Xechem International Inc. (fka XKEM)

[olroy]

DDirect Link between XKEM and BLECH: http://www.littleindia.com/archive/dec96/survive.htm
Excerpt: "On Nov 19 (1996-ish), Xechem announced that a group controlled by David Blech, a well-known but controversial investor in the biotechnology industry, will invest $5.5 million in the company over the next nine months. As a result of the deal, Blech and his associates will replace Pandey as Xechem's controlling shareholders, with a stake of more than 70 percent. Pandey, however, will remain the CEO as well as the second-largest shareholder. He is delighted at the deal because the capital infusion will allow Xechem to develop products that he believes could become big winners in the future. "With Blech's investment and expertise, our future is very bright," he says. "In the next three to five years, we could have sales of $30 million to $50 million.""

Those sales predictions came in 1996 for the future of 1997. Well, we all know that didn't happen as the loans continue today and XKEM continues to show massive losses.

Note XKEM / Chassman / Blech link:
While many on the boards are speaking zealously how the debt owed by XKEM will not have to be paid until 2008, please note the paragraph below from this link: http://biz.yahoo.com/e/050623/xkem.ob8-k.html
Excerpt: "For the period from November 11, 2003 through June 30, 2004, Marjorie Chassman, the spouse of David Blech ("Chassman") advanced $2,800,000 of convertible debt to Xechem, which debt accrued approximately $320,884 in interest (as of June 20, 2005) and is due and payable December 31, 2006, subject to the required sale of Xechem's holdings of CepTor Stock."
(the CepTor deal is an entirely other issue)
Blech's shady past:
http://www.bearstearnsfraudinfocente...nformation.php
Excerpt: "The case was a $77 million class action lawsuit filed against Bear Stearns on behalf of investors who claimed they had lost their money due to the fraudulent actions of David Blech, a Bear Stearns client. The judge stated that a summary judgment could not be made because there were not enough facts available to determine if Bear Stearns was guilty or not. Bear Stearns said that it had no knowledge of Blech’s stock manipulating (he pled guilty to charges of fraud in 1999). The investors who lost their money to Blech want to convince the jury otherwise."

Link demonstrating Chassman/Blech relationship:
http://freeadvice.brand.edgar-online...cJ4&ID=4327914
Excerpt: "In January 2005, we entered into an agreement with David Blech (the husband of Margie Chassman), which provided that he or his designees would lend us $500,000 (inclusive of $100,000 previously advanced to us in December 2004 by Ms. Chassman) for operating capital pending our debt restructuring and completion of our private placements of units, and up to an additional $500,000 on the same terms if the private placement was delayed.... The two loans, both of which were made by Ms. Chassman, totaled $500,000 and bore interest at 6% per annum.... According to the agreement, we also issued the following individuals the following number of shares of our common stock:








Investor

Number of Shares
of Common stock
Margie Chassman


2,475,000

Wood River Trust


3,850,000

Esther Blech


1,225,000

Milton Chassman


1,225,000

Aaron Eiger


1,225,000

Mark Germain


500,000


Wood River Trust is a trust formed for the benefit of Evan Blech, the son of Ms. Chassman and Mr. Blech. The trustees of the trust are Harvey Kesner and Michael C. Doyle (no relation to our director, Michael J. Doyle). Esther Blech is the mother-in-law of Ms. Chassman. Milton Chassman is the brother of Ms. Chassman. These investors have agreed not to publicly sell their shares of common stock until November 2006 and if they sell their shares in a private transaction, the buyer must also agree not to sell their shares publicly until November 2006."

(The whole family's in on that one!)

How did Blech do it? http://www.sec.gov/news/digest/02-07.txt
Excerpt: "From approximately June through September 1994, David Blech, the chief
executive officer of D. Blech & Co., orchestrated a massive manipulative
scheme designed to increase or stabilize the prices of a number of the
biotechnology securities for which D. Blech & Co. was a market maker.
As part of this scheme, David Blech routinely sold biotechnology stocks from D. Blech &
Co.'s inventory accounts to brokerage accounts that Blech controlled
that were in the names of other individuals and entities. These
controlled accounts then sold the biotechnology stocks back to the
brokerage firm or to other accounts controlled by David Blech. These
trades created the appearance of active trading in the biotechnology
stocks. Additionally, through this trading, Blech was able to reduce D.
Blech & Co.'s inventory position in the biotechnology stocks, yet still
artificially withhold from the market the supply of the biotechnology
stocks."

So, with XKEM, how many shares of this roughly 1.3 billion O/S count do we all REALLY own? Long. For Real. No Flipping? Your guess is as good as mine.


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