#7, Armstrong Test. pp. 159:14-161:6). For his part, Markow testified that he transferred the stock in exchange for Armstrong using his website (“myDD.com”) to conduct a “public
awareness campaign” about stocks Markow was interested in. (Doc. #125, Exhibit 6 to Pl.
===============================
Finally, in December 2000 Markow transferred 10,000 shares of China World Trade to
Armstrong. (Ex. #7, Armstrong Test. pp. 149:1-150:21; Doc. #125, Exhibit 6 to the Pl. Mem.,
Markow Test. pp. 191:14-193:10). When initially confronted about this transfer during his
testimony, Armstrong said for the first time that part of the $18,750 he wired to Goelo in March
for BLUEPOINT shares was actually for another stock.14 (Ex. #7, Armstrong Test. pp. 151:24-
153:25, 154:21-155:8). He explained that the money included $5,000 earmarked for a stock in a
future reverse merger company, although he and Goelo did not specify a company, the number
of shares, the share price, or the date of the merger. (Ex. #7, Armstrong Test. pp. 157:13-
158:12). Armstrong could not explain why Markow sent him the stock instead of Goelo. (Ex.
#7, Armstrong Test. pp. 159:14-161:6). For his part, Markow testified that he transferred the
stock in exchange for Armstrong using his website (“myDD.com”) to conduct a “public
awareness campaign” about stocks Markow was interested in. (Doc. #125, Exhibit 6 to Pl.
Mem., Markow Test. pp. 192:9-193:10; Ex. #7, Armstrong Test. p. 121:21-22). This contradicts
Armstrong’s testimony that he never accepted any compensation from Markow or anyone else to
promote stocks on his website. (Ex. #7, Armstrong Test. p. 191:14-17).
Ernest Hung has confirmed that he received a private message from Goelo asking him “to
post a certain [sic] information about a company called BLUEPOINT.” (Doc. #130, Deposition of
13 Armstrong believed that received a “raw deal” on the shares he purchased from the market makers because they
“are the ones that gave me the bad price, because it stated trading at – you know, it was showing that it was going to
start trading at around 6 or $7 that morning and they apparently did some what I call, you know, pumping the stock
up and they traded their shares and flipped them back and forth to each other, ran it up to 20, and then filled all the
market orders that they’d taken which hadn’t filled at $6.” (Ex. #7, Armstrong Test. pp. 129:1-18).
14 Goelo testified that the money he received from Armstrong only involved the purchase of BLUEPOINT. (Doc. #118,
Goelo Dep. pp. 126:16-127:2).
Case 2:03-cv-00326-JDH-MRA Document 139-1 Filed 08/15/2005 Page 20 of 84
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