GTGP:The Rise and Fall...
SUNDAY OCTOBER 7 2012 - MSE-Global: The Fallacaro - Global Technologies Group operation functions like a three dimensional chess game. The whole scheme works because of three almost independent selfish and self-serving entities. On level one, the organizer, James Fallacaro, finds an old corporation in a remote place and establishes it under Security and Exchange Commission (SEC), but as a cheapie company with a "glorious" name and "glamorous" purpose. He issues dozens of millions of shares of stock at a small value - 1/10 or 1/100th of a penny - hence the name "penny stock." He pays himself - and his wife in this situation - his lawyer and other people for services - a few million shares here and there goes a long way. He then develops a project for the rebuilt corporation built on penny stock. In this case, the whole scheme is built on a remediation project to remove mercury from chimney smoke. Planning ahead carefully, he pays for a license on a remediation process proven not to work over more than a decade - and starts pitching it to potential "penny stock" inventory at a modest price, maybe a cent or two, but considering his associates have no money in the stock to start with - it is all profit in cash.
So far, so good - he, his wife, and pals are making big bucks, and the stock begins to trade on the "pink slip" public market. He feeds enough new stock into the market to keep himself paid and keeping the market liquid with stocks to trade. This takes us to the second dimension of the multiple dimension game - he now has shareholders to manipulate and keep satisfied. While most shareholders are legit investors - he hires 2-3 shills - or promoters, called "pumpers" who defend the stock and promote the share with outrageous praise, lies, and keep it rolling along. The "pumpers" sell the magnificent talents of the organizer and his project. This stage of the game goes on for years - with the organizer living off his pay from sale of the penny stock and his pals sell their stocks until there are millions and millions of shares on the market. These shareholders fuss and fume, argue and bitch, and continue to invest and solicit other new stockholders. This game of providing more and more stock and paying themselves with the income continues, largely based on the grand promotion of a worthless mercury removal technique. The organizer, Fallacaro in this case, is careful not to file required financial paperwork with the SEC, knowing they won't make an issue of it for years - five years in this case. He also knows they will suspend trading and may well revoke the shares - destroying the company completely - leaving all the shareholders as 100% losers. Through all of this period, none of the shareholders exert any of their power as shareholders - they just fuss and fight with the expert instigation of the "pumpers."
To make shareholders buy more stock and keep the millions of pennies rolling in, the organizer - Fallacaro in the case - keep the promotion of the phony mercury game going - and also in this case - associates with MERDI-MSE and pays for some testing and tempts an absolutely bankrupt company to play along - suggesting a sale - and in this case - seems to have stretched it out for more than a year. MERDI-MSE is complicit in the promotional game, understanding exactly their role, getting a few thousand bucks in here and there - and maybe a sale before it is all done.
That brings it to today - the SEC has shut the Global company down demanding documentation, the SEC moves with great caution to put together an "air tight" case. MERDI has to know about the background of all this and is hoping for some money - but Fallacaro really doesn't have the money, really can't raise the money because of his SEC troubles - so the deal has to fail. His lawyers have to be telling him not to issue any promotional statements. He doesn't have the capital or skills to run MSE - so if MERDI does close on it - it means they get some money somehow - and get clear and wash their hands of it. There will be huge repercussions among the GTGP shareholders who have no interest in any of this in terms of ownership, and will be tough customers, full of lawsuits and claims when the find that out and really believe it. None of this has much benefit for Butte - and MSE will soon vanish. 10-07-12
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