GEOFFREY EITENS CANCER SCAM EXPENTION PROMOTION GRINDS TO A HALT
lINK TO GEOFFREY EITENS CANCER SCAM REPORT ON XPENTION
"The distribution costs of this report to new subscribers, eighty thousand dollars were funded by Agile Investments Ltd. in an effort to create investor awareness of Xpention Genetics, Inc. Agile Investments Ltd. is not a broker-dealer nor are they an investment advisor. Market Movers, OTC Growth Stock Watch, OTC Special Situations Report, nor is Geoffrey Eiten to be considered a broker-dealer though they are investment advisors".
sports.groups.yahoo.com
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"They also transferred 17.3 per cent of the company's shares to Mr. Fernando, who paid paid for favourable coverage in three tout sheets, the SEC claimed. The tout sheets identified by the SEC were the SuperStock Investor, the Michael Williams Market Mover and the OTC Special Situations Report.
SEC settles with Coutris brothers for Xpention
2010-05-27 14:23 ET - Street Wire
Also Street Wire (U-*SEC) U.S. Securities and Exchange Commission
Also Street Wire (U-HSTH) HS3 Technologies Inc
Also Street Wire (U-XPNG) Xpention Genetics Inc
by Mike Caswell
The U.S. Securities and Exchange Commission has settled with John Coutris and Michael Coutris, two brothers facing civil charges in Colorado for the pump-and-dumps of Xpention Genetics Inc. and HS3 Technologies Inc. Without admitting any wrongdoing, both men have agreed to orders permanently banning them from penny stock offerings. They have also agreed to pay civil penalties and to disgorge profits in amounts to be decided by the judge.
The SEC claims that the Coutris brothers and six other men, including West Vancouver's Joseph Fernando, touted Xpention and HS3 with paid tout sheets and spam. They paid $705,000 for favourable coverage in three newsletters, and sold $3.5-million worth of stock. (All figures are in U.S. dollars.)
The settlements with the Coutris brothers were contained in separate proposed consent judgments filed on May 26, 2010, in the District of Colorado. Assuming the judge accepts the settlements, there will only be four defendants remaining in the case. One of those is Mr. Fernando, who has not participated in the proceedings since October, 2009. The SEC won a default judgment against him on May 12, 2010, after he failed to appear for a court-ordered deposition. The judge must still determine his penalties.
SEC's complaint
The SEC filed a civil complaint against Mr. Fernando, the Coutris brothers and others on March 9, 2009, in the District of Colorado. The regulator identified Michael Coutris, 28, as a resident of Colorado, and his brother John Coutris, 38, as a resident of Texas. The other defendants included the Coutris brothers' father, James Coutris, 64, of Ohio; Scott Gelbard, 33, of Colorado; Aaron Lamkin, 31, of Colorado; and Dimitrious Gountis, 34, of Ohio.
The first of the pump-and-dumps was Xpention, an OTC Bulletin Board company that purported to be developing a cancer vaccine for dogs and a cancer detection tool for humans. The scheme began in October, 2004, when Mr. Gelbard, Mr. Lamkin and Mr. Koslosky acquired 72 per cent of a shell that was to be come Xpention, the complaint stated. They hid some of their holdings by transferring 20.6 per cent of the company's shares to James Coutris, who claimed beneficial ownership of the stock, according to the SEC.
They also transferred 17.3 per cent of the company's shares to Mr. Fernando, who paid paid for favourable coverage in three tout sheets, the SEC claimed. The tout sheets identified by the SEC were the SuperStock Investor, the Michael Williams Market Mover and the OTC Special Situations Report. They claimed that the stock would rise substantially when the company began human trials of its cancer vaccine, with the SuperStock mailer predicting Xpention could go from $1 to $100.
"[S]cientists have stumbled onto an incredible biotechnology breakthrough: the world's most effective medical test for early detection of cancer," the mailer read. "[The scientists] discovered several chemical agents that could effectively block the production of P65 in the body. And by stopping the body from making P65, they were actually able to slow -- even halt -- further growth of the cancer cells!" The mailers went out both in physical form and in a spam e-mail newsletter called the OTC Growth Stock Watch.
The SEC said the tout sheets were misleading, because the company had not done any research on detecting cancer in humans, and laboratory testing on its cancer vaccine for dogs was not successful. "In fact, even the potential, future marketing of a cancer test for dogs was false and misleading because the touts omitted material information," the complaint stated. The tout sheets also failed to mention that Mr. Fernando had paid for the coverage.
In the wake of the newsletters, the stock rose from $1 to $1.29. Mr. Fernando and the others sold their stock, with Mr. Fernando grossing $2-million and the others receiving $1.5-million, according to the SEC.
The smaller of the two pump-and-dumps was HS3 Technologies, a company that purported to be developing a real-time video surveillance system that used Ka-band satellites to relay the data. The men paid for favourable tout sheets, which predicted prices of up to $4 for the company, the complaint stated. The stock then rose from 83 cents to $1.07, and the men sold their shares, realizing $464,000 from the sales.
The SEC sought disgorgement of profits, appropriate civil penalties and orders barring the men from participating in future penny stock offerings.
With the Coutris brothers settling the case, the only remaining defendants for a trial are Mr. Gelbard, Mr. Lamkin and Mr. Gountis. The senior Coutris reached a deal with the SEC on April 20, 2010, agreeing to an order preventing future violations of the U.S. Securities Act. The SEC did not request any monetary penalties based on his financial condition. As with his sons, James Coutris did not admit to any wrongdoing.
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Gelbard is a POS
Posted by pump and dump @ 2010-05-27 16:34
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