PANAMED/Seth Cayer One Big Scam THREAD REVISITED ? CTRN, ECTS, IVHD, SMEK & MALB
Seth Cayer who was involved in the "ONE BIG SCAM" with Peter Tosto (Please go to bop.gov Use the inmate locator to find inmate # 41140-019 to find out more about Peter .Seems someone has a new home for the next 4 years) or ( sec.gov; ) is now a investment banker in yet another scam northernlight.com
THIS TIME ITS A HIV/AIDS treatment
Message 17743782
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• The Company’s two Executive Vice-Presidents, Todd Davis and Seth Cayer (both of whom also were co-founders of PanaMed) are investment bankers, while another Director, Daniel Butler, is a Christian missionary.
PANAMED CORPORATION (OTCBB: PANA), PART II – PENNY KINGS FROM HEAVEN June 26, 2002
As we saw in Part I of this series, PanaMed Corporation (OTCBB: PANA) has been promoting plans to market a therapeutic product to treat HIV and AIDS. The Company has not said who developed the treatment, or where, or when. And, so far at least, the Company’s expectations have not been verified by independent clinical tests – unless you count the three AIDS patients who purportedly received the treatment in an “uncontrolled environment.”
It’s not much to go on, is it?
Team PanaMed
Who are the scientists that developed this therapeutic treatment? What are their credentials? Where do they work? Have they written about their findings? Are they teaching at major hospitals or universities? Do they hold any patents on the process? Shouldn’t we expect them to be rushing to take credit? Wouldn’t you?
PanaMed does not name a single individual who might have been involved with the development of Viro-Net, stating only that the product is “supplied” by Havel Investments. PanaMed still has not said whether Havel manufactures the product. If not, where is it coming from, and who is paying for it?
The questions continue to mount. Who is in charge at PanaMed? Is the Company run by scientists, doctors, or clinical investigators? It seems not. PanaMed’s management team consists of investment bankers, deal-makers, and a missionary. Consider this:
• According to its Form 10-K for the year ended December 31, 2001, PanaMed’s co-founder, Chief Executive Officer, and Director, Phillip Butler, has a background in “developing financial strategies, corporate development, mergers, acquisitions, and financing.”
• The Company’s other co-founder, President, Treasurer and Chairman is Thomas Sims, has been involved with “launching companies, raising money, mergers, acquisitions, joint ventures, launching subsidiaries, establishing and building strategic partnerships (domestic and international), going public and launching/nurturing a public trading network.”
Mr. Sims is also CEO and President of Quintek Technologies, Inc. (OTCBB: QTEK), a California-based company that markets a technology for recording and storing digital images on an aperture card. In November 2001, Quintek executed a stock swap, exchanging 2 million shares of Quintek stock for 2 million shares of PanaMed.
• The Company’s two Executive Vice-Presidents, Todd Davis and Seth Cayer (both of whom also were co-founders of PanaMed) are investment bankers, while another Director, Daniel Butler, is a Christian missionary.
Daniel Butler is also Phillip Butler’s brother. The Company’s Secretary, Catherine Sims, is Phillip Sims’ wife. Between them, the Butler brothers and the Sims spouses owned 10,150,000 shares of PanaMed as of April 15, 2002 (not including the 2 million shares held by Quintek, a company controlled by Mr. Sims). Messrs Cayne and Davis each owned an additional 1.4 million PanaMed shares. That accounts for approximately 15 million shares out of the 22.1 million shares of PanaMed stock that reportedly were outstanding as of May 31, 2002.
The Company does not indicate how any of these individuals would be qualified to judge the efficacy of a therapeutic treatment – or who they might rely upon to make that determination.
King of the World
Remember Quintek, the affiliate that holds 2 million shares of PanaMed? Investors who received those e-mails touting PanaMed, or who have been reviewing PanaMed’s press releases and public filings, probably missed this item from Quintek’s Form 10-Q for the quarter ended March 31, 2002:
During the first quarter of 2002, [Quintek] learned the Securities and Exchange Commission has undertaken an informal inquiry to determine whether violations of federal securities laws may have occurred in connection with sales of securities issued by the Company or the Company’s affiliate, PanaMed Corporation. The Company believes that the inquiry relates mainly to press releases issued in October 2001 about the formation of PanaMed and in January and March 2002 about the attempts to begin selling equipment in Central Europe, and about the trading patterns in the Company’s securities around the time those announcements were made. The Company does not believe the inquiry will have an adverse effect on the financial statements.
We were unable to locate the October 2001 press releases concerning the formation of PanaMed. Oddly, they are not among the press releases that remain available to investors on Quintek’s website, or on the site maintained by Quintek’s investment relations firm.
The January and March 2002 press releases issued by Quintek are available. On January 8, 2002, Quintek announced that a company called Penny King Holdings Corporation (PKH) had signed an exclusive agreement to distribute Quintek’s aperture cards in certain Eastern European countries.
Penny King apparently had developed more than a passing interest in Quintek. The January 8th press release revealed that Penny King had obtained 2.3 million shares of Quintek in a “private transaction.” It did not identify the seller of those shares or indicate what, if anything, Penny King had paid for them. Elsewhere, Penny King claims that it has a “minority interest” in PanaMed.
Penny King’s credentials, and qualifications to act as a distributor, were dubious at best. The press release described Penny King as a private “Investment Holding Company.” How would it distribute the products? The press release did not say. There was no indication that Penny King operated as a distributor or had the financial capacity to perform under the Quintek agreement.
Investors could be excused if they were skeptical. The January 8th press release claimed that Penny King had “exclusive Western Hemisphere distribution rights to a whole new series of technologies under agreements with The Free and Clear Foundations of America, Inc. a Washington DC-based non-profit organization.” At first blush that makes it sound as though Penny King had obtained a valuable asset - but what are “The Free and Clear Foundations of America, Inc,” and what are those “technologies.” Most importantly, what is Penny King, and is it a bona fide business partner for any public company?
A Penny for Your Thoughts - or Your Nickel
The answers to those questions cast a giant shadow on the value of any relationship between Penny King and Quintek. Penny King is controlled by Hungarian-born Gabor Sandor Acs, whose biography reads like a dime store novel. Acs claims that he has worked for Scientology founder L. Ron Hubbard; was a mortgage banker/broker in Seattle, Washington; operated an offshore bank in the Pacific; built foreign interests in Canada, Russia, Hungary, the Philippines, the Cayman Islands and Europe; and advised venture capitalists in global investments.
Acs also insists that, in 1983, he tried to sell then-Philippine President Ferdinand Marcos on a plan that would get the Philippines out of debt within five years. Acs says that Marcos rejected the proposal, but told him where the Japanese had hidden 80,000 tons of gold during World War II. Acs says that he passed that information on to the F.B.I. shortly before Marcos was toppled from power (implying that there was some cause and effect here).
Since 1990, Acs has been “managing the vision of a free and clear planet through the aspices (sic) of The Free and Clear Foundations of Earth, International,” which own 50% of Penny King. And what do the Free and Clear Foundations do - when they are not handing out new technologies to Penny King? According to a website maintained by Penny King, the “Foundations buys pennies from homeless people for a nickel each.” Is there an economic theory behind that seemingly illogical exercise? Consider this explanation from Penny King:
By buying pennies for a nickel each the Foundations educate the participants in its self help programs relative to the perception of the value of money and saving for the future. It provides motivation for improving their conditions, and enlightens the general public about how money is created and how it functions in a global society.
Pennies and nickels should not be confused with millions of dollars – or billions. Compare the following two statements:
• The Penny King website states that Penny King is “continuing the process of facilitating up to $2 billion in capital to over 50 different publicly and privately owned companies in the United States, Canada and Hungary.”
• The January 8th press release from Quintek stated that Penny King was “continuing its process of facilitating over $200 million in capital investments to 50 different publicly and privately owned companies in the United States, Canada and Hungary.”
So which is it - $50 million, or $50 billion? Maybe it just doesn’t make any difference.
In any event, on March 20, 2002, Quintek issued another press release - which presumably helped trigger the SEC’s inquiry. This time, Quintek was announcing that Penny King had assigned its distribution rights to EuroTrend Informatics Ltd. (ETL), a private Hungarian information technology and software company.
The press release said that ETL was about to place orders for $10 million in Quintek products, as “the first phase of a $250 million two year project being developed by The Free and Clear Foundations relating to the deployment of automated voting systems in Hungary, Central and Eastern Europe.” It also claimed that Penny King was planning to provide a $15 million revolving credit line to ETL so that it could purchase the Quintek products.
Quintek projected that the ETL sales would result in net pre-tax revenues of “around 18 cents per share.”
Not so fast. Despite all of the talk about millions and billions of dollars, Penny King has yet to raise any funds for this project. On April 12, 2002, Quintek announced that Penny King had not completed any financing arrangements, and that ETL had not yet placed any firm purchase order. At the same time, however, Quintek conceded that it had given Penny King $5,000 and approximately 129,000 shares of common stock in exchange for “promoting Quintek's name in the financial community, providing company information to investors and financial institutions, and seeking contracts or purchase orders for Quintek's products.”
Is it any wonder that the SEC is asking questions?
While they are at it, they may also want to ask why the SEC inquiry is not disclosed in PanaMed’s public filings.
©2002 Stock Patrol.com. All rights reserved.
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UPDATE: PANAMED CORPORATION (OTCBB: PANA) – IVORY COASTING October 1, 2002
People are leaving the African nation of Ivory Coast in droves. U.S. military forces have been evacuating students and European nations are urging their citizens to leave. Fighting has been heavy and casualties continue to mount. Government troops and rebels exchange fire, as citizens flee their homes.
It’s not a stable situation. So perhaps you might want to think twice about investing in a company that has a license to market a mysterious HIV/AIDS therapeutic in Ivory Coast – and nowhere else. That fairly well describes PanaMed Corporation (OTCBB: PANA), a Nevada corporation with no money, no assets, and a single plan – to sell an AIDS/HIV “therapeutic” product in Ivory Coast.
As we first reported in June of this year, PanaMed has a license to market “a line of therapeutic products supplied by Havel Investments, Ltd ” - but only in Ivory Coast. (See PANAMED CORPORATION, PART I – AFRICAN ADVENTURES; and PART II – PENNY KINGS FROM HEAVEN.) The Company has not provided any details about Havel, or any scientific basis for its claim that the “therapeutics” can successfully treat “serious illness such as AIDS/HIV, Herpes, and Shingles.”
Even if life in Ivory Coast were stable (which clearly it is not), this Company has been asking investors to take a great deal on faith. The situation in that African nation only compounds the uncertainties that face PanaMed. The nature of Havel’s business, and the people behind it, are no clearer now than they were when we first looked at PanaMed three months ago.
The lack of information about Havel could be particularly troubling to PanaMed’s shareholders and potential investors. According to the Company’s Form 10-Q for the quarter ended June 30, 2002, Havel is going to receive 66.7% of all proceeds from sales of PanaMed stock, up to $22 million. That means Havel will be getting two thirds of every dollar raised by PanaMed. Doesn’t that mean investors are really investing in Havel rather than PanaMed? Havel will be collecting money from the public marketplace without the burden of making any public disclosures about its management, its business or its finances.
That is not the only mystery. Information is sparse concerning the nature of the HIV/AIDS “therapeutic,” or the basis for PanaMed’s belief that it “may provide an effective means to reverse the HIV virus to a non-detect level while providing a number of advantages over conventional HIV/AIDS medication.”
In its Form 10-Q for the period ended June 30, 2002, PanaMed claimed that it “initiated a residential treatment program for 21 HIV/AIDS patients on June 14, 2002 in the country of Ivory Coast, Africa.” According to the Company, those patients were “both males and females,” aged from “4 to 43 years old,” and demonstrated health conditions “ranging from early stage to late stage HIV/AIDS.” The tests were to be administered by a physician, the patients would be monitored by nurses, and blood tests would be reviewed periodically.
Here again, PanaMed provided only minimal information. Who would be monitoring the tests? What were their credentials? How many patients fell within each age group? What was the exact condition of each patient when the tests began? The Form 10 Q did not provide answers to these questions.
Nor did it offer other material information that investors and scientists will need before they can assess the validity of the tests. Was there a control group? What treatments had each patient received before PanaMed began testing? What was the dosage administered?
And, of course, the fundamental question remains unanswered; what is the nature of the so-called “therapeutic?”
Testing started in June 2002. Just three months later it was over. On September 25, 2002, PanaMed announced that it had “concluded Stage One of the first human treatment program for its immunomodulating therapeutic to treat patients infected with the human immunodeficiency virus (HIV), the virus that causes acquired immune deficiency syndrome (AIDS).”
The Company claimed that “a majority of the patients who have received treatment since commencement of the Company's program in June appear to tolerate well the dosages being administered and to demonstrate positive reactions.” What were those dosages? How have those results been quantified and analyzed? What was the response for each age group, each sex and each stage of the disease? Is it possible to obtain valid and useful test results in just three months?
PanaMed did not say.
We contacted AmFAR – American Foundation for AIDS Research – to see whether we could get the answers to any of those questions. Not surprisingly, the individuals we spoke with were not familiar with PanaMed or Havel and had no knowledge of the Company’s Ivory Coast tests.
The Company now says that it is ready to launch Stage Two, testing a larger group of patients, presumably in Ivory Coast. In its September 25th press release, PanaMed stated that it would be testing those patients by administering different dosages of the “therapeutic” in an inpatient setting. PanaMed does not indicate how many patients would be tested in this phase, or the standards to be applied. Presumably, those tests would be conducted in Ivory Coast, although PanaMed – once again – did not identify the facility that would be used, the doctors involved with the project, or the credentials of the scientists who would be reviewing the data.
One other thing. The September 25th press release (which was re-released a day later) failed to mention the hostilities in Ivory Coast that had erupted days earlier, and already had resulted in hundreds of deaths. As PanaMed was making its announcements, U.S. and French troops were on the ground evacuating children who had been trapped in one rebel-held city.
How would this shape PanaMed’s plans? Could the Company conduct any tests in a nation under siege?
As usual, PanaMed didn’t say.
©2002 Stock Patrol.com. All rights reserved.
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