Jeff, I can see you have been a very busy man!!
SHORTY'S BLACK FRIDAY ...
That said, we will get right down to the newest juicy and still bizarre tidbits in the multi-million dollar high-stakes battle between GIFS management and GIFS shorters. Specifically this past Friday, as the 'shorters' obviously could not find collaborators among the market-makers (the tape showed of approximately 35,000 trades, 33,000 were at the offer, and the shorts could not muster even a single hit throughout the afternoon when volume had diminished and the bid-ask was extremely vulnerable with only one market-maker at the bid (FRAN at 1.6875) and one (HRZG at 1.75) at the ask. GIFS holders must have been estatic and the shorts horrified to find that after the disclosures that they had been trying to use for 'extortion' were fully made, the stock price strongly advanced, leaving them with no whisper threats and a gross miscalculation as to the Street's anticipated reactions.
With no confederates among market-makers, no support in the Street for their short whisper campaign and no filing of lawsuits as had been 'threatened' and obvious rebuffs by the BDO auditors who authorized an advance peek at their findings, friends of the 'shorts' contacted Jeff Silverman, a contractor and major holder, who in December had gained prominence as 'Mr. Smart Investor' when he contacted Waaco and announced he was 'trying to buy the float'. The Friday contact was made by Todd Pauley, the Wisconsin>contractor who it was recently revealed was quoting from documents which came from the previously-reported break-in of the CEO's automobile, a break-in supported by a police report dated Jan. 14 and made available to
Waaco and to the GIFS 'SAC'.
It appears Mr. Pauley kept Mr. Silverman on the phone for more than an hour, attempting to undermine his confidence in the company, quoting from internal and partial company documents which were 'questionably' obtained. This alone is not bizarre. This moderator received a similar call from Mr. Pauley a few days ago, and it was after this phone conversation that Mr. Pauley failed to provide any documentation that he had EVER held shares in GIFS, despite his more spectacular representations of major buys back in December, supporting Mr. Silverman's assertions. This is thought to be the
first time the two had spoken.
'MR. SMART IMPOSTER'
What was bizarre about the conversation, however, was that there was a>second person on the call, whom Mr. Pauley introduced to Mr. Silverman as his attorney, Utice Payne, Jr., Esq., of Reinhardt, Boerner, Van Deurne, Norris & Rieselbach, S.C., of Milwaukee, a former Wisconsin corporation commissioner whom Mr. Pauley misrepresented to Waaco as having been an SEC Commissioner, and whom the attorney for GIFS, Robert C. Rosen, Esq., of Rosen & Associates, Los Angeles, who IS a former SEC employee (12 years), also alleged was misrepresenting himself.
Later in the day, as Mr. Payne actually did speak with Mr. Rosen, Mr. Payne stated he was startled to learn that he had purportedly participated in a conversation Friday with Mr. Silverman. Mr. Rosen seized the moment and conferenced in Mr. Silverman, who supported Mr. Payne's denial, saying that the voice of Mr. Payne was not the same voice belonging to the person who represented himself to be Mr. Payne in the earlier conversation Mr. Silverman had with Mr. Pauley and 'Mr. Smart Imposter', and whom Mr. Pauley introduced as his attorney, Mr. Payne. To represent an attorney, who is an officer of the court, is thought to be a criminal offense.
We have a copy of the letters memorializing these events:
April 17, 1997
Mr. Utice Payne, Jr.
Reinhart, Boenerner, Van Deurne, Norris & Riselbach, S.C.
1000 North Water Street, P.O. Box 92900
Milwaukee, Wisconson 63202-0900
Dear Mr. Payne:
'I have not received responses to my two letters to you of April 4, 1997 and April 7, 1997. One would think that if your client Tod Poley had a legitimate claim he would provide evidence to support it -- as you
represented he would. I can only assume at this time that your client has no claim whatsoever and is merely trying to make trouble.
'To compound the matter, I received a very disturbing call this morning from a shareholder of Genesis, Jeff Silverman, who informed me he spoke with both you and your client, Mr. Poley, earlier today. Mr. Silverman stated that you and Mr. Poley had informed him that the two of you have damaging information that you intend to disseminate publicly. According to Mr. Silverman, you intend to disclose false and misleading information regarding Genesis' ownership rights in Miller Mountain Mine, as well as false and misleading information regarding American Lift.
'I do not know your source of information. I do, however, know that you have an opportunity to verify the veracity of the information -- bot for some unknown reason, you choose not to. As I informed you in my letter of April 7, 1997, your entire approach is baffling and suspicious. This latest information, if true, appears to verify that thought.
'With respect to American Lift, somehow you and/or your client illegally obtained a copy of a February 11, 1997 proprietary and confidential internal company correspondence. It now appears that, not only have you illegally obtained this letter, but you have in your posession other illegally obtained confidential documents. This is a demand that you and your client disclose to us how you obtained those documents and immediately return to this office all originals and copies of those documents.
'If the statements of Mr. Silverman are correct, you and your client should be advised that if you continue on this path of attempting to destroy Genesis and shareholder value that you both will be held accountable for your actions.
'Lastly, it has come to my attention that you are representing yourself as a former SEC Commissioner. Having spent 12 years at the SEC myself, I know you have never been a Commissioner of the SEC.'
Very truly yours,
Robert C. Rosen
Rosen & Associates
First Interstate World Tower
631 West Fifth Street, Suite 5800
Los Angeles, CA 90071
=== Obviously, Mr. Payne was shocked to learn that he was 'accused' of having been a part of a conversation between Mr. Pauley and Mr. Silverman, and in a subsequent phone call with Mr. Rosen, was adamant that no such conversation took place. Mr. Rosen memorialized that conversation in a follow-up letter to Mr. Payne, which is but yet another bizarre chapter.
April 17, 1997
Mr. Utice Payne, Jr.
Reinhart, Boenerner, Van Deurne, Norris & Riselbach, S.C.
1000 North Water Street, P.O. Box 92900
Milwaukee, Wisconson 63202-0900
Dear Mr. Payne:
'This will memorialize the telephone conference we had this afternoon. As I informed you, Jeff Silverman informed me that he spoke earlier in the day, for 1 to 1 and 1/2 hours, with your client Tod Poley and you. During our conversation, you and I then nferenced in Mr. Silverman who stated, atfter speaking to you, that it was not your voice who was speaking to him along with Mr. Poley earlier in the day.
'If Mr. Silverman is correct, it appears that your client will go to any lengths to damage Genesis, including having someone impersonate his own counsel.
'I await your response after you have spoken to your client.'
Thank you.
Very truly yours,
Robert C. Rosen
Rosen & Associates
First Interstate World Tower
631 West Fifth Street, Suite 5800
Los Angeles, CA 90071
=== WOW! And to imagine Mr. Pauley 'lurked' on our WKF, our WSE and our PET for five months! It is also obvious from these turns of events that the 'purported impending lawsuit' by Mr. Pauley is hogwash, as Waaco would say. He is not only misrepresenting what Mr. Payne is doing on his behalf but Waaco would be mighty surprised to learn that Mr. Payne will remain Mr. Pauley's attorney. No self-respecting officer of the court would allow himself to be involved in a fraudulent imposter scenario. We are certainly awaiting this outcome.
Meanwhile, for GIFS, Friday's activity and Street response seems to mean its executives can get on with the business of running the company and closing the sale of CRIC now that the sideshow has become strictly a sideshow ... in fact, Waaco says it's now more of a 'Street performance' since no one is any longer paying the price of admission <g>. That's a bittersweet development, since we have become kinda caught up in Shorty's day-to-day corporate espionage and intrigue. Even Waaco hisself just can't make stuff like this up <g>.
It's also become evident that the efforts of some of those whose whispers had depressed the price from its 3-1/4 high have been or bordered on the illegal, laying open those individuals themselves to possible shareholder lawsuits from anyone damaged by this price slide. Let us know if anyone in the SAC or elsewhere contemplates a class action suit aimed at Shorty and his confederates. |
