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Microcap & Penny Stocks : MTEI - Mountain Energy - No BASHING Allowed -- Ignore unavailable to you. Want to Upgrade?

To: Arcane Lore who wrote (11639)	9/20/2001 5:16:45 PM
From: Sly_	Read Replies (2) \| Respond to of 11684

Thanks Arcane, the SEC should disperse that money to the shareholders during the period of Spring / Summer '98. Sly_ ps..... Talk about poetic justice! I wonder if Uselton is the deceased individual?

To: Arcane Lore who wrote (11639)	9/20/2001 5:35:39 PM
From: PatiBob	Respond to of 11684

Wonderful news! It's nice to know those guys weren't able to slip through the cracks again. Thanks!

To: Arcane Lore who wrote (11639)	9/21/2001 9:51:33 AM
From: PatiBob	Read Replies (1) \| Respond to of 11684

Sept. 21, 2001, 12:10AM SEC sues two executives in fraud case Mountain Energy officials accused of pumping up stock's value By MICHAEL DAVIS Copyright 2001 Houston Chronicle The Securities and Exchange Commission sued two executives of a Houston energy firm Thursday, accusing them of securities fraud by pumping up the value of the stock using inflated claims. The commission filed its action against two former chief executive officers of Mountain Energy. In 1998 the small Houston firm claimed to own property in West Virginia with oil and coal reserves estimated to be worth $200 million. In fact, the 30 properties in West Virginia were acquired for payment of back taxes and the men named in the complaint had no idea whether they contained any oil. The company was formed in May 1998 using the shell of another publicly held company named International Casino Cruises. After its formation, press releases containing false and misleading information, according to the SEC, were issued concerning the value of oil and coal reserves the company claimed to possess. "In fact, the defendants had no reasonable basis for these statements," the commission said in a written statement. The SEC described it as a pump and dump scheme. Mountain Energy shares are essentially worthless but continue to trade. The last quote for the shares was .0001 cent per share. Between May and June of 1998, the phony claims in press releases pumped up the stock from around 5 cents per share to a high of $1.75. When the shares topped out, the insiders used an elaborate scheme to sell their shares, or "dump" them. Accused of securities fraud by the commission were John Christensen II, Jack Uselton, both of whom served briefly as chief executive officer of the company, and Mark Tow, a California attorney who initially purchased the West Virginia properties and sold them to Mountain Energy for shares in the company. Christensen, his relatives and family members were some of the largest shareholders in Mountain Energy, holding about 2.5 million shares. Also accused of selling unregistered Mountain Energy shares were two New York-based financial consultants, Joseph Blumenthal and George Guttman. Both have agreed to settle without admitting any wrongdoing and to pay $1.35 million, according the SEC release. Many of the investors in the company, both large and small, learned of the stock on the Internet, and a group of those who felt they had been swindled banded together to spread the word about the company. Many remain close online friends. "What sets this apart is the Internet and how it was initially used to push the stock and how we have been able to use it to get the word out," investor Gregg Polley, who lost $50,000 in Mountain Energy stock, told the Houston Chronicle in November 1998. "This sort of effort would not have been possible in the old days." The commission said it is seeking permanent injunctions against the defendants barring them from any future violations, civil penalties against Christensen, Uselton and Tow, and repayment of profits from Christensen, Blumenthal and Guttman. It also seeks to bar Christensen and Uselton from ever again serving as officers or directors of a publicly held company. The agreement Blumenthal and Guttman struck with the commission requires them to give up their profits from the deal.

To: Arcane Lore who wrote (11639)	9/25/2001 11:15:10 PM
From: Arcane Lore	Read Replies (2) \| Respond to of 11684

A copy of the SEC complaint is available online at: sec.gov Thanks to the RB poster SalemsHex12 for posting this link in ragingbull.lycos.com

To: Arcane Lore who wrote (11639)	11/19/2001 3:29:29 PM
From: Arcane Lore	Read Replies (2) \| Respond to of 11684

From today's SEC Digest: SEC ORDERS PENNY STOCK BARS AGAINST TWO BUSINESS CONSULTANTS On November 16, the Commission ordered that two New York-based business consultants, Joseph M. Blumenthal and George W. Guttman, be barred from participating in future offerings of penny stocks, pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934. The Commission ordered that Blumenthal be permanently barred from such activity and that Guttman be barred with a right to reapply in five years. The respondents consented to the entry of the Orders. The Commission's bars were based upon the recent entry of permanent injunctions against Blumenthal and Guttman for selling unregistered securities in violation of Section 5 of the Securities Act of 1933. In SEC v. Donald John Christensen, II et al., H-01-3203 (S.D. Tex.), the Commission alleged that, during the spring and summer of 1998, Mountain Energy's CEO issued over 10 million shares of the company's stock to Blumenthal, Guttman and a third individual, now deceased, who immediately sold the shares to the public. No registration statement was in effect as to those shares and no exemption from the registration requirements of the securities laws was available for these transactions. Blumenthal and Guttman, in settlement of the Commission's action, consented to the entry of an order of the U.S. District Court enjoining them from future violations and ordering them to pay a total of $1.35 million in disgorgement of illegal profits. Litigation against the remaining defendants in SEC v. Christensen is ongoing. For additional information, see Litigation Release No. 17144 (September 20, 2001). (In the Matter of George W. Guttman, Rel. 34-45069, File No. 3-10641); (In the Matter of Joseph M. Blumenthal, Rel. 34-45070, File No. 3-10642) sec.gov