In 1992 I was suckered into buying shares of HURI (Hughes Resources, Inc. at $6 per share. The bucket shop Chatfield Dean did it. The Texas company was incorporated in Colorado. James E. Hughes controlled the company which owned sawmills in Texas and Louisiana. The 10/31/94 year-end report showed sales of $28 Million and a net loss of 1 cent per share on 5 million outstanding. There were annual reports and annual shareholder meetings. The lumber business foundered, and in 1995 a James R. Ray became president of HURI; the name of the company was changed to Phoenix Resources Technologies, Inc. and was reincorporated in Nevada. Headquarters moved from Texas to Scottsdale, AZ. All financial reports to shareholders and annual meetings ceased abruptly. I did receive a 10-Q statement filed with the SEC September 1, 1996 showing for the quarter ended July 31, 1996 earnings of $1.1 Million, 9 million shares outstanding, and $21 Million in assets.There was also a 10-K statement dated June 4, 1996 that chronicles a bizarre history of self-dealing between and by James R. Ray and James E. Hughes whereby the lumber division was transferred to Hughes in exchange for oil and gas properties of dubious value located in Louisiana. Phoenix issued 8,300,000 shares valued at some $8 Million to buy 17 acres and several oil wells from Southwest Holdings, a Virgin Islands company operated by James R. Ray. These assets had previously been owned by James Hughes, who transferred them to JADE Oil, who transferred them to Southwest. This was not an arms length transaction. Oil production from the property was only some 10 barrels per day. The 10-K states that the property had not yet been transferred to Phoenix - maybe it never was.
Later, in 1996, there were other multi-million dollar transactions whereby Phoenix acquired West Virginia oil and gas properties from Warren Haught (the Haught assets). This involved issuance of a series of dividend-paying shares convertible into some 11 million shares of Phoenix Resources.
After 1996 there was no further word from Phoenix until March, 1997, when one Michael A. Puhr of Littleton, Colorado, representing himself as president of Phoenix Resources (PRTI), stated in a notice that all the Phoenix oil and gas holdings were to be sold to MVP Holdings of Fountain Hills, Arizona. The announcement stated that the consideration was $14 Million and assumption of all debt by MVP; evidently the deal was that PRTI accepted payment in the form of 4,000,000 shares of MVP valued at $3.50 per share; in other words, no cash changed hands. The announcement also indicated that PRTI would thereafter focus on its bottled water franchise named Rocky Mountain Crystal Water, Inc. PRTI shareholders like myself had never, and have never, been advised about PRTI's interest in Rocky Mountain Crystal.
I now have two stock certificates, one for 200 shares of Phoenix Resources dated 12/28/97 signed by James A. Ray as president, and one for 66 restricted shares of MVP Holdings dated 1/3/98 and signed by Michael W. Berg as president. To my knowledge, these companies do not file statements with the SEC, do not issue financial statements to shareholders, and do not hold shareholder meetings. Berg once threatened to sue me if I complained to the SEC.
I have complained to the SEC and received responses to the effect that Nevada law is in effect, that the SEC has no jurisdiction, and that I need to hire an attorney. Nevada law gives minority shareholders of public companies no rights whatsoever. These companies have no place on NASDAQ. I am insulted and mad as Hell. These people belong under the jail. |
