Replies to post #125837 on Bancorp International Group Inc (fka BCIT)

[mastaflash]

"Everyone thought there was 4 million O/S until Megas mysteriously issues 240 Million plus shares for what amounted to pennies on the dollar." -- Your time-lines are way off.


Timeline and events


The following is a summary of certain events relating to the corporate identity fraud perpetrated on and the unauthorized issuance of the common stock of Energy Source, Inc. (f/k/a Bancorp International Group, Inc.). It also details the Company’s efforts to restore certainty to its capitalization, to have DTCC settlement and clearing services restored, to bring their SEC filings current, and to relist and resume quotations on the OTCBB exchange.


November 2004
The Company commences action to bring its SEC filings current and consults with brokers in the USA and Europe regarding a reverse merger with a European realty business


February 2005
Mario A. Pino (“Pino”) devises a fraudulent scheme to assume the identity of the Company and to profit from the sale of the Company’s stock. Pino begins his caper with the knowledge that the Company’s SEC filings have been delinquent since November 2000, and that there is no trading in the Company’s common stock.

February 9, 2005, Pino drafts a fraudulent Stock Purchase Agreement under which the Company would purchase Carter Care, Inc. in exchange for 20,000,000 shares of the Company’s stock, which Pino states, represents approximately 60% of the issued and outstanding stock of the Company. Pino knows at the time that he has not seen any corporate documents that verify the number of current outstanding shares of the Company. In reality, the issued shares of the Company do not exceed 4,890,000; the authorized shares do not exceed 25,000,000 and bear the legend March Indy Corporation.


April 2005
April 21, 2005, Pino directs his associate Pamela J. Thompson to prepare and fax false documents to the Nevada Secretary of State that purport to change the Company's registered agent and corporate officers. This filing with Nevada essentially hijacks the Company and designates Pino's nominee “Louis Lesser” as the sole officer and director of the corporation. Pino invalidly issues, or causes to be issued, 41 certificates representing over 249,000,000 shares of common stock. The exact number of shares of common stock invalidly issued by Pino is not known.April 29, 2005, the fraudulent shares start entering the public markets; BCIT registers trading volume of 270,000.


May 2005
May 2, 2005, Pino issues a press release announcing that “…the Company and Carter Care, Inc., a privately held nursing care business in California, have engaged in a reverse merger…” These statements are materially false and misleading.

May 5, 2005, subsequent to the issuance of the press release, Thomas Megas, the Company’s legitimate President and CEO, contacts Pino and advises him that the reverse merger is not authorized by the Company. Notwithstanding the Carter Care debacle, Pino continues undeterred. Pino tells the president of the Company that he will make restitution and pay damages for his attempt to hijack the Company. Unbeknownst to the Company's President, Pino's plan is to generate money from the continued sale of unregistered shares of his hijacked Company, and use the proceeds to pay restitution to the legitimate Company. Pino continues to issue false press releases and disseminate false information about the Company, which continues to facilitate a market in the shares. Pino continues to trade fraudulent BCIT securities.

May 12, 2005, Pino issues a new press release stating that the reverse merger was cancelled after due diligence, and “…They are actively meeting with other entities for acquisition purposes and will update you as those proceed…” This statement is materially false and misleading.

May 17, 2005, the Company’s shares initiate listing on the REG SHO Threshold Security List.

May 25, 2005, Pino issues orders or causes to be issued, new certificates representing an unknown number of shares of common stock.

From at least May 26, 2005 through July 13, 2005, Pino engages in an information campaign to condition the market for his stock sales and continues to sell invalidly issued shares of common stock.

May 31, 2005, Pino issues a press release announcing that the Company "…is currently negotiating with an exciting business it hopes to acquire..." The statement is materially false and misleading.

On May 31, 2005, Pino issues a press release announcing that "…the Company is to close on a monumental deal with keen competition from competitors..." These statements are materially false and misleading.


June 2005
June 2, 2005, Pino issues a press release announcing that "…the Company is presently involved in an active negotiation to acquire gold deposit rights with an approximate value of one billion (USD)…" These statements are materially false and misleading.

June 13, 2005 Pino issues a press release to appease Megas, yet keep the caper ongoing.

June 13, 2005, Pino issues a press release announcing that "…the Company has entered into an exclusive agreement with CVG (Corporacion Venezuela de Guayana) of the Venezuelan Government to commercially develop gold deposits at a site in the State of Bolivar. This agreement is for concessions No. 32. There has already been infrared testing done on the property and Bancorp will be sending down a team of geologists for additional testing..." These statements are materially false and misleading.

June 16, 2005 Thomas Megas sends letter to Dean Heller, Nevada Secretary of State, to give notice of Company’s filing defect.


July 2005
During this time the Company's president emails Pino reiterating that Pino has no authority to act for the Company and that only he, Thomas Megas, has authority to act for the Company. He directs Pino not to issue any releases or other documents without specific authorization from the Company's President. Pino continues undeterred and issues press releases and distributes false information about the Company. Pino also orchestrates a fax blasting operation touting mining contracts, and an email spam campaign announcing the status of the Company's mining operations. In addition, Pino directs the creation of a purported Company website, http://www.bancorpinc.com/newsite , that falsely describes the Company as a multinational mining Company that mines precious metals and diamonds.

July 11, 2005, Pino issues a press release announcing that "…the Company is a high growth, diversified mining Company that is presently operating in multiple regions in Venezuela…" This statement is materially false and misleading.

July 13, 2005 Pino issues a press release announcing that “…we have significant gold and diamond assets that we are just starting to actively mine and an established formal relationship with the Venezuelan Federal Government…” This statement is materially false and misleading.

July 13, 2005, the Company’s shares delist from the REG SHO Threshold Security List. Naked short shares are covered with counterfeit shares through the DTCC.

July 26, 2005, the Company’s shares relist on the REG SHO Threshold Security List.

July 28, 2005, Blue-Sky Solutions, LLC, hired by Pino and associates, resigns as investor relations contact for the Company after receiving a “Cease and Desist” notice from the Company.

All of the information Pino disseminates about the Company is false. The Company never enters into any mining contracts and is never in the mining business.


August 2005
The Company’s management becomes aware of the unauthorized issuance of approximately 243,842,000 additional shares common stock.

August 1, 2005, Thomas Megas issues a press release on behalf of the Company, which states that the Company has never issued any shares bearing the legend “Bancorp International Group, Inc.”, the Company has never entered into a reverse merger or negotiations with Carter Care, Inc., and that the Company has not signed or entered into any agreements relating to gold or diamond mining ventures or made any announcements to that effect.

August 2, 2005, the Company’s one day trading volume peaks at 211,475,855 shares traded.

August 11, 2005 Thomas Megas issues a press release announcing the share certificate forgeries, and specifically contacts R. Nurse [e-mail] at the DTCC informing him of same.

August 16, 2005, Depository Trust Company issues “Special Alert Regarding Bancorp International Group, Inc.” suspending all services effective August 11, 2005.

August 18, 2005, the Company’s shares delist from the REG SHO Threshold Security List. Naked short shares are covered with counterfeit shares through the DTCC.

August 19, 2005, First brokers react to the DTC “Special Alert”. Fidelity restricts opening positions in the Company’s shares and changes to "sell by phone only" policy. Raymond James closes all trading activity in the Company’s shares.

August 19, 2005, The DTC sends a letter to Pamela Thompson asking for specified certificates to be returned to the DTC.

August 25, 2005, after 83 trading days, the Company’s stock exceeds a cumulative trading volume of more than 2 billion shares with a cumulative trading volume of 2,013,192,898 shares; over two thousand times the legitimate public float of 1,097,632 shares.

August 26, 2005 Thomas Megas issues a press release announcing the Company has rehired its former transfer agent, Pacific Stock Transfer. The Company’s legitimate capital structure becomes public. Shares authorized do not exceed 25,000,000. Shares outstanding do not exceed 4,890,000. Public float does not exceed 1,097,632. Brokers start reacting to this public confirmation of the Company’s legitimate capital structure. The Company ticker “BCIT” disappears from Fidelity accounts, and is replaced by cusip only. All brokers except Fidelity and Raymond James are still "open for business."

August 29, 2005, presumably in reaction to the confirmed public float announced by Pacific Stock Transfer the price per share soars to $0.053 within the first thirty minutes of trading. Ameritrade still allows sell orders, but begins rescinding buy orders placed days earlier and warns customers that buy orders or sell orders placed in the previous thirteen days might also be rescinded. First reports by customers of sell orders being denied surface. Most brokers still allow "sell only" orders. By 10:00 AM, Ameritrade halts all trading of the Company’s shares.

August 30, 2005, the first public mention of the August 16, 2005 DTC “Special Alert” notice is verbally cited as justification for restrictions by Scottrade. Ameritrade’s Izone and Scottrade restrict all trading on the Company’s shares. Scottrade Compliance Manager claims the SEC asked Scottrade to stop trading the Company’s shares before market open on August 30, 2005, one full day before the SEC suspends trading. Ameritrade provides first written admission that they are aware of the August 11, 2005 Company press release and the August 16, 2005 DTC “Special Alert” Notice regarding suspension of DTC services.

August 31, 2005 The SEC suspends trading of the Company’s common stock due to questions regarding the authenticity of securities and the accuracy of statements in press releases.


September 2005
September 2, 2005 Thomas Megas issues a press release announcing the Company’s cooperation with the SEC regarding the invalid share issuance investigation.

September 14, 2005 the NYSE issues Memorandum 05-67 suspending “buy-in” rule SEC Rule 15c3-3

September 15, 2005 FINRA (f/k/a NASD) issues “Special notice to Members” suspending “buy-in” rule SEC Rule 15c3-3.

September 21, 2005, The Company initiates a civil action against Pino in the District Court of Oklahoma County, Oklahoma, seeking the return of approximately 243,842,000 shares of common stock that were invalidly issued and the defendant’s receipt of proceeds from the sale of those shares (the “Pino Litigation”).

Capital Growth Financial, L.L.C. and JH Darbie &Co. intervene in the Pino Litigation.


October 2005
October 11, 2005, Thomas Megas issues a press release giving an update on the Company’s current situation.


January 2006
January 11, 2006, the Oklahoma County District Court enters an “Order Approving Settlement Agreement”, which settles the claims between the Company, Mario Pino, his associates and affiliated entities, Capital Growth Financial, L.L.C. and JH Darbie &Co.

In accordance with the settlement, the Company is owed certain sums in respect of the proceeds received through the sale of invalidly issued shares of common stock, and the Company issues 25,025,000 shares of common stock to JH Darbie &Co. and 219,723,000 shares of common stock to Capital Growth Financial, L.L.C. for an aggregate sum of 244,748,000 shares to be deposited with the DTCC in satisfaction of JH Darbie &Co.’s and Capital Growth Financial, L.L.C.’s short positions.


July 2006
July 12, 2006, Thomas Megas issues a press release updating shareholders of recent actions. Company has completed the filing of its Form 10-KSB for the years 2000-2005 inclusive, as well as its Form 10-QSB for the three months ended March 31, 2006. Having completed these report filings, the Company is finally current in its reporting obligations under applicable federal securities laws.


October 2006
The Company files form 15c-211 with NASDAQ and FINRA (f/k/a NASD) for relisting on the OTCBB exchange.

October 23, 2006 the Company is relisted on the OTCBB exchange.

October 27, 2006 Thomas Megas issues a press release announcing the Company’s successful 15c-211 application.

October 30, 2006 Thomas Megas issues a press release announcing ongoing corporate developments, and the hiring of Legacy Trading, Inc. as the Company’s market maker.


November 2006
November 1, 2006 Thomas Megas issues a press release announcing the Company’s issuance of new cusip number 05968X205 to replace former cusip number 05968X106.

November 7, 2006, the Company is delisted from the OTCBB exchange. Due to regulator “clerical errors” regarding the Company’s cusip numbers, the Company’s stock goes unquoted for four consecutive trading days and in violation of SEC Rule 15c-211, gets delisted from the OTCBB exchange.

November 20, 2006, Thomas Megas issues a press release announcing a mandatory certificate exchange.


December 2006
On December 12, 2006, the DTCC, NASDAQ, NASD, and other parties (together, the “Regulatory Parties”) hold a conference call with the principals of Energy Source, Inc. to discuss the unauthorized shares of Energy Source stock, and the possibility of Energy Source being allowed to trade again.

The Company’s representatives request assistance from the “Regulatory Parties” to resolve the matter without litigation; however, the company is directed that a lawsuit against the shareholders believed to be holding unauthorized shares of stock is necessary and required in order for Energy Source to determine its legitimate shareholder base.

The Energy Source representatives are told by the “Regulatory Parties” on the conference call that a court order determining which shares of company stock are valid will be required before the company can commence trading its stock again.

Based on the following known facts, the company files this lawsuit on April 11, 2007 with the belief that numerous defendants have obtained their fraudulently issued shares of stock from unauthorized third-party wrongdoers:

* Defendants are not one of the known 80 legitimate shareholders
* The Company’s transfer agent do not list the defendants as a verified shareholders
* Defendants purchase their stock in 2005 when the counterfeit shares are produced
* The Company does not receive any monies for the stock purchased by the defendants

The Company anticipates that any legitimate shareholders will be able to request stock certificates from their brokers and provide the Company with legitimate stock certificate numbers verifying their purchase of the Company’s stock.

The Company believes this lawsuit is the only means to determine the legitimate shareholder base for the Company’s stock, and to have the ability to commence trading again. It also believes that a court order determining that a shareholder holds unauthorized stock will provide a means for the defendants to seek recovery elsewhere.

The Company attempts to protect the numerous defendants in this case by seeking an order to seal the pleadings in order to protect the defendant’s confidential financial information.

Because the lawsuit turns into a case that was not what Energy Source originally thought it was pursuing (i.e. a lawsuit against wrongdoers), the Company dismisses this lawsuit after one month.


April 2007
April 11, 2007, the Company initiates a civil action against approximately 1,500 shareholders alleging they hold invalid stock certificates that were issued and distributed by Pino (the “Stock Certificate Litigation”).


May 2007
The Company dismisses the Stock Certificate Litigation without prejudice because the Board of Directors of the Company determines that continuing the litigation will be cost prohibitive.


October 2007
October 16, 2007, Company initiates a civil action against Mario Pino and associates in the Arizona State Superior Court, Maricopa County, seeking $126,350.10 in wage garnishments.


February 2008
February 25, 2008, the SEC initiates a civil action against Pino in the United States District Court for the District of Arizona, for violating the antifraud and securities registration provisions of the federal securities laws. SEC imposes remedial sanctions and a cease-and-desist order against Pamela J. Thompson.


June 2008
June 3, 2008, the Company holds its 2008 Annual Shareholder Meeting, at which the Company’s shareholders a) approved the amendment to the Company’s restated articles of incorporation changing the Company’s name from Bancorp International Group, Inc. to Energy Source, Inc., which was filed effective June 5, 2008, and b) authorized the board of directors to implement a reverse stock split at any time prior to June 30, 2008 in which all outstanding shares of the common stock, whether validly or invalidly issued will be combined at a ratio of 1-for-200.

June 27, 2008, the reverse stock split becomes effective.


August 2008
August 28, 2008, Company's attorneys, Conner & Winters, sendletter via facsimile to Anthony Carlisle at the Depository Trust & Clearing Corporation, Error Research Department outlining the timeline of events, and suggesting remedies to restore certainty to the Company's capitalization and resolve the issues related to the DTCC's decision to impose a "global lock." (copies Thomas Megas, company CEO)


September 2008
September 24, 2008, United States District Court for the District of Arizona judgment against Mario A. Pino in “Securities and Exchange Commission v. Mario A. Pino, No. CV 08-353-PHX-MHM”

September 25, 2008, Company's attorneys, Conner & Winters, send letter via electronic mail and Federal Express to Isaac Montal Depository Trust & clearing Corporation regarding the August 28, 2008 corespondence, and a September 9, 2008 phone call between Company attorneys and Mr. Montal. The Company attorneys request a response to their inquiries and proposed solutions to the "global lock' situation. (Copies to Larry E. Thompson, The Depository Trust & Clearing Corporation, Jennifer Fainer, The Nasdaq Stock Market, Inc., Thomas Megas, Company CEO)

October 2008
October 3, 2008, Corrected and Superseding Default Judgment as to Mario A. Pino


December 2008
December 12, 2008, Thomas Megas issues a press release. Energy Source Inc., Formally Traded as Bancorp International Inc., Announces Share Update.


May 2009
May 29, 2009, FINRA published a general notice (Including BCIT) addressing the deletion of approximately 51,000 inactive, suspended or expired OTC Equity securities from the OTC Reporting Facility (“ORF”). Based on member firm and industry feedback relating to the bulk deletion, FINRA is postponing the deletion effective date until Friday, July 31, 2009.


July 2009
July 10, 2009, United States Senator and Ranking Senate Finance Committee member Charles Grassley sends letter to SEC Chairwoman Mary L. Schapiro inquiring whether the Judgment has been collected from Mr. Pino, what efforts have been made towards restitution of the fraud victims, what the trading status of BCIT is, and whether there was a companion criminal investigation regarding Mr. Pino's corporate identity theft of BCIT.


August 2009
August 17, 2009, eMail to BCIT shareholder from the SEC-OIG stating that the OIG is opening an inquiry into recent complaints regarding the SEC's alleged failure to act regarding BCIT.





This description of events is based on the Company’s filings, press releases, conversations with the Company’s previous and current transfer agents as well as the complaint styled “Securities and Exchange Commission v. Mario A. Pino,” filed with the United States District Court for the District of Arizona on February 25, 2008, and the SEC order dated February 25, 2008, imposing remedial sanctions and a cease-and-desist order against Pamela J. Thompson.

[glaszman]

Because they were only short until they were able to deliver shares to close out their position. If you see, the global lock prevents anyone from trading this stock here in the U.S. and offshore. Gee glazman, why would the SEC be concerned about offshore BCIT trades?

the global lock does not restrict any trades. the global lock suspends all clearing activity at the DTC.


i understand your speculations, the only way any broker should accept waiting a whole year for the shares is if Megas sponsored Sytner, then the brokers MIGHT accept a letter of credit signed by the issuer of the shares which was Megas.

however, the hole in your theory is that the DTC is claiming the extra shares are counterfeit, and wants Megas to issue shares directly to cover them.

why wouldn't he just do that and then RS? that's what the creeps in the biz do. it's not hard.

[janice shell]

Correct, but Jeffries and Company were allowed to not only process those trades based upon future delivery of stock, they were also never fined for hiding 111 billion short sales on the tape.

What? JEFF wasn't selling short. NevWest was using JEFF to dump Edwards's shares. They were long sells.