Pumps and Dumps has a report out on this scam
Allied America Steel Corp. Tries to Make An AAST of Investors
June 28, 2011: Schemers are constantly in flux, moving from one play to another sometimes one step ahead of the law, and sometimes to escape a scheme before it blows up. Such is the case with Jason "Jes" Black's newest venture, Allied American Steel Corp.
Black purports to sport a seemingly impressive resume. Unfortunately there's more (or less, depending on how you look at it) to this resume than meets the eye. Most recently he dedicated an entire year to the water filtration business in Los Angeles until he decided that it wasn't going to be easy money for him. He then abandoned his partner supposedly to go into the iron ore mining business. We think he's in the Pump & Dump business
The AAST management review portion of its website neglects to mention Black's Los Angeles failure, instead choosing to portray him as the person who "represents the combined experience essential to leading American Allied Steel: business economics, market analysis and response, raising capital, asset acquisition and development, and directorship and executive management." The website forgets to mention that Mr. Black also represents a figure who does not play by the rules and thus the perfect figure to execute a Pump & Dump.
Prior to his flirtation with water filtration, Black ran a little scam called Black Flag Capital. The AAST website does recognize his time at Black Flag, well sort of, referring to it as "New York's BF Capital". For the record, BF Capital is a legitimate firm in New York. Black Flag Capital was not. The AAST also refers to Black's roles at BF Capital as being Asset Manager and Managing Director. This is kind of true, although the roles were played at Black Flag not BF and his role also included janitor, as Black Flag was a one man show. The laughable sentence in the whole paragraph about Black is the one which claims that, "Over the four years with the alternative asset management company, he never had a down year." Oh really? Well then why is Black Flag out of business? Let's look at that.
In September of 2007, the National Futures Association (NFA), which is the regulatory organization for the U.S. futures industry, filed a complaint against Black Flag Capital and Jason Black for numerous violations of its rules. Amongst the allegations in the NFA's complaint are that Black misrepresented the location of its offices in effect suggesting that no offices for Black Flag existed. The NFA also charged that Black had either misrepresented it's assets by 6200% or misappropriated those assets, of which neither scenario would have been acceptable. The NFA also accused Black of failing to cooperate with its investigation, filing false disclosure statements, and failing to file financial statements. As Black Flag and Jason Black were such small potatoes, the NFA accepted a suspension of their membership as retribution for their malfeasances.
Curiously, the AAST website also refers to Black's experience as a Senior Currency Analyst at MG Capital, LLC a now defunct New York firm seemingly similar in nature to Black Flag. The problem here is that the NFA, to which membership is mandatory, only lists Black as having spent a month at MG Capital, never having progressed beyond a temporary license. Hmmmmmm.
Are you starting to see the picture?
Interestingly, we see nothing in Black's resume that would seem to suggest that he is qualified to go into the iron ore mining business. Perhaps that is why he brought Richard Tschauder on board as Senior Geologist, a position similar to ones he holds with several public mining companies in Canada and the Untied States. Unfortunately, we are unable to find any relationship Mr. Tschauder has had over the last dozen or so years with a successful company and since he was associated with giant Hecla Mining Company. Now Hecla existed far before Mr. Tschauder came to that firm but we are amused at the way that AAST makes Mr. Tachauder and newly minted AAST Senior Exploration Adviser, Erik Ostensoe, sound like they are the reason that Hecla is a $2 billion dollar firm.
Indeed, many of the public companies associated with Mr. Tschauder since his Hecla days are now either defunct or barely trading. One might get the impression that Mr. Tschauder is a hired gun used for the purpose of providing a facade of legitimacy to a public company. We do know that some of these companies have been the subject of Pump & Dump schemes. Mr. Tschauder has been publicly accused of filing false geologist reports in connection to now defunct Atlas Mining Company, against whom a since dismissed class action lawsuit was filed.
We're concerned about a company that reported total assets of $25 cash in the bank on it's 10-Q for the period ending March 31, 2011, having a market cap of $150 million, although we do recognize that the company reports having since received $99,961.50 from North American Iron Ore, Inc., " a British Columbia corporation" in a private placement of stock. The problem is that the British Columbia corporate registry does not list any such "North American Iron Ore". Excuse me? Is this a repeat of the shenanigans that ruined Jes Black at Black Flag Capital? Sure smells like it!
We're also concerned that a $150 million company has its corporate headquarters in a Pittsburgh virtual office. Well of course it does! Steel = Pittsburgh. It's a natural! We'd bet that Mr. Black has never set foot in that office. And why Allied America Steel instead of Allied America Iron? After all, you can't mine for steel. Yeah but doesn't the company sound more like U.S. Steel this way? The name, the Pittsburgh office...all important facades for a Pump & Dump.
With respect to the acquisition of 60% of the Lake Touladi Iron-Titanium property in Quebec, Canada, the deal is reportedly contingent on AAST's ability to cough up $1.6 million in exploration costs by May 7, 2012. The disturbing thing here is that under the agreement, AAST had to pay North American Iron Ore, Inc. $603,007 by June 8, 2011. In lieu of cash, the company issued issued 15,075,175 shares of stock to North American Iron Ore at a value of 4 cents per share. On June 8, the stock closed at $1.28.
This stinks to high hell!
Be careful out there!
www.pumpsanddumps.com
News 
Market Data 
Discover 
