Baristas Coffee Company, Inc. (BCCI)

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Here is the bare facts of the transaction.

BCCI gives service provider millions of shares of stock.

In return service provider gives BCCI $7 million dollars.

Then BCCI gives the $7 million back to the service provider and places a debit in this vendor's account for $7 million dollars and claims that this debit as an asset.

Except that (1) no money transactions take place and it is all electronic bookkeeping entries and (2) nobody, absolutely nobody, ever does this kind of thing for some nebulous future advertising/marketing services.

A pre-payment of a fee for a contract does happen, but I have never heard of any pre-payment totaling more than five time the revenues of the last twelve months. In most cases, a vendor may get a ten percent fee up-front and that would be a credit to the customers. The rest is provided as the work is completed. And the amount is not placed on the books until the work is done.

Barry has done this kind of deal many times before, always to the detriment of the stockholders.