Thanks in part to your posts, I've put together some information on Ian Rice.
I've found four different companies with a similar pattern: U.S. Global Aerospace (USGA, formerly Caring Products Inc.); Global Diversified Acquisition Corp. (GDAQ.OB, formerly Sutton Online, Ikon Ventures, MyWeb, Inc., and Asia Media Communications); Wall Street Strategies Inc. (WSSIQ.PK, formerly Vacation Emporium Corp., Rising Sun Capital); and Power2Ship Inc.(PWRI.OB, formerly Jaguar Ventures).
The pattern is this: setup or purchase a shell, or "blank check" company. Find a startup or struggling company to merge with. Complete the merger using a stock swap, possibly issuing additional shares after a reverse split. Step down and appoint a new CEO. Then within 1-3 years the stock price has been pumped up and then crashes, sometimes in bankruptcy.
USGA is still in the "growth" stage, so the crash hasn't happened yet.
What I haven't been able to find is how Rice is profiting from this. I would think that if he had shares left after stepping down that he would have to file with the SEC to sell them. I haven't been able to find any significant transactions.
What is the mechanism by which he makes his money? I'm curious because perhaps there would be signs in USGA that would signal its fate. Is there any evidence, other than the circumstantial evidence, that points to Rice's involvement in pump and dump schemes?
Another interesting thing, the name Stephen Kerr of Corporte Communications Network comes up in relation to USGA (144 transations) and Global Diversified Acquisition Corp. (he received 23,500,000 shares or 48% of the company, in exchange for $23500). |
