Death Threats at GLKCE majority stakeholder: "Of Stocks and Socks"
New 'Owner' Of Global Links Emerges Amidst Death Threats
FRIDAY , MARCH 18, 2005 04:58 AM
Mar 18, 2005 (financialwire.net via COMTEX) --March 18, 2005 (FinancialWire) The Robert Simpson who U.S. Senator Robert Bennett (R-Utah), Chief Deputy Whip for Senate Republicans, referenced in a recent Senate committee hearing during testimony by U.S. Securities and Exchange Commission Chair William Donaldson as having filed a 13D claiming ownership of 100% of the shares outstanding for Global Links Corp. (OTCBB: GLKCE), has surfaced.
Although the shares were purchased for his personal account, Simpson is also CEO of Zann Corp. (OTCBB: ZANC). As it turns out, Simpson, who has now been subjected to death threats, not only doesn't have physical certificates in his sock drawer, he is in a fight with his broker, Oppenheimer Holdings (NYSE: OPY) to get delivery on them at all. And while Simpson's actions may still serve as a poster event for StockGate and the illegal naked short sales fiasco the term represents, Global Links Corp. is hardly a poster for anything. Its assets are highlighted by a proposed real estate purchase from another public company, Diversified Financial Resources, whose share price is so miniscule it shows up as $0.00 on Yahoo's (NASDAQ: YHOO) Finance site and elsewhere.
Diversified Financial's (OTCBB: DFLR) trading volume Thursday was the fourth highest on the over the counter bulletin board, but of course in dollar terms, 102.39 million shares priced at $0.000 are only . well, you compute it.
It also turns out that the filing was in error, as Simpson believes he has bought 110% of the outstanding shares of Global Links. The filing is at: sec.gov
Actually, 125% of the known outstanding shares are now claimed in filings with the U.S. Securities and Exchange Commission. On March 9, Paul Floto of Dallas said he had acquired 180,000 shares, "constituting a total of 15.45 percent of the issued and outstanding common stock of the Issuer, in the open market." He paid $6,463.95 for them. Simpson's 1,158,209 shares were purchased in February for $5,205.
Like Simpson, Floto's purpose in purchasing another 15% of a company that was already owned 110% by another party, and which continues to trade millions of shares, including 918,540 on Thursday alone, was to make a point, and said he, too, may purchase 100% of the outstanding shares.
Said Floto in his filing:
"The Reporting Person acquired his interest in the Issuer primarily to point out the complete failure of government and exchange regulatory bodies to maintain honest, orderly markets, and the corrupt actions of market makers and securities clearing bodies, which facilitate the sale of unissued, unregistered, counterfeit, or simply nonexistent securities.
"On February 3, 2005 a single investor reportedly purchased all the common shares issued by the company, plus 145 additional unissued shares.
"Subsequent to that date, over 95 million shares, or over 82 times the total shares issued, were reportedly traded, none of which were reportedly sold by the 100% owner of the common stock.
"On March 4 and 7, I purchased a total of 180,000 shares, resulting in my obtaining 15.54% ownership of a stock reportedly already 100% owned by another investor. I assume that there may be additional investors who may also claim ownership of common shares of this company.
"I have requested that certificates be issued to me representing my full 15.54% ownership interest, to protect my right to vote and enforce any other claims that may accrue to an actual documented owner.
"I understand that Reg. SHO was supposed to detect and prevent the fabrication of millions of nonexistent shares. It would appear that my securities purchases prove that Reg. SHO has been systematically violated by market-making brokers and securities-clearing firms.
"From time to time I may continue to purchase additional securities on the open market to increase my ownership interest to up to 100% of the company's common stock to give me an ownership interest equal to that of the current 100% owner," Floto concluded in his SEC filing.
Simpson told FinancialWire that Oppenheimer has told him, after it sold him the shares, that it can not find shares to deliver to him. He said he has been discussing this with his attorney and plans soon to take action.
Simpson is also considering court action in Nevada, the domicile of Global Links, to prevent the issuance by the company, whose executives he does not know nor seems to be interested in knowing, of any additional shares.
He may also seek to become a director.
Simpson is concerned that there may be a form of preferred shares that could prevent him from taking control of the company, so is exploring all his options.
Simpson also said he received a call from a national reporter with the Dow Jones (NYSE: DJ) News Service, who he said accused him of "insider trading," and trying to flip his shares, and said she did not seem to know that his filing of the 13D prevents him from selling the shares for a year.
That is not the least of his worries, however. A poster on Raging Bull with the monicker igroup), in post 27429 under the Zann Corp.'s message board, stated, "I would'nt be surprised if someone put bullet in the back of his head .." The message has been turned over to the Federal Bureau of Investigation.
Also turned over to the FBI was a direct email Simpson received from jgtc01@aol.com that stated just as ominously, "I FOUND YOU JER-S YOU ARE IN A HOTEL ROOM AND I WILL SHUT YOU DOWN WHAT YOU ARE DOING IN ILLEGAL GET READY TO BE ON THE NEWS YOU JER-S." Executives at Time Warner (NYSE: TWX), which owns AOL Online, have not responded to inquiries from FinancialWire as to the legitimacy of the email address or the identity of the emailer.
Finally, there is the matter of Global Links itself.
The filing that attracted Simpson's, and later Floto's attention, stated: "Effective February 1, 2005, the Registrant implemented a one for 350 reverse split of its authorized, issued and outstanding shares of common stock. The number of authorized and outstanding shares of the Registrant's common stock has been reduced in accordance with the one for 350 split ratio to 5,428, 571 and 1,158,064, respectively, following the February 1, 2005 reverse split."
Another filing, however, on January 3, described a stock incentive plan for employees, non-employee directors and consultants.
It called for the issuance of 500,000,000 options to purchase common stock, and 100,000,000 shares of common stock to be registered.
There may be yet another shoe left to drop, but Simpson isn't worried. He said his attorneys have assured him that the company can not now issue more than 5 million shares following his filing of the 13D, and he expects to have other actions in place to prevent even that.
A video of the exchange between Bennett and Donaldson is at Investrend Information at investrendinformation.com
Bennett questioned Donaldson in his appearance before the US Senate Committee on Banking, Housing, and Urban Affairs. The Senator chairs the committee's Subcommittee on Financial Institutions, and serves on the Subcommittee on Securities and Investment. He also serves on the Senate Small Business Committee and is Vice Chair of the Joint Economic Committee.
"This article in a national publication shows that people are still selling short," Bennett told Donaldson. "Regulation SHO is clearly not working."
He told the SEC Chair that short sales under Regulation SHO are not settled in the 13 days allowed because one broker passes off to another, and so on," inferring that this process can go on indefinitely.
Donaldson said that his staff would be glad to meet with Bennett's staff to describe what the Commission is doing to resolve these matters under Regulation SHO. The SEC Chief of Market Regulation, Annette Nazareth, in a recent interview with Floyd Norris of the New York Times (NYSE: NYT), dismissed complaints about naked short selling as "people who want their stock to go up."
With conflicting 13D filings for shares that apparently exceed the issued and outstanding for Global Links, perhaps a seat Senator Bennett's office when that discussion is held should be put on EBay (NASDAQ: EBAY)?
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