Replies to post #4528 on The Jailhouse (JAIL)

[FrankNG]

Correct Matt. Phan himself confirmed in his shareholder letter that he got his PHD from Sussex School of Technology. While we are at it maybe you can tell me what this means?

"has completed the acquisition of the ongoing economic proceeds of Kangrun Jia Yuan Technology Ltd."


Hartcourt Subsidiary AI-Asia Completes Acquisition of Kangrun


The Hartcourt Companies, Inc. (BULLETIN BOARD: HRCT) , www.hartcourt.com , announced today that AI-Asia, Ltd. (HK) www.ai-asia.com , its subsidiary, has completed the acquisition of the ongoing economic proceeds of Kangrun Jia Yuan Technology Ltd. ( www.kangrun.com ). Kangrun provides systems integration, networking solutions, modular networking products, computer systems and storage devices to corporate enterprises in China. Two major strategic partnerships of Kangrun are IBM-China ( www.ibm.com ) and Ortronics ( www.ortronics.com ).

Kangrun Technology Ltd., and Control Technology Ltd. comprise the two main components of Hartcourt''s operating unit AI-Asia, Inc. In 2001, Kangrun''s audited sales revenue was $60 Million RMB / $7.4 Million US and Control Technology had audited revenues of $24.6 million RMB / $3 million US with combined net profit of 1.6 million RMB / $195,000 US. The audits were completed by Jimmy Cheung & CO Certified Public Accountants of HONG KONG, Kangrun is one of the top IBM distributors (5 star) in China for PC, server, laptop, storage devices and solutions for corporate customers. They are the general sales agent for Northern China for Ortronics. Their clients include; Tsinghua University, Beijing University, China Telecom, SK Corp, People''s Daily, Tom.com, and the Chang Sheng Fund.

"The Kangrun Technology acquisition completes the initial steps of AI-Asia''s strategy to combine the strengths of Kangrun, Control Technologies and LogicSpace to form the core of Hartcourt''s Information Technology operations" said Dr. Wallace Ching, Hartcourt''s CEO. "Their extensive technology base, blue chip partners and clients, extensive sales and distribution networks and strong financial position combine to make AI-Asia an integral player in China''s rapidly emerging IT landscape. Our next step is to take AI-Asia public, which we believe will be completed in Q3 2002."

[Bob Zumbrunnen]

I'm way smarter than you and couldn't make heads or tails of what was being said. No matter how many times I read it, it looked like just a vitriolic assemblage of random words. Words I knew to be English, but I couldn't figure it out past that.

So don't feel bad.

Although I'm sure not knowing anything about the company or people he's discussing is part of what makes it so tough for me to figure out what he's saying.

[FrankNG]

MORE INFO ABOUT REGIS POSSINO AND PATTISON HAYTON WHO CONTROLLED THE HARTCOURT COMPANIES AND HIS TIES TO FIRST CAPITAL NETWORK INC. ACCORDING TO THIS STORY PATTISON HAYTONS INVESTMENT BANKER WAS FIRST CAPITAL NETWORK WHICH WAS CONTROLLED BY STOCK SWINDLERS RAMON D'ONOFRIO AND FELLOW SWINDLER REGIS POSSINO. PATTISON HAYTON JOINS A LONG LINE OF FRAUDULENT PROMOTERS CONNECTED TO REGIS POSSINO. PATTISON HAYTON RECENTLY WAS CHARGED BY THE SEC FOR SECURITIES FRAUD IS YOU DO A SEARCH AT THE SEC WEB SITE YOU WILL FIND THAT MARK D'ONOFRIO WAS RECENTY CHARED ON ANOTHER STOCK FRAUD AS WELL. http://www.sec.gov/litigation/litreleases/lr16980.htm

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http://www.sec.gov/litigation/litreleases/lr17046.htm
Tradamax Group, Inc., Pattinson Hayton and Conrad Diaz: Lit. Rel. No. 17046 / June 21, 2001 SECURITIES AND EXCHANGE COMMISSION v. TRADAMAX GROUP, INC., PATTINSON HAYTON, AND CONRAD DIAZ, Civ. ...
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Investor With Checkered Past Controls Two Public Firms

By John R. Emshwiller
Staff Reporter of The Wall Street Journal

10/13/1994
The Wall Street Journal

An Australian investor with a checkered past takes control of two public
companies and trading volume soars in both stocks. Should that be a reason
for elation or concern on the part of other holders?
In the case of little Quadrax Corp., a Portsmouth, R.I., supplier of
composite materials, and Apogee Robotics Inc., a Fort Collins, Colo., maker
of computerized materials-handling systems, the answer for now seems to
favor caution.

The investor is Pattinson Hayton, a 44-year-old who hails from Orroroo,
South Australia, and sometimes adds "Jr." or "III" to his name. Despite a
history of legal and financial troubles, Mr. Hayton this year became
chairman and, through his investment firm, a major shareholder of both
companies.
The ease with which he did it is a reminder that a public stock listing and
Securities and Exchange Commission disclosure rules still give investors no
magical protection. That's particularly true for tiny stocks like these two,
which trade in the Nasdaq Small Cap realm.

Mr. Hayton has been an executive or major holder of small public companies
before. In one such case he was sued by the SEC, eventually cited for
contempt and fined $60,000 by a federal judge in Washington, D.C., for
failing to file required documents. But because all of this occurred more
than five years ago, it doesn't have to be disclosed under SEC rules. More
recently, in California, state banking authorities have issued a written
order questioning Mr. Hayton's integrity.

In general, stock-related misdeeds are still "much more prevalent at smaller
companies than larger ones," says Stuart Allen in Washington, D.C., a former
senior SEC investigator. Tiny stocks' prices are often easy to manipulate
because of the relatively thin trading, says Mr. Allen, now a senior
associate with the financial-investigations firm of Lindquist, Avey,
Mcdonald, Baskerville Inc.

Mr. Hayton declined to be interviewed. His lawyer, Timothy MacDonald, did
accept detailed written questions and replied with a brief statement saying
"the questions posed aren't accurate representations" of Mr. Hayton or his
investment firm, Conagher & Co. Mr. Hayton's defenders say he's a
respectable businessman who is simply interested in financing promising new
technologies.

According to Quadrax and a July SEC filing by Conagher, Conagher invested
about $3 million (plus some Conagher preferred stock) for a stake of about
29% in Quadrax. Quadrax had reason to welcome the money. Its $5.7 million
loss for 1993 greatly exceeded revenue of $1.6 million.

An August SEC filing by Apogee says that Conagher obtained about a third of
Apogee's roughly 18 million shares in a swap for some Conagher preferred
that Conagher was supposed to repurchase over time for $2 million. The
filing also said that Conagher planned to sell about five million of its
Apogee shares to "certain third parties." Apogee had a loss of $1.1 million
in the nine months through March 31, on revenue of $853,000. The company
hasn't yet reported its fiscal 1994 full-year results.

Since Mr. Hayton entered the picture, both stocks' volume has surged, as the
charts indicate (See related illustrations -- WSJ Oct. 13, 1994). But
shareholders haven't made a killing in either stock. Quadrax ended at
$3.9375, up 18.75 cents on Nasdaq Stock Market volume of 210,200 yesterday.
Apogee closed at 21.875 cents, off 1.5625 cents on volume of 129,400.

Mr. Hayton nearly bought control earlier this year of a third public
company, Out-Takes Inc. of Santa Monica, Calif. But after reaching a
tentative accord, OutTakes backed off.

"It was not the right transaction for us," says its president, Robert
Shelton; other financing was arranged. He adds that Mr. Hayton's investment
banker in the Out-Takes negotiations was First Capital Network Inc. of Santa
Monica and one of its officials, Mark D'Onofrio.

According to SEC records, Mark D'Onofrio's father and longtime business
associate Ramon has been convicted four times for criminal violations of
securities laws, enjoined from further violations more than a half-dozen
times in civil actions and in 1975 was described by a federal appeals court
in New York as "ubiquitously criminal." The son, Mark D'Onofrio, has been
the subject of three SEC enforcement actions. Just last month, according to
the SEC, he and his father agreed to a permanent injunction barring them
from promoting stock for any broker or stock issuer, settling the SEC
stock-manipulation case in federal court in New York by agreeing to pay
$940,000 in penalties.

At the D'Onofrios' office, a woman who answered the phone said that the
D'Onofrios were unavailable.

In 1983, First American Bank in Nashville obtained a $1 million default
judgment against Mr. Hayton in connection with a note he had guaranteed.
That judgment remains largely unpaid, according to a lawyer for the bank.

In 1988, the SEC filed a suit in a Washington, D.C., federal court against
Mr. Hayton charging that firms he controlled had failed to file required
disclosure documents. Mr. Hayton later was found in contempt and fined
$60,000 for failing to comply with a court order that the documents be
filed.

Two years ago, Mr. Hayton was in the public markets again through his
controlling interest in Rally Ventures Ltd., a Santa Monica company that
raised money from the public to invest in other companies. In early 1992,
Rally made a $5 million debt offering in connection with its effort to buy a
unit of the Bank of Beverly Hills that administered more than $500 million
in retirement accounts. That purchase was blocked by the California
Superintendent of Banks.

In a written order, the state official said Rally's "financial condition is
uncertain," pointing to the "unsubstantiated" value of the firm's assets,
including notes supplied by another Hayton company. The superintendent added
that Mr. Hayton's "integrity . . . is subject to question." And it said that
in 1991, the federal Immigration and Naturalization Service issued a
deportation warrant for Mr. Hayton, who failed to report for deportation.
(INS officials say they won't comment on the case, as such records are
confidential.)

The Rally Ventures debt offering is the subject of a lawsuit filed earlier
this year in a Madison, Wis., state court. Unhappy investors claim they were
falsely told the debentures were a "no-risk" investment, adding that their
money was improperly taken out of a trust account created to hold their
funds. The suit seeks a refund plus interest and damages.

Mr. Hayton isn't named as a defendant, although the suit alleges he helped
put together a prospectus that contained "intentional misrepresentations."

Roggensack says she didn't name Mr. Hayton as a defendant because she
thought it would be difficult to collect from him in the event of a
judgment: "He is supposedly very difficult to pin down."