For Best Original scam in a penny: EXSO
Who could it be?? I was supposed to post this earlier, but I fell asleep!
BC Securities Commission helps SEC cite Ogle, Tabor in broker bribery scheme
BC Securities Commission by Brent Mudry
FOUR CANADIAN BROKERAGES USED
A quartet of former and current Vancouver Stock Exchange players, led
by stock promoter Floyd Leland Ogle, have been charged by the United
States Securities and Exchange Commission for stock manipulation and
broker bribery relating to a U.S. bulletin board promotion, Exsorbet
Industries, based in Arkansas. The SEC claims that Mr. Ogle and
Kelowna-based business partner Donald Tabor rigged Exsorbet,
renamed Consolidated Eco-Systems, from its initial opening, using
accounts at four Canadian brokerages. The alleged co-conspirators
include Chicago stockbrokers Albinas Kurkulis, Andrew Kurkulis and
Paul Kurkulis, former San Diego broker Robin Opp and former
Exsorbet executive vice-president Gary Cotten of Muskogee,
Oklahoma.
"Cotten is currently under federal indictment in New York City for
securities fraud related to the bribery of stockbrokers," states Richard
Walker, director of the SEC's Division of Enforcement. The SEC notes
that Mr. Ogle was convicted in Canada in 1987 for criminal conspiracy
to manipulate the stock of a Canadian company, for possession of
stolen property and for obstruction of justice.
The SEC charged Mr. Ogle, the former president of Exsorbet, Reuben
Peters and his brokerage, Peters Securities LP of Chicago, Exsorbet's
market maker, Mr. Tabor and his Canadian company, Kailey Mining,
with manipulating Exsorbet's stock from 1993 to 1996. The SEC filed
its suit on Monday in U.S. District Court in Chicago. Mr. Walker notes
the investigation, assisted by the British Columbia Securities
Commission, marks the latest action in the SEC's crackdown on
cross-border microcap fraud. The SEC seeks disgorgement of
ill-gotten gains, civil monetary penalties, bans on serving as an officer
or director, and a permanent injunction against the lead defendants.
The commission alleges numerous violations of federal securities laws,
including fraud and registration infractions.
"The commission's complaint alleges that the defendants pushed the
price of Exsorbet stock from $1 (U.S.) to $13 (U.S.) a share by giving
or receiving bribes for participation in the manipulation, controlling the
floating supply of Exsorbet stock, artificially fixing the opening price at
$5 (U.S.) in the first day of trading on February 4, 1994, and
dominating and controlling the secondary market in the stock," states
the SEC. The commission also claims Mr. Ogle and Mr. Tabor engaged
in extensive cross-border stock manipulation, including wash and
matched trades, through four Canadian broker-dealers.
In addition, the court complaint alleges Mr. Ogle and Mr. Cotten issued
a forged U.S. Environmental Protection Agency enforsement letter of
Exsorbet's oil absorbent product, and issued a false press release
claiming the company had $5-million (U.S.) in contracts. Exsorbet's
flagship asset was a peat moss oil absorbent product, purportedly
useful in environmental cleanup and remediation services. Exsorbet
shares began trading on Feb. 4, 1994, on the pink sheets, moved to
the bulletin board a month later and graduated to the Nasdaq Small Cap
Market on Nov. 27, 1995. The stock's market cap peaked at
$105.5-million (U.S.) on Sept. 22, 1995.
Mr. Ogle, Mr. Tabor and Mr. Cotten have played various roles in VSE
promotions in the past, while Chicago broker Albinas Kurkulis is a
current follower of several VSE stocks. Mr. Kurkulis made modest
private placement investments in three of Frank Lang's companies:
Reward Mining in 1997, Sultan Minerals in 1996 and Valerie Gold
Resources in 1993.
Mr. Ogle was a major player in Nor-Con Explorations, a Vancouver
Stock Exchange promotion, from 1985, when he took control from a
group including Vancouver promoter Robert "Bozo" Lalich, to 1990.
Nor-Con's other notable alumni includes Cycomm International's Isaac
Moss, and Hi-Peg Resources, in an assignment deal. Mr. Ogle also was
a shareholder of VSE-listed Elegance Business in 1986, and two private
companies, Contronics Systems and OK Coal, in the same period.
During Mr. Ogle's tenure, Nor-Con's main deals included a proposed
reverse takeover of American Tread Manufacturing of Booneville,
Arkansas, a purported maker and marketer of recycled radial tires.
During the same period Mr. Ogle was working Nor-Con, Arkansas
associate Mr. Cotten was involved with another VSE promotion,
Mystery Mountain Minerals. Mystery Mountain planned to buy 946
acres of oil and gas leases in Oklahoma's Oksufee, Muskogee and
Okmulgee counties from Mr. Cotten's Cotten Oilfield Services in May,
1984, but the deal died a year later. Mystery Mountain stated the deal
ended "due to the inability of Cotten Oilfield Services to convey title to
the properties."
Mr. Ogle's other associate, Kelowna-based Mr. Tabor, has been
involved more recently on the VSE. Mr. Tabor served a stint as director
of Aucan Resources, then served an eight-month session doing investor
relations for Spectrum Games before being abruptly fired. Spectrum
hired Mr. Tabor's associate, Robert Woodward, in August, 1993, for
"public relations" at $3,000 a month. A few months later, in January,
1994, Spectrum claimed it had four new games ready to launch:
Standing Room Only, Bloody Murder, Breathless in Bananaville, and
Speaking 'n Squeekin, with infomercials ready to roll.
On Mar. 28, 1994, Spectrum immediately terminated all services
provided by Mr. Woodward, his associate Mr. Tabor and his numbered
company, 414959 B.C. Spectrum's chief financial officer, Reginald
LaBonte, abruptly resigned the same day, soon followed by the
departures of president and chief executive William Hill and
vice-president Susan Mahler. In July, 1994, Spectrum revealed it had
shut its New York office, cancelled its purported negotiations with the
American Automobile Association, and terminated all four games
contracts, including Breathless in Bananaville and Bloody Murder.
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