Tell A Lynx – The Sly Lies of a Smooth Penny Cat – Written for Stock Patrol
On March 12, 2001 Telynx, Inc., now pink sheeted TLYN, and then trading on the OTCBB under the symbol TLYX announced that it had a version 2 of Telynx, its next generation inventory provisioning OSS solution software. On that day the stock was trading at around two cents a share. This is a continuation of the story that has baffled regulators and investigators for years, but which will soon come to a head.
Gabor S. Acs had, through an agreement with the three former remaining Board of Directors, entered into an agreement to acquire a 97% controlling interest in TLYN on May 15th, 2003 through the assumption of liabilities, $10 in cash, and an exchange of preferred stock in a subsidiary of PKH for the super majority voting stock of TLYN.
The Agreement was with Penny King Holdings Corporation, a now suspended Delaware Corporation, the same company which the SEC had for many years sought to obtain a judgment against for misleading press releases related to Quintek and eKnowledge Group, two other penny stocks in which PKH had acquired interests in years before without any money.
Eventually Acs had run out of money in attempting to defend himself against SEC attorney’s charges for violating Rule 17B and other parts of the Securities and Exchange Act. He had some serious drug problems and was suffering from delusions of grandeur which will be detailed later in the story, but mention of his illnesses has been made in other posts previous to this one.
The SEC eventually got default judgments in excess of $1 million against Acs and his alter ego PKH, who had resisted for several years any settlement offers by the SEC for $40,000. Acs insisted on his own innocence, but his other activities are what really caved him in. A default judgment is the same as admitting guilt according to the laws of the United States.
The shares of both QTEK and eKnowledge had been purchased on contracts and notes with zero interest. A testament to Acs’ salesmanship and twisted tongue at the time. PKH had already been in default of the $600,000 note payable to a Washington D.C. attorney for over two years by the time it had acquired the contract rights for control of TLYN. The one for $2,000,000 owed to eKnowledge Group was rescinded as the transaction was unwound as the SEC issued Wells notices to the principals several years earlier.
Acs had been trying to gain control of a publicly traded company to implement his glorious ne plus ultra business plan for several years. He had thought he could do what Ted Turner had done in building his fortune through the reverse merger process. He was seriously misguided. Reverse mergers were a thing of the past, but Acs was living too far ahead into his own future.
Reverse merging one non income producing shell into another shell amounted to nothing more than a bunch of flim-flam men flipping feckless fruits of fealtyless feathers of fakery with forward looking phony public pronouncements onto the consciousness of a befuddled investing public.
Ali Al-Dahwi had convinced Gabor S. Acs, fka The Penny King, and former President of PKH, and former Founder of the Free and Clear Foundations of America, Inc., the former parent of PKH, that Telynx, Inc. had some great software, excellent contacts around the world, contracts pending in Malaysia, Egypt, the United States and with several other large telecom companies, but that it was highly undercapitalized and needed about $15 million to implement its’ business plan.
By then the company had already gone through $30 million in capital during its previous three years of operation. Where this money went is the subject of an intense investigation which has been ongoing now for several years. It also had over $6 million in unpaid liabilities, which had accumulated over the previous four years, which in a sense created a tax loss carry forward of around $36 million, enough of an attraction to TPK to attempt to later merge the company with a profitable high tech firm, if only the debts could be reduced to more manageable levels. It wasn’t to be as planned.
Telynx version 2 was scheduled to begin shipping in March 2001 and supposedly marked a clear point of differentiation for Telynx in the OSS (Operations Support Systems) market. What the former Board failed to disclose to Acs, and to the general public, was that the software was not only undocumented, it had no copyright registered to the name of TLYN. The developers of the software had by the time PKH took over control of the company between May 15th, 2003 and some time around March 15th, 2004, scattered to the wind.
No single person who had been hired by the company could claim copyright ownership of the software known as Telynx v2. Who it was supposed to be shipped to was never mentioned and to date the company has not shipped anything except old records and buried others behind mountains of smokescreens and lies. There are now literally millions of documents and records’ missing from the company and where they are is the subject of several ongoing investigations by various authorities.
Whatever the software was supposed to do, such as offering a wide range of new functionality; open standard CORBA and Java architecture, as well as Application Programming Interfaces (APIs), was all mumbo jumbo to Acs, who had no more than a high school education and was not at all adept in high technology software programming or code.
But on or about June 1st, 2003, Ali Al-Dahwi shipped Acs, who lived in Reno, Nevada, the source code for all the technology “owned” by TLYN and in a phone conversation with him in San Antonio Texas told him to “guard it with his life”. It was the only real “asset” the company had at that time, according to Al-Dahwi.
He failed to tell Acs it was not copyrighted, registered or documented as being owned by Telynx., Inc, but he wanted the Free and Clear Foundations to indemnify him from any and all claims, liabilities and other potential actions against TLYN from stockholders, the government and other creditors. Ali Al-Dahwi was leaving the country; he was heading back to Iraq to help rebuild his native land after the US invaded it and decimated thousands of years of history in less than a week.
Supposedly, TLYN owed Al-Dahwi, the former Chairman and CEO of TLYN, over $700 thousand dollars, but later it was discovered that none of those liabilities could be clearly documented. At least not from the mountain of data that was in a storage unit, and in the former offices of TLYN in El Paso, Texas, or in all the records that Al- Dawhi shipped to Reno, Nevada from his personal residence in El Paso. Clearly this was becoming a case of interstate transportation of fraudulent materials, at the very least.
Telynx v2 was supposed to have the following highlighted qualities:
DSL Port Assignment Module - This module was supposedly designed to address local loop service. Specifically, this capability supposedly was added to provide additional support for DSL.
The press release at the time said that the ability to do port assignment for DSL service is a critical component of inventory in an automated provisioning environment. That may very well have been the case, but Acs had no clue what that meant, he had a different agenda for the company, an agenda which he thought Mr. Mataras, Mr. Safadi and Ms. Ochoa were all in agreement with, but it too turned out to be a complete sham.
Telynx v2 supposedly contained “A Work Queue Module” - This new module supposedly provided the ability to create service profiles. It was supposed to document all of the tasks associated with creating a particular service, then track their dependencies and their workflow. It was supposedly tied to the service request in the core product and could be integrated to order entry platforms as well as activation platforms.
When the source code, corporate records and software were given over to Mataras for safekeeping in a fiduciary capacity for and on behalf of PKH, Mataras, a person who claimed to be a software engineer with a degree in accounting and software management, and who had been retained by Acs in a legal and binding contract to sort out the software so it could either be sold to Hewlett Packard or some income could be generated to settle debts from a licensing agreement with HP, his comment was “Wow, I could sure use this software in my business”.
In addition to helping with the software issues, Mataras was hired by Advanced Capital Services Corporation, a wholly owned subsidiary of Acs’s alter ego company, PKH, to act as Corporate Secretary of TLYN some time around April of 2003, even before the ink was dry on the deal between PKH and the now in hiding former Board of Directors.
Acs had been introduced to Mataras through a money broker who lives in Indiana by the name of Phillip Duke. Duke and his wife ran a money brokerage firm and sent Acs hundreds of loan requests for such exotic and crazy projects as an $80 million resort hotel project in Aqaba, Jordan, a $90 million resort timeshare project in Belize, a $50 million Aero Medical project in Los Angeles, a $15 million Ice Hockey Center for children in New Jersey, a $60 million sports franchise for youth based baseball in Atlanta, and a $30 million startup funding request for Constant Innovation Technologies Corporation (CITC), a California company whose sole stockholder was none other than Paul Mataras, the person who now claims to be and represents himself to be the President of TLYN.
When Acs first met Mataras he was living in a tiny little room in downtown Oakland, running a candy store and newspaper stand for some Korean people who later kicked him out for failure to pay his rent. He also worked part time at the San Francisco Giants baseball stadium as an usher in the VIP section of box seats just behind the dugout.
Mataras had invited Acs and his three year old son, Connor Gabor, to a game shortly after Mataras had agreed to work as an agent for Acs and his seedily sprawling enterprises. He had personally seated them in the VIP section while Mataras sat on the steps watching the game and kept one eye on his VIP Patrons.
When Acs asked Mataras during the game how he could be planning a $30 million venture to buy the inside the park broadcasting and air rights to Major League Baseball Stadiums all over the country and be working as an usher, he responded by saying in a broken Greek accent, “It’s a part of the business plan, my partner and I are making VIP contacts with the baseball commissioner’s men, and we are really working under cover to gain knowledge of the inner workings of MLB.”
Not more than half an hour later after that interesting conversation, Barry Bonds hit a foul balled line drive that smacked Mataras on the forehead, almost knocking him unconscious and missing Connor by a few inches. Perhaps it was that concussion that led Mr. Mataras away from being a disciple of Acs, or perhaps it knocked some sense into him, no one knows. Mataras by that time already had set up his own agenda, despite the helping hand of Acs, who earnestly had been trying to assist Mr. Mataras get on his own two feet and graduate from his lowly minimum wage job as an Usher.
Acs thought he was helping Mataras get on his feet by arranging a deal for him to temporarily live in a multi million dollar house, and buying about fifty of his pennies for a dollar each, every time they met in Oakland or San Francisco to flesh out further business strategies, including making ridiculously over priced offers on commercial real estate projects on behalf of Advanced Capital Realty Advisors and other non-existent to be formed companies.
Acs was encouraging Mataras to save his pennies, and Mataras began to hoard more than just pennies. Acs had it arranged so no rent would need to be paid on the mansion until a purchase agreement on the house in Oakland Hills was closed between Acs and the owner.
In other words, Mataras was hired to house sit a property worth over 2 million dollars run the operations of TLYN, ACS, the Free and Clear Foundations of California, and eventually what was supposed to become a huge California empire owned and controlled by the megalomaniac Acs, under a tax free engine of economic expansion.
That house, which was and still is owned by Dr. Joseph Levay, a Hungarian pediatrician who was also a multi-million dollar stockholder in one of PKH’s other subsidiaries, namely a Nevada corporation known as PKPI, Inc., the successor to Penny King Productions, Inc., which was purportedly a bearer share company organized in Budapest, Hungary, but operated on the streets of Los Angeles in the mid 1990’s when TPK was living in a homeless shelter, while working as an extra on the sets of sit-coms in Hollywood for five dollars an hour, but which never existed except in the deluded mind of TPK, was the place that Acs had planned on moving to as he was in the process of separating from his high maintenance blonde bomb shelled overweight wife of two years.
They had gotten married in Lake Tahoe after moving away from Gaithersburg Maryland, but the SEC followed him right to Reno and filed charges in Federal Court there. It was the second time Gabor S. Acs, fka known as Alex S. Gabor, a pen name he legally adopted in Redmond, Washington in 1993, and under which he wrote his “Confessions of a Sex Crazed Money Man” book, married Sandra Leigh Gabor.
This story gets very complex, perhaps the reason it has not been told publicly, but as you read the story in all its significant detail, the entire web will be unraveled since its’ author is undergoing treatment from his new employer, namely the higher power he likes to call the Infinite Infinitor of Infinities, or to ordinary commoners, God!
The story is being written because it needs to be written and it is the right thing to do, according to some people who have been wondering what really happened to TPK and his delusions of becoming the worlds first trillionaire.
Among the other highlights of the new undocumented, non copy written Telynx v2 Software was an AutoCAD interface. This was supposedly a bi-directional link between Telynx v2 and AutoCAD 2000. It included the ability to link drawing items to objects in Telynx and update from both directions. While the industry trend in inventory had by then already moved away from a CAD centric approach, the former TLYN management insisted that the need still existed to link CAD information with inventory data for space planning and geospatial information.
Whatever that all meant, was insignificant to Acs. His plan was to infuse TLYN with the 6% preferred dividend paying shares of PKPI Corporation to the tune of $170 million and declare a one for one stock dividend and as that plan was unfolding, behind his back Mataras, Safadi and his attorney, Beth Ochoa were making plans to implement their very own agenda. In fact, on the books and records, those assets had already been legally transferred to TLYN before the later declared ten for one reverse stock split was falsely orchestrated by “new management”.
Where TLYN, PKPI and ACS were supposed to generate revenues to pay all those billions in dividends to TLYN stockholders was unclear. It was buried somewhere inside a 140 page prospectus which was nowhere near clear enough to pass SEC muster, let alone raise any real capital for the over half a billion in projects which ACS had managed to commander under the auspices of financial consulting agreements, zero interest notes receivable, and merger and acquisition contracts. Mr. Mataras spent hours organizing it only to have it totally redone and reedited by Acs, who became so obsessed with writing it, he may as well have become another TOK over the line.
TLYN software was supposed to have features that provided Work Order for Equipment The primary functionality in Telynx v2 was to allow the User to associate a Work Order Number with equipment created in inventory and then have Telynx manage the Operational Status of the equipment based upon selected milestone dates associated with the location Work Order.
This operation is what supposedly attracted Hewlett Packard to have TLYN become a sub-contractor on it’s Egypt Telecom project, an infrastructure project funded by the DC based Aid to Developing Countries program, originally sponsored by Congressman Henry Waxman. But Hewlett Packard wanted confirmation of the Source Code, its ownership and copyright in order to continue paying Telynx $65,000 a year in licensing fees, the only real potential income on the horizon for TLYN between May 2003 and since then. TLYN has never had any direct contract with Egypt Telecom, despite references in its business plans, press releases, and misleading spam emails to the contrary.
Some of the other aspects of the v2 software were Customer View - An additional interface that has supposedly been added to allow a customer view to data. This interface is supposed to allow for a more graphical, topological view of the network. It links information from throughout the system into a single view.
It was nebulous general statements like these that made Telynx v2 promotions look like the airless hype of vacuumed money sucking dichotomies derelict of any diligent degree of dignity that riled up the smart investors dander.
And yet others as announced in their March 21, 2001, now worthless press release: Web Reporting, supposedly an easy to use interface that provides reporting capability against the Telynx database. Revenue Assurance - This new series of modules is supposedly designed to capture lost revenue. How you capture lost revenue is as mystical as a wizard’s crystal ball. It is supposedly a non-intrusive, thank goodness; we wouldn’t want TLYN intruding into anyone’s lives, application for validating rate plans based on sampling CDRs (Call Detail Records) as well as a message volume measurement. Data Archiving, while this supposed functionality allows users to move data in and out of the system by selecting objects i.e. Locations. Certainly that press release made it clear that TLYN was going places.
"We believe that market trends will drive independent software vendors to both compete and collaborate. Ultimately, carriers will demand solutions that provide the most flexibility in interchanging technology while addressing their critical business and operational needs for managing network infrastructure.
“We believe the functionality in Telynx v2 will enable us to further enhance our position in the market and move closer to our goal of being one of the leading inventory/provisioning providers worldwide," said Scott Munden back then the Chief Technology Officer, and who later was promoted to President.
But when Acs met with Munden in El Paso in March of 2004, Munden’s main concern was the Free and Clear Foundation relieving him of any liability related to the $650,000 IRS lien for unpaid back payroll taxes. It appeared that TLYN had not paid any payroll taxes on the $30 million that had passed through its coffers since it changed its name from Cambio to Telynx.
Munden was more concerned that this flaw in accounting, on top of funds that were missing from the 401K plan which had a balance of over $700,000, could come back to haunt him. His attorney advised him to negotiate any way possible to get out from under that potential personal liability and keep it from jeopardizing his family assets and his then outside position with another software company in San Antonio.
When Mataras was tipped off to the fact that Munden could be personally held liable for the IRS tax lien and the missing 401K funds, (Al-Dawhi had already fled the county back to Baghdad leaving Munden to hold the bag) he said to Acs in his deep dry Greek drone, “Don’t worry, I’ll make sure he cooperates with us, I have already talked to the IRS and we are good friends. I’ll make sure he does what we want him to do.”
That statement, along with the beaning incident at the baseball field, and the statement that Mataras could use the v2 software in his own CITC business, should have sent alarm bells ringing in Acs’s universe, but Acs was all caught up with leaving his wife, smoking crack in San Francisco, defending himself against the SEC, trying to file a $5 trillion suit against the SEC for negligence in the naked short trading scandals, and making sure the records and files of TLYN in San Antonio were transferred from the vacated offices to the storage unit which he had been paying on behalf of PKH and TLYN for the previous past 10 months since taking over running the company with Mataras.
That money alone was consideration greater than $10.00, in fact it was over $800 over a ten month period that was paid by Acs, through PKH, maintaining the storage unit containing all the files and records of TLYN that were archived, including old outdated equipment, including half a dozen Sun Microsystems Servers which Mataras desperately wanted to get his hands on so as to implement his own business agenda.
Acs could not become a Director or Officer of the company because of the ongoing SEC litigation. He would be permanently barred from trading in penny stocks or from becoming an Officer or Director of any penny stock company and he wanted Mataras to be Secretary and Ochoa to be CFO so the bank account could be opened and the $10 deposited to consummate the contract and make it all legitimate and official, or so it all seemed to the co-conspirators.
This apparent legal weakness in the Penny King’s Court was fully exploited by Mataras, Safadi and Ochoa as the constant streams of orders to Mataras from Acs through thousands of emails kept piling up and Acs suffering eventually from a total nervous breakdown on the phone while in a conference call with all three of them. It was at that point that the three conspirators decided to steal the company because of a ‘business decision” But Mataras had by then already stolen the corporate records of Advanced Capital Services Corporation, and Ochoa and Safadi had the corporate records of Penny King Holdings and the Free and Clear Foundations of America, Inc. Acs had virtually delegated too much power and lost it all.
From around late 2003 through almost the end of 2004 TLYN didn’t even have a corporate bank account. No bank would allow it; they had such bad credit and a trail of missing money and funds as long as the span of the globe. The old stock transfer agent in New York would no longer handle stock transfers because it was owed over $10,000 that had not been paid for over three years.
Only a mad man would have wanted to take over the debts of this company and try to turn it around and Acs was definitely by then a mad man. Acs had ordered Mataras to bring in Transfer Online as the new agent. This would solve several problems at once. The new PKPI one for one dividend could be handled by them and PKPI would then officially become a publicly traded vehicle by virtue of the number of stockholders it had. The scheme was incredulous. There would be hundreds of new billionaires over night, just like Google and Microsoft had made. There was however one slight giant flaw in the whole scheme of things.
Not TLYN, PKPI, PKH, ACS, CITC, nor any of the dozens of orbiting entities ogling over the millions they were planning on making, any of them singly or collectively, had earned even a single penny of profit, nor did any of them have any potential profit anywhere on the purloined horizon for years to come. And not a one of them in the bunch had any experience managing more than pennies to their names.
The press release went on, “This announcement is made in conjunction with the recent announcement changing the name from Cambio, Inc. to Telynx, Inc.; and is another example of the company's commitment to focusing on delivering world-class solutions to the telecommunications market. Telynx, Inc. is aggressively moving both the company and its technology to the forefront of the OSS market. We believe that the acceptance of our technology and the release of Telynx v2 will serve to further our strategy in this area. We will continue to aggressively pursue and execute our plan of being a leading independent software vendor in our market space," said Ali Al-Dawhi, President and CEO.
The above misleading statements could not be evaluated unless one had all the inside data concerning the software, it’s licensing, and the mountains of evidence in the storage unit in El Paso showing thousands of illicit transfers of funds out of the company to pay for extravagant hotels in various parts of the world as Al Al-Dawhi used other peoples money to pretend to sell something which was nothing more aggressive than a con man at the Predators Ball trying to get billionaires to invest in a piece of air. TLYN never was and never will be at the forefront of anything except perhaps eventually a grand jury indictment and a court of law.
Only the Egyptians have accepted any version of Telynx software and that version is not even considered v2, it is the old version, the first version which was copyrighted, and in fact today is as functionally obsolete as a Commodore Computing system. As for any strategy, the only strategy was to foist off the past mistakes onto a new sucker who didn’t have a clue what he was getting himself into, and then creating the illusion that there was really something there so a small group of crooks could steal $65,000 from Hewlett Packard. It’s almost as if they were paid by the old management to take the money and run. And they are still running today. But this story is just beginning. More will be revealed as time wears on and the author is running out of time with his illnesses.
The press release went on to say that “Telynx is a global leader in telecommunications infrastructure management systems. The company supplies software (Telynx and the netRunner.com™ family of products) and professional services for Operations Support Systems (OSS) of telecommunications industry and for general enterprise networks.”
Telynx is about as far from being a global leader in anything but con artistry. It and all the people who ever were associated with the company were before Acs arrived on the scene were con artists who had somehow managed to rip off thousands of investors from around world to the tune of over $36,000,000 and indictments are yet to be handed down by any US government agency.
The false press release went on to note that “Telynx's customers include clients in the telecommunications industry and Fortune 100 financial institutions.” The company has never had a single financial institution or fortune 100 company as a customer.
And to top it all off, and this is a direct quote from the press release “Effective November 28, 2000, Telynx headquarters is in Houston, Texas; home office in El Paso, Texas; and supporting offices in Dallas, TX; Washington D.C.; Denver, CO; London, United Kingdom; and Cairo, Egypt; with representative offices in Asia (Kuala Lumpur, Malaysia) and the Middle East (Cairo, Egypt).
The records which were taken from the El Paso storage unit will show that Telynx never had any official offices anywhere outside of El Paso, but what happened after Acs discovered that most everything ever published about this company was totally, completely and utterly, blatantly false and misleading?
That is the subject of the next segment of this story of a The Sly Lies of a Smooth Penny Cat -Tell A Lynx