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

To: E. Charters who wrote (9996)	8/31/1998 7:07:00 PM
From: kybelle	Read Replies (2) \| Respond to of 11684

Outline on how MTEI shareholders were taken by masters of scam.... Saturday, 29 Aug 1998 , 7:54 AM EDT Post # of 3377 Okay. . . here's the real deal. (By the way, I've been gone a few days and you people have been doing EXCELLENT work. When I suggested you come together on these issues I never expected that you'd perform the way you have. Kudos to Winston, Twinjet, Linda and ALL the rest of you) Anyway, on to the story. . . First, Jack IS an oilman, but he's a special breed of flim-flam oilman. The con works this way: 1) You somehow acquire a piece of land that has at least a remote chance of producing some fossil fuels. This may be depleted tapped out leases or unproven coal reserves or something like it. 2) You set out to raise funds to exploit these properties (often with a fairy tale about new extraction methods, etc.) Then you send money out the back door to the pipe and rigging and testing and oil tool companies as fast as it comes in through the front. The secret is that these support companies are charging through the nose for work they're probably not even doing and paying massive kickbacks to the cons, sometimes as high as 90%. 3) You futz around, in no particular hurry to actually drill or mine or whatever because you're getting a nice salary PLUS the kickbacks from the support companies. . . and the money is still flowing in from investors. 4) When the investors finally get antsy enough and you've pigged out on their funds to the maximum amount you think is prudent, you actually do drill a hole (or at least say you did) and, "Darn! What rotten luck!" you say, "We hit a dry hole. Better luck next time investors." And you go on to your next deal. What Jack did was an attempt to play a more sophisticated version of this game. . . and he got skinned himself in the process. Jack and John Christensen both thought the other was the perfect mark. Jack knew about the Pump and Dump, but was promised by Christensen that at least $10MM of the proceeds would go to Jack's "flim-flam oilman" scheme. For Christensen, the WVA properties were the perfect vehicle to do his "wildly overvalue the assets you don't even own" scheme for, what, about the 7th time with this same company? And this time he wouldn't even be on the front lines to take the heat. Jack would be the fall guy. So con met con and fell in love. . . until Jack found out that JC had NO INTENTION of sharing the proceeds of the P & D with Jack for his flim-flam oilman shenanigans. The skinner became the skinee. Ironic ain't it? Here's why I come to this conclusion: 1) Jack's has not ever been in the energy prospecting business. Aside from roustabout work in his youth, his business was in the tool supply business. He was one of those guys that GAVE the kickbacks to the flim-flammers. But he saw where the real money was made. He wanted to become a kickback TAKER. 2) Jack didn't protest the obscene valuations on the properties because he trusted JC to fork over the lion's share of the proceeds then play his "Uh Oh. . . dry hole" game. After all, where ELSE was he going to get the funds to do the extraction in WVA? Investor money didn't flow to the company to fund development. It went the the JC gang. Ask yourself why Jack was so eager to be a shill for the P&D if he didn't expect that money would eventually flow to him and his cronies like Quentin Moore. 3) When Jack finally figured out JC wasn't about to part with the $10MM did he cry foul? Nope, he KEPT up the phoney valuation and retained the "financier with empty resume," Scott Paulsen, to find him $10MM, or even $20MM to play out his gag. But Paulsen wanted a $10,000 retainer and MTEI didn't have it to give. They'd squandered all the company funds (about $200K) because they were counting on money from JC. At least Jack didn't get conned by Paulsen too. Paulsen has a history of taking advance fees then doing nothing at all. (He's also in hot water for taking investor's money for some cockamamie bond/derivitive scheme. What's more, he's selling these dubious and unregistered "investment products" behind the back of the brokerage he works for. Naughty, naughty, naughty.) 4) When all the stock nonsense came to light, Jack headed for the hills. . . or rather he headed for IBIS Energy with the one thing he could salvage, the Austin Chalk properties. Why? Because without some piece of land to work the con with, he was totally out of action. And so we come to the present. Jack has IBIS, undoubtedly with the Austin Chalk, and he is, I'm sure, out looking for suckers to fork over big bucks to drill a hole that doesn't have a snowball's chance of producing enough energy to fuel a zippo. Kind people. . . there are big players in this business, Exxon, Amoco, Texaco, etc. with literally BILLIONS of dollars in super-sophisticated equipment to do everything from satellite recon to seismic testing to find economically extractable energy sources. If you think some slippery, silver-tongued Texas yahoo has "The Gift" of finding what the big oil guys can't. . .well, I've got news for you. . . there ain't no tooth fairy neither. Two time tested con games came together in this deal. The JC team with Lindsay, Polland, Gort and Guttman knocked the tar out of Jack and family. It would be funny if it hadn't cost so many innocent people their hard-earned savings. But this is all prologue. The real news here is the way you're coming together to expose these twin scams. I'm glad to hear Marc Tow appears to be on your side and is willing to put his money where his mouth is to help salvage something of this godaweful mess. If this ever is produced as a book or a film, you'll have done more to stamp out this kind of sleaze than the SEC could do in a million years. Congrats to you all. Your friend, Wendell Jr. This was posted on Raging Bull....they seem to have quite a bit of info and going to try taking action against those responsible for this fiasco.....

To: E. Charters who wrote (9996)	8/31/1998 7:20:00 PM
From: Janice Shell	Read Replies (1) \| Respond to of 11684

Should the Y2K scheme fail, one can always engage in massive deforestation and manufacture enough kitty litter to corner the market. No one really has any idea what is or isn't on the WV properties. Jack never actually saw them. Maybe he had some maps, but even that's not certain...

To: E. Charters who wrote (9996)	8/31/1998 7:21:00 PM
From: Janice Shell	Read Replies (1) \| Respond to of 11684

Kudos to Wendell for an excellent post. I agree with almost everything. BUT he leaves out Jack's partnership with his son and nephew in National Capital, the little family broker-dealerage. And the question of the loan Jack took out (and didn't repay) with the guys in Jersey, the well-known offshore tax haven. Jack didn't know what was going down from the start? Hah. As I've said before, he succeeded in scamming not only the investors, but also the pros. I've heard that CK, just before he dumped three or four million shares in June, said that he felt he'd been "doublecrossed" by Jack, but wouldn't explain...