Banco$, I'm not sure "a technology company" is the proper terminology for Phoenix Metals after obtaining a copy of the civil RICO filing in Nevada from my PI friend. The Nevada case against Flaherty and Phoenix Metals has attached to it the SEC case and the Memphis, Tenn civil RICO case supposedly to show a pattern of racketeering activity by the company in which I appear to have foolishly invested my money. All of the cases describe considerable past personal and corporate criminal history of fraud, most involving cinders and dore' bars, including securities violations in the states of New York, New Jersey, Washington, North Dakota and California. According to the Nevada allegations, the Flahertys used another of their companies to purchase the Black Mountain facility at Searchlight that we shareholders have been hearing so much good news about. The suit claims that the Flahertys traded this purchase for a multimillion dollar block of Phoenix Metals stock, but have refused to pay the sellers for the facility and some additional mining claims for which the sellers allege the Flahertys paid themselves with yet another large block of Phoenix Metals stock. The suit alleges several allegations of racketeering fraud and extortion and seeks return of their properties. After reading the complaints in Nevada, Tennessee and God knows where else, I question if the SEC investigation is truly over. I would suspect several federal and various state agencies are looking at Phoenix Metals, its principals and management team about now. I'll sell cheap about now!!
According to the SEC complaint that was attached, Flaherty and some of his companies misrepresented the identity of members of the management teams of Phoenix Metals and Flaherty's background in a gold and platinum from cinders scheme to bilk investors of about $2.5 million. According to the SEC, Phoenix Metals and Flaherty also misrepresented the value of Phoenix Metals, its ownership of cinder ore; ownership of processing facilities, and its cinder ore processing patent. Instead of Flaherty and his companies fighting the SEC's allegations, the documents show where they consented to a judgment against them, permanent injunctive relief and agreed to return some of the proceeds from their securities violations. This is certainly a different story from what we shareholders were told in the company newsletters about this investigation.
The Memphis Tenn case against Flaherty and Phoenix Metals alleges mail fraud, wire fraud, and acts of securities fraud based upon a California company being defrauded of $300,000 in their purchase of worthless dore' bars. These appear to be the $114 million dorie' bar asset shown on the company's financial statements. Like I previously said, I'd sell cheap about now, technology be damned.
Note: It appears Flaherty operated at Black Mountain with a partner named "Reeter." DIFFERENT REETER, MY FRIENDS.
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