i read your post with great interest. i have performed alot of diligence on boiler rooms & telemarketers. my belief was that their SOP was soliciting unregistered securities to the elderly & those who had previously fallen victim to other scams, whose names they aquired on mooch lists other boiler rooms trade or sell.
only recently have i learned they are also a tool of shortsellers. on the case of wellrich, they solicit aznt stock from elderly aznt shareholders in favor of their 'house stocks'. a recent affadavit cites the 'house stock' being the company of an aznt shortseller!
it is my belief that the same tactics used by telemarketers in boiler rooms are used by bashers on message boards. in fact , if you reference the ITHC thread, those touting the stock ARE the boiler room telemarketers, peter shur of IMS once was of wellrich, as was chris cobb, another IMS employee, they were the ones touting ITHC on si. shurr had woes with the nasd & aslo taylor, who ran the boiler room, moved wellrich to san diego. note below; (EDITED, SEC AGENT NAMES & REFERENCES )
> September 2, 1998
>
> Securities and Exchange Commission
> Washington, D.C. 20549
>
> RE: United States Of America vs. WellRich & Company
>
> Attention: xxxxxxxxx xxxxxxxx
> Division of Enforcement
>
> RE: WellRich & Company
>
> Dear xxxxxxxx:
>
> As always it was indeed a great pleasure speaking with you today.
> Please find the
> requested information, I hope this will help you with your action.
>
>
> 1.xxxxxxxxxxxxxxxxxxx
>
>
> 2.xxxxxxxxxxxxxxxxxxxxxx
>
> 3. WellRich is not a licensed broker/dealer, but may be functioning
> as such in violation
> of Section 15(a)(1) of the Securities Exchange Act of 1934 (the
> "Exchange Act"). See
> Polannin, John, Jr., "Finder's Exception From Federal Broker-Dealer
> Registration,"
> CATHOLIC UNIVERSITY LAW REVIEW, Vol. 40, summer 1991, Number 4.
>
> 4.
> xxxxxxxxxxxxxxxx
>
> 5. WellRich has not or does not have the ability to indemnify any
> company, In the event
> that the company is sued as a result of Wellrichs's actions.
> xxxxxxxxxxxxx
WellRich does not have adequate financial resources to compensate any company in the event of a judgment.
>
> 6.
> xxxxxxxxxxxxxxxxxxxxxxxx
>
> 7. WellRich receives compensation predicated upon a percentage of the sales price of the stock that they SOLICIT to people over the phone.
>
> xxxxxxxxxxxxxxxxxxxxxxxx. This establishes that
> WellRich is
> functioning as a broker/dealer. See SIDNEY MARKS, SEC No-Action
> Letter, 1977
> No-Act LEXIS 2057 (July 7, 1977); JOHN DIMENO, SEC No-Action
> Letter, 1978
> No-Action. LEXIS 2188 (Oct. 11, 1978); and RICHARD S. APPEL, SEC
> No-Action Letter, 1983 No-Act. LEXIS 2035 (Jan. 13, 1983).
>
> 8. All of the issues raised by this letter is enough to indite and convict WellRich of all charges. xxxxxxxxxxxxxx.
>
> Yours Truly,
>
> xxxxxxxxxx xxxxxxxx ESQ.
> Attorney and Counselor At Law
> xxxxxx xxxx xxxxxxx
> Washington, D.C. xxxxx
>
> cc: State of California Securites And Exchange Commission
> State of Califirnia Office Of The Attorney General, Telemarketing
> Division.
>
> EFS:rab
>
> ---------------------------------------------------------------
notice here that wellrich, upon coming to san diego had a "36 month lease, also note wellrich came to san diego in 1997;
> > Office: The 1,839 square feet of space at 1947 Camino Vida Roble,
> > Carlsbad 92008 has been leased by Wellrich & Co. for 36 months and
> > $99,306 from Pacific Ridge Commerce Centre.
> >
> > The lessee's representative was Dan Oury of Business Real Estate/New
> > America Network, and the lessor's representative was also Oury.
> > sddt.com.
> > html
------------------------------------------------
for some reason the lease had to be broken, & the following is their most recent lease;
>
> ***
> > Office: The 5,005 square feet of space at 1660 Hotel Circle North, Suite
> > 205, San Diego 92108, has been leased by Wellrich & Company, a venture
> > capitalist firm, for five years and $480,480 from Golf Vista LLC.
> >
> > The lessee's representative was CB Richard Ellis Inc. with Ken Kisbert,
> > Paul LaFrenz and Don Mitchell and the lessor's representative was also
> > CB Richard Ellis with Kisbert, LaFrenz and Mitchell.
> > [http://sddt.com/files/library/98/05/13/tda.html]
> > ___________________________________________________
it is not unusual for boiler rooms to shut down after becoming targeted by the sec or ftc . wellrich has problems with soliciting stock & not being a broker/dealer;
__________________________________________________
> BEFORE THE SECRETARY OF STATE OF WYOMING
>
> STATE CAPITOL
>
> CHEYENNE, WY 82002-0020
> IN THE MATTER OF:) ) WellRich Associates, Inc.) 1301 Travis
> Street) Suite 1800) Houston, TX 77002) Case #98-10 ) A
> Broker Dealer, and) All agents known and unknown) Acting on
> Behalf of the Broker Dealer) )
>
>
> Verified Petition for ExParte Order to Cease and Desist
> Violations of Wyoming's Uniform Securities Act
>
> COMES NOW the Wyoming Securities Division and states as follows:
>
> Unregistered Securities Broker-Dealer and Agent:
>
> On June 12, 1998 the Securities Division of the Wyoming Secretary of
> State's Office received a written complaint alleging that WellRich
> Associates, Inc. (Broker-dealer) offered securities in Caribbean Motor
> Works USA, Inc. in Wyoming.
> 1.Mr. Rob Prokos, representing himself as employed with WellRich
> Associates, Inc., contacted a Wyoming investor by telephone during May
> and June 1998 and obtained information from the Wyomming investor for
> the purpose of opening an investment account.2.Mr. Rob Prokos offered a
> Wyoming investor securities in Caribbean Motor Works USA, Inc.3.At no
> time has Mr. Prokos been licensed as a securities agent with the Wyoming
> Securities Division pursuant to Wyoming Statute (W.S.) § 17-4-103.4.At
> no time has WellRich Associates, Inc. been registered as a broker-dealer
> with the Wyoming Securities Division pursuant to W.S. § 17-4-103.5.W.S.
> § 17-4-103 states: (a)It is unlawful for any person to transact business
> in this state as a broker-dealer or agent unless he is registered under
> this act. (b)It is unlawful for any broker-dealer or issuer to employ an
> agent unless the agent is registered...6.Mr. Prokos and WellRich
> Associates, Inc. violated W.S. § 17-4-103 by transacting business in
> Wyoming without proper registration.
> Offer to Sell Unregistered Securities
> 7.The Caribbean Motor Works USA, Inc. stock offered by the respondents
> is a security as defined by W.S. § 17-4-113 (a)(xi).8.W.S. § 17-4-107
> states: (a)It is unlawful for any person to offer or sell any security
> in this state unless: (i)It is registered under this chapter; (ii)The
> security or transaction is exempted under W.S. §17-4-114; or (iii)It is
> a covered security.9.Caribbean Motor Works USA, Inc. is neither
> registered as a security with the Wyoming Securities Division, nor has
> it filed for an exemption from registration.10.Wellrich Associates, Inc.
> has not filed a securities registration for Caribbean Motor Works USA,
> Inc. with the Secretary of State Securities Division.11.The securities
> offered by Wellrich Associates, Inc. were not registered, were not
> exempt from registration, and are not "covered" securities based on the
> regular business records kept by the Wyoming Securities Division and
> were offered in violation of W.S. §17-4-107 and 114.
> Wherefore, the Wyoming Securities Division prays that an order issue
> against WellRich Associates, Inc., its successors, affiliates,
> controlling person, officers, agents, servants, employees and every
> entity and person directly or indirectly controlled or organized by or
> on its behalf to cease and desist from further offers or sales of
> securities unless and until such securities,From - Thu Feb 18 23:23:01 1999
>
> BEFORE THE SECRETARY OF STATE OF WYOMING
>
> STATE CAPITOL
>
> CHEYENNE, WY 82002-0020
> IN THE MATTER OF:) ) WellRich Associates, Inc.) 1301 Travis
> Street) Suite 1800) Houston, TX 77002) Case #98-10 ) A
> Broker Dealer, and) All agents known and unknown) Acting on
> Behalf of the Broker Dealer) )
>
>
> Verified Petition for ExParte Order to Cease and Desist
> Violations of Wyoming's Uniform Securities Act
>
> COMES NOW the Wyoming Securities Division and states as follows:
>
> Unregistered Securities Broker-Dealer and Agent:
>
> On June 12, 1998 the Securities Division of the Wyoming Secretary of
> State's Office received a written complaint alleging that WellRich
> Associates, Inc. (Broker-dealer) offered securities in Caribbean Motor
> Works USA, Inc. in Wyoming.
> 1.Mr. Rob Prokos, representing himself as employed with WellRich
> Associates, Inc., contacted a Wyoming investor by telephone during May
> and June 1998 and obtained information from the Wyomming investor for
> the purpose of opening an investment account.2.Mr. Rob Prokos offered a
> Wyoming investor securities in Caribbean Motor Works USA, Inc.3.At no
> time has Mr. Prokos been licensed as a securities agent with the Wyoming
> Securities Division pursuant to Wyoming Statute (W.S.) § 17-4-103.4.At
> no time has WellRich Associates, Inc. been registered as a broker-dealer
> with the Wyoming Securities Division pursuant to W.S. § 17-4-103.5.W.S.
> § 17-4-103 states: (a)It is unlawful for any person to transact business
> in this state as a broker-dealer or agent unless he is registered under
> this act. (b)It is unlawful for any broker-dealer or issuer to employ an
> agent unless the agent is registered...6.Mr. Prokos and WellRich
> Associates, Inc. violated W.S. § 17-4-103 by transacting business in
> Wyoming without proper registration.
> Offer to Sell Unregistered Securities
> 7.The Caribbean Motor Works USA, Inc. stock offered by the respondents
> is a security as defined by W.S. § 17-4-113 (a)(xi).8.W.S. § 17-4-107
> states: (a)It is unlawful for any person to offer or sell any security
> in this state unless: (i)It is registered under this chapter; (ii)The
> security or transaction is exempted under W.S. §17-4-114; or (iii)It is
> a covered security.9.Caribbean Motor Works USA, Inc. is neither
> registered as a security with the Wyoming Securities Division, nor has
> it filed for an exemption from registration.10.Wellrich Associates, Inc.
> has not filed a securities registration for Caribbean Motor Works USA,
> Inc. with the Secretary of State Securities Division.11.The securities
> offered by Wellrich Associates, Inc. were not registered, were not
> exempt from registration, and are not "covered" securities based on the
> regular business records kept by the Wyoming Securities Division and
> were offered in violation of W.S. §17-4-107 and 114.
> Wherefore, the Wyoming Securities Division prays that an order issue
> against WellRich Associates, Inc., its successors, affiliates,
> controlling person, officers, agents, servants, employees and every
> entity and person directly or indirectly controlled or organized by or
> on its behalf to cease and desist from further offers or sales of
> securities unless and until such securities, broker-dealer, and agents
> are registered pursuant to the Wyoming Securities Act.
>
> Done this _3rd__ day of _December_________, 1998.
>
> I, Thomas Cowan, Wyoming Securities Division Director, Plaintiff,
> being first duly sworn, state that I have read and understand the
> forgoing Petition and know the allegations and contents thereof. The
> same are true and correct to the best of my knowledge, information and
> belief based on my personal knowledge and information obtained from the
> files and records of the Wyoming Securities Division.
> FOR THE STATE OF WYOMING SECRETARY OF STATE'S OFFICE SECURITIES
> DIVISION _/s/____________________________ THOMAS COWAN, DIVISION
> DIRECTOR,STATE OF WYOMING) )ss.COUNTY OF LARAMIE)
> Subscribed and sworn to before me by Thomas Cowan, personally
> known to me, this _3rd____ day of _December___, 1998.
> Witness my hand and seal.
> /official seal/
> _/s/____________________________
> Notary Public (Sally Simpson)My commission expires: 2/13/2000
>
>
> STATE OF WYOMING) )ss.COUNTY OF LARAMIE)
> AFFIDAVIT OF SERVICE
>
> I, Thomas Cowan, being first duly sworn on my oath, state and
> affirm as follows:
> 1.I am of legal age and am employed by the Secretary of State as the
> Securities Division Director.2.On December _3___, 1998 I placed in the
> United States Mail, registered receipt requested, a Verified Petition
> for ExParte Order to Cease and Desist Violations of Wyoming's Uniform
> Securities Act to WellRich Associates, Inc., 1301 Travis Street Suite
> 1800, Houston, Texas 77002.3.On December _3___, 1998 I placed in the
> United States Mail, registered receipt requested, a certified copy of
> Verified Petition for ExParte Order to Cease and Desist Violations of
> Wyoming's Uniform Securities Act regarding WellRich Associates, Inc. to
> the Texas Registered Agent for WellRich Associates, Inc., David E.
> Brown, 1300 Main St., Ste. 1800, Houston, Texas 77002.4.On December _3
> ___, 1998 I personally delivered a certified copy of Verified Petition
> for ExParte Order to Cease and Desist Violations of Wyoming's Uniform
> Securities Act regarding WellRich Associates, Inc. to the Wyoming
> Secretary of State, Corporations Division, State Capitol, Cheyenne, WY
> 82003.
> Further Affiant Sayeth Not.
> _/s/____________________________
> Thomas Cowan
> Securities Division DirectorSTATE OF WYOMING) )ss.COUNTY OF LARAMIE)
> Before me, _/s/ (Sally Simpson)_, a Notary Public in and for
> Laramie County, State of Wyoming, personally appeared _/s/ (Thomas
> Cowan)_ a person personally known by me, and he being first duly sworn
> by me upon his oath, says that the facts stated in the foregoing
> instrument are true.
>
> Witness my hand and official seal this _3rd_ day of _December___,
> 1998.
>
> /official seal/
> _/s/____________________________
> Notary Public (Sally Simpson)My commission expires: 2/13/2000
> broker-dealer, and agents
> are registered pursuant to the Wyoming Securities Act.
>
> Done this _3rd__ day of _December_________, 1998.
>
> I, Thomas Cowan, Wyoming Securities Division Director, Plaintiff,
> being first duly sworn, state that I have read and understand the
> forgoing Petition and know the allegations and contents thereof. The
> same are true and correct to the best of my knowledge, information and
> belief based on my personal knowledge and information obtained from the
> files and records of the Wyoming Securities Division.
> FOR THE STATE OF WYOMING SECRETARY OF STATE'S OFFICE SECURITIES
> DIVISION _/s/____________________________ THOMAS COWAN, DIVISION
> DIRECTOR,STATE OF WYOMING) )ss.COUNTY OF LARAMIE)
> Subscribed and sworn to before me by Thomas Cowan, personally
> known to me, this _3rd____ day of _December___, 1998.
> Witness my hand and seal.
> /official seal/
> _/s/____________________________
> Notary Public (Sally Simpson)My commission expires: 2/13/2000
>
>
> STATE OF WYOMING) )ss.COUNTY OF LARAMIE)
> AFFIDAVIT OF SERVICE
>
> I, Thomas Cowan, being first duly sworn on my oath, state and
> affirm as follows:
> 1.I am of legal age and am employed by the Secretary of State as the
> Securities Division Director.2.On December _3___, 1998 I placed in the
> United States Mail, registered receipt requested, a Verified Petition
> for ExParte Order to Cease and Desist Violations of Wyoming's Uniform
> Securities Act to WellRich Associates, Inc., 1301 Travis Street Suite
> 1800, Houston, Texas 77002.3.On December _3___, 1998 I placed in the
> United States Mail, registered receipt requested, a certified copy of
> Verified Petition for ExParte Order to Cease and Desist Violations of
> Wyoming's Uniform Securities Act regarding WellRich Associates, Inc. to
> the Texas Registered Agent for WellRich Associates, Inc., David E.
> Brown, 1300 Main St., Ste. 1800, Houston, Texas 77002.4.On December _3
> ___, 1998 I personally delivered a certified copy of Verified Petition
> for ExParte Order to Cease and Desist Violations of Wyoming's Uniform
> Securities Act regarding WellRich Associates, Inc. to the Wyoming
> Secretary of State, Corporations Division, State Capitol, Cheyenne, WY
> 82003.
> Further Affiant Sayeth Not.
> _/s/____________________________
> Thomas Cowan
> Securities Division DirectorSTATE OF WYOMING) )ss.COUNTY OF LARAMIE)
> Before me, _/s/ (Sally Simpson)_, a Notary Public in and for
> Laramie County, State of Wyoming, personally appeared _/s/ (Thomas
> Cowan)_ a person personally known by me, and he being first duly sworn
> by me upon his oath, says that the facts stated in the foregoing
> instrument are true.
>
> Witness my hand and official seal this _3rd_ day of _December___,
> 1998.
>
> /official seal/
> _/s/____________________________
> Notary Public (Sally Simpson)My commission expires: 2/13/2000
-----------------------------------------------
ww.com, i enjoyed your post & appreciate the time & effort you took to post it.
spider |
