Replies to post #76219 on DD Support Board and Research Team

[scion]

The four other people indicted are not yet in custody, prosecutors said. They are: Christopher Balseiro, of North Bay Village, Florida; Eric Van Nguyen, of Quebec; Joseph Dervali, of Pembroke Pines, Florida; and Luz Rodriguez, of Miramar, Florida.

Eight charged in New York in $290 mln stock scheme

By Karen Freifeld
NEW YORK, Sept 11 Thu Sep 11, 2014 6:25pm EDT
http://www.reuters.com/article/2014/09/11/stocks-crime-scheme-idUSL1N0RC2X820140911

(Reuters) - Eight people were charged on Thursday in New York with duping thousands of investors into purchasing $290 million worth of penny stocks in "pump and dump" schemes.

Three of the people blasted emails "pumping" the stocks to thousands of potential investors, Manhattan District Attorney Cyrus Vance Jr. said in a statement announcing the 85-count indictment.

Others acquired public shell companies, merged new private companies into them and issued shares to themselves and associates in advance of the promotional push, prosecutors said.

Once a stock's price was artificially inflated, the schemers "dumped" the stock, leaving public investors with shares that were pretty much worthless, the prosecutors said.

Anthony Thompson, 38, of Bethesda, Maryland, and Jay Fung, 40, of Delray Beach, Florida, were arraigned in state Supreme Court in Manhattan in connection with the scheme, which prosecutors said took place between 2009 and 2012. They both pleaded not guilty to securities fraud and other charges.

The pair are accused of promoting the stocks with the help of penny stock websites that prosecutors say they controlled, including OxofWallStreet.com, PennyPic.com and MonsterStox.com.

Hanna Schmieder, 39, of New York, and Kenneth Oxsalida, 59, of Sebring, Florida, also were arraigned and pleaded not guilty.

Schmieder, the president of Lyric Jeans Inc, and Oxsalida, 59, president of Smart Holdings Inc, are accused of approving new shares in anticipation of the stock manipulation of their companies.

The four other people indicted are not yet in custody, prosecutors said. They are: Christopher Balseiro, of North Bay Village, Florida; Eric Van Nguyen, of Quebec; Joseph Dervali, of Pembroke Pines, Florida; and Luz Rodriguez, of Miramar, Florida.

Maranda Fritz, a lawyer for Thompson, said the documents emailed to potential investors clearly stated they were paid advertising.

Vance said in a statement that the accused profited "at the expense of the investing public."

Other companies involved included Hydrogenetics Inc , Xynergy Holdings Inc, Blast Applications Inc, and Blue Gem Enterprise Inc. (Reporting by Karen Freifeld; Editing by Leslie Adler)

http://www.reuters.com/article/2014/09/11/stocks-crime-scheme-idUSL1N0RC2X820140911

[bigmunnie]

Mr. Thompson and Mr. Fung were arraigned on charges of grand larceny, scheme to defraud and securities fraud in State Supreme Court in Manhattan and released on $1 million bail each; Mr. Nguyen was still at large.

http://www.nytimes.com/2014/09/12/nyregion/290-million-lost-in-penny-stock-fraud-prosecutors-say.html?_r=1

[janice shell]

Many of the eight people whose indictment was announced today had never met each other and their only connection is that they had all worked with Sepe, Fritz said.

“It’s a ring without the ringleader,” Fritz said.

Whether they ever met or not is open to question, I suppose. But given that they worked together many times from at least early 2010 to mid 2012, I'm sure there were plenty of phone calls, emails, and texts exchanged.

And I'm sure the authorities have records of many or most of them.

[nodummy]

Joseph Meuse = One very interesting connection between several of the companies named in the Indictment of Eric Van Nguyen, Jay Fung, AJ Thompson, Hanna Schmieder (LYJN and RYCT), Kenneth Oxsalida (SMHS and BGEM), Joseph Dervali (MHYS, LYJN, and BGEM), Luz Rodriguez (HYGN and BGEM), Christopher Balseiro (XYNH, RYCT, LYJN, and BGEM)

http://manhattanda.org/press-release/da-vance-stock-promoters-and-co-conspirators-indicted-290-million-“pump-and-dump”-stoc

The defendants are charged in an 85-count indictment in New York State Supreme Court with Criminal Possession of Stolen Property in the First and Second Degrees, Grand Larceny in the Second, Third, and Fourth Degrees, Scheme to Defraud in the First Degree, and Securities Fraud

Through their scheme, the defendants are charged with inducing thousands of investors to purchase approximately $290 million worth of securities in numerous public companies, including Hydrogenetics, Inc. (HYGN); Xynergy Holdings, Inc. (XYNH); Blast Applications, Inc. (BLAP); Blue Gem Enterprise, Inc. (BGEM); Mass Hysteria Entertainment Company, Inc. (MHYS); Recycle Tech, Inc. (RCYT); Lyric Jeans, Inc. (LYJN); Smart Holdings, Inc. (SMHS); and Sunpeaks Ventures (SNPK).



Previously named Kevin Sepe, Melissa Rice, Ronny Halperin, Seth Eber, Howard Ettelman, and Charles Hansen III shouldn't be ignored

http://www.sec.gov/litigation/complaints/2012/comp-pr2012-82-1.pdf

Nor should Ryan Gonzalez and David Rees

https://www.sec.gov/litigation/complaints/2012/comp-pr2012-82-2.pdf



Let's look at some of the tickers named in the Indictment:

HydroGenetics Inc. (HYGN)
Xynergy Holdings Inc. (XYNH)
Blast Applications Inc. (BLAP)
Blue Gem Enterprise Inc. (BGEM)
Mass Hysteria Entertainment Co. (MHYS)
Lyric Jeans Inc. (LYJN)
Smart Holdings Inc. (SMHS)
Recycle Tech Inc (RCYT)

Except for Lyric Jeans Inc (LYJN) which was already controlled by Hanna Schmieder and Ronny Halperin before the scam took place, HydroGenetics Inc (HYGN) which was already controlled by Kevin Sepe, Luz Rodriquez, and Ronny Halperin before the scam took place, Xynergy Holdings Icc (XYNH) which was already controlled by Ronny Halperin and Christopher Balseiro before the scam took place, and Blast Applications Inc (BLAP) which I haven't quite sorted out yet all the others were controlled by Joseph Meuse (Belmont Partners) at one point during the period that shares were illegally obtained by Eric Van Nguyen, Jay Fung, AJ Thompson, and the others.



Blue Gem Enterprise Inc. (BGEM) - scam allegedly took place between July 1, 2009 and February 28, 2010

Enter Joseph Meuse:

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=6723160

On July 29, 2009, Blue Gem Enterprise (the “Company”) entered into a material definitive agreement with Belmont Partners, LLC by which Belmont acquired five million (5,000,000) shares of the Company’s common stock. Following the transaction, Belmont Partners, LLC controls approximately 76.63% of the Company’s outstanding capital stock.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=6847453

On October 15, 2009 (the “Closing Date”), Charter Consulting Corp. acquired the majority of the issued and outstanding common stock of Blue Gem Enterprise, a Nevada corporation (the “Company”), from Belmont Partners, LLC, a Virginia limited liability company (“Belmont” or the “Seller”), in accordance with a common stock purchase agreement (the “Stock Purchase Agreement”) by and among Charter Consulting Corp, Belmont and the Company. On the Closing Date, pursuant to the terms of the Stock Purchase Agreement, Charter Consulting Corp acquired eighty two million two hundred thirty six thousand eight hundred fifty (82,236,850) shares of the Company’s issued and outstanding common stock representing approximately 76.68% of the Company’s issued and outstanding common stock, for a total purchase price of two hundred thirty five thousand dollars ($235,000).




Mass Hysteria Entertainment Co. (MHYS) - scam allegedly took place between June 1, 2009 and February 22, 2010

Enter Joseph Meuse:

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=6662972

On June 9, 2009 (the “Company”) entered into a material definitive agreement with Belmont Partners, LLC by which Belmont acquired three million seven hundred sixty-two thousand (3,762,000) shares of the Company’s common stock. The transaction closed on June 16, 2009. Following the transaction, Belmont Partners, LLC controls approximately 85.41% of the Company’s outstanding capital stock.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=6741778

On August 5, 2009 (the "Effective Date"), pursuant to the terms of a Stock Purchase Agreement, Daniel Grodnik and affiliated parties purchased a total of 7,984,548 shares of issued and outstanding common stock of Mass Hysteria Entertainment Company, Inc. (the "Company") from Belmont Partners. At this time, Belmont Partners’ designee was the sole officer and director of the Company. In addition to the shares sold by Belmont Partners, the Company also issued 42,015,452 shares to Daniel Grodnik and certain affiliated parties in connection with the Change of Control. The total of 50,000,000 shares issued to Daniel Grodnik and the affiliated parties represents 75.72% of the shares of outstanding common stock of the Company at the time of transfer.




Recycle Tech Inc (RCYT) - scam allegedly took place between January 1, 2010 and April 1, 2010

Enter Joseph Meuse:

http://www.sec.gov/Archives/edgar/data/1344770/000135239210000015/rcyt_form8k.htm

On January 27, 2010, Recycle Tech., Inc., (the “Company”) entered into a material definitive agreement with Belmont Partners, LLC by which Belmont acquired twenty-three million six hundred sixty-nine thousand four hundred ninety (23,229,490) shares of the Company’s common stock. The transaction closed on January 28, 2010. Following the transaction, Belmont Partners, LLC controls approximately 97.5% of the Company’s outstanding capital stock.

http://www.sec.gov/Archives/edgar/data/1344770/000114420410009231/v175078_8k.htm

On February 16, 2010, Belmont Partners, LLC., Green Building & Engineering Contractors, LLC (“GBEC”) and the Recycle Tech, Inc. (the “Company”) entered into a Stock Purchase Agreement through which Belmont sold to GBEC 23,669,490 shares of the Company’s common stock for $251,811. As a result of the transaction GBEC owns approximately 48% of the outstanding shares of common stock of the Company. In addition, the Company agreed to issue three percent (3%) of the Company’s outstanding common stock to Belmont upon the completion of a contemplated merger transaction.




Smart Holdings Inc. (SMHS) - scam allegedly took place between November 15, 2009 and December 31, 2010

Enter Joseph Meuse:

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=6981917

On January 5, 2010, Smart Holdings, Inc. (the “Company”) entered into a material definitive agreement with Belmont Partners, LLC by which Belmont acquired seven million (7,000,000) shares of the Company’s common stock. The transaction closed on January 8, 2010. Following the transaction, Belmont Partners, LLC controls approximately 81.37% of the Company’s outstanding capital stock.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7000135

On January 18, 2010, Smart Holdings, Inc. (the “Company”) entered into a material definitive agreement with Assurance Group Direct, Inc. by which Assurance acquired four million three hundred two thousand one hundred eleven (4,302,111) shares of the Company’s common stock. The transaction closed on January 18, 2010. Following the transaction, Assurance Group Direct, Inc. controls approximately 50.01% of the Company’s outstanding capital stock. On January 18, 2010, Kenneth Oxsalida was appointed to the Board of Directors as well as President of the Company. On January 21, 2010, Joseph Meuse resigned from all positions held in the Company.