Report: Charles Schwab - LOM - Endovasc - James Dale Davidson,Belladorgroup,etc.
Category: Brokerage Companies
Charles Schwab - Schwab Capital - LOM - Endovasc offshores ripoff San Francisco, Bermuda California
*UPDATE *UPDATE ..Charles Schwab Statement To The SEC On Penny Socks,1999
Charles Schwab - LOM - Endovasc - James Dale Davidson,Belladorgroup,etc.
Fax:
San Francisco, California,
U.S.A.
Submitted: 10/5/2004 5:01:02 PM
Modified: 12/21/2004 1:19:41 AM
Tony
Antigua, Central AmericaEVSC: Director; Auditors; Shr Increase
Tuesday , October 05, 2004 13:49 ET
According to a PRE 14A filed today, the Annual Meeting of Shareholders of Endovasc Inc (OTCBB: EVSC) is tentatively scheduled (subject to approval) to be held on November 19, 2004 at 2 pm, local time, at Havens Landing, 19785 Highway 105 West, Montgomery, Texas, at which the Company intends to seek approval for the following:
1. To elect one director to serve for a three-year term and until his or her successor is elected and qualified.
2. To ratify the selection of Ham, Langston & Brezina LLP as independent auditors for the fiscal year ending June 30, 2005.
3. To amend the Company's Articles of Incorporation to increase to 400,000,000 the number of shares of Common Stock, $.001 par value per share, we are authorized to issue.
4. To transact such other business as may properly come before the Annual Meeting or any adjournments thereof.
This preliminary information is subject to regulatory approval.
Tony
Antigua
Guatemala
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Updates & Rebuttals:
- I should never have touched a penny stock, but in retrospect I should never have touched a computer Tony [10/5/2004 5:39:30 PM]
- Schwab Protects Insider Pump Dump and Cover-up. Why ? Tony [10/6/2004 3:45:26 PM]
- NAANSS or How Attorney O'Quinn Aided Massive Penny Stock Fraud and the 'Penny Mafia' Tony [10/7/2004 3:36:56 PM]
- Judge Ken Reilly Lies ,James Davidson Denies: Securities and Political Fraud Tony [10/7/2004 8:42:26 PM]
- Correspondence from Davidson, 'Dr.'Summers,Alexander Walker and some SEC statements etc. Tony Ryals [10/8/2004 5:22:01 PM]
- No one forced him into buying the stock Charles [10/25/2004 7:27:20 PM]
- Tony Ryals is an idiot- Part 2 Charles [10/26/2004 11:47:04 PM]
- More details re the Schwab-LOM account and it's use for pump dump. Tony [11/20/2004 5:28:43 PM]
- Bellador Group of Kuala Lumpur Tony [11/25/2004 12:48:12 AM]
- This guy is a crazy Sally [12/8/2004 10:18:09 PM]
- LOM,Mr.Lines,Schwab,et.al. Pump Dump Accounts ,and Florida Hotels Tony [12/17/2004 8:54:51 PM]
- Charles Schwab Statement To The SEC On Penny Socks,1999 Tony [12/20/2004 6:11:29 PM]
Submitted: 10/5/2004 5:39:30 PM
Modified: 10/5/2004 9:03:31 PM
Tony
Antigua, Central AmericaGuatemala
I should never have touched a penny stock, but in retrospect I should never have touched a computer
Dear Securities Fraud Reader,
In retrospect I should never have touched a penny stock, but in retrospect I should never have touched a computer.And I was used to reading books that had no reason to lie to me in real time as I discovered on the internet.To me Schwab's 'strong buys' posted by the likes of 'Robertson Stephens' and myriad 'analysts' on the Schwab board in 2002 are little different from reading ragingbull message boards for advice.You see,in my ignorance the 'strong' tech buys turned to penny stock,albeit NASDAQ ones,and I didn't know the difference.
About Endovasc,it was the Stanford patent that lured me into the pump dump of James Dale Davidson et.al.,and perhaps 'LOM' of Bermuda as well, which would have been a Schwab account,at least in part,they were dumping from.Anyway the 'shareholder agreement' posted below was used for that purpose through a Schwab account whether it is the LOM of Bermuda account or not.Only later,(this year),would I discover just how sleezy this Montgomery,Texas pump dump called Endovasc really was as they made boiler room deals with the likes of Belladorgroup.com boiler room operation out of Kuala Lumpur that has an unenviable reputation amongst Hong Kong securities officials,who unlike our SEC apparently, who warn their own citizens about it.
Paradoxical for a company 'management' who under pretenses of 'patriotism' after 9/11 claimed to be buying shares back to help investors.But in truth,working with any stock scamsters,including in areas of the world where shares can be used to mask undeworld criminal or even terrorist causes and no one would ever know.
As to penny stocks I would say it is hard indeed to predict when they will fly but most of the time is a slower but continual downward move in share price as management dumps more shares.Only when insiders are ready to dump does the touting begin which,as touting goes,is nothing but lies and hot air.Which is about all most of them sell.
And you see in the case of Endovasc and its insiders, they lied and lied constantly, blaming the drop in share price literally on Schwab and other market makers who they claimed 'naked shorted' them and me.The truth,as it turned out,was even worse to me.Schwab was hosting a dump account for the very ones who were masking it by crying 'naked short' !!!! In many ways Charles Schwab the broker AND market maker were working hand in hand with the pump dump fraudsters.
Schwab,unless it has something to hide,should have been exposing them,(whoever Endovasc 'management' conspired with to fill a Schwab account with shares to dump when J.D.Davidson touted),and NOT covering up for them. why ? So you see,mystery remains.
And so as I will try and make clear in the documentation I post as a complaint on ripoffreport.com that Charles Schwab in many ways introduced me to a penny mafia, purposefully or not,within a year of buying the first stock in my life.
..........................................................
This article from DowJones' Carol Remond of June this year informed me for the first time of a Schwab account held by LOM of Bermuda.I had already received from Schwab,in response to a complaint to the SEC,a 'shareholder agreement' between Ensdovasc and a Schwab client to fill an anonymous Schwab account with up to 30 million shares in May 2002 !! This was many times over all shares that should have existed in light of an announced 40 for 1 'reverse split'.Someone(s) with that account had been selected to have the shares in their Schwab account gain 40 times in value overnight while unbeknownst to me I was about to be the victim of a phony reverse split and a pump dump scheme orchestrated mainly, it would appear,by one James Dale Davidson of 'Clinton killed Vince Foster and CIA Chief Wiliam Colby fame,a political as well as the securities fraudster.Davidson,as you will see by following along,has a 'LOM' connection.
'LOM had brokerage accounts with at least four U.S. brokerage firms, including Knight Securities LP, Paragon Capital Markets Inc., Wein Securities Corp. and Vfinance Investments Inc., the SEC said. The firm also has accounts at Sterne, Agee Capital Markets Inc. and Schwab Capital Markets LLC.'
14 Jun 2004 17:39 ET =DJ IN THE MONEY: SEC Seeks Information From Bermuda Brokerage
By Carol S. Remond
A Dow Jones Newswires Column
NEW YORK (Dow Jones)--The Securities and Exchange Commission last week filed court documents to compel Bermuda-based brokerage firm Lines Overseas Management Ltd., or LOM, to comply with several requests for information in connection with two SEC investigations.
The SEC is trying to force LOM to produce information related to ongoing investigations into HiEnergy Technologies Inc. (HIET) and Sedona Software Solutions Inc. (SSSI). The SEC began investigating Sedona in January 2003. At that time, it temporarily suspended trading in Sedona shares because of questions about the accuracy and completeness of information about the company on Internet websites and press releases, concerning among other things, the company's planned merger with Renaissance Mining Corp. Meanwhile, the Commission began investigating HiEnergy in April 2003.
Court documents filed in the U.S. District Court for the District of Columbia show the SEC subpoenaed LOM and Scott Lines, LOM's managing director, in April 2004.
The SEC is looking for 'documents relating to (LOM's) relationships with three issuers, whose Securities are registered with the Commission and traded on U.S. markets, and the trading activity in the securities of those issuers conducted through accounts at LOM,' court filings show.
LOM wasn't immediately available for comment but a person answering the telephone at the firm's number in Bermuda said the brokerage would soon issue a press release.
According to the SEC, LOM, which is based in the Bermuda and also has offices in the Cayman Islands and in the Bahamas, routinely trades U.S. securities on behalf of its customers and officers, including Scott and his brother Brian Lines who is president and a director of the firm. As of January 2003, LOM had brokerage accounts with at least four U.S. brokerage firms, including Knight Securities LP, Paragon Capital Markets Inc., Wein Securities Corp. and Vfinance Investments Inc., the SEC said. The firm also has accounts at Sterne, Agee Capital Markets Inc. and Schwab Capital Markets LLC.
Court Documents filed by the SEC show that it's investigating possible securities laws violations in Sedona and HiEnergy stocks. The SEC also said that during its Sedona investigation, the 'staff identified apparent fraud, market manipulation and reporting violations in the securities of a third U.S. registrant' called SHEP Technologies Inc. (STLOF).
The SEC said that during its investigations it 'developed facts which indicate that significant trading in the securities of each of these three U.S. registrants occurred on U.S. markets through accounts at LOM, which used its own accounts at U.S. firms and its depository and clearing agreements with U.S. firms to execute the trades for the benefit of LOM customers and Brian and Scott Lines personally.'
The SEC said it served Scott Lines in person at Miami International Airport on April 20, 2004 and that neither Lines nor his firm contested the service or the validity of the subpoenas. The subpoenas requested that LOM and Lines produce 'documents related to the trading in HiEnergy, Sedona and Shep securities for the period of January 1 2002 through the present.' The SEC asked LOM and its managing director to produce the information by April 28 and to appear for testimony in Washington, D.C., on May 4 and 5, 2004. 'To date, Lines and LOM have failed to comply with the subpoenas in every respect,' the SEC said in a court filing.
It's unclear whether the SEC will succeed in obtaining the information it's seeking from LOM.
A declaration by an SEC attorney filed in court shows that LOM has claimed through counsel that it's prohibited from producing documents under the laws of the Bahamas, Bermuda and/or the Cayman Islands.
With respect to HiEnergy, the SEC contends that documents requested from LOM and Lines are relevant because they could help the SEC establish whether convicted felon and securities violator 'Philip Gurian or related persons or entities profited from Gurian's fraudulent undisclosed control of HiEnergy by selling its stock through LOM, and whether any person or entity, including possibly Gurian or LOM, manipulated HiEnergy Stock.'
The SEC investigation into HiEnergy came shortly after a Dow Jones 'In The Money' Column that highlighted connections between two of the company's investors and Gurian. Gurian pleaded guilty in 2000 to federal charges that included mail fraud and conspiracy to commit securities fraud.
(Carol S. Remond is one of four 'In The Money' columnists who take a sophisticated look at the value of companies
and their securities and explore unique trading strategies.)
-By Carol S. Remond; Dow Jones Newswires; 201 938 2074; carol.remond@dowjones.com
(END) Dow Jones Newswires
...........................................................
FROM ENDOVASC WEBSITE CIRCA 2001:
QUESTION 6/20/01 - Is ENDV dropping like a stone because discount convertible preferred holders in the Camen Islands are shorting the #### out of it against the box? In other words is ENDV really legit... I am asking myself, or did I get scammed?
ANSWER - ENDV is a legitimate company which operates from offices in Montgomery,Texas. ENDV continues to meet the SEC guidelines for reporting and those reports can be accessed on the SEC website. Unfortunately, the OTC is a risky place to be both as an investor and a company. Which is why listing on Nasdaq continues to be a goal of ENDV.
..........................................................
BELOW IS FROM SEC COMPPLAINT RE AGORA PUBLICATIONS OF WHICH JAMES DALE DAVIDSON IS FOUNDER :
James Dale Davidson is the editor of Agora's Vantage Point Investment Advisory, a financial newsletter with a worldwide circulation. In December 2002 and January 2003, Agora distributed e-mails written by Davidson to its subscriber base. These e-mails promote several unnamed microcap issuers and offer to provide reports naming these issuers if the recipient of the e-mail paid $149 to subscribe to the Vantage Point newsletter.
42. Among the issuers promoted in this manner have been GeneMax Corp. and Endovasc Ltd., Inc. Davidson is an officer, director and, indirectly, a substantial shareholder of these two issuers. Neither the soliciting e-mail nor the subsequent company report discloses Davidson's relationship to the companies.
FIRST CLAIM FOR RELIEF
..........................................................
James Dale Davidson,Lines Overseas Management, and MIV, etc.:
Mr.Davidsion who was a significant shareholder in 'LOM' or Line Overseas Management at one time recommended it for offshore 'financial services' in 'The Soveriegn Individual' that he co-authored with the Lord Rees-Mogg former editor of the London Financial Times and now ,ha ha,of 'newsmax.com'.Note the association with Davidson and 'LOM' below in regards to MIVT and its stock,one of the many penny stocks he pump dumps,etc. New Paradigm Capital Ltd.also of Burmuda is a Davidson operation as well:
May 30, 2001
DBS HOLDINGS INC (DBSH.OB)
form 8-K
ITEM 1 and 2. CHANGES IN CONTROL OF REGISTRANT/ACQUISITION OR DISPOSITION OF
ASSETS
A. Transaction -
On April 25, 2001, the Company entered into a Share Exchange and Finance Agreement (the 'Agreement') with M-I Vascular Innovations, Inc., ('MIV'), a private Delaware company, and certain shareholders of MIV (the 'MIV Shareholders'). The Agreement closed effective as of May 15, 2001 as the Agreement was signed by the requisite number of MIV Shareholders permitting the Company to own over 51% of the MIV shares as contemplated by Section 11.11 of the Agreement. This resulted in a take-over of MIV by the Company which is effectively a reverse take-over of the Company as the MIV Shareholders now control a majority of the outstanding shares of the Company. As a consequence, as more fully explained in the Agreement and in a Schedule 13D recently filed by some of the former shareholders of the Company, control of the Company shifted from the founders of the Company (including Mr. Daniel Steunenberg, Madeline Stanley, Ken Paul, Irma Paul, Eli Stratulat, Alex Basic and Chansu Financial) to the MIV Shareholders (the principal members being Isaiah Capital Ltd., Stephen Walters, Carlingford Assets Limited, James Davidson, New Paradigm Capital Ltd., and Lines Overseas Management). The change of control resulted from the combined effect of (i) a redemption of all of the Common Stock held by Mr. Daniel Steunenberg, Madeline Stanley, Ken Paul, Irma Paul, Eli Stratulat, Alex Basic and Chansu Financial which reduced the number of outstanding shares of the Company to 5,419,500, and (ii) the issuance of Common Stock by the Company in a one-for-one exchange for the shares of MIV stock held by the MIV Shareholders which increased the number of outstanding shares to 14,639,500. The terms of the redemption and stock exchange were determined by arm's length negotiation among the Company, MIV and the MIV Shareholders. The issuance of Common Stock to the MIV Shareholders was exempt from registration under the Securities Act of 1933 pursuant to ss.4(6) and Regulation S promulgated thereunder. As a result, the MIV Shareholders now own a total of 9,220,000 shares (ie. approximately 63%) of the outstanding Common Stock of the Company. Management believes that most, if not all of the remaining shareholders of MIV will exchange their shares, for shares of the Company in the near future.
The Agreement contemplates that outstanding or promised warrants or options to purchase MIV stock owned by or owed to the shareholders of MIV and their affiliates, if any, shall be exchanged for comparable warrants or options to purchase an equal number of shares of the Company's stock of the shareholders of MIV accepting the exchange.
...........................................................
from ragingbull message boards:
By: Mighty_Mezz ,from gmxx board on ragingbull:
20 Aug 2003, 08:19 PM EDT
Msg. 35150 of 35150
Jump to msg. #
For those following the antics of James Davidson.
He's now a director of BEVIE, formerly BEVS, BEVSE, BEVI - recent 1 for 100 reverse split.
He recently was allowed to buy 3 million shares at a penny. The pump and dump is underway.
...........................................................
'James Davidson, portrays himself as an outspoken opponent of naked short-sellers. As we have pointed out in the past, one of the worst enemies of emerging companies and the best friend of the naked short-sellers are the discount based convertible fundings better known as 'toxic fundings' or 'death spirals'. Given these facts, we would like to call everyone's attention to the fact that a group called the Advantage Fund, I, LLC recently cut a deal with ChampionLyte at a conversion factor of 70% of the bid and the very same Advantage Fund I, LLC can be found as a significant holder and seller of BEVsystems shares as well. Who besides James Dale Davidson was connected to both these companies in a way that could get this funding handled for the Advantage Fund I, LLC. Could it be that Mr. Davidson is a wolf in sheep's clothing? Or is someone running around companies where he is a director and/or significant shareholder and pushing these death spirals through over his vehement objections?
'It should be further noted that The Advantage Fund I, LLC also shares the same address with ChampionLyte Holdings, and Kinghtsbridge Capital and that these two funding groups are related to not only this address but also the address of Finantra Capital and Mr. Robert Press who of course partnered up with Davidson for the takeover of ChampionLyte. Of course none of this is disclosed but you have a right to know!
Our-street.com copyright 2003
..............................................................................................................................
CONTRADICTIONS FROM DAVIDSON'S OWN PUBLICATIONS WITH REGARD TO SIZE OF HIS ENDOVASC SHARE HOLDINGS AROUND TIME OF HIS PUMP DUMP:
'This week Endovasc Inc. (EVSC) (of which Mr. Davidson is a substantial shareholder) announced some very interesting results from a study that it had conducted. These results could push Endovasc's entry into the non-steroidal muscle growth supplement market.'
Dale Davidson's most recent lie?('substantial shareholder'?)......Then Below he says:
'I had a painful lesson in this reality at the beginning of this week when I learned to my astonishment that the Utah office of the SEC had tarnished my name by accusing me of failing to disclose an interest in two investments that I recommended in Vantage Point Investment Advisory. Their exact charge is as follows:
'Among the issuers promoted in this manner have been GeneMax Corp. and Endovasc Ltd., Inc. Davidson is an officer, director and, indirectly, a substantial shareholder of these two issuers. Neither the soliciting e-mail nor the subsequent company report discloses Davidson's relationship to the companies.'
This is total rubbish. I deny any impropriety. Indeed, the charges are remote from the facts.
As you will know if you subscribed to Vantage Point last summer, I fully disclosed my role as a founder, director and officer of GeneMax when I recommended the company and its promising treatment for cancer. And I also disclosed a special relationship with Endovasc. I am not an officer or director of Endovasc. I have a few shares that I received in exchange for assigning my rights in what could be a
valuable patent to the company.' (end Davidson rant )
Is Dale Davidson's Vantage Point statement of April he says, re Endovasc, that he has a 'few' endovasc shares (from plagiarizing a Stanford patent?).then there's his statement re being a 'substantial shareholder'.? I get confused, but apparently he, like Dr. Summers,does as well.They seem to be confused over the complexities of their own lies....
...............................................................................................................................
41. For example, James Dale Davidson is the editor of Agora's Vantage Point Investment Advisory, a financial newsletter with a worldwide circulation. In December 2002 and January 2003, Agora distributed e-mails written by Davidson to its subscriber base. These e-mails promote several unnamed microcap issuers and offer to provide reports naming these issuers if the recipient of the e-mail paid $149 to subscribe to the Vantage Point newsletter.
42. Among the issuers promoted in this manner have been GeneMax Corp. and Endovasc Ltd., Inc. Davidson is an officer, director and, indirectly, a substantial shareholder of these two issuers. Neither the soliciting e-mail nor the subsequent company report discloses Davidson's relationship to the companies.
FIRST CLAIM FOR RELIEF
SEC COMPLAINT RE DAVIDSON,EVSC 'MANAGEMENT' FRAUD.
The strange thing about the SEC complaint is that Mr.Davidson is not charged with running a pump dump.He not only touts or promotes the stock to increase spuculation and share price but he admits having shares to dump as well.He is not only charging for 'adise' to buy Endovasc shares but profiting from Endovasc share dumping as well.
............................................................
Daily Reckoning Editor's Note: James Dale Davidson has enjoyed astounding personal success founding new companies in a variety of industries. A graduate of Oxford University, Mr. Davidson is also a renowned venture capitalist and the author of bestsellers such as Blood In The Streets and The Great Reckoning. Davidson's latest research and investment picks can be found in his monthly newsletter, Vantage Point Investment Advisory.
('Daily Reckoning' is part of Davidson's cyberfraud machine,in my opinion.He often uses it for self promotion of his penny scams.etc.)
...........................................................
FROM RECENT ARTICLE ON LOM BY CAROLE REMOND :
'As of January 2003, LOM had brokerage accounts with at least four U.S. brokerage firms, including Knight Securities LP, Paragon Capital Markets Inc., Wein Securities Corp. and Vfinance Investments Inc., the SEC said. The firm also has accounts at Sterne, Agee Capital Markets Inc. and Schwab Capital Markets LLC.'
from Carole Remond DJ's In The Money,June 2004
................................................................................................................
Much of this material was meant in 2003 to be a ripoffreport complaint or article related to the loss of my entire investment in the Montgomery, Texas fraud biotech 'company' called Endovasc and its silent fraudulent consultant or audit committee member,or whatever he was to that scam,James Dale Davidson.It might,in retrospect be titled,at least in part,'How Charles Schwab Introduced Me To The Penny Mafia' or perhaps 'The Person who Fell Into A Computer', because that's how I feel here in Guatemala where I thought they could never touch me.I have even come to coin my own term about the nightmare and fraud I have experienced and endured from all those involved.I call it 'share-money laundering'.And although it goes on with unsaid numbers of defrauded individuals and untold millions of dollars,no one does anything about it.I could say right now that much of it could be ended by Charles Schwab and and its' Schwab Capital and other market makers were the fraud not such a lucrative business for them.And in not changing they are in violation or covering up a conduit for money laundering.
The Endovasc scam began for me in early 2001 with cyberfraud press releases like this below from Endovasc announcing well known cardiologist Antonio Colombo would administer human trials of its Stanford patented angiogenesis drug(nicotine)wthin a couple of months.This never happened,of course.I,with no stock experience,had already lost 3/4 of my inheritance due to all those 'strong buys' for 'tech stock' posted on the Charles Schwab board,particularly I remember a Robertson Stephens who was given carte blanche to tout on Schwab's website.
And once I had got into the 'tech' sector of the Schwab board its software always took me in a circle back to some similar 'tech stock' hyped by several 'analysts'. All these dollar stocks turned, or crashed, to penny stocks within a year of my buying the first stock,Heinz,on the telephone before Schwab suggested I go 'online'..By then I despised internet and computers so I fell for Endovasc's Stanford patent. Besides this Incubud hype below there were also businesswire press releases touting this same human trial of a Stanford patent for angiogenesis:
Endovasc Announces Completion of Dog Studies for Nicotine Receptor Agonist
MONTGOMERY, Texas--(BW HealthWire)--Feb. 26, 2001--
Endovasc Ltd. Inc. (OTCBB:ENDV - news) today announced the completion of further studies of its Nicotine Receptor Agonist (NRA) in dogs.
NRA has been proven to create new blood vessel growth (angiogenesis) in animals. Dr. Daniel Burkhoff, associate professor of medicine in the Division of Circulatory Physiology at Columbia University's College of Physicians and Surgeons, and an associate attending physician at the New York Presbyterian Hospital, has completed recent testing of NRA in dogs. With the positive results from the studies, Dr. Burkhoff will proceed with ischemic pig models, a study which is projected for completion in approximately 10 weeks.
The company is continuing animal studies and human clinical trials for the use of NRA as a non-surgical angiogenic therapy for blocked arteries to the heart, avoiding angioplasty and possibly even by-pass surgeries for this condition. According to Dr. David P. Summers, chairman and CEO of Endovasc, 'The use of NRA could create a 'biological by-pass' therapy, a revolutionary methodology for treating ischemic heart disease.'
Dr. Antonio Colombo, chief of investigational angioplasty at Lenox Hill Hospital in New York, and director of the cardiac catheterization laboratory at EMO Centro Cuore Columbus in Milan, will conduct the human pilot study for NRA in Italy in March of this year. This clinical trial will involve patients with diseased heart muscle resulting from a deficiency of blood caused by obstruction in the blood vessel (ischemic cardiomyopathy) and chronic or uncontrolled chest pain (intractable angina pectoris).
Endovasc Ltd. Inc. is a biopharmaceutical/biotech company pioneering liposomal drug delivery technology. The Company's products and processes, which include Liprostin™ (liposome encapsulated PGE-1), NRA (Nicotine Receptor Agonist, angiogenesis agent), stent-coating technology, and a biodegradable/resorbable stent, are covered by patents and trade secrets for competing in a multi-billion dollar market.
The foregoing statements are made under the 'Safe Harbor' Private Securities Litigation Reform Act of 1995 and may contain forward-looking statements that involve risks and uncertainties that may not be evident at the time of this release. For more information about Endovasc Ltd. Inc.
Contact:
Endovasc Ltd. Inc.,
Jack Sorbi,
936/448-2222
jack@endovasc.com
www.endovasc.com
The information on these pages is intended solely for the benefit of entrepreneurs and companies seeking business development assistance.
Copyright © 1999-2001 InCuBUD, Inc. All rights reserved.
Do not duplicate without express written permission.
For more information: Contact InCuBUD.
...........
Submitted: 10/6/2004 3:45:26 PM
Modified: 10/6/2004 11:15:36 PMTony
Antigua, Central AmericaGuatemala
Schwab Protects Insider Pump Dump and Cover-up. Why ?
Needless to say I would experience my first 'pump dump' at the end of 2001 with my over half million shares having fallen from an approximate $60,000 worth at around 10 cents per share down to almost 3 cents and then with the post 9/11 tout or pr promotion the stock soared to 24 cents a share or over double my money within a few weeks !!! Still,I held my shares believing in the Stanford patent and not imagining I was in a pump dump, hardly knowing what one was.Much tout or pump 'chatter' appeared on ragingbull with many 'aliases' posting messages on Endovasc's message board at that time and new press releases picked up in pace and sensational claims of FDA APPROVALS AND TRIALS AND FDA ORPHAN DRUG STATUS AND ON AND ON.
EVEN THE DISCLOSURE OF THE DENIAL OF THAT ORPHAN DRUG STATUS BY THE FDA IN EARLY 2002 WAS WITHHELD FROM COMMON SHAREHOLDERS FOR SOME TIME NO DOUBT AS INSIDERS DUMPED SHARES ON DUPED 'INVESTORS' WHO BOUGHT SHARES FROM THE RETAILORS LIKE SCHWAB CAPITAL ET.AL., AS OPPOSED TO SCHWAB ET.AL.'S BROKERS' SELECT CLIENTS',THE VERY ONES WHO RAN THE PUMP DUMPS IN THE FIRST PLACE.THESE COMPANY ISIDERS AND 'SELECT CLIENTS' TO BOTH ENDOVASC AND SCHWAB GOT THEIR SHARES FOR FREE OR AT DEEP DISCOUNT IN COLLUSION WITH MANAGEMENT TO 'SHORT DUMP' ON DEFRAUDED INVESTORS THROUGH SCHWAB AND OTHER BROKER OR MARKET MAKER ACCOUNTS.
NO,SCHWAB,ET.AL. DID NOT PUT THE LIP STICK ON THESE PIGS.THEY MARKET FOR OFFSHORES, LIKE 'LOM' OR 'LINES OVERSEAS MANAGEMENT' OF BERMUDA AND THE ANONYMOUS CLIENTS THEY REPRESENT,SUCH AS JAMES DALE DAVIDSON.IN THIS WAY, SCHWAB ACTUALLY HAS INSIDER INFO ALONG WITH THE CON ARTISTS THEY COOPERATE WITH TO DUMP SHARES ON COMMON PENNY STOCK 'INVESTORS'.FRAUDULENT PAID PRS AND PROFFESSIOAL PENNY STOCK PROMOTORS LIKE DAVIDSON DO THAT,(PUT LIP STICK ON PIGS),FOR THEM.SCHWAB JUST TAKES THEM TO THE MARKET AND SELLS THEM RETAIL ON THE MARKET FOR THESE OFFSHORE LOAN SHARKS AND CON ARTISTS WHO ARE INDEED THEIR 'SELECT CLIENTS' IN THE PENNY STOCK TOUT MARKET.THEN THEY HELP SEND THE CASH OFFSHORE TO AVOID TAXES OR IRATE INVESTORS IN THE AMERICAN MARKET WHO WERE DEFRAUDED.
The following recent email between John Jaeger of Charles Schwab and myself is exemplary of the kind of relation NOT to have with a broker and a market maker.Clearly Charles Schwab is covering up for someone(s) who Elias Torrez of Schwab termed a 'select client' in early 2003 when he sent me a 'shareholders agreement' between Endovasc and their 'select client' to deposit 'up to thirty million shares' !!! into that 'select client's' Schwab account for free !!!! And that deal had been made almost a year earlier in May 2002 when Endovasc was announcing a reverse split of stock for July 2002 !!!!
And this belated notification in 2003 for a transaction occuring in 2002 was only given to me because I complained to the SEC,still not knowing if I had been 'naked shorted' by my broker Schwab,as Edovasc,James Dale Davidson and 'famed trial attorney O'Quinn claimed in press releases of late 2002,or if Endovasc had indeed engineered a pump dump scheme after a phony reverse split.
Mr.Jaeger of Charles Schwab,by stating my questions were answered in 2002,lies outright.A perusal of their email communication with me in late 2002 will show I inquired at that time,(before removing my shares from my Schwab account by having Schwab purchase a 'certificate' for the few thousand post 'reverse split' shares I had left from the fraudulent Alexander Walker and his The Nevada Agency And Trust Company),whether Schwab was naked shorting me as Endovasc,James Dale Davidson,and 'famed trial attorney O'Quinn claimed.A Ms.or Mrs.Shapiro,I believe it was,from Schwab International Services would not answer me.So I requested she buy me that cert as Endovasc recommended.
All the while Schwab had helped the insiders load that account with shares to dump.As an example of how big the reverse split fraud was,if I had kept my shares from the reverse split as insiders and those running the pump dump out of that Schwab account did,my 550,000 shares would have been worth nearly $1 million dollars in July when the reverse split increased monetary value of each share 40 times over night !!!! And during James Dale Davidson's promo and tout a little later in and around November when the share price rose quickly to over $3 per share before collapsing those shares would have been easily over $1 1/2 million !!!
That is how my 'investment' in the U.S. was probably stolen and laundered offshore.And this gives some idea of how large the Endovasc pump dump alone through that Schwab account was.'Up to 30 million shares' !!!!! Just a million shares,say twice what I had before the fraudulent reverse split,would yield $3 million dollars if dumped on or around the time it hit $3 per share during James Dale Davidson's touting in late 2002 !!!
Perhaps this masking of shares that Endovasc and Schwab and the insider Schwab acount holders all knew about,as opposed to me who was kept in the dark and lied to in Endovasc press releases,was used for terrorism and or money laundering in general.No one would ever know because Schwab aids and abetts in covering up the pump dump and as a market maker benefits by knowing a large block indeed of shares will be dumped from a Schwab account,perhaps at prices already worked out with Schwab Capital market maker.Can anyone say conflict of interest ?
And the very transfer agent Endovasc 'management' and 'famed trial attorney O'Quinn' recomended to me as a place to entrust my remaining shares to protect from this pump dump they called a 'naked short' I would discover only in mid 2003,was an Endovasc 'insider' in 2003.He would receive $200,000 in Endovasc shares to dump on my already destroyed 'certificate' that I could not sell anyway.
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email from Schwab and ,below,posted on offshorebusiness.com:
Schwab ignores LOM-Endovasc-Davidson Query
By naked shorted or dumped on from Schwab account? on 9/18/2004 5:54:46 PM
E-mail: biodog0@yahoo.com
Date: Thu, 16 Sep 2004 18:55:03 -0400 (EDT)
From: 'Charles Schwab and Co., Inc.' Add to Address Book
To: biodog0@yahoo.com
Subject: RE:Re: Charles Schwab and Co., Inc [#3291437]
Dear Mr. Ryals:
Thank you for your email. We appreciate your concern regarding the Yahoo message board. You are correct that the individual posting the messages is not the Chairman and CEO of the Charles Schwab Corporation. Unfortunately, there is no way for us to control message board user ID's.
In regard to your reference of communications with Charles Schwab & Co. dating back to 2002, the company considers those matters resolved.
Thank you for using Schwab's Email Customer Service.
Sincerely,
John Jaeger
Schwab Service Recovery Specialist
http://www.schwab.com
NOTICE: All email sent to or from the Charles Schwab corporate email system may be retained, monitored and/or reviewed by Schwab personnel.
(c)2004 Charles Schwab & Co., Inc., member SIPC/NYSE
--Original Message--
From: biodog0@yahoo.com
Date: 2004-09-15 00:00
To: webtrading@schwab.com
Cc: biodog0@yahoo.com
Subject: Re: Charles Schwab and Co., Inc [#3291437]
Content-type: text/plain ; charset = us-ascii
Dear Schwab,
I am writing from Guatemala.I would appreciate the receiver of this message to please forward this email to the Chairman's Division.It relates to communication(1 letter from Elias Torrez and another from Paul Hammon both of Chairman's Division) sent by that office in early 2002.Also this is to inform Charles Schwab that someone posts on yahoo sch messageboard not only under the pseudonym or alias of 'charles_r_schwab' but pretends to be him as you can see from the post below.My email to the Chairman's Division is immediately below that but both should be forwarded to them please.
from yahoo's sch message board :
Re: Schwab aids share-money laundering.e
by: charles_r_schwab (67/M) 09/10/04 02:48 am
Msg: 63182 of 63397
Mr. Ryals, Give me a call. I would like to discuss with you personally your situation. I have reviewed our files and I think you have your facts drastically wrong. I'd like to clarify a few things for you. I tried calling you but the number in your files says the number is disconnected and that there is no new number. Our records also indicate that you may have fled the country to avoid some legal issues regarding your allegations but we can ignore that for the time being. Bottom line is that I would like to answer your allegations man to man. If you are no longer able to afford a phone call, call me on my 800 number and ask for Chuck's private extension #57.
Posted as a reply to: Msg 63176 by biodog0
Dear Chairman's Division,I have been re-reading your two letters mentioned above of early 2003 which relate to a 'select client'(Schwab's or Endovasc's or boths ?) receiving a substantial number of shares into their account.To read between the lines of Mr.Hammond's letter where he states,'The exchange agreement indicated that the company(Endovasc) was offering to exchange......' Anyway it was an 'agreement'(you have it in your files),of May 2002,basically giving free shares into that account,(up to 30 million!!!),at a time a reverse split was being announced in pr releases to the regular shareholders that should have left no more than 3-5 million shares at most existent !!!
I have also become aware through the writing of DJ's Carol Remond in June of this year that LOM has a Schwab Capital account.(Is that separate from 'regular' client accounts at Schwab brokerage?)Nonetheless,it is a known fact that James Dale Davidson,who touted the stock and whose Agora publications is being litigated against by SEC at present for that very reason,(touting Endovasc,etc.in late 2002),was at one time a substantial shareholder of LOM of Bermuda and he recommended it in his book,'The Soveriegn Individual'.Also Mr.Hammon of the Chairman's Division states in his letter that the Chairman's Division first became aware of the exchange agreement on May 28, 2002 when 'one of our customers' forwarded it to you.So between the lines I take this to mean that ONLY ONE SCHWAB ACCOUNT RECEIVED AND WAS ALLOWED THIS AGREEMENT FROM ENDOVASC, RIGHT ? Was this account the LOM account Carol Remond mentioned in her June 2004 article ?
But most important to me is to know if that account receiving that free gift of shares,UNDER THIS'SHAREHOLDER AGREEMENT', dumped those shares in November 2002 when Mr.Davidson touted through his 'Vantage Point',(and who knows whatever other tout cyberfraud and mail fraud he created or has at his disposal)?
Upon receiving your letters and a copy of that shareholder agreement from you in the first part of 2003 and after the massive pump dump of November 2002,(that you can see in historic trades of Endovasc at the time),I felt it odd that Mr.Torrez threatened me with your legal staff if I continued to complain.However I felt certain you were going to report the transaction in retrospect to the SEC if not the FBI FOR POSSIBLE MONEY LAUNDERING,(AS OCCURED WITH JEFFREY SENGER USING ONE OF YOUR ACCOUNTS),knowing that it was a pump dump through a customer using a Schwab account !! Was this ever done ?( Mr.Senger,who dumped from one of your accounts and was convicted,is connected to Davidson,in a way,through a Brent Pierce who was involved with Senger but that's a different pump dump,although also through a Schwab account.)
I am just saying I have waited years,and as you know,I was conned into buying a 'cert' from Endovasc's insider transfer agent,Alexander Walker,who received a couple hundred thousand dollars of 'free' shares after Endovasc released a lieing businesswire pr claiming you were 'naked shorting' me so they could further confuse the issue of the pump dump from a Schwab account,as I now realise !!!
I am compiling my own past ragingbull evsc message board and yahoo sch message board posts plus the shareholder agreement you sent me and the letters into an article or complaint as to what occured to me.I have considered titling it,'How Charles Schwab Introduced Me To The International Penny Mafia'.I am the first to admit my stock ignorance and how the 'strong buy' dollar 'tech' stocks sent me overnight into penny scams.Yet Schwab made market in those stocks that criminals touted and lied to tout.Then laundered my money to I still don't know where.I just wish I could convince you to look and tell me where that $60,000 in Endovasc alone went.I would be forever greatful and say as much in my writing.I still do not understand why Mr.Torrez threatened me with your legal counsel rather than using that counsel to challenge those who ran a pump dump through a Schwab account as appears you can document in retrospect.
Sincerely,
Tony Ryals
............................................................
And these two press releases immediately following the pump dump out of that Schwab account and perhaps out of Refco and Ameritrade that 'famed trial attorney O'Quinn' mistook(?) for 'naked shorting'. Note these two press releases occured immediately following the Davidson 'AGORA-Vantage Point' tout or stock promotion of Davidson and subsequent dumping from the Schwab account,neither of which I was aware of at the time.This dear reader is where they conned me into buying a 'cert' from their fraudulent transfer agent and the time when Schwab was asked straight out if Endovasc was correct in claiming the 'naked shoerted me.Schwab refused to answer. :
Endovasc Announces Shareholder and Dividend Alert
Tuesday November 12, 7:30 am ET
MONTGOMERY, Texas--(BUSINESS WIRE)--Nov. 12, 2002--Endovasc (OTCBB:ENVC - News) - a biotechnology company with two new cardiovascular drugs approved for final FDA phase III trials -announced today that it has -- in the opinion of its consultants -- uncovered an oversold position in excess of 1,000,000 shares in the company's stock, held primarily by The Charles Schwab Corp. (NYSE:SCH - News), Ameritrade (Nasdaq:AMTD - News) and Refco. The findings are a result of an ongoing litigation intelligence work conducted in connection with the $216 million stock manipulation lawsuit filed by Endovasc and accepted on contingency basis by the legendary trial attorney John O'Quinn, who also won the record $17.3 billion dollar settlement for the State of Texas vs. Big Tobacco.
'The oversold position in our company's stock can actually be great news for our shareholders,' says Dr. David P. Summers, Chairman and Chief Executive Officer of Endovasc. 'The overselling in our stock in the past few weeks does not seem to have had a negative impact on our share price. But, if shareholders actually asked for physical delivery of the shares they bought, the market would probably have to pay a premium in order to deliver them.'
'Additionally, our Board has recently approved the issuance of a tracking stock dividend plan. But according to our plan, as approved, it won't be possible to issue any dividends to anyone that the company can't identify as a legal beneficial shareholder. This is why it is imperative that our shareholders contact their brokers to ask their stock to be taken out of the street form and put into physical form,' states Summers.
............................................................
This is from J.D.Davidson's 'Vantage Point' mail and cyber fraud publishing scam.Here he makes his infamous 'the SEC lies' speech and attacks Carol Remond for articles she has written criticizing his mainpulative involvement with Endovasc and Genemax.This was late 2002 or early 2003:
Dear Vantage Point Investor,
You may be as startled and upset as I am by the sudden collapse in the price of GeneMax (GMXX), which has tumbled in the last nine trading days. The question is, why? I can't pretend that I fully understand the answer. But I have a disturbing guess. It appears that the naked short-sellers who have counterfeited millions of GeneMax shares in an attempt to destroy the company have enlisted powerful help.
In theory, the Securities and Exchange Commission is a regulatory body charged with maintaining the integrity of public securities markets in the United States. In reality, the SEC is like any other government agency. It responds to powerful entrenched interests. It abhors bad publicity, rewards its friends and punishes its critics.
Unhappily, the SEC also lies. I know because the SEC field office in Utah has lied about me. And I suspect that these lies are the culmination of a carefully laid plan to discredit GeneMax and punish the company for raising troublesome issues about naked short selling, which has also embarrassed the SEC.
If you have been a subscriber to Vantage Point for any length of time, you are no doubt aware that I am a critic of 'electronic counterfeiting,' the process by which some investment banks, market makers and broker-dealers drive down the prices of Nasdaq Bulletin Board companies by selling unlimited quantities of shares they don't own. Since stock prices are determined by supply and demand, allowing unlimited counterfeiting of stock essentially guarantees that the stock becomes worthless.
Of course, a company whose shares are worthless won't last long. It is unable to raise money if its stock is worthless. All too often, such small companies are driven into oblivion by electronic counterfeiting. When we are slogging along with a weak economy, I consider it almost criminal negligence that the government would permit investment banks, market makers and broker-dealers to weaken the economy further by destroying small companies that could otherwise be a major fountain of growth.
Why would the government let this happen? I don't think it is necessarily a Grand Conspiracy with a capital 'G.' But the bad guys have managed to control most of the news about 'electronic counterfeiting.' And perversely, they also seem to have the regulators on their side.
I had a painful lesson in this reality at the beginning of this week when I learned to my astonishment that the Utah office of the SEC had tarnished my name by accusing me of failing to disclose an interest in two investments that I recommended in Vantage Point Investment Advisory. Their exact charge is as follows:
'Among the issuers promoted in this manner have been GeneMax Corp. and Endovasc Ltd., Inc. Davidson is an officer, director and, indirectly, a substantial shareholder of these two issuers. Neither the soliciting e-mail nor the subsequent company report discloses Davidson's relationship to the companies.'
This is total rubbish. I deny any impropriety. Indeed, the charges are remote from the facts. As you will know if you subscribed to Vantage Point last summer, I fully disclosed my role as a founder, director and officer of GeneMax when I recommended the company and its promising treatment for cancer. And I also disclosed a special relationship with Endovasc. I am not an officer or director of Endovasc. I have a few shares that I received in exchange for assigning my rights in what could be a valuable patent to the company.
To be sure that I wasn't missing something, I had my attorney review the record. He concluded that my disclosures are complete: 'I spent this afternoon reviewing Agora marketing copy for Vantage Point and the newsletters and have verified that the charge that you failed to disclose your personal interest in GeneMax is completely false.' Agora will be filing a motion to dismiss the SEC's baseless complaint.
I fail to see how anyone of good faith who reviewed the record could possibly construe it as the SEC apparently has. Although I can't prove it, I have concluded that the SEC, or at least some of its personnel, were more offended by my criticism of electronic counterfeiting than they are by the abuse itself -- which causes you and other investors hundreds of billions in losses. In fact, the costs of electronic counterfeiting are much higher than those entailed in the accounting scandals which have garnered so much attention. Nonetheless, instead of correcting these abuses, the SEC has gone out of its way to rope me into a doubtful complaint that they have developed against another Agora publication -- a product to which I have no connection other than a passive one as a minority shareholder in Agora.
Nor do I take it to be entirely a coincidence that while I have recommended more than 30 investments in Vantage Point over the past 16 months, my reputation is being tarred in respect to just two companies, GeneMax and Endovasc. These two companies have one thing in common, in addition to the fact that both have promising medical innovations that could ease much suffering and save many lives. Both have been at the forefront of legal action to combat the abuse of electronic counterfeiting of their shares. But these efforts have hardly earned them the friends they should. Rather than garnering applause, their efforts to confront the abuse of electronic counterfeiting of their shares has made both companies the focus of negative publicity.
In particular, one writer, Carol S. Remond, undertook to paint a negative picture of both companies, publishing what bordered on outright lies. For some reason known only to others, the SEC appears to have adopted Remond's text in defense of the electronic counterfeiters. In this respect, it is suggestive that the SEC apparently leaked its complaint about Agora to Remond, who cooperated by writing a story trumpeting the SEC's effort to discredit me and these good companies.
I wanted to write to you immediately when I got this startling news to tell you that I will not be cowed by these Machiavellian tactics. I will continue to raise important issues of investor protection that the SEC appears to wish to duck. I do so with faith that the truth will eventually triumph, the evil of electronic counterfeiting will be curtailed, and the integrity of public security markets restored.
Or to put it another way, if powerful people are so keen to discredit my criticism of electronic counterfeiting that they will orchestrate an entirely bogus charge of the kind carried on the wires against me this week, that itself indicates that more light needs to be shed on the shadowy activities they are trying to protect.
But, on to the status of your GeneMax holdings... Absolutely nothing about this company or its exciting immunotherapy development has changed and would warrant this share price decline. In fact, in an independent study commissioned by the company, it was determined that if GeneMax were funded as low as at $1.50 per share, and assuming that its products prove to work as well in humans as they have in animals, the present value of the stock would be $420 per share, notwithstanding dilution. GeneMax remains a fundamentally sound company and a tremendous buying opportunity at these levels. I recommend that you increase your GeneMax shares, as well as those in Endovasc (EVSC.OB). And, may I reiterate, I am a shareholder in both companies.
And, if you are as concerned as I am about electronic counterfeiting and its effects on the dynamic young companies that must fuel our country's future growth (as well as your portfolio), I urge you to write your congressman. You can also register your concern with the National Association Against Naked Short Selling (http://www.nakedshortselling.com),, which is taking up the fight for companies and investors alike.
Sincerely,
James Davidson
.........................................................
NOW HOW DID O'QUINN MISS THE MILLIONS BEING DUMPED BY DAVIDSON AND SUMMERS AND CANTRELL AND ONLY COUNT A SUPPOSED MEASELY MILLION BEING 'OVERSOLD' BY SCHWAB, ETRADE,ET.AL.? DID O'QUINN PERSONALLY,WILLFULLY ALLOW HIS NAME TO BE USED FOR FRAUD OR WAS IT ALL A BIG MISTAKE?
.........................................................
Endovasc Shareholder Alert
Thursday December 19, 2:38 pm ET
MONTGOMERY, Texas--(BUSINESS WIRE)--Dec. 19, 2002--Endovasc Ltd. Inc. (OTCBB:ENVC - News) -- a biotechnology company focused in the area of cardiovascular disease -- announced today that it believes the Company's stock has been shorted in the past few weeks, taking it down from $3 to the current $0.60 level.
Many of Endovasc's shareholders have contacted the Company during the last few days to express their concern on the significant drop in the Company's share price. Endovasc believes its shares are again being manipulated downward by a handful of short-sellers. The Company does not have any detailed evidence supporting this claim but has advised its attorney, John O'Quinn, to investigate the recent activity in the stock.
'It is important for our shareholders to know that we are fundamentally the exact same company as we were a few weeks ago when our stock was trading at $3.00. In fact, we have made further progress since then, as our recent press releases indicate,' says Dr. David P. Summers, chairman and chief executive officer of Endovasc Ltd. Inc.
COULD IT BE THAT THE 'HANDFUL OF SHORT SELLERS' WERE THOSE WHO GOT MILLIONS 'PREFERRED SHARES'FOR THEIR 'SPECIAL RELATIONSHIP' WITH THE 'COMPANY' AND THE OFFSHORES THEY DEALT WITH ?
.........................................................
This below from Brent Mudry in 2002,an excellent stock fraud investigator,formerly of Canada's StockWatch, shows clearly Schwab has had clients running pump dumps from Schwab accounts in the past .Thus Charles Schwab should be not only vigilant in this post 9/11 world but when a concerned customer has lost everything from a pump dump originating from one of their own accounts the past tells them they should investigate.
Not just because one of their customers lost everything in a stock purchase and because the Schwab account shows pattens of a pump dump than can be localised to on or around November 2002 but because it would not be the first time.
And Brent Pierce,mentioned below in association with that Schwab pump dump, just happened to be partner with James Dale Davidson who was touting Endovasc through his 'Vantage Point' 'pumpzine' when the dump of shares from that loaded Schwab account were dumped.
James Dale Davidson and his pals Grant Atkins and Brent Pierce, mentioned below, ran the 'NAANSS' SCAM with Mr.Davidson out of the Blaine,Washington Genemax office.Both dumping their Genemax and other penny frauds whose shares they manipulated and touted to defrauded shareholders,all the time pointing to market makers like Schwab,Ameritrade,etc,.all the while using those brokers' private accounts to dump their penny scam shares from.The naked short scam created a smoke screen for this insider pump dump scam.And market makers like Schwab, or particularly Schwab,were aware of what was happening.
Schwab wasn't 'naked shorting',insiders were dumping through a private Schwab account!!!
............................................................
From Brent Mudry:
'In 1995, Merit's Toronto head branch took a hit when regulators halted trading in Ultra Pure Water Systems (Canada) Inc., a wash-trading rig job involving controversial Vancouver promoter Gordon Brent Pierce. The Ultra Pure ring left $2.36-million in unpaid debits at seven brokerages when the Alberta Stock Exchange abruptly halted the stock in March, 1995, led by $960,000 in debits in UPW accounts handled by Merit broker Stephen Traub.
'Although Mr. Pierce's behind-the-scenes Ultra Pure involvement was first revealed by Stockwatch in April, 1995, rumours of Merit's million-dollar hit had already been the talk of Howe Street and Bay Street. A number of Mr. Pierce's fronts, including Ultra Pure president Grant Atkins and Harvey Gorsuch, key players in the promoter's former Vancouver Stock Exchange disaster, Cost-Miser Coupons, opened or dealt in dubious offshore accounts at Merit, although Mr. Pierce was careful to keep his name off any public documents for Ultra Pure.
'The Ultra Pure case was the feature of a major probe by the commercial crime section of the RCMP. The Mounties capped up a 13-month criminal investigation in April, 1996, with a recommendation that charges be laid, but a Crown prosecutor subsequently 'no-charged' the file, in a controversial decision. Mr. Pierce's long-time front, Mr. Atkins, is now busy with another dubious penny stock promotion, GeneMax, which targeted Vancouver brokerages Global Securities and Union Securities in a naked shorting suit on Sept. 4.
'Although Merit head Barry Kasman had the misfortune of watching his firm sink after being torpedoed by at least one barely supervised broker and a number of dubious offshore accounts, he went on to head Rampart, which now finds itself accused of failing to supervise its brokers, verify identities of offshore account clients and other compliance troubles, including failing to take acceptable antimoney-laundering measures.
'With Mr. Kasman at the helm, Rampart, like Merit before it, had the misfortune of attracting a number of dubious clients, none of whom are identified in the IDA's detailed 26-page notice of hearing.
'The latest notable Rampart client to be flushed out is Jeffrey Ray Senger, 36, of West Palm Beach, Fla., who was arrested by the FBI on Aug. 14 in Operation Bermuda Short. In a 23-page grand jury indictment, returned on May 21 in United States District Court for the Southern District of Florida, and unsealed the day after his arrest, Mr. Senger faces a total of 28 counts in two separate wire, mail and securities fraud conspiracy.
'Rampart is featured prominently in the first case, in which Mr. Senger faces 27 counts for masterminding the pump-and-dump rig job of Lifekeepers International, which included a small network of bribed brokers, from November, 1998, through March, 1999, which resulted in investor losses of $3-million. (All figures in U.S. cases are in U.S. dollars.) In the second, Mr. Senger was snared in Bermuda Short's bribed mutual fund manager sting, allegedly agreeing to pay a 50-per-cent kickback for an $8-million investment by the fictitious fund in Piccard Medical and International Stores.
'If convicted, Mr. Senger faces maximum statutory terms of imprisonment of five years for each count of mail, wire and securities fraud conspiracy, 10 years for securities fraud, and 20 years for money laundering.
'In a co-ordinated action, the United States Securities and Exchange Commission also named Mr. Senger in a civil complaint relating to a later pump-and-dump of Lifekeepers, from November, 1999, through February, 2000. His co-defendants in this action are broker Brad M. Nirenberg, 38, of Coral Springs, Fla., and Norman F. Piatti, 48, of West Palm Beach, Fla., the president and CEO of Lifekeepers.
'The identity of Mr. Senger's employer should have caused a few red lights to go off in Rampart's compliance department. Mr. Senger controlled a branch of Baxter Banks & Smith, a junky U.S. brokerage later shut down by regulators. (In the unrelated Maid Aide case, Las Vegas penny stock lawyer Max Tanner and a number of licenced and unlicenced Baxter Banks brokers, virtually all since convicted, used Howe Street brokerage Pacific International Securities, facing a landmark British Columbia Securities Commission hearing Oct. 7, as a key conduit for illicit offshore trading. A second Canadian brokerage is also believed to have been used by the Maid Aide ring, but was never identified in court filings.)
'The grand jury indictment claims Mr. Senger acquired large blocks of Lifekeepers shares from November, 1998, to January, 1999, directed Baxter Banks boiler room brokers to flog the stock in return for secret kickback commissions, manipulated the stock and dumped his shares through accounts at other brokerages, mainly Rampart and discount brokerage Charles Schwab.
'Once defendant Jeffrey Senger and other co-conspirators who are not named in this indictment finished liquidating their Lifekeepers stock, they would stop touting that stock and would cease offering further payoffs to the conspiring brokers for promoting and selling that stock to their clients. At that point, the conspiring brokers would generally stop soliciting customers to purchase Lifekeepers stock, and the market price for that stock would decrease substantially.'
'U.S. authorities claim that as a further part of the conspiracy, Mr. Senger's greased brokers agreed that they would not get paid by him if their brokerage clients sold their Lifekeepers shares before he gave the go-ahead. The indictment claims the brokers never told their clients their main motivation in touting Lifekeepers shares was the cash bribes Mr. Senger was paying them. Although Mr. Senger allegedly greased 'numerous' dirty brokers, none of these unindicted co-conspirators are identified.
'According to the indictment, between December, 1998, and January, 1999, Mr. Senger transferred 180,000 shares of Lifekeepers to a brokerage account in his name at Rampart, formerly known as Merit Investments. Starting a month earlier, he also deposited 285,000 shares into an account in his name at Charles Schwab. It is unclear when Mr. Senger opened his account at Rampart, and whether the brokerage's compliance staff ever wondered why a client in Florida would take such a keen interest in a brokerage in Toronto.
'While Mr. Senger had a smaller initial position at Rampart, it dominated his selling. The indictment claims Mr. Senger dumped 208,500 Lifekeepers shares through his Rampart account, but just 15,000 shares through his Schwab account.(end Brent Mudry)
SO DUMPING FROM A SCHWAB ACCOUNT WAS NOTHING NEW YET SCHWAB COVERED UP THE ENDOVASC PUMP DUMP FROM ONE OF THEIR OWN ACCOUNTS THEY COOPERATED WITH LOADING UP FOR ENDOVASC INSIDERS TO DEFRAUD MYSELF AND OTHER CONNED 'INVESTORS'.WHY ?
.............................................................
Schwab and 'LOM' and perhaps J.D Davidson Collusion ?
By tony ryals on 7/6/2004 1:09:49 AM
E-mail: biodog0@yahoo.com
Note that in letter below from Charles Schwab and in the copy of 'shareholder agreement' for 'select client' of Endovasc and presumably Schwab's,no name of account holder is given who received 'up to 30,000,000 shares' into a Schwab account in May 2002.
No money was required for these shares or exchange of shares from the 'select client'.At the same time a reverse split of 40 for 1 was occuring and would take effect in July 2002. This 'reverse split of approximately 100 million shares should not have left more than 3-4 million shares existent in all, yet a Schwab account was already being filled with up to 30 million shares !!!
Endovasc put out a businesswire pr assuring all
shareholders they would maintain their same 'proportionate percentage' of ownership as before the 'reverse split'.In late 2002 Mr.James Dale Davidson began his pump of Endovasc stock including a false claim,to my knowledge, of having co-authored a patent for the 'company' with 'Dr.' David P.Summers for which he supposedly received shares. But no SEC filing exists for this.
To my knowledge there was never a patent.Mr.Davidson never gave me a patent number when requested by me.In fact,in separate 'Vantage Point' pump or tout releases Mr.Davidson claimed to be a 'substantial shareholder' although the source of shares or quantity was never declared or explained.
Whether or not this has bearing on 'LOM' or whether the private Schwab account was separate from 'LOM' I believe that account dumped in late 2002 coincidental to Mr.Davidson's pump.I have asked Schwab repeatedly for an answer.None has been forthcoming.Ethically, as an account holder, defrauded by Davidson's pump and someone's dump, I believe SCHWAB OWES A YES OR NO ANSWER AS TO WHETHER THE ACCOUNT RECEIVING SHARES BELOW DUMPED AT OR ABOUT THE TIME OF DAVIDSON'S 'VANTAGE POINT' TOUTING OR NOT.
I also believe Schwab,the market maker, by knowledge of that accounts existence, while I was completely in the dark,had access to and trading advantage FROM insider knowledge while I was left completely in the dark as this pump dump went down.
To make the fraud even worse once the pump dump of late 2002 ran it's course Endovasc 'management' put out an additional pr and claimed their 'famed trial attorney O'Quinn' had discovered an 'oversold' or naked short position by Schwab,Ameritrade,AND Refco and that it was now nccessary to buy a cert from their transfer agent,Alexander Walker, and his natco transfer agency !!!
Schwab remained silent when I queried them leading me to believe the 'famed trial attorney'O'Quinn's assertions as advertised by Endovasc.Only later would I note Mr.Walker received $200,000 IN FREE SHARES FOR HIS PART IN THE SCAM AS AN 'INSIDER'.
I MIGHT ADD THAT PREVIOUS TO THIS 'EXPERIENCE' I HAD NO EXPERIENCE WITH STOCKS MUCH LESS PENNY STOCKS IN MY LIFE. NONETHELESS THIS DID NOT DETER SCHWAB FROM SELLING THEM TO ME WITH NO ADVICE,COUNSELING,OR WARNING WHATSOEVER OVER THE INTERNET WHERE THEY WERE TOUTED.AND SCHWAB,WAS THE MAJOR 'MARKET MAKER'IN THIS PENNY PUMP DUMP.I BELIEVE,IN RETROSPECT THIS WAS REQUIRED BY SEC REG 15-G,BUT I AM CERTAINLY NO EXPERT ON THAT EITHER.
Tony Ryals
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FROM RECENT ARTICLE ON LOM BY CAROLE REMOND :
'As of January 2003, LOM had brokerage accounts with at least four U.S. brokerage firms, including Knight Securities LP, Paragon Capital Markets Inc., Wein Securities Corp. and Vfinance Investments Inc., the SEC said. The firm also has accounts at Sterne, Agee Capital Markets Inc. and Schwab Capital Markets LLC.'
from Carole Remond DJ's In The Money,June 2004
Could it be that Endovasc's 'Dr.' Summers' and Dwight Cantrell's deal with 'select client'to fill account with up to 30 million shares was none other than a 'LOM' account associated with James Dale Davidson's pump of Endovasc in late 2002 ?
...........................................................
Letter from Charles Schwab,early 2003:
Dear Mr.Ryals,
In your email(early 2003),you accuse Schwab of failing to mail the(ENVC) 14C document to you as a shareholder of record. Schwab uses a vendor to conduct most shareholder mailings received by an issuing corporation.Each issuing corporation may choose how they want to forward any mandatory documents to its shareholders.That responsibility lies solely on the issuing corporation and its delegates.In this case ENVC never provided Schwab with a document or instructions to mail any documents for ENVC to its shareholders of record as outlined in your emails.
In researching your allegation I found documents pertaining to an ENVC private offer that was forwarded to Schwab by another client holding ENVC shares in a Schwab account.The reason I share this with you is because I think it pertinent to your allegations and your persuit of the truth,what did Schwab know and when.
On May 28,2002 Schwab received a fax from a client about ENVC(see copy enclosed).Schwab confirmed the details of this document on May 29,2002 at 2:30pm with Dwight Cantrell CFO,Endovasc LTD.,INC.At that time Mr.Cantrell confirmed that the company was conducting a 'Private Offer'to accredited investors only.Endovasc stated that they would be responsible for the mailing to selected Shareholders.
Once informed of this Schwab's responsibility is solely passive. In your latest email you made a specific allegation that Schwab failed to perform on it's fiduciary duties duties,to you,our client.We take issue with this and demand that you stop with these types of allegations against the Charles Schwab Corporation.We reserve the right to take any legal action necessary if you do not stop immediately.
Mr.Ryals,it is clear through your emails that you feel that you have been wronged.May I suggest that you persue this issue through proper regulatory proceedings rather than an futile email campaign.Making unfounded allegations does not support your quest for satisfaction and may lead to legal action
against you.
Sincerely,
Eliaz Torrez
Schwab Chairman's Division
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PARAGRAGH OF EXCHANGE AGREEMENT:
'The undersigned(Subsciber)hereby agrees to exchange,and Endovasc Ltd.,Inc.,a Nevada corporation(The 'Company')hereby agrees to issue and exchange with the Subscriber,the number of shares of the Company's $.001 par value common stock(the'Company Shares')set forth on the signature page hereof for Series B Convertible Preferred Stock,$.001 par value (the 'Preferred Stock')convertible in accordance with the terms thereof at the exchange ratio of one share of Preferred Stock for each ten shares of the Company Shares exchanged (The Exchange).The Certificate of Designations of Series B Convertible Preferred Stock,$.001 par value per share is annexed hereto as Exhibit A('Certificate Designation').(The Company Shares are sometimes referred to herein as the 'Shares' or 'Common Stock').(The Preferred Stock and Common Stock issuable upon conversion of the Preferred Stock are collectively referred to herein as ,the 'Securities').Upon acceptance of this agreemnent by the Subscriber,the Company shall issue and deliver to the Subscriber the Preferred Stock against receipt of certificates representing the Company Shares endorsed or with stock powers attached in proper form for transfer.This Exchange Agreement and other similar Exchange Agreements relate to the exchange of a maximum of 3,000,000 shares of Preferred Stock for a maximum of 30,000,000 shares of Company Shares......'
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So begins the deal that excludes regular shareholders and is sent only to 'select customers'while hiding and or not sending Nevada dissenters rights notification to as many as possible.Also offering an illegal appraisal price of .025 rather than the .04+ OR .05 THAT SHOULD HAVE BEEN OFFERED TO ANY SHAREHOLDER SEEKING TO OR KNOWING ABOUT THEIR DISSENTERS RIGHTS.This was all done for and to the benefit of the very shorters Dr.Summers and Canrtell claimed to be fighting.Thus starting a new round of debentures for the shorters.
And Dr.Summers and Cantrell knew the holders of those millions of shares were partners with or received their shares from, the very debenture dumpers,Balmore and Celeste,that had previously shorted 'regular' shareholders share value down to near nothing.As Cantrell stated, about 3 individuals got a 1 for 1 share exchange.And you can bet they were related to the offshore debenture shorters directly or to their associates.
Now it is time for Summers and Cantrell to acknowledge they lied and dfefrauded shareholders in repeating the very deals with shorters all over again.I do not neccessarily accept this document as final deal they made but that it represents their collusion with and protection of secrecy with the shorters.
I believe the shorters actually have been allowed to sale and dump since the reverse split they did not endure and thus a small hidden fortune was made by first increasing the value of each share 40 times(while regular shareholders lost that value overnight)and that those like Davidson,and his 'special relation to the Company'allowed him to fleece and defraud the regular shareholders even further.
I believe the SEC should open the records of Walker's The Nevada Agency and Trust and do a 'share audit'.And I believe James Dale Davidson should reveal his relation to the offshores and just exactly how many shares he got from whom and at what price.And if he did receive his shares from a patent he exchanged with the company regular shareholders deserve to know from both him and the Company,WHAT PATENT AND HOW MANY SHARES WERE EXCHANGED FOR THIS UNNAMED AND SO FAR UNREPORTTED PATENT.
So begins the deal that excludes regular shareholders and is sent only to 'select customers'while hiding and or not sending Nevada dissenters rights notification to as many as possible.Also offering an illegal appraisal price of .025 rather than the .04+ OR .05 THAT SHOULD HAVE BEEN OFFERED TO ANY SHAREHOLDER SEEKING TO OR KNOWING ABOUT THEIR DISSENTERS RIGHTS.This was all done for and to the benefit of the very shorters Dr.Summers and Canrtell claimed to be fighting.Thus starting a new round of debentures for the shorters.
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Is Schwab's relations to offshore clients in penny stocks and their pump dumps a conflict to 'regular' Schwab customers who,unlike Schwab, don't realise a pump dump is coming down ? I am now almost positive 'LOM' of Bermuda was the 'select client' Schwab filled the below account for with Endovasc's corrupt management's deal below.Schwab would never say but SEC investigation may be finally bringing this Endovasc,James Dale Davidson pump dump through Schwab account to light.
Those behind that first Endovasc pump dump I experienced appear to be related to the 'offshores' Balmore S.A. and Celeste Trust,mainly shells with shady people,(probably Europeans,Canadians, Americans and Israelis,not necessarily in that order.),engaged in discount penny stock share buying from desperate,or more often corrupt management, which Endovasc typifies. Then dumping shares,from the British Virgen Islands or Bermuda or the Caymans or some other Caribbean entity favorable to such slimy penny stock share and money laundering activities.
Or,as I've come to find out,with friendly brokers or combined 'broker-market makers' like Schwab Capital who buy and sell penny stocks as well as open private accounts for offshores to dump through as the stock is being touted or promoted through paid pr con men.A website called Penny Rocket may have been one of the tout promotors paid at that time,at least some ragingbull aliases touting on Endovasc's message board at the time mentioned it.
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Within a few months of the late 2001 to early 2002 pump and dump and consequent rapid rise and crash back to near a 3 cent share price for Endovasc a 'reverse split would be announced that spring of 40 shares converted to one.So my over half million shares would now be converted to a few thousand.But note the lieing pr below telling me my 'proportionate percentage ownership',which was substantial,would remain:
Answers Shareholder Questions
MONTGOMERY, Texas, July 25 /PRNewswire-FirstCall/ -- Endovasc Ltd., Inc. (OTC Bulletin Board: ENVC) -- the Company behind the ANGIOGENIX(TM) treatment (a revolutionary way to facilitate 're-growth' of the heart tissue) announced two weeks ago that its shareholders approved a one-for-forty stock split of the Company's common stock. Since that announcement, the Company has completed the split and begun trading under its new ticker symbol, ENVC. After encouraging its shareholders to contact the Company with additional questions and suggestions, Endovasc has received numerous questions on various issues, including the reverse split and its impact on shareholders. Here is the synopsis of the most common questions and the Company's answers to them.
Q: What are your future plans for turning a profit?
A: It is important to remember that our industry -- biotech -- is extremely research and development intensive. This means that many biotech companies that are in the middle of the research cycle don't yet have any revenues. But as soon as drugs and treatments go through the FDA approval process -- and sometimes even before the process is completed -- these biotech companies can start generating significant revenue through licensing, royalty and distribution agreements.
We are very proud that we have been able to get two of our breakthrough drugs -- Liprostin(TM) and ANGIOGENIX(TM) all the way through to Phase III FDA trials. We have been extremely fiscally conservative. Our overhead is low, we have a very manageable debt, and we probably have one of the lowest, if not THE lowest burn rate of any companies in our industry that have ever brought two major products all the way through to Phase III trials.
Q: Can you expand on your revenue model?
A: Many investors are unaware of the fact that we may be able to start producing significant revenues even before the Phase III trials have been completed. Most investors don't seem to grasp how difficult it is to get drugs from a concept stage through to Phase III -- where we are now with our two major breakthrough treatments. Our revenue model directly affects our profitability and therefore our stock price. That's why we plan to issue a separate release describing our revenue model in more detail very soon.
Q: Where do you think your stock price will go?
A: As a public company, we can't make any stock price predictions. However, our market cap is less than $2 million, making our market cap one of the lowest in absolute dollar terms in the industry. Secondly, we have one of the lowest negative P/E ratios in the industry -- which again reflects our lean structure and fiscally responsible spending. Most other biotech companies are like Internet start-ups of the late 1990s in that they are losing millions and millions of dollars every year, even though they may not have two promising products ready for the Phase III, like Endovasc. Still, many have market caps of well above $100 million. Our current burn rate is still very low, and we are not planning to go on a spending spree even after obtaining additional funding.
Q: What does it mean that 'the reverse split will not affect any shareholder's proportionate interest in Endovasc'?
A: In a reverse split, the Company's total number of common shares outstanding went down by a factor of 40. Each shareholder now has one share for every 40 shares he/she owned before the split. This means that each of the shareholders still holds the same percentage ownership of Endovasc, even though the total number of outstanding shares has been reduced.
Q: Why did Endovasc undertake a reverse split? How will this benefit the Company's shareholders?
A: We are developing Endovasc with a long-term goal of gaining listing on Nasdaq or Amex -- as soon as we meet their listing requirements. In order to accomplish that, we need to focus on our fundamentals to maximize shareholder value in the long run.
We are working diligently to obtain additional funding. Funding will not only enable us to execute our future plans, but will also boost our net assets. Assets and stock price per share are some of the major listing requirements for both Nasdaq and Amex. We had almost 100 million shares outstanding prior to our split, which would have made it very difficult to reach Nasdaq SmallCap's minimum listing stock price of $4. With that many shares out, we would have needed a market cap of almost $400 million just to get listed.
In addition, many reputable funding sources, including institutional investors, do not typically invest in companies that are trading at pennies and have tens of millions of shares in the float. We believe that the reverse split has made our stock structure healthier and better positioned us to attract serious investors. In other words, we believe that these recent developments will really benefit our long-term shareholders who have made their investment decisions based on our fundamentals.
Q: The stock price has gone down since the reverse split. What do you plan to do about it?
A: Our current market cap is less than $2 million. This means that a company with two major breakthrough drugs in a $69 billion annual market is currently valued at just $2 million.
Small investors typically enter the stock market when stock prices are high and exit during mass panics when stock prices are low. We hope that our shareholders focus on the real progress that we are making instead of succumbing to panic because of the day-to-day stock prices.
About Endovasc:Endovasc is a biotechnology company that focuses on curing debilitating cardiovascular diseases resulting from arteriosclerosis (hardening of the arteries), diabetes, neurovascular and neurodegenerative disease, and congestive heart failure (CHF). The company has developed proprietary pioneering drugs and delivery technologies that deliver and release drugs to their intended targets by: (1) encapsulating drugs in 'germ-sized' microspheres called liposomes, which can target a single cell, and (2) small artificial metal and polymer scaffolds called vascular stents, which when placed in a blood vessel can restore the function of the artery to supply blood to blood-starved areas such as the area damaged by a heart attack.
Cardiovascular and diabetes markets account for more than USD 69 billion in sales volume per year -- 25% of the entire pharmaceutical market. Cardiovascular diseases are the number one cause of death in the western world today. They account for 50% of deaths worldwide, nearly double of those caused by cancer, the second most prevalent cause of death. Diabetes is the fastest growing disease in the United States. It is estimated that in the U.S. alone, the economic cost of these diseases is over USD 250 billion per year.
To sign up for shareholder alerts, please visit http://www.endovasc.com/html/e-list.html
The foregoing statements are made under the 'Safe Harbor' Private Securities Litigation Reform Act of 1995 and may contain forward-looking statements that involve risks and uncertainties that may not be evident at the time of this release. For more information about Endovasc, please visit www.endovasc.com . Please read the Company's filings with the Securities and Exchange Commission -- see www.freeedgar.com .
Contact Information: Investor Relations, Endovasc Ltd., Inc., email: InvestorRelations@endovasc.com
MAKE YOUR OPINION COUNT - Click Here
SOURCE Endovasc Ltd., Inc.
-0- 07/25/2002
/CONTACT: Investor Relations of Endovasc Ltd., Inc., InvestorRelations@endovasc.com/
/Web site: http://www.endovasc.com/html/e-list.html /
/Web site: http://www.endovasc.com /
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Submitted: 10/7/2004 3:36:56 PM
Modified: 10/7/2004 6:31:31 PMTony
Antigua, Central AmericaGuatemala
NAANSS or How Attorney O'Quinn Aided Massive Penny Stock Fraud and the 'Penny Mafia'
'Stop Naked shorting' became the cry of a number of fly by night websights.'NAANSS' or 'National Association Against Naked Short Selling' ran or operated out of the penny fraud company Genemax's Blaine,Washington office and 'investigatethesec.com' out of Vancouver, Canada were perhaps the two biggest promoters of this fraud.
Mainly,as it turns, out to mask their and their own clients' massive pumping then dumping of shares on naive and trusting investors such as myself.The 'NAANSS' site run by the far right political and securities fraudster James Dale Davidson and his Canadian convicted securities fraud partner Brent Pierce has since quietly closed down its website having made,no doubt,a substantial sum of millions of dollars conning investors not to sell but to go 'long' on the many penny company frauds while they quietly dumped millions of shares on their defrauded victims.
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Strangely,in December 2003,shortly after my SEC 'SHO' comments regarding Davidson et.al.'s 'naked short scam' appeared on Google search of 'NAANSS' from the sec.gov site, some of the tout aliases on ragingbull knowing it was me who sent it to the SEC began making cynical mention and posting the link.Then it disappeared from a google search entirely.I thought the sec decided to remove it.I sent a message informing them it had been removed.I received no reply but shortly thereafter it reappeared.As it turned out the 'naanss' fraudsters have now removed their own site in efforts to protect the guilty cyberfraudsters they are.I still think the fraudulent criminal mind of Mr.Davidson otherwise not being very clever or imaginative,named his 'gennemax' pump dump shell company for 'newsmax.com' that he brags about founding.
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“If I were operating some sort of mafia in the United States, I would be only too delighted to have the leading voices of the news media insist to the public that many of my crimes could never have happened. It might even be worth hiring some goofballs to spread preposterous theories about nonexistent conspiracies in order to discredit persons who might stumble upon evidence of the real thing." — James Dale Davidson, Strategic Investment Newsletter, 7/25/95, commenting on the Susan Schmidt article in the Washington Post of 7/4/95.
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So called 'famed trial attorney' John O'Quinn,knowingly or not, aided and abetted this fraud claiming it was true and litigating case after case and losing every one of them for lack of proof.But of course his real clients were not the vulnerable shareholders holding increasingly worthless shares as more and more were dumped into the market by these companies 'management''.And often these 'companies' had-have questionable if not mafiosi business ties and people with past criminal convictions or corrupt business practices.Attorney O'Quinn received a number of emails over this time from me alone warning him that he had not accounted for shares being obviously and brazenly dumped on investors by the very companies's management he defended against 'market makers'.And as much as he pretended to fight the market makers,virtually all his failed litigations were against the corrupt moneylenders these companies willingly took money from in the first place,not to support the companies they ran,but to put into their own pockets. ...........................
Attorney O'Quinn's clients were the real con artists and the investors O'Quinn did nothing for, holding their stock and trusting his honesty and legal background were the real victims.O'Quinn could never win in court and probably knew it because his own clients had signed the discount shares for loans to line their own pockets or launder offshore along with the touting loan sharks they often work with and for. Yes the Patriot Act and many laws already on the book that could deal with this criminal fraud aside,the SEC and Federal regulatory agencies seem to allow this massive fraud that can be used for money laundering to support any criminal or terrorist activity.
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Below is Attorney O'Quinn's comments to SEC re 'naked shorting'.I find it difficult to believe Attorney O'Quinn did not know of the massive 'naked short scam' fraud his corrupt penny stock management clients were involved in using his name to promote their pump dump frauds.:
Comments of John M. O'Quinn, Esq. on Proposed Regulation SHO
January 5, 2004
Mr. Jonathan G. Katz, Secretary
Securities and Exchange Commission
450 Fifth Street, NW
Washington DC 20549-0609
Re: Proposed Regulation SHO
Dear Mr. Katz:
Over the last couple of years, I have been representing people who have been devastated by predatory and illegal short-selling. This illegal securities misconduct has been cleverly concealed by the perpetrators for years. Recently, the S.E.C. has acknowledged this reoccurring illegal conduct and taken some action. While those actions are a step in the right direction, they do not go far enough to protect vulnerable corporations and their legitimate stockholders from this pernicious activity. If, as a nation of laws, we do not act now and forcefully to stop this pernicious illegality and to protect such corporations and stockholders from it, our stock markets will be viewed by investors as corrupt and faith will be lost in our markets, both here and abroad. Naked short-selling destroys the value of the small innovative companies that have historically been the powerhouse of our American economy.
When we speak of “naked" shorting, we are referring the practice of selling shares short without fulfilling the obligation to deliver the shares to the purchaser. Opportunistic traders have learned how to take advantage of an overworked regulatory system to manipulate stock prices and profit from virtually riskless trading strategies.
These current recommendations are not strong enough to give the protection and relief to the hundreds of companies that have been, and continue to be, victimized by unscrupulous naked-shorting. Unless the system assures the public that every short position taken is backed by actual shares of the issuer there will be no effective restraint imposed upon these manipulators. We depend on the S.E.C. to protect these companies and ensure the integrity of the market. The time has come for true reform in this area.
Sincerely,
John M. O'Quinn, Esq.
O'Quinn, Laminack & Pirtle
Houston, Texas
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Attorney O'Quinn,for all his bluster and prestige which was used by his clients for more press releases to promote their questionable penny stock companies,never proved a single case of 'naked shorting' and if anything aided his corrupt clients in their pump dump activities by creating a smoke
screen. ...........................
An example of political manipulation funded in part by this corruption is Mr.James Dale Davidson's questionable politics of accusing former President Bill Clinton of various murders,including those of Vince Foster and former CIA Chief William Colby(who was Davidson's own employee when he died and whose name he used on the letterhead of Davidson's stock tout mail fraud called Strategic Investment' ,by the way,which is mentioned below !!!) is just one example of what defrauded American investors might unknowingly be paying for.In many ways Davidson has used money defrauded from American investors to launder offshore to avoid taxes and to foment political psy-ops to destabilise the very government that has allowed him such priviledge.Ironically Davidson is the founder of 'National Taxpayers Union',that Mr.Steve Forbes,of Forbes business publishing fame,is also involved in.And yet Davidson strives to defraud American public in penny stock scams and launder monies in offshore shells.
If his former employee,CIA Chief William Colby,only knew half of his shady business scams it would be more likely Davidson might want him dead much more so than Bill Clinton who probably rspected this old 'New Deal' Democrat for having blocked Nixon from using the CIA to cover up Watergate and testifying against extreme CIA PRACTICES BEFORE CONGRESS IN THE 1970'S.
James Dale Davidson and his co-author the Lord Ress-Mogg have connections with America's far right elite such as billionaire Richard Mellon-Scaife who no doubt was quite enthiusiastic of Davidson's tirade and erroneous accusations against Bill Clinton,accusations that Clinton killed Vince Foster and William Colby.The Lord Rees-Mogg was behind the scenes with Lucianne Golberg as she and Linda Tripp guided Monica Lewinski in her phone conversations and sensational made for the media sex scandal.
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This from canterbury.org of New Zealand at the time of Davidson and his pals purchase of land in New Zealand in 1995 is close to as good a profile of Davidson and his offshore activities as one finds on internet.Perhaps because Mr.Davidson manipulates cyberspace as he does politics and penny stocks:
Wharekauhau Lodge sold to U.S. interests
Wharekauhau Lodge and Farm in the Wairarapa is being sold to four residents of the U.S.A. in order to 'create one of the best and most exclusive lodges in the world'. The lodge includes 931 hectares of land. The current owners, W. and A. Shaw, are retaining a 10% interest in the property and will 'have an ongoing involvement in the development and management of the property'.
The new owner is Wharekauhau Holdings Ltd (WHL). Initially this was owned 24.9% by J. Davidson, 24.9% by A. Miller, 24.9% by M. Baybak, 15.3% by J. Sevo (all of the U.S.A.) and 10% by the Shaws. However in March 1996 this approval was amended to change the shareholding to include in addition Sir R. Douglas (Aotearoa), Lord R. Mogg (U.K.) and J. Blanchard III (U.S.A.). With that change, the shareholding is 24.6% by J. Davidson, 12.3% by A. Miller, 20.2% by M. Baybak, 12.3% by J. Sevo (all of the U.S.A.), 12% by the Shaws, 13.2% by J. Blanchard III, 4.4% by Lord R. Mogg, and 1% by Sir R. Douglas.
They are paying $4,800,000 for the property through the company Wharekauhau Station Ltd.
'The Commission is advised that the Wharekauhau lodge is one New Zealand's leading lodges but currently has limited accommodation facilities.The Commission is advised that WHL propose to implement a development plan that will create one of the best and most exclusive lodges in the world, while also enhancing the current scenic splendour of Wharekauhau. The Commission also is advised that the development plan envisages building new villas and estate homes and extending or replacing the existing lodge house.
It is also intended that the farm business will be maintained as a Romney sheep stud. This will be developed into a model farm with some hill facings being planted in trees and fencing and fertility being improved.'
Sir Roger needs no introduction. Lord William Rees-Mogg is the former chief leader writer and editor of The Financial Times, city editor and deputy editor of The Sunday Times, and editor of The Times (1967-81), 'by which time he had become an accepted establishment figure, on the boards of several companies', according to the Cambridge Biographical Encyclopedia (1994, Cambridge University Press, http://www.intbuscom.com/ibc/about.html). A former Vice-Chairman of the BBC, in 1988 he became head of the new, controversial, Broadcasting Standards Council. He is an author, business commentator and 'advisor to some of the world's wealthiest investors'. His business interests include being Chairman of International Business Communications Group PLC (business publishers, conference organisers etc), and Pickering & Chatto (Publishers) Limited, and a Director of The General Electric Company Plc, and St. James Place Capital Plc ( http://www.intbuscom.com/annual/directorreport.html). As the Encyclopaedia states, he is very much a central establishment figure in the British hierarchy. He is a favourite subject of conspiracy theorists. His government and business connections are likely to have brought him into contact with Douglas.
He has co-authored with one James D. Davidson two books on investment: 'Blood in the Streets' by James Dale Davidson and Sir William Rees-Mogg, (New York: Warner Books, 1987), and 'The Great Reckoning', revised and updated edition, by James Dale Davidson and Sir William Rees-Mogg, (New York: Simon and Schuster, 1993). The first takes its name from the advice given by Baron Nathan Rothschild in 1815: 'the time to buy is when blood is running in the streets'. The second predicts a major depression before the end of the century and advises investors how to prepare for it.
The two also edit and publish Strategic Investment, an investment newsletter described by Chapman Tripp Sheffield Young (CTSY, the shareholders' solicitors) to the OIC as 'the largest circulation (135,000 per month Wall Street newsletter'. Significantly, it 'has been heavily promoting investment in New Zealand', so they are no novices where Aotearoa is concerned. Davidson has written for the Wall Street Journal and numerous other U.S. publications, and is a principal of Strategic Advisors Corporation in Baltimore, Maryland.
The New Zealand Companies Office identifies the OIC's J. Davidson as James D. Davidson of Alexandria, Virginia, U.S.A.. The OIC files confirm this as Rees-Mogg's associate, James Dale Davidson. Davidson is not simply an investment advisor: he is also a political activist after Roger Douglas's heart, and as we have seen, with a standing interest in investment in Aotearoa. He is the chairman of the National Taxpayers Union (compare ACT), which he founded in 1969. It claims 250,000 members, with a budget of $3.5 million, and 20 staff at its headquarters in Washington DC ('Encyclopedia of Associations', 31st Edition, 1996, Part 2, p.2304.) 'The National Taxpayers Union [is] a public interest advocacy organization dedicated to eliminating wasteful government spending and working to reduce taxes and balance the federal budget' (http://www.foe.org/orgs/FOE/scissors95/greenpart31.html).
One of the more fascinating sites on the Internet is 'microstates.com', which has a section, http://microstate.com/bermuda/intexecs.htm, devoted to Bermuda.
There (presumably to attract others to the country), it lists some of the prominent businessmen who use Bermuda to avoid their taxes. It lists such names as Silvio Berlusconi, former far-right Italian Prime Minister, currently engaged in a drawn-out corruption trial ('an Italian media magnate, he was named in the Forbes Magazine billionaires list as being worth more than $2 billion. He owns the large, white home known as ‘Blue Horizons' in Tucker's Town, St. George's Parish, near the home of former US presidential candidate Ross Perot. Signor Berlusconi regularly flies into Bermuda via a private jet aircraft, with his son Piersilvio and daughter Marina. He was the Italian Prime Minister a few years ago and in 1996 made an unsuccessful political bid to become so again. Like his immediate neighbours, the Perots, he has a passion for privacy.'); Jack Carter, son of former US President Jimmy Carter ('his parents visited him in Bermuda for a week in mid October, 1995'); Ross Perot; George Soros; a raft of U.S. and British billionaires and millionaires (and one Australian); and James Dale Davidson:
'James Dale Davidson
'An investment author and consultant to a clutch of leading multinational companies with active Bermuda connections, he is a graduate of Oxford University…
'In his business dealings around the globe, he has observed financial service opportunities in many countries. Over the last few years in particular, he has increasingly used Bermuda as a primary conduit for the range of his financial dealings – from banking and brokerage accounts to incorporating internationally active, prominent companies.'
Evidence for his (and Rees-Mogg's) Bermuda activities comes in the shareholding of Wharekauhau Holdings Ltd: one of its shareholders is New Paradigm Capital Ltd of Hamilton, Bermuda. According to CTSY, this is a 'Bermuda merchant bank' owned jointly by Davidson and Rees-Mogg 'and a Jersey Island based trust' (Jersey is another tax haven). Presumably such tax avoidance is Davidson's way of putting his anti-tax political views into action.
However Davidson's activities move from just right-wing straight into conspiracy theory in an escapade in 1995. It's a long story, but the apparent suicide of Vince Foster, a bit player in the Clintons' Whitewater scandal, led to marginally credible theories that he was actually an NSA operative and a spy for Israel with million-dollar Swiss bank accounts, and was murdered after the CIA got on to him. Davidson dived in to the controversy by financing an examination of Foster's suicide note by three forensic handwriting experts, which, they said, was a forgery (http://www.en.com/users/bthomas/cs/foster/forg.txt: 'An
Independent Forensic Examination Of a Torn Note Allegedly Written by Vincent W. Foster, Jr.', Prepared for Strategic Investment, James Dale Davidson, Editor, 25 October 1995). One suspicion was that Davidson was fanning the flames to help undermine Clinton.
A connection with our next character, James Ulysses Blanchard III, is that a writer for Strategic Investment is Jack Wheeler, of whom more below.
J. Blanchard III is, according to the New Zealand Companies Office record, James Ulysses Blanchard III. James Ulysses Blanchard III (where else but in the U.S.A. would parents call their children such names – and where else would the children use them!) is publisher and Editor-in-Chief of The Gold Newsletter, Los Angeles, U.S.A. He writes business commentaries and advice on gold and silver investments – possibly a connection with Mogg (example: 'Own a Masterpiece of the Old West in Pure Silver! … An Exclusive Offer … ingenious bonus strategy we've developed that will have the U.S. Treasury refund you the entire purchase price of this historic acquisition ...': ref http://www.shopsite.com/libmint/images/oldwest.html). However that is not his most interesting side.
The following comes from Africa News On-Line, 29/1/96 (http://www.newsnet.com/libiss/it15.html) and was originally published in Mail and Guardian (Johannesburg), 19/1/96, as 'Mozambique: US Millionaire Plans Indian Ocean Dreampark', by Eddie Koch. It is more than a little astounding.
'Johannesburg - 'Yo! You and you! Yo!' The big Texan is standing beneath the thudding turbine of a chopper in the middle of the Mozambican bush. He is whooping and yelling and pointing at a group of bewildered peasants who huddle behind a tree to protect themselves from a sandstorm whipped up by the helicopter as it swooped into their settlement.
'Gradually, above the cacophony, the villagers realise the American is telling some of them to 'stop fiddle fucking' (a phrase repeated so often it could be called his company's motto), get into the air and take a look at the natural beauty that surrounds them. This is John Perrott, general manager for flamboyant millionaire James Ulysses Blanchard III, and he is bringing his employer's version of rural development to one of the poorest countries in the world.(end of new zealand canterbury investigation)
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It should then be no surprise penny stock pump dump scams have also attracted the likes of Olllie North and Adnan Khashoggi,the Saudi billionaire arms dealer and friend to America's far right.He still faces a Florida litigation in regards to his involvement with the penny pump dump scam called Genesis InterMedia.And on and on.If Mr.North was attracted to penny stock scams in all likely hood they are a means of laundering or obscuring money flow.:
REAL ESTATE FRAUDS
'The best way to link Ollie North into fraud, to get him away from the narcotics and weapons,' continues Martin, 'is to link him through Stanford Technologies Overseas, Ltd., or Intercontinental Industries, S.A. of San Jose, Costa Rica, in which he was the principal and Richard Secord was the director.' 'These two are the most common ones,' continues Martin. 'Lots of times, Intercontinental would front as a money-laundering organization for disguised loans from other Iran-Contra sympathetic banks in the Caribbean, like Banco de Popular, specifically the Santa Domingo branch.'
The money laundering took a circuitous route. 'Intercontinental Industries would launder proceeds from what were essentially illicit loans back to Stanford Technologies, which would, in turn, direct these proceeds by purchasing interest in fraudulent real estate limited partnerships, like the Phoenix Group Development.'
According to Martin, money for these deals would often be raised through a subsidiary of publicly traded Denver-based MDC Corporation called National Brokerage Group.
'National Brokerage Group winds up buying an interest in another firm (at one time the largest penny stock firm in the United States) Meyer Blinder, which later became Blinder Robinson before it was closed down,' Martin continues. 'In turn, MDC owned pieces of penny stock houses throughout Denver -- Balfour McClain, Atlantis Securities, Singer Island Securities. The list goes on and on, and you will see that most of these corporations in turn had offices in Florida, Nevada, and Texas -- states where security regulations were rather lax.'
These states also contained what Martin calls 'Iran-Contra control features,' i.e state governments which were very loyal to George Bush, Sr.
'Consequently controlling liability within the various state securities or state bank examiner's offices was really remarkable,' says Martin. 'The reason these frauds were able to operate for so long -- in some cases, some are still extant and operating fifteen years later -- and rather discreetly is because no individual investors' money was ever used. There wasn't a series of warm bodies that bought $100,000 worth of these partnerships that got burnt.'
'The people who ultimately got burned were banks and securities firms, and, of course, by extension, the American taxpayers who had to bail them out.'
Uri Dowbenko interview of Al Martin of Iran-Contra fame.
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In his testimony, Gritz said he was covertly funded by the U.S.Government for certain of his operations. With the consent of thehead of a POW/MIA organization known as United Vietnam Veterans Organization (UVVO), Gritz opened a chapter of UVVO and establisheda UVVO bank account at Tokai Bank in Playa Del Ray, California in or about 1986.
Gritz testified:
If I got the word to go on the operation, I said fine. If the money shows up in this UVVO account, then we will go. If it doesn't show up, we don't. And so the money,if it showed up we went.Where the money came from, I didn't know and didn't care.
As a matter of fact, when we trained Afghans we got ourchecks from Stanford Technology. I didn't know what Stanford Technology was, didn't give a hoot. It was just standard procedure until, when Ollie North's thing started coming around here's Stanford Technology is part of Albert Hakkim's organization. So what does that mean? Well, so we used UVVO as a depository where covert funds could be placed for these operations.
Gritz further testified the covert payments from the Governmentwere received via a Florida bank account and that on one occasionhis wife picked up a cash payment of $25,000 at a Washington area supermarket. Gritz' code name for these activities was 'Bear' and he testified he was in frequent contact with ISA and CIA about his covert operations. In November 1992, the Committee received declassified documents evidencing that the U.S. Army began using Gritz in mid-1981; however, it appears this was done to track his private activities to ensure they did not interfere with other U.S. initiatives.
Much of Gritz' activities appear to bid for public attention. While first avoiding Committee investigators' requests for a deposition, and then pleading for an extension so he could finish his presidential campaign, Gritz launched a mini call-in campaign by supporters demanding that he be deposed.
http://www.miafacts.org/private_sec1.htm
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It goes unfortunately without saying that George Bush got his first traceable fortune from a pump dump of another penny scam,Harken Energy which also had a Saudi as well as a Bin Laden connection.
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So not all the penny stock frauds have relied on the 'naked short scam',(this fraud was mainly touted after the market crash of 2000 and has hopefully run its course),but that is only the latest fraud used on a mass scale to once again rob Americans and others.Michael Zwebner's Universal Communications Systems or 'ucsy',for example,has never used the naked short scam in his share-money laundering operations to my knowledge.He is a British-Israeli with his own mafia connections past who used his priviledge to enter the U.S. to defraud others, particularly Americans who welcomed him to this country.He had already left Britain amid economic scandal and supposed phone card scams costing others about 15 million pounds there.He moved to America and began the same stock and 'communications' scams here and authorities pretend not to see.At the moment he is sueing Lycos and its ragingbull.com that he and many other fraudsters have used to tout their 'companies'.
His share-money laundering from touting and dumping unknown millions or billions of shares on Americans by lies and deceit flow to the Caribbean to be sheltered to avoid taxes in America the land he loots not loves.Or the racket he runs through myriad fly by night penny company scams flow to Lichtenstein,European home to money laundering and stolen assets of defrauded AMERICANS AND OTHERS.And of course Israel also offers shelter to his dirty money through pump dump share deals as well.He is rumored to be friends with the president of Israel who himself has been used in press releases to endorse Zwebner's fraudulent 'airwater machine' stock tout that (ha) he claims will provide water from the air of course 'economically'.
To add treason to fraud Mr.Michael Zwebner puts out a press release claiming not only that the Israeli Army is buying his 'airwater machine'(this causes his stock price to rise as 'investors' believe he would not lie so obviously without fear of repercussions)all the while he and his European,and probably more so Israeli criminal associates,dump their free shares as the suckers buy.And then, thinking no one while Americans are dying in Iraq would use their dead and maimed bodies to tout a stock,much less under false pretenses, Mr.Zwebner puts out yet another press release claiming the U.S.military in Iraq is so impressed they are buying his 'airwater machine' as well.This causes the stock to rise and he and his partners in Israel and elsewhere have stolen yet more money from defrauded Americans using their dead bodies in Iraq to do it !!!!
A google search of 'zwebner' 'israel' 'president' should take you to that fraud press release where the president of Israel himself apparently willingly lets his name be used in that stock fraud. A google search of 'zwebner' 'iraq' should be enough to get to the press release selling stock on the body bags of Americans in Iraq. Funny enough,an article-complaint here on ripoffreport which tried to expose some of Zwebner's tactics could be 'googled' until a short time ago.Now it is no longer on a google search.Why and who is responsible ?
My involvement with Mr.Zwebner stems from the fact that one of his business associates is Alexander Walker of 'The Nevada Agency and Trust Company'.Mr.Walker ',formerly an SEC LAWYER IN THE 1950'S,has been not only on the board of one or more of Mr.Zwebner's questionable 'companies' but has acted as stock 'transfer agent' for him in the past.A stock transfer agent can do much to hide and mask the flow of shares and thus money if they are corrupt enough.
Upon discovering the Zwebner-Walker connection I began making inquiries on the ragingbull 'ucsy' message board.I only did this briefly then a short I was 'stalked' on other message boards by an alias 'markettrader' I think it was.Then numerous other aliases replaced that one,all pumping Zwebner's 'ucsy' penny scam and at times emitting death threats to me or other posters critical of Zwebner's Universal Communications Systems'.This was followed by a series of other aliases no doubt from the same Zwebner-UCSY touter who at times made subtle or not so subtle threats,even death theats.This was followed shortly by my ragingbull alias being named with about 100 others anonymous aliases in a 'john doe' litigation for not having spoken kindly about Zwebner's 'company'.Get the picture ?
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ALEXANDER WALKER,THE 'TRANSFER AGENT',AIDS AND ABETS THE FRAUD WHICH IS WHY HE IS ONE OF THE BEST PAID 'TRANSFER AGENTS' IN THE WORLD.......
WALKER, ALEXANDER H.: Declared Holdings
Insider & restricted shareholder transactions reported over the last two years
Date Shares Stock Transaction
2003-06-16 450,000 EVSC Planned Sale
(Estimated proceeds of $198,000)
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Did Alexander Walker and Nevada Agency and Trust remained quiet while Dr.Summers et.al.dumped millions of shares into float last year, while blaming Schwab et.al., because he himself was dumping his Endovasc shares, or not? Did The Nevada Agency and Trust refuse to divulge who got Endovasc Nevada dissenters rights for a reason?
The following is from an old Elgindy report.Whatever one thinks of Elgindy I believe the facts prove him dead on on the Walker-Endovasc connection.:
'SulphCo was created by a reverse merger with Bulletin Board stock FWLD. In the exchange, all FWLD management left the resulting company except for one, Alexander Walker. Not only was he retained on the Board of Directors, but Mr. Walker also received a million stock options with a 50 cent strike price. And what unique skill justified this compensation? Perhaps it is his long history with Bulletin Board Penny stocks. And just to be prepared, SulphCo has penny stock experts on staff as well.
His resume starts with Harvard Scientific (VGEN-OTCBB). Walker was secretary and treasurer of this company, but was removed by the board in a meeting during December, 1997 (from press release). He was involved in litigation with Harvard, which was settled when Walker and other previous officers and directors agreed to return 234,810 shares to the treasury. He later returned to the board and received 1 million shares in return for his services. Harvard is a biotech company working in the area of sexual dysfunction, and is currently moving into the entertainment business. Shares were consolidated on a 1-10 basis in 1998 and currently trade at $0.15. Talk Visual Corporation (TVCP-OTCBB): Walker became a director in 1998 when it was called Legacy Software Inc (LGCY). The company claimed it was a pioneer in the video teleconferencing industry, but derives virtually all of its revenue from rental properties. The company was listed on the Nasdaq small cap but currently trades on the OTCBB at $0.05.
Then Walker shows up in Endovasc Ltd. (ENDV-OTCBB) Walker received 100,000 shares of stock in payment of legal services for this Biotech company which is trading at $0.10. And then Entertech Media Group. Walker was a director of this company, which has become part of WorldNet Resource Group Inc. (OTCBB-WNRG), a $0.10 company being promoted by Geoffrey Eiten and OTC Financial Network. Then Eagle Environmental Tech. (Pink Sheets EGVR) Walker received shares in payment of legal services. Eagle lost it's bulletin board listing for non-filing, and currently trades at $0.05 on the pink sheets. It was promoted by Future Stocks, and was the subject of a Stock Detective article in September, 2000. Capita Research Group (OTCBB CEEG):
Walker was the secretary of the shell, his wife was president, his daughter Amanda received 100,000 shares, and the Walker controlled Nevada Agency and Trust received 435,833 shares for services rendered. CEEG was sold to a group that pioneered techniques to read peoples brain patterns. It last traded at $0.04. Diabetex International Corp. (Pink Sheets- DBTX): This company was incorporated by Walker's daughter Amanda, and his Nevada Agency and Trust was the transfer agent. Diabetex trades in the $0.30 area on the pink sheets, and is developing a non-invasive blood glucose meter. Several known Vancouver-based promoters are reported to be involved with the company. Nevada Agency and Trust: This is a transfer agent, which is controlled by Walker and family. It functions as the transfer agent for some of Walkers own deals (Harvard Scientific, Diabetex Int. Corp.), as well as a long list of penny stocks, which include:
Jaguar Gaming Corp. (Pink Sheets-JAGG) $0.005 Platform International (Pink Sheets-PLFM) $.10 Starfest Inc. (OTCBB-SFST) $0.095 Bio Pulse Int. (OTCBB-BIOP) $0.51 Forefront Inc. (OTCBB-FOFR) $0.07 Internet Infinity Inc. (OTCBB-ITNF) $0.13
On December 19, 2000(http://www.sulphco.com/news1219002.htm ) SLPH announced the selection of Cerg, Inc. Marketing and Relations, of Salt Lake City, to assist in communications. Eleanor Muth was listed as one of the CERG representatives. A search of public records identified additional clients of CERG include: Wyndham Hotel, Nevada Agency & Trust, Harvard Scientific, Precious Metals Inc., Taki Casuals, Inc., Steve Regan Co., Club Axis and Utah Congressman Merrill Cook.
We have already seen Nevada Agency & Trust and Harvard Scientific in our discussion of Walker. But that shouldn't be a surprise, as the phone number listed for Cerg is in fact the law offices of Alexander Walker. Even stranger, the registered agent for Precious Metals Inc. is Ernest Muth, Eleanora's husband. And her son Steven Muth listed Precious Metals Inc. as his employing firm on a NASD report. This is the same Steve Muth who has been sanctioned by the NASDR (http://www.nadsr.com) a number of times, including regarding his involvement in the recent promotion of Creative Host Services (CHST) which mysteriously ran from $1 to $29 and all the way back down again. Once again, we see great experience in the penny stock promotion game. Some investors might question the need for that kind of skill in a legitimate technology company, but of course, SLPH insiders seem to have their own reasons.
THE OTHER COUPLE OF EMPLOYEES :
Gunnerman also brought to SulphCo many of the same family members and associates who worked with him on his other schemes. When you call SulphCo now, you are likely to talk to the same Erika Herrmann who is listed as the corporate Secretary of BioSolar. And Rudolfa's daughter, Kristana, is a large shareholder of SLPH, as well as being the VP of HR and a board member of Clean Fuels and also a co-defendant in the EECO Energy lawsuit. His son Peter is also a large shareholder of SLPH, a co-defendant in EECO and demonstrated the A-55 technology in a CNN interview. Even the Board of Directors carries over with Joe Sutton being on the board of Clean Fuels and SulphCo as well as a shareholder of SLPH. And don't forget Luigi Profumo, member of Clean Fuels Advisory Board and President of IPLOM, important SLPH press release subject.
SHOW ME THE MONEY !!!
Both Gunnerman and Walker have experience in making money on their investment schemes regardless of the success of their investors. For Walker, the key has been selling stock into whatever strength is available. And upon completion of the SulpCo/FWLD merger, he began to sell stock. From December 2000 through February 2001, he disposed of approximately 160,000 shares at prices as low as $1.87. A good indication that he knows when a stock has reached a good sell price...'(end Elgindy's Sulphco, Alexander Walker,Endovasc article)
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Below from unidentified Canadian penny securities article mentions Alexander Walker's Nevada Transfer Agency:
Nevada Agency and Trust Co.,Brek and Bank of Bermuda
Brek, which shifted its focus from electronic payment processing to oil and gas interests in July, 2001, has quite an international flavour. Its principal executive offices are located in Wanchai, Hong Kong, its lead securities lawyer is Roger Glenn, based in New York, and its current biggest shareholders are based in the secretive offshore enclaves of Liechtenstein, Bahamas, Bermuda and Hong Kong, as well as London. One of its directors even ran a clothing company in Panama a few years ago. Brek's transfer agent for its shares is Nevada Agency and Trust Co., based in Reno, while its transfer agent for its units is Bank of Bermuda, on aptly-named Front Street in Hamilton, Bermuda. (The stock is also listed on the offshore Bermuda Stock Exchange.)
Brek is a mere shadow of its former self. The stock, which peaked at $32.75 in February, 2000, now trades at 56 cents. (All figures are in U.S. dollars.) The timing of the raid is particularly unfortunate for Brek and its selling shareholders. In an unrelated coincidence, Brek was delisted from the Nasdaq marquee National Market System on Friday, the day after the raid, after failing to maintain a $1 bid price during a 90-day period ended Oct. 30. The company, interlisted on the Berlin exchange, hopes to move to the Nasdaq SmallCap Market.
Meanwhile, major shareholders, including various offshore accounts, hope to sell up to 8.02 million shares, according to a Sept. 18 registration statement. The biggest of these selling shareholders, is Rick Jeffs, who filed to sell 1,237,500 shares in his own name and an equal number held in the name of Wet Coast Management. The next biggest selling shareholder, with one million shares, is Liechtenstein Global Trust, which has entrusted disposal and voting powers to a chap or outfit called Furst Hans-Adam von Liechtenstein, care of LGT Group Foundation in Vaduz, an important international financial capital in the offshore world.
The company candidly notes that it got this information on Liechtenstein Global Trust from some bank in Switzerland, which it neglected to name in securities filings. 'Brek has no way of independently verifying the accuracy of this information and does not know whether this information is correct,' states one filing.
The other offshore sellers include Warwick Ventures Ltd., with 748,000 shares, Ultratech Capital Management, with 132,000 shares, and Happy Profit International Ltd., with 80,000 shares. The authorized sellers are Stuart Smith, care of LOM Securities Bermuda Ltd. in Hamilton, Bermuda, for Warwick, Patrick Thomson of Nassau, Bahamas, for Ultratech, and Brian Langdon-Pratt of Hong Kong for Happy Profit International.
The company's biggest shareholder, president Gregory Michael Pek of Hong Kong, filed to sell 400,000 of his 1.78 million shares. Oddly enough, one of Brek's biggest shareholders, and by far its most distinguished, is not on the list of selling shareholders. According to a September filing, Power Technology Investment Corp. held 1.33 million shares, including 333,000 warrants. Brek states that Power Technology is a 'wholly owned subsidiary' of Power Corp. of Canada, an established blue chip stock listed on the Toronto Stock Exchange.
In recent years, Brek has racked up an impressive amount of legal bills. It paid one law firm, which featured Brek director Ermanno Pascutto as a partner, $373,000 in calendar 2000, and a similar amount in 1999. Mr. Pascutto resigned as a Brek director in June, 2000, and entered into a direct consultancy agreement with the company at a modest $16,000 per month.(end of Canadian article mentioning Alexander Walker's The Nevada Agency and Trust Company's involvement with Brek Energy and its 'share-money laundering pump dump scheme.)
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Below was posted on message board of offshorebusiness because my 'Dear Jerusalem Post'letter,inquiring about the President of Israel's role in promoting Michael Zwebner's 'airwater machine', suposedly to be bought by both the Israeli military and the U.S. ARMY IN IRAQ as well was not posted as a leeter in the Jerusalem Post letters section.It includes two questionable prs put out by Mr.Zwebner with regard to the supposed Israeli miltary purchase of his Rube Golberg device and the U.S.Army in Iraq's purchases,that never occured.
Also an article from the 'London Sunday Mail' relating to Mr.Zwebner's questionable 'business practices in England before coming to America as well as his questionable ties to some mafia related figures and his propensity for death threats when things go wrong. Shortly after posting this on offshorebusiness.com it was picked up by google and I was able to get the link by googling 'dear' 'jerusalem' 'post', I guess because so few address the 'Jerusalem Post' in that way in their letters.Then it disappeared from the google landscape entirely.
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Dear Jerusalem Post,
By Tony Ryals on 7/19/2004 5:00:32 PM
E-mail: biodog0@yahoo.com
A little background on this letter is that Mr.Zwebner has been involved in unending legal intimidation of others particularly those who post criticisms of his business dealings on penny stock message boards.In the past week or so he has released a businesswire pr proclaiming a litigation involving, not just individual posters as in the past, but a $300 million claim against Lycos' Ragingbull !!! Mr.Zwebner,et.al.,is also intimidating the editor of ripoffreport.com
or 'badbusinessbureau',among others,with a civil rico ? court case as described by rb alias 'DeanDumont' below who has been an active supporter of Mr.Zwebner on the ragingbull's 'ucsy' board:
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By: DeanDumont
13 Jul 2004, 09:12 AM EDT
Msg. 43903 of 44228
(This msg. is a reply to 43892 by dpb555.)
Jump to msg. #
Legal Proceedings against Frank Torrelli, Roberto Villasenor, Michael Potter, Les Henderson, the Rosenberger Family and many other individuals & companies regarding their Internet activities and in particular their involvement with EZBC.com and transconscam.com.
Conspiracy and Racketeering (RICO) proceedings as well as claims for defamation and invasion of privacy are being issued by a company and a significant number of individuals against William Rosenberger, Jr., Madeline Rosenberger and the Estate of William Rosenberger, Sr., Frank Torrelli, Roberto Villasenor, Michael Potter and Les Henderson in a number of States including California, Florida and Kansas.
These proceedings are intended to seek damages for in intentional infliction of emotional distress, defamation, invasion of privacy, racketeering (RICO), conspiracy and other personal injury damages to the plaintiffs' reputations.
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To me Mr.Zwebner's activities in America represent what I have come to term 'share-money laundering'for lack of a better term.And of course,as with James Dale Davidson and too many penny stock manipulators and pump dumpers the shares are sold to American 'investors, apparently with cooperation of American brokers and 'market makers' such as Charles Schwab as one example,before the cash disappears offshore never to be seen again.
I find it appalling that Mr.Zwebner has stooped to using Israeli,and as an American even worse using American soldiers whose lives are on the line in Iraq, for the sake of pumping a penny stock to launder proceeds offshore.And not only the gall to lie about sales to U.S.Army in Iraq to defraud American investors in another pump dump scam but further to use a portion of those profits to litigate in American courts in hope of denying or abridging free speech to discuss what we feel are his frauds.For all anyone one knows this money, hidden by obscure share sales and dumping, could be used for political or physical terrorism.I'm not saying it is, only that it is difficult to track and I would have thought violated aspects of the 'Patriot Act'among other laws.
Tony Ryals
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Dear Jerusalem Post,
In searching for any mention of a Michael Zwebner and his company's business dealings (Universal Communications Systems Inc.) in Israel I came across a series of articles by a person of that name writing on commodities or metals for the 'Jerusalem Post' as late as 1997.They then seem to have come to a halt,for whatever reason,as a search of his name on your internet sight will show.
I was most surprised that mention of his most recent project,an 'AirWater machine', supposedly to provide water for the Israeli military, did not appear in your reputable newspaper.Also no mention was made of a demonstration that supposedly took place at the 'AQUA Israel 2004' exhibition.Nor was there any mention of his company's meeting with Israeli President Moshe Katzov, who was quite flattering of Mr.Zwebner's product, according to a BUSINESS WIRE PR put out by Mr.Zwebner's company, located in Florida and incorporated in Nevada,I believe.
Another of Mr.Zwebner's BUSINESSWIRE press releases further claims the U.S.army in Iraq has made 'an order to supply and ship a number of AirWater machines to the Gulf for immediate delivery to the US Army/Coalition Forces.'Another article from Australia interviewing Mr.Zwebner claimed the order was completed and the AirWater machines of the company are now operating in Iraq.
There are some posting messages on www.ragingbull.com's 'ucsy',or Universal Communication System Inc., message board that are less than flattering.Some people believe the sole purpose of the press releases has been what is termed a 'pump and dump' of a penny stock. Further another website that is a host of consumer complaints hints that President Moshe Katzov actually received remuneration for helping Mr.Zwebner tout or promote this stock whose shares were then dumped on U.S. or other investors as it was touted in fraudulent prs by the company.
I have no opinion on this except to say that Mr.Katzov's reputation is not being helped by association with said company or Mr.Zwebner if it comes to light that no sales were made to the Israeli military or the U.S army as Mr.Zwebner has insinuated or claimed in his company's press releases.
Below you will find examples of press releases.I would also appeciate it if you can verify that this person is the same as the Michael Zwebner who wrote for the Jerusalem Post in the past.
Sincerely,
Tony Ryals
biodog0@yahoo.com
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Two examples of UCSY'S Questionable PRs:
Zwebner using Israeli President as he did erroneous sales to Israeli Army to tout and dump shares on duped Americans and others:
Universal Communication Systems Inc. Subsidiary AirWater Corporation Receives Presidential Endorsement of Its Products
Wednesday March 17,9:51 am ET
President of Israel, Mr. Moshe Katzav Visits the Company''s Display Booth at the 'Aqua Israel 2004' Exhibition Held in Tel Aviv, Israel; AirWater Corp. is Recipient of 2 Event Awards
TEL AVIV, Israel--(BUSINESS WIRE)--March 17, 2004-- Universal Communication Systems Inc. subsidiary AirWater Corporation company president Michael Zwebner revealed and announced today that the President of Israel, Mr. Moshe Katzav, visited the company''s display booth at the recently concluded 'AQUA Israel 2004' 2 day exhibition, recently held at Tel Aviv, Israel. Tasting the water made from the company''s unique AW 120 Air to Water machine, he commented: 'This water tastes very good, it is excellent and this is a great product.' Later in the day, Israel''s Minister of Agriculture Mr. Katz, also visited the company''s display, and after being given a complete explanation of the company''s products and tasting the water produced on the spot, he too highly commended and endorsed the AirWater Machines, and the water created from the air.
The annual event held on the 10th and 11th of March, featured many of Israel''s most prominent companies operating in the field of water production, filtration, irrigation and purification. AirWater Corporation won 2 awards at the exhibition, one for the 'best display booth and products' and the second for the 'most visited company' at the exhibition. According to the event organizers, more than 10,000 people visited the show.
Pictures of the company''s booth as well as other related photographs of visitors are published on the company''s web site http://www.ucsy.com or at the web address of http://www.airwatercorp.com.
About Universal Communication Systems Inc.
For further detailed information, visit our web address: http://www.ucsy.com
About Millennium Electric TOU Inc.
For more information, visit the company''s web address at: http://www.millennium-electric-inc.com
About AirWater Corporation
For further information, visit our web address: http://www.Airwatercorp.com
Safe Harbor:
Caution Concerning Forward-Looking Statements by Universal Communication Systems, Inc.
This document includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management''s current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors, and factors affecting the integration of the businesses of Universal Communication Systems, Inc. More detailed information about these factors may be found in filings by Universal Communication Systems, Inc. with the Securities and Exchange Commission, including their most recent annual reports on Form 10-KSB and quarterly reports on Form 10-QSB. Universal Communication Systems, Inc. is under no obligation to, and expressly disclaim any such obligation to, update or alter their forward-looking statements, whether as a result of new information, future events, or otherwise.
Contact:
Universal Communication Systems, Inc., Miami
Rolando Sablon, 305/672-6344
Company web address: http://www.ucsy.com
For further information email us at: info@ucsy.com
Universal Communication Systems, Inc. Secures First Order for AirWater Machines for Immediate Delivery to US Army/Coalition Forces in Iraq
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Below,Michael Zwebner Touting Penny Stock Fraud on the Graves OF AMERICAN SOLDIERS:
US Army Officials to Evaluate Machines for 'Viability for Immediate Service in the Iraq Arena'
MIAMI, July 3 /PRNewswire-FirstCall/ --
Universal Communication Systems, Inc.(BULLETIN BOARD: USCY) subsidiary AirWater Corporation chairman Michael J. Zwebner announced today that the company has received an order to supply and ship a number of AirWater machines to the Gulf for immediate delivery to the US Army/Coalition Forces. (The company is withholding the number of machines to be shipped for the time being).
In a short, but important, statement, Michael Zwebner, said: 'We have worked long and hard with our marketing partners, and have achieved amazing results in a very short time. This breakthrough in receiving a request and order for these first machines for the US Army/Coalition forces in Iraq is a credit to the salesmanship and tenacity of our agents and representatives in the field. We are informed that after the authorities have received these first machines for testing purposes, and have had the opportunity to evaluate them, and see their viability for service and deployment in the Iraq arena, substantial orders for the product(s) will follow.'
AirWater experts, engineers and technicians have developed a unique sized Air to Water machine specifically designed for the military. It is capable of high water production by way of extracting from air in huge quantities. All the water is then filtered and purified. Then, water becomes drinkable and potable.
In addition, these large-sized AirWater Machines can be truck and/or trailer-mounted. This allows it to easily be transported to any destination all over the world for fast and immediate deployment in the case of war and/or other needs and/or emergencies.
In a further statement, Michael J. Zwebner stated that the company has placed an order with a manufacturer for a uniquely sized AirWater machine that will produce between 1,000 and 5,000 gallons daily of pure, clean drinking water from the air! The machine will then place in a special location, and be used for public and commercial demonstration purposes. More details about this project will be announced in the near future.
About Universal Communication Systems, Inc.
For more information on the company, please visit the company's official web site at: http://www.ucsy.com/ About AirWater Corporation
For more information on the company, please visit the company's official web site at: http://www.airwatercorp.com/ Safe Harbor: Caution Concerning Forward-Looking Statements by Universal Communication Systems, Inc.
This document includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors, and factors affecting the integration of the businesses of Universal Communication Systems, Inc. More detailed information about these factors may be found in filings by Universal Communication Systems, Inc. with the Securities and Exchange Commission, including their most recent annual reports on Form 10-KSB and quarterly reports on Form 10-QSB. Universal Communication Systems, Inc. is under no obligation to, and expressly disclaim any such obligation to, update or alter their forward-looking statements, whether as a result of new information, future events, or otherwise.
Contact: Rolando Sablon. Information Officer at:
Universal Communication Systems, Inc. Tel: (305) 672-6344
Company web address:
http://www.ucsy.com/ For further information email us at: info@ucsy.com CONTACT: Rolando Sablon, Information Officer, Universal Communication
Systems, Inc., +1-305-672-6344, or info@ucsy.com Web site: http://www.ucsy.com/
Copyright 2003 PRNewswire
Issued: 07/03/2003 01:14 PM GMT
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From London Sunday Mail circa 1996:
BOSS IN £15M DEAL MADE THREATS TO RIVALS
Mafia link of the bankrupt about to make millions from Lottery deal.
Michael Zwebner, founder of Cardcall (UK) won a contract to distribute five million National Lottery branded phone cards, Camelot's biggest marketing deal to date.
Astonishingly, Camelot revealed it knew he was an un-discharged bankrupt and said this was 'no reason to rule out doing business with and individual.' But last night Camelot said it would launch an investigation and asked The Mail on Sunday for a full dossier of evidence about Mr. Zwebner's business affairs.
The disclosures follow rows over excessive profits and directors bonuses at Camelot. Zwebner, 44, has massive debts on both sides of the Atlantic and has been accused of threatening business rivals with violence.
His former girlfriend Gia, who died from a Cocaine overdose following a row with him, was the daughter of John 'Sonny' Franzese a former boss of the Colombo crime family. Her brother Michael, often called the 'Yuppie Don' has admitted being behind tax fraud, loan sharking, illegal gambling, racketeering and extortion as a leading member of the mob.
Zwebner's UK company Cardcall buys telephone time from British Telecom, Mercury and other line operators and then sells phonecards through Lottery outlets. The disabled British born businessman, a polio victim, fled Britain 6 years ago leaving his wife behind after the collapse of his Land Development Corporation with debts between £600,000 and £1.5 million. The firm was behind a scheme to build a £18 million golden city outside Oldham including offices, hotel and conference center and creating 2,000 jobs.
Zwebner moved to Miami with Gia, who was pregnant. In his absence the company was struck off and Zwebner made personally bankrupt. He now claims he has repaid his creditors and is seeking to have his bankruptcy annulled, but according to Insolvency service records he is a current bankrupt with
personal debts of £48,000. The record prevents Zwebner from running a company in the UK and he claims to be only a paid employee of Cardcall (UK). But Zwebner controls the British Company - in breach of company law - as the only named director of its American parent from Cardcall International Holdings of Delaware.
In Miami, Zwebner established several businesses including the GiaMic Corporation - the names based on his and his girlfriends' Christian names. But in October 1990, while he was on a business trip to Israel, Gia checked into a motel and took an overdose of Cocaine.
Near to her body police found a fax from Zwebner professing his love and repeating a request that she convert from Catholicism to Orthodox Judaism - the subject of a heated telephone row between them the night before. Homicide police concluded her heath was an accident.
Following Gia's death, Zwebner moved to New York where with his brother Charles, also a director of the British operation, he opened two companies selling pre-paid phonecards similar to those in the Camelot deal. The firms failed to pay rent for luxury offices in the World Trade Center and the landlord began court proceedings to recover $127,000 (£75,000).
Zwebner's firms owe more than £150,000 to telephone companies in unpaid court judgments from AT&T, Sprint Communications and Allnet. They also owe £112,500 to the printers of US phonecards and almost £6,000 in New York State taxes. Plunged into debt, Zwebner's business dealings became bitter and sometimes sinister.
Late in 1993, a New York Court issued a permanent
injunction against him after hearing evidence of threats against a lawyer acting for a rival firm. In Court Zwebner was accused of phoning James McGovern's house and telling his wife he wanted to send people there and that she should 'obtain personal security because you will need personal security very soon.'
Zwebner also began circulating letters to clients accusing his rivals of corruption and criminal activities. Facing Court actions and mounting debts he closed down his New
York companies moving back to Britain. His brother Charles established Cardcaller Canada, Inc., in Toronto, which also faces huge debts.
Meanwhile the British operation is struggling. Despite a distribution contract with W.H. Smith, Cardcall made a loss of more than £600,000 last year. At his flat in Golders Green Zwebner said, 'I told Camelot I was a bankrupt and made full disclosures of my business history.' He claims his business problems in America were part of a dispute with another company, which he says did not honor a deal.
'The threats I made were not real. You must understand I was the victim of a bad business deal. My remarks and letters were made in the heat of the moment and I never sent people round to anyone's house.' He added, 'None of these things has anything to do with my relationship with Gia Franzese or her family. I have met Gia's family including her brother Michael, but they had nothing to do with my business now or in the past.'
Camelot said, 'We are grateful to The Mail on Sunday for drawing to our attention these allegations which we were not aware of. We will now carry out a thorough investigation or our own to determine if any contracts need to be reassessed.' (end The Mail on Sunday Zwebner and the mafia article)
Submitted: 10/7/2004 8:42:26 PM
Modified: 10/8/2004 1:32:43 AMTony
Antigua, Central AmericaGuatemala
Judge Ken Reilly Lies ,James Davidson Denies: Securities and Political Fraud
re Penny Pump Dumps:
By tony ryals on 7/23/2004 1:28:43 AM
E-mail: biodog0@yahoo.com
This is a list of entities and individuals the penny fraud company Endovasc claims damaged them through 'death spiral' financing.Well I have my doubts they damaged that fraudulent management,that even screamed 'naked shorting' along with James Dale Davidson, to cover up their own dumping.However I do believe these individuals,in cooperation with evsc 'management' and others they don't mention for some reason,such as Davidson himself and Belladorgroup of Kuala Lumpur for instance, did defraud investors but with Endovasc 'management's help.
That said,I also believe they must ultimately go through
a U.S. market maker,a la LOM's U.S. brokerage accounts, to dump or sale their shares to U.S. suckers such as myself.So in light of recent exposure of LOM's accounts with Charles Schwab etc.,is there a way to unmask where these individuals and entities are dumping their debentures, preferred shares, or whatever in and on the U.S. MARKET ?
Does anyone know where any of these individuals or entities dump their penny shares from ? That jerk that just posted don't appreciate how humble I am and am willing to be to search for answers nor in my opinion how sincere and patient so many here have been re my queries.He can laugh at me all he wants I'm still gonna ask questions.
J.P. Turner & Co., LLC; CCM Group, LLC; LH Financial Services Corp.; Laurus Master Fund, Ltd.; Laurus Capital Management, LLC; Keshet Fund, L.P.; Keshet, L.P., Keshet Management, Inc.; Talbiya B. Investment Ltd.; Nesher, Ltd.; Alon Enterprises Ltd.; Balmore Fund S.A.; Libra Finance S.A.; Celeste Trust Reg.; Patrick Power; Arie Rabinowitz; Abraham Grin; David Grin; Eugene Grin; John Clarke; Thomas Hackl; Francois Morax; Gisela Kindle; Matityahu Kaniel; Seymour Braun; and Shmuel Lmakias
...........................................................
This brings to mind an article by Carol Remond of DOWJONES, WHOSE ARTICLES POSTED ON THE INTERNET HAVE ALSO GONE MISSING FROM GOOGLE SEARCHES.The more recent article of note is from June of this year which I posted above.However Endovasc insiders,(who seem to post on ragingbull in spite of SEC prohibitions against promoting as an insider on message boards),have pointed out that the original Carol Remond DJ article about 'Endovasc and Its Friends In High Places' of late 2002 has also gone missing from a google search.This was an article that James Dale Davidson detested and denounced in his 'Vantage Point' 'pumpzine' or' toutzine',among other places.
The pump and dump from the Charles Schwab account was filled by Endovasc insiders even before the fraudulent reverse split of July 2002 was even supposed to occur !!!SCHWAB WON'T SAY, ALTHOUGH THEY KNOW WHO DEFRAUDED ME. ,(WAS IT THE SCHWAB - 'LOM' ACCOUNT REFERED TO AS A 'SELECT CLIENT' BY SCHWAB BUT UNIDENTIFIED AND FILLED WITH PERHAPS MILLIONS OF Endovasc SHARES in May 2002,THAT THE SEC IS NOW INVESTIGATING FOR pump dumping 'HIET' AND SHEP OR 'STLOF' and Sedona SHARES FROM ?),
And did that account dump Endovasc shares in November 2002 while Davidson was touting it with lies such as his having sold Endovasc a patent? : ...............................................................
IN THE MONEY: Endovasc And Its Friends In High Places
By CAROL S. REMOND
A Dow Jones Newswires Column
NEW YORK -- When you're a little guy, you often gain credibility when you hang around with the big boys.
Such is the case with Endovasc Ltd. Inc. (ENVC), a tiny development-stage Texas biotechnology company that recently trumpeted its relationship with a Fortune 500 company, an international drug maker and an Ivy League college.
But as it turns out, those relationships aren't exactly as the company describes them.
And when it comes to things that aren't exactly what they look like, investors may also want to check out a recent appointment to Endovasc's audit committee, which was retracted late Tuesday.
Last summer, the company said it would name independent members to its audit committee. But one of the people it named to the committee is a newsletter publisher who has been recommending the purchase of Endovasc's shares. Oh, he owns the stock, too. Independent?
To be sure, investors should have at their fingertips plenty of information that tells them to proceed with caution when it comes to Endovasc's stock. For starters, the company's auditors have issued going concern statements. It did a reverse 40-for-1 stock split to boost its share price. Even at that, the stock trades today around $1.76 a share.
Endovasc's latest quarterly filing with the Securities and Exchange Commission on Nov. 19 shows that the company had a meager $19,000 in cash and short-term investments at the end of September while it burned through $42,000 in the third quarter alone. The company is testing two drugs not yet approved for marketing by the Food and Drug Administration. So far, it accumulated $12 million in deficits since its inception in 1996.
Which is why partnerships with big name institutions become important to companies looking to make that big breakthrough.
Endovasc's stock rose to more than $3 from $2 a share earlier this month after the company announced it teamed up with Philip Morris to finance a study of one of its drugs, Angiogenix.
But Philip Morris (MO) sees it differently. A spokesman for the food and tobacco giant said the agreement is for one of the many research grants it gives out to support studies on the health effects of tobacco. The spokesman said the grant isn't, as Endovasc described in a Nov. 6 press release, a specific agreement to study 'the potential for broad practical use of Endovasc's nicotine-based heart treatment, Angiogenix'.
But you can't really blame Endovasc for its enthusiasm about the renewal of a one-year grant first secured in March 2001. Endovasc's annual report shows that the $512,000 granted last year, out of a total $700,000 award, represented 77% of the company's sales for the fiscal year ended June 31, 2002. In the third quarter, 46% of the company's revenues came from the renewal of the Philip Morris grant.
Columbia University also takes issue with Endovasc's press releases when it comes to the results of a study of Angiogenix conducted by one of its researchers.
'We have some concerns about the way they interpreted the results of the study,' said Glenn Peterson, associate vice president of communications at Columbia University's Heath Sciences Division. Peterson said Columbia first asked Endovasc to correct a press release about the results of the Angiogenix study in late July. Now, Columbia is asking for a retraction of comments made in releases issued Oct. 28 and Nov. 6.
'Columbia demands that Endovasc immediately issues a press release retracting in full its prior press releases regarding the erroneous characterization and description of Columbia's research and issue a clean statement which actually sets forth the preliminary nature of such research,' Peterson said.
Endovasc may have been a little overzealous earlier this month when it said it terminated discussions with major drug company GlaxoSmithKline PLC (GSK). A spokeswoman for Glaxo said Endovasc and Glaxo spoke very briefly. 'We get calls from thousands of individuals and companies with products they feel are worthy of development. In the end we do very few deals,' she said.
Endovasc's chairman and chief executive David Summers said that the company's media representatives 'got ahead of us on some of the press releases.' Commenting on the Philip Morris release, Summers acknowledged 'that the press release should have been worded better.' He said Endovasc and its lawyers are working to find a statement acceptable to both Endovasc and Columbia.
Summers said Endovasc was contacted by Glaxo. 'They contacted us through an individual (Reuben Bakst) that said he represented Glaxo,' he said. Summers said he sent information to Glaxo about his company's stem-cell research, at Glaxo's request, and got a reply saying that Glaxo wasn't interested. 'We decided to terminate any further discussion with them,' Summers said.
As it turns out Endovasc isn't alone in aggressively marketing the potential of the company. James Dale Davidson , one of the company's newest board members, has taken a liking to Endovasc and promotes the company's stock in the October and November issues of the Vantage Point Investment Advisory. In his November newsletter, Davidson praises Endovasc's achievements and reiterates his 'optimism that Endovasc could multiply in value many times over.'
Davidson , who is the founder of Baltimore-based newsletter group Agora Publishing, first told his readers in October that he strongly recommended Endovasc 'because I am impressed with the creativity and intelligence of its resident genius Dr. Summers.'
Davidson also tells the 9,000 subscribers of Vantage Point that he has a significant personal holding of Endovasc stock, although he doesn't say how much, and serves on a committee of the company's board.
It's hard to tell what 'significant' means when it comes to Davidson's Endovasc holdings because he hasn't filed any filings with the SEC about his holding of the company's stock.
Summers said he didn't know that Davidson was a significant shareholder when he appointed him. Summers, who said that he was aware that Davidson mentioned Endovasc in his newsletters, said that 'If there is a conflict of interest, I'll remove him from the board.'
(After inquiries about Davidson's role with the company earlier this week, his appointment was rescinded by the board. That disclosure was made in an SEC filing late Nov. 19)
By the way Davidson leaves an interesting point out of his glowing endorsement of Endovasc. Although Davidson proudly refers to him as 'Dr. Summers' in his newsletters, Davidson doesn't tell his subscribers that the Endovasc chief officer got his doctorate degree on the Internet from Kennedy-Western University, a non-accredited university licensed to operate in the state of Wyoming.
Summers said Kennedy-Western was accredited in the state of Idaho when he got his degree in 1982. 'It wasn't Harvard or Princeton but I learned a lot. I never made any representation other than I got a Ph.d. from Kennedy-Western,' the chief officer said.
Meanwhile, the company has been doing battle with short sellers. Following an attempt two years ago to use highly dilutive financing, Endovasc is currently embroiled in a lawsuit with short sellers. The company accuses former investors of making illegal profits by forcing Endovasc to convert preferred stock into common shares, which were then used to cover short positions, according to a suit filed in September in the U.S. District Court for the Southern District of New York.
Endovasc hired Atlanta-based financial firm J.P. Turner & Co. LLC back in 2000 to facilitate the placement of $4.5 million in convertible preferred stock along with a $15 million equity line of credit.
An attorney for Balmore Funds SA and Celeste Trust Reg, two defendants in Endovasc's suit, said that there is nothing in the agreement between his clients and Endovasc that precluded the two funds from shorting the company's stock.
In a related but separate action brought in the same court, a judge recently ruled in favor of Balmore and Celeste which were suing Endovasc for failing to deliver on requests for conversion. The judge ordered Endovasc to issue 203,314 shares to the funds for failing to previously deliver on conversion notices and to pay the funds' legal bills.
- by Carol S. Remond; Dow Jones News; 201 938 2074; carol.remond @ dowjones . com
Updated November 20, 2002 3:31 p.m. EST
................................................................
And for some reason,although I am the first to say there are some good and decent people at the SEC,they are over stretched and under budgeted.There seems to be no political will to do anything about it.It may,and probably has,supported political and physical terrorism. I believe software alone,(tracking the comings and goings of psy-ops and psyber-fraud artists such as James Dale Davidson on penny company boards and as 'consultants',while these companies all go bankrupt and their share price disappears as he and his ilk parasitise them and dump their stocks on to naive investors such as myself),could bring them quickly to justice and prevent the theft and laundering of untold millions if not billions of dollars offshore where they can hide and avoid taxes on their theft and fraud.
As an example of the dark side of the SEC,Alexander Walker was a lawyer for this securities watchdog in the 1950's and went on to perhaps run the most corrupt stock transfer agenies in the history of penny stock pump dump fraud.Did the SEC form his criminal mind or did this ethical vaccuum perhaps begin much earlier in life ?
And conflicts exist at the highest levels.Take even the present SEC Chairman William Donaldon and his company Donaldson, Lufkin,Jenrette as one example of conflict.You do your own due dilligence and google search on that one.And the person he replaced Harvey Pitt had his conflict as a former attorney for Arthur Anderson the accounting firm that self-destructed due to its role in the cover-up of Enron's shady finances.And on and on.
I do take exception with the lack of concern of the SEC as it exists at present to make a serious effort in asset recovery from the swindlers in penny stock who seem to operate with impunity and on an international scale albeit with the help of American 'management' who run the penny fraud scams and with American brokers etc. who seem to be in collusion as my Charles Schwab experience seems to bear out.
And while I began this topic with the inference Schwab et.al.through their market making activities appear to aid and abet an international penny stock and money laundering mafia the truth appears worse.Ollie Noth and Adnan Khashoggi have been mentioned here and both have had inmvolvemrnt with penny stock scams as well as money laundering to finance some of their activities,including the training of Nicaraguan as well as Afghan terrorists,or 'freedom fighters'.My nemesis, James Dale Davidson seems to enjoy the rumor the he is CIA.I really can't say except to conclude that if he were it would beg the question of why the CIA chose to or wanted to destabilise the Clinton administration.Regardless,the SEC should do all it can to expose his securities frauds rather than let them continue,and make him and those like him reimburse those who they have defrauded. 'Businessweek' devoted a whole series of articles to the Mafia On Wall Street ' in the 1990's.No doubt the mafia is no a socialist or left wing organization and perhaps governments are the largest organized crime organizations in their own right.Yet it begs the question as to why so little press is devoted to stock share and money laundering for the puropose of political (a la Davidson's smear of Clinton with unfounded murder accusations) or the training of those Afghan fighters with money from Ollie North's Stanford Technologies Overseas, Ltd.when it was in operation.
However as the SEC was taking comments regarding shorting and 'naked shorting' of stocks this became my statement to the SEC regarding the use of the 'naked shorting scam' of about 100 questionable penny stock 'companies' that claimed they were being 'naked shorted' by market makers such a Schwab Capital,Refco,Ameritrade,VFinance,and any number of 'market makers' who buy and sell penny stocks.(Naked shorting is the sale of shares to investors that don't exist,when supply exceeds demand.In most cases this will be covered by market makers later by purchases from other market makers or investors or company insiders selling into the demand.In the case of many penny stocks,where it might occur, insiders are themselves willingly and greedily dumping shares they tout or promote faster than any 'naked shorting' could possibly occur.) And 'market makers' such as Schwab or Ameritrade etc., and a myriad of lesser known market makers working directly with the insider dumpers are in special relationships with them and even provide accounts to fill with a large percentage of all existing shares,and thus work against their own 'regular' who buy shares from them on the 'open market'.(I know because this was Charles Schwab's conflict of interest with me in relation to Endovasc who they were a major market maker for,if not the largest.)
The SEC has done a poor job of explaining the angles to the frauds such as the 'reverse split' scam and making companies divulge the float or shares in circulation to be bought and sold.For this reason Endovasc bribed Alexander Walker the 'transfer agent' with at least $200,000 in 'free' insider shares to not reveal the float as the fraudulent 'managent' of Endovasc claimed they were being 'naked shorted'.The SEC so far has allowed Endovasc 'management' to get away with this multimillion dollar fraud in my estimate. This in light of the letter below from David P Summers admitting the fraudulent share operation at least in regards to their operation with Belladorgroup boiler room out of Kuala Lumpur of all places.The SEC knows this and doesn't act !!!
............................................................
From: Tony Ryals [tryals@angelfire.com]
Sent: December 16, 2003
To: rule-comments@sec.gov
Subject: File No. S7-23-03
Dear SEC,
I AM WRITING RE THE 'SHO'OR NAKED SHORTING ISSUE.BUT MORE SO I AM WRITING TO DOCUMENT THE FRAUD OF NAANSS AND JAMES DALE DAVIDSON TO USE THE NAKED SHORT SCARE TO DEFRAUD INVESTORS TO HOLD LONG WHILE THEY DUMP OFFSHORE ONSHORE DEBENTURES AND 'PREFERRED SHARES' THEY GET FROM THEIR 'SPECIAL' RELATIONS WITH CORRUPT PENNY STOCK 'MANAGEMENT'.I REALLY HAVE NOTHING AGAINST SHORTING AS LONG AS SHARES EXIST FOR THAT PURPOSE ON MARKET BUT NOT SHARES THAT DON'T EXIST.HOWEVER I BELIEVE THIS IS MORE PREVELANT IN BULL MARKETS.RECENTLY THERE HAS BEEN MUCH SAID ABOUT STOPPING NAKED SHORTING AND I BELIEVE THE PRINCIPALS IN THIS ARE DEBENTURE AND PREFERRED SHARE RECIPIENTS IN PENNY STOCKS WORKING WITH CORRUPT PENNY STOCK MANAGEMENT.ENDOVASC IS A PRIME EXAMPLE OF THIS AND THEY WORK WITH JAMES DALE DAVIDSON AND HIS STOP NAKED SHORTING,'NAANSS' SCAM.
UNFORTUNATELY EVEN 'FAMED TRIAL LAWYER O'QUINN' HAS BEEN TAKEN IN OR IS WORKING HAND IN HAND IN THE DECECPTION OF NAIVE 'INVESTORS'SUCH AS MYSELF WHO HAVE LOST VIRTUALLY EVERYTHING IN THE FRAUD.
YES 'NAANS' IS A FRONT FOR DEBENTURE DUMPERS AND 'MMS'SUCH AS SCHWAB CAPITAL KNOW THIS.SCHWAB HAS THREATENED ME WITH THEIR LAWYERS THOUGH THEY HAVE STOLEN EVERYTHING ALREADY WITH THE PIGS THEY PUMPED AND TOOK TO MARKET THAT FELL TO PENNYS.YES I WAS DALING IN PENNY STOCKS WITHIN LESS THAN A YEAR OF BUYING THE FIRST STOCK IN MY LIFE!! AND ALL THOSE $30 OR SO 'TECH' STOCKS SAID 'STRONG BUY'. I KNEW NOTHING.
SO THEY BROKE REG 15 G I THINK IT IS ON MY HEAD.
ANYWAY BELOW IS WHAT I AM WRITING IN RETROSPECT,TOO LATE FOR ME I'M AFRAID,BUT IT SHOULDN'T BE.THEY SHOULD RETURN MY $200,000 +.
I AM NOW WRITING ABOUT THE 'NAKED SHORT SCAM' OF DAVIDSON ET.AL.TO POST ON RIPOFFREPORT.COM AS YOU CAN READ BELOW.
SINCERELY,
TONY RYALS
-------------------
On Tue, 16 Dec 2003 14:46:28
Tony Ryals wrote:
Dear Attorney O'Quinn,
I think you should consider the possibility that Summers and Cantrell of Endovasc have used your name for fraud just as they did that of cardiologist Antonio Colombo in 2001 when they conned me into buying over half million shares.(Since then, fraudulantly reverse split to give to a myriad of 'insiders' I never knew existed,such as James Dale Davidson, offshore debenture dumper etraordinaire, who claimed Bill Clinton killed his employee,former CIA Chief Colby.Even the 'transfer agent'to the offshores himself,Alexander Walker,of Nevada Agency and Trust Co.,got in on the 'action'.Both of these characters received some, but not enough, SEC scrutiny.
Below you will see the beginning of my article-complaint re this subject.You will recall that Mr.Summers used your name in his businesswire pr of last year claiming you had discovered an 'oversold position'of more than one million shares from my 'broker'Schwab and thus I should buy a 'cert' quickly from his transfer agent Walker,who was an EVSC,'INSIDER'AS IT TURNED OUT. MMS may at times naked short but you nor Summers provided any proof and Summers further defrauded me using your good name and reputation.I am beginning to understand what I term the 'naked short scam'of James Dale Davidson all too well.Of the millions or billions you liken naked shorting to,much is now being lost to make naive 'investors go long. They are defrauded by the 'insiders' themselves,such as Davidson.Whole websites are being run by debenture and 'preferred share' dumpers to convince defrauded investors they are being taken by by market makers when it is the likes of James Dale Davidson and an off shore pump dump scam.
I am sad to see you and your reputation be used in this manner.The use of your name by Summers while he and insiders dumped untold shares is what defrauded me.Maybe you should consider representing those who were defrauded rather than those doing the defrauding.
Sincerely,
Tony Ryals
...........................................................
James Dale Davidson chief promoter,inventor of 'stop naked short scam' cyberfraud Blaine,Washington www.investorcomm.com/company.htm
-------------------
Company James Dale Davidson
Address:
Bermuda ? Alexandria,Virginia ? New Zealand ?
Internet
U.S.A.
Phone: 866-872-0077
Fax:
-------------------
James Dale Davidson is the man who started the stop naked shorting scam 'ICI-NAANSS' to camouflage his own debenture and preferred share dumping.
Though supposedly separate entities,ICI ,or Investor Communications International, receives or purchases dirt cheap shares of penny stock from companies they do public relations for,which is to say they pump stock they dump on the market and on unsuspecting 'investors'.'NAANSS' on the other hand is the acronym for 'National Association Against Naked Short Selling'.
Logically one would conclude these two entities would be juxtaposed against one another and that any organization set up to stop 'market makers'or brokers from dumping unaccounted for shares into the market to destroy or collapse share price value(i.e.NAANSS) would also oppose the dumping of artificially cheap shares issued by management to stock pumpers(i.e.ICI). But strangely enough as 'our-street.com and Businessweek's Weise have pointed out these to entities share the same office space and the same telephone in Blaine,Washington !!
...........................................................
Gary Weiss's Businesweek article of December 8,2003 article that reveals the telephone-office connection of NAANSS and ICI , which is not proudly touted by these offshore-onshore debenture dumping touts,is quoted below:
'There's no doubt that shorts often drive down the prices of thinly traded stocks. The problem is that such stocks often became tempting to shorts only because they are richly priced as a result of manipulation. A good example of that took place in the mid-1990s, when several microcap brokerage firms, including Hanover Sterling & Co., collapsed after shares they had promoted to sky-high levels were attacked by aggressive shorts. Hanover brokers and managers were subsequently imprisoned for stock fraud.
'Shorts argue that if naked-shorting had not taken place during the microcap crime wave of the 1990s, such stocks would have climbed even higher before they crashed. In the past, the SEC was loath to act against naked shorting, but it now has succumbed to organized pressure -- including a letter-writing campaign encouraged by more than 100 microcap companies, organized as the National Assn. Against Naked Short-Selling (NAANSS).
'The arguments used by the organized opponents of naked shorting, lamenting the supposed depredations of short-sellers, are so repetitious that the SEC has categorized their comment letters -- which are piling up at the agency -- as 'Letter Types A, B, C and D.'
So who is behind this campaign? Calls to the NAANSS were answered at a firm called Investor Communications International, whose clients include companies attacked by shorts. Their anger is understandable. The market is a ruthless place, but it's supposed to be. The SEC should let it work -- and not cave in to this campaign to suppress the only force that can curb hype in the resurgent microcap market.' -Businessweek-
..........................................................
Personally,I believe the answer lies with keeping naked shorting,which has to do with shares that are not existent, illegal,on otcbb or penny stocks,as they are on any other market.Personally, as a victim of NAANSS FRAUD TO OBSCURE THEIR OFFSHORE DEBENTURE DUMPING AND MONEY LAUNDERING,THEY SHOULD BE ROUNDED UP AND PUT UNDER A JAIL TILL THEY CAN BE BROUGHT TO COURT.
The GAO has recently stated they have trouble tracking money used for terrorist activities.The ability of James Dale Davidson et.al.,founder in the 1960's of the 'National Taxpayers Union'not only defrauds Americans and others who invest in American 'securities'but drags his ill gotten gains offshore so as not to pay taxes on what he steals.
Several years ago a New Zealand group looking into Mr.Davidson's purchase of property in that country raised concerns not only with his shady securities dealings outside New Zealand but with an American business partners involvement with 'terrorist' activities in Africa.This was before 9/11 and had to do with supporting guerillas who his Louisiana friend felt were serving a noble cause. However the Al Quaeda also feel they are serving a noble cause.
Now,what are examples of a few of his recent penny stock pumps known off hand? ? EVSC OR Endovasc,where where he was snuck quietly onto and off of their audit committee.He pumped and promoted the stock through his pump publications. But there are no filings for what he dumped or shorted,and no one investigates.And there is the Canadian heart stent firm,'MIVT'. Genemax,of course,was his poster stock for how he and his insiders were being naked shorted by mms until the greed of himself and his associates led to heavy dumping on the real naive and defrauded investors led into his pump scheme.
............................................................
Below is the email response from Judge Ken Reilly of Endovasc Audit Committee,(if we are to believe SEC filings or just a lawyer for Endovasc if we believe his statement),denying he is a member of Endovasc audit committee long after the SEC filing that states his audit committee membership:
From: Reillytalk@aol.com Add to Address Book
Date: Wed, 9 Jun 2004 11:00:33 EDT
Subject: Responce
To: Biodog0@yahoo.com
Dear Mr. Ryals:
There has been a substantial amount of misinformation posted on Raging Bull and relating to EVSC. Perhaps this response will help you to know a bit more of the truth.
I have never been a member of the Endovasc Audit Committee or any other Audit Committee associated with this firm or its predecessors or affiliates.I have never received compensation of any form for service on any Audit Committee.
I am not now and never have been an Officer, Director or Employee of any of said firms.I do not know Mr. James Dale Davidson, have never met him or done any business with him.
I have no personal knowledge regarding Mr. Davidson association with any of said firms.I have occasionally provided Legal Counsel to Endovasc. I am unable to share any of that information with you as you are not my client.
It is regrettable that you have suffered a financial loss due to your investment in Endovasc;however, I am not a good source of any further information and request that you cease and desist in your contacts with me or published comments about me.
I have practiced my profession honorably for the past 43 years ( as you learned in your Bar Assn search). I intend to continue to abide by the Lawyers Cannon of Ethics.
I learned many years ago that practicing Attorneys often make good targets for their unlicensed opponent's criticism. However, the Law does provide adequate remedy for libelous assertions.Mr. Ryals, you seem like an intelligent fellow. Don't minimize your effectiveness by repeating gossip.
Respectfully yours,
Ken Reilly
.............................................................
Endovasc Announces Appointments to Audit and Compensation Committees
-------------------
216 of 397 DOCUMENTS
Copyright 2002 PR Newswire Association, Inc.
PR Newswire
August 23, 2002, Friday
SECTION: FINANCIAL NEWS
DISTRIBUTION: TO BUSINESS AND MEDICAL EDITORS
LENGTH: 928 words
HEADLINE: Endovasc Announces Appointments to Audit and Compensation Committees
DATELINE: MONTGOMERY, Texas, Aug. 23
BODY:
Endovasc Ltd., Inc. (OTC Bulletin Board: ENVC; Berlin: ED7) announced today four new appointments to its Audit and Compensation Committees, in accordance with the Sarbanes-Oxley Act of 2002.
'We are pleased to have these distinguished gentlemen join our board. Their vast experience and wisdom will be of great value to Endovasc. We will be able to utilize their expertise as we move forward in bringing our life-saving drugs and therapies to market,' said Dr. David P. Summers, Chief Executive Officer of Endovasc Ltd., Inc.
In addition to Mr. Rudiger Beuttenmuller, whose appointment was announced in June, the following have accepted appointments:
Kenneth F. Reilly, J.D.
Judge Reilly currently serves as Presiding Judge of the City of Montgomery, Texas and is an author and lecturer of national renown. He has previously served as an Attorney Advisor to the United States government, as a Legal Counsel to one of America's largest state legislatures, as President of an oil & gas exploration and development company, and as President of a public interest legal foundation dedicated to the preservation of the free enterprise system. Today, in addition to his judicial duties, Judge Reilly travels across America speaking on the subject and benefits of environmental regulatory compliance. He is a graduate of the University of Houston (B.S.) and the South Texas College of Law (J.D.), both with honors. Born and reared in Connecticut, Judge Reilly relocated to Texas after completion of service in the United States Air Force and currently resides in close proximity to the principal offices of the Company.
Kenneth Beverly, CPA
Mr. Beverly currently serves as Managing Partner at Newman & Company, PLLC. He received a BBA in Accounting from the University of Houston. Following two years active-duty service in the U.S. Army, he began his career in 1972 with Schulse, Hartwig & Co as a Certified Public Accountant. Six years later, he started Beverly, Hajovsky & Co., where he was Senior Partner. In 1988, he opened Kenneth Beverly & Associates, P.C., and in 2001, Beverly, Newman & Company, PLLC was formed. Mr. Beverly is a member of the Houston Chapter of CPAs, Texas Society of CPAs, and the American Institute of CPAs. He works primarily in the area of tax compliance and planning for closely held corporations.
James Dale Davidson, B.A., M.A. M. Litt. (Oxon)
Mr. Davidson is a private investor and analyst. He founded Agora, Inc. a worldwide publishing group with offices in Baltimore, London, Dublin, Paris, Bonn, Johannesburg, Melbourne and other cities. He also founded The Hulbert Financial Digest and Strategic Investment. In conjunction with Lord Rees-Mogg, co-editor of Strategic Investment and former editor of the Times of London, he co-authored a series of books on financial markets. Mr. Davidson also is a current or recent director of a number of companies, many of which he helped to found. They include GeneMax, MIV Therapeutics, BEVsystems, New Paradigm Capital (Bermuda), Anatolia Minerals Development Corporation, and Wharekauhau Holdings (New Zealand). In addition, Mr. Davidson is a director of Plasmar, S.A. (La Paz, Bolivia), Martinborough Winery Ltd. (New Zealand), and New World Premium Brands Ltd. (New Zealand). He is the editor of Vantage Point Investment Advisory, a private financial newsletter with a worldwide circulation.
Frank Bagrier, MBA
Mr. Bagrier currently serves as a Senior Portfolio Manager and Senior Vice President-Investments at UBS/PaineWebber. He began his career in 1965 with Public Service Electric & Gas Company. He subsequently served four years in the Air Force, and then completed his education with a BBA and an MBA from Southwest Texas State University in 1974. After one year as a financial analyst with Conoco, Mr. Bagrier joined Merrill Lynch in 1975, where he became a member of the Executive Club. He joined UBS/PaineWebber in 1980, and is a President's Club Member, and holds a Certified Financial Planner License. He provides financial and estate planning advice to individuals and institutional clients.
About Endovasc
Endovasc Ltd., Inc. is a biotechnology company focused in the area of cardiovascular disease, pioneering drug delivery technology designed to deliver and release drugs to their intended targets in an efficient and controlled manner. The Company's products and processes include: Liprostin(TM), ANGIOGENIX(TM) (Nicotine Receptor Agonist), PROStent(TM) stent-coating technology, and a biodegradable resorbable prosthesis.
The foregoing statements are made under the 'Safe Harbor' Private Securities Litigation Reform Act of 1995 and may contain forward-looking statements that involve risks and uncertainties that may not be evident at the time of this release. For more information about Endovasc, please visit www.endovasc.com . (Investor questions and requests for materials can be submitted online.)
To sign up for Endovasc shareholder alerts, please visit http://www.endovasc.com/html/e-list.html .
Contact Information: Investor Relations, Endovasc Ltd., Phone: +1-936-448-2222, Fax: +1-936-582-2250, InvestorRelations@endovasc.com.
MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X91504703
SOURCE Endovasc Ltd., Inc.
CONTACT: Investor Relations of Endovasc Ltd., +1-936-448-2222, or Fax, +1-936-582-2250, InvestorRelations@endovasc.com
...........................................................
Although most of these share holding insiders seem to originate from 'offshore,such as Bermuda or Bahamas,they must depend on onshore market makers such as Ameritrade, Schwab Capital,Etrade,and smaller 'market makers to do their dirty deeds and scam defraud and return their stolen profits back offshore to avoid taxes.
And they must have fraudulant or corrupt 'transfer agents' to issue stock shares in collusion with the corrupt penny stock executives they work with onshore.
'BEVI',or Bevsystems, and 'CPLY' WHERE Davidson has or had a mafia related partner according to a 'Businessweek' investigation,named Mr.Press.(Paradoxically,he accused former President Bill Clinton of mafia ties among other things as we shall see below.)
So why don't the 'market makers'such as Schwab Capital, Etrade, Ameritrade,et.al.,stop or litigate,with Mr.J.D. Davidson and his ilk for accusing them of naked shorting ? Perhaps because they have,in the past when supply of shares exceeded demand,or their own employees manipulated the market.Schwab actually threatened me with litigation for simply enquiring as to whether Endovasc and it's 'famed trail lawyer'O'Quinn's accusation of their naked shorting was true!!
Also because market makers make money off the frauds and 'pumps'purpetrated on the naive investing public.So James Dale Davidson and his ilk bring them 'good' business,much better than a common shareholder or account holder such as I would,by their fraudulant 'pumps'or promotions of penny stocks through the internet or mass mailings that should be prosecuted as wire fraud.
And his history stock pumps are much longer than that and not all limited to OTCBB or 'penny stock' market.
Below is from 'our-street.com'and mentions Mr.Press and the 'Businessweek' 'mafia on wall street'expose:
ChampionLyte Products, Inc. was a failed and about to go bankrupt company when controlling interest was acquired by a group of unknown investors led by two very well known players in the world of questionable stock transactions. James Dale Davidson, a high profile self styled venture capitalist and stock guru and Robert Press former president of the failed Finantra Capital. Davidson is well known as a result of his association as founder of Agora, Inc. and his various promotional newsletters. So popular is he that he has recently been mentioned in connection to an SEC action against Agora.
http://www.sec.gov/litigation/complaints/comp18090.htm We must admit, however that we are impressed with his bravado if nothing else. After realizing that his tactics were of interest to the SEC, Davidson not only publicly claimed that 'the SEC also lies. I know because the SEC field office in Utah has lied about me. And I suspect that these lies are the culmination of a carefully laid plan to discredit GeneMax and punish the company for raising troublesome issues about naked short selling, which has also embarrassed the SEC.' He came right back in a subsequent newsletter and recommended to his subscribers that they each purchase $1,000 worth of a number of stocks he was touting including BEVsystems. The trouble with this is that he failed to tell his readers that he was a Director of the company and had been dumping shares as early as a few months prior to his May newsletter. Davidson also failed to even disclose his ownership in ChampionLyte and if it hadn't been for an Our-Street.com inquiry to management of ChampionLyte, this fact may never have surfaced. Apparently Mr. Davidson didn't feel the need to file the 13D that is customary at times like this.
Of course, Mr. Davidson's involvement calls into question a certain transaction involving ChampionLyte. The supposed Cross Marketing or Joint Marketing agreement between ChampionLyte and BEVsystems in which BEVsystems gives ChampionLyte $125,000 worth of S-8 stock and ChampionLyte gives BEVsytems up to $100,000 in cash each and every month is a most questionable transaction and was never disclosed as a related party transaction despite Mr. Davidson's obvious involvement in both companies.
The connections between ChampionLyte and BEVsystems go beyond this one agreement and Mr. Davidson's heavy involvement in both companies. BEVsystems recently issued a significant amount of stock to a company that shares office space with ChampionLyte and which also shares an office address with Mr. Press' Finantra Capital.
Another common thread between the two companies is that they both share the same Investor Relations Group, Peter Nasca Associates. By some strange coincidence, this is the same Peter Nasca who is now working for Epixtar Corporation as their Investor Relations representative and previously worked for Robert Press and his Finantra Capital. Mr. Press also has an interesting background. He was or is the President of Finantra Capital, formerly known as Medley Credit Acceptance. http://www.businessweek.com/1997/50/b3557003.htm.
He also was the President of Performance Capital Management, Inc.
http://www.ftc.gov/opa/2000/08/performance.htm and was also affiliated with PCM Securities, (check out this Mob On Wall Street article) http://www.businessweek.com/1996/51/b35061.htm.
In fact, according to Business Week, Press was also an officer with PCM Securities. In fairness to current management of ChampionLyte, it would appear that, beverage people were put in place by those controlling the company and the stock business and the stock deals were left to those with stock experience. They only have token stock positions and their resume's indicate more experience in the field of the beverage business and less in the area of public stock matters. At least that is our opinion in the matter. We guess it is a good thing that they are surrounded by people like Robert Press and James Davidson to help guide them in the ways of the market. (We say that with tongue firmly planted in cheek).
In our opinion, the tight little group of Davidson, Press and Nasca and the companies they touch deserve a lot of looking into.
On a final note, we would like to point out that James Davidson, portrays himself as an outspoken opponent of naked short-sellers. As we have pointed out in the past, one of the worst enemies of emerging companies and the best friend of the naked short-sellers are the discount based convertible fundings better known as 'toxic fundings' or 'death spirals'. Given these facts, we would like to call everyone's attention to the fact that a group called the Advantage Fund, I, LLC recently cut a deal with ChampionLyte at a conversion factor of 70% of the bid and the very same Advantage Fund I, LLC can be found as a significant holder and seller of BEVsystems shares as well. Who besides James Dale Davidson was connected to both these companies in a way that could get this funding handled for the Advantage Fund I, LLC. Could it be that Mr. Davidson is a wolf in sheep's clothing? Or is someone running around companies where he is a director and/or significant shareholder and pushing these death spirals through over his vehement objections?
It should be further noted that The Advantage Fund I, LLC also shares the same address with ChampionLyte Holdings, and Kinghtsbridge Capital and that these two funding groups are related to not only this address but also the address of Finantra Capital and Mr. Robert Press who of course partnered up with Davidson for the takeover of ChampionLyte. Of course none of this is disclosed but you have a right to know!(end our-street.com)
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Now this from a Genemax article by Stocklemon.com from last year:
Yet, whereas Sam Waksal was the CEO of Imclone, Stocklemon believes that the problems with Genemax are not from the Chairman or CEO, but rather on the level of stock promotion and the individuals and groups that brought Genemax into their publicly traded hell. Dr. Julia Levy is a highly respected individual who deserves the utmost respect. Dr. Wilfred Jeffries is similarly a respected researcher who is dedicated to his work. Stocklemon does not have much information on CEO Ron Handford besides him being the former CEO of a mineral company on the Vancouver Exchange named Ouro Brasil (COU.V).
Investor Communications International, Inc. http://www.investorcomm.com/index.htm
It appears to Stocklemon that Investor Communications International, Inc. (.ICI.) is the mouthpiece of Genemax. They owned the shell that Genemax merged into and they also serve as an investor relations company for Genemax. Stocklemon is always skeptical when an investor relations firm has such a large stake in a publicly traded company. According to Genemax.s last filing dated August 19, 2002, Investor Communications International, Inc. owns 554,470 shares of Genemax. Furthermore, Genemax pays ICI a monthly retainer of $10,000.
According these filings,On October 9, 2000 the Company entered into a management services agreement with Investor Communications International, Inc. ('ICI'), a significant shareholder, to provide management and investor relations services for the Company. During the period ended June 30, 2002, the Company incurred $248,300 in fees and $8,782 in interest to ICI. During the period ended June 30, 2002 the Company repaid ICI $322,000 for amounts owing. As of June 30, 2002, $17,356 is owing to ICI for fees, cash advances and interest. The Company subsequently entered into a new consulting services agreement whereby ICI will provide various corporate services on a month-by-month basis for a fee of $10,000 per month plus expenses.
This is not the first stock that ICI has been involved with. Over the past two years, Stocklemon can document three other companies (i.e Vega Atlantic, Intergold Corp, and Hadro Resources), which have been involved with ICI. http://www.10kwizard.com/files.php?sym=&pcname=&cik=&
exp=investor+communications+international&ind=-1&sic=&fg=0&stype=0&smonth=08&sday=22&syear=2001&
emonth=08&eday=22&eyear=2002&st=2&arrow=0&from=0&repo=tenk&
g=&submit.x=0&submit.y=0VATL- .04 cents http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=vatl&
sid=0&o_symb=vatl&freq=1&time=9 IGCO- .015 cents http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=igco&
sid=0&o_symb=igco&freq=1&time=9 HDRS- .16 cents http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=igco&
sid=0&o_symb=igco&freq=1&time=9 Hadro Resources http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=hdrs&
sid=0&o_symb=hdrs&x=57&y=21
It appears to Stocklemon that the last stock that ICI was involved with was Hadro Resources (OTC:HDRS). We find it interesting how the pattern of GMXX closely follows that of Hadro Resources.Here are some similarities between Hadro Resources and Genemax:
1. They both have the same mailing address on their filings: 435 Martin Street, Suite 2000 Blaine, Washington 98270;
2. Grant Atkins is both the President of Hadro and a director of Genemax. Mr. Atkins gave an interview (please see link below) in which he discusses the naked shorting of Genemax while presiding as the President of Hadro. Oddly enough, Mr. Atkins. bio in the 10Q of GMXX, fails to mention that he is the CEO of Hadro Resources; http://bigcharts.marketwatch.com/news/articles.asp?guid=
{C42DAAFF-71C5-42F4-A480-3B3FE6F9AF71}&newsid=800575700&symb=GMXX&sid=1194061
3. Both Hadro Resources and Genemax got their listing in Frankfurt. http://translate.google.com/translate?hl=en&sl=de&u=
http://www1.boersenman.de/BM/HOME/company.php%3FKEYNAME%3DHADRO%2520RES%26TYPE%3D1&
prev=/search%3Fq%3Dhadro%2B resources%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8; http://translate.google.com/translate?hl=en&sl=de&
u=http://www.finanznachrichten.de/nachrichten/artikel-1189875.asp&
prev=/search%3Fq%3Dgenemax%2Bde%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8
4. Alexander Cox is a Beneficial Owner of Hadro Resources and Genemax. http://www.10kwizard.com/filing.php?param=repo%3Dtenk-sym%3Dhdrs-sdate%3D20010822-edate%3D20020822-st%3D2&
repo=tenk&ipage=1741708&doc=1&total=&g=&type=&trad=&attach=on
How Can We Get Some?
To this point, Genemax has funded itself with the aid of ICI. Please see the quote below which illustrates the type of funding that ICI has provided. And no, what you are about to read is not a misprint.
In May 2002, the Company completed a private placement of 2,000,000 common shares at a price of $0.125 per share for proceeds of $250,000.. http://www.10kwizard.com/filing.php?param=repo%3Dtenk-sym%3Dgmxx-sdate%3D20010822-edate%3D20020822-st%3D2
&repo=tenk&ipage=1809812&doc=1&total=&g=&type=&trad=&attach=on
Enough About the Shorts, What About The Business?
Stocklemon always questions when a company seems to be more concerned about their stock activity than they are about their actual business. In the past three months, Genemax has released a plethora of press releases that deal with the stock activity and the alleged .naked shorting. of their security. Stocklemon suggests that instead of worrying so much about the shorting, Genemax should ask themselves these two important questions:
1. How can we reinstate investor confidence; and
2. How can we return shareholder value.
It is the opinion of Stocklemon that if Genemax can justify its market capitalization and give confidence to the investor that this is not just another pump-n-dump, then maybe the shorts will get away from the stock. Instead of another press release about short sellers, how about a release explaining in detail how to cure cancer with only $185,000 in the bank.
Who Is James Dale Davidson?
James Davidson is one of largest individual shareholder in Genemax with holdings of 1,250,000 shares. According to Genemax.s website, he is also the Chief Financial Officer and Secretary of the Company. It appears to Stocklemon that Mr. Davidson is quite an erudite gentleman with a risumi that would impress even the most harshest critic. He is a publisher, lecturer, and director of many public and private companies. Stocklemon is of the belief that Mr. Davidson should add to his list of credentials the title of .stock promote. Mr. Davidson is the founder of Agora Publishing which publishes reports on investment opportunities.
Mr. Davidson profiled IGSTF in one of his past newsletters. Please click on the link below to see some of the bold claims made by Mr. Davidson. Stocklemon has never read a more aggressive report, that sells the dream more, than the one presented by Mr. Davidson. Stocklemon suggests that the regulators take a look at the statements made by his newsletters. http://www.agora-inc.com/reports/VPI/RoutetoProfits/
He is currently doing the same promotion with Genemax. According to his report, as I write this, we are also offering a couple of absolutely stunning medical and biotech breakthrough opportunities to investors. One of them is a breathtaking gene therapy that offers incredible hope for cancer patients. In animal trials, two-thirds of mice injected with human lung cancer tumors with the biomass equivalent of basketballs were cured using this treatment. And this technology has already been hailed in Nature Biotech, one of the most prestigious journals in the world. GeneMax Pharmaceuticals has already turned down several offers to go public that management deemed inadequate given the company's huge potential. It is currently entertaining a new proposal, however, of enormous potential benefits to Strategic Opportunities initial investors. http://www.agora-inc.com/reports/STO/StartTheProfits/
By the way, we at Stocklemon were wondering - just how does a mouse have a tumor the size of a basketball? In the same newsletter, Mr. Davidson discusses another stock that he is involved in called BEVsystems International, which currently trades at .19 cents. He writes about BEVsystems International as follows, BEVsystems International is poised to skyrocket to similar valuations. I'm not at liberty to disclose the exciting endorsement agreement and takeout financing arrangements under way, but I can assure you that our ground floor investors stand to make exponential profits. And it's just one of several life-changing and wealth-building options for my select group of 'adventure' investors. http://www.agora-inc.com/reports/STO/StartTheProfits/
Where is the Disclosure?
What seems to be missing in the above paragraph about BEVsystems International is the disclosure statement which states Mr. Davidson.s relationship with BEVsystems International. Writing a newsletter carries responsibilities to your readers. Stocklemon does not believe that Mr. Davidson has fulfilled these responsibilities. Just last week, Mr. Davidson hosted an investment seminar in San Francisco http://awaionline.com/dr/. Stocklemon is curious to know if Mr. Davidson presented Genemax as one of his .serious profit opportunities.. If he did, did he properly disclose his relationship to the company? We believe that this could present a serious conflict of interests that should be addressed by Mr. Davidson.
Below are three other stocks that James Davidson was and/or is involved in:
1. BEVS- .19 cents http://bigcharts.marketwatch.com/quickchart/
quickchart.asp?symb=bevs&sid=0&o_symb=bevs
2. ALIAF (Pink Sheets) - .89 cents http://finance.yahoo.com/q?s=ALIAF.PK&d=t
3. MIVT- .32 cents http://finance.yahoo.com/q?s=MIVT.OB&d=t
Offshore Companies
It is Stocklemon's experience that whenever there are large amounts of offshore holders in a company, there is a higher propensity for the stock to go lower. There are many reasons why offshore accounts are used but notice two common denominators, (a) none of these accounts are in the names of individuals; and (b) many are located in known tax and security havens. The following are a list of some of the offshore holders:
Latitude 32 Holdings Ltd. Shareholder Mareva House 4 George Street Nassau, Bahamas
Aberdeen Holdings Limited Shareholder 16 Market Street Belize City, Belize
Calista Capital Corp. P.O. Box W-961 St. Johns Antigua West Indies (1) Common Stock
Spartan Asset Group P.O. Box W-960 St. Johns Antigua West Indies 14
Pacific Rim Financial Inc. C/o Arundel House 31A St. James Square London SW1Y 4JR United Kingdom (1) Common Stock
Eastern Capital Corp. C/o Northbrook Farm Bentley Farnham Hampshire GU10 5EU United Kingdom (1) Common Stock
Eiger Properties Inc. C/o P.O. Box CH-4002 Basel, Switzerland (1) Common Stock
Rising Sun Capital Corp. 96 Front Street Hamilton HM12 Bermuda
Don't Forget About The Business
The Company has not yet begun phase one clinical trials on their proprietary product. According to their filings,
Management of the Company believes that an estimated $15,000,000 is required over the next three years for payment of expenses associated with the balance of pre-clinical development and commencement of Phase I clinical trials for the TAP Technology and for corporate expenses.
http://www.10kwizard.com/filing.php?param=repo%3Dtenk-sym%3D
gmxx-sdate%3D20010822-edate%3D20020822-st%3D2&repo=tenk&
ipage=1839080&doc=1&total=&g=&type=&trad=&attach=on
It is the belief of Stocklemon that this could cause extreme dilution to the stock IF the money was ever able to be raised. Furthermore, nothing is to guarantee success of the TAP product. It has not yet been tested on humans and has a long road ahead. Stocklemon hopes and prays for all cancer research to be successful. We hope that Dr. Jeffries will make a difference in his research. Unfortunately, we do not believe the vehicle of GMXX and the promoters behind it have the same interest in the company as Dr. Jeffries does. It would be a shame to have a bad stock deal get in the way of good research.
Conclusion
Where there is smoke, there is fire. If the investors of Genemax would like to know why there is so much naked shorting in their stock and why the short sellers seem to be targeting them, they have to look no further than there major shareholders. We believe that the above report has thoroughly outlined sufficient reasons for even the most ardent supporter of Genemax to have healthy skepticism about the true viability of this Company. Stocklemon has always said If you can't bet on the horse, then bet on the jockey. Stocklemon is merely reporting this information as a caveat emptor to anyone who might think about investing in this Company. We hope that one day soon cancer will be completely eradicated in the human body. Similarly, we hope that one day the cancer of stock promotion will be eliminated in our public marketplace.' (end stocklemon.com)
.............................................................
James Dale Davidson is also the same man that ran the Clinton killed Vince Foster scam for Richard Mellon-Scaife.And when former CIA Chief William Colby died mysteriously,he blamed Clinton for that as well!! But the funny(peculiar) thing is,Colby was Davidson's employee at the time of his death in 1995. He used Colby's name on his stock pump scams to lend credibility to his scams.He even used Colby's name on his letterhead to accuse Clinton of Vince Foster's death !!!, possibly without Colby's permission, but we''ll never know because he's dead !!!
And on top of it all, Davidson makes a complete joke of the FBI, and laughs in their face and ridicules them, as you can see below from his mailings and internet propaganda at the time he used Colby's name to accuse Clinton of murder.Strangely he even accuses Ken Star of covering up for Clinton in the pre Monica Lewinski era.
BELOW IS A PORTION OF HIS 'CLINTON KILLED VINCE FOSTER' PROMOTION USING THE VERY SAME MAILING LIST HE NORMALLY WOULD USE TO PUMP THE STOCKS HE PROMOTES.FORMER CIA CHIEF COLBY'S NAME WAS USED FOR THIS AS WELL ALTHOUGH WE FIND NO PROOF COLBY WANTED HIS NAME USED.COLBY WAS ORIGINALLY PAID TO LEND HIS NAME TO DAVIDSON'S STOCK PROMOTIONS.
...........................................................
'We at Strategic Investment believe that the evidence in this case overwhelmingly points to murder. It is a threat to the credibility of America's justice system that possible obstruction of justice by the Park Police and the FBI is whitewashed.'
JAMES DALE DAVIDSON
For Immediate Release
October 25, 1995
For More Info Contact: Anne Dunne: 410-576-0900
EXPERTS SAY FOSTER 'SUICIDE' NOTE IS A FORGERY
At a press conference this morning at Washington's Willard Hotel, James Dale Davidson announced the findings of an international panel of forensic experts who examined a copy of a note that was found in Foster's briefcase shortly after his death.
The panel of three forensic handwriting experts have determined that the note is a forgery, and not written by the late Deputy White House Counsel.
James Dale Davidson, Editor of Strategic Investment, a premier world financial newsletter, offered the following statement today:
Ladies and Gentlemen, Strategic Investment has asked a forensic panel of handwriting experts to examine the so-called 'suicide' note, said to have been written by the late Vincent Foster.
The panel's conclusions were collected over a three month period. Each panelist worked independently and came to their own conclusions without interference.
They completed their study with far greater care, thoroughness, and apparent accuracy than the federal institutions that were intended to protect us. It is indeed ironic, that Vincent Foster, as the number two lawyer in the White House and one of the highest ranking law enforcement officials in this land--would have his own death covered up.
The fabrication of a 'suicide' note by high officials, is just one more indication that Vincent Foster did not commit suicide.
With us today are our expert panel whose reports you have copies of, as well as the torn note, and a set of known documents written by Vincent Foster.
Mr. Reginald E. Alton, from Oxford Univeristy, has flown in for this conference. He is a world-recognized expert on handwriting and manuscript authentication. For 30 years he has lectured at Oxford on handwriting, and has engaged in forensic document examination.
Recently he ruled on the authenticity of C.S. Lewis's Diaries. He has been consulted by British police authorities and has testified in British courts on both criminal and civil matters involving questioneddocuments. He has determined the note to be a forgery.
Mr. Vincent Scalice, is formerly a homicide expert with the New York City Police Department. He is a certified Questioned Document Examiner with the American Board of Forensic Examiners. He has 22 years experience as a document examiner, and has worked for some of the countryUs largest institutions in this capacity, for example Citicorp and Chemical Bank.
He has determined the note to be a forgery.
Mr. Ronald Rice has 18 years experience performing civil, criminal and forensic handwriting examination. He is a consultant to the Massachusetts Attorney General's office. He has examined documents on a number of celebrated cases, and recently was asked by CNN to examine notes written by O.J. Simpson.
He too has determined the note to be a forgery.
Three experts--70 years of combined forensic examination experience--conclude forgery. Both the Park Police and later the FBI determined the note to have been written by Mr. Foster.
But look more closely. The Capitol Police handwriting expert compared the so-called Foster note to only one document--which is not in keeping with a proper and complete examination. We learn today from Mr. Christopher Ruddy, the reporter from the Pittsburgh Tribune-Review, the Park Police used the services of [a] Sergeant from the Capitol Police who has never been certified as a document examiner.
Later the FBI, and former Special Counsel Robert Fiske reports, found the note to have been written by Foster, again by comparing it to a single document and several checks written by Foster. Like so much of the duplicity in the Fiske report, we learn that the checks proved an inconclusive match to the note. The FBI violated standard forensic procedures to match the document.
Former FBI Director William Sessions has charged that his firing the day before Foster's death led to a 'compromised' investigation into the death. Political considerations have guided Foster's death investigation from the beginning. Allegedly, in America, no one is above the law. But the investigations, by the Park Police, Fiske, and the Beltway insider Kenneth Starr, show that the law applies differently to different people.
We at Strategic Investment believe that the evidence in this case overwhelmingly points to murder. It is a threat to the credibility of America's justice system that possible obstruction of justice by the Park Police and the FBI is whitewashed.
- James Dale Davidson
............................................................
J.D.Davidson employed ex CIA Chief Colby on 9/24/2004 1:11:09 AM
E-mail: biodog0
Davidson paid to use Colby's name on his Strategic Investment tout mailings till he died mysteriously.You can now find that pos publication online at strategicinvestment.com. Davidson even used Colby's name on the letterhead mailings in 1994 accusing Clinton of murdering his(Clinton's)own friend Vince Foster.I find nowhere any comment from William Colby indicating he believed or even approved what his name was used for.
In fact if Colby knew a fraction ofDavidson's'securities' scams as an employee his life might be more endangered from his Davidson involvement than from Bill Clinton who probably respected Colby for preventing Nixon from using the CIA to block the Watergate investigation.After Colby's death Davidson immediately began another 'whitewash',(DAVIDSON USED THAT TERM RE THE FBI AND THE WASHINGTON PARK POLICE AND EVEN KEN 'PORN' STARR FOR NOT TAKING CLINTON AWAY IN CHAINS AFTER FOSTER'S PROBABLE SUICIDE),to accuse Clinton of killing Colby in addition to Foster.
Below is from Christopher Ruddy the English pos 'writer-investigator'who had written a book accusing Clinton of killing Colby with the encouragement no doubt of Davidson and his English winger pal the Lard Rees-Mogg.Funny these wingers(far right wingers)seem to have known or anticipated Colby's death a month in advance.And this is from their own writing or Ruddy's below.Were these wingers psychic or what ? And the funny thing is the article below is part of their smear campaign against Clinton yet if you read the first part below you ask yourself,yeah why did the FBI CIA DOJ or someone not grill these wingers,who unlike Clinton,anticipated his death in advance.Too funny in a sick sort of way.
...........................................................
This from madmaxnews,I mean newsmax.com:
The Body Count: Add One More Christopher Ruddy
Related Articles:
William Colby's Death Mystery
It was March of 1996. My cell phone rang. My literary agent was on the line.
'Cross Colby off the list. He's dead.'
'Colby is dead,' I said with some shock.
'Yes, I just heard on the radio he died in a car crash,' my agent said.
I did not know former CIA Director Bill Colby, nor did my agent. But we both knew James Dale Davidson, editor of the investment newsletter Strategic Investment. Davidson was not only an associate of Colby's, but Colby had worked for Davidson as a contributing editor for his newsletter.
At the time of my agent's call, he was attempting to find a publisher for my book on the Vince Foster case. We still had no publisher, and my agent had floated the idea of William Colby writing the proposed book's foreword. This would serve several purposes. Colby, as a former CIA chief, would give the book some credibility with a publisher.
Colby had been a key figure in the Watergate scandal after he refused to allow the CIA to block the FBI probe on the Watergate burglary. Colby could not be accused of being part of a right-wing conspiracy. After leaving the CIA, he argued for unilateral disarmament and became a fixture at the left-wing Institute for Policy Studies.
My agent thought Colby might be open to the idea. After all, he worked for Davidson and Davidson openly claimed Foster was murdered, pointing the finger at the Clinton White House.
But now the idea of a Colby foreword seemed lost.
I called Davidson and asked him if he had heard the news about Colby. His voice became strained. He sounded stunned when I told him.
But, of course, Colby had not died that March. He died a month later. My agent was wrong. To this day, he swears he heard something, and to this day, we laugh about the Jungian wrinkle in time. Davidson was peeved at me for the false report, as he well should have been.
On April 29, 1996, the wires flashed with hot news: Former CIA Director William Colby had disappeared from his country home on the Wicomico River in Maryland. Authorities suspected he died in a canoeing accident, as his waterlogged canoe was found on the shore near his home.
A week later, his body surfaced in the marsh near his home. After a perfunctory autopsy, local police authorities closed the case as an accident.
Still, there were many reasons to suspect foul play.
These suspicions began as soon as the initial press reports came out. As expected, the Associated Press ran the first wire story. Colby 'was missing and presumed drowned' the AP reported. The wire story said he died as the result of 'an apparent boating accident.'
Quoting a source close to Mrs. Colby, who was in Texas at the time her husband disappeared, the AP stated Colby had spoke via phone with his wife on the day he disappeared. He told her he was not feeling well, 'but was going canoeing anyway.'
This would be an important clue pointing to an accidental death, had it been true. But someone fabricated this story out of whole cloth. A week later, Colby's wife rebutted the AP report, telling the Washington Times her husband was well, and made no mention of canoeing.
This initial, false report that relieved obvious suspicion was, for me, a red flag of a cover-up.
Interesting, too, were the obituaries being written. All detailed Colby's fabled career in the World War II-era OSS, the James Bond-like spy who parachuted behind Nazi lines and became a stellar CIA agent. After heading up the Company's Phoenix program in Vietnam, Colby was tapped by President Nixon for the position of DCI -- Director of Central Intelligence. These obituaries detailed a formidable list of Colby's associations after he left the CIA.
Yet, nowhere did any media report Colby's most significant occupation at the time of his death -- contributing editor for Davidson's Strategic Investment.
Odd that Colby's major affiliation at the same time of his death deserved no notice.
Strategic Investment is a prestigious financial newsletter with more than 100,000 readers each month. It is co-edited by James Davidson, a national figure, as well as William Lord Rees-Mogg, former editor of the Times of London.
This curious omission takes on great importance when one understands one of Strategic Investment's key aspects. It has been one of the leading, real opposition publications to Bill and Hillary Clinton in the United States.
Davidson and Rees-Mogg have never pulled any punches about the Clintons. Each month, the newsletter detailed the Clintons' sordid drug, mob, and murder connections. Davidson had been a friend of Bill Clinton and had frequented Little Rock. He even had donated the maximum amount allowable to Clinton's 1992 presidential campaign.
In 1993, Davidson had an awakening about Clinton. My reporting on Foster, investigative reports by British reporter Ambrose Evans-Pritchard, and columns by Strategic Investment's Washington insider Jack Wheeler, had convinced Davidson that Clinton was linked to organized crime, had subverted the U.S. law enforcement agencies, and was a danger to America's institutions and financial well-being.
As an editor for Davidson's newsletter, Colby never wrote about the Clintons or touched upon these matters. He did, however, lend his name to Davidson's enterprise. The newsletter's reach was multiplied by the effect of the millions of direct-mail pieces Davidson's organization sent to homes across the country seeking new subscribers.
I was shocked by one such direct-mail booklet. The cover headlined the Clintons' connection with murder and drugs. I opened the first page, and the first picture I saw was William Colby's. Another headline blazed that Strategic Investment was 'An Investor's CIA.' Colby was prominently displayed, as was his endorsement. This was brilliant marketing on behalf of Strategic, but when I saw it, I thought Colby was swimming in dangerous waters.
This turned out to be literally true when he was found floating on the Wicomico. Like the Foster death, the circumstances of Colby's passing made little sense.
When police entered his country home, they found both his radio and computer left on. 'Investigators found dinner dishes on a table and clam shells in the kitchen sink.' Friends say this was unusual for Colby, a meticulous man.
The canoe was found conveniently waterlogged near the waterfront part of his home. Considering the swift current of the Wicomico, that made sense only if he died very close to the shoreline near his property. Yet authorities using scuba divers and sophisticated radar couldn't find his body there.
And a canoe is an extremely seaworthy boat. How did it become lodged and waterlogged on the riverbank? Had Colby been stricken by a heart attack and fallen off, as has been speculated, the canoe should have completely capsized or safely righted itself, not become waterlogged and moved by the current to the Colby waterfront.
Then there were other telling problems. Colby was found with no lifejacket. He always wore one when on the water. The scrupulous search for him should have turned up the floating life jacket or the buoyant paddle. Neither was found.
An autopsy by a Maryland coroner found that Colby had died of drowning. The autopsy also claimed that the drowning was precipitated -- get this -- by a heart attack or stroke. Take your pick. But the coroner found no evidence of either!
Police homicide investigators always treat drowning deaths with great suspicion. Trained killers know that someone killed by drowning is 'buried' in deep water, a target of predatory sea life. After days there, the body is mutilated by sea life to such a degree that any signs of a struggle are difficult to identify.
In the days after Colby's demise, I was disturbed by the many parallels to the Foster death: the circumstances that just didn't add up, the outrageously phony initial press reports, the quick official rush to judgment by investigative agencies, the questionable autopsy.
My feathers were ruffled more when I received a call from Peter Birkett, an investigative reporter from Britain's Daily Express. Peter had been rushed over to the United States, he said, because the paper's intelligence sources in MI5 had claimed Colby was assassinated by U.S. government operatives. Peter's job was to ferret out the facts.
The Express is a credible paper, and Peter seemed genuinely interested in the truth. He had heard about my Vince Foster reporting and was told by contacts in Britain that I could offer him some insight. I told him my concerns, notably the unreported Colby connection to Davidson's newsletter.
Peter began his own investigation and gave me progress reports as things unfolded. He spoke to the local police, some of whom, he claimed, didn't buy the boating story accident. For one thing, one of the investigators told Peter that Colby's body was found fully clothed. His socks were on, but his shoes were missing. Colby always wore shoes when canoeing, particularly on a blustery April day.
Peter told me that the cop asked incredulously: 'How did his shoes come off? In the middle of a heart attack or stroke, he began untying his shoes after his canoe capsized?'
Peter left for England with few answers and more doubts.
Submitted: 10/8/2004 5:22:01 PM
Modified: 10/9/2004 12:51:44 AMTony Ryals
Antigua, Central AmericaGuatemala
Correspondence from Davidson, 'Dr.'Summers,Alexander Walker and some SEC statements etc.
My correspondence with Mr.James Dale Davidson himself:
Note James Dale Davidson founded 'NAANSS'to mask his own share dumping.Note he continues to blather on and on about electronic trading creating counterfit shares.And it's all a lie to mask his share-money laundering operation.
James Dale Davidson replies:
By tony ryals on 3/20/2004 8:10:43 PM
E-mail: tryals@angelfire.com
'James Dale Davidson' answers,or avoids answering,as the case may be, Ryals email:
Dear Mr. Ryals,
Who are you? I infer from your rantings below that you are delusional. But perhaps more than that? Perhaps you are malicious, and in the employ of electronic counterfeiters who have feasted on the corpses of small public companies ever since the advent of electronic clearing? I can think of no other motivation that would explain your letter. By and large, normal people do not sit around inventing malicious fantasies about someone they don't even know.
Obviously, you have your own agenda, so you are unlikely to be swayed by anything I might say. I recognize that. But for what it's worth, I have never been involved in any 'pump and dump' exercise. For the record, you have been warned. I would advise you not to repeat your malicious slanders in a public forum, or I shall be obliged to take legal action for redress.
Sincerely,
James Davidson
P.S. By the way, your search for a company I have been involved with which was a success for its investors could not have been very diligent. As it happens, there was a long op ed piece in the Washington Post this week by a small investor who made so much money following my advice that filing his taxes had become a burden for him.
Tony Ryals wrote:
Dear Mr.James Dale Davidson,
I have meant to contact you for some time regarding my Endovasc 'investment'.I have no idea when you left the 'company' but by the time you did it had dumped millions of shares while fraudulently claiming the 'shareholder value' was the result of Schwab's,Ameritrade's, Refco's,et.al.'s, 'naked shorting.Was 'famed trial attorney O'Quinn'perhaps misled to believe that all those shares were the result of 'naked shorting' rather than the apparent pump dump operation it turned to be ?
I also noted you were greatly responsible for founding the 'naanss' group that blamed most shareholder penny stock losses on 'naked shorting'.Is this just a smoke screen for defrauding Americans and laundering their money through massive share dumping that cannot easily be tracked ? Was the account Mr.Cantrell set up at Schwab with an insider for millions of seemingly free shares a part of your November 2002 pump dump ?
I have looked continuously for a company you have been involved with that was a success for its shareholder-investors. And you know I can't seem to find one although for some reason you always appear to have pumped and dumped the stock through your own myriad publications.Sometimes I believe 'The Soveriegn Individual'explains your own modus operendi of using the internet for anonymously influencing naive investors to buy while you dump the shares you have gotten for free from penny 'management' and then use your offshore shells including 'LOM' anmd 'New Paradigm' among many others to hide launder that money you stole from Americans so as not to pay taxes on the theft.That is doubly humorous and fraudulent coming from one who pretends to be an American patriot,even involving yourself in political intrigue,and who prides in having founded the 'National Taxpayers Union'.
Also you have claimed publically the the 'SEC lies'. This I will not comment on but to say they rarely say anything at all.And only through 'freedom of information act' can you get a thing out of them. However you also tell me in your 'Vantage Point'that you received a few shares of Endovasc by way of a 'nicotine patent'that you applied for with 'Dr.Summers.Could you please inform me what the patent number is or was it approved ? Then at another time you claim to have a 'substantial' holding of Endovasc shares through an unidentified source.Was this as a 'consultant'or what,I really don't understand.You see the only reason I 'invested' in 2001 was because of the Stanford nicotine patent for angiogenesis.Now if you left another as you claim in exchange for shares I would like to know about it.
Finally, as an off topic from my Endovasc losses due to a fraudulent pump dump, I would like to ask if you still think Bill Clinton murdered your former employee, CIA Chief Willam Colby ? Try as I might I cannot find any statement from Mr.Colby re the death of Vince Foster nor any reason to believe he agreed with you that Bill Clinton killed his own friend.
Sincerely,
Tony Ryals
James'Fraud'Davidson and MOD Ventures:
27 N. Summerlin Ave.
Orlando,Florida 32801
James Dale Davidson jamesd@attglobal.net
Private Investor, Entrepreneur, Analyst and Author. Mr. Davidson
has extensive experience in entrepreneurial executive management/venture
finance. Author, with Lord William Rees-Mogg, Blood in the Streets:
Investment Profits in a World Gone Mad, The Great Reckoning, and
The Sovereign Individual: Mastering the Transition to the Information
Age. Founder of Agora Publishing, The Hulbert Financial Digest,
and Strategic Investment. Director of Pickering & Chatto Publishers,
London. Principal of The Fleet Street Press. Founder (natural resource
companies) Oroperu, Sedna Geotech, Ouro Brasil, Oro Argentina, Consolidated
African Holdings, Anatolia Minerals Development Corporation. President,
New Paradigm Capital, a private merchant bank based in Bermuda,
a former director of Banco Comafi S.A., Buenos Aires, Argentina
and Cardlink Worldwide, Rio de Janeiro, Brazil. Current North American
technology and Internet related affiliations: BestTransport, Mariah
Vision3, Interactive Retail Management, Internet Transactions Transnational,
NewsMax Media, Advanced Power Devices, Packetup Corporation, Stardata,
and CyGene. Founder, MIVI Therapeutics and GeneMax Pharmaceuticals.
Chairman, Wharekauhau Holdings Ltd., Featherston, New Zealand, Director,
Martinborough Vineyards, Martinborough, New Zealand, and Palliser
Properties, Ltd, Auckland, Deputy Chairman, BEVsystems, Founder
and Director, New World Premium Brands, Auckland, New Zealand (winery roll-up and distribution).
Re: James Dale Davidson replies:
By tony ryals on 3/21/2004 3:41:57 PM
E-mail: tryals@angelfire.com
My Ryals,
You don't identify yourself. Really, that is rather uncivil, though hardly more uncivil than your initial missive which accuses me of a number of felonies of which I know I am innocent. Under the circumstances, I have no interest in keeping up an extended correspondence with you, given that you have made it quite clear that you are prejudiced against me and prepared to leap to conclusions which are remote from the facts.
That said, I doubt that you have a claim against me over the patent I applied for in conjunction with Dr. Summers, as Endovasc signed a substantial contract with a major nutraceutical firm to market the product. This has all been announced. As to being proud of it, yes, I am. It was a valid insight that has been confirmed in human and animal testing.
Sincerely,
James Davidson
Tony Ryals wrote:
Dear Mr. James Dale Davidson,
I appreciate your attempt at a reply but other than your name calling there was a total disregard for the questions I posed.Others,than you or I, who are both biased as to whether your 'Vantage Point' Endovasc articles are pump dumps,can deal with that.
I, as an 'investor' in Endovasc long before you appeared,would just like to focus on the nicotine patent you wrote with Dr.Summers.Remember that you proudy announced that you had co-patented it with Dr.Summers in 'Vantage Point' in 2002 when the stock was being featured in 'Vantage Point' ? Where can I find the number of this patent ? And just how many shares did it cost us, the humble naive investors who bought our shares the old fahioned way ,through those dirty naked shorting mms such as Charles Schwab ? You are more sophistiated re securities than I so you might help me locate this tranacton in SEC filings or fill me in as to why such minor details are not requred in SEC filings.
Your assistance in locating this patent that all EVSC INVESTORS ARE MOST PROUD OF IS MOST APPRECIATED.
Sincerely,
Tony Ryals
James Dale Davidson proud of securities frauds:
By tony ryals on 3/25/2004 5:23:40 PM
E-mail: tryals@angelfire.com
Dear Mr. Ryals,
Needless to say, I regret that you lost money in Endovasc or, indeed, in any investment. That said, your fixation on exploring this issue with me is entirely misplaced. By your own admission, you did not invest in Endovasc on my say-so. In the somewhat patchy account of your complaint that emerges between the lines of your demanding and unpleasant communication, I find no logical nexus between your losses and any action of mine. In pure logic, I cannot see how applying for a patent could have destroyed your investment, or exposed it to any material harm whatever. In the absence of any disclosure on your part, I owe you none. And none you will get. If you think you have a claim against me, contact my lawyer, whose e-mail address is listed above.
Otherwise, I will treat your further communications as
spam in the same category as a certificate for a $10 savings on any Teddy Bear purchased in April, notice of a free poetry contest, something about 'Ronald Reagan's greatest laughs,' and the inevitable promise to enlarge my penis by 'up to five inches guaranteed.' Att is sending through a lot of malarkey, including too much from you. You have not behaved as a gentleman in any respect in our correspondence. I won't miss hearing from you.
Sincerely,
James Davidson
Tony Ryals wrote:
Dear James Dale Davidson,
Is this your way of saying no patent exists ? All I asked was for the patent number, or if it is still pending,the date it was applied for.I would presume this patent is part of the pink sheet 'evsc' branch as that is the entity I presume is related to the $1.5 million something or other.Sure I would like to know how many shares were given to you for the patent as well.
Also I am glad for you that Stanford did not challenge it as it appears it may be covered in their own patents.Stanford angiogenesis patent by the way can be located on internet.As I lost 99% of my 'share value' due to supposed 'naked shorts'I would at least like to have full disclosure re this patent.
You and the doctor must have a copy describing the patent. May I see it ?
Sincerely,
............................................................
Note the letter below addressed to the SEC from 'Dr.'David P Summers appeared on the internet yahoo and ragingbull sites in December 2003.Mr.Davidson had done as much pump dump and bleediing of the 'company' or its investors as he could leaving the Endovasc 'management'to look elsewhere to dump additional shares around the world and hidden from the eyes of U.S.investors and the SEC.
Even the date of the Securities Act in the letter of David P Summers to the Dallas-Fort Worth SEC is wrong to purposely deceive real investors of Endovasc but putting enough in public view to scare Dwight Cantrell,Diane Dottavio,Robert Johnson the Texas mortuary man,and Judge Ken Reilly. Cantrell, representing 'Endovasc',will later take Summers to court in Montgomery,Texas in January 2004 and take over the penny pump dump shell called Endovasc for himself and his insiders to tout and dump shares of.Summers no doubt still lurks in background with shares to dump,honor among thieves.
................................................................
U.S. Securities Exchange Commission
Enforcement Division
Ft. Worth, Texas
Dear Mr. Baudhuin:
This letter is further to my today's telecom and substantiating a earlier telephone voice mail made to Barbara Ray of the Enforcement Division on or about December 8, 2003 when I called to notify the Commission that I had expressed concerns as the Chief Executive Officer of Endovasc Inc., (OTC BB ENSV) over potential violations of the 1932 Act, and particularly the Sorbannes/Oxly Act within my Company. I have been particularly disturbed over an Agreement between Endovasc, Inc. and The Baladore Group of Phoenix, Arizona which was acting as a Broker/Dealer in our securities to foreign nationals and/or exempt U.S. citizens. Of particular concern was the deal itself which carried a 50% discount to the Company but according to my Board of Directors was the 'best we could do under the circumstances.' The major concern was a continued drop in our stock price although I was assured that stock sold under Regulation S was restricted for one year, and the price drop was not the result of shares coming back in to the Country in circumvention of the Regulation. I instructed CFO and his assistant to request a random sampling of the subscribers to ascertain and validate some degree of verification, no action was taken was taken that I could physically verify. I instructed my CFO and his coordinator to terminate the deal during a telephone conversation I made from Rome while presenting at a medical conference on or about November 26, 2002. I followed up with a face-to-face meeting the next week in my office upon returning from Europe. I was assured that no more shares would be sold. One week later I was presented with a sign-off form from Baladore that represented that more shares had been sold and in order to be reimbursed by Baladore, I was put into a compromise with my instructions. I signed for reimbursement for the additional shares that represented about 200,000 shares, then terminated the CFO's coordinator, who was handling the logistics for the current CFO.
I called a meeting of the Board of Directors during the same week and asked for the resignation of the CFO. It had been disclosed that not only was the CFO paying himself cash and shares through his own private company which had been represented as a public accounting firm in the past, but was actually a family property trust administered by Mr. Cantrell for and on behalf of numerous family members. During the meeting, I teleconferenced the opinion of our securities counsel, Mr. Larry Wilson, Esq who confirmed to Mr. Cantrell that his actions and inability to perform as CFO had put the Company, its directors and Shareholders in grave risk. Upon hearing advise from Mr. Wilson, Mr. Cantrell told the Board,...'if my actions have put the Board and the Company into risk, then I WILL resign.' He then asked for the weekend to consider his options. In order to accommodate this request the meeting was recessed until Tuesday, December 16, 2003.
On Tuesday, Mr. Cantrell and Ms. Dottavio presented themselves to the meeting. They were accompanied by Judge Ken Reilly and one of his police officers, (Officer Whitehead?). Mr. Cantrell asked the chair if he could have the floor stating that he not only would he not resign but made a motion to remove me from the Chair and my position as CEO. Obviously a takeover plan was in effect and Ms. Dottavio had prepared herself to cooperate with Mr. Cantrell's wish.
Judge Reilly then ordered me to hand over my keys, electronic pass card, and to empty my brief case in the presence of Ms. Dottavio and the Officer. I asked to return to my office in order to get advice of counsel, Mr. Wilson, who advised me to cooperate with the Officer. Not wishing to disturb the peace with an objection to this illegal act, as well subject myself to further abuse and humiliation I complied and both the Judge and the Officer escorted me from the building.
To summarize, not only was this entire affair a blatant attempt to distract me from my mission to served the Shareholders best interest, but was a conspiracy of deceit perpetrated with an act of judicial oppression, upon the Shareholders by an incompetent CFO and Director with direct conflict of interest in holding both positions. My services to the company are indispensable at this moment in time, and my absence from the Board and Chief Executive decision making puts the Company and its shareholders at risk and irreparable harm. My sole mission as founder, CEO, Chairman and major stockholder in this company is to put in place corporate governance that is congruent with the Sorbannes/Oxly Act, SEC, the laws of the State of Nevada and the Charter and Bylaws of the Company in order to continue toward the goal of returning maximum investment to my shareholders share value. This mission is being obstructed by two Directors who have either obstructed these attempts or are incapable of performing the duties required by the above.
I have advised my Auditors and my SEC counsel of my investigation. I have recited by assessment of potential violations of the Act and requested an exceptional audit on share sales. Whether or not this will take place is now in the hands of the new CEO, Ms Diane Dottavio and the CFO, Mr. Dwight Cantrell.
Very sincerely yours.
ENDOVASC, INC.
Dr. David P. Summers,
................................................................
Note below, the insider 'iveseenitall' posting on Endovasc's ragingbull.com board against SEC rules discouraging insider touting.He is posting on November 26,2003 and discussing a conference in Italy on that day.Note he denies being an insider then predicts and posts an Endovasc press release before it occurs.More important,note the date is November 26,2003.Note the letter above to the SEC from Dr.Summers exposing the boiler room share deal with 'Balador' of 'Arizona',which is really Bellador of Kuala Lumpur,gives the same day but a different year,2002.
Yes the letter above is real and written to real SEC officials in Dallas-Fort Worth office as my correspondence with the real Barbara Ray below will show.This confession by 'Dr.' David P Summers should have cracked the ENDOVASC FRAUD WIDE OPEN.WHAT HAPPENED,SEC ?
.............................................................
By: iveseenitall1
26 Nov 2003, 09:47 AM EST Msg. 2166 of 7690
(Msg. is a reply to by None.)
Keep posting baddogone! 2 straight days of relentless bashing has resulted in a hire opening today! LOL! Nice going sick puppy!
(Voluntary Disclosure: ST Rating- Strong Buy)
By: iveseenitall1
26 Nov 2003, 03:29 PM EST Msg. 2184 of 7690
(Msg. is a reply to by None.)
News before the bell? ;)
By: iveseenitall1
26 Nov 2003, 03:33 PM EST Msg. 2185 of 7690
(Msg. is a reply to 2175 by baddogone0.)
baddogone, when did I claim to be an insider????? I am a trader who makes tons of $$$ from buying this stock low and selling it high. It's such a simple game. You should try it sometime instead of wasting your time bashing this stock. Surely your time is worth something? No?
By: iveseenitall1
26 Nov 2003, 07:43 PM EST Msg. 2186 of 7690
(Msg. is a reply to by None.)
Ok,Ok, so it was after the bell!
EVSC To Present Liprostin Results in Italy Today
Wednesday, November 26, 2003 04:32 ET
Endovasc, Inc (EVSC: OTCBB) will present the results of Liprostin(TM) treatments in elderly critical limb ischemia patients at the conference of the Italian Society of Artero-Venous Pathology in Rome, Italy today. Professor Giovanni Brotzu, MD, will present the results of 18 patients treated over a three month period.
............................................................
From: Tony Ryals [mailto:tryals@angelfire.com]
Sent: Wednesday, February 18, 2004 8:24 PM
To: dfw@sec.gov
Subject: Re:Endovasc and Fraud
Dear Tom Baudhuin,Barbara Ray and Dallas Fort Worth SEC,
I am writing to ask if you could confirm or deny that the letter below posted on ragingbull message board is real or not.Did 'Dr.'Summers of Endovasc of Montgomery,Texas actually send it to you ? I have been sent a copy of a litigation in Montgomery,Texas by 'grimreaper'or 'birdy' aliases that seem to confirm that Dwight Cantrell and Judge Ken Reilly who have indeed taken over EVSC from Summers.The company tells usshareholders nothing but continues to pump and dump the stock.Their lies have caused me to lose 99% per cent of my investment and even that is in form of a 'cert' I can't use fostered on me by businesswire pr of late 2002 that claimed 'fanmed trial attorney discovered my broker Schwab had naked shorted me.
I now realise this was fraudulant lie to conceal their own share dumping after phony reverse split of July 2002 and consequent pumping of stock by James Dale Davidson through Agora's Vantage Point etc.Had I not had my shares confiscated from Schwab account in 2002with phony Nevada reverse split,it would have reached value of over $1 1/2 million during Davidson's pump dump rather than valueless 12,000 share cert I am stuck with now.You see I am in Guatemala and 'cert' sold by Alexander Walker and his'natco,is in California.I only watch it fade to nothing here due to Dwight Cantrell and insider dumping.Schwab bought me the cert all the while knowing Cantrell had given millions of shares to a Schwab account in advance for dumping.
AS SCHWAB 'MAKES A MARKET' IN THAT STOCK THEY HAD MORE TO GAIN FROM EVSC'S FRAUD BUSINESS THAN FROM MY ACCOUNT.
Oh ,by the way, I first sent a complaint to SEC in early 2003.I could look for the number but my name is Clarence Anthony Ryals.I have lost about$60,000 on this fraud alone.Also please note below letter the to you from 'Dr.' Summers I am trying to confirm is part of an evsc SEC filing from late 2003.It claims two 'consultants got millions of shares as early as May 2002 while I was being told it was a real reverse split and no mention was being made by the company that they were giving shares to 'consultans' to dump.On the contrary businesswire prs promoted the reverse split as being to qualify for AMEX and NASDAQ BOARDS.Also to fight the 'naked shorts.And I was told in prs that 'proportionate percentage' ownership would be maintained.These were all lies.
Another issue is that Schwab never told me a thing although they knew all the while what was happening. I believe even Scwhab Capital benefitted from insider info I never had.They let me their client be destroyed without so much as a heads up to EVSC lies about 'reverse split'. So another query I have is
can EVSC keep the names of the 'consultants' hidden from investors ? (They never mention their names only that 'consultants' got many shares that diluted their shareholder value.They can tell me this 2 years after the fraud and they can get away with having told me all the while 'famed trial attorney O'Quinn had discovered it was naked shorting ?!!
Please give me some feedback as to what is going on and whether letter to you from Summers is legit or not.Your names funny enough are the only things not purposely misspelled in the letter.I have received email from one person who tell me 'balador' boiler room mentioned by Summers out of Arizona is really Belladorgroup.com out of Kuala Lumpur!!! He had been 'cold called' by them in early 2003!! Did you know this ? Also I believe James Dale Davidson who pumped the stock through Vantage Point in November 2002 was one of the anonymous 'consultants' refered to in SEC filing below.
Could you influence Schwab to to confirm or deny whether the Schwab account that was filled-exchanged with shares by Cantrell and Summers in May 2002 was dumped in November 2002 when Davidson pumped ? My explanation of how I was defrauded by a 'naked short scam' is in comments to SEC re 'sho'.You can also see it by doing google search of 'naans' and'ryals',my last name.
I was born in Texas and when I invested in Stanford patent evsc holds I thought I was investing in America from Guatemala.I now believe Davidson sent that 'investment' to Bermuda,Bahamas,or Lichtenstein for all I know.If I don't know or can't find out how could U.S. gov ever claim to be
able to track 'terrorist' money flows ?
Sincerely,
Clarence Anthony Ryals
On Mon, 23 Feb 2004 10:47:26
dfw wrote:
Dear Mr. Ryals:
We cannot comment regarding a possible communication sent to this office.If a member of the public wishes to request information from theCommission's non-public files, you must file a Freedom of Information(FOIA)request with the Commission. Information about how to file a FOIA request can be found on the Commission's website at
http://www.sec.gov/foia.shtml.
Barbara Ray
Investor Assistance Specialist
Fort Worth District Office
817-978-3821
.............................................................
This just in from Mr.Marchant's KYC or offshorebusiness.com hints at more penny stock pump dumps involving LOM of Bermuda are yet to be revealed.Will Endovasc be one of them or was the Schwab 'select client' they protect another entity someone else ?:
LOM and CIBC sued for alleged securities fraud
October 6, 2004 Investment firm Lines Overseas Management, which is currently under investigation by three securities regulators, has been accused of fraud involving five more penny stock firms.
from recent Oct.2004 offshorebusiness.com abstract
............................................................
This 'scam warning' is probably a denial of wrong doing by the very ones who did it.Belladorgroup is the 'Balador' from 'Dr.Summers letter to the Dallas-Fort Worth SEC office.Belladorgoup has received warnings for its sleezy securities operations in Hong Kong etc.:
Endovasc Scam Warning
Dated: Friday, 9 January, 2004
Dear Client
We have been advised that one of our long-standing Clients has been contacted by a company called Bellador Institutional Services, offering to purchase Endovasc shares in exchange for shares of Advanced Micro Devices.
'Bellador Institutional Services' has no connection with our company, and is being operated as a fraudulent scheme to lure unsuspecting investors into wiring money to an account that has no connection with Bellador Advisory Services (Labuan) Ltd, or Endovasc Inc.
The client received a recommendation that he should exchange stock that he owns in Endovasc, Inc. for stock in Advanced Micro Devices, a company that has a very strong recent trading history. The request included a false claim that this company had inside information about ¡°bad news¡± that would soon be released about Endovasc which would allegedly cause the trading price to fall. The client was offered the opportunity to exchange shares of Advanced Micro Devices for Endovasc shares before the release of the alleged bad news, but was told that he would have to wire almost $7,000.00 U.S. to Union Bank of California that would be forward to an account at FBME Limited in Nicosia, Cyprus to complete the transaction.
This is a completely fraudulent scheme by a company that is not connected with the real Bellador Advisory Services (Labuan) Limited. We would never give this type of advice regarding the purchase or sale of securities. It would be a violation of the securities laws of the United States for us to provide information to you from insiders at Endovasc that is not generally available to the investing public and for you to purchase or sell stock based upon that inside information that, when released to the public, might affect the trading price.
This fraudulent company called Bellador Institutional Services has no connection with Bellador Advisory Services (Labuan) Limited. The Peter Taylor who is referenced in the communications from Bellador Institutional Services is not the Peter Taylor who is a director of Bellador Advisory Services (Labuan) Ltd. The money that you may be requested to wire will almost certainly wind up in the hands of criminals in Cyprus rather than being used to pay for shares of stock in a public company called Advanced Micro Devices.
All communications with you by representatives of Bellador Advisory Services (Labuan) Ltd will be from persons at our office who are known to you. All real transactions will be confirmed by the usual Transaction Confirmation letter with instructions for funds to be sent only to trust accounts of Logan & Geotas, PLC., our law firm in Phoenix, Arizona, USA. You will not receive wire transfer instructions that show a bank outside of the United States as a final destination. Cyprus has joined Nigeria and several former Soviet republics as centers of Internet fraud and the recent schemes seem to be targeting sophisticated, high networth investors.
Our Internet technology consultants confirm that we have a secure firewall on our servers and that the confidential information about addresses of our clients who previously purchased Endovasc stock has not been compromised. The matter has been reported to the two banks which were listed on the fraudulent wire transfer instructions.
We have notified Endovasc, Inc. of the attempted fraud. We have requested (and Endovasc has agreed) that all future communications of shareholder addresses between Endovasc and its stock transfer agent be sent by facsimile transmission rather than by e-mail to reduce the chance that confidential information about client addresses could be obtained by the interception of e-mail messages.
Please advise us if you have any concerns or issues with the above information, because we are treating this as a very serious matter and we are also advising our Regulatory Authority LOFSA (Labuan Offshore Financial Services Authority) in respect of this matter.
Bellador Advisory Services (Labuan) Ltd
Client Services Dept
...........................................................
Below from Endovasc SEC filings long since the 'reverse split' of July 2002(or May 2002 if you were an insider getting in on the scam and receiving shares worth 40 times their value overnight at the expense of 'regular' shareholders.)Note MIVT or 'MIV' below was coincidentally another penny pump scam out of Canada that James Dale Davidson and his gang bled dry by pump-tout promotion and the usual dumping of countless untrackable shares on investors they defraud.
For whatever reason Endovasc and MIVT made a 'deal' at all it was probably at Davidson's suggestion and yet another stock manipulation.And besides they could put out another press release pretend something big was occuring and dump more shares on suckers.
Note that in litigation with those they willingly did pump dump deals with in the past and sold shares to at super discount to dump and short 'regular' shareholders,that V Finance is mentioned.This is also I believe a market maker like Schwab Capital et.al.,only on a much smaller scale.It was mentioned by Carol Remond in her June article above as another that LOM of Bermuda held an account (no doubt to dump penny stock shares from),with them.
And we can be assured Mr.Davidson is familiar with them as he surely is with LOM even more so.:
................................................................
ITEM 5. OTHER EVENTS
- --------------------
On May 13, 2003 Endovasc, Inc.'s (EVSC), board of directors received
notification from MIV Therapeutics Inc. (MIV) that MIV would not be extending
its licensing agreement dated May 17, 2002 for the next year. All license fees
previously due before the cancellation have been paid in full.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ENDOVASC, INC.
(A NEVADA CORPORATION)
By:___________________________________________
Dr. David P. Summers, President and Chief
Executive Officer
DATE: MAY 20, 2003
This about the Stanford patent Endovasc used to con me and others among the many supposed pharmaceutical 'products' they never develop but use to con suckers into buying their shares.I guess they use shares to get into the Montgomery,Texas golf club as well.:
Angiogenix
Our Angiogenix technology promotes new growth of blood vessels (known as
angiogenesis and vasculogenesis), and has applications in the treatment of heart
disease, stroke, limb circulatory disease, and wound healing. Researches at
Stanford University discovered the technology during a 1999 study funded by the
Tobacco-Related Diseases Research Program of the University of California, the
American Heart Association, the National Institutes of Health and the Deutsche
Froschungsgemeinschkaft. While studying the damaging effects of tobacco smoke,
researchers discovered that smokers appeared less susceptible to deaths due to
infarction as compared to non-smokers. This counterintuitive discovery
suggested that low-dose (non-smoked) nicotine had extraordinary angiogenic
growth factor potential. To develop technology based on this unique discovery,
we obtained a worldwide exclusive right to the patent application for Nicotine
Receptor Agonist in February 2000.
Further study of our Nicotine technology revealed more conclusive results.
Experiments have shown that nicotine promotes angiogenesis and vasculogenesis in
areas of the body that are deprived of proper blood supply. Blockages of the
arteries that feed an organ, often caused by build-up of fatty material,
cholesterol and plaques in arterial walls, may deprive the tissue of proper
blood supply. These blockages reduce the body's ability to supply organs and
surrounding tissue with nutrients, particularly oxygen, which results in a
condition called ischemia. Ischemia reduces cells' ability to function and in
severe cases causes rapid cell death. The body naturally defends against
ischemia by reducing the work required from the affected area and attempting to
grow new blood vessels into the ischemic area. Stanford researchers found
tobacco smokers had significantly more growth of new vessels around such
blockages than non-smokers, apparently due to the therapeutic effects of
nicotine. Upon further analysis, researchers determined that nicotine could
recruit and mobilize the body's own quiescent stem cells that might provide a
method of treating and preventing a range of diseases and ailments involving
angiogenesis. These diseases, such as myocardial and cerebral infarction,
mesenteric or limb ischemia, common wounds, vascular occlusion, and vascular
stenosis, commonly called 'hardening of the arteries', affect millions of
persons every year in the United States alone (American Heart Association).
We estimate that the market for treatment of these diseases is over $5
billion. For example, we estimate that a course of treatment for coronary
ischemia utilizing Angiogenix(TM) drugs would cost approximately $10,000 to
$15,000. This type of treatment would be significantly less expensive and
intensive than current alternatives of angioplasty and or open heart surgery,
providing a 'biological bypass.' We hope to market a commercially viable
product using this Nicotine Receptor Agonist technology within three years.
10QSB Nov.19.2003
ITEM 2. CHANGES IN SECURITIES
- ------- -----------------------
Recent Sale of Unregistered Securities. During the three months ended
September 30, 2003, the following transactions were effected by us in reliance
upon exemptions from registration under the Securities Act of 1933 as amended
(the 'Act'). Unless stated otherwise, we believe that each of the persons who
received these unregistered securities had knowledge and experience in financial
and business matters which allowed them to evaluate the merits and risk of the
receipt of these securities, and that they were knowledgeable about our
operations and financial condition. No underwriter participated in, nor did we
pay any commissions or fees to any underwriter in connection with the
transactions. These transactions did not involve a public offering. Each
certificate issued for these unregistered securities contained a legend stating
that the securities have not been registered under the Act and setting forth the
restrictions on the transferability and the sale of the securities.
During the three month period ending September 30, 2003 we issued an
aggregate of 597,451 shares of common stock for services, which we valued at
prices ranging from $0.31 to $0.51 per share, with an aggregate value of $206M.
These transactions were exempt from registration pursuant to Section 4(2) of the
Act.
During the three month period ending September 30, 2003 we issued an
aggregate of 15,000 shares of common stock for cash at a price of $0.33 per
share, with an aggregate value of $5M. These transactions were exempt from
registration pursuant to Section 4(2) of the Act.
During the three month period ending September 30, 2003 we issued 1,585,535
shares of common stock for payment of liabilities at prices ranging from $0.35
to $0.39 per share and $618M in the aggregate. These transactions were exempt
from registration pursuant to Section 4(2) of the Act.
During the three month period ending September 30, 2003 we issued a total
of 55,518 shares of common stock upon the conversion of preferred stock. We did
not receive any proceeds from these transactions. These transactions were
exempt from registration pursuant to Section 4(2) of the Securities Act.
10KSB Oct.14,2003
LITIGATION
----------
On September 11, 2002 the Company filed a civil lawsuit styled ENDOVASC,
INC. v. J.P. Turner & Co. LLC et al, Number 02-CV-7313, in the United
States District Court, Southern District of New York. The complaint is for
damages as a result of an alleged fraud and stock manipulation. The Company
is seeking monetary damages in excess of $200,000. In a related matter, a
show cause complaint was filed against the Company on September 19, 2002
styled Balmore SA et al v. ENDOVASC, INC. A hearing was held on September
26, 2002 with the Judge issuing an unfavorable ruling against the Company.
The matter was settled through the issuance of 203,000 shares of the
Company's common stock. In another related matter, a show cause complaint
was filed against the Company on October 17, 2002 styled Laurus Master Fund
Ltd. et al v. Endovasc Ltd, Inc., Number 02- CV-8317, in the United States
District Court, Southern District of New York. This suit involves the
issuance of 430,476 shares of stock. This matter was settled through the
issuance of the Company's common stock to retire Series A Preferred
Convertible stock. In another related matter the Company has become a
defendant
Continued
F-10
ENDOVASC, INC.
(A DEVELOPMENT STAGE CORPORATION)
SELECTED NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
__________
(IN THOUSANDS, EXCEPT SHARE DATA)
8. LITIGATION
----------
in arbitration styled V Finance v. ENDOVASC, INC. This matter relates to
performance under a Funding Agreement. The Company intends to defend its
position vigorously as it believes it will prevail and, accordingly, has
not accrued any liability associated with this case in the accompanying
unaudited condensed financial statements.
9. JOINT VENTURE
-------------
In November 2002, the Company entered into an incorporated joint venture
agreement with MIV Therapeutics, Inc. ('MIV'). This 50/50 joint venture,
called Stentgenix, Inc., was created to primarily develop a therapeutic
coating for vascular stents.
Under the terms of the agreement the Company receives 2,500,000 shares of
Class A common stock of the joint venture in consideration for contributing
all of its rights, entitlement and interests in and to any and all coatings
for any applications, products and medical devices utilizing the Company's
Angiogenix technology. MIV receives 2,500,000 shares of Class A common
stock of the joint venture for cash consideration of $2,500 payable over a
three-year period, with $300 payable in the first year. If MIV fails to
make the required payments, one Class A share of common stock will be
returned to treasury of the joint venture for each dollar not paid.
............................................................
This is from SEC filing re Judge Ken Reilly's appointment to Audit and Compensation Committee that in email communication he denies ever occured.:
At a special meeting of the Board of Directors held on September 21, 2002, the
Board considered the appointments of an Audit and Compensation Committee. The
Board unanimously appointed Judge Ken Reilly as Chairman of the Compensation
Advisory Board and Ken Beverly as Chairman of the Audit Advisory Committee to
the Board of Directors. Previously announced Beuttenmuller, Bagrier and
Davidson, were made prior to the Sarbanes/Oxley Act, and were rescinded by the
Board until further review by the respective Chairman. On November 18, 2002, the
annual shareholders meeting took place at the Del Lago Hotel and Resort,
Montgomery, Texas, with all issues placed before the shareholders approved for
the coming year. In November and December 2002, the Company awarded contracts
to two (2) certified good manufacturing (cGMP) contract laboratories to
manufacture and validate both of the Company's pending Phase III drugs. Upon
completion and validation of each of the drugs for FDA requirements, an initial
new drug application (IND) will be filed with the FDA for Phase III clinical
trials. As of March 31, 2003, the products have been produced and are pending
cGMP release in June 2003 for Phase III trials on Liprostin. Phase III trials
for Angiogenix are expected to commence in the quarter ended December 31, 2003.
..............................................................
Below,EVSC litigation from 'Dow Chemical Company' for whatever reason,an insider or former insider named Creekmore who probably was into promotion,and a mysterious other from an attorney Pizzulli in Malibu representing Geotermica LTD.,whatever that is.Their complaint sounds unusually like mine but its hard to get those court records in L.A. for some reason and the law firm won't talk.:
10 QSB May 5,2004
6. LITIGATION
----------
On August 28, 2003, Cause No. 03-08-0681-CV, 'The Dow Chemical Company vs.
Endovasc LTD., Inc.,' was filed against the Company in the District Court
of Montgomery County, Texas, 359th Judicial District. Dow Chemical Company
('Dow') filed a complaint against the Company for breach of contract and
damages. The amount of damages sought is approximately $230,000. This case
is being vigorously defended against the allegations made by Dow. The
Company has also filed its own counter-claim against Dow for breach of
contract and damages. On March 31, 2004, a prediction cannot be made as to
the final outcome of the complaint and damages allegedly owed to Dow or to
the Company.
On November 7, 2003, Cause No. 03-11-08112-CV, 'Greg Creekmore vs.
Endovasc, Inc. and Endovasc, LTD., Inc.,' was filed against the Company in
the District Court of Montgomery County, Texas, 284th Judicial District.
Greg Creekmore ('Creekmore') filed a complaint against the Company for
breach of an employment contract between the parties. Creekmore seeks
payment of $114,000 plus interest, 1 million shares of the Company's common
stock and reimbursement of court costs including reasonable attorneys fees
allowed by law. This case is being vigorously defended against the
allegations made by Creekmore. On March 31, 2004, a prediction cannot be
made as to the final outcome of the complaint and damages allegedly owed to
Creekmore.
On January 13, 2004, Case No. H-03-5226, 'Lorenz M. Hofmann, Ph.D. and LMH
Associates, Inc. vs. Endovasc, LTD., Inc., Endovasc, Inc., David P.
Summers, Ph.D. and M. Dwight Cantrell' was filed against the Company in the
United States District Court for the Southern District of Texas Houston
Division. Lorenz M. Hofmann, Ph.D. and LMH Associates, Inc. ('LMH') filed a
complaint against the Company for breach of contract and damages. LMH seeks
payment of $91,859. This case is being vigorously defended against the
allegations made by LMH. The Company has also filed its own counter-claim
against LMH for breach of contract and damages. On March 31, 2004, a
prediction cannot be made as to the final outcome of the complaint and
damages allegedly owed to LMH.
In March 2003, Francis C. Pizzulli ('Pizzulli') filed a lawsuit against the
Company and others in the Los Angeles Superior Court Case No. BC291463
seeking damages for alleged breach of contract, damages for alleged
misrepresentations, and to invalidate a merger/reverse stock split of the
Company. The Company denied any and all liability in the lawsuit. Without
the admission of any liability by either Pizzulli or the Company, in
February 2004, the Company agreed to issue to Pizzulli 500,000 shares of
common stock of the Company to settle the lawsuit. The value of the stock
of $125,000 has been recorded in the accompanying income statement for the
three and nine-month periods ended March 31, 2004.
The Company is subject to certain other legal proceedings and claims which
arose in the ordinary course of its business. In the opinion of management,
the amount of ultimate liability with respect to these actions will not
materially affect the financial position, results of operations or cash
flows of the Company.
................................................................
below is stockpatrol.com article about S shares,and how SEC regulations plus lax enforcement in my opinion,aid offshore use of U.S.'penny stock' companies to orchestrate pump dumps and of course money laundering that goes hand in hand.:
OT: BEWARE THE EVIL TWINS
September 22, 2004
We offer this disturbing thought. The federal securities laws, the very rules that were calculated to discourage deception and protect investors, provide a pair of mechanisms that fuel fraudulent stock schemes. Or, to put it slightly differently, securities laws that are designed to foster transparency and disclosure instead protect silence and deception.
One fundamental precept underlies our federal securities laws - investors must be given access to material information about public companies and the people who run and control them. Yet two federal regulations not only ignore that mandate but tolerate secrecy.
What are these tools that can be used to distribute stock clandestinely to the four corners of the globe, conceal identities, launder funds, and defraud investors? They are every con artist's dream and every law enforcement official's nightmare - and they share a common root, the letter 'S.' They are Regulation S, which allows U.S. public companies to sell stock overseas without registration, and Form S-8, which enables companies to register shares instantly.
When they were first enacted, these two regulations were relatively benign, but promoters and manipulators have discovered ways to utilize both Regulation S and Form S-8 to further illicit schemes.
Regulation S
Regulation S was crafted as a safe harbor that allows public companies to sell shares to non-U.S. citizens. In essence, while regulators wanted to assure that U.S. investors had adequate access to information about public companies, non-U.S. residents were not afforded the same protection. Those non-U.S. residents would be permitted to buy and sell shares, among themselves, even though the issuer had never registered those shares with the SEC.
In other words, companies were given license to do abroad what they could not do at home - dump shares on the marketplace without registration or disclosure.
Why would lawmakers, who so carefully crafted securities laws that demanded both registration and disclosure, also create this massive loophole in the system? Perhaps they truly wished to provide the international community easier access to U.S. public companies, or, conversely, they wanted to afford those public companies the ability to attract foreign capital. Cynics might say that American lawmakers were willing to overlook the impact on foreign investors so long as they could maintain order in their own home.
Whatever the rationale, Regulation S has engendered a booming business, particularly for small, struggling companies who are desperate for funding at any cost. Those companies, many of which trade on the OTC Bulletin Board or the Pink Sheets, have been willing to sell stock to overseas investors, at a deep discount from prevailing market prices, under Regulation S.
To qualify for a Regulation S exemption, the shares must be sold offshore to a non-U.S. resident, and may not be sold back into the United States for one year. Those requirements are not as stringent as they may seem at first blush. The U.S. market is foreclosed to re-sales for one year, but that leaves the rest of the world - and the market for U.S. public companies is thriving around the globe.
Boiler rooms operating in Europe and the Far East aggressively hawk Regulation S shares. Consider the case of the Brinton Group, which operated out of Bangkok, Thailand and other locations in Indochina.
In September 2001, a small over-the-counter company called Oasis Resorts International Inc. announced plans to sell $15 million of its stock to the Brinton Group under Regulation S. In exchange, Oasis was to receive $4 million in cash and 1.1 million shares of another obscure OTC company, Virtual Gaming Technology.
The public records do not indicate that Oasis ever received the cash. In fact, when it stopped filing public reports in 2001, the Company had a working capital deficit of $6.4 million. On June 8, 2004 the SEC revoked Oasis's registration because of the Company's failure to file financial reports.
There is little doubt, however, that Brinton was issued the Oasis stock - and proceeded to dump it on unsuspecting investors in the Far East and Australia. According to a November 19, 2001 article in Time Asia, the Brinton boiler room prodded Australian investors to buy Oasis shares by telling them that the Company was a global casino operation run by the team that had set up a restaurant chain featuring Gary Coleman, the diminutive star of the 1980s TV show 'Diff'rent Strokes.' They did not bother to mention that the only jewel in that chain was a failing restaurant in Denver, Colorado.
Brinton was also peddling Virtual Gaming stock. In all likelihood that included the Virtual Gaming shares that had been handed out to Oasis as part of the Regulation S deal. Virtual Gaming was an internet gambling firm run by one Virgil Williams, who was once tied to a boiler room scam in San Diego, California.
Brinton's activities were interrupted in July 2001 when the firm was raided by a task force that included the Securities and Exchange Commission of Thailand, the FBI, U.S. Customs, the Royal Thai police, the Thailand Anti-Money Laundering Office, the Thai Immigration Bureau and the Australian Federal Police. Thai authorities charged Brinton with running an unlicensed securities firm and engaging in fraudulent activities, including the use of high-pressure sales tactics.
Despite that raid, Brinton, and other boiler rooms utilizing the same aggressive sales techniques, continued to sell stock. On June 10, 2004, a Thai court convicted seven individuals who ran the Brinton Group - and a trio of other boiler rooms - of illegally selling securities.
Other regulation schemes have a distinctly different flavor - but they all have the same goal, to dump unregistered stock on the market. One recent Regulation S manipulation centered on an individual named David Wolfson, who apparently inherited his affection for stock scams from his father Allen. Allen Wolfson has been named in multiple SEC and criminal stock fraud suits and was convicted in March 2003 of scamming investors out of $7 million.
David Wolfson, as regulators discovered, is quite a chip off the old block. Earlier this year he and his cohorts were charged with orchestrating a massive Regulation S scam. The SEC says that Wolfson and his colleagues found struggling U.S. companies that were hungry for cash (and occasionally formed the companies themselves) and then arranged for them to sell stock to a British Virgin Island corporation called Sukomo at a deep discount - 30% of the bid price.
Since Sukomo was purportedly a non-U.S, citizen, the stock was sold without registration under Regulation S. There were a few problems with this setup, as the SEC discovered. First, Sukomo was actually a boiler room operating from Laos and Thailand - so its agenda was clear. It wanted stock to dump on overseas investors. Second and more important as far as Regulation S is concerned, Sukomo may have been a non-U.S. resident but it never was a bona fide purchaser. In reality, Sukomo was simply acting as a broker and the proceeds from its boiler room operation were going back to Wolfson, his colleagues, and to a lesser extent, the issuing companies.
Regulation S also has been used to fuel schemes concocted by U.S. residents who established phony offshore companies to act as Regulation S buyers. Those Regulation S. shares quickly found their way back into the U.S., long before the one year holding period expired.
In other words, Regulation S is an invitation for abuse. Its potential harm far outweighs its actual benefit.
Form S-8
The S-8 Registration Statement is rapidly becoming the weapon of choice for stock scams. It is quick and effective and takes advantages of a glaring loophole in the federal securities laws.
Form S-8 allows public companies to register shares that have been, or will be, issued to directors, officers, employees and consultants - instantly, with minimal disclosure. Here is how it works. A company that wishes to register securities begins by filing a Registration Statement with the SEC. In most cases, the SEC reviews that Registration Statement, issues appropriate comments, asks pertinent questions and requires reasonable clarification. Then, after the company provides satisfactory responses to these questions, the SEC allows the Registration Statement to be declared effective, and permits the sale of the securities.
This process is designed to protect investors by ensuring that they receive ample information about the company in which they are about to invest.
Form S-8 abandons that protection and leaves investors to fend for themselves. An S-8 Registration becomes effective immediately after it is filed with the SEC, before it is reviewed by anyone. In an instant, the shares are registered and may be sold. Let the buyer beware.
Rather than provide detailed disclosure, Form S-8 includes fragmentary information, including the number of shares being registered. The company's financial condition is rarely presented in detail. Instead, the Form S-8 incorporates prior financial statements 'by reference.' As a practical matter, few investors will bother to review those earlier documents.
The absence of meaningful disclosure is only one of the disturbing features of Form S-8. Here is another. The company is not required to identify the individuals who will be receiving shares. Instead, the shares may be registered for a generic 'Employee Benefit Plan.' Which employees will 'benefit' from that plan? The company is not required to identify the potential recipients when the Form S-8 is filed. And while companies are supposed to amend each Form S-8 to add the names of the new stockholders as shares are issued, they rarely do.
In reality, the recipients of shares may not be employees at all - and that is another distressing feature of S-8. Under the statute that controls this registration form, employees may include 'consultants' and 'advisors' - opening the possibility for shares to be distributed to a host of individuals with mere marginal connection to the company.
And the company is never obligated to account for the services rendered by those consultants in consideration for the stock.
The impact of these registrations can be seen in dozens of Form S-8 Registration Statements filed each week. Consider this example. A company, called Bach-Hauser, has made a business out of issuing S-8 shares. In fact, so far this is the only discernible business developed by the Company, despite a seemingly endless stream of consultants.
Since early 2000, Bach-Hauser has filed twenty three Forms S-8, registering more than 220 million shares issued to consultants, including a variety of lawyers. What have all these consultants been doing for Bach Hauser? The proof, as they say, is in the pudding, and Bach-Hauser's bowl remains quite empty. The Company has no business and no revenues.
Although Bach-Hauser initially named the consultants who had been issued shares, in recent years they have adopted a practice - followed by most small companies - of registering shares for unidentified recipients under an Employee Benefit Plan.
Bach-Hauser is a glaring example of the way Form S-8 has been used to flood the market with shares. It is hardly alone. Virtually every day, tiny companies issue mounds of shares to unidentified individuals for unspecified services - and it is all within the letter of the law.
But the common use of these two rules, Regulation S and Form S-8, hardly reflects the spirit of disclosure that is at the foundation of federal securities regulation. Instead, these twins seem destined to leave investors in the dark.
Just imagine if lawmakers had conceived triplets.
©2004 Stock Patrol .com . All rights reserved.
Reg S,SEC,and Stem Genetics:
On October 16, 2003, the Securities and Exchange Commission filed a Complaint in the United States District Court for the District of Utah, against twenty-one individuals and entities involved in a scheme to sell securities in five United States-based microcap issuers to hundreds of investors located primarily in the United Kingdom, Australia and New Zealand through a boiler room located in Vientiane, Laos. The Complaint alleges that since late 2002, hundreds of overseas investors have been defrauded by a scheme organized by David M. Wolfson and Gino Carlucci of Salt Lake City, Utah, and Sukumo, Ltd. of Vientiane, Laos. It is further alleged that Sukumo raised at least $16 million from more than 1,100 investors by selling restricted Regulation S shares in Stem Genetics, Inc., F10 Oil & Gas Properties, Diversified Financial Resources Corporation, Valesc Holdings, Inc., and NCI Holdings, Inc., with 70% of the offering proceeds wired to Sukumo and 15% to 20% of the proceeds wired to Wolfson or entities under his control. It is further alleged that Wolfson and persons affiliated with F10, Diversified and Valesc manipulated the prices of those securities in trading on the OTC Bulletin Board, thereby inflating the price Sukumo charged investors. Finally, it is alleged that Stem Genetics, F10, Diversified, Valesc and NCIH, aided and abetted by certain of their officers, made false filings with the Commission and that those officers falsely certified the filings of the issuers when those filings contained material misrepresentations and omitted to state material facts.
In making its sales of securities Sukumo allegedly misrepresented the amount of its commissions by telling investors, orally and in writing, it was receiving only 2% of the sales price of the stock rather than the 70% it was actually receiving. Sukumo also allegedly failed to inform investors the stock they were purchasing was restricted stock. The issuers allegedly stated in their filings that Sukumo was purchasing shares from the issuers when, in fact, it was simply acting as a sales agent for the issuers for a 70% commission. The issuers also allegedly failed, in some or all of their filings, to disclose that Wolfson and the entities controlled by him, NuWay Holding, Inc., Momentous Group, LLC, and Leeward Consulting Group, LLC, were receiving 15% to 20% of the offering proceeds. In addition to these misrepresentations, it is alleged that Stem Genetics and its chief executive officer, Howard Robertson, made material misrepresentations on the company's web site concerning Stem Genetics's business operations. Finally, F10, Diversified and Valesc allegedly failed to disclose that the price of their stock was being manipulated in trading on the OTC Bulletin Board. It is alleged that the price of F10 stock was manipulated by Wolfson, Momentous, Jon R. Marple, the son of F10's principal officers, and by his company Grateful Internet Associates, LLC. It is alleged the price of Diversified stock was manipulated by John Chapman, Diversified's chief executive officer. It is also alleged the price of Valesc stock was manipulated by Jeremy D. Kraus, Valesc's chief executive officer and by Samuel Cohen, the company's chief financial officer.
The Commission seeks the entry of temporary restraining orders against Sukumo, which is also known as The Sukumo Group, The Fujiwara Group, First Chartered Capital Corporation, First Colonial Trust, First China Capital, and International Investment Holding, and Michael Sydney Newman, its control person. The Commission also seeks the entry of preliminary and permanent injunctions against Wolfson, Carlucci, NuWay Holding, Inc.; Momentous Group, LLC; Leeward Consulting Group, LLC; Stem Genetics, Inc.; Howard H. Robertson, M.D.; G&G Capital, LLC; F10 Oil and Gas Properties, Inc.; Jon H. Marple; Mary E. Blake; Jon R. Marple; Grateful Internet Associates, LLC; Diversified Financial Resources Corporation; John Chapman; Valesc Holdings, Inc.; Jeremy D. Kraus; Samuel Cohen; NCI Holdings, Inc. Asset freezes are sought against all defendants except Diversified, Chapman, Valesc, Kraus and Cohen.
The Complaint alleges all the defendants in the action have been violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. In addition, the Complaint alleges F10, Diversified, Valesc and NCIH have been violating the issuer reporting provision of Section 13(a) of the Exchange Act and that: F10 and Valesc violated Rules 12b-20, 13a-1 and 13a-13 under the Exchange Act by filing false annual and quarterly reports; Diversified violated Rules 12b-20, 13a-1, 13a-11 and 13a-13 by filing false annual, current and quarterly reports; NCIH violated Rules 12b-20, 13a-11 and 13a-13 by filing false current and quarterly reports. The Complaint also alleges that Jon H. Marple and Blake aided and abetted F10's reporting violations and that they violated Rule 13a-14 under the Exchange Act by falsely certifying those reports. Kraus and Cohen were charged with aiding and abetting Valesc's reporting violations and with falsely certifying its filings. The Complaint also alleges that Carlucci aided and abetted NCIH's reporting violation and that he falsely certified its filings.
On October 16, 2003, the Honorable Dale A. Kimball, United States District Judge, granted the Commission's application and issued a temporary restraining order, asset freeze and the other requested relief. Judge Kimball also scheduled a December, 2003, hearing on the Commission's application for a preliminary injunction.
SEC Complaint in this matter
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This from Christopher Byron,'Hedge Fund Hijinks',of New York Post explains how open loopholes such as Regulation S that encourage or aid and abet fraudulent activities including money laundering through stock share manipulation and concealment have existed for years almost as if on purpose to give international criminal elite the right to defraud ordinary Americans and other investors who buy shares of penny stocks on the open market:
'So it was great to read the other day that the new chairman of the Securities and Exchange Commission, William Donaldson, seems to agree that something really does need to be done before things get any worse.
'To that end, Donaldson told a Senate committee last week that the SEC will hold public hearings next month regarding the hedge fund industry. The purpose: to begin drafting regulations designed to increase the visibility of what these secrecy-obsessed investment vehicles are actually doing with their clients' money. The goal is not to tell the funds what they can and cannot invest in, but simply to make their investing activities more visible to everyone.
'Thus, in the helpful spirit of suggesting the sorts of activities the Commission might usefully look into, how about a cold, hard look at what everyone I know in this field refers to as the 'Reg. S scam.'
'Put simply, Reg. S is how penny-stock promoters set themselves up for a killing by selling unregistered and otherwise illegal stock to foreigners under a misguided 1990 amendment to the Securities Act of 1933 known as 'Regulation S.'
'Though the funds hide their tracks well, folks familiar with the offshore hedge fund game say that funds based in places like Tortola and Switzerland are becoming increasingly important customers of worthless Reg. S shares, which they dump back onto the U.S. market as soon as it is legal to sell the shares.
'Yet before getting into the specifics, first some background as to what Regulation S actually is, and why it was enacted in the first place.
'So-called Reg. S was adopted, in a fit of deregulation excitement at the start of the 1990s, to let U.S. companies sell stock quickly and cheaply to foreign investors, without having to go through the time-consuming and costly work of filing an SEC registration statement to sell the shares directly into the U.S. market.
'Now we'll just sidestep the question of why Washington apparently thought foreign buyers were some kind of lower life form who didn't warrant the protections of full financial disclosure given to U.S. investors, and we'll simply note that because of the way the law was written, penny-stock promoters quickly came running. Reg. S became a way for them to sell worthless microcap stock to foreigners, who could then sell it right back to gullible Americans.
'Since the law's enactment in 1990, the SEC has tried periodically to crack down on such practices, and in 1997 it amended the rule to require investors in Reg. S shares to hold them for a full year before being allowed to resell them to U.S. investors.
'But extending the holding period hasn't really changed much of anything, as evidenced by the thriving business that continues unabated in Reg. S offerings. A search of the SEC electronic database reveals that more than two dozen obscure and troubled companies on the OTC Bulletin Board sold Reg. S shares to foreign investors last year.
'And that sum doesn't include the countless more companies that are so small and obscure they aren't even registered with the SEC, yet they continue to use Reg. S - entirely legally - to flood overseas markets with stock that cannot be sold in the United States at all...............
'Who is buying the trash? My sources say the customers are increasingly turning out to be offshore hedge funds, which are stocking up anonymously on these penny-stock versions of weapons of mass destruction, to drop them on the market if and when the issuing companies ever do register with the SEC for their shares to become free to trade in the United States.
So here's hoping the SEC will begin looking into this matter, as well as into the many others that now characterize the hedge fund game, when the Commission holds its public hearings on hedge fund hijinks next month.
http://www.nypost.com/business/73344.htm
© 2003 The New York Post
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Yet these near unregulated or unaudited penny stock frauds sometimes don't even bother with Reg.S or registration at all before dumping on a gullible and defrauded penny stock buying public who fall for their lying touts or promotions that the fraudulent management feel is justified under 'safe harbor protections but or not or should be,considering the obvious lies in their press releases. And often the transfer agent is paid well for his collusion and no one not even the SEC knows how shares outstanding the are dumping or selling to dumpers on this uncontrolled and unregulated 'market'.
REPORT #429 September 2001
EUROPEAN UNION AND THE USA BANKS ( OECD ) AND GOVERNMENTS are KING OF MONEY LAUNDERING WORLD WIDE - The Octopus Lair is the OECD
By Christopher Byron, (from the Belize Culture Listserve)
Sept. 24 Û In his speech to the nation last week, President Bush said a key element in America's new all-out war to eradicate terrorism will be to identify and cut off the sources of financial support for terrorists. Bush repeated the message Monday, announcing that he had signed an executive order freezing the financial assets of several alleged charities that evidence suggests are actually fronts for the al-Qaida network. But actually achieving the goal of cutting off the terrorists from their sources of financial support may well prove more difficult than anyone expects, requiring investigators to probe deep into the offshore activities of AmericaÌs mightiest banks and the financial affairs of many of AmericaÌs leading public figures.
OVER THE YEARS, the worlds of terrorism and dollar-based global finance have in fact become so entwined that no less a figure than Bush himself appears at one point in his career as a private businessman to have been unwittingly involved financially with associates of a Persian Gulf banker named Khalid bin Mahfouz. Mahfouz has now been identified in press reports as a source of financial support for an al-Qaida charitable front , a powerful example of just how far the tentacles of terrorist-linked offshore money have reached into the fabric of American finance.
More about that in a minute. For now, it is enough to know that as a result of the unregulated worldwide growth of offshore banking, international business and finance is rife with such entanglements.
DOLLAR'S KEY ROLE
All this is due to the pivotal role that the U.S. dollar has come to play in global financial affairs. That role alone makes the United States the most influential power on Earth. It also makes the nation itself vulnerable to political, social and economic pressures far beyond the countryÌs sphere of influence, or even reach.
Over the years, the dollar has emerged as the only truly global currency and is freely accepted in countries everywhere as a de facto local currency for commercial transactions. According to a report this month by the Federal Reserve, there is approximately $550 billion in U.S. currency now in existence, with roughly half of it in the hands of foreigners. Some 90 percent of all $100 bills in circulation are held by foreigners.
It is this money , a sea of stateless wealth that has been growing relentlessly for more than 40 years , that has enabled some of the vilest criminals in the world to move into, infect and spread throughout the U.S. banking system.
Cocaine traffickers from Columbia, Bolivia and Peru. Opium smugglers from Afghanistan. Arms dealers from Europe. Penny stock swindlers from Canada. Crooked bankers from the Persian Gulf. They are all part of a global criminal underworld that traffics in human misery. They take their profits in dollars, and, like any free-enterprise capitalist, they like nothing better than to put those dollars safely away in U.S. bank accounts, brokerage accounts and even real estate.
The entry points into all these markets are the offshore banking centers of see-no-evil countries like the Cayman Islands, the Netherlands Antilles, the Bahamas, Luxembourg, Switzerland, Austria and the Pacific island nation of Vanuatu, which is the size of Connecticut and has only 4,000 telephones in the whole country but operates a bustling international financial center.
These are the places where the international criminal underworld spiffs up its money in a clean suit of clothes to go shopping in America. This is possible because the biggest and most sophisticated multinational banks in America , the nation's so-called money center banks , are there waiting to serve them, operating what amount to financial Laundromats that take the stink off the cash.
THRIVING OFFSHORE BRANCHES
Why are U.S. banks operating offshore branches and subsidiaries in these places to begin with? The most frequently cited reason is that these countries have, for a variety of reasons, developed into attractive domiciles for U.S. multinational companies seeking to conduct business in non-U.S. markets and not send the profits back to the United States. So the banks simply followed their corporate customers to these palm-shaded islands.
But many of these countries quickly realized they could attract yet more capital by enacting bank secrecy laws that prevent foreign governments , namely, the United States , from discovering the identities of people who set up local shell companies as incorporated businesses, then use the shells to hide income that hasnÌt been taxed.
These shell companies, which often call themselves banks as well, began setting up 'correspondent' banking relationships with the U.S. money center banks, further confusing the picture. Soon, the secrecy alone became reason enough to go there.
African and Latin dictators began hiding their plundered loot in the same offshore banks where the Euro-dollar financing subsidiaries of Fortune 500 insurance companies were also doing business , along with Medellin cocaine traffickers, Mafia torpedoes and insider traders on Wall Street.
There are now more than 4,000 'offshore banks' in the global banking system. In the Cayman Islands, 570 'banks' have put their names on doors in the countryÌs capital city of Georgetown, but nearly 100 of them are nothing more than mail drops. Typically, these shell banks have no real physical presence anywhere, and are simply make-believe entities created by criminals ranging from tax evaders to drug-trafficking army generals.
A two-year Senate study makes it no longer possible to deny what everyone has known all along ... big, money center banks like Citicorp, JP Morgan Chase, and Bank of America have so completely ignored the 'know your customer' rule of prudent banking that the entire business of offshore banking has been compromised.
There are 65 such shells in the Bahamas, and more are springing up every day and in places like Montenegro, Vanuatu, even in a place called Nauru, a 21-square-mile sandbar in the middle of the Pacific Ocean. Nauru has one radio station, 500 TV sets and 12,000 people. It, too, is now a hub of global finance.
All of this has gone on for so many years and decades that it is simply no longer possible to sort out the tax evaders and the criminals from the legitimate business people. And by and large, the major money center banks no longer bother to try Û not that they ever tried very hard.
BANKS DON'T KNOW CUSTOMERS
The banks insist that their activities in these offshore money centers are legitimate and proper, and they dismiss each new instance of money laundering that surfaces as being an isolated case.
But the evidence is overwhelming that the banks have no desire to find out who specifically they are doing business with , and what their customers' backgrounds actually are , before providing them banking services that, in effect, put a criminal's money through the spin cycle.
Now, a two-year study by a Senate Committee chaired by Michigan Democrat Carl Levin makes it no longer possible to deny what everyone has known all along: that big money center banks like Citicorp, JP Morgan Chase and Bank of America have so ignored the 'know your customer' rule of prudent banking that the entire business of offshore banking has been compromised. One U.S. banker is quoted in the study as telling Senate staff investigators, 'There is no reason for offshore banking to exist if not for tax evasion, crime or whatever.'
Said the Levin report, which was published in February to almost no attention in the press: 'U.S. banks, through the correspondent accounts they provide to foreign banks, have become conduits for dirty money flowing into the American financial system and have, as a result, facilitated illicit enterprises, including drug trafficking and financial frauds.' The report specifically named Citicorp, Chase, and BOA as among those that have, by their sloppy practices, opened 'a significant gateway into the U.S. financial system for criminals and money launderers.'
The findings in the Levin report are astonishing. Twenty money center banks were examined by staff investigators. Collectively, the banks had more than $500 billion in assets on their books, 90,000 employees on their payrolls and operations in more than 35 countries around the world. Nearly every bank surveyed had extensive 'correspondent' banking relationships with offshore entities and shell-type operations , in the majority of cases running to well over 1,000 such relationships with shells. One bank alone was processing more than $1 trillion daily in foreign wire transfers at the time the staff investigators turned up.
In an early interview with investigators, Chase Bank, which has one of the largest networks of correspondent banking relationships in the country, claimed that U.S. banks don't even open accounts for small foreign banks in obscure jurisdictions.
In fact, the opposite is true. Investigators eventually found that Chase itself was processing the illicit proceeds of Internet gambling through an obscure correspondent bank in Antigua.
Nor was that all. Under questioning, one Chase banker disclosed that the bank really did not know the first thing about many of its offshore customers. The employee told investigators that she herself was responsible for the bank's correspondent relationships with 140 offshore outfits but that she had never actually visited more than 25 to 30 of the larger ones. The small ones were simply ignored.
More than 4,000 'offshore banks' have by now barnacled themselves onto the global banking system. In the Cayman Islands, 570 'banks' have their names on the door somewhere in the countryÌs capital city.
The banker told investigators she had never received any anti-money-laundering training from Chase, that she had never been trained in due diligence analysis, that the bank had no standard forms for conducting due diligence and that there were no internal procedures whereby she was ever notified of countries, or correspondent banks, of which she ought to be suspicious when opening accounts.
The Levin report overflows with such stories. There was the Miami bank , Security Bank N.A. , which disclosed that for almost two years it simply looked the other way as more than $50 million worth of proceeds from financial fraud, Internet gambling and money laundering flowed through its books courtesy of an offshore outfit bearing the name British Trade and Commerce Bank.
Or consider the $2.7 million in drug money that the Bank of New York processed for a small offshore bank in Columbia and the Bahamas, British Bank of Latin America. Or the claim by Bank of America that it did not know, until investigators from Levin's staff alerted it, that an offshore bank in St. Kitts was using it to launder hundreds of millions of dollars per month in illicit proceeds from Internet gambling. Citibank never bothered to find out the source of money moving through it via a Cayman Island shell bank that was actually laundering drug money via Argentina, according to the report. Citibank let 'hundreds of millions of dollars' flow through it even after receiving a seizure order from U.S. law enforcement targeted at the accounts of the Cayman bank , M.A. Bank.
Or consider the case of Harris Bank International, which made a point of never asking its offshore correspondent clients who they were doing business with. In this way, Harris wound up doing business with an offshore outfit known as Standard Bank Jersey Ltd., apparently not realizing that Standard Bank, in turn, was handling accounts for a shell bank named Hanover Bank, which was engaged in processing millions of dollars associated with financial frauds. The report says Harris Bank told the investigators it had no idea whom else Standard Bank might have been doing business with and that it had no immediate plans to find out.
These dealings are but a fraction of the questionable financial transactions that began growing following the Yom Kippur War and the quintupling of oil prices in the early 1970s.
The price surge transferred financial leverage from the money capitals of New York and London to Persian Gulf states like Bahrain that few people in the West had ever heard of before. The result? Western businessmen and bankers proved only too eager to curry favor with people who, overnight, seemed to have the wealth of the pharaohs spilling from their pockets.
SECRET MONEY
In the mid-1970s, an obscure Saudi money man named Ghaith Pharaon began investing large sums in U.S. banks, first in Detroit and Houston, and then, in 1977, in the National Bank of Georgia, which he acquired from Jimmy Carter's one-time director of the Office of Management and Budget, Bert Lance.
Only later was it learned that Pharaon was actually a front man for a Pakistani financier named Agha Hasan Abedi, who presided over an outfit bearing the name Bank For Credit & Commerce International. This institution, ostensibly based in Pakistan but with its main offices in London and New York, was in turn bankrolled by moneymen from Saudi Arabia. Among the fat cats were top members of the Saudi royal family and even the Croesus-rich head of Saudi ArabiaÌs intelligence service, Kamal Adham, a brother-in-law of King Faisal.
The bank , whose false bookkeeping and impending collapse first came to public attention as a result of an expose I published in New York Magazine in June of 1991 , turned out to be a colossal criminal enterprise that touched nearly every country on Earth. The bank was engaged in widespread, pandemic bribery of officials in Europe, Africa, Asia and the Americas. It laundered money on a global scale, intimidated witnesses and law enforcement authorities, engaged in extortion and blackmail. It supplied the financing for illegal arms trafficking and global terrorism. It financed and facilitated income tax evasion, smuggling and prostitution.
Its main means of operation? Secrecy , the secrecy that came from acting through BCCI-controlled shell companies in every offshore banking center in the world, the exact same modus operandi employed by thousands upon thousands of crooked offshore banks to this very day.
BUSH UNKNOWINGLY TIED IN
Through its fronts and various other disguises, BCCI penetrated the top-most echelons of American business, co-opting and exploiting many of the most visible and influential public figures in America. They ranged from former Secretary of Defense Clark Clifford, to Robert Magness, the founder and chairman of the nationÌs largest cable television company, TCI Inc. For his part, Magness wound up serving as the titular head of a shadowy commodities trading company, Capcom Inc., which laundered billions of dollars of offshore money through the commodities markets of Chicago.
For a period in the 1980s, the bank's tentacles even touched George W. Bush. This occurred when Bush , who at that point had not yet entered politics, but whose father was vice president in the Reagan administration , sold a small and struggling oil company he had started to a Texas wildcatting outfitter named Harken Energy, which was not much bigger than BushÌs outfit. Doing so set in motion a chain of events that wound up entangling Bush, briefly but awkwardly, in the affairs of not just BCCI but of the bin Laden family itself.
BIN LADEN CONNECTION
One of Bush's original partners in his oil company - which initially bore the name Arbusto Corp. , had been a fellow named James Bath. Bath in turn had contacts in the Middle East and was actually named in a 1976 trust document as the Houston business representative for none other than Salem M. bin Laden, a half-brother of the infamous Osama bin Laden, who is accused of masterminding the terrorist attacks of Sept. 11.
Several published reports from the early 1990s quote an associate of Bath's named William White , himself an Annapolis graduate and Naval fighter pilot , as claiming that Bath was actually involved in a secret conspiracy to funnel Saudi money into the United States and that he has worked as a CIA liaison to Saudi Arabia since 1976 Û the year when Bush's father, George H. W. Bush, became head of the CIA. White is quoted as saying that Bath ran an aviation business and obtained several aircraft from the CIA. Bath was quoted as denying any involvement with the CIA. In 1988, Salem bin Laden was killed in Texas in a private-plane crash. There has been much conjecture , but no established facts , as to the reasons for, or circumstances of, the crash.
In any event, Houston-based Bath ran a Cayman Islands-based aviation business bearing the name Skyway Aircraft Leasing Ltd., which was actually owned, according to a court document, by a wealthy Saudi banker named Khalid bin Mahfouz. In 1977, Mahfouz , who was reported by The Wall Street Journal in 1999 to be undergoing treatment for drug abuse , joined up with the previously mentioned Saudi front man for BCCI, Ghaith Pharaon, and became an investor in a small Houston bank, Main Bank of Houston, in which Bath himself held a stake.
When Harken needed capital to expand, Bush got a $25 million infusion from the Union Bank of Switzerland, via an Arkansas investment banker named Jackson Stephens. Few people at the time had yet even heard of BCCI, but Bush would doubtless have been astonished to learn that he was being surrounded by people with ties of one sort or another to the biggest and most crime-infested bank in the history of world capitalism.
For starters, Jackson Stephens, head of the Little Rock investment firm that bears his name, would eventually be named as the promoter of a deal in which BCCI attempted, through various front men, to take over the largest bank in Washington D.C. Bush would also have been astonished to learn that the Persian Gulf patron of his oil patch pal, James Bath , Mr. Khalid bin Mahfouz , was himself an early and large investor in BCCI. Finally, he would doubtless have been surprised to learn that the bank that actually cut the $25 million check for Harken , an outfit bearing the name Banque de Commerce et de Placements , was in fact only half owned by Union Bank of Switzerland. The other half was owned by BCCI.
Those facts would certainly have eliminated much of Bush's presumed surprise when he subsequently learned that no sooner was the Harken financing completed than Union Bank of Switzerland sold its interest in Harken to a Saudi real estate developer named Abdullah Bakhsh, whom The Wall Street Journal has described as a 'sometime business associate of BCCI figures Ghaith Pharaon and Khalid bin Mahfouz.'
As for Mahfouz, who was fined $212 million by the United States for his involvement in BCCI and barred from any further activities in the American banking system, he has now resurfaced - in connection with Osama bin Laden.
A March 2000 press report by the Paris-based Intelligence Newsletter said bin Mahfouz was being held under house arrest in Taif, Saudi Arabia, at the behest of U.S. authorities. The reason: Mahfouz was believed to have provided financial aid to a charitable front organization raising money for Osama bin Laden , the Afghan-based terrorist who had already been linked to the 1993 World Trade Center bombing, the 1992 attack on U.S. Servicemen in Somalia, a 1995 bombing in Riyadh, Saudi Arabia, and the 1998 bombings of U.S. embassies in Africa. A top counter-intelligence source in Washington says Mahfouz is still under house arrest.
These are the types of people Washington now needs to root out of the nation's , and the world's , financial systems if it is to cut off the flow of money to the terrorists who have attacked America. But the tentacles not only now reach into just about every major money center bank in the country, they have even brushed up against the early business affairs of the very man who is now rallying America to the fight. In the end, getting the dirty money out of America may prove every bit as hard as pulling bin Laden from the mountains of Afghanistan.
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Correspondence with Alexander Walker transfer agent for Endovasc and many questionable penny stocks over the years.If Mr.Walker received $200,000 in free shares as an 'insider'as he did from Endovasc 'management', from every(over 1000) penny stocks he was transfer agent for he would make $200 million on that alone !!!! Surely a transfer agent should not be insider of companies they handle share distributions for.:
On Mon, 22 Dec 2003 14:06:57
Nevada Agency and Trust Company wrote:
Dear Mr. Ryals,
Kindly state your question and I will be happy to answer to the best of my ability.
Very truly yours,
Leah Finke
----- Original Message -----
From: 'Tony Ryals'
To: 'Leah @ Natco'
Sent: Sunday, December 21, 2003 1:31 PM
Subject: Re: ENDOVASC INC
Dear Alexander Walker . I am contacting you in regards to reinserting that,ha,10,000 share envc 'cert' back into my Schwab account.I guess I can pass on the,ha,nutriceutical dividend 'cert'.I could send it direct to Schwab if you can handle that as otherwise I would have to send it all the way to Guatemala for a signature.I explained all that to 'Dr.' Summers last December but I had no idea 'company' was just 'moving' to Delaware overnight.
Oh would you mind my asking how a transfer agent also becomes an 'insider' ? It seems a good job if you can get it.Also is the rumor true that most 'insiders' that officially acknowledge being so are relatives are asociates of Cantrell.I realise they are not employees cause there should be only 2 or 3 of them.
Also I am enclosing part of a 'share agreement' from Charles Schwab by way of Dwight Cantrell that I only received due to SEC enquiry earlier this year.It was sent to someone with a Schwab account in May of 2002.It is offering to exchange up to 30 million shares per individual!!!,for preferred shares.I did not receive such an offer for my 550,000 shares in Schwab account.Silly me,I thought we were having a real reverse split.
My suspicion is these shares saved from reverse split had to do with someone having a Schwab account with shares left over from the Balmore or Celeste purchase.Perhaps it was someone related to James Dale Davidson.Do you know or can you help me with that mystery.Looks like Endovasc fraud is about up now anyways and I lost big time,suckerd by the Stanford nicotine patent.Pretty funny,huh ? So for my $60,000 I'd sure like to know who got to keep and convert 'up to 30 million shares' from their Schwab account and convert to 'preferreds'.
Again the priority is to most efficiently return those remaining shares to Schwab account before next shoe drops,which I'm sure you've heard the company has eaten all shareholder assets and rumor on rb board is they are about to begin cannibalising one another.
In All Sincereity,
Clarence Anthony Ryals
SHAREHOLDER AGREEMENT(1ST PARAGRAPH)
'The undersigned(Subsciber)hereby agrees to exchange,and Endovasc Ltd.,Inc.,a Nevada corporation(The 'Company')hereby agrees to issue and exchange with the Subscriber,the number of shares of the Company's $.001 par value common stock(the'Company Shares')set forth on the signature page
hereof for Series B Convertible Preferred Stock,$.001 par value (the'Preferred Stock')convertible in accordance with theterms thereof at the exchange ratio of one share of Preferred Stock for each ten shares of the Company Shares exchanged (The Exchange).The Certificate of Designations of Series B Convertible Preferred Stock,$.001 par value per share is annexed hereto as Exhibit A('Certificate Designation').(The Company Shares are sometimes referred to herein as the 'Shares' or 'Common Stock').(The Preferred Stock and Common Stock issuable upon conversion of the Preferred Stock are collectively referred to herein as ,the 'Securities').Upon acceptance of this agreemnent by the Subscriber,the Company shall issue and deliver to the Subscriber the Preferred Stock against receipt of certificates representing the Company Shares endorsed or with stock powers attached in proper form for transfer.This Exchange Agreement and other similar Exchange Agreements relate to the exchange of a maximum of 3,000,000 shares of Preferred Stock for a maximum of 30,000,000 shares of Company Shares......'
On Thu, 29 May 2003 13:37:15
Leah @ Natco wrote:
Dear Mr. Ryals:
Your letter directed to our firm dated May 27, 2003 pertaining to Endovasc is acknowledged. Our organiztion is the duly appointed and acting transfer agent for the stock Endovasc. We serve over one thousand corporate clients in this limted capacity.
Your letter should be directed to Endovasc. We have this date sent by fax and email a copy of your letter to Dr. Summers for a response. No stockholder contacted our office to exercise dissenters rights.
Very truly yours,
Alexander H. Walker Jr.
Chairman of the Board
----- Original Message -----
From: Tony Ryals
To:
Cc:
Sent: Tuesday, May 27, 2003 3:13 PM
Subject: Documentation of Dissenters rights.........
Dear Nevada Agency and Trust Co.,
I contacted your office by phone several weeks ago regarding Endovasc's reverse split and the automatic activation of Nevada dissenters rights at the time of its 'move' to Delaware.The secretary said I would need to make my request to your lawyer and so I am taking this oppotrtunity to do so.
I will let you know that during time you remained quiet and would not divulge re the shares being sold by Endovasc,they were dumping into the float while blaming Scwhab, Ameritrade, Etrade,and just about anyone but themselves. We, the investors, were led to believe that the company was not doing this by misleading businesswire prs being put out at the shareholders expense.In effect we were paying to be lied to.You could have done much by just being the honest broker between the company and shareholder rather than keeping us in the dark while Endovasc's Summers and Cantrell treated us as mushrooms.
Earlier company prs assured that investors would maintain a'proportionate per centage' of ownership in company we had before the reverse split.Later they conned us into removing shares from our accounts and converting to 'certs' by false promises of 'dividends' and to protect ourselves from our brokers 'naked shorting'.This was just another con by a company that thinks the safe habors' act was created for them to have freedom to lie to shareholders or defraud them of their shares.Instead the company began immediate printing and dumping of shares while you remained silent.
But my immediate concern is to obtain an honest divulgance of who got dissenters rights or at least how many shareholders got dissenters rights at time of move to Delaware and how many shares this represented.You see,before the reverse split, I held 550,000 Endovasc shares in my Schwab account. I was told by the company that it was a real reverse split.I fully expected a drastic reduction in shares of all kinds.
At the time of the ''move' to Delaware and activation of Nevada dissenters rights I was left completely in the dark.Schwab of SF has since informed me that my SEC 14C WAS NOT SENT BY THE COMPANY, NOR TO MY KNOWLEDGE, DID MANY OR ANY SCHWAB CUSTOMER RECEIVE NOTIFICATION.THIS AS YOU MIGHT IMAGINE LED TO LOSS OF NEARLY ALL MY SHARES THAT COULD ONLY HAVE BEEN PROTECTED BY NOTIFICATION OF MY NEVADA DISSENTERS RIGHTS!!!
Dr.Summers has told me at one time 'many' shareholders were notified and asserted their dissenters rights.Then he said 'less than 5' did!!! Dwight Cantrell the accountant that he is has given the figure as '3' but will not state how many shares were involved. I assume that any dissenter had to sign a settlement agreement of some kind, as to my knowledge, it was notresolved in court.
Yes I want to know if any client at Schwab received notice and asserted their rights and saved their shares.I will ask, but so far Schwab say Endovasc never sent nor requested they distribute the 14C in which the Nevada dissenters rights were hidden in.Both the SEC and Nevada require both documents together or not,be sent in written form to shareholders.
They take it for granted that account holders will receive said
documents through their broker who has their mailing address.
So again, as not to distract, I wish to receive documentation
regarding how many applied for and received their Nevada dissenters rights, as required by law, at time of 'move' to Delaware.The number '3', stated by Cantrell, sounds suspiciously small to me, when 100 million or so
shares were in the float at the time!!
Also I wish to know how many shares were involved. To my
knowledge and according to Summers,the dissenters kept all their shares on a one for one basis while those who were not informed, such as my self and all those with a Schwab account, lost or had the 'company' self deal, all our shares to themselves!!!Under the fraud of a reverse split in which we were supposedto maintain our 'proportionayte per centage of ownership' in the company!!!
And finally as thee are no court records, I presume there was asettlement agreement that was signed by the 'dissenters'. I would also like a copy of that document.Your cooperation is much appreciated.
Sincerely,
Clarence Ryals
...............................................................
Correspondence with Endovasc's 'Dr.' Summers:
On Mon, 24 Mar 2003 11:35:50
Dr. Summers wrote:
Dear Tony:
I can see that we are getting nowhere trying to explain the mechanics of the Delaware reorganization and the language of the 14c notification.
I can also see that you are only interested in insulting me and/or the company and nothing we can say of do will change your attitude.
As of today, I will cease responding to your ramblings and suggest that if you continue to harass our employees that you could be liable to various civil and/or criminal damages.
So in spite of trying to help you, I've been continually insulted, called a liar, a fraud and God know what else you have posted on the chat boards (all of which can be subpoenaed) and I think that I will call it a day.
Good day sir!
('Dr.' David P Summers)
----- Original Message -----
From: 'Tony Ryals'
To: 'Dr. Summers'
Cc:
Sent: Sunday, March 23, 2003 7:45 PM
Subject: Re: re failure to offer preferreds
Dear Dr.Summers,Do you not think I have reason to wonder if you are lieing to me or mad as a mad hatter?
Think about the time you b.s.ed me about the mideast shiek or whatever that was interested in making an investment.IT TURNED OUT TO BE COMPLETLY FABRICATED. Think about my original reason for 4mnvesting'in the first place,Dr.Colombo was about to have those human trials in Milan,remember?
Whatever became of that?
Now you tell me less than 5 shareholders took you up on your offer to keep their shares rather than giving them all to you as a reward for selling us to the offshores.Why didn't you do a businesswire 'shareholders alert' about that? 'Look out below suckers,I mean envc shareholders.'
Now consider that now you tell me that 'less than five'shareholders took you up on your preferred offer?
How many is less than five,could that mean 4 or 3 or 2 or 1? How many shares did this less than 5 represent?
And remember this statement you made?
Date: Mon, 24 Feb 2003 15:16:18 -0600
From: 'Dr. Summers' [add to address book] [add to
spam block list]
Subject: Re: re failure to offer preferreds
To:
Reply To: 'Dr. Summers'
Tony:
The 14C was about 50 or 60 pages. Yes, many 'regular' shareholders opted for the Preferred Shares.
Again, if you want to see the 14C, go the or and you can read the entire statement.
ds
----- Original Message -----
From: 'Tony Ryals'
To: 'Dr. Summers'
Sent: Saturday, February 22, 2003 1:47 PM
Subject: Re: re failure to offer preferreds
Dear Dr. Summers,How many pages do you reckon that 14c to be? I figure that if I'd a got it Ed dalton would have noticed.Also I note that at one point in it you specifically request that the broker forward it even at
ENVC expense,to shareholders.Now I still don't see what might have saved me from what hit me.Did any 'regular'shareholders get preferred shares as you hint I somehow could have?
If so, how did they do it? WAS THAT SOMETHING THEY COULD HAVE DONE BY TAKING THE .02 SHARE OFFER AS A 'DISSENTER', THEN NEGOTIATING?
I DON'T GET IT BUT IF sCHWAB DID HAVE OBLIGATION TO INFORM AND DIDN'T DO THEY OWE ME MY SHARE BACK BEFORE WE'RE FULLY DILUTED AGAIN.I MEAN WE ALREADY HAVE THEY SAME SHARES OUTSTANDING OR MORE FROM THE TIME I FIRST BOUGHT THE HALF MILLION. PLEASE TRY AND GIVE ME AN ANSWER RE sHWAB NOT SENDING AND WHAT I MIGHT DO IF ANYTHING IN RETROSPECT.You see I thought you wer going to point me to the place in the 14c where it explained how I would have saved my half million
shares had I known but we'0ve taken me in circles.....
Sincerely,
Tony Ryals
--
On Sun, 23 Mar 2003 17:28:59
Dr. Summers wrote:
We sent out over 600 official notices to shareholders who had listed their name and address with the Company. What is this B.S. about 'selected
customers' and a 'special mailing list?' Some shareholders had only 50 shares. Can't you get this in your head? We posted a public notice with the SEC WHICH you can still pull up off the SEC Edgar if you care to spend the money to look at it.
Schwab was notified as was Fidelity, Ameritrade, E-trade and all the other brokers who held shares in their clients street name. That is just pure bull s-it! How the hell do you think we can locate someone who has buried his/her shares in a brokerage account that has no name, no address other than a brokers address and your account number, The dissenters rights
was part of the 14C!!! and they had 20 days to object! I don't recall the date, you look it up!!! You know how many dissenters we got? Less that five!
We even asked the brokers if they needed extra copies to distribute at our expense!!! How else could we have done this other than the way we did it? Maybe your California friend forgot to send you your mail. Be carefulabout calling our company a fraud, you could wind up getting sued.
I would appreciate that you quit wasting my time on your own failure to take due notice of a SEC required public notice that we went an extra mile to get the news out.
('Dr.'David P Summers)
---- Original Message -----
From: 'Tony Ryals'
To: 'Dr. Summers'
Sent: Sunday, March 23, 2003 3:23 PM
Subject: Re: re failure to offer preferreds
Dear DR.SUMMERS,As a follow up to yesterday's e-mail I enclose the letter I sent to Lana Copeland Friday.
Note Schwab insists you never got the 14c to them,and thus to me and how many other smaller shareholders?This is why I asked on what date you mailed it to them and to which office or employee some time back.If this was not sent it is time to be both honest and responsible for the fact.So,I'm still asking yesterday's questions I sent to you about the number of shareholders who received dissenters rights and the number of shares involved but who areand how did these happy 'dissenters' get on a special mailing list.Apparently Schwab located them by noting they had saved themselves from reverse split and enquired as to notification.I don't know but if WE can't resolve it I'm gonna take my complaint fromcalifornia to texas to nevada to washington and on and on. Might even go back to Schwab to complain about this fraud.
tony ryals
Dear Lana Copeland,
I enclose a letter from a friend who gets my mail in California.As you can see Schwab contends that they never received a 14C with Nevada dissenters rights to send me.Is this true or false? This is why I asked you to send me a date and person or office to whom it was sent at Schwab.Looks like the ball's in your court now and Schwab and I am waiting for your serve.
Dr.Summers says he's concerned withreaching 'shareholders', well,it certainly looks like he missed some.Why does Schwab contend that you purposely sent 14C to 'select customers'(of Schwab,or of yourselves?,and not to me who HAD 550,000 SHARES?
NOW I WONDER IF THERE ARE ANY OTHER SCHWAB CLIENTS YOU MISSED AND WHICH YOU FAVORED AND WHY? Also if the shareholders 'of record'who received their real shares are not cited in an SEC form,where can I get the records,the Secretary
appoint appraisers? Yes, I can go writing all over the place, from fed to state, guessing but as a shareholder I cetainly feel I have a right to know 'straight from the horses mouth', so to speak.I truly feel conned,once again,to have fallen for that 'Schwab has a million envc shares outstanding' pr paid by envc when all the time you all were dumping 4 milion plus but wouldn't bother to tell shareholders that in your pr.And then the envc pr that disappeared from your website that announces reverse split and reincorporation in Delaware that Dr.Summers uses to assure all shareholders they will still keep their 'proportionate percentage' ownership.He did not state we had to be on a 'select customers'list.
Sincerely,
Tony Ryals
Date: Thu, 20 Mar 2003 07:50:45 -0800
From:
To: tryals@angelfire.com
Hi Tony,
Today you received a reply from Schwab referring to the ENVC 14C document. They said that upon investigating, Schwab discovered that ENVC had sent the offer to 'select customers' directly, and never gave Schwab any of these to distribute. They included a copy of the document that they were able to get from another Schwab customer who had received the offer.
The letter also contained a demand that you immediately stop making unfounded allegations against Schwab, and they threatened legal action if you continue.
I can send you a copy of the letter if you like.
On Sat, 22 Mar 2003 09:47:29
Dr. Summers wrote:
We sent notices to ALL shareholders who had their shares listed in their own name and address. We asked Schwab and all other to inform their 'street named' clients of the Notice. Most Brokers will make copies and distribute the notices to the company's shareholders. We offered to send additional notices according to how many the broker claimed as street named
clients.
----- Original Message -----
From: 'Tony Ryals' To: 'Dr. Summers'
Cc:
Sent: Thursday, March 20, 2003 2:16 PM
Subject: Re: re failure to offer preferreds
Dear Dr.Summers,Well I finally got the reply from Schwab but it isn't exactly what I expected.It does appear that envc sent notices NOT to all shareholders equally but to a selected few,according to Schwab.You do realise this has lead to collapse of my Schwab account and I have heard that Nevada grants a possible extention of dissenters rights who failed to receive their notification.Is there any chance you would consider restoring my shares?
Sincerely,
Tony Ryals
Dear Tony,
Today you received a reply from Schwab referring to the ENVC 14C document. They said that upon investigating, Schwab discovered that ENVC had sent the offer to 'select customers' directly, and never gave Schwab any of these to distribute. They included a copy of the document that they were able to get from another Schwab customer who had received the offer.
The letter also contained a demand that you immediately stop making unfounded allegations against Schwab, and they threatened legal action if you continue. I can send you a copy of the letter if you like.
On Mon, 3 Mar 2003 16:20:09
Dr. Summers wrote:
I am not allowed to give advice on what you should do with a certificate that is just as valuable in your hands as it is in a brokerage account.
But, if I were you, I would simply hold on the certificate until the transaction you read about last Thursday (14C SEC notice) has taken place.Have you read it? If you haven't you should before you write me again.
ds
----- Original Message -----
From: 'Tony Ryals'
To: 'Dr. Summers'
Cc:
Sent: Monday, March 03, 2003 3:07 PM
Subject: Re: re failure to offer preferreds
Dear Dr.Summers,
So now what am I supposed to do with my shares?I TOOK THE
COMPANY'S PR TO HEART AND TO MUCH INCONVENIENCE REMOVED THEM FROM SCHWAB ACCOUNT.NOW THEY ARE IN CALIFORNIA AND I CAN'T SIGHN THEM.SO PLEASE JUST TELL ME WHAT I'M SUPPOSED TO DO NEXT.
SINCERELY,
TONY RYALS
--
On Thu, 27 Feb 2003 13:37:19
Dr. Summers wrote:
We send all public notices to our shareholders of record, either
to the named shareholder and address listed by the shareholder or to the brokers who hold our shares. For shareholders who hold their shares at a broker, we send the notice to the broker and ask that they (the broker)distribute the notice to ENDOVASC shareholders which he is obliged to do as part of his service to you. We also request the broker to tell us if he needs more copies, proxies, filings, and other material, which we supply if asked. We have no other method of informing you if you are not listed on our stock rolls by your own name and address.
ds
----- Original Message -----
From: 'Tony Ryals'
To: 'Dr. Summers'
Cc:
Sent: Wednesday, February 26, 2003 5:44 PM
Subject: Re: re failure to offer preferreds
Dear Dr.Summers,Did Charles Schwab charge you anything for mailing the 14c document to me? If so you should ask for money back cause they didn't do it.They still do not answer my queries from a couple of weeks ago.Does the company simply not care and thinks it fulfilled its legal duties when a shareholder is telling them that the broker they requested to
complete this legal transaction failed?Would you, as the company that was supposed to insure that I received this important legal document in a timely fashion, not inqire of Ms. Heather Shapiro for me? She refuses to address the issue altogether. Or to inquire for me at the Schwab section or office
to which it was sent to be forwarded to me?I would be much obliged.
Sincerely, Tony(Clarence Anthony)Tony Ryals
On Mon, 24 Feb 2003 15:16:18
Dr. Summers wrote:
Tony:
The 14C was about 50 or 60 pages. Yes, many 'regular'shareholders opted for the Preferred Shares.
Again, if you want to see the 14C, go the o
and you can read the entire statement.
ds
----- Original Message -----
From: 'Tony Ryals'
To: 'Dr. Summers' Sent: Saturday, February 22, 2003 1:47 PM
Subject: Re: re failure to offer preferreds
Dear Dr. Summers,How many pages do you reckon that 14c to be? I figure that if I'd a got it Ed dalton would have noticed.Also I notethat at one point in it you specifically request that the broker forward it even at ENVC expense,to shareholders.
Now I still don't see what might have saved me from what hit me.Did any 'regular'shareholders get preferred shares as you hint somehow could have?If so, how did they do it? WAS THAT SOMETHING THEY COULD HAVE DONE BY TAKING THE .02 SHARE OFFER AS A 'DISSENTER', THEN NEGOTIATING?
I DON'T GET IT BUT IF sCHWAB DID HAVE OBLIGATION TO INFORM AN DIDN'T DO THEY OWE ME MY SHARE BACK BEFORE WE'RE FULLY DILUTED AGAIN.I MEAN WE ALREADY HAVE THEY SAME SHARES OUTSTANDING OR MORE FROM THE TIME I FIRST BOUGHT THE HALF MILLION. PLEASE TRY AND GIVE ME AN ANSWER RE sHWAB NOT SENDING AND WHAT I MIGHT DO IF ANYTHING IN RETROSPECT.You see I thought you wer going to point me to the place in the 14c where it explained how I would have saved my half million shares had I known but we'0ve taken me in circles.....
Sincerely,
Tony Ryals
On Wed, 19 Feb 2003 10:27:52
Dr. Summers wrote:
Tony:
Go to Edgar.com and pick up all the ENDV public announcements during the year 2002. The Form 14 C is the one that was sent to
Schwab and other brokers.
ds
----- Original Message -----
From: 'Tony Ryals'
To: 'Dr. Summers'
Sent: Tuesday, February 18, 2003 4:26 PM
Subject: Re: re failure to offer preferreds
Dear Dr. Summers,Sill no answer from Schwab re those preferred shares and no word from you on how to remind them what document to look for.I did start a thread on offshorebusiness.com re celeste balmore and endovasc.
It's got about 10 posts so far.That stuff I never got from you and certainly not nigelbirch and yintok. Here's an example of my queries.
Sincerely,
Tony Ryals
Re: Balmore, Celeste and Endovasc
By Antonio on 2/18/2003 5:18:21 PM
E-mail: tryals@angelfire.com
Has anyone paid attention to the mms these Balmore and Celeste boys work with? Is it somewhat random or are there any favored mms that they go through? Schwab,for instance, is often one of the most active mms in Endovasc but when those boys were dumping over 60 million into Ensdovasc's float a little over a year ago,(before that the outstanding was about at its present 30 some million so they added 2/3 in a couple of
months),Schwab may have taken a back seat. I requested Schwab trading records re:ENVC,but you can imagine where that got me.
=== message truncated ===
On Tue, 8 Jul 2003 13:17:16
David P. Summers, Ph.D wrote:
Mr. Clarence Anthony Ryals,
Re: Notice to Cease
and Desist
Dear Mr. Ryals:
Please take notice.
Your improper and illegal misrepresentation of myself and Endovasc has continued long since my attorneys and I personally tried to help you with your problem. With this notice I am demanding that you ceases and desist from further malicious and flagrant attempts to damage the company and its officers especially with your continued slander on RaggingBull. It is a
violation of both criminal and civil law to try to threaten and coerce someone to commit an illegal action, what ever your cause.
It is improper and illegal for me to give you imformation that is not already in the public domain or that is given to all shareholders at the same time.
Further libelous statements and blatant untruths will be prosecuted to the fullest extent of both criminal and civil law.
Respectfully yours,
David P. Summmers
cc Wes Christian, Esq.
David P. Summers
CEO
Endovasc, Inc.
550 Club Drive, Suite 440
Montgomery, Texas 77316
Ph: 936.582.5920
Fax: 936.582.5996
summers@endovasc.com
----- Original Message -----
From: 'Tony Ryals'
To:
Cc:
Sent: Tuesday, July 08, 2003 10:21 AM
Subject: Preferred Share Shorting...........
Dear Dr.Summers,
A couple of months ago I had planned to speak with you and not Dwight Cantrell.Not many have respect or trust for that man as for as I can figure.His offer of nothing and inability to fathom the depth of which I was defrauded by Endovasc James Dale Davidson and I guess one other unidentified receiver of the preferred share 'offer'that was certainly not offerred to me was disheartening to say the least.
Now only tradersnation has allowed me to see the true depth to which I was being shorted over the last year although we have still not estimated what portion of the shorting of those 18 million shares came from Endovasc 'management' directly and how much came from Davidson and the other preferred share 'beneficiary', much less why they deserved all those shares.I do presume I am correct in assuming those shares came from Balmore or Celeste.Does this mean that James Dale Davidson has direct ties to one orboth of those entities,or did he have contacts to buy second hand from them?Don't you think it's time for those of us who were defrauded by buying on the 'regular' market knew?
Now you know that I am in this for the long haul or until you and Cantrell and Davidson and Walker decide to let me out of your 'blood in the streets' nightmare.What I want is simply to have my former Schwab account 550,000 shares plus the forward split returned to my account. If you cannot manage this I will continue every channel available to expose this fraud from the state and federal level maybe international.From every news media and economic reporter who may have the slightest interest.I will make sure Stanford knows the fraud committed with their patent and name from every angle, every academic department I can think of.And I will get back to any lawyer who shows interest.
Also I do believe this is what SEC terms as insider trading and I will expose it. And I will do my best to make Wes Christian and O'Quinn see how they were used to defraud and deceive as well.I can't imagine even now they don't realise after revelation of 18 million float that they were more than incorrect last November in accusing Schwab anmd Etrade for your and James Dale Davidson's naked short scam to manipulate and defraud me even further.
I would also like to know of the 18 million float how much was dumped by James Dale Davidson or the other unidentified person or entity that got the 1 for 1 preferred exchange.That's quite a scam if you can get it.I guess one way is to go over your SEC filing and add whatever shares are not accounted for till you get 18 million.It would appear that Davidson et.al. accounted
for much more shorting than Schwab Etrade et.al. combined, no?
I would hope you can reply today and I will call if you wish.Othwrwise I will post this on internet for the record tomorrow and send to various interested parties.We just might create a new website devoted to James Davidson's penny fraud scams and Endovasc's contribution to it.
Sincerely,
Submitted: 10/25/2004 7:27:20 PM
Modified: 10/26/2004 12:34:40 AM
Charles
Oregon City, OregonU.S.A.
No one forced him into buying the stock
Tony Ryals is an idiot. No one ripped him off. He lost money in an investment in a penny stock. No one forced him into buying the stock and no one from the brokerage firm he was using told him to buy the stock. He did it on his own accord. He just refuses to think that he simply made a stupid and bad investment.
As to that share offer, it had to do with preferred stock, not even the common stock that he owned. What an idiot.
Submitted: 10/26/2004 11:47:04 PM
Modified: 10/27/2004 9:22:58 AM
Charles
Oregon City, OregonU.S.A.
Tony Ryals is an idiot- Part 2
First, let me correct something. In my previous post it looks like it posted me as an employee of Schwab. I am not an employee of Schwab but an ex-employee. My mistake.
Now then. Tony Ryals filed a complaint with the SEC. They laughed at him. Why? Because he is a psychotic lunatic.
He wants to know the names of the people who were accredited investors who were given the opportunity to purchase stock in a private offering from the endovasc company. He doesn't understand the difference between what is a private offering versus a public one. He thinks that the brokerage firm where one of these accredited investors eventually deposited his stock should provide him with the name and trading records of this accredited investor. That brokerage firm (Schwab) is in no way bound to release their customers names out. It is confidential information. If Mr. Ryals had a case he would have been able to take Endovasc to court, then and only then could his attorney have asked the court to subphoena those records. He thinks that just because Schwab won't tell him the customers name that they are in cohoots with the company and that something illegal was done, because this particular customer was able to purchase additional shares directly from the company, again in a private offering that he wasn't invited to participate in. There was nothing illegal done. There was no rip off. The only thing there is, is a unhappy investor who lost money after listening to someone on a message board and who bought stock based on what someone in a message board said. The guy is a lunatic to believe that Endovasc, Charles Schwab, Fidelity, etc. and every market maker in the stock colluded to make him lose money. He bought a penny stock and lost money. It is just easioer for him to create a global conspiracy theory than it is to admit that he just made a bad investment decision. A decision he made on his own, that no one at the brokerage firm, market maker or the company told him to make. No one forced him into buying the crap. He did it. Now own up to it Tony and quit blaming the world for your mistake.
Submitted: 11/20/2004 5:28:43 PM
Modified: 11/20/2004 6:23:07 PMTony
Antigua, Central AmericaGuatemala
More details re the Schwab-LOM account and it's use for pump dump.
Since receiving the criticism above from an unidentified person,(probably a Charles Schwab stock tout or promoter from Schwab's Yahoo message board,who claims to be a Schwab employee in his first tirade then an 'ex-Schwab employee' in the next. ),yet more detail has emerged re Schwab and its' LOM of Bermuda account.This is from 'The Royal Gazette' of Bermuda borrowing from KYC's (www.offshorebusiness.com) even more detailed investigation since Carol Remond's May 2004 article revealing that LOM had a account Schwab.
It would appear that this account,according to what Mr.David Marchant of KYC discovered through the SEC,WAS INDEED USED ALMOST EXCLUSIVELY FOR PENNY STOCK PUMP DUMP SCAMS,SUCH AS THE ONE I WAS A VICTIM OF.Charles Schwab even now after all of this will not tell me if the Schwab account used to dump perhaps million or 10's of millions of Endovasc shares from was the Schwab-LOM account or another Schwab account of another pump dump operation hosted by Charles Schwab.
Charles Schwab in effect allowed Endovasc 'management',James Dale Davidson,and 'famed trial attorney John O'Quinn' to use businesswire prs to tell me Schwab was 'naked shorting'my Endovasc shares and remained quiet when all along they were dumping shares from a Schwab account as James Dale Davidson touted the stock through his Agora,'Vantage Point',or myriad other tout mail fraud or cyberfraud outlets !!!
In fact Charles Schwab still maintains an account for an Endovasc insider to this fraud operation,Robert Johnson,to dump his millions of insider shares from as a reward I guess for all the 'good business' they have brought to Schwab in the past.
Mr.Robert Johnson is an insider and 'executive' to the same fraud(Edovasc,Montgomery,Texas) that told me I would maintain my same 'proportionate percentage ownership'that I held before the 'reverse split' that,in effect,never occured.
Only the transfer of my shares to another unidentified Schwab account to be used in a massive fraud and pump dump sponsered by Endovasc and Charles Schwab and their,as yet still unidentified 'select client',is what really occured.
Below is the Royal Gazette article with the most telling paragragh about Schwab's involvement in the aiding and abetting of LOM's pump dump operations through Charles Schwab's LOM account:
'The volume of LOM's US trading, whether on behalf of its customers or its own accounts, is staggering,' stated Mr. Ungar. 'For example, in LOM's account at Schwab, during a two-week period in 2003 – the same year in which the SHEP and Sedona transactions in question occurred – LOM bought or sold, on over 4,000 different occasions, a total of 151 million shares of US securities traded over various US securities markets.'
Article published Nov 3, 2004
Clients stood to benefit from suspect stock sales – claim
Clients of investment firm Lines Overseas Management stood to profit from the alleged manipulation of a penny stock now under investigation by the US Securities and Exchange Commission, according to a court filing.
The SEC filing, first reported on yesterday by Miami-based newsletter Inside Bermuda, said the clients bought a total of 100,000 shares in Sedona Software Solutions from ICH Investments, a firm the SEC alleges is controlled by LOM principals Scott and Brian Lines.
The clients, who included directors such as company lawyer Graham Collis and Susan Wilson, senior employees like CFO Malcolm Moseley, and relatives of the Lines brothers, bought the shares for $4 a share on January 21, 2003 when the market price for the shares was $9.
In addition the SEC filing alleged that Scott Lines, the chief executive officer of LOM, and Brian Lines, the firm's president, also profited from the sales.
'Even though Brian and Scott Lines sold these shares for $4 per share, they still profited from these sales because they had purchased the Sedona shares for approximately seven cents per share,' the SEC filing said.
The filing alleged that the sale of the shares took place four days after Sedona's stock price had been boosted by the issuance of a Press release which the regulator claims was misleading in that it did not disclose LOM's involvement with the buyer and seller in a merger deal.
By the time the SEC temporarily suspended trading of Sedona shares for suspected stock manipulation eight days later, LOM's clients had sold 13,000 of the Sedona shares 'into the US market for a profit' even though their stock was 'apparently restricted' and 'could not be sold over US markets for at least one year and, even then, under certain restrictions', the filing said.
Inside Bermuda reported: 'Those who did not sell prior to the suspension of trading avoided potential losses from the subsequent collapse of the stock price when, according to the SEC, LOM cancelled the transfers of shares from the ICH account.'
LOM vice president of compliance Scott Hill said the company could not comment on the SEC allegations because it was pending before the courts.
'The information contained in the KYC News article was taken from the SEC's last court filings in advance of the subpoena enforcement hearing now scheduled for December 10,' he said.
'Because this matter is pending in the courts, we are unable to comment on the specific allegations at this time. However we look forward to getting into court and having the SEC's allegations reviewed by a federal judge where all the facts can be considered.'
According to an exhibit filed by the SEC at the US District Court for the District of Columbia on October 13, the purchasers of the discounted shares included Daisy Alexandra Lines, Francesca Elizabeth Lines, Sharon Lines, representing Nicholas Lines and Ben Lines, who are both minors; Graham Collis, Susan Wilson, Graham Redford, Kevin Winter, Kevin Christopher Way, Dave McNay, Ian Brown, Stuart M. Smith, Malcolm Moseley, Kim Moseley, Robert L. Moore, Bente Ahern, Christopher Maurice White, John Cook, Derek Lee, Constanzo Di Meglio, James Parris, Sharon Parris, James Parris Jr., Don Petkau, Derricka Brangman, Richard Paynter, Debra-Ann Paynter, Bermuda Overseas Investors Limited, First Edinburgh Securities, Clover Capital Corporation, Quindone Investments Ltd., Bart Holdings Ltd., Bably Ltd., Median Ltd., and Gigco Holdings Ltd.
Inside Bermuda said most of those identified in the exhibit bought between 500 and 2,000 of the discounted shares, although some purchased more, including Constanzo Di Meglio, who works for Bermuda's Little Venice restaurant chain, who allegedly received 5,000 shares.
Mr. Collis, a partner with Bermuda's biggest law firm, Conyers, Dill & Pearman, and a director of LOM (Holdings) Ltd., received 1,500 shares. Mrs. Wilson, who is chief executive officer of Masters Ltd. and who is also head of LOM's Audit Committee, received 1,000 shares, according to the SEC.
Mr. Collis did not respond to questions emailed to him by Inside Bermuda asking about his alleged acquisition.
According to the SEC's Washington DC branch chief, attorney Michael Ungar, ICH Investments Ltd. – whose alleged nominal head was Kevin Way – was one of several companies that acted as nominees for Scott Lines, Brian Lines and/or LOM customers. Others included Gateway Research Management Group Limited and SKN Holdings Ltd. (both allegedly nominally headed by Kevin Winter); Clyde Resources Ltd. (Graham Redford), Warwick Ventures Ltd. (Stuart Smith), Iguana Investments Ltd. and Nottinghill Resources Ltd. (both Richard King), Consensus Investments Ltd. (Eric Collins), and Aberdeen Holdings Ltd. (Michael Heslop).
Nominees for the Lines brothers were compensated by receiving stock at a steep discount to its trading price, according to the SEC. Promoters were also compensated with shares, plus cash, to promote penny stocks associated with LOM and/or two of its clients, James Curtis and Todd Peever, it was alleged.
Two of the compensated 'touters' were identified as Intrepid Investor, which has a mailing list of 'almost one million people', and OTC Journal, which has 'over one million subscribers'.
Details of the alleged discounted sales to privileged insiders and alleged compensation to stock promoters were disclosed in court filings by the SEC during October as it seeks to force LOM and Scott Lines to comply with four subpoenas for records and testimony concerning two separate investigations into alleged securities fraud involving Sedona Software Solutions Inc. and SHEP Technologies Inc., both of Vancouver, Canada, and HiEnergy Technologies Inc., of Irvine, California.
LOM and Mr. Lines contend that the United States does not have jurisdiction over them and that they are prohibited from disclosing some of the information being sought due to secrecy provisions of laws in Bermuda, the Bahamas and the Cayman Islands, where LOM has offices.
As part of an attempt to establish that LOM has sufficient ties to the United States to meet jurisdictional requirements, Ungar claimed that LOM executed substantial volumes of trades with the US operations of vFinance Investments Inc., Schwab Capital Markets LLC, and Sterne, Agee Capital Markets and also did business with CIBC Mellon Securities Trust Company, in New York.
'The volume of LOM's US trading, whether on behalf of its customers or its own accounts, is staggering,' stated Mr. Ungar. 'For example, in LOM's account at Schwab, during a two-week period in 2003 – the same year in which the SHEP and Sedona transactions in question occurred – LOM bought or sold, on over 4,000 different occasions, a total of 151 million shares of US securities traded over various US securities markets.'
The trader at Florida-based vFinance who was in charge of LOM's account testified that 'LOM's trading over the US markets was more than the trading of most US regional banks' and that he 'either accumulated or liquidated millions of shares a day for them', stated Mr. Ungar.
In arguing that it was prohibited by offshore secrecy laws from disclosing certain information to the SEC, LOM had submitted declarations from attorneys Paul Smith, of Conyers, Dill & Pearman, in Bermuda; Michael Paton, of Lennox Paton, in the Bahamas; and Richard Fear, of Charles Adams, Ritchie & Duckworth, in the Cayman Islands.
The SEC countered these arguments by submitting declarations from attorneys Dennis Dwyer, of Wakefield Quin, in Bermuda; Emanuel Alexiou, of Alexiou Knowles & Co., in the Bahamas; and Charles Quin, of Quin & Hampson, in Cayman, who each stated there were legal gateways available that allowed compliance with such subpoenas if those served with them actually wanted to comply.
LOM had also claimed that it was prevented – upon pain of criminal punishment – from turning over telephone records to the SEC but Mr. Dwyer declared that the provision of Bermuda's Telecommunications Act that LOM cited only applied to 'the interception of telephone conversations'.
The Act 'provides exceptions for telephone conversations maintained for quality control purposes' and 'disclosure of confidential information is permitted on the grounds of public interest', stated Mr. Dwyer.
The current action at the US District Court for the District of Columbia was initiated on June 10, 2004 when the SEC filed an application for an order to show cause why LOM and Scott Lines should not be ordered to comply with its subpoenas. The court has re-scheduled a hearing to determine the issues of the case for December 10, 2004.
LOM said it yesterday filed a supplemental declaration with the court on behalf of Scott Lines responding to an SEC affidavit alleging that Scott Lines was 'not truthful' in a declaration filed with the court, and that he did not leave Miami until April 21 as opposed to April 20 as noted in his initial declaration.
LOM said the supplemental declaration refutes the SEC claim and confirms that he did in fact leave Miami on April 20.
Submitted: 11/25/2004 12:48:12 AM
Modified: 11/25/2004 12:50:18 PMTony
Antigua, Central AmericaGuatemala
Bellador Group of Kuala Lumpur
The below is taken from my posts and reactions to them on the www.offshorebusiness.com message board.The first from January 26,2004 when I was emailed the, .. The first from January 26,2004 when I was emailed the 'Endovasc Scam Warning' that appeared on the Belladorgroup.com website unbeknownst to me at that time. Because I have not tried to hide behind an alias I sometimes receive information I might not otherwise receive. The Belladorgroup boiler room came into Endovasc shares,unreported in SEC filings, after James Dale Davidson's tout and massive share dumping of November 2002 probably from the Schwab 'select client' account Charles Schwab still protects from those like myself defrauded in the pump dump. And even though it was disguised with the claim that Schwab was 'naked shorting'.
Note that in December 2003 a letter to the SEC appeared on the internet purporting to be a letter from 'Dr.' David P Summers of Endovasc.This claimed that Mr.Dwight Cantrell and presumeably Robert Johnson had made a deal with Bellador Group,a boiler room out of Kuala Lumpur,without CEO Summers APPROVAL.Yes more infighting from the greedy cons who run this fraud and tout using Stanford University patent,Baylor University's name,and various academics and professionals such as Antonio Colombo,all the pump and dump shares and pocket the money for themselves,anywhere and any time they cvan make a deal.
The letter to the SEC is already posted above so I will not repeat it.Unfortunately the SEC will not tell me if the letter was actually sent and received by them from Summers and of course as an 'investor' and one defrauded by the 'company' they will not investigate my huge loss either.The warning about Endovasc shares being traded for Applied Micro Devices iis a scam within a scam to get suckers to send money offshore or to bank accounts where the defrauded investor in Endovasc will be further victimised by sending money to exchange worthless Endovasc for Appliied Micro Devices shares,money that will nevder be seen again anymore than the Applied Micro Devices shares will arrive.
Below this old January 2004 warning posted on www.belladorgroup.com website denying any part in the share exchange scam,that nonetheless blatantly used the Bellador
Director Peter Taylor's name with nary a protest from him,just a faint denial he was involved,as was the purpose of their Endovasc Scam Warning put on their website at the time.This is followed by posts on the offshorebusiness message board in the last wek from both Peter Taylor and Bellador Group's Arizona attorney Ron Logan a you can also see below.
Were their offshorebusiness message board posts touting or promoting penny stock against SEC regs ? Probably but will the SEC act ? Unfortuneatly,not likely.The last part of this addition to my report is from 'welshing' my informant so to speak as regards the Endovasc Bellador connection.His insights are worthy of inclusion.
........................................
Bellador boiler room, Endovasc,Advanced Micro Devices,etc.
'Baladore Group' is Belladorgroup.com
By baddogone0 on 1/26/2004 6:20:33 PM
E-mail: tryals@angelfire.com
For those who pondered over 'Baladore Group' with me when I enquired a while back,it appears to be Belladorgroup that I was looking for.It appears they did boiler room cold call dump of Endvasc shares in first half of 2003 after Davidson et.al.'s pump dump of November 2002 milked most of the juice out.
If anyone was contacted by Bellador as was person below who brought it to my attention,please let me know.I don't suppose cod call leaves much of a paper or even cyber-trail.
Just to fill you in with some info on one boiler room that was touting Endovasc earlier this year.
I was cold-called by the Bellador Advisory Group (www.belladorgroup.com)
They were giving the usual talk of how their group of expert analysts had uncovered this “gem". They were offering to arrange for the sale of shares direct from the issuer (i.e. Endovasc) at a price discounted from the then current traded share price of about $0.36.
Bellador is based in Kuala Lumpur Malaysia
Name
BELLADOR ADVISORY SERVICES (L) LTD
------------------------
Labuan Address
:
Level 6, Wisma Oceanic
Jalan OKK Awang Besar
87007 Labuan F.T
Tel. No.
:
087 418318
Fax No.
:
087 419318
--------------------------------------------------------------------------------
Marketing Address
:
Box #8, 6th Floor, West Block
Wisma Selangor Dredging, Jalan Ampang
50450 Kuala Lumpur.
Tel. No.
:
03-27133660
Fax No.
:
03-27133661
--------------------------------------------------------------------------------
Contact Person
:
Mr. James Kirby
Peter Mathew Taylor (Directors)
They must have been working with the US-based pumpers/dumpers, or through an intermediary.
They are listed as a boiler room by the Hong Kong securities commission.
Hope that helps to add pieces to your puzzle.
Bellador boiler room, Endovasc,Advanced Micro Devices,etc.
By baddogone0 on 5/14/2004 3:34:45 PM
E-mail: tryals@angelfire.com
The following was posted on belladorgoup.com website, apparently in January.
Endovasc Scam Warning
Dated: Friday, 9 January, 2004
Dear Client
We have been advised that one of our long-standing Clients has been contacted by a company called Bellador Institutional Services, offering to purchase Endovasc shares in exchange for shares of Advanced Micro Devices.
'Bellador Institutional Services' has no connection with our company, and is being operated as a fraudulent scheme to lure unsuspecting investors into wiring money to an account that has no connection with Bellador Advisory Services (Labuan) Ltd, or Endovasc Inc.
The client received a recommendation that he should exchange stock that he owns in Endovasc, Inc. for stock in Advanced Micro Devices, a company that has a very strong recent trading history. The request included a false claim that this company had inside information about ¡°bad news¡± that would soon be released about Endovasc which would allegedly cause the trading price to fall. The client was offered the opportunity to exchange shares of Advanced Micro Devices for Endovasc shares before the release of the alleged bad news, but was told that he would have to wire almost $7,000.00 U.S. to Union Bank of California that would be forward to an account at FBME Limited in Nicosia, Cyprus to complete the transaction.
This is a completely fraudulent scheme by a company that is not connected with the real Bellador Advisory Services (Labuan) Limited. We would never give this type of advice regarding the purchase or sale of securities. It would be a violation of the securities laws of the United States for us to provide information to you from insiders at Endovasc that is not generally available to the investing public and for you to purchase or sell stock based upon that inside information that, when released to the public, might affect the trading price.
This fraudulent company called Bellador Institutional Services has no connection with Bellador Advisory Services (Labuan) Limited. The Peter Taylor who is referenced in the communications from Bellador Institutional Services is not the Peter Taylor who is a director of Bellador Advisory Services (Labuan) Ltd. The money that you may be requested to wire will almost certainly wind up in the hands of criminals in Cyprus rather than being used to pay for shares of stock in a public company called Advanced Micro Devices.
All communications with you by representatives of Bellador Advisory Services (Labuan) Ltd will be from persons at our office who are known to you. All real transactions will be confirmed by the usual Transaction Confirmation letter with instructions for funds to be sent only to trust accounts of Logan & Geotas, PLC., our law firm in Phoenix, Arizona, USA. You will not receive wire transfer instructions that show a bank outside of the United States as a final destination. Cyprus has joined Nigeria and several former Soviet republics as centers of Internet fraud and the recent schemes seem to be targeting sophisticated, high networth investors.
Our Internet technology consultants confirm that we have a secure firewall on our servers and that the confidential information about addresses of our clients who previously purchased Endovasc stock has not been compromised. The matter has been reported to the two banks which were listed on the fraudulent wire transfer instructions.
We have notified Endovasc, Inc. of the attempted fraud. We have requested (and Endovasc has agreed) that all future communications of shareholder addresses between Endovasc and its stock transfer agent be sent by facsimile transmission rather than by e-mail to reduce the chance that confidential information about client addresses could be obtained by the interception of e-mail messages.
Please advise us if you have any concerns or issues with the above information, because we are treating this as a very serious matter and we are also advising our Regulatory Authority LOFSA (Labuan Offshore Financial Services Authority) in respect of this matter.
Bellador Advisory Services (Labuan) Ltd
Client Services Dept
Reply Re: Bellador boiler room, Endovasc,Advanced Micro Devices,etc.
By Ron Logan on 11/10/2004 4:06:36 AM
E-mail: logan@logan-geotas.com
Sir:
It is always troubling when anonymous, uninformed, message board 'experts' make posts such as the following:
'The question remains as to why James Dale Davidson who founded 'naanss' supposedly to 'stop naked short selling' with convicted Canadian securities fraudster Brent Pierce,and who must have dumped many unaccounted for shares when he pumped through his 'Vantage Point' etc. wasn't included in this group of insider share dumpers.Nor Belladorgroup boiler room boys out of Kuala Lumpur for that matter.'
I have no connection with, or special knowledge of, the other parties that you mention, but I am well informed about Bellador Advisory Services (Labuan) Limited and its operations. You are completely wrong about your accusations of short selling and regarding your claim that Bellador operates a boiler room. Your post suggests that you are do not understand what an insider is, what a boiler room is and what constitutes commercial defamation.
1. Bellador Advisory Services (Labuan) Limited owns no shares in Endovasc, Inc.
2. Bellador Advisory Services (Labuan) Limited is not a boiler room. It is a research firm and financial advisor that screens well over 60 public companies for each one that it recommends to its high net worth clients around the globe. It has an extensive due diligence system that identifies late development stage and early revenue stage companies that are expected to become highly profitable. Bellador looks for companies that occupy a unique place in their industry, have strong intellectual property protection on exciting products, can become very successful with a modest amount of capital and that have a strong management team which has a strong plan for success.
Endovasc is one of those companies. The screening, information gathering and analysis performed by Bellador's due diligence team is followed by the preparation of a report on each opportunity that is more extensive in some respects than analyst reports that are produced by major brokerage houses. Bellador, in addition to conducting research to fully understand a funding candidate's industry, undertakes careful financial due diligence, conducts extensive interviews of all key employees, examines all important contracts to which the company has entered into and requires contract terms that allow for careful monitoring of the use of proceeds. Your complete misunderstanding of Bellador brings your own credibility into question.
3. Bellador's directors, not the company itself, have invested in some companies funded by its clients, but neither Bellador nor its directors have ever sold, shorted or otherwise engaged in hedging transactions involving a single share of any funded company. Bellador is subject to exhaustive audits by the licensing authority in Labuan, the Federal Territory of Malaysia (a growing financial center in East Malaysia). Any interested party can contact the Labuan Offshore Financial Services Authority (LOFSA) and will find that Bellador Advisory Services is licensed as a fund manager and advisor and has been thoroughly audited by both LOFSA and by the Malaysia Securities Commission within the past year. The audit is intended to assure that Bellador has complied fully with the strict laws of LOFSA. Bellador is in full compliance with all applicable laws and regulations. The regulatory authorities in the Federal Territory of Labuan and in Malaysia are very aggressive in their protection of investors and not at all like the fast and loose jurisdictions that have developed reputations as havens for shady operators.
4. It is patently ridiculous to assert that Bellador would sabotage its own business by causing harm to the share price of Endovasc, Inc. or any other company that it recommends to its clients. Only if Bellador's clients experience consistently good returns will the clients have confidence in Bellador's recommendations. Bellador has an outstanding track record of recommending companies that have experienced success. Not all excellent investment opportunities bear fruit in the first year. Endovasc, for example, was viewed as a 2-3 year opportunity. Bellador has sophisticated clients and it maintains the confidence of those clients, who understand that strong companies can be shorted and that the best remedy is for the company to pursue an unwavering, determined strategy of producing good results.
Bellador has been a strong supporter of the efforts of Endovasc to fight the naked shorting. Anyone who doubts this can call Endovasc and speak with CFO Dwight Cantrell or Vice President for Business Development, Rob Johnson, about their high regard for Bellador and its directors. Mr. Cantrell and Mr. Johnson work with the attorneys for Endovasc in monitoring the naked short selling. They know who is doing it and when it is happening. They absolutely know that Bellador and its clients are a friendly ally and are not part of the problem.
Anyone who doubts the positive direction in which Endovasc is moving and the level of confidence that its investors have in the company should read the press releases linked below. Endovasc has recently reorganized as a Business Development Company and has announced the raise of $5,000,000:
http://biz.yahoo.com/bw/041007/75356_1.html
http://biz.yahoo.com/bw/041007/75357_1.html
Your delight in attacking responsible people and companies and indiscriminately lumping them into a category with bad actors is a destructive way for someone to spend their time on the Internet. You carefully hide behind the anonymity of the Internet. I have no need to do so.
Ronald J. Logan
Logan & Geotas, PLC
Attorneys at Law
Suite 300
2198 E Camelback Rd.
Phoenix, AZ 85016-4747
Office: (602) 957-9320
Internet Fax: (602) 532-7694
Re: Bellador Group
By did bellador use offshorebusiness to solicit on american soil ? on 11/19/2004 4:53:40 PM
E-mail: biodog0@yahoo.com
While I doubt Hunter,or David Marchant,nor myself rushed to phone Mr.Taylor with our orders,it did seem to me that that was
his purpose here.Is that legal ? Just curious about others thoughts on this matter.
For American soil at least, the paragraph below seems to prohibit Bellador from cold-calling total strangers.
(d) NO PUBLIC SOLICITATION. Each Purchaser will acknowledge in
his/her/its Subscription Agreement that he/she/it is not subscribing for the Shares as a result of or subsequent to any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or
broadcast over television or radio, or presented at any seminar or meeting, or any solicitation of a subscription by a person not previously known to the Purchaser in connection with investments in securities generally. Bellador has
not engaged and will not engage in any 'Directed Selling Efforts in the U.S.' as defined in Regulation S promulgated by the SEC under U.S. securities laws.
By: welshing
Bellador Success
By Peter Taylor on 11/10/2004 2:41:34 AM
E-mail: petertaylor@belladorgroup.com
www.belladorgroup.com
After the fantastic success of Biophan last year where clients made 233% Bellador seamingly are doing it again with the most recent recommendation American Soyl Technologies SOYL in the last quarter rising 93.24%
About Biophan Technologies
Biophan develops and markets cutting-edge technologies designed to make biomedical devices safe and compatible with the magnetic resonance imaging (MRI) environment. The Company develops enabling technologies for implanted medical systems such as pacemakers, and interventional surgical devices such as catheters and guidewires, as well as stents and other implants that can be safely and effectively imaged under MRI. The technology is also being used to create MRI contrast agents, and has expanded to include other applications, such as drug delivery and power systems derived from body heat. Four Biophan product lines include advances in nanotechnology and thin film coatings. Committed to growth through innovation and developmental leadership, Biophan and its licensors have 21 issued U.S. patents and 71 patents pending, in areas including nanotechnology (nanomagnetic particle coatings), radio frequency filters, polymer composites, thermoelectric materials for batteries generating power from body heat, and photonics. Biophan has joint development arrangements with Boston Scientific (NYSE:BSX - News) and NASA's Ames Center for Nanotechnology. Biophan's goal is to make all biomedical devices capable of safely and successfully working with MRI, and delivering other technologies which will improve quality of life.
About American Soil Technologies Inc.
American Soil Technologies develops, manufactures and markets cutting-edge technology that decreases the need for water in agriculture and other plant growing environments while increasing crop yield and reducing the environmental damage caused by common farming practices. The company has an exclusive license to two method patents with cross-linked and linear polymers as their basis. The company also has three patents allowed on a revolutionary new machine, the M-216 Polymer Injector, designed to install its liquid products in mature turf as well as some standing crops. The machine has been built, tested and is now operational.
About Bellador:
Bellador Group carries out substantial investigation of the NASDAQ, OTC:BB and IPO markets to filter out those undervalued situations which demonstrate future potential in their given market sector. We source small and micro cap situations, which are currently under followed.
To find about more about the Bellador Group and the service we provide please visit our website at www.belladorgroup.com
Reply Re: Bellador boiler room, Endovasc,Advanced Micro Devices,etc.
By James Dale Davidson critic on 11/11/2004 12:53:21 AM
E-mail: biodog0@yahoo.com
My Dear Mr.Logan,
There never WAS a question of 'naked shorting' to my knowledge except as a fraud to conceal a pump pump operation and blame share price collapse erroneously on 'naked shorting'.
This was and is a fraudulent scheme created by Mr.James Dale Davidson,Brent Pierce,et.al.using his now defunct 'naanss' website to promote this idea of market makers such as Schwab,Ameritrade,Refco et.al.,in the supposed case of Endovasc,to sale shares that don't exist for dumping, i.e.'naked shorting'.
However whether we look at Endovasc,Genemax,or any number of 'companies' Davidson's
and Brent Pierce's ICI PROMOTED THE 'NAKED SHORTED SCAM' we find it is used to mask insider dumping.
While The Non-Doctor David P Summers,formerly of the questionable American Biomed or Ambi pump dump and his faithful accountant Dwight Cantrell along with 'famed trial attorney O'Quinn' made fraudulent or certainly unprovabe claim of 'naked shorting' by those brokers´in businesswire prs,it was used to mask Davidson's pump dump of around November 2002.And this was after the fraudulent 'reverse split'of July 2002 of 40 to 1,of course increasing price per share 40 times overnight.
The company in businesswire prs claimed sharesholders would maintain the same 'proportionate per centage ownership' they had before the reverse split but this of course was a lie.In fact I have a copy of the Endovasc management's 'shareholder agreement'to a 'select client' of Charles Schwab to deposit up to 30 million shares in that Schwab account in May 2002 two months BEFORE the July 'reverse split'that should have reduced the 100 million or so shares outstanding to less than 3 million.I believe this is where the mythical 'naked short' came from and why Schwab has remained quiet to this day to protect the name,possibly their LOM account held by various anonymous holders perhaps,of this 'select client'.
I say 'select client' because that is handwrtten with the May date Schwab received it from that account holder.I believe the handwriting is that of Elias Torrez of Schwab's Chairman's Division who sent a photocopy to me almost a year after the fact.
So Charles Schwab and Schwab Capital the market maker had what to me was insider trading information that I as a regular customer of Endovasc shareholder had no access to.And after the tout by James Dale Davidson in November 2002 and consequent volume and share price increase,I am sure that Schwab account loaded with non-reverse split shares dumped and dumped.And those liars,fraudsters and con artists called it a 'naked short' knowing Schwab would not say a thing.So Charles Schwab's hands aren't so clean either.
I presume 15 to 20 million shares were outstanding in a short time and some millions of dollars made and from the standpoint of where my money went,laundered overseas from the Shwab or other accounts to avoid avccounting for it and U.S. taxes.I call it 'share-money laundering',masking the flow of shares in order to conveniently mask the flow of dollars from defrauded 'investors or even to mask other money one needs to 'legitimise'thus making it money laundering.
I could go on but like I said it was NOT 'naked shorting',it was a 'reverse split' followed by a pump dump from a Charles Schwab and possibly other accounts.I have the the photocopy of the agreement to fill this account withup to 30 million shares with apperantly no money changing hands.If Schwab looked at the account's 'trading' records and patterns I'm sure they would see the dump of late 2002 from the account.
Capisce ?
This explains in great part why The Navada Agency And Trust Company transfer agent Alexander Walker received up to $ 200,000 in shares in mid-2003 was an insider.His expertise is in part masking the flow and float of shares while the touters mask their dumping with fraudulent unprovable non-existent claims of 'naked shorts'.In the case of Davidson going to the extreme of opening a whole website and pr machine to promote the illusion of naked shorting by market makers to mask his penny stock pump dumps.
That to my knowledge is where you and Belladorgroup came in.
Re: Bellador Group
By By: welshing on 11/19/2004 4:39:08 PM
L&G write:
“Bellador's directors, not the company itself, have invested in some companies funded by its clients".
This seems indeed to be the case, according to the info below, plucked from SEC filings where they figure. The company (Bellador) does not need to invest in the companies funded by its clients in order to function in the way it does (i.e. stock placement, as opposed to stock purchase). Commission only on stock sold following the cold-calling campaign. You can see below how they can offer 'clients' a discount on the bid price.
The 3 companies, American Soil, Biophan and China Wireless appear to be the only ones associated with Bellador through SEC filings. Others may have been pre-IPO or via a third party.
The promotion by Bellador of Endovasc in 2002 obviously followed a SEC-free route in terms of how Bellador earned its commission. L&G state in the message they posted to KYC and copied here that “Anyone (who doubts this) can call Endovasc and speak with CFO Dwight Cantrell or Vice President for Business Development, Rob Johnson, about their high regard for Bellador and its directors". So, assuming that is the case, both Cantrell and Johnson sound pleased with the level of service offered by Bellador.
The Bellador web site lists the following as previous recommendations:
InforMax Inc., Possis Medical, Allied Healthcare International Inc., SureBeam Corporation, Rite Aid Corporation, Hybridon Inc., CITA BioMedical, SRA International Inc., Biophan Technologies Inc.
While American Soil may be too recent for inclusion, 2 notable absentees are Endovasc and China Wireless.
Also remarkable (and amusing) is how Peter Taylor, Director of Bellador, seems to be trying to throw us off the scent (in his KYC board messages) by writing in a style that would be more typical of someone who left school age 12.
Excerpts from
Bellador deal with American Soil:
American Soil Technologies Inc · 10QSB · For 6/30/4 · EX-10.2
STOCK PLACEMENT AGREEMENT
DATED JULY 16, 2004
FOR
AMERICAN SOIL TECHNOLOGIES, INC.'S
COMMON STOCK
STOCK PLACEMENT AGREEMENT
STOCK PLACEMENT AGREEMENT (the 'Agreement'), dated as of July ___, 2004 between
AMERICAN SOIL TECHNOLOGIES, INC., a Nevada corporation having offices at 12224
Montague Street, Pacoima, California 91331 (the 'Company'), and Bellador
Advisory Services (Labuan) Ltd. a Malaysian business company licensed as a fund
manager in Labuan, the registered address of which is Level 6, Wisma Oceanic,
Jalan OKK Awang Besar, 87007 W P Labuan, East Malaysia, Malaysia, the investment
advisor of its clients (sometimes referred to as 'Bellador') who shall be
purchasers of the securities. Company and Bellador shall sometimes be
collectively referred to as the 'Parties.'
RECITALS:
WHEREAS, Bellador has examined the business and financial records of
Company and has relied upon the information and representations provided by the
Company herein, and
WHEREAS, Bellador has decided to recommend the Company to Bellador's
clients as an investment, and
WHEREAS, the Parties intend for this Agreement to set forth their
understanding of the terms and conditions of both phases of funding and
acknowledge that Bellador will be raising funds for the Company from clients
outside of the United States, and
WHEREAS, Bellador agrees that it will only recommend investment in the
Company to Bellador's clients outside the United States only to those clients
that are not 'U.S. Persons' as defined in SECTION 1.4(F) and after providing all
such clients with information about the Company that has been approved by the
Company and the attorneys for the Company.
IT IS, THEREFORE, HEREBY AGREED BETWEEN THE PARTIES AS FOLLOWS:
ARTICLE I.
PURCHASE, SALE AND TERMS OF SHARES
1.1. THE SHARES. The Company agrees to issue and sell to Bellador's clients
(sometimes referred to collectively as 'Purchasers' and individually as
'Purchaser') in an offshore transaction negotiated outside the United States and
to be consummated outside the United States. In consideration of and in express
reliance upon the representations, warranties, covenants, terms and conditions
of this Agreement, Bellador agrees to recommend that its clients evaluate the
opportunity to purchase from the Company shares (the 'Shares') of the Company's
Common Stock. Shares will be sold by the Company to Bellador's clients for the
previous trading day's closing bid price of the Company's shares of Common Stock
as quoted on the OTC Bulletin Board (the 'OTCBB') immediately preceding the date
on which the Purchaser makes a firm commitment to purchase such Shares, which
shall be confirmed in writing by Bellador to Purchaser, and the Company shall
receive the previous trading day's last bid for its shares from time to time,
and, after all expenses of the transaction, including legal, due diligence,
accounting, marketing and consulting fees, the Company shall net no less than
50% of the closing bid price. If the Company becomes listed on another United
States stock exchange or public trading market on which the shares of the
Company trade, the price shall be fixed in an amount equal to the previous
trading day's last trade during hours that the market was open and not based
upon after-hours trading.
1.2. SUBSCRIPTION FOR SHARES; CLOSING. Bellador shall deliver to the
Company a subscription agreement ('Subscription Agreement') completed in full
and signed by each potential Purchaser of Shares. After the Company accepts
subscriptions, the closing of the purchases of the Shares will take place in
Phoenix, Arizona, using the services of Arizona Escrow & Financial Corporation
('Escrow Agent'), a licensed Arizona escrow company. At each closing, the
Purchaser will cause immediately available funds to be delivered to the Escrow
Agent and Company shall deliver the share certificate(s) and/or other securities
that may be purchased to the Escrow Agent according to the terms of the Escrow
Agreement (a copy of which is attached hereto as EXHIBIT A). If the Company has
not had the opportunity to fully review the Subscription Agreement or any other
Transaction Documents related to any such purchase before the Closing with
Escrow Agent, the Company shall notify Bellador that such closing remains
'subject to' the Company's review of any documents that have not yet been
delivered to and examined by the Company, in which case Bellador will hold the
certificate(s) for such Shares pending the Company's review of such documents.
Once the Company has completed its review, it will promptly notify Bellador that
it either (a) accepts such subscription, in which case Bellador shall promptly
release such certificate(s) to the Purchaser; or (b) rejects such subscription,
in which case (i) the Company shall promptly refund the purchase price for such
Shares to the Purchaser, and (ii) Bellador, or Escrow Agent, as the case may be,
shall promptly return the certificate(s) for such Shares to the Company.
1.3 COVENANT OF BEST EFFORTS. Subject to the rights of each party to
terminate this Agreement as provided in SECTION 1.5 below, Bellador agrees to
use its best efforts to arrange for up to $3,500,000 (U.S.) of net funding to
Company on or before May 31, 2005, until the funds have been delivered to
Company or one of the Parties has terminated this Agreement.
(a) ACCESS TO INFORMATION. Bellador, in making its recommendation to
prospective Purchasers regarding the decision to purchase the Shares, has relied
and will rely upon independent investigations made by it and/or its
representatives that were based upon information, documents and representations
by the Company. Reports based upon such information have been and will be
prepared by Bellador and submitted to the Company and its legal counsel for
approval. Bellador will not submit reports or other information on the Company
to its clients regarding potential purchases of the Company's Shares without
obtaining prior approval of the materials by the Company. Each Purchaser and/or
its representatives during the course of this transaction, and prior to the
purchase of any Shares, will have had the opportunity to ask questions of and
receive answers from the management of the Company concerning the terms and
conditions of the offering of the Shares and to receive any additional
information, documents, records and books relative to its business, assets,
financial condition, results of operations and liabilities (contingent or
otherwise) of the Company.
(b) SOPHISTICATION AND KNOWLEDGE. Each Purchaser and/or its
representatives will have such knowledge and experience in financial and
business matters that such Purchaser can represent himself/herself/itself and
will be capable of evaluating the merits and risks of the purchase of the
Shares. Each Purchaser will be instructed not to rely on the Company with
respect to the tax and other economic considerations of an investment in the
Shares, and each Purchaser will be instructed to rely on the advice of, or to
consult with, only the Purchaser's own advisor(s). The Purchasers shall be
required to represent that he/she/it has not been organized for the purpose of
acquiring the Shares in a signed Subscription Agreement.
(c) ACKNOWLEDGEMENT OF RISK. Each Purchaser will acknowledge in
his/her/its Subscription Agreement that the purchase of the Shares involves a
high degree of risk and further acknowledge that he/she/it can bear the economic
risk of the purchase of the Shares, including the total loss of its investment.
Each Purchaser will acknowledge in his/her/its Subscription Agreement that
he/she/it has no present need for liquidity in connection with its purchase of
the Shares.
(d) NO PUBLIC SOLICITATION. Each Purchaser will acknowledge in
his/her/its Subscription Agreement that he/she/it is not subscribing for the
Shares as a result of or subsequent to any advertisement, article, notice or
other communication published in any newspaper, magazine or similar media or
broadcast over television or radio, or presented at any seminar or meeting, or
any solicitation of a subscription by a person not previously known to the
Purchaser in connection with investments in securities generally. Bellador has
not engaged and will not engage in any 'Directed Selling Efforts in the U.S.' as
defined in Regulation S promulgated by the SEC under U.S. securities laws.
(e) AUTHORITY. Bellador has full right and power to enter into and
perform pursuant to this Agreement. This Agreement constitutes Bellador's valid
and legally binding obligation, enforceable in accordance with its terms.
Bellador is authorized, licensed and otherwise duly qualified to give investment
advice to its clients under the laws of Labuan. Bellador agrees to comply with
the laws of any jurisdiction in which it contacts clients regarding this
opportunity.
(f) REGULATION S EXEMPTION. Bellador understands and will require each
Purchaser to acknowledge in writing that the Shares are being offered and sold
to it in reliance on an exemption from the registration requirements of United
States federal and state securities laws under Regulation S promulgated under
the Securities Act of 1933 (the 'Securities Act') and that the Company is
relying upon the truth and accuracy of the representations, warranties,
agreements, acknowledgments and understandings of such Purchaser set forth in
his/her/its Subscription Agreement in order to determine the applicability of
such exemptions and the suitability of the Purchaser to acquire the Shares. In
regard to Shares sold pursuant to the Regulation S exemption, Bellador
represents, warrants and agrees that:
(i) No Purchaser will be a U.S. Person (as defined below) or an
affiliate (as defined in Rule 501(b) under the Securities Act) of the Company. A
U.S. Person means any one of the following:
(A) Any natural person residing in the United States of America;
(B) Any partnership or corporation organized or incorporated
under the laws of the United States of America;
(C) Any estate of which any executor or administrator is a U.S.
person;
(D) Any trust of which any trustee is a U.S. person;
(E) Any agency or branch of a foreign entity located in the
United States of America;
(F) Any non-discretionary account or similar account (other than
an estate or trust) held by a dealer or other fiduciary for the
benefit or account of a U.S. person;
(G) Any discretionary account or similar account (other than an
estate or trust) held by a dealer or other fiduciary organized,
incorporated or (if an individual) resident in the United States of
America; and
(H) Any partnership or corporation if:
(1) Organized or incorporated under the laws of an foreign
jurisdiction; and
(2) Formed by a U.S. person principally for the purpose of
investing in securities not registered under the Securities Act,
unless it is organized or incorporated, and owned, by accredited
investors (as defined in Rule 501(a) under the Securities Act)
who are not natural persons, estates or trusts.
(ii) At the time of the origination of contact concerning this
Agreement and the date of the execution and delivery of this Agreement, Bellador
was outside of the United States and has agreed to limit its communications
about the Shares to clients who are non-U. S. Persons.
(iii) Each Purchaser will be required to agree in writing that
he/she/it shall not, during the period commencing on the date of issuance of the
Shares and ending on the first anniversary of such date, or such shorter period
as may be permitted by Regulation S or other applicable securities law,
including any registration of the Shares, below (the 'Restricted Period'),
offer, sell, pledge or otherwise transfer the shares in the United States, or to
a U.S. Person for the account or benefit of a U.S. Person, or otherwise in a
manner that is not in compliance with Regulation S.
(iv) Each Purchaser will be required to agree in writing that he/she/it
shall, after expiration of the Restricted Period, offer, sell, pledge or
otherwise transfer the Shares only pursuant to registration under the Securities
Act or an available exemption therefrom and in accordance with all applicable
state and foreign securities laws.
(v) Each Purchaser shall be required to represent in writing that
he/she/it has not in any jurisdiction engaged in, and prior to the expiration of
the Restricted Period will not engage in, any short selling of or any hedging
transaction with respect to any of the shares of Company's common stock,
including without limitation, any put, call or other option transaction, option
writing or equity swap.
(vi) Each Purchaser shall be required to represent in writing that
neither he/she/it nor any person acting on his/her/its behalf has engaged, nor
will engage, in any directed selling efforts to U.S. Persons with respect to the
Shares and the Purchaser and any person acting on its behalf has and will comply
with the 'offering restrictions' requirements of Regulation S under the
Securities Act.
vii) The transactions contemplated by this Agreement have not been
pre-arranged with a buyer located in the United States or with a U.S. Person,
and are not part of a plan or scheme to evade the registration requirements of
the Securities Act.
(viii) Neither Bellador nor any person acting on its behalf has
undertaken or carried out any activity for the purpose of, or that could
reasonably be expected to have the effect of, conditioning the market in the
United States, its territories or possessions, for any of the Shares. Bellador
agrees not to cause any advertisement of the Shares to be published in any
newspaper or periodical or posted in any public place and not to issue any
circular relating to the Shares in the U.S. or its territories and only in
compliance with any local applicable securities laws.
(ix) Each certificate representing the Shares shall be endorsed with
the following legends:
(a) THESE SECURITIES ARE NOT REGISTERED WITH THE UNITED STATES
SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT, IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER REGULATION S
PROMULGATED UNDER THE SECURITIES ACT. TRANSFER IS PROHIBITED EXCEPT IN
ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO
REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM REGISTRATION; AND HEDGING TRANSACTIONS INVOLVING THESE
SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE
SECURITIES ACT.
(b) Any other legend required to be placed thereon by applicable
federal or state securities laws.
3.5 APPROVAL OF PURCHASERS' LEGAL COUNSEL FOR RESTRICTED SECURITIES OPINION
LETTERS. Company acknowledges that each Purchaser may use the services of Logan
& Geotas, PLC, of Phoenix, Arizona, as legal counsel to determine whether, after
the required holding period, each proposed sale of the shares purchased under
this Agreement pursuant to Regulation S may be sold in compliance with Rule 144
and, if so, to issue an appropriate opinion letter. The Company agrees the
opinion letter forms attached hereto as EXHIBIT B are approved as the forms to
be used by Logan & Geotas for such purposes.
3.7 ALLOCATION OF PROCEEDS FROM SALES OF THE SHARES. The Company and
Bellador agree as follows with respect to the Company's allocation of proceeds
from sales of the Shares:
(a) Marketing and sales: $720,000;
(b) General and administrative: $1,300,000,
(c) Inventory and development: $1,000,000;
(d) The Company shall set aside up to a maximum of $480,000, from
proceeds of sales of the Shares in order to fund the retention of an investor
relations firm and a public relations firm and to otherwise conduct investor
relations activity pursuant to SECTION 3.3. The Company shall provide a monthly,
written report of its investor relations and public relations efforts and
expenses to Bellador.
… IN WITNESS WHEREOF, the parties hereto have caused this Stock Placement
Agreement to be executed as of the date first above written. .
AMERICAN SOIL TECHNOLOGIES, INC.
/s/ Carl Ranno
-------------------------
By: Carl Ranno
Its: President
BELLADOR ADVISORY SERVICES (LABUAN) LTD.
/s/ James Kirby
-------------------------
By: James Kirby
Its: Director
Bellador and Biophan:
Exhibit 10.11
BioPhan Technologies Inc.
Financial Accommodations Agreement
Bellador (Labuan) Ltd Date: July 1, 2002
Gentlemen:
The undersigned as a duly authorized officer's or agent's of Bellador
(Labuan) Ltd., a company incorporated in Malaysia hereby states and agrees
on behalf of BELLADOR (LABUAN) LTD., as follows:
BELLADOR (LABUAN) LTD., understands that BioPhan Technologies Inc., a
corporation organized under the laws of the State of Nevada, U.S.A. (the
'Company'), is making available, pursuant to the exemption from
registration provided under Regulation S promulgated by the United States
Securities and Exchange Commission (the 'SEC') under the Securities Act of
1933, as amended (the '1933 Act'), up to 1,000,000 restricted shares of its
$.005 par value Common Stock (the 'Restricted Shares'). At the Company's
election, it may increase the number of Restricted Shares to 3,000,000.
In acknowledgement of the foregoing and upon the representations appearing
hereinafter, BELLADOR (LABUAN) LTD., hereby agrees to offer the Restricted
Shares (the 'Shares') to their clients (the 'Clients'), at such times and
in such numbers of the Shares as shall be determined by BELLADOR (LABUAN)
LTD., and with reference to clauses 4 (c) and 4 (d) herein, at a price per
Share equal to the reported closing trading price; (i.e. Bid Price) of the
Company's shares on the most recent day, prior to the date of the sale of
Shares, upon which the Company's shares traded on the OTC Bulletin Board.
BELLADOR (LABUAN) LTD., Each Client purchasing Shares shall deliver a
subscription agreement along with the purchase price for the Shares,
together with a transaction fee of 0.75% or a minimum of $75.00 in US
dollars to the Company. The Company agrees to issue to BELLADOR (LABUAN)
LTD., restricted common shares valued on the same basis in the equivalent
amount of 10 (ten) percent of the value of any Shares so placed by BELLADOR
(LABUAN) LTD; the Company will remit to BELLADOR (LABUAN) LTD. additional
compensation for the services provided a cash amount equal to 35% of the
amount BELLADOR (LABUAN) LTD's clients paid for the shares, plus the
relevant transaction fee less any related bank clearance fees. Funds due to
BELLADOR (LABUAN) LTD., will be remitted by the Company to BELLADOR
(LABUAN) LTD. or its nominees, on a weekly basis. Upon acceptance by the
Company, BELLADOR (LABUAN) LTD will hereby confirm its intent to
encourage Clients to become a shareholder of the Company. In order to
induce the Company to accept its offer, BELLADOR (LABUAN) LTD., advises as
follows:
1 Receipt of Information ; BELLADOR (LABUAN) LTD., acknowledges that it
has received and has carefully reviewed the Company's annual report on Form
10-K for the fiscal year ended February 28, 2002 and the report on Form 10-
Q for the quarters ended May 31, August 31 and November 30, 2001 (the
'Reports').
2 Availability of Information; BELLADOR (LABUAN) LTD., hereby
acknowledges that the Company has made available to it the opportunity to
ask questions of, and receive answers from, the Chief Executive Officer of
the Company, and any other person or entity acting on behalf of the Company
as requested by BELLADOR (LABUAN) LTD., concerning the terms and conditions
of the offering and the materials and information contained in the Reports,
and to obtain any additional information requested by BELLADOR (LABUAN)
LTD., to the extent the Company possesses such information or can acquire
it without unreasonable effort or expense, as it may deem necessary to
verify the accuracy of the information provided by the Company or any such
person or entity.
3 Representations, Warranties and Covenants; BELLADOR (LABUAN) LTD.,
represents and warrants to the Company (and understands and acknowledges
that the Company is relying on the accuracy and completeness of such
representations and warranties in connection with the availability of an
exemption for the offer and sale of the Shares from the registration
requirements of the U.S. securities laws) that:
a) BELLADOR (LABUAN) LTD., understands and agrees that the Shares
have not been registered under the 1933 Act, or the securities
laws of any other jurisdiction and will be deemed 'restricted
securities' as defined in Rule 144 under 1933 Act.
b) BELLADOR (LABUAN) LTD., understands and agrees that, if this
Finance Agreement is accepted and the Shares are sold to BELLADOR
(LABUAN) LTD., Clients, such sales will be pursuant to the
exemption from the 1933 Act's registration requirement provided in
Regulation S, and that BELLADOR (LABUAN) LTD., is prohibited from
selling or otherwise disposing of the Shares except in accordance
with Regulation S which imposes, among other things, the resale
restrictions specified in Rule 144 promulgated under the 1933 Act,
or pursuant to another available exemption from registration, and
the shares will continue to be deemed restricted securities
notwithstanding that they were acquired in a transaction pursuant
to Regulation S.
c) BELLADOR (LABUAN) LTD., understands and agrees that hedging
transactions involving the Shares may not be conducted unless in
compliance with the 1933 Act.
d) BELLADOR (LABUAN) LTD., understands and agrees that the Company
may lodge stop transfer instructions with its transfer agent in
order to restrict the transfer of the Shares in accordance with
the foregoing representations, and that the certificates
representing the Shares will contain a legend restricting transfer
as prescribed by Section 903(b)(3) of Regulation S.
e) BELLADOR (LABUAN) LTD., understands and agrees that Clients are
not 'U.S. Persons' as that term is defined in Regulation S and
that no offer or sale shall be made to any US resident or citizen
or Canadian resident or citizen.
f) BELLADOR (LABUAN) LTD., understands and agrees that Clients will
always reside and be located outside the U.S. at the time of both
the offer and sale of the Shares and that there will be no
directed selling efforts in the US or Canada.
g) BELLADOR (LABUAN) LTD., understands and agrees that Clients are
not purchasing the Shares as a part of any plan or scheme to evade
the registration requirements of the 1933 Act. BELLADOR (LABUAN)
LTD. and that Clients are buying for investment and not for resale
in the United States, except in accordance with Rule 144 or any
other exemption from registration.
h) BELLADOR (LABUAN) LTD., understands and agrees that Clients have
an interest only in part with respect to this Finance Agreement
Clients are not acquiring the Shares, or any part of them, for the
account or benefit of a U.S. person or US or Canadian resident or
citizen, and that No buyer at the time of the order or sale shall
be in the US and BELLADOR (LABUAN) LTD., must in good faith so
believe.
i) In the event BELLADOR (LABUAN) LTD., distributes any portion of
the Shares subscribed for hereby to any distributor, dealer or
other person receiving any selling concession, fee or other
remuneration, prior to the expiration of a one-year distribution
compliance period, BELLADOR (LABUAN) LTD., agrees that it will
send a written confirmation or other notice to such purchaser
stating that such purchaser is subject to the same restrictions on
offers and sales that apply to a distribution under Regulation S
and that the Shares acquired are subject to Rule 144 resale
restrictions.
j) BELLADOR (LABUAN) LTD., understands and agrees that it shall have
sole responsibility for determining whether securities laws
registration or other procedures of any non-United States
jurisdiction or jurisdictions will be applicable to the
transactions contemplated herein, and shall take all steps
necessary to ensure compliance with any such applicable securities
laws and regulations and BELLADOR (LABUAN) LTD., shall have sole
responsibility for making any disclosures required by any non
United States jurisdiction.
k) BELLADOR (LABUAN) LTD., agrees that it will not make any
representation to its Clients about BioPhan Technologies Inc.,
without authorization from BioPhan Technologies Inc., BELLADOR
(LABUAN) LTD., agrees that it will indemnify and hold BioPhan
Technologies Inc., harmless in the event of any breach or
violation of any securities laws in any jurisdiction and all
activities undertaken pursuant to this agreement are at the sole
risk of BELLADOR (LABUAN) LTD.
l) Neither BELLADOR (LABUAN) LTD., nor any affiliates of BELLADOR
(LABUAN) LTD., nor any person acting on its behalf, has engaged in
any (i) general solicitation or general advertising within the
meaning of Rule 502(c) under the 1933 Act or (ii) directed selling
efforts within the meaning of Rule 903 under Regulation S and
BELLADOR (LABUAN) LTD. has complied and will comply with the
offering restrictions of such Rule 903.
4 Offering Procedure; BELLADOR (LABUAN) LTD., understands agrees that
this Financial Agreement is subject to each of the following terms and
conditions:
a) The Company may reject this Financial Agreement for any reason,
and this Financial Accommodations Agreement shall become binding
upon the Company only when accepted, in writing, by the Company.
b) If the Financial Agreement is rejected, all funds submitted hereby
will be returned to BELLADOR (LABUAN) LTD., Clients without
interest thereon or deduction there from.
c) This Financial Agreement will have an initial term of three months
(the 'Initial Term') but will automatically renew for successive
one month periods unless terminated pursuant to paragraph 4(e).
d) Each order shall be accompanied by a subscription agreement in
form and substance satisfactory to BioPhan Technologies Inc.,, and
its acceptance shall be at the sole discretion of BioPhan
Technologies Inc.
e) After the Initial Term, this Financial Agreement may be terminated
by either party with thirty (30) days notice to the other party.
5 Payment; As payment for the subscription made hereby, BELLADOR (LABUAN)
LTD., Clients will tender to the Company, or its escrow agent as designate
by the Company, payment in U.S. Dollars, made to the order of BioPhan
Technologies Inc., or in such other form as may be acceptable to the
Company. Payment shall not be deemed completed until the money is
transferred to BioPhan's designated bank account.
6 Rule 144 Restriction Statement; Upon acceptance by BioPhan Technologies
Inc., of a fully completed subscription agreement, BioPhan Technologies
Inc., will undertake to issue a 'Statement' 'In Letter Format attached to
the Share Certificate' that will advise BELLADOR (LABUAN) LTD., Clients
that the shares purchased will become freely tradable after the elapse of
the fifteen month hold restriction period in compliance with Rule 144.
7 Share Certificates; BioPhan Technologies Inc., will provide share
certificates issued through a registered Stock Transfer Agent to BELLADOR
(LABUAN) LTD., Clients and to BELLADOR (LABUAN) LTD., within two weeks of
funds being received by the Company.
Very truly yours,
BioPhan Technologies Inc.
/s/Michael L. Weiner
___________________________
Michael L. Weiner
President and CEO
Accepted and Agreed to:
Bellador (Labuan) Ltd.
/s/Peter Taylor /s/James Kirby
___________________________ ___________________________
Peter Taylor James Kirby
Director Director
Bellador and China Wireless
REGULATION S STOCK PURCHASE AGREEMENT, dated as of October 22, 2003 between
CHINA WIRELESS COMMUNICATIONS, INC., a Nevada corporation having offices at 1746
Cole Boulevard, Suite 225, Golden, CO 80401-3210 (the 'Company'), and Bellador
Advisory Services (Labuan) Ltd. a Malaysian international business company
licensed as a fund manager in Labuan, the registered address of which is 6th
Floor, West Block, Wisma Selangor Dredging, Jalan Ampang, 50450 Kuala Lumpor,
Malaysia the investment advisor of its clients (sometimes referred to as
'Purchasers' Advisor') who shall be purchasers of the securities.
ARTICLE I.
PURCHASE, SALE AND TERMS OF SHARES
1.1. THE SHARES. The Company agrees to issue and sell to the
clients of Purchasers' Advisor in an offshore transaction negotiated outside the
U.S. and to be consummated and closed outside the U.S. and, in consideration of
and in express reliance upon the representations, warranties, covenants, terms
and conditions of this Agreement, the Purchasers' Advisor agrees to recommend
that its clients evaluate the opportunity to purchase from the Company shares
(the 'Shares') of the Company's Common Stock. The Company shall be paid 50% of
the bid price of the Company's shares of Common Stock as quoted on the OTC
Bulletin Board (the 'OTCBB') (or on such other United States stock exchange or
public trading market on which the shares of the Company trade if, at the time
of purchase, they are not trading on the OTCBB) immediately preceding the date
(the 'Call Date') the purchase order (the 'Purchase Notice') is received by the
Company (the 'Purchase Price'). Subject to the rights of each party to terminate
this agreement as provided in Section 1.5 below, Purchasers' Advisor agrees to
make a good faith effort to provide $3,500,000 of net funding to Company on or
before the end of July 2004 according to the following schedule: Purchaser shall
make a good faith effort to provide (1) $250,000 of net proceeds to Company by
the end of November 2003; (2) $400,000 of net proceeds to Company by December
31, 2004 and (3) $350,000 or more of net proceeds every 30 days to Company
beginning January 15, 2004, until the funds that Purchasers' Advisor has agreed
to raise have been delivered to Company.
This guy is a crazy
Tony Ryals is crazy for believing this global conspiracy against him but even so, if he wants to try and resolve it or see if there was indeed a global conspiracy to rip him off from his penny stock investment then there are legal options he can take. He should go to the SEC and file a complaint, he could even hire an attorney but that would cost him money since no attorney is going to take this nuts case on a contingeny fee. Posting umteen messages on message boards on a daily basis only make him look like a nut.
Yea, sure I believe that some outside people conspired with company insiders, brokerage firms, market makers, transfer agents and offshore accounts to make him lose money in a penny stock. Yea right. Come on dude, step into the real world. You lost money in a penny stock, it happens every day. You want certain information from your broker regarding other customer accounts and transactions and you are upset that they won't give it to you. They won't give it to you because that is confidential information and the only way you can obtain it is to go to the SEC and ask them to get it for you in order to try and prove your lunatic theory. Just because they won't give you information doesn't mean there is a conspiracy, it means they are following customer confidentialty rules and it doesn't mean that they are hiding anything. Do you think if I call them up they'll give me your trading records and name if I say pretty please? Hell no they won't and they shouldn't. Go to the SEC with your case. 10000 posts on a message board will only give you carpel tunnel.
Submitted: 12/17/2004 8:54:51 PM
Modified: 12/18/2004 12:22:07 AMTony
Antigua, Central AmericaGuatemala
LOM,Mr.Lines,Schwab,et.al. Pump Dump Accounts ,and Florida Hotels
The SEC investigation continues but Charles Schwab receives no mention here although the Schwab,VFinance,etc.brokerage accounts that LOM and Mr.Lines 'select clients' dumped penny stocks from is the reason behind the investigation of SEC's Attorney Mr.Ungar.
....................
US court reserves judgment over subpoenas
The Royal Gazette Dec.14,2004
By Jeannine Klein Menzies
A US district court has reserved judgment on whether the US Securities and Exchange Commission will be able to enforce four subpoenas against Lines Overseas Management and Scott Lines.
The subpoenas stem from an SEC investigation of alleged securities fraud involving Sedona Software Solutions Inc. and SHEP Technologies Inc., both of Vancouver, Canada, and HiEnergy Technologies Inc., of Irvine, California. The SEC says that it has asked LOM to provide information such as account statements relating to trades in the shares of these companies, but the Bermuda-based firm has refused on grounds that it is restricted by confidentiality laws. The Bermuda Monetary Authority has submitted evidence in support of the SEC's action.
Last Friday's hearing was scheduled to allow LOM and its managing director Scott Lines the opportunity to show cause why they should not be ordered to comply with the investigative subpoenas that SEC staff personally served on Mr. Lines in Miami International Airport on April 20, 2004.
The hearing before Magistrate Judge Alan Kay of the US District Court for the District of Columbia went ahead despite a request from Mr. Lines for leave to file an additional reply to SEC evidence.
Mr. Lines' counsel said in court documents that the SEC made 'numerous additional allegations against Scott Lines' in its reply memorandum and submitted 'over 3 inches of documents purportedly in support of these allegations'. Counsel said Mr. Lines needed time to review and digest the documents and new information in the SEC's allegations.
The judge denied the request for the sur-reply (secondary reply) on the basis that these are only granted, 'if the last pleading filed, the reply raises new matters.' He said that in this case no new factual allegations, nor legal arguments have been made.
Yesterday a spokesperson for LOM said that the 'denial was a procedural issue. Mr. Lines' counsel was able to provide the same information to the court during his verbal presentation'.
The spokesperson went on to say that during Friday's two hour hearing: 'LOM's counsel set forth arguments as to why the subpoenas should not be enforced, and advised that the proceedings are improper because there are existing, legal mechanisms for the SEC to request any remaining information it is seeking. It should be noted that this is a civil matter only, and that no charges have been filed in connection with the investigation.'
Documents filed with the court show that Mr. Lines' and LOM's status in the US are among the issues in dispute. Counsel asserts that the court does not have personal jurisdiction over Scott Lines because it would 'offend traditional notions of fair play and substantial justice for this Court to exercise 'tag' jurisdiction over a foreign national who has handed a subpoena while in the country to see a doctor'. Counsel also argues that the SEC does not have statutory authority to seek documents and information from outside the US through an administrative subpoena and the SEC has not provided facts to establish that Scott Lines, as an individual had minimum contacts with the United States 'sufficient to drag him into federal court in Washington, D.C'.
Mr. Lines lawyer Ivan B. Knauer wrote in another document filed with the court: 'Scott Lines did not lie in his Declaration and in fact did not stay overnight in Miami as the SEC claims he did. Scott Lines deserves the opportunity to respond to these defamatory assertions.'
Mr. Lines declared in an October 29 statement filed with the court that he went to the United States for the purpose of seeing a heart doctor in Boston, arriving in Miami on April 20, 2004.
'As a favour I made arrangements for a friend to stay at the Mandarin Oriental hotel in Miami. I went from the airport to the Mandarin Oriental hotel to sign in and pay for the room.
'After securing the hotel room for my fiend at the Mandarin Oriental hotel, I made arrangements to leave her the key to the room. I then returned to the airport and left for the Bahamas,' Mr. Lines said adding that he did not spend the night of April 20, 2004 in the Mandarin Oriental hotel nor did he have spa service at the hotel.
'The calls made from the hotel room were not made by me. I recognise some of those calls as being to my cellular phone number.
'I departed Miami on American Airlines flight #5125 on the same day I arrived – April 20, 2004 at approximately 7:30pm.'
The SEC argues otherwise.
'Upon clearing US customs in Canada, [Mr. Lines] told the customs agent that he planned to spend one day in Boston and two days in Miami,' Branch Chief with the Division of Enforcement of the SEC Michael Ungar said in a declaration filed with the court. 'Mr. Lines stayed at the Mandarin Oriental on the night of April 20, 2004 and did not depart Miami until April 21, 2004. While he was at the Mandarin Oriental, Mr. Lines found the time to receive a spa treatment and to make several business calls to his office.'
Mr. Ungar's declaration also sought to show that LOM solicits and conduct business throughout the US through such things as its US-registered website www.LOM.com and US brokerages.
In his evidence to the court he submitted many account statements including those from LOM's account with vFinance in Florida that allegedly tie LOM to the securities the SEC is investigating.
Mr. Ungar said the vFinance account sold 'significant amounts of shares in Sedona Software Solutions Inc. and SHEP Technologies Inc. during the period of January through June 2003. Scott Lines had trading authority on this LOM account at vFinance. Ex. C.'
He highlighted a single week of trading in January which 'reflected communications between LOM and vFinance concerning orders to sell approximately 100,000 shares of Sedona on behalf of customers (including Brian Lines and Scott Lines'.
Mr. Ungar said that LOM was trading millions of shares of stock over the US markets through its accounts at various brokerage firms. vFinance Trader Ryan Leeds who was responsible for the LOM account at vFiance earlier filed a declaration that LOM's trading over the US markets was 'more than the trading of most US regional banks' and that he 'either accumulated or liquidated millions of shares a day for them[LOM].'
Mr. Ungar's evidence further alleges LOM's contacts with the US relating to the SEC's Sedona Investigation. For instance, Sedona share certificates that LOM sent to Mellon in New York purport to show that they are owned by five different companies - Gateway Research Management Group Limited, Clyde Resources Ltd. Warwick Ventures Ltd. Iguana Investments Ltd. and ICH Investments Limited. Mr Ungar said that a staff investigation shows that all these companies were acting as nominees for Scott and Brian Lines and one LOM customer. The SEC alleges that these companies were held by nominees Kevin Winter, Graham Redford, Stuart Smith, Richard King and Kevin Way and the Lines brothers 'compensated these nominees by selling Sedona shares to them at $4 per share when the current market price was $9/share.' The SEC also alleges that some of these very same entities or people were used by LOM/Brian Lines to acquire the SHEP shell company.
Magistrate Judge Kay has reserved his judgement on the matter, however the SEC has already said that it is committed to pursuing its investigation no matter what the decision.
Meantime a panel for Canada's British Columbia Securities Commission (BCSC) has yet to issue its decision in a separate hearing involving parent company LOM (Holdings), LOM Securities (Bahamas) Ltd., LOM Securities (Bermuda) Ltd., LOM Securities (Cayman) Ltd., Lines Overseas Management, Donald P. Lines, Brian N. Lines, Scott G.S. Lines, Malcolm Moseley, David McNay and J. Scott Hill.
The BCSC panel is considering whether the companies and individuals have failed to comply with request for information in its investigation of San Telmo Energy.
LOM argues that it has been seeking to co-operate with the BCSC 'in as expeditious a manner as possible' that does not put LOM in jeopardy of breaching the laws of Bermuda, Bahamas and the Cayman Islands, its operating jurisdictions. LOM's representatives also say sanctions are not appropriate since LOM was not the target of the investigation itself.
Submitted: 12/20/2004 6:11:29 PM
Modified: 12/21/2004 1:19:41 AMTony
Antigua, Central AmericaGuatemala
Charles Schwab Statement To The SEC On Penny Socks,1999
The following is Charles Schwab's 'comments in response to the (Securities Exchange) Commission's reproposed amendments to Rule 15c2-11',in 1999. What is outrageous in it's absence is a discussion of Charles Schwab's 'select clients' who are able to 'pump and dump' penny stocks secured from 'death spiral' financincing ,prinipally from offshore groups and individuals who hide their identities behind foreign incorporation.
Schwab has or had,(Schwab recently sold the penny stock 'mm' business as Schwab-LOM DEALS HAVE BEEN EXPOSED COINCIDENTALLY), access,(as both 'market maker'and accounts holder,e.g.-LOM of Bermuda,etc.),to the penny stock debenture buyers who flood their Schwab accounts with super-discounted shares relative to the retail market Schwab buys and sells into or dumps into for these 'select clients'.In this duel capacity Schwab has had access to insider trading information that they and their 'mm' business would otherwise not have.You can be assured when LOM has 'heavy trading',i.e. manipulation or dumping of a penny stock,Schwab the market maker knows and trades accordingly.
And Schwab the market maker does NOT warn their own American clients about the dumping going on with their 'select clients' trades nor bother them with the fact that certain Schwab clients will dump at a price 'regular' retail clients could never afford to sell for.And the money,(which represents the retail purchasers losses),will be wired offshore to Bermuda or Lichtenstein,or perhaps to Israel,Kuala Lumpur,the Isle of Man,or the Middle East,to avoid both U.S. taxes on what was basically stolen from retail 'investors',from being seen or heard from again.
Charles Schwab,below in letter to Mr.Katz of the SEC,pretends to be a victim themselves of the penny stock fraud they aid and abet.Yet due to the insider knowledge they have regarding the death spiral debenture deals and pump and dumps and special relations with these international 'share-money launderers',who they call 'select clients',Schwab trades on insider information against its own 'regular' clients,and help criminals launder money through unaccounted for penny share dumping into the U.S. market.Schwab,by pretending to look the other way,potentially funds terrorism and certainly encourages penny stock corruption for personal gain.
................................
Far from complaining about
[letterhead: Charles Schwab & Co.]
June 3, 1999
Jonathan G. Katz
Secretary
U.S. Securities and Exchange Commission
450 Fifth Street N.W.
Washington, D.C. 20549
Re: File No. S7-5-99
Dear Mr. Katz:
Charles Schwab & Co., Inc. ('Schwab') and its affiliate, Mayer & Schweitzer, Inc. ('MASH') submit this letter in response to the Commission's reproposed amendments to Rule 15c2-11. Schwab is the second-largest U.S. broker-dealer in terms of active customer accounts and the largest broker-dealer in the world in several important market segments, including electronic brokerage. MASH is a leading Nasdaq market maker and also makes markets in selected OTC Bulletin Board and Pink Sheet securities.
As a broker executing customer orders in thousands of micro-cap securities, and as a market maker in hundreds of the more actively traded micro-cap securities, Schwab and MASH share the Commission's commitment to promoting investor confidence in this segment of the market. While this market can offer diligent investors substantial opportunities for growth, micro-cap securities can sometimes be susceptible to unscrupulous sales practices by a small but persistent group of dishonest individuals and firms employing high-pressure sales tactics and false or exaggerated claims to market their 'house stocks.' This activity threatens the interests of investors and harms every legitimate issuer and broker-dealer in the process. In fact, legitimate market makers themselves invariably become victims of these 'pump-and-dump' schemes when a manipulation collapses and the market maker is left holding the security in inventory.
Consistent with the findings of Congress in 1990 in addressing fraud in the trading of penny stocks, we believe that an active and transparent market is one of the most effective deterrents to fraud and manipulation. We therefore have serious reservations about the Commissions proposal to the extent it would discourage active market maker participation and the use of priced quotations. While well intentioned, this proposal would have the paradoxical effect of increasing the incidence of fraud in micro-cap securities by reducing the transparency and efficiency of the marketplace.
Although we have serious concerns about the particular approach suggested by the Commission with these proposed amendments, we nevertheless strongly agree about the need for further steps to address micro-cap fraud. Based on our experience in this marketplace, we have identified a number of regulatory and industry initiatives that we believe would be effective in combating manipulation and abusive sales practices. These suggestions are presented in the latter part of this letter.
A. The Vital Importance of Transparency to Fair and Efficient Markets
Congress and the Commission have long recognized transparency as the cornerstone of fair and efficient markets. For example, in addressing abuses and inefficiencies in the OTC market in its 1963 Special Study of the Securities Markets, the Commission recommended the development of an automated interdealer quotation system for the dissemination of quotation information 'to permit the immediate identification of the highest bid and lowest offer, and thus facilitate the task of a broker-dealer in obtaining the best market for his customer,' and for 'surveillance or study purposes by the Commission and other regulatory bodies….' Likewise, transparency of price information was a central underpinning of the 1975 National Market System amendments and the Commission's 1996 Order Handling Rules, and underlies current initiatives within Congress and by the Commission to improve the fairness and efficiency of the bond market.
In the micro-cap market in particular, legislators and regulators have consistently stressed the importance of transparency as a tool to combat fraud. Indeed, in 1990 Congress explicitly recognized a direct correlation between the lack of transparent and reliable quote information for penny stocks and the incidence of fraud and manipulation:
Because it is wrapped in secrecy and operates in relative obscurity, the penny stock market lends itself to manipulation far more easily than a market where information is readily available and circulated to investors. Penny stocks are often thinly traded and this more readily facilitates control and domination by a single market maker. The securities thus become attractive vehicles for manipulative, artificial schemes which are intended to raise the price or volume of the securities, primarily for the benefit of the few anonymous insiders, and frequently, the brokerage firm itself, which often unloads its own shares of the stock into the market after it has manipulated the price of the stock skyward.
Emphasizing the importance of transparency to combating fraud, Congress therefore directed the Commission to facilitate the widespread dissemination of reliable and accurate quotation information for penny stocks through the establishment of one or more automated quotation systems. Specifically, Congress found that the market for penny stocks suffers from a lack of reliable and accurate quotation and last sale information for investors and regulators;
it is in the public interest and appropriate for the protection of investors and the maintenance of fair and orderly markets to improve significantly the information available to brokers, dealers, investors, and regulators with respect to quotations for and transactions in penny stocks; and a fully implemented automated quotation system for penny stocks would meet the information needs of investors and market participants and would add visibility and regulatory surveillance data to that market.
Developed in accordance with this Congressional mandate, the NASD's OTC Bulletin Board Service has been effective in curbing abuses in penny stocks by increasing the visibility, fairness and efficiency of the market and strengthening the NASD's ability to monitor trading. Similar transparency benefits are expected for securities quoted in the Pink Sheets when the National Quotation Bureau launches its online version of the Pink Sheets this summer. This system, which will feature real time prices displayed electronically and ranked in order of best bid or offer, will substantially increase the transparency and liquidity for OTC securities now traded in the Pink Sheets, which in turn will make it more difficult for unscrupulous firms to dominate and control the market for a micro-cap security.
B. The Reproposed Amendments to Rule 15c2-11
As discussed in our comment letter on the Commission's initial proposal, requiring market makers to certify to the accuracy and reliability of issuer disclosure information would impose substantial and expensive compliance burdens on market makers and expose these firms to the threat of costly litigation. Although the Commission's reproposal attempts to narrow the application of the proposed amendments to less actively traded micro-cap securities, our concerns with the original proposal remain the same. We note that the reproposal's carve-out of actively traded and larger capitalized securities does not significantly narrow the scope of the original proposal, and as a fundamental matter, we continue to be concerned about the likely negative impact of the proposed requirements on transparency, pricing efficiency and investor protection.
1. The Reproposed Amendments Run Contrary to the Interests of Investors in a Fair and Efficient Market
The additional compliance costs and increased liability for market makers under the Commission's proposal will discourage legitimate firms from making markets or displaying priced quotations in micro-cap issues. Given the infrequent trading activity in most micro-cap securities, market maker liquidity is critical to ensuring a fair and orderly market. In the non-Nasdaq OTC market, well-priced standing limit orders are infrequent, and market makers play a vital role as a temporary provider of liquidity while finding the natural other side for an order. To the extent that the proposed requirements would discourage the use of priced quotations or lead firms to cease making markets in certain securities entirely, the proposed requirements would reduce transparency and lead to wider spreads in a segment of the market where liquidity is already limited.
Reduced liquidity and transparency will make it more difficult for firms to find the best prices for customer orders. It is well established that transparency of market interest facilitates price discovery and promotes market efficiency. Limiting the use of priced quotations would force firms to obtain prices over the telephone and handle more orders manually, thereby increasing the difficulty of obtaining best execution for customer orders. Our own experience bears this out. As trading volumes in OTC Bulletin Board and Pink Sheet securities have swelled, we have invested heavily in automation to handle the increased order flow. Without efficient access to transparent and reliable quotes, we will be forced to handle these orders on a manual basis, which will substantially slow down the process and dramatically increase the cost of executing orders. Without ready access to price information, investors will also find it harder to compare prices and assess the quality of their executions.
Particularly troubling is the fact that reduced liquidity and transparency would make the market for micro-cap securities more susceptible to manipulation. The equilibriating influence of independent market makers in a security impedes the ability of unscrupulous firms to manipulate trading interest and prices. In the absence of the visible prices and liquidity supplied by legitimate market makers, it will be easier for unscrupulous firms to dominate and control the market for a micro-cap security. Worse, the loss of transparency would undermine SRO surveillance efforts by making it harder for regulators to monitor for unusual market activity.
The Reproposed Amendments Jeopardize Capital Formation for Small Issuers
We are also concerned that the Commission's proposal would impair capital formation for those issuers (small businesses) most in need of efficient, low cost access to capital. The micro-cap market provides an important source of capital for these nascent companies. Typically, venture capitalists and other investors in these companies depend on the liquidity and pricing mechanism of multiple competing market makers as an outlet for realizing the value of their investments down the road. Because such investors will not commit capital without an exit strategy, the existence of a liquid market is critical to the ability of micro-cap companies to raise capital to finance growth. It is also worth noting the importance of the OTC Bulletin Board and Pink Sheet markets to companies in the midst of bankruptcy proceedings that have been delisted from Nasdaq and the exchanges. An active market and reliable, transparent pricing for these securities during bankruptcy facilitates their reorganizations and provides a foundation for such companies to emerge from bankruptcy.
While we support the Commission's efforts to address fraud in the micro-cap market, the approach proposed here by the Commission would appear to jeopardize market liquidity for the shares of these companies, undermine their ability to raise capital, and hinder the ability of shareholders in these companies to value and trade their positions. Overall, the proposed amendments represent a very real danger that thousands of micro-cap companies will be forced from the OTC Bulletin Board and Pink Sheets, where participants are regulated by the Commission and NASD, into less transparent markets and less regulated markets on the Internet or overseas. In considering abusive practices in the micro-cap market, we urge the Commission to avoid damage to an important market for the securities of legitimate small companies, particularly since the NASD has recently made it more difficult for small companies to be listed on Nasdaq or traded on the OTC Bulletin Board.
The Reproposed Amendments Would Not Prevent Fraud
Requiring market makers to certify to the accuracy and reliability of issuer disclosure information will not prevent fraud. Because market makers are not well suited to detect fraud or manipulation, we believe the amendments would bring little if any corresponding increase in the detection or prevention of fraud. Market makers have comparatively far less ability to identify potential financial fraud or going concern issues than, for example, the issuer's independent auditors, who have unrestricted access to the issuer's books and records, and are thus in a better position to review issuer disclosures for red flags or other evidence of fraud. Indeed, notwithstanding their familiarity with the issuer, public auditors themselves often have considerable difficulty in uncovering issuer fraud.
Furthermore, the Commission's assumption that the quotations of legitimate market makers can indirectly facilitate a fraud fundamentally misconstrues the function market makers perform in the marketplace. The Commission's reproposal essentially equates market maker quotes with recommendations, yet fails to explain how the harm it identifies (fraud and manipulation) is related to publication of quotes by market makers who are not involved in the fraud. While the Commission's initial proposing release states that market makers can give a security 'a measure of credibility through their quotations,' we are not aware of any evidence that investors or the marketplace generally view market maker quotations as a representation about a security's investment value.
To the contrary, it is generally understood that market maker quotes reflect only the value the market ascribes to the security (rather than the market makers' view of what the security may be worth based on analysis of the company's fundamentals). Market maker quotes are a function of market interest and the interplay of supply and demand. Market makers do not trade with a view to whether the security represents a good or bad investment. The existence of market maker quotes in a security is no more a recommendation or indication of credibility than a newspaper's publication of a classified advertisement. Instead of focusing on legitimate market makers, the Commission should focus on those who disseminate false information about issuers and thereby distort the market interest that legitimate market makers' quotes reflect.
Designing An Effective Program to Combat Fraud in the Micro-Cap Market
In our experience, an effective program to combat abusive and fraudulent practices in the micro-cap market must combine the following essential elements: (1) increased scrutiny of abusive sales practices; (2) increased accessibility of issuer disclosure information; and (3) increased transparency of secondary market trading.
1. Increased Scrutiny of Broker Sales Practices
In casting market makers as gatekeepers for screening out illegitimate companies from the OTC Bulletin Board and Pink Sheets, the Commission's proposal fails to address the primary source of abuses in the micro-cap market – fraudulent sales practices by unscrupulous firms and individuals. The modus operandi for these frauds is all too familiar: misrepresentations and omissions, aggressive high-pressure sales practices, unsuitable recommendations, churning, unauthorized trading, failure to respond to customer complaints, and refusal to execute customers' orders to sell 'house stocks.' The effort to combat micro-cap fraud therefore should start with increased regulatory scrutiny of broker sales practices in connection with solicited transactions.
Rule 2315
We note that the Commission is currently considering a proposed NASD rule change that would require members and their associated persons to review reasonably current financial statements of an issuer prior to recommending a transaction to a customer in a non-Nasdaq OTC security. We believe this proposal is better tailored to address the principal hazard in this market – aggressive cold-calling by broker-dealers telemarketing 'house stocks.' Under SRO rules and the antifraud provisions of the federal securities laws, a broker who recommends a security to a customer must have a reasonable basis for that recommendation, which naturally requires that the broker have sufficient information about the security. Although that suitability analysis focuses in large part on the broker's knowledge of the customer's financial status and objectives, it also requires the broker to have a reasonable belief in the accuracy and reliability of the issuer disclosure information on which its recommendation is based. Explicitly applying this review obligation to brokers recommending securities would be a highly effective deterrent to fraudulent promotions of 'house stocks' and would provide regulators with ample authority to crack down on abusive sales activity.
Increased Regulatory Surveillance and Enforcement
No regulatory solution to abuses in the micro-cap market will be as effective as vigorous surveillance and enforcement of the existing antifraud provisions. Instead of allocating scarce enforcement resources to ensuring compliance with the proposed market maker review requirement, the Commission and other regulators should be devoting their resources to surveillance for abusive sales practices and manipulation. Regulators must have the surveillance tools to respond rapidly to unusual trading activity and other indications of suspected fraud, and the enforcement resources to aggressively prosecute violations. We would also encourage the Commission and the SROs to expel and permanently bar from the securities industry those firms and individuals who engage in manipulation schemes, including not only the leaders of these schemes but also the sales people who defraud customers. The Commission and the SROs should focus on rapid prosecution of these schemes, rather than waiting to bring cases many years later. Because civil sanctions may not always be effective against these types of firms and individuals, we encourage the Commission and the SROs to seek the assistance of criminal prosecutors in addressing this type of fraudulent activity.
2. Increased Accessibility of Issuer Information
The Commission should take steps to increase the availability of issuer disclosure information, and facilitate initiatives designed to inform investors about the completeness and timeliness of available issuer information.
Information Repository
The Commission should facilitate the development of a central information repository for non-reporting companies. The repository could be funded through a combination of issuer and industry support, with issuer disclosure information made publicly available through the Internet or an 800 number. Although some of this disclosure information may have to be delivered to the repository by issuers directly, we note that NASDR already receives Form 211 submissions for all securities trading on the OTC Bulletin Board and Pink Sheets and thus could provide issuer disclosure information directly to the repository. A central repository would also be considerably more efficient than the current situation under Rule 15c2-11 in which each market maker in a security must separately maintain issuer disclosure information in its files. At the same time, a central repository with Internet or 800 number access would make issuer information far more accessible to individual investors than would requiring investors to contact different market makers to obtain that information.
Affiliate Transactions
As a deterrent to fraudulent sales by corporate affiliates, the Commission should limit the ability of corporate insiders to trade in the public marketplace when sufficient current information is not publicly available. We believe this would be an effective mechanism to achieve the Commission's goal of increasing the availability of issuer information. Insiders would be expected to maintain current filings with the Commission (for reporting companies) or ensure that current disclosure information was available through a repository.
Warning Labels
The Commission should consider requiring the use of a special symbol in connection with issuers quoted on the OTC Bulletin Board and Pink Sheets that are non-reporting companies or that are not current in their regulatory filings. Broker-dealers would be required to convey that information to customers when recommending securities or providing a quotation.
Affiliations with the Issuer
Brokers recommending a security to their customers or making markets in a security should be required to disclose any affiliation they may have with the issuer. Brokers should be required to report such affiliations to customers prior to recommending a security. Market makers should be required to indicate such affiliations through the use of a special symbol attached to their OTC Bulletin Board or Pink Sheet quote.
Risk Evaluations
The Commission should consider ways to facilitate the development of ratings by established national rating services concerning the completeness of issuer disclosure information as well as the existence of certain internal control and governance issues (e.g., independent auditors, constitution of audit committees, public board members). These ratings would assist investors in evaluating the reliability of issuer disclosure information.
Expanded Authority to Impose Trading Halts
Although the NASD monitors trading in non-Nasdaq OTC securities, the NASD lacks the authority to suspend trading when fraud is suspected. The NASD should have expanded authority to impose trading halts in circumstances where regulators have reasons to suspect manipulation or dissemination of inaccurate issuer information for non-Nasdaq OTC securities. We would also support the Commission's expanded use of trading halts for suspicion of manipulative activity in a security or incomplete or out-of-date information about an issuer.
Increased Transparency of Secondary Market Trading
Consistent with the findings of Congress in addressing penny stock fraud, we believe that transparency of secondary market trading interest is critical to preventing fraud, both as a natural deterrent to manipulation and as a surveillance tool for regulators.
Electronic Pink Sheets
The automated version of the Pink Sheets that is being developed by the National Quotation Bureau will substantially increase the market transparency and liquidity of OTC securities now traded in the Pink Sheets by providing a real-time, dynamic mechanism for the dissemination of market maker quotations. We encourage the Commission to facilitate the development of this system, and to consider ways to build on the existence of this system to advance the Commission's goals, such as through sponsorship of a central repository.
Audit Trail
The NASD should expand the scope of its new Order Audit Trail System ('OATS') to include transactions in non-Nasdaq OTC securities, thus enabling NASDR to identify firms that are soliciting transactions in securities with unusual volume or price volatility. As part of this audit trail, broker-dealers should be required to report to the NASD with each trade report, the bid and ask prices prevailing on the OTC Bulletin Board or Pink Sheets at the time of execution.
E. Conclusion
While we commend the Commission for its efforts to combat abuses in the market for micro-cap securities, we have serious concerns about the likely impact of the reproposed amendments on market integrity and efficiency. Because of the importance of transparency to a fair and efficient market, particularly with respect to micro-cap securities, we urge that the Commission consider a more tailored approach to address abusive practices by the handful of problem firms and individuals responsible for micro-cap fraud. Transparency of price information is a proven deterrent to manipulation, both as an impediment to domination and control of trading interest by unscrupulous firms, and as a critical surveillance tool for regulators. Transparency promotes competition, increases liquidity and reduces transaction costs. Transparency also makes possible important automation efficiencies for disseminating market information to customers and executing customer orders. By discouraging the use of priced quotations, the Commission's proposal would undermine the transparency and liquidity of trading in micro-cap securities without any corresponding increase in the detection or prevention of fraud. The small group of dishonest firms and individuals responsible for micro-cap fraud are violating existing rules. Imposing a de facto listing review obligation on market makers with no relation to the issuer and no connection to the fraud will not prevent these abuses.
Given our shared interest in the integrity of this market, we are committed to assisting the Commission develop effective responses to micro-cap fraud and hope you will find our experience and suggestions useful in this regard. Please do not hesitate to contact us if you would like to discuss these issues in further detail.
Sincerely,
/s/ Lon Gorman
Lon Gorman
Executive Vice President
cc: Hon. Arthur Levitt, Chairman
Hon. Norman Johnson, Commissioner
Hon. Isaac C. Hunt, Jr. Commissioner
Hon. Laura Simone Unger
Hon. Paul R. Carey, Commissioner
Annette Nazareth, Director, Division of Market Regulation
Robert L.D. Colby, Deputy Director, Division of Market Regulation
Larry Bergmann, Senior Associate Director, Division of Market Regulation
James Brigagliano, Assistant Director, Division of Market Regulation
Florence E. Harmon, Special Counsel, Division of Market Regulation
Richard Walker, Director, Division of Enforcement
Elizabeth Gray, Assistant Director, Division of Enforcement
Richard Ketchum, President, NASD
Mary Schapiro, President, NASD Regulation, Inc.
S. William Broka, Senior Vice President, The Nasdaq Stock Market
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