Summary and review of some necessary facts:
courtesy of Sparks100 post 38806
1. Under Robert Rhodes (CEO before David Walters who was CEO before
Steven Humphries who was CEO before the temporary position of Mel
Robinson who was CEO before our current CEO, Charlton Coates), SEVI
(before SEVO before SSEV before HLNT) was involved with PIPE funding
from NIR, from about 2004 to 2007 where Walters replaced Rhodes. Part
of that funding was paid back by the typical process of converting of
Notes to stock for NIR who turned around and sold them for immediately
large profits (often times with the help of the CEO who would pump the
stock for a better price for NIR after the conversion was done).
2. During Rhodes tenure as CEO, on OCT 17th, 2006, SEVI became a
delisted company with the SEC and discontinued reporting under the
SEC rules.
3. About the 1st of March, 2007, Walters replaced Rhodes as CEO and
Rhodes remained on as a director. It is alleged here by HLNT in its
Counter Claims suit that this was with the knowledge and approval of
NIR and for the purpose of furthering NIR's conversion practices.
4. Under Walters, on or around SEP 12th, 2007, SEVI was changed to
SEVO and underwent a 30 to 1 Reverse Stock split, which allowed the
further conversion of Notes by NIR and their immediate sale for huge
profits. Additionally, under Walters, NIR continued to fund SEVO with
more Convertible Note purchases.
5. During the same period of time, NIR funded Dealers Advance (DLAV
which later became DLAD), of which Steven Humphries was the CEO.
6. By 2008, although NIR still was funding DLAD, NIR had become some
what concerned about the ability of DLAD to absorb the Notes conversion
which presented a problem for NIR. During the latter part of 2008,
Humphries became aware of SEVO, which apparently had the ability to
still allow the NIR Notes conversion.
7. During the latter part of 2008, NIR, Walters and Humphries worked
together to create a deal in which the SEVO Notes (which were being
converted and only about 2.5 million were left) would be spun off
to a company owned and or controlled by Walters, along with the opera-
tional part of SEVO, and a payment for the deal to walters in cash and
in stock, leaving a shell for Humphries. In the process, Walters would
resign as CEO of SEVO. Humphries was then to transfer the DLAD Notes,
most of which had not been paid, and were valued at one time at around
$10.5 to $10.8 Million and a short time later, revalued to about $11.3 Million
(this included the original unpaid notes and unpaid interest). This was done
in accompanyment with the transfer of a computer software asset that was
like wise valued at $10.5 to $10.8 Million and also later adjusted to about
$11.3 Million. These transactions took affect with the full knowledge and
approval and NIR and Ribotsky on the 31st of DEC, 2008. Walters resigned,
Humphries became the next CEO of SEVO.
8. NIR stopped funding SEVO and DLAD about OCT or NOV 2008. NIR then
declined to fund SEVO during 2009. In the meantime, Humphries was
looking for ways to increase the value of the empty shell that he had
become the CEO of. He did this by contacting and inducing HHI and
HOSS companies to commit to a stock swap/purchase agreement that was
completed about August 2009. The stock swap was never actually fulfilled.
9. The FBI decided to do a sting operation of Humhries during the
first half of 2009, and by August 2009, had started the actual operation.
10. SEVO undergoes a 500 to 1 reverse stock split and becomes SSEV,
March 3rd, 2009.
11. Humphries, in the need for cash, tries to sell the "bogus" computer
software asset to another company unrelated to SSEV, from his company,
DLAD. This is done between March 2009 and June 2009?
12. Humphries begins forging signatures on documents that allows him
to sell convertible Notes to other PIPE type companies, the proceeds
of which are not documented in SSEV's records, September 2009 to
January 2010.
13. Humphries is unknowingly caught in the sting operation by the FBI,
who still continue the operation. Caught at the same time is Epstein,
a director/officer of SSEV working with Humphries. This occurs in the
period of August to October 2009.
14. Humphries signature forgings are discovered in FEB 2010. By the 1st
of March, he is allowed to resign and an agreement is made with Foster and
Robinson to waiver any legal proceedings in exchange for certain require-
ments of Humphries. On the 3rd of March, Humphries, his son, and Epstein
resign, Mel is named interim CEO. Because of the relatively short time frame
in which this happens, Humphries is not able to dispose of the documenta-
tion about his dealings with NIR. Some of this documentation is discovered
over the next couple of weeks.
15. During March of 2010, many things happen. Charles Coates becomes a
Director and the new CEO of SSEV. NIR, through its company New Millenium,
submits requests for the conversion of Notes as per its typical contract. Based
upon the information that has already been found, SSEV refuses. The head-
quarters of SSEV is moved from Houston, Texas to Farmington, Arkansas.
NIR, through New Millenium, et all, sues SSEV for Breach of Contract
for not converting the Notes as requested.
16. The month of April, 2010 is also an exceptional month. The company
stock symbol is changed from SSEV to HLNT. More documentation is being
uncovered that shows the extent of dealings between NIR, Walters and
Humprhies.
17. The FBI unofficially completes the Humphries/Epstein sting operation
in May 2010.
18. In June, HLNT files a Counter Claims suit against NIR, etal.
19. Due to a failure to abide by the agreement, first Charles Foster, then
Mel Robinson, sued Humphries for breach of the agreement that he signed
(back in February) during July and August, respectively.
20. October 7th, 2010, the SEC and FBI announce the indictments of
Humphries and Epstein based upon the sting operation.
21. At the end of November, 2010, NIR amended its suit to reference DLAD
along with SSEV for the Notes. HLNT amended its Counter Claims suit in
December, but had to resubmit the amended filing in January 2011 with
sensitive information redacted (blackened out). In March, 2011,
NIR filed its Motion to dismiss HLNT's amended Counter Claims suit
and both companies filed additional responses to each others responses.
This information can be found in the case filings for HLNT vs NIR on the New
York State Supreme Courts SCROLL system, the SEC Case against Humphries
through PACER and corporate filings that appear on Pink Sheets. If you want to
review the documents and need links or directions on how to access the informa-
tion, please let me know. Some dates on this review are estimated with as much
accuracy as possible as they are not provided in the source documents
