Subject:
APB: GIFS DISINFORMATION
Date:
Fri, 25 Apr 1997 12:42:23 -0400 (EDT)
From:
StreetLevel <nymg@pipeline.com>
To:
gvlh24a@prodigy.com, nymg@pipeline.com
Return-Path: <rkinosh@mailhost.tcs.tulane.edu>
X-Sender: rkinosh@mailhost.tcs.tulane.edu
Date: Fri, 25 Apr 1997 09:24:32 -0500
To: StreetLevel <nymg@pipeline.com>
From: Rex Kinoshita <rkinosh@mailhost.tcs.tulane.edu>
Subject: Why is he selling? GIFS(smart investor)
Thank you very much for the reply. Do you know why Silverman is liquidating his
position in GIFS. A couple of days ago he was supposedly buying shares.
One very concerned shareholder.
thanks for your time
Rex
$$$
Return-Path: <profit@net-quest.com>
Date: Fri, 25 Apr 1997 07:32:51 -0700 (PDT)
X-Sender: profit@net-quest.com
To: nymg@pipeline.com
From: Vince Profit <profit@net-quest.com>
Subject: Mr Smart Investor
Selling all his stock.... 1 day before the CRIC close...come on... you guys
must know there is something going on behind the scenes you dont know about.
Anyways Im gonna keep on buying.
Vince
$$$$$$
=== Rex, Vince, and LADIES AND GENTLEMEN IN STOCK RIDGE AND ALL POINTS BEYOND:
Be aware that there is a furious campaign of disinformation going on re:
GIFS, with millions of dollars at stake.
If you thought the break-in story at GIFS was bizarre, we haven't even
developed a word to describe what is now going on. It appears from what we
are seeing below that Jeff Silverman has been operating under several screen
aliases, often talking to himself on the SI thread, has sought to manipulate
trading in GIFS stock, has been 'less than forthcoming' in direct
conversations with this moderator and others, and is in direct cahoots with
Lou Sitaris, one of those whose certificate has been invalidated by GIFS.
We will start you off with the unsolicited note we received this morning
from one of the three individuals Silverman told us he was on the phone with
and who were 'collaborators' in his project ...
Return-Path: <PULASKI35@aol.com>
From: PULASKI35@aol.com
Date: Fri, 25 Apr 1997 09:30:21 -0400 (EDT)
To: nymg@pipeline.com
Subject: Genesis
Dear Sir, I am one of the three people which were contacted by Jeff
Silverman. This was a conference call between three people at a time so
stories will be consistant. The story you received from Jeff is total lies.
Jaime Pulaski
$$$$$
Jaime gave this reporter his phone number, and I called him. He conferenced
in the other participants in the phone call that Silverman had with these
three individuals, Mark McCurry and Greg Martz, all active posters on the SI
thread, and all three absolutely, unequivocally said that everything
Silverman related to me was totally untrue. As we did with Tod Pauley, who
has been unmasked as a short front (previously as 'Tonto' bashing Solvex for
the short crowd in that deal), Mr. Silverman has been removed from all of
our lists.
Not only that, but I can relate to you that these three individuals feel
'threatened' and a couple of them got no sleep, and are concerned for their
safety. They would not elaborate.
Jaime has 30,000 shares, is a medical student and is relying on a return
from this investment for his continued education. Greg holds 3,000 shares,
and Mark is a CPA with Ernst & Young, and holds 6,000 shares. We have added
all three to the Forum for the duration of this, and welcome them to stay
beyond. We have explained that the post they saw was passed through from
Silverman because he had been a credible individual in the past (seemingly)
and we are hide-bound here at Waaco to see that all points of view are
published without censorship.
The three individuals are united in their recollection of the events and
conversations with Silverman, and are in the process of providing a summary
of those notes to the attorneys for Genesis.
They said that they can not understand what Silverman is hoping to
accomplish, but that during one conversation he let slip that he is
'friends', I believe he was quoted as saying 'buddies' with Lou Sitaris, one
of the rolling short individuals, and perhaps the most expert of the ones
known to be involved.
For quite a while, Silverman had been 'hyping' the stock under various alias
... they said he had revealed to them awhile back that he is also 'gjc'
something ... and noted that last night gjc and Silverman were having a
'dialogue' with himself on the threads, trying to pull in these three
'confederates' to the dialogue. They had all decided not to post.
Silverman also had dinner with Mark Rutheiser, and they confirmed that their
understanding is that Mark, who has quit putting out the SAC, sold his
shares ... some 30,000, last Tuesday, because of the confusion and
disinformation being put forward.
The thing that concerns Waaco is the closeness to the CRIC deal that all of
this is going on (Monday closing scheduled) and the evangelistic fervor with
which this campaign of disinformation is going on ... phone calls that say
one thing, posts that say another, and e-mail that says another. We have
been promised copies of e-mail that Silverman sent to these gentlemen, and
we will be posting those as received within the Forum specific (all you
posse members who haven't 'subscribed' will be missing this ongoing soap
opera! <g>). The reason for this is it takes about 30-minutes to send
something to the posse (over 12,000), so we just have to limit this
distribution to wrap-ups every night and once-in-a-while something special,
like an APB.
Silverman had been hyping a supposed $500m deal that GIFS is about to do, a
deal which comes as a surprise to the company and everyone else ... this
deal was supposed to close today. At the same time he has been calling
these holders, plus others like Harvey Kirby and Lee Solomon, and talking
out of the other side of his mouth (we got a taste of that last night ---
he's good!).
He wanted these individuals to go on the threads with him and 'hype the
stock' --- his words as quoted by them, and then 'sell into the buying'.
These individuals recognized this as illegal manipulation and decided among
themselves right away that they wanted no part of this plan. They broke
off communications with Silverman and now are being bombarded with e-mail
from him and he's been trying to call some of them to follow-through.
He is also floating the idea that he has photographs of vacant lots
purporting to be GIFS projects, and spreading a rumor that the FTC is going
to shut GIFS down within days, or two weeks, depending on the person he was
talking to. .. He was surprised that these individuals recognized his
13,000 share blocs that seemed to be crossing, etc., because he didn't think
any of them had a Level 2.
Silverman told them and I believe has posted that the BDO deal is a 'sham',
that BDO is a company that 33% of its clients just 'pay them off'. Mark
was particularly interested in this, since both his company and BDO are Big
Ten accountants, and believes BDO may find this actionable.
Silverman said his dad worked for Ernst & Young, yet Mark can find no record
of that, and that his dad had been to GIFS and has gone through their books
and found everything on the up-and-up ... this was during his 'hype' days
for GIFS. GIFS said no such individual has been to their offices.
Thinking back, when Silverman had originally posted as 'Mr. Smart Investor'
I believe I accidentally misunderstood one of his posts that he was willing
to be identified, and now think he never intended to be known.
He had wanted this three to go on the SI thread and 'hype, hype, hype, sell
and disappear from the thread'.
$$$$$$$
This commentary from Waaco Co-Editor Jim Rupp:
Return-Path: <jdr7@juno.com>
To: nymg@pipeline.com
Subject: Re: 92 / JEFF - WHEN DOES THE FUN START?
References: <1.5.4.16.19970424223923.1ae72a7a@pop.pipeline.com>
X-Juno-Line-Breaks: 11-12,14,16,18-165
From: jdr7@juno.com (James D Rupp)
Date: Fri, 25 Apr 1997 02:52:14 EDT
PS: the reasons we did not begin to write up GIFS in a bigger way at that
time were that our suscriber base was half what it is today, and so we
did not think much of an additional rally would ensue; and --I'll keep it
relatively clean here, there was no *^&&*^ing way that I was going to try
to get folks to particiapte in what I saw as his plan to, after he had
dragged everyone's 2+ holdings down to 1 1/2, dump those cheaper shares
back in to the market into everyone's additional buying, giving him a
tidy profit as a result of holding an enormous amount of shares. The
fractions don't have to get too high to make some nice money by selling a
couple hundred thousand shares, do they? Result would have been folks
"averaging down" but into upward momentum, only to get whipsawed and lose
perhaps doubly the amounts they would have.
This was before the sale of CRIC was announced.
Next couple sessions should be interesting eh? Thursday was sure
odd, too.
On that kind of volume, GIFS usually makes more of a move one way or the
other.
$$$$$$$$$$
=== Interestingly, Silverman told me on the phone (knowing I don't read that
stuff) that he was NOT posting anything on the SI Thread!
Jaime has been kind enough to pass to us the following:
Return-Path: <PULASKI35@aol.com>
From: PULASKI35@aol.com
Date: Fri, 25 Apr 1997 11:35:59 -0400 (EDT)
To: nymg@pipeline.com
Subject: Genesis
To: vasco soares (4702 )
From: Jeff Silverman Apr 22 1997 11:33PM EST
Reply #4705 of 4944
Vasco and All,
I am tired of all the crap on the thread about Genesis. It is apparent
that the shorters are doing everything in there powers to slam the stock and
scare off the young investors... As I see it now, it is a great buying
opportunity, due to the sale which will close over the weekend. I have
purchased a few more today, but (fran) got most of them, to say the least.
Also I have heard a very very strong rumor that a news release is in the
works, due to come out before the end of the week, announcing
a deal that would generate Genesis 500 million a year in revenue. From what I
have heard, this deal has been in the works for over two years,
and a agreement is in the works.
As for the market today, (fran) was the only Market Maker at the bid.
There was some scared young investors selling into (fran) hands to cover
there short position. As you remember last Thursday, the same thing
happened..It is rolling now, and if the buying starts up, come Friday, the
shorts will gain nothing. Remember that it rolls every three days....
I have also heard that the CRIC Deal will close on Monday, and there should
not be any delays.... The paperwork is in for final draft, and will be
released Thursday to the buyers and the sellers for review and
signature.
The 144 shares in question, will not be released on the 29th, due to the
counsel of Genesis has not deemed them legal, as of this date. Those are the
only shares that come into play at this time..
And last and final, the lawsuit in question, has, or seems to have a happy
ending for both sides...From what I have gathered, both parties
have been comunicating, and I heard that they have come to some type of
agreement. I understand that a press release is in order on this matter, and
should come out when settled.
As Always, these are my opinions, and should not be taken as a Buy or Sell
hype.
Happy Trading
********************************************************
To: Bob Wolff (4788 )
From: Jeff Silverman Apr 23 1997 1:36PM EST
Reply #4790 of 4942
Bob And BB,
Stopped by the office to see the updates on the thread, and see your posts. I
can give you some quick answers, as I have to leave for a meeting with a
client.
The deal that is in the works, is where Genesis will be using some of
proceeds from the CRIC deal. From what I have heard, and will report as I get
more insight, it is with a Govermental Agency.
Again, All my opinions, should not be taken as a buy or a sell indicater.
Happy Trading
********************************************************
To: pat mcvay (4817 )
From: Jeff Silverman Apr 23 1997 7:35PM EST
Reply #4821 of 4942
Pat and All,
Hell of a day today! In office to check my messages, leave a quick post and
out in the field again....Will be home later tonight.
Anyway, The deal is actually a billion dollar deal, comprised of a foreign
goverment and Genesis, as partners in common. From what I have been following
on this matter for the last 3 months, it has been in the works for 2 years. I
am sure alot of you are aware of this venture, but I will not post any other
information till I get some final information from the govermental agency...
Also as I told you, the indicators have shown since yesterday a major
buy signal, as you could see today on the tape...It looks to me like major
daytraders are gearing up for some news.
Thanks to Jaime and Marc for there DD on the Law suit information.
Happy Trading
Again, this is based upon my opinions and should not be deemed a buy or sell
signal.
***********************************************************************
=== Jaime and Marc want it known that they have NOTHING whatsoever to do
with Silverman, and want no thanks for anything ... they haven't done
anything ... anyway, this is very interesting reading taken in context with
his private phone conversations trying to get these and other individuals to
sell on the basis that he's known for some time that the company is about to
fold up. Ladies and gentlemen of Stock Ridge, finally Waaco found somebody
who could flabbergast him, and has. It is beyond disbelief, and that's
exactly what disinformation is designed to do. Only thing we can say,
Jeff, is that you have obviously been spending too much time out there in
the Palmdale desert close to Hanger 57.
We respectfully quote directly from 'The Guide to Waaco' -- one of the
tenets of TIM, especially about the 'bashing', which is a pattern we've seen
repeated many times here in Stock Ridge ... and you're welcome to apply it
anyway you wish since we never recommend anything one way or the other:
Also, this is taken out of context so yous hould review the entire TIM:
>B. Rebuy on your convictions. Now, if you researched the stock, believe
in its undervaluation, and it drops back to $6 or $5 or even less, buy
again. If you learn nothing from Peter Lynch, learn that the price of the
stock has nothing to do whatsoever with its value. If you value it higher,
don't be afraid to own it anywhere significantly below that valuation. And
remain unmoved and undeterred by what others might say or any bashing.
Remember that internet-bashing often directly precedes an event that is
scaring the living daylights out of the 'shorts', who are trying to talk the
stock to death just before its rejuvenation.
$$$$$
For the benefit of those who didn't see the content that led up to this, it
is posted below (remember, these are the posts that attracted the three
individuals to come forward in a conference call to Waaco, all together,
with their denials above).
Return-Path: <nymg@pipeline.com>
Date: Thu, 24 Apr 1997 21:09:08 -0400 (EDT)
X-Sender: nymg@pop.pipeline.com
To: jsilverman@hidesert.com
From: StreetLevel <nymg@pipeline.com>
Subject: 92 / JEFF - WHEN DOES THE FUN START?
Cc: markruth@dcn.davis.ca.us, investor.relations.genesis@juno.com,
jmaz05a@prodigy.com
Jeff, I was surprised to hear (was this correct?) that you had been posting
negative comments about GIFS on the public boards overnight? Not that
there's anything wrong with that --- it's your prerogative ... however I
felt that that was a disservice to your fellow WSE members since your
feelings should more properly have been expressed within the Forum first, or
at least simultaneously? We never censor anything, yet for some reason you
chose not to use this avenue to express your sudden change of opinion about
GIFS?
This certainly raises a new question, which I must ask you, as to whether or
not you and Tod Pauley had previous communications to this past week, and
whether or not someone impersonated Pauley's attorney or if that was
something you developed on your own? I guess it's confusing how you would
be echoing statements from a couple of people, one of whom was not real by
your own words, and the other of whom has not yet answered our questions
about 1) whether he ever owned stock in GIFS, and 2) where he got documents
which came from a stolen briefcase ...
As you know, TIM clearly states that shorters get the most furious in their
bashing a couple of days before a major event. Whether or not that event
occurs I have no crystal ball, but it certainly does fit the pattern that is
described in our TIM commentary, and which we have seen over and over again.
Finally, are you aware, as I learned to day, that Tod Pauley, as 'Tonto',
was heavily engaged in the short campaign against Solvex. And that he left
the short campaign against Solvex just as the GIFS stock came into serious
play? Do you have any knowledge of whether or not there is a roaming band
of internet cowboys who are steeped in the expertise of disinformation and
how to get close to the inside of events (you and Tod both have been on our
WSE and our PET, as well as in our Forum, keeping close tabs). And for
quite awhile, messages from GIFS to others about what the 'shorts' were
doing, what the company was doing, etc., included you in the cc:list. I
have to ask you directly: are you a member of an organized group of
shorters, and as Waaco would say, have you been in 'cahoots' with Tod Pauley
and his group for some time?
We have learned second hand that you have been advising people to manipulate
the stock in the next day or so (T+3) before the CRIC sale because the
company is going to be shut down by the FTC, all the employees have left,
etc. etc. etc. ... have I heard this wrong?
We are not speaking one way or the other on this matter ... the truth will
be known in a couple of days and most of us are willing to wait. However,
it was clear from the trading patterns yesterday and for awhile, even this
morning, that mms were trying to panic some small holders into selling.
What is most interesting is that they were probably surprised to be met with
'buying' instead of selling. If there had been selling among small holders,
we would have received dozens of e-mail messages ... we always do. and the
company would have been besieged by calls. They weren't. The sells came
in small blocks immediately after buying dried up... disguised to look like
retail selling. Our Waacoites are getting much more sophisticated and can
recognize that sort of thing.
One last thing ... if you guys do decide to manipulate a short-term run-up
above 2 so you can bail out, and we see bloc selling going in or a sudden
pressure on the mms to the downside, I will be right there with you, selling
fast and selling hard my little 3,000 bloc ... JUST LIKE TIM SAYS TO DO!
And then when it bottoms, I will buy back the whole amount again ... it's
certainly a risk, but one I'm glad to take. For others who are concerned,
they may not buy back in ... but for those who are in the stock for the
longer-term, they will follow TIM and that will thwart a short's panic, just
as it did Wednesday.
So go for it, if that's the plan ... we will gladly participate ... however,
you may be surprised to find that the bottom turns into a giant rally and we
hope you and your confederates, if I have heard correctly about your
activities on the public boards, are ready to cover and give us some really
giant profits?
Was 'Mr. Smart Investor' even smarter than we imagined? It keeps getting
bizarrer ... right? Who would suspect a 'big investor' who suddenly changed
his mind at the last moment?
If you have something to tell your 'fellow' Forumites, we'd love to hear it
and I promise to pass it through without comment. It is this little
oversite that has Waaco irked, IF we've heard right.
Meanwhile, if we did, does the fun start tomorrow? We can't wait.
$$$$
Jeff's response and our follow-up post after speaking with him:
Return-Path: <nymg@pipeline.com>
Date: Fri, 25 Apr 1997 00:34:52 -0400 (EDT)
X-Sender: nymg@pop.pipeline.com
To: gvlh24a@prodigy.com, nymg@pipeline.com
From: StreetLevel <nymg@pipeline.com>
Subject: 95 / SILVERMAN UPDATE
Return-Path: <jsilverman@hidesert.com>
Date: Fri, 25 Apr 1997 18:50:02 -0700
From: Jeff Silverman <jsilverman@hidesert.com>
Reply-To: jsilverman@hidesert.com
Organization: Jeffrey Silverman & Co.
To: StreetLevel <nymg@pipeline.com>
Subject: Re: 92 / JEFF - WHEN DOES THE FUN START?
References: <1.5.4.16.19970424210957.0aa7cdf4@pop.pipeline.com>
Gayle,
Call me asap, we need to talk right away..What is this bullshit about
posting, or is someone playing games...Give me your number or you can
call me at 805-722-5030
Jeff
=== This is to report that after speaking with Jeffrey I am comfortable that
our post was only half on track. It is true that Jeffrey is not the major
GIFS booster that he was when he was 'buying the float' back in December.
He apparently accumulated about 340,000 of so shares, and over the past few
weeks has sold about 200,000 of those. This is because he has not been
fully reassured of the speed with which he feels the company is progressing
on its new PaceCar Motorsports project and the Miller Mountain. Jeff says
that photographs of those properties show little if any activity to date.
I encouraged him to post these things directly because it is unequivocally
part of the Waaco Kid's Forum that we want all commentary to be posted so
folks can make up their own minds. Also, it appears that Mark Rutheiser,
whom we also continue to respect, has lighted up on posting his SAC. We
feel that SACS in general should not post on public boards but instead
should let those on public boards know that a SAC exists. We believe that
SACs should allow anyone to subscribe but should limit any actual dialogue
to shareholders. This way the SACs function the way they should and are
not unduly influenced or battered by public boards.
We've encouraged Mark privately that if he is not going to post information
pro and con to the SAC he should ask for volunteers so that someone could
pick up that torch. As you know, WKF is an interactive forum among
co-equal co-editors, and there is nothing I know or have heard that you
should not know or hear and vice versa. We expect everyone to live up to
that tenet ... and while we appreciate the fact that some might think their
feelings or beliefs might impact someone's holdings negatively, our mutual
responsibilities are to just say what we know or think. Period. No other
considerations. I still hold 3,000 shares. That is not going to influence
my responsibilities here to let it all hang out, as I think everyone knows.
That's a 'different' forum where that happens <g>.
What we do not believe at this point is that Jeff is part of any 'gang of
conspirators'. We do have information mentioned in passing today from an
individual close to the Solvex (SOLV) dialogues that 'Tonto', a psedonym of
Tod Pauley, was closely associated with the major disinformation campaign
that went on before Solvex was able to begin producing the product the
shorters said they would not.
However, it is true that Jeff called two or three of the individuals on the
SI thread and suggested to them that if the shorters hit the stock tomorrow
(T+3), they should buy to support a rally. If they can cause the shorts to
cover, their intent would be to sell into that rally at whatever prices it
might go to above 2.
We don't know if they're going to actually do this, or if they would be
successful, but we have never felt it is our business what these major
players do with their money, or how they trade. If, as stated before, we
follow TIM religiously we can profit, and if we choose to believe in the
company or that the events will unfold Monday (for a possible Tuesday
announcement), we will follow TIM back in at a more advantageous price.
Of course, if this situation follows all others we've seen where a major
event is about to unfold, the stock would also likely have an interesting
Monday.
The issue with Jeff and Mark appears to be credibility, but on the other
hand those doubts were raised from information (or disinformation) advanced
by the Big Short crowd. Millions of dollars may be at stake in the events
about to unfold, so our job is simply to tell you that the company says it
is on track to achieve a monumental sale Monday, and detractors say they
don't believe anything. In fact, the story making the rounds now is that
the FTC is involved somehow, and that should they step in anytime in the
next week or so, trading could be halted. On the other hand, the company
itself repeated these allegations earlier today in passing, and gives them
no credence.
We do know that some of the information (or what is believed to be
information) comes in the way of piecemeal documentation obtained from a
stolen briefcase in an automobile break-in. That does not seem to have
been contradicted, and Mr. Pauley has never answered our questions about the
shares he is said to have owned. Jeff Silverman said one letter he saw
from Pauley's attorney indicated that Pauley once had 30,000 shares of GIFS
through a trust in a parent's name, and 20,000 IMXS shares which he has not
converted, but himself gives no credence to Pauley's claims to have been
matching Silverman's buying back in December/January when Pauley said he was
buying.
This is obviously a high risk, high reward situation, and if you can't play
on a tick-by-tick basis in a volatile market environment, or if the money
invested or to be invested is anything other than monopoly money you can
afford to lose, the next few days would not be for you.
Hope this clarifies things ... it's just about everything we've been told
... and as far as is known, we've pretty much posted over the past few weeks
everything we've heard from both sides ... and in a couple of cases, like
tonight, we have actually flushed out negative comments to be sure a balance
is struck.
On the other hand, it is not lost on us that an event is coming and the
shorts are out in force to try to prevent a rally, to cover at lower prices,
etc. etc. Everything has to be kept in that perspective.
Enjoy. <g> |
