Penny Stock Fraud Info

Friday, October 24, 2008

Updates and court docs on PrimeTV, Gatelinx, Gatelinx Global, GTX Global or GTXC VSTC.pk

Lots of info and court filings at this blog:

VSTC or Vision Technology Corporation… by any name, the gang that can’t shoot straight

A look, from the inside, at the stock scam that is (under various names and iterations) PrimeTV, Gatelinx, Gatelinx Global, GTX Global or GTXC. Now known as Vision Technology Corpporation (OTCBB symbol:VSTC.pk) with a relationship/alliance/ownership stake in SQL Minds. Whatever the name, THIS IS STILL A SCAM

A reader submitted this link about David Hagen and the GTX Global fraud, thanks!

Posted by Christine on 10/24 at 12:40 PM in General
Permalink • Tell-a-Friend

Saturday, September 27, 2008

Spammer Peter Leeds threatens with suit after refusal to accept his bribe

Lisa’s latest email:

Ms. Baker,

You clearly do not understand the seriousness of the situation. We have given you the opportunity to remove your slanderous commentary and you have replied by posting further slander accusing Peter Leeds of participating in spamming practices.

Our legal department will have to pursue other means for resolution as you are unwilling to rectify your conduct.

Govern yourself accordingly,

Lisa

Actually, I totally understand the seriousness of the situation.

Congress is about to gift another $700 billion dollars to the bankers as one of many more bailouts.

We’re in this dire situation because most people are just like Peter Leeds. They lie and deceive and spam and scam. They are so corrupt, they accept bribes and fail to publicize negative experiences with people and companies. ALL big corporations and especially banks and brokerage firms require that the employees sign confidentiality agreements.

Whistleblowers are threatened, paid off or even ordered by federal judges to SHUT UP.

I didn’t sign a confidentiality agreement and I am looking forward to the first lawsuit over my publications.

Back in the 90s, internet service provider Zoom.com tried to get a court order to make me remove my posts about their horrible service. I found out about it when the local paper called and let me know that they didn’t get it. About 10 years ago, free speech still existed. Zoom.com went out of business a few months later.

I’m SO looking forward to being sued for publicizing the truth and my opinion, I’m offering to accept service of the summons and complaint by fax to 571-222-1000.

Peter Leeds won’t have to pay a process server to serve the papers on me.

Of course I’ll file my counter claim(s). At the very least, he owes me $50 for spamming my site.

I can’t wait to conduct discovery.

How much is Peter Leeds paying people to spam blogs and forums with links to his site?

What is Kim’s real full name?

What is Lisa’s real full name?

Could it be Peter Leeds?

I can’t wait to find out.

Posted by Christine on 09/27 at 02:43 PM in Peter Leeds - scamming spammer
Permalink • Tell-a-Friend

Peter Leeds desperately trying to get me to delete my FACTUAL post

Peter Leeds is a spamming thug and now “Lisa” thinks I can be bought for $50 and that I will DELETE this post:

-Peter Leeds - spamming and scamming with deceptive self promotions

NEWSFLASH: I have NEVER deleted ANYTHING for payment. I’ve been offered $10,000 and I refused.

Peter Leeds clearly is not very bright. Offering me $50 for deletion of my work while he LEGALLY OWES me the $50 as per my clearly posted terms is an incredible act of stupidity.

This outrageous attempt to bribe me indicates that Peter Leeds accepts payments for promotions of stocks. Just because Peter Leeds might promote a company for $50, he assumes that I can also be bought. The scammers just can’t conceive that there are still a few people with integrity.

Here is my e-mail exchange with Lisa:

From:
To: “Christine Baker”
Subject: Re: PeterLeeds.com

Ms. Baker,

Your “opinion” places Peter Leeds under the heading “Penny Stock Fraud”. We are in no way a company that participates in any form of fraud.

You are publishing untruths on your webpage. These untruths are appearing in search engines when Mr. Leeds’ name is searched.

As you are aware, published content on a web page is subject to the same rules and regulations as any form of written material. This means that your categorization of our company and the statements made concerning Peter Leeds must meet a standard of truth in order to be legally published.

Our request is that we pay any fee that you feel is owed to you and you in turn remove us from your webpage.

We have been in business for over 15 years and are aware of our rights in relation to slander and defamation of character.

Thank you,

Lisa

----- Original Message -----
From: Christine Baker
To:
Sent: Friday, September 26, 2008 2:00 PM
Subject: Re: PeterLeeds.com

Lisa,

Several readers emailed to confirm my opinion. You can certainly pay the $50 and I would update accordingly, but delete nothing.

Christine

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

At 06:02 AM 9/26/2008, you wrote:

Ms. Baker,

I am not sure why you have taken such a negative stance against our company. If it is a matter of the $50.00 owing to you we would gladly pay the fee.

I am writing to request if there is any way we can diplomatically resolve the situation.

Lisa

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

----- Original Message -----

From: Christine Baker
To:
Sent: Thursday, September 25, 2008 11:37 PM

Subject: Re: PeterLeeds.com

I don’t think there’s anything to discuss. I can’t be bought or intimidated.

Christine Baker

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

At 08:34 PM 9/25/2008, you wrote:

Ms. Baker,

I am writing concerning a couple of posts that you have on your site concerning our company. Can we discuss?

Thanks,

Lisa

Dumb, dumber and so dumb, it’s astounding that Peter Leeds is still in business. And that’s proof that there’s a sucker born every second.

My reply to Lisa is this URL.

Posted by Christine on 09/27 at 01:35 PM in Peter Leeds - scamming spammer
Permalink • Tell-a-Friend

Wednesday, September 17, 2008

Attorney Phillip W. Offill (Consolidated Sports Media Group) license suspension

State Bar suspends lawyer Phillip W. Offill Jr.

Dallas attorney Phillip W. Offill Jr.’s law license has been suspended for conduct involving destruction or concealment of client files and concealing conflicts of interest.

Offill, 49, is prohibited from practicing law in Texas for three years, beginning May 1, and will be on probated suspension for two additional years. At the time of the conduct giving rise to the disbarment proceedings, Offill was a partner at Godwin Gruber LLP.

The Commission for Lawyer Discipline determined that Offill had violated rules of professional conduct by sending away a client’s original documents to eventually arrive at a trash dumpster, instead of giving the documents to the client as requested. The panel also found Offill had actual and potential conflicts of interest, which he misrepresented or failed to acknowledge.

Offill had been hired by Consolidated Sports Media Group to assist in raising capital and provide services to commence public trading of shares of Consolidated stock, which he had recommended as part of a general plan for fundraising.

A “blast fax” touting the company’s stock investment potential was published by one of Offill’s other clients and resulted in a lawsuit against Consolidated. The company terminated Offill in April of 2005 and demanded the return of all Consolidated files and corporate documents. Other demands for complete corporate records followed.

On the same day the lawsuit was filed in August 2005, Offill directed that certain original corporate documents belonging to Consolidated be sent to a friend and non-lawyer business associate of Offill’s in Kemp, Texas, where they were later discovered in a trash dumpster. The files found in the dumpster contained previously undisclosed, back-dated original documents that had served as the purported legal basis for unrestricted trading of Consolidated stock. The panel found that Offill either intended that the documents be concealed or destroyed, according to The State Bar of Texas.

Offill also has been ordered to pay to the State Bar of Texas $87,300 in attorney fees and expenses involved in the prosecution of the case.

Too little, too late.

It’s become rather obvious that the SEC doesn’t just ignore penny stock fraud, but failed on ALL levels. Is there any department in the US governments that’s not corrupt?

It’ll be up to you to design and implement a better system with a true democracy after America hit bottom. You might want to sign up for the Common Good Bank as future depositor or investor. You won’t get rich overnight, but you also won’t get ripped off.

Posted by Christine on 09/17 at 07:36 PM in General
Permalink • Tell-a-Friend

Monday, June 16, 2008

Multi BILLION dollar junkfax suit against Triple Play Stock Alert—Signallife

Monday, Jun. 16, 2008
Peter Strojnik, P.C. Files Class Action Lawsuit Against Triple Play Stock Alert

Lawsuit Alleges a Mass Distribution of Illegal Stock Promotion Faxes Subjecting Defendants to Liability Between $6 Billion and $18 Billion

PHOENIX — On June 16, 2008, Peter Strojnik, P.C. filed a proposed class action lawsuit against illegal stock manipulator Triple Play Stock Alert for transmitting between 12 million and 16 million unsolicited faxes in violation of the Telephone Consumer Protection Act. The Complaint alleges that Triple Play Stock Alert is a fictitious name used by stock manipulators who want to conceal their identity to avoid liability for their illegal activities. The suit was filed in the United States District Court for the District of Arizona under case number 2:08-cv-1116.

The Complaint identifies those who benefit by the illegal stock manipulation and the illegal mass faxes transmitted by Triple Play Stock Alert. In the Conspiracy Count, the Complaint alleges, “Plaintiff has identified two classes of stock manipulators who benefit by the illegal stock manipulation...Signalife, Inc. and/or Signalife’s insiders, officers, directors and/or shareholders.”

The complaint alleges that the illegal stock manipulators “are liable in statutory damages between $6 billion and $18 billion.”

“Damages in billions of dollars are possibly annihilating to these stock manipulators,” noted Peter Strojnik, a Phoenix attorney involved in the preparation of the lawsuit, “but Congress made a legislative decision authorizing such damages in order to stop the unlawful distribution of illegal faxes.”

The Complaint does not name Signalife or its officers, directors, insiders and shareholders as the “aiders and abettors” of the massive illegal fax scheme. “Who profited by the illegal scam?” quizzed Mr. Strojnik. “We will engage in discovery to determine who profiteered - or tried to profiteer - by the illegal fax transmissions, and we will know who the responsible parties are.”

For further information contact: Peter Strojnik, P.C., 3030 North Central Avenue, Suite 1401, Phoenix, AZ 85012, .

Peter Strojnik, P.C., Phoenix Peter Strojnik, 602-524-6602

Since the SEC does next to nothing and all too often settles its few investigations with payments to the SEC (not the defrauded investors), it’s up to attorneys to sue for junk faxes. It sure would help if we had a spam law with teeth like the TCPA.

Posted by Christine on 06/16 at 05:26 PM in
Permalink • Tell-a-Friend

Saturday, April 26, 2008

SEC took bribe from criminals involved in TWTN - AHFI - CNDD fraud - NC AG sues

U.S. charges Quebec man with securities fraud

Peter Brieger, Canwest News Service
Published: Saturday, April 26, 2008

TORONTO - A Montreal penny-stock promoter has been charged in North Carolina with securities fraud for his alleged role in a $23.4-million US pump-and-dump scheme.

State authorities laid conspiracy and money laundering charges this week against Bryan Kos and American David Hagen after a grand jury returned a two-count indictment. None of the allegations has been proven.

The charges come just more than a year after the U.S. Securities and Exchange Commission imposed fines on the Montrealer and another American colleague, Donald Oehmke, of $650,000 and $1.5-million, respectively, for fraudulently selling shares in public companies. The SEC settlement did not carry an admission of wrongdoing.

****Oehmke is listed in the criminal charges as one of eight unindicted co-conspirators.

In a 29-page indictment, the U.S. attorney in Charlotte, N.C., alleges that Kos and Hagen—who was convicted in 1990 of mail and bankruptcy fraud as well as money laundering—earned $23.4 million by artificially creating demand for shares in virtually worthless companies between 2003 and 2006.

Those companies included BodyScan, Twister, Absolute Health, Concorde, BioHeal and GTX Global. Hagen was GTX’s chief executive, according to the indictment.

Both men and the alleged co-conspirators are alleged to have hidden their ownership in the companies through various offshore entities and marketed the shares via the Internet, unsolicited faxes, press releases and disclosure documents.

Those promotional materials contained “material factual misrepresentations and omissions,” including earnings projections that were known to be “unrealistic and unjustifiable,” statements about company operations that were “false,” and did not disclose that two of the co-conspirators have criminal records, the indictment says.

It blows my mind to see how long they take to press charges.

“The SEC settlement did not carry an admission of wrongdoing.”

The SEC is as guilty as anyone.

The SEC took the money that these criminals stole from investors to settle the charges.

The SEC got its cut like the Mafia, protection money called “fine.” According to the figures in this article they got about 10%. I suspect some SEC officials got a few bucks on the side. And the victims got nothing.

The NC AG should go after the officers in those entirely FAKE companies like Absolute Fitness and Twister Networks.

It’s been a long time since I looked at my research at Twister Networks and Absolute Fitness

It was pretty intense for a while, getting involved with all these crooks.

RESTITUTION for the defrauded investors is unlikely.

The SEC is happy it got paid off and I doubt that Oehmke et al were dumb enough to NOT hide the loot. Thought I’d check the NC complaint to see whether they froze assets.

I couldn’t find a press release or the complaint at the NC AG’s site.

I couldn’t even find a way to search the site. Here is another article.

Posted by Christine on 04/26 at 12:57 PM in SELL - scammers and spammers, AHFI, CNDD
Permalink • Tell-a-Friend

Wednesday, February 13, 2008

America Asia Energy, Coattec Industries Inc., Detex Security Systems Inc. and Global Gaming Network

A reader submitted this post regarding my last posting at 8 indicted in ‘pump & dump’ securities fraud scheme—WHICH companies?, thank you!

Mother and son indicted for securities fraud

Posted Dec 7th 2007 4:51PM by Zac Bissonnette
Filed under: Law, Scandals

Thanks to Gary Weiss’ blog for bringing this one to my attention.

Beverlee Kamerling, 63, and her son, Nicholas Alexander, 22, have been indicted on 21 counts related to a large securities fraud scheme.

The pair, along with six others, allegedly took control of 6 companies (including America Asia Energy, Coattec Industries Inc., Detex Security Systems Inc. and Global Gaming Network Inc.), issued false and misleading press releases about the companies and engaged in fax blasts to promote the shares.

Of course, while all this happened they were also, allegedly, selling unregistered securities.

Real creative, mama and baby. That’s only been done about 11 million times.

I’ve always wondered why more women don’t seem to get involved in securities fraud—it’s possible that it’s just a reflection of the fact that Wall Street is still mainly male-dominated. Or perhaps, women are just more honest.

In any case, we can chalk this one up as a victory for equal opportunity securities fraud. And it is heartwarming to see mother and child bonding over the bilking of penny-stock players.

I might have some of those faxes. Now the question is whether any funds will be recovered.

And here is the is the 12/5/07 US Attorney’s Office announcement.

Posted by Christine on 02/13 at 12:48 PM in
Permalink • Tell-a-Friend

Saturday, January 05, 2008

8 indicted in ‘pump & dump’ securities fraud scheme—WHICH companies?

It sure would be very helpful to know which companies they “secretly acquired.”

8 indicted in ‘pump & dump’ securities fraud scheme

Associated Press - December 5, 2007 9:35 PM ET

SEATTLE (AP) - A federal grand jury in Seattle has indicted eight people in Washington, Utah and Florida in a securities fraud scheme that allegedly brought in $1.2 million.

The indictment says the defendants sold stock in companies they had secretly acquired. They sent out press releases and “junk faxes” to pump up interest in the stock before they sold it. It’s called a “pump & dump” scheme.

1 of the defendants, 63-year-old Beverlee Kamerling, of Bellevue, has a history of stock fraud. In 1999, she was barred by a U.S. District Court judge from ever serving as an officer or director in a public company and she was ordered to pay back $1.5 million from another scheme. This time, Kamerling is accused of hiding her involvement by listing her mother, son and boyfriend as officers.

The indictment includes 21 counts, including mail fraud, international money laundering and obstruction of justice. Kamerling and her 22-year-old son, Nicholas Alexander, were arrested today.

A Bellevue lawyer who assisted them pleaded guilty in federal court last week.

The others charged are 32-year-old Joel Ramsden, of Delray Beach, Florida; 37-year-old John Johansen, of Plantation, Florida; 66-year-old John Worthen, of Salt Lake City; 65-year-old Donald Goldstein, of Highland Beach, Florida, and his son, 35-year-old Jamie Goldstein, of Boca Raton., Florida; and 36-year-old Seth Quinto, of Miami.

Securities fraud and mail fraud carry maximum penalties of up to 20 years in federal prison and fines of up to $250,000.

Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

If you have any info on the companies involved, please contact me.

Posted by Christine on 01/05 at 02:15 PM in General
Permalink • Tell-a-Friend

Tuesday, August 14, 2007

Gulf Ethanol Corp.—GFET—association with uAuthorize (Uselton)

Gulf Ethanol buys land in China

Gulf Ethanol Corp. announced today that it purchased 25 acres of land near China, Texas to develop its production plant, company spokesman Dino Price said.

The company will use non-food based, cellulosic feed-stocks for the production of ethanol at its plants. It expects the plant to operate using a new hybrid sorghum developed specifically as an ethanol feed-stock by Texas A&M University.

A reader wrote that Dino Price is currently employed at uAuthorize Corporation in the position of President and Chief Technical Officer, uAuthorize Corporation is a subsidiary of Ablaze Technologies Inc. and Dino is not employed by GFET, according to the latest financial records, they only have 3 employees.

Here’s my posting about Darrel Uselton and uAuthorize, see Darrel Uselton—UACP: Notice of publication and demand for $1,130 for SPAM

Of course he didn’t pay.

Posted by Christine on 08/14 at 07:56 AM in Promoters, Darrel Uselton
Permalink • Tell-a-Friend

Tuesday, July 10, 2007

The Texas AG arrest video of penny stock pump and dumper Darrel Uselton

This is as cool as it gets!

Darrel Uselton’s 7/6/07 arrest video

Don’t I wish I saw more of those.

And here is the 7/9/07 TX AG press release:

Texas Attorney General, SEC File Market Manipulation and Stock Fraud Charges Against Two Texas Residents

Illegal “botnets” used to cheat investors out of more than $4.6 million

HOUSTON – Texas Attorney General Greg Abbott’s Special Investigations Unit charged two Texas residents with devising an illegal high-tech scheme to defraud investors out of more than $4.6 million. Both suspects, who were indicted July 3 by a Harris County grand jury, are the subjects of an ongoing investigation by several states and the Securities and Exchange Commission (SEC). In addition to the state’s charges, the suspects face securities fraud charges, which were filed today by the SEC.

Darrel Uselton, 40, of Katy, and his uncle, Jack Uselton, 69, of Houston, face organized criminal activity and money laundering charges. According to state and federal investigators, the Useltons reaped millions in illegal profits by promoting shares from at least 13 penny stock companies. The suspects then secretly sold those stocks into an artificially active market they created with manipulative trading schemes, spam e-mail campaigns, direct mailers, and Internet-based promotional activities.

The case is being prosecuted by the Texas Attorney General’s Office (OAG) and the Office of Harris County District Attorney Chuck Rosenthal with investigative assistance from the New York Attorney General’s Office. OAG investigators have seized more than $4.2 million from bank accounts associated with the defendants. Darrel Uselton was arrested by OAG investigators and is currently being held in Harris County Jail in lieu of $8 million bond. An arrest warrant has been issued for Jack Uselton.

“Investors will not tolerate scam artists who use the Internet to illegally manipulate stock prices,” Attorney General Abbott said. “Together with several states and the SEC, we have uncovered an elaborate scheme to defraud unwitting investors. The Office of the Attorney General will aggressively prosecute market manipulators, spammers and con artists whose illegal schemes defraud unsuspecting citizens.”

SEC Chairman Christopher Cox added: “This latest step in the Commission’s anti-spam initiative is intended to protect investors from fraud artists who would treat the investing public as their personal ATM machines. The use of bots to spread investment spam at exponentially higher rates is making this type of fraud an even more virulent threat to ordinary investors. Not only are victims getting hit with get-rich-quick spam, but by turning the victims’ computers into zombies, these fraudsters are sending out still more spam to others. Given estimates that up to one quarter of all personal computers connected to the Internet are part of a botnet, and the thriving market in selling lists of compromised computers to hackers and spammers, the SEC is taking this very seriously. We remain aggressively committed to tracking down anyone attempting to use bots to prey on investors with false or misleading spam about securities.”

The Commission’s complaint, which it filed with the U.S. District Court in Houston, charges the Useltons with orchestrating a series of spam e-mail campaigns. The scheme, which relied on an array of computer “botnets,” touted near-worthless penny stocks in millions of spam e-mails sent to potential investors. Those unsolicited electronic messages included baseless price projections and other unfounded claims. Each campaign, which featured a single company, lasted anywhere from several days to several weeks.

According to the SEC’s complaint, the Useltons earned more than $4.6 million from their fraudulent scheme between May 2005 and December 2006. The SEC’s complaint indicates the Useltons and companies they controlled received unrestricted penny stock shares despite little or no investment. Those shares were allegedly provided in return for their purported financing or promotional activities.

Darrel Uselton was disciplined by the National Association of Securities Dealers (NASD) in 2004 and 2005. In a 2002 action that has since settled, the SEC permanently enjoined Jack Uselton from violating anti-fraud regulations.

Posted by Christine on 07/10 at 07:08 PM in Promoters, Darrel Uselton
Permalink • Tell-a-Friend

Darrel Uselton and Jack Uselton sued for organized crime - stock scams

A reader submitted a couple links about the Useltons, thank you! Notably, I’m still waiting for Darrel Uselton to sue me.

July 10, 2007, 8:15AM
Katy man charged in alleged online stock scam

By STEVE McVICKER
Copyright 2007 Houston Chronicle

A Katy man faces organized crime charges in connection with an alleged scheme to sell worthless stocks over the Internet, according to the Texas Attorney General’s Office.

Investigators accuse Darrel Uselton, 40, of reaping “millions in illegal profits” by promoting shares in at least 13 worthless stock companies, then selling those stocks that had been artificially increased in value.

A statement from the attorney general’s office also accuses Uselton of orchestrating a series of spam e-mail campaigns to lure potential investors. The messages included “baseless price projections and other unfounded claims,” according to the statement.

Uselton is being held on $8 million bail at the Harris County Jail.

Uselton is also under investigation by the U.S. Securities and Exchange Commission and the Harris County District Attorney’s Office, according to the statement.

“This latest step in the Commission’s anti-spam initiative is intended to protect investors from fraud artists who would treat the investing public as their personal ATM machines,” SEC Chairman Christopher Cox said in the release.

Calls to Uselton’s home were not returned.

A second suspect is also being sought by authorities

The 12/29/06 Gulf Ethanol Corporation (Pink Sheets:GFET) press release announcing Uselton’s departure.

And here is the SEC complaint with the charges against JACK Uselton. Stock fraud seems to be the family business:

MORE...

Posted by Christine on 07/10 at 10:43 AM in Promoters, Darrel Uselton
Permalink • Tell-a-Friend

Friday, June 15, 2007

Former SEC lawyer Offill sued for pump and dump fraud

Ex-SEC lawyer accused of stock scam

Federal regulators say Dallas attorney helped set up pump-and-dump deal

12:00 AM CDT on Friday, June 15, 2007
By MICHAEL GRABELL / The Dallas Morning News

Dallas lawyer Phillip Offill spent 15 years with the U.S. Securities and Exchange Commission, going after stock scammers who were defrauding unsuspecting investors. Now the SEC alleges that Mr. Offill is one of those stock scammers.

The commission filed a lawsuit Thursday against Mr. Offill, the two principals of a Michigan company, and an Arizona securities lawyer, seeking to put them out of the penny stock business and get them to turn over their profit.

The investigators accuse Mr. Offill and the other lawyer of devising a scheme to pump up the stock price of a defunct company, sell the shares to unsuspecting investors and funnel profit back to company executives through a series of bogus investment firms. Investors who bought in lost hundreds of thousands of dollars, the SEC said.

Mr. Offill, who recently left the downtown law firm Godwin Pappas Ronquillo, could not be reached for comment. He has denied wrongdoing in lawsuits involving other stocks.

“The purpose of one of these pump-and-dump scams is to let the insider of the company dump their stock. So they need someone like these lawyers to come up with a subterfuge so they can secretly dump their shares,” said Marc Fagel, head of enforcement for the SEC’s San Francisco regional office, which conducted the investigation.

Thursday’s action names only one penny stock, but a much larger SEC investigation into a Dallas-based investment network – reported by The Dallas Morning News in March – has requested trading records on dozens of companies in which Mr. Offill was either an officer or corporate counsel or helped set up an investment firm.

Mr. Offill was also involved with several companies whose trading was suspended in an SEC crackdown on e-mail stock promotions called Operation Spamalot.

Thursday’s announcement represents the first government action against Mr. Offill.

“If true, that’s a horrible indictment, because Mr. Offill used to work for the SEC,” said Randy Johnston, an attorney representing an Addison businessman suing Mr. Offill. “I just hate the idea of anyone learning all about the system and then leaving government service to go out and exploit it.”

According to the SEC lawsuit announced Thursday, Peter Fisher and his son, Tyler Fisher, of Canada incorporated AVL Global Inc. in April 2004 to make a GPS tracking device for companies that repossess automobiles.

Usually, companies that want to sell stock to the public must register with the SEC and disclose financial information. But the Fishers used a legal shortcut that allows a company to make a limited offering to certain investors.

Those shares usually are labeled “restricted,” meaning they cannot be immediately resold to the public and have to be held as a long-term investment. But Arizona securities lawyer David Stocker drafted a legal opinion that asserted the stock wasn’t restricted, giving the investment firms millions of free-trading shares.

The SEC says that legal opinion was false and a scheme to get around securities laws.

Mr. Stocker didn’t return a call for comment to his law office.

“Full and accurate public disclosure of AVL Global’s business operations in 2004 would have revealed that the company was failing and a poor investment opportunity,” the SEC said in its lawsuit.

Mr. Stocker and Mr. Offill then set up two investment firms in Dallas – Lake Tahoe Ski Rental Inc. and Collective Thought Holdings Inc. The companies pretended to be longtime investors, promising in contracts that they had no intention to sell the shares, according to the lawsuit.

Days after buying millions of shares, the companies transferred them to other investors who transferred them back to the Fishers, their companies and their friends and business associates, the lawsuit alleges.

In June or July 2004, after AVL Global’s stock went public, the Fishers traveled to Orlando, Fla., to meet with a stock promoter. There they devised a plan to send millions of unsolicited faxes and press releases that the SEC says contained false and misleading statements, the lawsuit says.

In a news release distributed in December 2004, AVL Global said its GPS devices were being tested by the Botswana Department of Defense and could result in an order of 3,000 to 5,000 units.

But months before, the company’s distributor had realized that Botswana didn’t have the satellite coverage to support the GPS devices and sent the test units back to AVL Global, the SEC says.

In a press release in February 2005, AVL Global reported “a dramatic increase for its tracking devices since the beginning of the new year.” But by then, the SEC says, business was so bad that AVL Global had closed it manufacturing plant, moved into a 100-square-foot office in a strip mall and had only one employee – Tyler Fisher.

As the stock rose, his father, Peter Fisher, dumped his shares and netted $160,000, according to the lawsuit, and the Florida stock promoter dumped his shares for a profit of about $419,000.

Without admitting or denying wrongdoing, Tyler Fisher has settled the SEC’s charges against him by paying a $25,000 civil fine and agreeing not to serve as an officer or director of a penny stock company for five years.

The allegations made by the SEC against Mr. Offill and the others are similar to those made by an Addison video producer, Consolidated Sports Media Group Inc.

The company – which made Girls Gone Wild-style videos at NASCAR races – accused Mr. Offill in an August 2005 lawsuit of using a legal loophole that gave business associates and legal clients millions of freely tradable shares, arranging for a junk fax touting the stock and then selling the shares.

That lawsuit recently settled for confidential terms.

Another person named in the Consolidated Sports lawsuit, Colleyville investor Doyle Mark White, wasn’t named in Thursday’s SEC action, but Texas Secretary of State records list him as the sole director for Lake Tahoe Ski Rental.

Mr. White, a former Irving stockbroker who was barred from the U.S. securities industry last year, didn’t return calls for comment Thursday. In a deposition in the Consolidated Sports lawsuit, Mr. White said he didn’t know why he was listed as an officer of Lake Tahoe Ski Rental.

An SEC press release in January said its investigation into the Dallas-based investment network was progressing.

It must be very tempting to see for 15 years how easy it is to make millions.

Posted by Christine on 06/15 at 07:37 AM in General
Permalink • Tell-a-Friend

Monday, June 11, 2007

Guangzhou Global Telecom—GZGT - Forbes and Business Week

Davis Freeberg’s outstanding research of Guangzhou Global Telecom (GZGT) and the graphics showing the relationship between Avalon, Global Telcom Holding Ltd, Godels, Solomon, Barber & Co., International Tea Company, Technology Resources Inc., WES Consulting, Contracted Services, Inc, MCG Diversified Inc., Electro Energy, Ivecon, Diane Harrison and Randall Drake:

GZGT: Golden Dragon or Sleeping Snake?

As so often, a group of people will continually manipulate markets and the SEC does nothing.

And while Davis started his investigation due to email spam, even the “reputable” media is in on it:

… So far, the only mainstream media outlet to pick up on GZGT’s innovative marketing attempts, has been Kiplingers. When the company was first approached, they knew something didn’t look right and took steps to warn their readers. Unfortunately, other business publications seem to be more than willing to sellout. Business Week and Forbes have both agreed to run the ads, regardless of how questionable this might be ethically. I would encourage both publications to take a closer look at GZGT, instead of their advertising revenue, before putting the company in front of their readers. ...

Anything for a buck.

Posted by Christine on 06/11 at 07:44 AM in General
Permalink • Tell-a-Friend

Thursday, March 29, 2007

Reader mail: scammed at hotstockmarket.com - large loss on Nord Oil—NDOL (now NWOG)

This is a typical example of how unsophisticated investors get scammed on the web. The investment sites are continually bombarded by crooks and also people who pump shares just because they are extremely DUMB and don’t realize that the press releases and spam are nothing but lies. And then there are the people who got ripped off themselves and pump what they own in hopes of lowering their losses.

In short, don’t believe ANYTHING, verify everything.

I wanted to inform people about a scam stock website and a particular company that ruined my life, probably forever. The website is “www.hotstockmarket.com” and the company is Northwest Oil Group.

I am a 29 year old college student who lost my job of 8 years in February 2006. I was severely depressed as I was beginning my University career and had just lost over $20,000 in yearly income.

I kept getting spam emails about these penny stocks that were projected with 100s of percent growth. Normally I would’ve deleted them immediately, but I was desperate to replace my income. I did much research and found hotstockmarket.com and opened an etrade account with a home equity line of credit. I first invested in large, well known companies and was slightly successful, and then I decided after reading some of the posts on hotstockmarket.com, I’d try penny stocks.

At this time, the gas prices had gone from $2.25/gallon to $3.89/gallon within 1.5 months, and I was driving 240 miles round trip to school 3 times a week because of the high cost of housing. So, I thought I could make up some of the gas hike in oil stocks.

I found a Russian Oil company called Nord Oil (NDOL) and the people on hotstockmarket.com were raving about it. It had increased 300% in a few months with a buyout pending. I put a few thousand dollars into it and the stock went up. The company then released a news statement saying that another oil company “Northwest oil Group” was going to “buy out” NDOL for $2.17/share when the current price was around $.68/share.

The day after this press release, the stock skyrocketed to over $1.30/share before market close on Friday and I made a pretty good profit, but I wasn’t home to sell the stocks. I thought that was OK, because the press release said $2.17 and everyone on the website said the stock was a bargain at less than $1.50/share.

Then Monday came and the first thing, NDOL made another press release changing the “buyout” to a “reverse merger” this made the stock plummet to less than .70/stock. But after a couple of hours, the price was back to over $1.00 due to investors thinking that the “merger” would eventually result in the $2.17 value. This was because the second press release stated that the $2.17 was still the projected value.

For a couple of days, the stock fluctuated between $.90 and $1.10, and then it started a steady decline. Since then, the company has changed symbol to NWOG and released many Press releases and supposed financial statements. Along with people on hotstockmarket.com persisting that this company is a great oil producer and will be worth well over $2.00 within a year.

Well, I was paralyzed as a new investor when the prices began to drop, and by that time, I had somehow invested over $17,000 into the stock to try to average down. The price slowly went down and I was in shock, I kept reading posts saying that the stock would go up, and the company would go to a higher stock exchange, so I never sold, fearing that I would miss out on recouping my losses.

The result was more losses.

I finally sold my last bit of NWOG in March 2007, almost a year after I initially purchased NDOL, I sold the stock at $.05/share and have $419 left out of $17,500 initial investment. That’s a $17,000 loss in less than a year.

We have since refinanced our house to cover the loss, but the scar of that decision I made based on hotstockmarket.com and NDOL information in my desperation has psychologically ruined me. I’ve gained over 80lbs, and I really have no happiness because I feel so much guilt over my decision.

I have contacted attorneys, but have had no success in finding one who handles penny stock cases. These websites like hotstockmarket.com and companies like NWOG are no different than any other gambling or fraud organization. They realize that there are vulnerable people on the internet and are ready and capable of taking full advantage of these people. I feel that this is just as much of a crime as going into a bank and robbing it, or breaking into a house. Except these people are worse because they steal with the guise of legitimacy. This should be considered a crime in this country.

Anyone who reads this, I hope will never invest in any penny stocks, no matter what they hear or read. I hope my downfall can at least help others not to make the same mistake.

Sincerely,

...

I can only agree with the advice and thanks for sharing!

And DO look for news regarding SEC investigations a few times a year. I know it’s not pleasant to be reminded of this ordeal, but occasionally investors may be able to recoup at least some of the losses. Chances aren’t great, but better than winning the lottery.

I’ve had several requests from reporters for contact info of investors who suffered losses due to penny stock spam / junk faxes / scams for interviews, this is one person willing to talk. Please contact me by email for more info.

Posted by Christine on 03/29 at 08:24 PM in General
Permalink • Tell-a-Friend

Sunday, March 25, 2007

SEC investigates lawyers, accountants, brokers and consultants orchestrating pump and dumps

I’ve gotten those faxes and I sure hope they get those crooks, think I named Artec in my 2005 junk fax suit.

Exclusive: SEC investigating possible ‘pump-and-dump’ scam

Inquiry looks into whether network victimized stock buyers

03:16 AM CDT on Sunday, March 25, 2007
By BRENDAN M. CASE and MICHAEL GRABELL / The Dallas Morning News
;

The stock tips hit millions of fax machines and e-mail accounts.

“Get filthy rich as the recovery begins,” said one message after Hurricane Katrina. “Double profit opportunities from America’s energy crisis,” said another.

At first, the shares soared on the penny stock market, a loosely regulated bazaar of small-time companies where some investors seek to buy a piece of the next big thing.

Then, after sell-offs by some lucky or well-informed investors, the stocks plunged, taking millions from the pockets of recent buyers.

The losers in such cases often blame bad fortune. But the U.S. Securities and Exchange Commission is investigating whether they were victims of fax and e-mail stock scams orchestrated by a group of lawyers, accountants, brokers and consultants – many in the Dallas area.

The group “may have manipulated or attempted to manipulate the share price of certain companies by making false or misleading statements to the public,” said SEC enforcement lawyer Kevin Muhlendorf, in an affidavit filed in federal court in Washington, D.C.

The SEC won’t discuss particulars of its investigation, but such classic “pump-and-dump” scams are a high priority for the agency because e-mail spam and instant online stock trading make small investors more vulnerable than ever.

“With the Internet technology, there is so much more ability to get to the retail investors through their computers,” said Kit Addleman, associate director of enforcement for the SEC’s regional office in Fort Worth.

SEC inquiry

The two-year investigation into what officials call the “shell creation group” is being handled from SEC headquarters in Washington, D.C.

SEC subpoenas, obtained by The Dallas Morning News, list more than 100 people and companies, and corporate records show that many of those companies tie back to a common group of Dallas-area business people. One person who comes up again and again is a former SEC attorney who used to enforce the nation’s securities laws.

SEC officials cautioned that inquiries don’t always lead to legal proceedings and that subpoenas don’t mean that the people named in them have broken the law. The SEC hasn’t publicly said which individuals may be under scrutiny, or identified everyone who profited from the stock trades.

But two civil lawsuits filed in Dallas allege that specific people profited from manipulating stock in companies that are part of the SEC investigation.

National Storm Management Inc., the roofing firm whose stock soared and plunged after Katrina, makes such allegations against David Gordon, a Tulsa, Okla., securities lawyer. He was once sued unsuccessfully by his brother, accused of orchestrating a stock fraud on the family jewelry business in Conroe, Texas.

The company with the racetrack video, Consolidated Sports Media Group Inc., sued Dallas lawyer Phillip Offill. He spent 15 years in the SEC’s Fort Worth office and until recently was a partner in the law firm Godwin Pappas Langley Ronquillo LLP.

Mr. Gordon and Mr. Offill deny any wrongdoing. They say they are the victims of the companies’ own mismanagement and misdeeds. And the business people accused of stock manipulation in the civil lawsuits contend that they lost money as company managers profited.

“This is a big, huge investigation the SEC is doing that involves well over 100 companies,” said Jules Slim, an Irving lawyer representing people accused of stock fraud in both lawsuits. “We’re not really sure who they’re going after. The plaintiffs are simply capitalizing on the fact that those people have been subpoenaed.”

So far, the SEC investigation has resulted in only one penalty.

On Jan. 17, the SEC announced an agreement with John Shrewder, an Oklahoma stock promoter accused of sending out 87 million faxes in 2004 and 2005 to manipulate the stock price of Artec Inc., the business with the anti-cancer drug, and other companies.

Mr. Shrewder did not admit or deny wrongdoing, but he acknowledged liability for $1,031,000 in improper trading profits and interest. But he will have to pay back only $150,000 to the U.S. government under a settlement with the SEC that considered his financial condition.

And this month, as part of a crackdown on e-mail stock fraud called Operation Spamalot, the SEC suspended trading in four companies that listed Mr. Offill as corporate counsel in disclosure reports. He also had ties to four others, including one that listed a company he controlled, Supreme City Holdings, as a major shareholder.

Mr. Offill denied ownership interest in the Spamalot companies and said he formed Supreme City Holdings on behalf of a client, whom he wouldn’t identify. When asked about another company in which a firm he controlled owned stock, Mr. Offill said he couldn’t discuss client matters.

Two of the Spamalot companies also showed up on SEC subpoenas related to the investigation into the shell creation group.

Taking a risk

Why would anyone send out 87 million faxes, or tens of millions of e-mails?

Because, experts say, in some cases, they’re a good way to separate investors from their money.

Researchers at Purdue University and Oxford University recently found that electronically pumped stocks show “a significantly positive return” at first and then tend to collapse, leaving unsuspecting investors with big losses that they often attribute to the gamble of the stock market.

“What are you going to do? It was a risk and I took it,” said Jon Browar, a Consolidated Sports shareholder who owns a screen-printing business outside Kansas City. “My kids aren’t going to go without because of this, but in the same respect, there’s a lot more I can do with $3,000.”

Federal and state laws prohibit the distribution of unsolicited faxes to hype a stock. Both junk faxes and spam e-mails may violate securities laws if they contain falsehoods about a company or if promoters don’t disclose that they have been paid to tout a stock.

For example, the SEC alleged that the Artec faxes understated Artec’s debt and the number of shares available to make each share appear more valuable.

Moreover, while Mr. Shrewder’s faxes urged other investors to buy shares, he was selling them.

“Shrewder was actively selling Artec shares for less than $.50 while he was recommending that others buy them until the price reaches between $2 and $4,” the SEC said in its complaint.

Mr. Shrewder said in a court filing that he was unaware of any misrepresentations in the faxes. He also said he had disclosed in the faxes that he might trade in the shares. In an interview, he said his faxes only went to people who asked to receive them.

Expanded inquiry

The SEC opened its Artec investigation in December 2004 after officials noticed suspicious trading and price movements. By June 2005, the investigation had expanded to reflect interest in the larger circle of people who appeared to be involved in what the SEC came to call the “shell creation group.”

After Katrina, e-mails and faxes enticed investors to buy shares in National Storm and in Deep Rock Oil & Gas Inc., an Oklahoma energy company. National Storm’s stock price rose from 51 cents to $2.41. Deep Rock’s price increased tenfold, to $1.11. Within months, both fell to less than a quarter a share.

Phone records of a Florida investor – who the SEC alleges played a role in producing and disseminating the faxes – showed several calls to numbers associated with the Dallas-based shell group, the SEC said.

Some of those phone calls, listed in SEC court documents, trace back to Mr. Gordon, the Tulsa lawyer for Deep Rock who also helped take National Storm public.

National Storm has sued Mr. Gordon, accusing him of masterminding stock manipulation schemes.

“The Shell Creation Group’s activities frequently prove ruinous to the legitimate private companies they deceive,” National Storm said in court documents.

Mr. Slim, who is representing Mr. Gordon and others in the lawsuit, said the company’s counterclaim is a distraction from the original complaint. The lawsuit was filed against National Storm by Trucolor Inc., which is partly owned by Mr. Gordon.

Trucolor alleged in the lawsuit that National Storm cheated it by breaching a loan that had been induced through fraud.

In an interview, Mr. Gordon said that he had followed all securities laws and that he believed the information released by Deep Rock and National Storm was accurate. He said he didn’t know who distributed the blast faxes.

“Believe me, I do not do pump-and-dumps,” he said.

Consolidated Sports

The Consolidated Sports lawsuit alleges Mr. Offill and others made millions of dollars by perpetrating a pump-and-dump scam on the company’s stock.

The company says Mr. Offill arranged for a merger with an inactive corporation to use a legal loophole that gave investors millions of freely tradable shares that didn’t have to be registered with the SEC. Mr. Offill brought investors into Consolidated Sports, including companies that he controlled, the lawsuit says.

In November 2004, a junk fax went out touting the stock. Consolidated Sports lawyers say the fax was approved by Mr. Offill and drafted by one of his associates.

“The specific intent behind the blast fax was to cause the price of the stock in CSMG to spike upward, after which Offill’s friends, clients and business associates, and entities controlled by Offill, would sell their stock, leaving the other shareholders and the innocent purchasers to bear the losses,” Consolidated Sports’ lawsuit says.

Mr. Offill, who has also been a lawyer for Artec, declined to be interviewed, referring questions to his lawyer, Richard Sayles. In January, Mr. Offill left Godwin Pappas to pursue his own practice, Mr. Sayles said. Mr. Offill said in a deposition that he didn’t know about the blast fax until after it was sent.

“A fax of this nature – that appears oriented towards providing investor awareness on a public basis – is something that an issuer should never send,” he said.

A trial in the Consolidated Sports lawsuit is expected this year.

A WEB OF LAWSUITS AND SUBPOENAS

Corporate records and lawsuits indicate the following people have ties to the Securities and Exchange Commission’s investigation of the “shell creation group.” SEC inquiries do not necessarily lead to legal proceedings or indicate that people named in subpoenas have broken any law.

DAVID GORDON
A Tulsa, Okla., securities lawyer, Mr. Gordon, 45, has been accused of stock fraud in several lawsuits, including one from Consolidated Sports Media Group Inc. and another brought unsuccessfully by his brother. He was the lawyer for Deep Rock Oil & Gas Inc. and helped take National Storm Management Inc. public. In a lawsuit, National Storm called him a mastermind of pump-and-dump schemes. More than a half-dozen companies on a subpoena issued to a Dallas brokerage have ties to him. He and his associates have denied wrongdoing.

PHILLIP OFFILL
A former SEC enforcement attorney in Fort Worth, Mr. Offill, 48, was a partner until recently at Godwin Pappas Langley Ronquillo LLP in Dallas. He was a corporate lawyer for Artec and Consolidated Sports. Consolidated Sports says that he helped orchestrate a pump-and-dump scheme on its stock using a junk fax and that two companies he controlled profited. He says he never saw the blast fax before it went out. Some three dozen companies mentioned in the SEC subpoenas list him as an officer, corporate counsel, or in some other capacity. In other cases, one of his companies is listed as a major shareholder. He denies any wrongdoing.

MARK LINDBERG
An amateur golfer, Mr. Lindberg, 39, of Coppell, helped take Consolidated Sports and National Storm public, according to Consolidated Sports court documents and National Storm annual reports. Consolidated Sports said in its lawsuit that Mr. Lindberg paid investor Doyle Mark White for arranging a junk fax touting its stock. Nearly 20 companies on the SEC subpoenas list Mr. Lindberg as an officer or consultant, or one of his companies as a major shareholder. And he received several calls from a Florida investor the SEC says played a role in the junk faxes after Hurricane Katrina. Mr. Lindberg declined an interview but denied the allegations in court documents. In a deposition, he said that he’s never been involved in a pump-and-dump scheme and that he transferred the money to Mr. White’s firm on behalf of another company.

DOYLE MARK WHITE
Consolidated Sports said in its lawsuit that Mr. White, 49, of Colleyville, sent a junk fax touting its stock behind the company’s back. Mr. White, a former Irving stockbroker, was barred from the U.S. securities industry last year, accused of manipulating a separate penny stock. In the settlement, he did not admit or deny wrongdoing. Mr. White did not respond to requests for an interview. In a deposition, he said he sent the fax to a distribution service after Consolidated Sports approved it. The company denies that.

GARY ZINN
Described as an international businessman with ties to Bulgaria, Mr. Zinn, of Rancho Cucamonga, Calif., was sued by the SEC for not answering a subpoena related to the stocks of National Storm and Deep Rock, which were allegedly manipulated after Katrina. A judge ordered him to comply, and the case was dismissed. The SEC said in court documents that Mr. Zinn has ties to two companies managed in London, High Charm Ltd. and Putnam International Consulting, which each made more than $50,000 trading in the stocks. Putnam had paid a marketing company to distribute the junk faxes, according to a disclaimer on the faxes. High Charm and Putnam were also top shareholders in Consolidated Sports. Mr. Zinn and his lawyer did not return phone calls seeking comment.

JOSHUA LANKFORD
An entrepreneur who once sold neckties in downtown skyscrapers, Mr. Lankford, 33, became one of the most successful stockbrokers at Dallas brokerage Barron Moore Inc., even becoming part owner before leaving. In its lawsuit, Consolidated Sports says he participated in a pump-and-dump on its stock. He denied the allegations in a deposition, saying he warned company executives that he couldn’t raise money for them until they had revenue.

CHASITY THOMPSON AND JASON FREEMAN
As a business consultant, Ms. Thompson, 28, helped incorporate Artec, Consolidated Sports and National Storm. Plano-based Routh Stock Transfer Inc., which she ran with Mr. Freeman, 31, served as a transfer agent for National Storm, Deep Rock and about 10 other companies listed on SEC subpoenas. Ms. Thompson and Mr. Freeman were consultants for several other companies on the subpoenas. Consolidated Sports alleges that Ms. Thompson falsified corporate records to help commit fraud on its stock. Her attorney said she has done nothing wrong. Earlier this month, Mr. Freeman filed a shareholder lawsuit against Consolidated Sports, saying the company fraudulently funneled money to a consultant who used it to repay investors in past failed ventures. Consolidated Sports lawyers said that hundreds of hours of video footage show the money was spent legitimately.

I still have my faxes from 2004 and 2005, too bad I’m so busy. And it’s probably a good idea to wait to see whether they’ll file for bankruptcy.

Posted by Christine on 03/25 at 10:04 AM in General
Permalink • Tell-a-Friend

Page 1 of 4 pages 1 2 3 > Last »

About

Who wins? How?