

The Financial Industry Regulatory Authority's database indicates that Reid is no stranger to securities fraud.

In 2002, while working for Williams Financial Group in Dallas, Reid took a $10,090.58 check from a customer and deposited it in his own account rather than forwarding it to the firm. When Reid failed to respond, the National Association of Securities Dealers barred him from association with any member firm.

In 2004, Reid was accused of unsuitable trading and investing, fraud, negligence and violating state and federal securities regulations that caused $6 million in damage to investors. After arbitration, the case was settled in 2006 for $35,000.

In 2003, Reid's employer, Corporate Securities Group, filed a complaint alleging "unsuitable investment" in municipal bonds that caused more than $100,000 of damage. Arbitration is pending.

In 2001, while working for First Allied Securities in San Diego, Reid was accused of having an unexplained debit balance of $60,321.09. The case was settled for $290.

In 2001, GMS Group of New Jersey accused Reid, who worked for the firm, of making "unsuitable recommendations, misrepresentations and breach of contract in connection with their investments in certain high yield corporate debt and other securities" resulting in damages of $200,000. The case was settled in arbitration for $106,275.
---

Excerpts from:
http://www.nola.com/business/t-p/index.ssf?/base/money-5/1292739703145850.xml&coll=1

"The Financial Industry Regulatory Authority Inc., the industry group that regulates securities brokers, has seven closed securities investigations on file for Reid alleging things like misrepresentation, fraud, negligence, breach of contract, unsuitable trading and investing, violating securities regulations and depositing a check meant for the firm into his personal account."

"I was never found to be at fault for harming any investors," Reid said, a statement which conflicts with the official account in his 22-page report.
------------------------------------------------------------------------
Note: Michael A. Mulshine is also involved with Orpheum Property Inc.
http://www.reuters.com/finance/stocks/companyOfficers?symbol=PLFF.PK

and Phoenix Associates Land Syndicate, Inc.
http://findarticles.com/p/articles/mi_pwwi/is_200605/ai_n16350121/

------------------------------------------------------------------------
S8 filed with the SEC on 2/23/2011 where 100,000,000 shares were registered for sale for legal defense purposes.
http://www.sec.gov/Archives/edgar/data/1075773/000135448811000585/0001354488-11-000585-index.htm

Excerpt:
"As permitted by the provisions of the Nevada Revised Statutes (the "NRS"), the Company has the power to indemnify any person made a party to an action, suit or proceeding by reason of the fact that they are or were a director, officer, employee or agent of the Company, against expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by them in connection with any such action, suit or proceeding if they acted in good faith and in a manner which they reasonably believed to be in, or not opposed to, the best interest of the Company and, in any criminal action or proceeding, they had no reasonable cause to believe their conduct was unlawful. Termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, does not, of itself, create a presumption that the person did not act in good faith and in a manner which they reasonably believed to be in or not opposed to the best interests of the Company, and, in any criminal action or proceeding, they had no reasonable cause to believe their conduct was unlawful."

Link to some court documents concerning Treaty:
http://smithsd7spage.weebly.com/