sold shares at 1/1000 of a cent
Why not bookmark this page? THURSDAY SEPTEMBER 9, 1999
STARNET is sinking very fast:
Shares down 83%
in two months!
The situation is out of control!
Further serious drop expected this week with the filing of the major lawsuit.
This week should be Starnet's black week. We are expecting to get some very interesting court documents any moment! Starnet is in big trouble, stay tuned for the surprises, we will be the first to publish them!
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Mark Dohlen
has resigned!
Abrupt Resignation By Starnet's CEO Mark Dohlen from company that sold shares at 1/1000 of a cent
As CEO Mark Dohlen takes stock of his current problems with Starnet Communications International, and as Vancouver Police Department spokeswoman Anne Drennan revealed that the investigation into Starnet "has been a very lengthy and costly investigation, one of the lengthiest in the last few years," Gambling Magazine has details of another "stock," an eight-month-old Internet startup with some decidedly unusual features.
From Starnet to Healthnet
This was another Dohlen stock promotion by the name of Healthnet International, set up to target consumers wanting to buy health products on the Internet. Healthnet is at this particular moment "cybersquatting at least 26-health related domain names, ranging from www.stopaids.com, www.superantioxidants.com and www.supplementsformen.com to www.stopcellulite.com, www.attackcancer.com and www.drprescriptions.com."
Healthnet is about to roll out its first health site later this month, named
www.medicinecabinet.net - it will sell various herbal products, supplements and vitamins. Something very fishy has been going on, enough to make potential customers think seriously about raiding the medicine cabinet for themselves, to see just what's in it for them.
Dohlen abruptly resigns
On the very same day (August 20, 1999) that the Vancouver offices of Starnet were raided by officers and directors of the Co-ordinated Law Enforcement Unit, officers from the RMCP, VPD, Ontario Provincial Police, United States Customs Service and the U.S. Internal Revenue Service, after an 18-month stake-out, Mark Dohlen resigned as director from Healthnet. No reason is given for the sudden resignation in Healthnet's latest regulatory filing notes.
Starnet and Healthnet similarities.
It was not long before investigative journalists began to uncover the fishy details:
both companies base themselves in Vancouver
both featured Mark Dohlen as a major player
both shared the same initial financial backer
both companies placed millions of shares of seed stock offshore
both companies did not fully disclose the beneficial owners.
It now seems that for eight months Dohlen and his associates worked round the clock at Healthnet. The company was incorporated in Colorado last January.
Shares issued for almost zero value
Six million shares were doled out to the company's four founding directors at a thousandth of a cent each. (The shares could go up in value by a factor of 2,000, and still cost just a couple of cents each, cheap enough to lure investors by the million?)
Just who are the "four founding directors?"
1.Healthnet president and CEO Grant Johnson, 39, who paid $US 2,750 for 2.75 million shares, held through a family trust. (Mr. Johnson had served as Starnet's
vice-president of corporate development 1977-99)
2.Mark Dohlen, the second largest shareholder in Healthnet, paid $2,000 for two million shares through Wentworth Bancor Trust
3.Healthnet secretary Douglas Bolen, business partner of Mr. Dohlen, and director and chief executive of Starnet from May 1966, with 750,000 shares bought for $7,500 through another family trust
4.Chairman S. Ross Johnson, 70, who holds 500,000 shares.
Mr. Bolen's financial achievements include a stint in personal bankruptcy, before a judicial discharge in 1994.
Healthnet then quickly sold another 4.5 million shares on Feb. 25, the shares once again being sold at the amazing price of a thousandth of a cent each and their destination in a Rule 504 private placement was nine offshore accounts in five offshore jurisdictions.
Who were the buyers?
The buyers of the shares included Caribbean postbox accounts - Geneva Overseas Holdings in St. John's, Antigua, Richland Acceptance and Sharp Flint & Blunt, both sharing the same postbox in Roadtown, British Virgin Islands, and Altmar, which "operates out of another Roadtown mail drop." There were also European accounts which include Orienstar Finance, Fonds Mondial d'Investissement and La Salle Investments, all of Geneva, Switzerland, and Eur-Am of The Netherlands - the whole bizarre collection looking like a road map drawn up by Long John Silver on his Treasure Island.
While each of these nine accounts bought 500,000 shares each, Healthnet only received $US 12,000 for a lot of paper.
Angel-investor lender shows up
Just a few months later a big backer showed up on the scene with $1 million in debt
financing. DGD Wealth Management provided two $500,000 unsecured loans with a minimal rate of interest.
Judging by the way things are going right now for Mark Dohlen, he might soon wish it was STARNET he had resigned from and not Healthnet.
More detail is provided by www.canada-stockwatch.com as follows:
"This is the same private company (DGD Wealth Management) that helped Starnet get off the ground a few years earlier. RCMP search warrant documents note that according to U.S. Securities and Exchange Commission filings, Starnet received loans of $208,000 in January of 1997 from Celestine Fund Management, secured by all of Starnet's assets. . .On June 10, 1997, Celestine sold the note to DGD Wealth Management, a Richmond-based holding company of which Mr. Gould is a director. . .In their pre-raid investigation, the Police did a search of Barbados corporate records, which showed that Starnet Communications International was incorporated on Nov. 21, 1996 with Mr. Gould, Mr. Dohlen, John Carley, Jason Bolduc and Paul Giles as directors. . ."
With such an intricately woven web, the Vancouver Police Department will not have the easiest task unravelling the evidence. They may soon throw some light on these and other extraordinary developments, as well as explaining why Mark Dohlen chose to resign from Healthnet International with such alacrity.
Further interesting reading for Gambling Magazine Readers at this recommended Web
site: canada-stockwatch.com
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Starnet is in much bigger trouble than they want you to believe! We are convinced the company is finished, it's only a matter of time.
You can read the POLICE
documents here: 68 pages!
Gambling Magazine publishes the Police Search Warrant details used to raid Starnet's Vancouver offices.
Fifty officers from British Columbia's Coordinated Law Enforcement Unit are even now sifting through the material. "The inventory is massive"
Peter Thiessen of the Royal Canadian Mounted Police: "More is yet to come. This is just the tip of the iceberg." Charges and arrests - not 'if' but 'when'
To read about Starnet's problems, Readers need only refer to the section on Starnet's problems below, which has in-depth coverage and all the up-to-date news.
SPECIAL COVERAGE OF
STARNET'S HUGE PROBLEMS
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TODAY'S HEADLINES
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On Tuesday, the chief financial officer of Mirage Resorts, Dan Lee, announced that he is quitting his post after seven years to pursue entrepreneurial opportunities. There are rumors, however, that Lee left after having fights with the CEO of Mirage Resorts, Steve Wynn, over lavish spending on day-to-day expenses.
Steve Wynn most recently spent millions of dollars to buy pieces of valuable artwork for The Bellagio Resort in Las Vegas and Lee was rumored to be upset about the spending at a time when the stock price of Mirage Resorts has been falling rapidly. Mirage Resorts is the company that owns the Mirage, Treasure Island, and Bellagio resorts in Las Vegas as well as resorts and casinos located in other parts of the country. [Read The Full Article...]
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Hits Jackpot
More than luck pays off in record $3 billion Las Vegas finance deal
Banc of America Securities of San Francisco is rolling the dice on the largest financing package in gambling industry history - a $3 billion debt offering for Las Vegas-based Park Place Entertainment.
The deal will fund the purchase of the Caesar's World casino assets from Starwood Hotels and Resorts Worldwide Inc., and will be syndicated by Banc of America to a group of large banks and financial institutions. The senior debt instruments are relatively secure, low-interest loans, and their syndication is a business dominated by the corporate finance divisions of the largest bankholding companies. [Read The Full Article...]
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Stock Tumbles
Sun International Hotels Ltd. (NYSE:SIH) said Tuesday it will miss Wall Street's third quarter earnings targets by at least 40 percent, posting profits in the range of $0.20 to $0.30 a share before one-time costs.
Analysts had pegged Sun at $0.50 a share for the quarter, according to research firm First Call/Thomson Financial. [Read The Full Article...]
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On Friday, a former mayor of Henderson was arrested by police at the Mandalay Bay resort located on the Las Vegas Strip for groping a woman sexually and then for assaulting a police officer while police were trying to restrain him after the woman reported the attacks to the police.
Henderson is a small town on the outskirts of Las Vegas. Former Henderson mayor Robert Groesbeck was arrested on drug, battery and sex charges as a result of the incident. He was arrested at 11 p.m. at the Mandalay Bay House of Blues Foundation room and charged with being under the influence of a controlled substance, battery on a police officer and open and gross lewdness. [Read The Full Article...]
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Her house blows up - and she walks away unhurt. That's luck!
Forget about the "Miracle on 34th Street." There's been an even bigger miracle on Latham Drive!
Gloria Burelle was lying in bed when a massive explosion blew up her house - reducing it, literally, to a pile of rubble. Incredibly, she survived - with barely a scratch.
"I've got to be the luckiest woman in the world," she said. [Read The Full Article...]
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Sells -Again- For Record Price
It ain't over 'til it's over. Such was the case with the recent "sale" of the famous jersey worn by Lou Gehrig when he made his "luckiest man on the face of the earth" farewell speech in Yankee Stadium on July 4, 1939.
Just a few weeks ago, Leland's announced it had sold the jersey for $452,000 - a record-setting price. After considerable effort and a pending lawsuit to boot, Leland's has been unable to collect the funds. In response, the jersey's owner gave Leland's and the reluctant "buyer" a farewell speech of his own and began fielding offers from other interested parties. The change in game plan paid-off. [Read The Full Article...]
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Ex-hostess, casino in legal battle over Asian debt
Laura Choi once earned $100,000 a year for coaxing high-rolling Asian gamblers to drop that much or more in a single night at high-stakes baccarat and blackjack tables in Las Vegas.
But the toughest part of her job as a casino hostess was flying to Asia to collect debts some of the high rollers left behind. Now, at 44, she is involved in a bitter legal battle with her former employer, casino giant Mirage Resorts Inc., that highlights how hard it can be for casinos to collect debts from foreign gamblers who leave the country without paying. [Read The Full Article...]
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Legal history may be made in a case in which a financial information company, Hemmington Scott, has sued the personal finance Internet company, Interactive Investor International (III), for using its information without consent.
The disputed data, which covers financial records of quoted companies, was removed from III's website before the writ was served on Monday night. [Read The Full Article...]
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Gambling sites face off over domain name
Online betting company, SportOdds (www.sportodds.com.au) has issued rival company, International Allsports (IAS) with a cease and desist notice, in an attempt to stop it using the domain name sportodds.com.
According to SportOdds, IAS registered the address sportodds.com in 1998, and has been using the address to drive traffic to point traffic to its site at betthe.net. [Read The Full Article...]
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Gambling in prison?
A former Colts quarterback who had it all, faces yet another criminal trial related to compulsive gambling.
Art Schlichter, just five days out of prison, pled not guilty in Anderson Tuesday to charges he gambled from prison. Schlichter's gambling cost him his marriage, career and freedom to see his children. He says he's paid a high price, but says gambling is part of a larger struggle: "I don't think I'll ever beat it. I hope I've arrested it. Its a long battle. Jail's a very difficult place to be in recovery. Not a whole lotta help there." [Read The Full Article...]
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As you surf from site to site or enter your favorite online casino have you ever wondered how the Internet began? The Internet began in the 1960s by the United States Department of Defense, or DoD, as a computer network was created to allow communication to continue following a major disaster like a nuclear war. ARPANET was created linking scientific and academic researchers throughout the United States and was the predecessor to the Internet we all use and know today. [Read The Full Article...]
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It seems such a simple question: Where does an e-commerce transaction "take place"? Every day, tens – perhaps hundreds – of thousands of Americans exchange money over the Internet for goods, services, information and entertainment. Yet no one can say exactly where those transactions occur. From the consumer's perspective, it may not matter much. But from a legal and regulatory perspective, it's a question that urgently requires a definitive answer. [Read The Full Article...]
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Zimbabwe is in the grip of panic over stories of rich, unscrupulous men who are reported to have been forcing young women to breastfeed frogs.
The country has been abuzz with bizarre reports of men - said to be members of Satanist cults or businessmen - tricking women into their luxury cars and then forcing them, often at gunpoint, to suckle bullfrogs.
The women are said to be given hefty payments in return, but are told they will soon die and the money is to be used for their funerals. [Read The Full Article...]
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GREAT NEWS!
Two superb online magazines will be launched in September and they will provide a very extensive coverage of the industry:
CasinoMagazine.com & GamingMagazine.com
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LOOK OUT FOR THIS!
It means the article has been wired today by our gambling editor - right from the heart of Las Vegas, just as it says: DIRECT FROM LAS VEGAS! All the news you'll get is right up-to-the-minute, direct from the center of Las Vegas!
Editor: Editor@GamblingMagazine.com
Publisher: Publisher@GamblingMagazine.com
Telephone: U.S.A. (212) 208-4414
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