To: mmmary who wrote (80343 ) 9/19/2002 1:15:18 PM From: StockDung Respond to of 122087 Alan Wolfson, lol->September 13, 2002 Stocklemon Reports On Matrix Energy Services (OTC: MXES) Outstanding Shares- 41.7 million Market Capitalization- $118,000,000 Current Assets-$10,582 Working Capital Deficit- $1,395,000 9 Month Oil Revenue- $71,491 All Figures from the 7/10/02 10Q A Stock Promotion Fairy Tale……. Once upon a time there was a tiny little exploration company named Power Exploration Inc. The company was trying to strike oil like Jed Clampet but it never seemed to happen. Power Exploration was publicly traded for three years with little or no activity in the stock price. But soon that would all change.matrixenergycorp.com According to the Company’s SEC filings, (7/10/02 10Q) On May 29, 2002, the Board of Directors of Power Exploration, Inc. (OTCBB: "PWEX") voted to change the name of the company to Matrix Energy Services Corporation (OTCBB: "MXES") in light of the recent re-organization of the Company. At the same meeting, the Board voted to implement the Corporation's 2002 Stock Option Plan and the registration of 3,000,000 shares of the Company's common stock in an S-8 registration statement to be used as payment to consultants assisting with future acquisitions It seemed as if the company found something that was better than oil - S-8 stock. It seems as if a name change and 3 million shares of S8 certainly made a difference. Just look at the chart of historical prices on Matrix Energy 20-Jun-02 3.55 3.55 3.55 3.55 300 1.18 19-Jun-02 3.45 3.45 3.45 3.45 100 1.15 18-Jun-02 3.45 3.45 3.45 3.45 100 1.15 13-Jun-02 2.17 2.25 2.17 2.25 1,100 0.75 6-Jun-02 1.01 1.04 1.01 1.01 900 0.34 2-May-02 0.17 0.17 0.17 0.17 100 0.06 8-Apr-02 0.16 0.16 0.16 0.16 100 0.05 Let’s not forget that it is against SEC regulation for S-8 stock to be used for market making or stock promotion activities.sec.gov Who Received The S-8 Consultant Stock? Reference the 7/9/02 10QSB “On June 7, 2002 the Company entered into a Consulting Agreement with Allen Wolfson to provide services in exchange for 600,000 free trading, S-8 registered shares of the Company's common stock valued at $606,000 and granted the consultant options to purchase up to 600,000 shares of the Company's common stock valued at $516,360 using the Black-Scholes method, registered under the S-8 registration statement, at an exercise price of fifty cents ($0.50) per share…" Who is Allen Wolfson? Mr. Wolfson is a notorious stock promoter who has twice been sanctioned by the regulators. It can be read directly in the SEC Website, “The Division charges that from January 1999 through at least March 2000, Allen Z. Wolfson fraudulently inflated the stock prices of BeautyMerchant.com (formerly known as ATR Industries, Inc.), Learner's World, Inc., Rollerball International, Inc., Healthwatch, Inc. and HYTK Industries, Inc. The Division alleges that in connection with these manipulations, Wolfson obtained control of large blocks of shares, caused sham trades to be made to give the appearance of an increasing demand for the shares in the market, paid bribes to six brokers to create demand, and sold into that demand. The six brokers are also being charged today for their roles in the manipulation. The Division contends that the respondents received at least $7 million in illicit profits from these manipulations.” sec.gov That was not the first time Mr. Wolfson has been associated with stock promotion. He was also charged with stock promotion in 1996. Mr. Wolfoson was one of many who was charged in an alleged “kickback” scheme.sec.gov nasdaqnews.com Mr. Wolfson’s Track Record. Stocklemon has identified 9 companies that Mr. Wolfson has served as a consultant for over the past three years. Here is a current list as to where they are currently trading. TSGO $.0042 ELOC $.017 ADOT $.0015 NXIA $.01 GTWY $.0001 AXIA $.09 YPNT $.075 ETTC $.05 MODM $.01 The average price of the above stocks is 2.8 cents. How do you think this will end? Conclusion Stocklemon is under the belief that Matrix Energy is not only a lemon, but also a vehicle that is currently being used for stock promotion. The company has little assets and less of a sense of good judgment as they have associated themselves with a known stock promoter. Stocklemon believes that Matirx has illegally used S-8 consultant stock and will soon become a victim to either their own greed or to the SEC. We wish this was a fairy tale….but unfortunately it is not. Disclaimer: Stocklemon.com does not guarantee in any way that it is providing all of the information that may be available. We recommend that you do your own due diligence before buying or selling any security. At any times the principals of Stocklemon.com might hold a position in any of the securities profiled on the site. Stocklemon.com will not report when a position is initiated or covered. Each investor must make that decision based on his/her judgment of the market.