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Microcap & Penny Stocks : SHAL -- Ignore unavailable to you. Want to Upgrade?

To: MKTsavvy who wrote (822)	6/16/1999 9:30:00 PM
From: StockDung	Read Replies (1) \| Respond to of 941

Krause did write the Truthseeker Report on his web site. He thought he was being wise until he read the real Truthseeker response. Krause is not laughing now and it will haunt him for the rest of his life especially when they deport him back to Canada where he belongs. Maybe you can call him and get the answers to my questions. Seems he spends all day answering the phone all day speaking to shareholders. Makes the Truthseeker wonder how he gets anything done. Stock up today? Those 13,900 shares traded shows nobody believes a word Krause says. Must have been up on short covering. Truthseeker responds to GARRETT KRABman KRAUSE. In Garrett Krause's document, "The Truthseeker Report" sarahallitex.com posted on the Sara Halitex web site (www.saraonline.com), Mr. Krause is unable to refute any of the information that has been uncovered about SHAL. Truthseeker has seen this report and has some additional questions, that any current or prospective investor, long or short, in SHAL, should be interested in learning the answer to. "Long before founding Sara Hallitex Corporation, I had been a private investor, investment banker and consultant operating with many investments worldwide. Through my business dealings, I met a number of global investors interested in financing and building emerging growth companies with the eventual goal of taking these companies public." A)With what firm were you an Investment Banker? B)Did any of these "global investors" include Mr. Larry Ryckman? "Question #1: If this was a stock scam whereby the insiders just wanted to unload stock why did it take until October 31, 1997 to open the stock on the market?" The answer to Mr. Krause's "Question #1" sadly can be answered only by him. However, some possible answers include the lack of finding a market maker willing to sign off on a 15c211 form and actually make a market in the stock of SHAL. "The Wilmington Group of Companies was, and continues to be, one of the primary investors in Sara Hallitex Corporation long before the Company was even created. I previously served as Managing Director for the Wilmington Group of Companies the primary catalyst and forefront to Sara Hallitex, providing most of the early financing and organizational support for the Company during its formative stages. Wilmington Capital currently operates as the resident agent and incorporator for a number of new Nevada companies." Mr. Krause fails to mention in his letter the involvement of Mr. Larry Ryckman in Wilmington Rexford, one of the Wilmington Companies. However, in an old press release, from June 10, 1998, Mr. Krause states "Ryckman at one time was associated with Wilmington Rexford Inc., the company's investment-banking and public-relations company, as an advisor to assist Sara in certain investment-banking objectives." C)What were those objectives? D)What interest does Ryckman have in Wilmington Rexford? E)What interest does Ryckman have in the other Wilmington Companies you refer list? F)What was Ryckman's position at Rexford? G)Were you ever an employee of Mr. Ryckman? H)If Wilmington was the "primary catalyst" for SHAL, and Ryckman is involved in Wilmington, is it true to say there is "no connection" between SHAL and Ryckman. I)Where is there any disclosure of Wilmington's holdings in SHAL stock? J)Is Wilmington not a related party? K)Is Wilmington a greater than 5% holder of SHAL stock? L)Of SLNN stock? M)Of ULAB stock? N)Of JNUS stock? O)Is Ryckman a holder of SHAL stock? P)Of SLNN stock? Q)Of ULAB stock? R)Of JNUS stock? "Mr. Holmes Stoner, Jr. is President of Wilmington Rexford, Inc., a U.S.-based investment company that has invested in Sara Hallitex Corporation companies since 1995. Up until the middle of 1996 I was President of these companies acting on behalf of my investments and my international investor group. I resigned all positions with these companies in August of 1996. Mr. Stoner took over all day-to-day operations to represent the best interest of the shareholders of these companies and investment partnerships." "Today, Mr. Stoner is still active in the further investment of Sara Hallitex Corporation through the Wilmington Group of Companies. The Wilmington Group has supplied capital to fuel our expansion allowing us to be in the position we are in today. Mr. Stoner now assists the Investor Relations Department of Sara Hallitex Corporation." "I resigned from Wilmington Capital, LLC back in late 1996. After talking to the company's attorney, I learned that the new management of Wilmington Capital, LLC had not filed the 1997 or 1998 new Board of Directors notice. Consequently, my name still appears as the company contact according to the State of Nevada. Again, my resignation became effective on the books and records of the corporation on August 1996." S)Isn't the "new management of Wilmington" the very same Holmes Stoner Jr. that works for SHAL as an IR flack? T)Is it really conceivable that you would not remind a person you must come into contact with as frequently as Mr. Stoner, to update the LEGAL records of Wilmington? Remember Mr. Krause, the State of Nevada documents are the LEGAL records, your own books could easily be doctored and postdated. "Back when shareholders were asking for more information on Sara Hallitex Corporation, I asked Mr. Stoner of Wilmington Group of Companies to prepare a report giving the shareholders some facts on the Company. After supplying Mr. Stoner with pertinent information, he then issued what is now the Famous FutureVest Stock Report from Financial Stock Marketing. This report was named FutureVest after a concept that had been worked on at the time with FutureVest America, LLC. Again, I am not the owner of FutureVest Stock Report of Financial Stock Marketing, Inc., but was the original incorporator of these companies through my original position with Wilmington Capital, LLC (Nevada Registered Agent.)" U)Was it ever disclosed in this "Stock Report" that the issuer was, at the very least, a Related Party? V)What is the relationship between "Financial Stock Marketing" and Future Vest America LLC, which shares an address with the other Wilmington Companies, and filed to sell a large block of SHAL stock in late summer 1998? W)Was this stock payment for the report? X)If it was payment was this disclosed? Y)If it was not payment, how did Future Vest America LLC, a related party, obtain the stock? "Why have you used existing shell companies to do your SaraIPO deals? And are you planning to continue this method in the future?" "Sara Hallitex Corporation has been successful in this arena and will continue to transact some of its SaraIPO's using this technique." Z) Mr. Krause, why do you continue to claim that these shell deals are IPO's? They clearly are not IPO's. An IPO, by definition is the very first (Initial) offering of stock to the public. If a vehicle is already public, as is the case in a shell, then you are not performing IPOs, you are performing reverse mergers. Statements calling them IPOs are clearly misleading. Mr. Krause, your comparison of the SHAL shell reverse mergers to Goldman Sachs is a non-sequiter at best, and misleading at worst. SHAL and its SHELL progeny trade on the relatively unregulated OTCBB, an exchange with no reporting or asset qualification standards. Goldman Sachs (GS), on the other hand, trades on the NYSE, the most stringent of all the exchanges. AA)How successful have the SHAL shell reverse merger's really been? BB)Do any of them trade above their "first day" under the new ticker symbol and post-reverse-split prices? CC)Concerning the shells, why have you not mentioned that you controlled at least one of the shells that you have reversed-merged one of your SHAL progeny into, specifically, Ice Age (OTCBB ICAG, now called Janus JNUS), which the State of Nevada records clearly show you as controlling? DD)If this is the case, how much free trading stock did you own in this shell before the reverse-split, name-change, false "IPO"? "THEY ARE ABLE TO PROFIT FROM OUR SHAREHOLDERS' LOSSES AND THAT IS A CRIME." Mr. Krause, this is another of your spurious claims, short-selling is not illegal, therefore not a crime. Truthseeker

To: MKTsavvy who wrote (822)	6/16/1999 11:14:00 PM
From: StockDung	Read Replies (1) \| Respond to of 941

"The company is in the process of filing its audited reports, 10ks and 1998 10Qs with the SEC in anticipation of qualifying for listing on NASDAQ." Make sure you read everything. The last part is my favorite. Truthseeker Sara Hallitex Offers New Concept in Venture Capital Market Harry Manning Fast growth companies have proliferated in the last five years as the market for initial public offerings boomed. But with downward pressure on investor sediment mounting on all fronts, the market for IPOs has become anything but conductive to launching potentially promising enterprises. Numerous IPOs are being rescheduled or canceled altogether, while many others are getting done only after deals have been sweetened to attract investors. Some market pros think start-ups may be facing the worst IPO market in years. Of course, start-ups that succeed in attracting an initial infusion of equity funding still face formidable hurtles. Start-ups are competing against each other for scarce management and technical talent, and even office space at a time when products must be developed faster, and young companies must mature sooner. The fact is that companies backed by venture capital remain the fastest growing concerns, notes Garrett Krause, president and CEO of Sara Hallitex Corp. (OTC BB: SHAL), a venture capital firm headquartered in Marina Del Rey, Calif. Examples include such names as GT Interactive Software Corp., a New York consumer-software producer, and Netscape, a Mountain View, Calif. Internet-software concern. Netscape's IPO immediately gave that company's stock an outstanding total valuation of $1.1 billion - a figure that has since soared to about $5 billion. To make it easier for small investors to participate in ground-floor opportunities - as well as to enhance the success of new ventures - Krause devised an innovative concept that combines the finest points of an investment bank with those of a venture capital firm. Today this venture banking concept is embodied in Sara Hallitex Corp. and a program called Sara-IPO-Dividend (SIPOD). Here's how it works: Sara Hallitex acquires an equity interest in privately-held concerns that appear to hold substantial promise. Sara nurtures them with financing, management oversight and other services until key executives are in place and it's ready to be spun out under the SIPOD programs as a newly-traded NASDAQ public company. From the investor's perspective, there are several advantages to Sara's approach to taking new companies public. First, it may expedite the time in which a privately-held concern can execute an IPO. This can help the young organization avoid the many pitfalls associated with often misleading "shell deals", which have triggered a crackdown by the Securities and Exchange Commission. Secondly, investors reap benefits not only from Sara's increasing share value, but also from the dividends received from the companies spun-out through SIPOD. (Remember, Sara Hallitex retains a significant stake in these ventures.) Once registered, the dividends received by investors in each company become free-trading, with a monetary value determined by that company's merit and corresponding business opportunity. Shareholders can either continue to support the company by holding their stock, or they may sell , as with any other tradable stock on the market. To raise additional capital for the new enterprise, options will be made available to Sara shareholders at a preferential rate. Sara has one publicly-traded spin-off to its credit - Janus International, Inc. (OTC BB: JNUS). Through several subsidiaries, Janus is involved in hardwood timber harvesting in Brazil and a variety of other unrelated mining projects in South America and the U.S. Additionally, the company has entered into a letter of intent to acquire a seafood fishing enterprise in the Baja Peninsula. Janus is based in Marina Del Rey, and is in the process of assembling a management team. In the interim, Krause will act as president. Janus was spun off in early July at $2 a share and had climbed to about $3 a share about a month later. Sara is a 40% owner. "Janus is proof that there is substance behind the concept and that it works," Krause said. Among the other businesses in which Sara holds a sizable stake are Trillium Communications, a Los Angeles-based entertainment company; ProTerra Inc., an international environmental technology company, and X-SELNET Technology Group, Inc., an Internet player. These are still private, and there are numerous other potential SIPOD acquisitions pending. Krause believes all three have the potential to generate significant returns for investors - especially X-SELNET, a company exploring technology-related projects tied to the World Wide Web; already the Web has been widely dubbed the "industry of the future". One of its current endeavors is Net Labs, a new division to complement X-SELNET's current website development division. Net Labs will become a research laboratory for the incubation and development of electronic commercial projects. Sara Hallitex recently raised $1 million through a private offering and is likely to do a second offering in the near-term. The company is in the process of filing its audited reports, 10ks and 1998 10Qs with the SEC in anticipation of qualifying for listing on NASDAQ. [Harry Manning is a widely-published, New York-based business and financial writer.] Investor's Chronicle Home Page ===================================== Investor's Chronicle New Home Page SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 16094 March 22, 1999 SECURITIES AND EXCHANGE COMMISSION v. EDWARD B. TAXIN and THE TAXIN NETWORK, INC., 98 Civ. 7661 (KMW) (S.D.N.Y.) he Commission announced that a final consent judgment has been entered in the Commission's action against Edward B. Taxin and the Taxin Network. On March 11, 1999, Judge Kimba M. Wood permanently enjoined Taxin and his company from further violations of Section 17(b) of the Securities Act of 1933, and ordered them to pay $30,000 in penalties. The Commission's action, commenced on October 27, 1998, was part of a large-scale effort by the Commission to address unlawful touting of securities over the Internet. The Commission alleged that Taxin received compensation for touting certain microcap stocks on a radio program, the Financial Hour, and in an Internet newsletter, the Investor's Chronicle, without properly disclosing the receipt of such compensation, in violation of Section 17(b) of the Securities Act. Taxin and the Taxin Network consented to the entry of the final judgment without admitting or denying the allegations in the Complaint. For further information, see Litigation Release No. 15955. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. LITIGATION RELEASE NO. 15955 / October 27, 1998 SECURITIES AND EXCHANGE COMMISSION v. EDWARD B. TAXIN and THE TAXIN NETWORK, 98 Civ. 7661 ( KMW) (S.D.N.Y.) The Commission filed suit in federal court in New York yesterday against the host of a radio infomercial show, Ed Taxin. Taxin also publishes an investment newsletter on his website, Taxin.com. Taxin's show, "The Financial Hour," airs on six stations across the country, including New York, and is broadcast from Taxin's Shrewsbury, New Jersey residence. The Commission charged Taxin and the Taxin Network with promoting stocks on the Financial Hour and his newsletter, Investors Chronicle, without disclosing that he is compensated for the touts, as follows. The Taxin Network (owned by Taxin's wife, Joanne Pagano) has agreements with numerous small-cap companies, including Envoy Communications Group, Inc., PTC Group, Inc., Sungold Gaming International Inc., Telepad Corp., VentureTech, Inc., and Wolf Industries, Inc. These companies or their agents have paid the Taxin Network at least $200,000 in cash or stock for promotional services, including exposure on the Financial Hour and in the Investors Chronicle. On the Financial Hour, Taxin introduces a series of guests, including promoters from investor-relations firms and officers of the companies. Taxin joins with his guests in their rosy predictions for the companies they represent, mixing in Wall Street patter to convey the impression of objective financial reporting. Taxin introduces the promoters as Wall Street notables and stock-pickers, disguising their relationship with the companies they represent. The compensation received by the Taxin Network is not adequately disclosed on the radio show or in the newsletter. The only disclosure on the radio show is generally that the guests (or some of the guests) have paid a fee to appear on the show or that Taxin owns shares in some of the companies discussed. Taxin's internet site contained no disclosure at all of the compensation until Taxin was contacted by the Commission's staff; the new disclosure is not adequate. The Commission, seeking a permanent injunction and penalties, alleges that Taxin and the Taxin Network are in violation of Section 17(b) of the Securities Act of 1933, which requires that all such compensation, and its amount, be fully disclosed.