Replies to post #24954 on DD Support Board and Research Team

[janice shell]

Ahhh, it's his first piece I read. He did a terrific job.

[janice shell]

Here's something mildly interesting. The German version of AwesomePennyStocks isn't working today:

http://loveforstocks.com/

Maybe it's just down for maintenance.

[nodummy]

SEFE - backtracking to find some of the Debt Note holders that may be selling during the paid promotions

According to the 10K filed last month all total during February and March of 2012, the Company issued a total of 20,669,998 shares of common stock were issued for debt converted the total amount of $660,000. All interest accrued thereupon of $84,076, as of the date of conversion, was forgiven.

20,669,998 share issued just ahead of the paid promotions for past debts set up by the insiders of SEFE!!



In this post I already identified the original owner of one of the Notes = Harold Sciotto:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=74349816

Here is the original agreement from May of 2011 for the $70,000 debt Note which ended up being converted into the 2,700,000 shares now held by Speed Evolution Ltd

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7800058

Originally the debt Note was issued to Westpac Communications, Inc

Westpac Communications, Inc is controlled by Harold Sciotto

http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=GNQvA6DtpajPqcZ3NfOUxg%253d%253d&nt7=0

Sciotto/Westpac Communications Inc also got a $100,000 debt Note

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7739859

According to this 8K Sciotto stopped being a non-related 3rd party and became a director of SEFE in June of 2011:

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8005498

On June 20, the Registrant appointed Mr. Harold W. Sciotto as a director to fill a vacancy on its Board of Directors. Mr. Sciotto was employed by Sears Roebuck & Company, from June 1964 until his retirement in May 1993, in various sales and management positions. These positions encompassed sotre sales and department management positions, such as store merchandise manager, district business manager, and store manager of three stores in Arizona. His duties included sales, advertising, personnel management, financial statement preparation and accounting. From 1989 through the present, Mr. Sciotto has also been an independent business consultant to various early-stage business ventures. Mr. Sciotto most recently served as Corporate Secretary and Treasurer of ECOtality, Inc. (NASD: ECTY) from December of 2004 until November of 2010, and as a Director of ECOtality from December of 2004 until October of 2009.


Guess we know now why he transferred his shares from Westpac Communications to Speed Evolution (a foreign entity)


On March 11, 2011, the Company entered into a Convertible Debenture Agreement, whereby the Company borrowed $70,000 from a third party entity. During the year ended December 31, 2011, a total of $28,194 has been amortized and recorded as interest expense. Subsequent to December 31, 2011, the holder converted the principal amount of the note into 2,700,000 shares of common stock of the Company and all interest accrued has been forgiven. - that works out to $.026/share without interest included



----------------------


Looking back in the SEFE filings some more I have identified two more debt Note holders - Stephen M Kerr (father of Shannon Kerr - Director of SEFE) and Michael and Victoria Quiel

http://www.sec.gov/Archives/edgar/data/1321573/000139390510000387/mcdl_8k.htm

On June 25, 2010, the Registrant entered into two Bridge Loan Agreements (the “Notes”), with Lynn Cole Capital Corporation and Serio Capital, Ltd. (collectively, the “Holders”), each for $145,000, for an aggregate amount of $290,000. The Notes are due and payable in full on the earlier of June 25, 2011 or at the closing of a private placement offering that nets the Registrant a minimum of $2,000,000 (“Maturity”). The Notes bear an interest rate of 10% per annum, payable on Maturity. In connection with the Notes, and for no additional consideration, the Registrant issued to the Holders an aggregate of 1,000,000 shares of common stock, with each Holder receiving 500,000 shares of common stock.

Here is Serio Capital Ltd

http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=eQ2I6n%252besZm9BYUCw4DW%252bA%253d%253d&nt7=0

The sole officer and director until March of 2012 when the list was amended was Stephen M. Kerr (be sure you check the box to view inactive officers)

Lynn Cole Capital Corp was a beneficial shareholder of Harold Sciotto's other entity, ECOtatilty Inc (ECTY) [formerly Alchemy Enterprises, Ltd (ACHM)]. The person signing for Lynn Cole Capital Corp was Victoria Quiel

http://www.sec.gov/Archives/edgar/data/1301206/000135403706000009/xslF345X02/primary_doc.xml

On June 25, 2010, the Company entered into a Bridge Loan Agreement, whereby the Company borrowed $120,000 from a related party entity. Accrued interest expense through December 31, 2011 in relation to this note is $18,214. Subsequent to December 31, 2011, the holders converted the principal amount of the notes into 3,661,016 shares of common stock of the Company and all interest accrued has been forgiven. - that works out to $.03775/share with the interest included

On June 25, 2010, the Company entered into a Bridge Loan Agreement, whereby the Company borrowed $145,000 from a non-related entity. Accrued interest expense through December 31, 2011 in relation to this note is $22,008. Subsequent to December 31, 2011, the holders converted the principal amount of the notes into 4,423,728 shares of common stock of the Company and all interest accrued has been forgiven. - that works out to $.0379/share with the interest included



----------------


So out of the 20,669,998 shares, that's:

3,661,016 shares linked to Stephen Kerr (plus 500,000 received last year)

4,423,728 shares linked to Michael and Victoria Quiel (plus 500,000 received last year)

2,700,000 shares linked to Harold Sciotto

and

9,885,254 shares whose ownership is yet to be determined


----------------


It was BuyersStrike that pointed out that Stephen Kerr and Michael Quiel were both arrested for defrauding the IRS as well as the intimate connections between Kerr, Quiel, Deparini, Goodman (Riverbend LLC), and Nevdahl - this is turning into quite the little insider pump&dump enrichment scheme

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=74983982

http://buyersstrike.wordpress.com/2012/04/26/like-father-like-daughter-the-kerr-family-and-sefe-inc-sefe/

Riverbend LLC is a Nevada company that was formed less than two weeks ago, on the 12th of April. Its registered agent is our good friend, former SEFE CFO Patrick Deparini’s very own Nascent Group! Riverband is listed as have $0 in capital, which makes your author very curious as to how it could then loan SEFE $200,000.00 just 13 days later.

The only officer listed on Riverbend‘s paperwork (find it here) is a gentleman in Spokane, WA named Craig Goodman, with an address at 319 W. Hastings Rd., B101, Spokane, WA. That is the Spokane office of World Equity Group, home to Craig Goodman and Mark Nevdahl. Nevdahl can also be found at another Spokane area firm, Regal Securities, where in December of last year he, football legend Willie Gault, stock tout Ryan Rauch, and three others landed in very hot water in the Heart Tronics (HRTT) pump and dump scandal. Read what the SEC had to say about the scandal here, a good Spokane Spokesman-Review article here, and read the full complaint here. According to the complaint:

In addition to Heart Tronics, Stein, Gault and Perkins, the SEC charged three other individuals involved in the scheme, including Stein’s chauffer and handyman Martin B. Carter of Boca Raton, Fla., who carried out the fraud with him. The SEC also charged stock promoter Ryan A. Rauch of San Clemente, Calif., as well as Mark C. Nevdahl of Spokane, Wash., who was the trustee and stockbroker for a number of nominee accounts that Stein used to unlawfully sell Heart Tronics stock. In a parallel criminal investigation, the U.S. Department of Justice today announced the arrest of Stein.

Your author was very curious about other entities where Mark and Craig might be involved. Mark Nevdahl is the Treasurer of the Quiel Family Foundation, Inc., and the Kerr Family Foundation, Inc. The President of the Kerr Family Foundation is Stephen M. Kerr. On the recent Form D, one of the listed Directors of SEFE is Shannon Kerr. Interesting. Perhaps more interesting is that earlier this year, in January, Stephen M Kerr and Michael Quiel were arrested. According to a DOJ press release:

http://www.justice.gov/opa/pr/2012/January/12-tax-136.html

Phoenix-area businessmen Stephen M. Kerr and Michael Quiel and former San Diego attorney Christopher M. Rusch were charged in Phoenix with conspiracy to defraud the Internal Revenue Service (IRS) for concealing millions of dollars in assets in numerous secret Swiss bank accounts held at UBS and elsewhere, the Justice Department and Internal Revenue Service (IRS) announced…

According to the indictment, Kerr and Quiel separately owned and operated a number of businesses, including two venture capital firms: CCN Worldwide Inc. and Legend Advisory Corporation, respectively. These companies provided financial capital to start-up companies and other services to businesses seeking to become publicly traded through mergers and acquisitions….

Beginning in or before 2004, and continuing through at least December 2007, Kerr and Quiel obtained control of shares of stock of publicly traded domestic companies in a way that concealed their ownership of the stock. Kerr and Quiel then deposited the stock, or proceeds from the sale of the stock, to multiple undeclared bank accounts set up with the assistance of Rusch at UBS in Switzerland and at another Swiss bank. These accounts were all held in the names of nominee entities to further conceal Kerr’s and Quiel’s ownership. Kerr and Quiel also used the accounts to conceal income earned from the subsequent sale of this stock from the IRS.

Stephen M. Kerr is no stranger to trouble, and not a reputable Venture Capitalist. A quick search of NASD records shows that he was, however, intimately involved in the Denver area penny stock scene of the late 80s and early 90s, and was part of the scandal that led to the expulsion of one firm, Tri-Bradley Investments and the “removal” of two others from the NASD. Read a bit more about the Tri-Bradley scandal here. A quick search of public records show both Stephen M. Kerr and the younger Shannon Kerr haved shared an address in Arizona.

[eelfland]

Hey! You're getting famous! Read the Ihub posts referenced in this piece:

http://seekingalpha.com/article/554371-sefe-inc-s-hot-air-balloon-about-to-burst

[beenhadbefore]

Been doing a little DD on names and addresses and thought this was interesting, anyone care to shed some light!

So, MIDNIGHT CANDLE COMPANY “which is now called SEFE INC” had the same address in California where Michael Quiel was a broker……..interesting?


SEFE INC formerly
MIDNIGHT CANDLE COMPANY
(Address of principal executive offices - 79013 Bayside Court, Indo, California 92201)
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=5899581-707-52349&type=sect&TabIndex=2&companyid=668312&ppu=%252fdefault.aspx%253fcik%253d1321573
When you Map this address using Google-Earth it appears to be someone’s house. This is the address of principal executive offices of MIDNIGHT CANDLE COMPANY before it switched to Arizona. This address is also the exact same as 79013 Bayside Court, Bermuda Dunes, California 92201 which is also the location of;
Monaco Securities, Inc. ("Monaco"), formerly known as Desert Mountain
According to this NASD disciplinary action
http://www.sec.gov/litigation/admin/3439056.txt
This is also where Michael L Quiel was a broker and according to his own bio.
http://workface.com/e/michaellawrencequiel
http://michaellawrencequiel.com/

How clever!
Check it out for yourself and use one of these:
http://www.zipmap.net/California/Riverside_County/Bermuda_Dunes.htm
https://www.usps.com
http://maps.google.com

[beenhadbefore]

Stephen M Kerr is the owner of SERIO CAPITAL, LTD. and, SERIO CAPITAL LTD is one of the bridge lenders in SEFE INC. even though SERIO CAPITAL LTD is not named in the indictment he has. Mr. Kerr, according to the indictment, obtained shares of stock in a way to conceal his ownership. Then, he sold the shares through several brokerage accounts and hid the cash off shore. Then, brought the cash back to the U.S. and acquired golf courses in a tax attorney’s name. This guy is very organized and underhanded how could anyone trust him when his name is involved in anything? Well, there are exceptions……this management team does.

Bridge loan in Sefe Inc.:
Was made on June 25, 2010
SERIO CAPITAL, LTD.
Owner: Stephen M Kerr
Filed on: 05/26/2004
This link shows Stephen M Kerr is the registered owner of Serio Capital ltd.
Ex hibit4 http://www.nvannualreport.com/entities-DPC-SERIO-CAPITAL-LTD.aspx

[nodummy]

SEFE - more from buyersstrike

The two most recent articles by buyersstrike that further tie together all of the insiders involved in the insider enrichment pump&dump scheme known as SEFE. I again want to praise the outstanding research and dot connecting that buyersstrike has been doing with SEFE


Humble Harold Sciotto (SEFE, ECTY, AUGT, SPDL)

http://buyersstrike.wordpress.com/2012/05/02/humble-harold-sciotto-sefe-ecty-augt-spdl/

Quick Take – Humble Harold and Patrick D (SEFE, NCTW)

http://buyersstrike.wordpress.com/2012/05/03/quick-take-humble-harold-and-patrick-d-sefe-nctw/

In The Mass Psychology of Suckers, Parts 1 and 2, we began exploring the chronology of Sefe, Inc. (SEFE) and the players involved. We will continue with another installment in that series soon, but today let’s take a look at SEFE director “Humble” Harold Sciotto.

Harold joined the board of SEFE last summer, the June 20, 2011 8k filing announcing his arrival discussed his background:

Mr. Sciotto was employed by Sears Roebuck & Company, from June 1964 until his retirement in May 1993, in various sales and management positions. These positions encompassed store sales and department management positions, such as store merchandise manager, district business manager, and store manager of three stores in Arizona. His duties included sales, advertising, personnel management, financial statement preparation and accounting. From 1989 through the present, Mr. Sciotto has also been an independent business consultant to various early-stage business ventures. Mr. Sciotto most recently served as Corporate Secretary and Treasurer of ECOtality, Inc. (NASD: ECTY) from December of 2004 until November of 2010, and as a Director of ECOtality from December of 2004 until October of 2009.

True to his nickname, Humble Harold does not have a big ego. He is certainly not one to hog the spotlight. His resume is understated. He does not mention, not for a minute, that he was far more than just the Corporate Secretary, Treasurer, and Director of ECTY. In fact, in December 2004 he took control of the shell, Alchemy Enterprises, Ltd. that became scandal-plagued ECTY. (We will come back to ECOtality in a moment)

And, Humble Harold never boasts that after working at a Sears store he got involved in the underbelly of the stock world. He became a stock promoter. His firm, Westpac Communications, Inc., of 3812 N. Gallatin St. in Mesa, AZ, owned a world-famous internet tout site, the ironically named Qualitystocks.net.

QualityStocks.net is owned by Westpac Communications, Inc. Neither QS.net nor Westpac Communications is a registered investment adviser or broker/dealer. Neither QS.net nor Westpac Communications makes any recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk. The information on this website is not designed to be used as the basis for an investment decision. You should confirm to your own satisfaction the veracity of any information prior to entering into any investment. The decision to buy or sell any security that may be featured by QS.net is done purely at the reader’s own risk. Under no circumstances will its owners, officers, or employees be held liable for any losses incurred by the use of information contained in this website.

He certainly does not mention the SEC halting at least three Qualitystocks clients (see here). And the 8k is very silent on the fact that ECTY, SEFE, and Spindle (SPDL) shared the same 6821 E. Thomas Rd address in Scottsdale, AZ. Humble Harold never mentions his work for Modavox (MDVX) now known as Augme Tech (AUGT).*

Nowhere in that June 2011 8k is it mentioned that HH‘s Westpac loaned SEFE $100k in February of 2011. nor does it mention that Westpac was the buyer of the $70k convertible debenture issued in March 2011 by SEFE. And you will never hear him brag about just how many shares those two notes eventually were converted into during early 2012, though surely Humble Harold knows that the holding period under Rule 144 for insiders, like Directors, is one year, which is just about when the SEFE stock promotion began!

Humble Harold doesn’t even brag about the shell company he formed with his son Sam Sciotto , Ginseng Forest.**

Sciotto doesn’t talk about his involvement in SGC Holdings (SGCH), a shell company which eventually became pink sheeter Medistem (MEDS). This company was a NevWest Securities deal. Yes, the same NevWest that was expelled from the industry for their shenanigans in the CMKX fraud. Read about FINRA charging NevWest with money laundering here, the SEC going after them here, and a great article from Gary Weiss here.

The original SB-2 filing for SGC Holdings lists several shareholders, Harold Sciotto is one, but two others of note are:

Lynn-Cole Capital Corporation c/o Victoria P. Quiel

Legend Advisory Corporation c/o Mike Quiel

You might recall that Mike Quiel was recently arrested, along with Stephen Kerr, the father of SEFE director Shannon Kerr (catch up on the Kerrs here). We’ll be seeing Lynn-Cole Capital again real soon.

Humble Harold did mention that he left ECTY in November of 2010. He did not mention why. In what is surely a coincidence, in October of 2010, ECTY received some very bad news:

On October 28, 2010, we and our ECOtality North America subsidiary, as well as certain individuals, received subpoenas from the SEC pursuant to a formal Private Order of Investigation, in connection with a fact-finding inquiry as to trading in shares of our common stock from the period between August 1, 2008 and August 31, 2009. The SEC has informed us, and the terms of the subpoenas confirm, that the fact-finding inquiry should not be construed as a determination that violations of law have occurred. At a meeting held on November 1, 2010, our Board of Directors delegated to the Audit Committee the responsibility and authority to respond to the SEC subpoenas. We are cooperating fully with the SEC.

While ECTY, to any knowledgeable observer, was clearly a scam, the Department of Energy, under Secretary Chu and the current administration, are clearly blind. The retards in DC thought that ECTY, just like Ener1 (HEV) and Solyndra, was a darn fine investment and a great place to put people’s tax dollars! From a great article by Scribe:

Ecotality, which manufactures charging stations for electric vehicles, was hit with an SEC subpoena in October 2010, a development first reported by Scribe. It had already received nearly $90 million in Energy Department grants as part of the stimulus package. Even after the SEC investigation started, it received another $26 million.

The company was a poster child of the administration’s effort to get a million plugin hybrid electric vehicles on the road by 2015. President Obama lauded Ecotality specifically in his 2011 State of the Union Address, as did Energy Secretary Steven Chu.

ECTY, and CEO Jonathan Read, are nothing if not politically connected. From another great Scribe piece:

In 2006, when Read was brought on as CEO, he must have looked an appealing candidate for a company looking to land federal subsidies. His son Colin, who Scribe briefly discussed in part one, was the assistant finance director for the 2006 congressional campaign of then-Arizona State Senator Harry Mitchell (D).

Mitchell won in 2006, and eventually sat on the Science and Technology Subcommittee on Technology and Innovation, and the Transportation and Infrastructure Subcommittee on Highways and Transit – both key panels for Ecotality’s purposes.

During Mitchell’s House race, he held a joint fundraiser with Slade Mead, a State Senate colleague and candidate for superintendent, at the home of then-governor Janet Napolitano. The following year, Ecotality elected Mead to its board of directors.

Thanks to these connections, the US government has funneled over 115mm in taxpayer money into ECTY, with little to show for it besides embarrassment, a very angry Congressman (read more about Congressman Andy Harris’ fight against the ECTY scam here), and an SEC investigation (read the subpoena here).

One of the individuals specifically named in the ECTY subpoena is Humble Harold. He may have a small ego, but he might also have big legal bills.

*Former MDVX/AUGT alum David Ide recently left the board of SEFE, before the most recent rash of promotional activity. But do not fret, David Ide still has a job with another company in this ring of scams, Spindle (SPDL), more on that little gem soon.

**Ginseng eventually became Carol Shelby International (CSBI) a terrible stain on American racing legend Carol Shelby, which is yet another story for yet another day.


Harold’s Westpac Communications did stock promotion work, back in 2007 and 2008, for Patrick Deparini‘s Nascent Wine (NCTW). From Pinkinvesting.com

Remember Patrick Deparini*? He is the former CFO of SEFE, runs the presitgious Nascent Group, and is a paralegal at the esteemed law firm of the other Harold, Harold P. Gewerter, Esq.. The firm’s most famous client? CMKX mastermind John Edwards.

Small world.




Past research and information about the SEFE P&D:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=74349816

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=74409885

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=74983982

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=74984867


The other buyersstrike articles here:

http://buyersstrike.wordpress.com/2012/04/23/the-mass-psychology-of-suckers-part-1-sefe-inc-sefe/

http://buyersstrike.wordpress.com/2012/04/24/the-mass-psychology-of-suckers-part-2-sefe-inc-sefe/

http://buyersstrike.wordpress.com/2012/04/25/covering-their-tracks-sefe/

http://buyersstrike.wordpress.com/2012/04/26/like-father-like-daughter-the-kerr-family-and-sefe-inc-sefe/

[Helter Skelter]

I see that nodummy has been here. That'll make my "work" infinitely easier.

Good stuff.

Just glancing through it, I like the info on the FORM D filed way late for the Rule 506 exemption. Those shares offered, and sold, by the 506 exemption should come with a one year restriction.

That tardy filing, and other information, should be enough to pique the SEC's antennas...if not, I'll twist them off, lOl...

Thanks, once again, for your superlative work (see below), nodummy.

---o---

SEFE - look at this 8k filed on 4/25/12 for a $2,000,000 debt Note to be given to Riverbend LLC

http://www.sec.gov/Archives/edgar/data/1321573/000141588912000598/sefe8kapr252012.htm

Riverbend LLC is a brand new NV business entity just created on 4/12/12

http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=LEPVyPV4cmbHpsGhmGYQbg%253d%253d&nt7=0

only officer is Craig Goodman

look at the other business entities represented by that same Resident Agent (Nascent Group)

http://nvsos.gov/SOSEntitySearch/RACorps.aspx?fsnain=56QKb%252f3zo5rlO%252fu04rHF8A%253d%253d&RAName=NASCENT+GROUP%2c+INC.

The last one - Spindle Inc (SPDL) shares the same address as SEFE Inc

http://nvsos.gov/SOSEntitySearch/CorpDetails.aspx?lx8nvq=xh2iz%252fz4LHH9MTz%252bAEp4lg%253d%253d&nt7=0

6821 E. Thomas Road
Scottsdale, AZ 85251

----------------------------

That led me to the buyersstrike blog, and I have to say I'm quite impressed.

I'd like to post his first 4 pieces on SEFE

Part 1) The Mass Psychology of Suckers (Part 1) Sefe Inc (SEFE) posted on April 23, 2012

http://buyersstrike.wordpress.com/2012/04/23/the-mass-psychology-of-suckers-part-1-sefe-inc-sefe/

Every once in a while someone will ask us here at BuyersStrike! about a small company that is, in our eyes, obviously a stock promotion. But to some it seems real. They want to believe it is real. And now is one of those times. Introducing SEFE, Inc. (SEFE), a company that hits new highs on increasing volume every single day. A company that today possesses a market cap of over $110mm, but at the end of 2011 had less than $6000.00 in the bank.

SEFE is also the newest client of Geoffrey Eiten‘s notorious stock pumping investor relations shop OTC Financial Network aka National Financial Communications, and Paul Cohen‘s ridiculous Grassroots Research aka Cohen Research. More on those two fine fellows in a bit, but first lets look at the origins of SEFE, Inc.

Sleepy Indio, California, most famous for the Coachella Valley Music Festival every spring, was also in 2005 the birthplace of SEFE. SEFE began life as a humble Nevada incorporated shell called Midnight Candle Company (MCDL). The sole officer, director, and 95.6% majority shareholder was Ms. Helen C. Carey. The company was being run out of a 1700 square foot condominium at 79013 Bayside Court in Indio. See it here.

A woman with the same name, and of the same age, shows up linked to several properties in the Phoenix/Scottsdale area of Arizona. Remember that.

In January 2006, shares of Midnight Candle were listed for trading on the Pink Sheets. By May 2008, enough time had passed to “season” the shell, and activity began. First Helen decided to do a 30 for 1 forward split of the stock, and to increase the amount of authorized shares to 200,000,000.

Then, sometime between May and July of 2008, a gentleman named Patrick Deparini linked up with Helen and became the CFO. According to his resume, Deparini went to school at the University of Nevada – Las Vegas in 1993, finally emerging with a B.S. in Finance in 1999. This genius took six years to get a degree from UNLV. One wonders who else was fighting for the rights to hire this wunderkind. Midnight Candle must have been lucky.

Or was it something else, different from luck? For Mr. Deparini’s resume shows lots of fascinating, overlapping work experience. From 2001 up until this very day Patrick has worked for the Nascent Group:

In reality the Nascent Group is one of many reverse-merger schlock house located in Las Vegas. Check out their website here. At the same time that Patrick was working in the dirtiest part of the stock market at Nascent Group, he was also working as a lowly paralegal.

Paralegal
Law Offices of Harold P. Gewerter, Esq., Ltd.

Wow! If Patrick formed the securities law and litigation division, he must have been some amazing paralegal. Or is Patrick just buffing his resume a lot?

Gewerter has been practicing law since 1979, and his business appears to be almost entirely securities law and litigation. The Las Vegas law firm of Harold P. Gewerter is connected to many penny stocks, including two that seem to do nothing more than create and promote more reverse merger trash! Check out the website for Gerwerter’s Crown Equity Holdings (CRWE) a one and a half cent special, and under a penny pinksheeter Public Company Management Corp (PCMC). However, Harold is most well known for his role as John Edwards‘ attorney in the CMKM Diamonds (CMKX) scam. Edwards was instrumental in putting the CKMX deal together in the first place. According to an article in the Las Vegas Review-Journal.

The Las Vegas Review Journal has done a great job reporting on the CMKX fraud. Read more about it here, and more here, and in the New York Times, here and here.

CMKX was quite a phenomenon, although an obvious fraud its low share price and massive media attention created a large following of shareholders who were virtually cult-like. While likely accidental, the frequency and repetition of the CMKM Diamonds message, name, and ticker, would have made Goebbels proud. Many CMKX shareholders, like China Agritech (CAGC) shareholders, still have not accepted that they were scammed, check out this moron who still appears to believe that the SEC, the DTCC, and other actors secretly conspired to keep untold riches out of CMKX shareholders’ hands.

But enough for today. Let’s come back to Patrick, Midnight Candle, Geoff Eiten and SEFE very soon…

Part 2) The Mass Psychology of Suckers Part 2 – Sefe, Inc. (SEFE) posted on April 24, 2012:

http://buyersstrike.wordpress.com/2012/04/24/the-mass-psychology-of-suckers-part-2-sefe-inc-sefe/

When we ended The Mass Psychology of Suckers Part 1, we were examining the unique resume of SEFE (aka Midnight Candle) CFO, Patrick Deparini. At first glance he appears to be an odd choice as CFO. He had no real experience working in finance, nor in the candle business. His real job was as a paralegal at the law firm of Harold P. Gewerter, Esq. Ltd.

Harold Gewerter’s most famous client, John Edwards*, was mighty busy by the mid-00s. Not only was John the mastermind behind the CMKX fraud, but he was also behind Pinnacle Business Management (PBCM), US Canadian Minerals (UCAD), St. George Minerals (SGGM), BioTech Medics (BMCS), Global Diamond Exchange (GBDX), Equitable Mining (EQBM), OMDA Oil and Gas (OOAG), and Grand Entertainment & Music (GMSC). Read more in this excellent piece by Janice Shell, here, or go to Pacer, and read the entire USA v. Turino, Edwards, et. al. indictment of March 24, 2010.

So, perhaps some of John’s industriousness rubbed off on Patrick, for soon Patrick started his very own little shell company. In late 2004, young Patrick, then only 29, was listed as the CEO and majority shareholder of Las Vegas based Nascent Wine Company (NCTW) today a pink sheet stock that sells for less than 1/4 of a cent per share.

How did SEFE (fka MDCL) CEO, Helen C. Cary, sitting in Indio, CA and Patrick Deparini, in the offices of a sleazy law firm in Las Vegas, find one another?

The lawyer that is listed on the original SB-2 filing (see here) for NCTW was Wendy E. Miller. Wendy was not only an attorney at the firm of Harold P. Gewerter, Esq. Ltd., (see here) but she also represented Harold in the most recent SEC v CMKX case, filed in November of 2011.

The lawyer that is listed on the original SB-2 filing for MCDL (nka SEFE)? Wendy E. Miller yet again (check it out here). What a surprise!

First Gewerter‘s firm creates a shell, then they install one of their own as CFO, but now what? By the end of 2008, SEFE (fka MDCL) has still not generate a dime in revenues, and has only $272.00 in the bank. By the end of 2009, according to their 10K, the company still has no revenues and only $11 remains on the balance sheet.

Where is the money coming from to pay the ongoing costs of the shell? A 10Q filing, available here, for the quarter ended March 31, 2010 gives a clue, when it explains the $16k in Notes Payable on the balance sheet:

Represents numerous unsecured loans aggregating $16,535 from a non-affiliated third-party that loans the Company money on an as-needed basis. The notes are due on demand and bear no interest.

What non-affiliated third-party would ever loan money to a candle company, that has not had a penny in revenues since its formation almost 6 years prior, on an as-needed basis at no interest? Clearly something is up. And we will not have to wait long to find out…

*Edwards‘ wife Diana Lee Edwards (fka Diana Lee Flaherty) is also a felon, and a onetime fugitive from justice herself. She was involved in the Phoenix Metals USA II (PMTU) scam in the mid 90s. Read more about her and PMTU here and here.

Part 3) Covering their tracks? (SEFE) posted on April 25, 2012:

http://buyersstrike.wordpress.com/2012/04/25/covering-their-tracks-sefe/

Let’s take another quick break from our chronological look at current reverse-merger darling SEFE, Inc. (SEFE), to examine this morning’s Form D filing from the company.

Form D filings are required when a company attempts to raise money under one of the Reg D exemptions to the registration requirements of the SEC. Essentially, the company is attempting to sell unregistered securites. The rules are very clear, and one of the rules concerns when the Form D must be submitted:

An issuer must file a new notice with the SEC for each new offering of securities no later than 15 calendar days after the “date of first sale” of securities in the offering

So, if a company met the Reg D exemption and were to sell stock on April 10, 2012, they would need to file their Form D today.

On SEFE‘s newly filed Form D, available here, they announce that this is a new notice and they wish to raise $8mm under Rule 506. As of the date of the notice they have raised $854,500.00. Not very impressive fundraising for a company with a stock as hot as SEFE‘s.

But that is not the fascinating part. The filing gets quite interesting when one examines the date of first sale. It is April 13, 2011.

SEFE is a little less than a year delinquent on this filing. So is the company trying to cover up their tracks?

Part 4) Like Father, Like Daughter? The Kerr Family and Sefe, Inc. – SEFE posted on April 26, 2012:

April 25th was a busy day for Sefe, Inc. (SEFE fka MDCL). Before the open they issued a very late Form D and after the close they issued a new 8K. This new filing described a financing they had just completed, The company states:

On April 25, 2012 (“Issuance Date”), the Registrant entered into a Securities Purchase Agreement (the “SPA”), with Riverbend, LLC (the “Riverbend”), whereby Riverbend agrees to purchase, and the Registrant agrees to issue, Debentures up to a total principal amount of $2,000,000 with warrants attached to purchase up to 500,000 shares of common stock of the Registrant at $1.00 per share. Subsequent purchases shall be mutually agreed upon. Each Debenture will accrue interest on the unpaid principal of each individual Debenture at the rate of eight percent (8%) per year (computed on the basis of a 365-day year and the actual days elapsed) from the date each Debenture is created until paid. The Registrant shall have the option to repay the entire principal amount and all accrued interest at any time on or before the Due Date.

On the Issuance Date, the first closing occurred, whereby a Debenture was issued to Riverbend in the aggregate amount of $200,000. All principal and interest accrued thereupon shall be due and payable on or before April 24, 2013.

And just who is their benefactor?

Riverbend LLC is a Nevada company that was formed less than two weeks ago, on the 12th of April. Its registered agent is our good friend, former SEFE CFO Patrick Deparini’s very own Nascent Group! Riverband is listed as have $0 in capital, which makes your author very curious as to how it could then loan SEFE $200,000.00 just 13 days later.

The only officer listed on Riverbend‘s paperwork (find it here) is a gentleman in Spokane, WA named Craig Goodman, with an address at 319 W. Hastings Rd., B101, Spokane, WA. That is the Spokane office of World Equity Group, home to Craig Goodman and Mark Nevdahl. Nevdahl can also be found at another Spokane area firm, Regal Securities, where in December of last year he, football legend Willie Gault, stock tout Ryan Rauch, and three others landed in very hot water in the Heart Tronics (HRTT) pump and dump scandal. Read what the SEC had to say about the scandal here, a good Spokane Spokesman-Review article here, and read the full complaint here. According to the complaint:

In addition to Heart Tronics, Stein, Gault and Perkins, the SEC charged three other individuals involved in the scheme, including Stein’s chauffer and handyman Martin B. Carter of Boca Raton, Fla., who carried out the fraud with him. The SEC also charged stock promoter Ryan A. Rauch of San Clemente, Calif., as well as Mark C. Nevdahl of Spokane, Wash., who was the trustee and stockbroker for a number of nominee accounts that Stein used to unlawfully sell Heart Tronics stock. In a parallel criminal investigation, the U.S. Department of Justice today announced the arrest of Stein.

Your author was very curious about other entities where Mark and Craig might be involved. Mark Nevdahl is the Treasurer of the Quiel Family Foundation, Inc., and the Kerr Family Foundation, Inc. The President of the Kerr Family Foundation is Stephen M. Kerr. On the recent Form D, one of the listed Directors of SEFE is Shannon Kerr. Interesting. Perhaps more interesting is that earlier this year, in January, Stephen M Kerr and Michael Quiel were arrested. According to a DOJ press release:

Phoenix-area businessmen Stephen M. Kerr and Michael Quiel and former San Diego attorney Christopher M. Rusch were charged in Phoenix with conspiracy to defraud the Internal Revenue Service (IRS) for concealing millions of dollars in assets in numerous secret Swiss bank accounts held at UBS and elsewhere, the Justice Department and Internal Revenue Service (IRS) announced…

According to the indictment, Kerr and Quiel separately owned and operated a number of businesses, including two venture capital firms: CCN Worldwide Inc. and Legend Advisory Corporation, respectively. These companies provided financial capital to start-up companies and other services to businesses seeking to become publicly traded through mergers and acquisitions….

Beginning in or before 2004, and continuing through at least December 2007, Kerr and Quiel obtained control of shares of stock of publicly traded domestic companies in a way that concealed their ownership of the stock. Kerr and Quiel then deposited the stock, or proceeds from the sale of the stock, to multiple undeclared bank accounts set up with the assistance of Rusch at UBS in Switzerland and at another Swiss bank. These accounts were all held in the names of nominee entities to further conceal Kerr’s and Quiel’s ownership. Kerr and Quiel also used the accounts to conceal income earned from the subsequent sale of this stock from the IRS.

Stephen M. Kerr is no stranger to trouble, and not a reputable Venture Capitalist. A quick search of NASD records shows that he was, however, intimately involved in the Denver area penny stock scene of the late 80s and early 90s, and was part of the scandal that led to the expulsion of one firm, Tri-Bradley Investments and the “removal” of two others from the NASD. Read a bit more about the Tri-Bradley scandal here. A quick search of public records show both Stephen M. Kerr and the younger Shannon Kerr haved shared an address in Arizona.

Now the story behind the SEFE‘s shadowy benefactors is becoming a lot less mysterious, and the end game fairly clear. Like father like daughter?