ZIASUN PROMOTER GEOFFREY EITEN INVOLVED IN YET ANOTHER STOCK SCAM. GEOFFREY EITHENS "OTC Special Situations Report" FLOATS CANCER SCAM PROMOTION sports.groups.yahoo.com
INSPITE MASS. SECURITY REGULATORS FRAUD LAW SUIT AGAINST ENTEN ( SEE Message 25447514 FRAUD )THE UNITED STATE SECURITIES AND EXCHANGE COMMISION CONTINUES TO LOOK THE OTHER WAY
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"The tout sheets, called the SuperStock Investor, the Michael Williams Market Mover and the OTC Special Situations Report, claimed that investors could make millions when the company began human trials of its vaccine.
SEC asks judge to order Fernando to Denver
2009-10-09 14:32 ET - Street Wire
Also Street Wire (U-*SEC) U.S. Securities and Exchange Commission
by Mike Caswell
The U.S. Securities and Exchange Commission has asked a Colorado judge to order Vancouver promoter Joseph Fernando to fly to Denver and provide a videotaped deposition. The regulator says it must interview him before his trial for the pump-and-dump of two OTC Bulletin Board listings, but Mr. Fernando has refused to attend. Citing the judge's Nov. 2, 2009, deadline for the completion of pretrial interviews, the SEC is seeking an emergency order compelling his attendance.
Depositions are routinely done to gather information before trials, and to help avoid surprises during the trial. Attendance is usually mandatory. In this case, however, Mr. Fernando has refused to appear, and has claimed that he must care for his ill mother, the SEC says. The SEC has unsuccessfully sought verification of her illness, given that Mr. Fernando has cited medical excuses for not meeting two prior deadlines.
SEC's complaint
The SEC filed a complaint against Mr. Fernando and seven others on March 9, 2009, in the District of Colorado. The regulator claimed that the men sold $5.9-million worth of shares in Xpention Genetics Inc. and HS3 Technologies Inc., after paying tout sheets for favourable coverage of the companies. (All figures are in U.S. dollars.)
The other defendants are Scott Gelbard, 33, of Colorado; Aaron Lamkin, 31, of Colorado; Jeffrey Koslosky, 43, of Colorado; John Coutris, 38, of Texas; Michael Coutris, 28, of Colorado; James Coutris, 64, of Ohio; and Dimitrios Gountis, 34, also of Ohio. The complaint also named Regency Group LLC, a Colorado company that buys shells and merges them with private companies.
The first pump-and-dump cited in the complaint was Xpention, which purported to be developing a cancer vaccine for dogs and humans. According to the SEC, Mr. Gelbard, Mr. Lamkin and Mr. Koslosky secretly acquired 72 per cent of a shell that became Xpention in October, 2004. They later transferred 17.3 per cent of the company's shares to Mr. Fernando, who paid for three tout sheets promoting the company, the SEC claimed.
The tout sheets, called the SuperStock Investor, the Michael Williams Market Mover and the OTC Special Situations Report, claimed that investors could make millions when the company began human trials of its vaccine. The SuperStock Investor predicted the stock could go from $1 to $100 when the FDA approves the company's cancer vaccine. "Even if the cancer test never wins FDA approval for human usage, introduction of the P65 canine cancer test could drive the stock as high as $10, giving us a 900% return on our investment," the SuperStock Investor claimed.
According to the SEC, the representations in the tout sheets were misleading, because the company had not done any research into detecting cancer in humans, and it was not prepared to sell any related products. The mailers also failed to mention that Mr. Fernando paid $805,000 for the coverage, and that the money came from Xpention share sales, the SEC alleged.
As the tout sheets went out, the stock rose, going from $1 to $1.29 on May 26, 2005. Spikes in its volume coincided with tout sheet releases, according to the complaint. At the same time, Mr. Fernando and the others dumped their shares, for profits of $3.5-million, the SEC said. Mr. Fernando received $2-million of the money, while the others received a combined $1.5-million.
The second pump-and-dump cited in the complaint was HS3 Technologies, which claimed to be developing a real-time video surveillance system using satellites to relay the data. As with Xpention, the promoters paid for tout sheets to recommend the stocks while they sold their shares, the SEC said.
The tout sheets, which were called Stock Trader News, Tech Watch Alert and Small Cap News, predicted that the company could rise from $1 to either $1.97 or $4. "This could end up being the homeland security play of all time," read the Stock Trader News.
As the tout sheets went out, the stock rose from 83 cents on Oct. 12, 2005, to a lifetime high of $1.07 on Nov. 29, 2005. Volume grew from 70,000 shares to 1.6 million. The SEC said that Mr. Fernando and the other men sold their stock, with Mr. Fernando realizing $131,700 in profits and the others realizing $333,000.
The SEC sought disgorgement of profits, civil penalties and orders barring the men from participating in future penny stock offerings.
All of the defendants deny any wrongdoing. In a joint scheduling order filed on May 1, 2009, Mr. Gelbard and Mr. Lamkin said that any shares they sold were either properly registered or were exempt from registration. Mr. Koslosky claimed that he did not induce anybody to buy shares, and he did not have beneficial ownership of more than 5 per cent in the stock of either company. Mr. Fernando denied that he participated in any pump-and-dump.
SEC's motion
The SEC, in its motion to have Mr. Fernando provide a deposition, says that the promoter has repeatedly provided excuses for failing to testify, usually because of illness or death in his family. The SEC claims that the excuses began in May, 2006, when it served the promoter with its initial investigative subpoenas.
At the time, Mr. Fernando had agreed to provide the SEC an interview from his lawyer's office in Vancouver, over the phone. On the day of the interview, however, he was not available. He later claimed that he was out of town and became ill, so he could not return in time for the call, the motion states. The SEC says it offered to reschedule for later dates, but Mr. Fernando replied that he had a death in his family, and never provided the interview.
There was a similar problem with a Wells submission that Mr. Fernando had agreed to provide to the SEC in January, 2008, the motion states. The regulator had set a deadline of Feb. 11, 2008, for Mr. Fernando to provide the submission. The SEC says the original deadline and three subsequent ones then passed, and Mr. Fernando still did not file the submission. The excuse he offered was that he was undergoing "intensive medical treatment as a result of a serious condition" and would provide the submission as soon as possible.
With the deposition, the SEC is asking for a court order stating that Mr. Fernando must appear in its Denver office at 9:30 a.m. on Oct. 27, 2009. The SEC will pay for his flight and hotel. The motion will be heard by Judge Boyd Boland on Oct. 16, 2009.
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Medical excuses? Fernando is a liar, this guy frequents the Cecil for lap dances and hangs out at the Cactus Club on Burrard. Viagra isn't medicine!
Posted by Fugitive @ 2009-10-09 15:22
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Terminal dandruff. Extreme hangnail. Paper cuts with serious onset infection caused by bogus share certificates.
His mothers' grandmother's dog died. He has anal warts, advanced genital diarhea AND his second cousin's pet hamster died.
Give the poor guy a break already.
Posted by My Sick Dog ate it @ 2009-10-09 16:39
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Mr. Fernando paid $805,000 for mailers!!! He's sick in the head. His medical condition is mental illness. Just think what a start up company could bo with that kind of money. Instead this twisted freak blew it on promotion so he could dump worthless paper on suckers.
Posted by Pump and Dump @ 2009-10-09 18:06
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interesting name fernando where is he from--another trying to take advantage of our system---get this trash out of here
Posted by saul seeking truth @ 2009-10-09 21:32
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Fernando is another refuge just like Ray Scabney hiding out in Vancouver away from US authorities, so they think.
Posted by On the run @ 2009-10-09 22:17
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When will Rene Hamouth be deported back to India?
Posted by Arthur Road Jail @ 2009-10-10 00:09
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