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BC Securities Commission -
BCSC helps SEC cite Ogle, Tabor in broker bribery scheme
BC Securities Commission BCSEC
Shares issued 0 1899-12-30 close $0
Tuesday Feb 2 1999
See (U:EXSO) Street Wire
by Brent Mudry
FOUR CANADIAN BROKERAGES USED
A quartet of former and current Vancouver Stock Exchange players, led by stock promoter Floyd Leland Ogle, have been charged by the United States Securities and Exchange Commission for stock manipulation and broker bribery relating to a U.S. bulletin board promotion, Exsorbet Industries, based in Arkansas. The SEC claims that Mr. Ogle and Kelowna-based business partner Donald Tabor rigged Exsorbet, renamed Consolidated Eco-Systems, from its initial opening, using accounts at four Canadian brokerages. The alleged co-conspirators include Chicago stockbrokers Albinas Kurkulis, Andrew Kurkulis and Paul Kurkulis, former San Diego broker Robin Opp and former Exsorbet executive vice-president Gary Cotten of Muskogee, Oklahoma.
"Cotten is currently under federal indictment in New York City for securities fraud related to the bribery of stockbrokers," states Richard Walker, director of the SEC's Division of Enforcement. The SEC notes that Mr. Ogle was convicted in Canada in 1987 for criminal conspiracy to manipulate the stock of a Canadian company, for possession of stolen property and for obstruction of justice.
The SEC charged Mr. Ogle, the former president of Exsorbet, Reuben Peters and his brokerage, Peters Securities LP of Chicago, Exsorbet's market maker, Mr. Tabor and his Canadian company, Kailey Mining, with manipulating Exsorbet's stock from 1993 to 1996. The SEC filed its suit on Monday in U.S. District Court in Chicago. Mr. Walker notes the investigation, assisted by the British Columbia Securities Commission, marks the latest action in the SEC's crackdown on cross-border microcap fraud. The SEC seeks disgorgement of ill-gotten gains, civil monetary penalties, bans on serving as an officer or director, and a permanent injunction against the lead defendants. The commission alleges numerous violations of federal securities laws, including fraud and registration infractions.
"The commission's complaint alleges that the defendants pushed the price of Exsorbet stock from $1 (U.S.) to $13 (U.S.) a share by giving or receiving bribes for participation in the manipulation, controlling the floating supply of Exsorbet stock, artificially fixing the opening price at $5 (U.S.) in the first day of trading on February 4, 1994, and dominating and controlling the secondary market in the stock," states the SEC. The commission also claims Mr. Ogle and Mr. Tabor engaged in extensive cross-border stock manipulation, including wash and matched trades, through four Canadian broker-dealers.
In addition, the court complaint alleges Mr. Ogle and Mr. Cotten issued a forged U.S. Environmental Protection Agency enforsement letter of Exsorbet's oil absorbent product, and issued a false press release claiming the company had $5-million (U.S.) in contracts. Exsorbet's flagship asset was a peat moss oil absorbent product, purportedly useful in environmental cleanup and remediation services. Exsorbet shares began trading on Feb. 4, 1994, on the pink sheets, moved to the bulletin board a month later and graduated to the Nasdaq Small Cap Market on Nov. 27, 1995. The stock's market cap peaked at $105.5-million (U.S.) on Sept. 22, 1995.
Mr. Ogle, Mr. Tabor and Mr. Cotten have played various roles in VSE promotions in the past, while Chicago broker Albinas Kurkulis is a current follower of several VSE stocks. Mr. Kurkulis made modest private placement investments in three of Frank Lang's companies: Reward Mining in 1997, Sultan Minerals in 1996 and Valerie Gold Resources in 1993.
Mr. Ogle was a major player in Nor-Con Explorations, a Vancouver Stock Exchange promotion, from 1985, when he took control from a group including Vancouver promoter Robert "Bozo" Lalich, to 1990. Nor-Con's other notable alumni includes Cycomm International's Isaac Moss, and Hi-Peg Resources, in an assignment deal. Mr. Ogle also was a shareholder of VSE-listed Elegance Business in 1986, and two private companies, Contronics Systems and OK Coal, in the same period. During Mr. Ogle's tenure, Nor-Con's main deals included a proposed reverse takeover of American Tread Manufacturing of Booneville, Arkansas, a purported maker and marketer of recycled radial tires.
During the same period Mr. Ogle was working Nor-Con, Arkansas associate Mr. Cotten was involved with another VSE promotion, Mystery Mountain Minerals. Mystery Mountain planned to buy 946 acres of oil and gas leases in Oklahoma's Oksufee, Muskogee and Okmulgee counties from Mr. Cotten's Cotten Oilfield Services in May, 1984, but the deal died a year later. Mystery Mountain stated the deal ended "due to the inability of Cotten Oilfield Services to convey title to the properties."
Mr. Ogle's other associate, Kelowna-based Mr. Tabor, has been involved more recently on the VSE. Mr. Tabor served a stint as director of Aucan Resources, then served an eight-month session doing investor relations for Spectrum Games before being abruptly fired. Spectrum hired Mr. Tabor's associate, Robert Woodward, in August, 1993, for "public relations" at $3,000 a month. A few months later, in January, 1994, Spectrum claimed it had four new games ready to launch: Standing Room Only, Bloody Murder, Breathless in Bananaville, and Speaking 'n Squeekin, with infomercials ready to roll.
On Mar. 28, 1994, Spectrum immediately terminated all services provided by Mr. Woodward, his associate Mr. Tabor and his numbered company, 414959 B.C. Spectrum's chief financial officer, Reginald LaBonte, abruptly resigned the same day, soon followed by the departures of president and chief executive William Hill and vice-president Susan Mahler. In July, 1994, Spectrum revealed it had shut its New York office, cancelled its purported negotiations with the American Automobile Association, and terminated all four games contracts, including Breathless in Bananaville and Bloody Murder.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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