Penny Stock Fraud Info
Tuesday, May 31, 2005
5/30/05: My SEC complaint about the Wellstone Filters—WLSF - illegal promotions
Christine Baker
[address deleted]
SEC Complaint Center
450 Fifth Street, NW,
Washington, D.C. 20549-0213
May 30, 2005
Re: Illegal Junk Fax Promotions by Wellstone Filters, Inc. – WLSF shareholder(s).
To Whom It May Concern:
After receiving two junk faxes touting Wellstone Filters on 9/12/04 and 9/30/04, I filed suit against Wellstone Filters and a number of junk faxers and spammers on 10/5/04 in Kingman, AZ, Superior Court, CV-04-915.
Enclosed are the Wellstone motion for summary judgment and my response including the declarations and exhibits.
• The 6 junk faxes from 10/03 to 11/04, Exhibits F 1-6, and the PK charts on Exhibit G indicate that the Wellstone shares were pumped up to the high of $1.60 in December.
At this time, I’m not aware of any WLSF junk faxes this year and Rosanne Baack with Wellstone Public Relations was surprised that I called about junk faxes in March since they hadn’t received any complaints since last year.
I agreed to dismiss Wellstone Filters because I do not have the legal skills and resources to successfully litigate that as the beneficiary of the illegal promotions and because they apparently failed to try to stop the illegal junk fax promotions, Wellstone Filters and its officers are liable for the faxes.
Wellstone Filters CEO Learned Hand denied in his declaration that he or anyone related to Wellstone ordered the faxes.
Notably, CEO Hand does not deny knowing about the illegal promotions, but he continues to refuse to respond to my questions about his internal investigation and he refuses to provide any information about the (suspected) faxers. Wouldn’t he know who has been selling?
What are the officers’ obligations when they become aware of illegal spam and junk fax promotions?
I’m hoping that the SEC will whether it is perfectly ok to ignore complaints by spam and junk fax recipients..
• I could not find any mention of the illegal promotions in the SEC filings and the 3/31/05 Quarterly Report Wellstone failed to disclose my suit.
I filed my suit in 10/04, Wellstone was served in early April and filed the report in May. If Wellstone and/or officer liability for the faxes can be established, it is quite likely that a class action for the junk faxes would result in a judgment for millions of dollars in statutory damages due to the extensive promotions for over one year, from at least 10/03 to 11/04.
At http://fight-back.us/forum/index.php?showforum=71 is some of my research, but since I’m not an investor, I have trouble putting the pieces together.
I still don’t know whether Anthony Cerami, Wellstone President Carla Cerami Hand’s father, actually sold shares as planned according to http://finance.yahoo.com/q/it?s=WLSF.OB.
• Wellstone received a loan from the Arrakis Fund, heavily promoted through Wellstone press releases.
The SEC filings disclose that Arrakis is controlled by CEO Hand’s brother Jehu Hand.
Wellstone announced the loan through press releases without the related party disclosure. Obviously, investors are more likely to buy WLSF shares when an unrelated party underwrote and funded the loan.
Is it ok to omit related party disclosures in the press releases?
• In 2004, Wellstone apparently received over $20 million from the sale of stock and spent over $20 million on “general and administrative� expenses.
Apparently Jehu Hand received 10 million shares for Farallon shell in 2001, subsequently benefited from the Arrakis deal and then received another 4 mill shares in 6/04.
I have trouble interpreting all those SEC filings and I sure don’t understand how a company in development stage with no revenue whatsoever can give away millions and millions of dollars in shares to related parties and advisors, while spending very little on R & D – and end up broke despite the enormous trading volume in 2004.
Is Wellstone’s purpose to enrich relatives of the officers such as Jehu Hand and Anthony Cerami as well as “advisors� such as John Smart and William Wilkinson?
I reviewed many SEC litigation releases and it appears that there is a sincere, yet utterly ineffective effort to curb stock fraud.
I followed Steve Kirsch’s investigation of the illegal fax promotions and the subsequent SEC suit against some of the parties related to Kos, Heysek, Lord, CNND, et al. However, the TWTN officers Steven Dao and Bruce Thomsen can now continue on to their next scam. Just like Wellstone CEO Hand, they denied sending the faxes when I contacted them. I really don’t understand why the SEC condoned their obvious involvement including the promo videos with Heysek and Gaskins. The same goes for Randall Rohm and Thomas Flynn who posed as officer for AHFI in the promo video.
If the conduct of the WLSF, TWTN and AHFI officers is legit, is there a reason why I should not purchase a shell, financed by people like Darrel Uselton who take many millions of shares for payment and then they pump with spam and faxes?
I have a legitimate business plan with an excellent chance to succeed, especially if I can raise funding through the promoters’ initial pump and dump and I’ll greatly appreciate your opinion.
In January I established http://pennystock-fraud.info/ and you can read that WYSK sent me 555 spams. I also posted how I first got the spam for Darrel Uselton’s UACP, then Uselton threatened to sue me (he didn’t), next he changed the symbol to ABZT and I got an ABZT junk fax.
I don’t understand why the SEC doesn’t immediately suspend trading as soon as illegal promotions begin. Why wait for investors to be defrauded out of many millions?
I’m looking forward to your response. Since I publish my investigations, please let me know if any part of your reply should remain confidential.
Sincerely,
Christine Baker
c: http://fight-back.us/forum/index.php?showforum=71 & http://pennystock-fraud.info/
Enclosures:
5/3/05 Wellstone Filters motion for summary judgment, statement of facts, CEO Hand’s declaration, exhibits
5/23/05 my response, declaration and exhibits.
12/16/03 Wellstone press release announcing the Arrakis funding without disclosure that CEO Hand’s brother Jehu Hand controlled Arrakis.
Posted by Christine on 05/31 at 05:20 PM in SELL - scammers and spammers, WLSF
Comments (0) • Permalink • Tell-a-Friend
Comments (0) • Permalink • Tell-a-Friend
Page 1 of 1 pages
