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   Strategies & Market TrendsAnthony @ Equity Investigations, Dear Anthony,

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From: StockDung4/15/2008 4:46:18 PM
   of 122029
UPDATE 2-US research firm countersues Web retailer Overstock
Tue Apr 15, 2008 1:14pm EDT
(Adds Overstock comment, trial date, byline)

By Martha Graybow

NEW YORK, April 15 (Reuters) - Gradient Analytics Inc has countersued (OSTK.O: Quote, Profile, Research) and the company's chief executive, Patrick Byrne, contending they waged a smear campaign after the research firm published unflattering reports about the online retailer.

In a 2005 lawsuit, Overstock accused Gradient of conspiring with hedge fund Rocker Partners, now known as Copper River Partners, to write negative research reports about the retailer and drive down its stock price. The hedge fund took a short position in the stock, which allowed it to profit from the stock decline, according to Overstock's claims.

Gradient said it filed its lawsuit on Monday after the California Superior Court granted its motion to bring the counterclaims. It accuses Byrne of libeling the research firm in remarks made to reporters, money managers and market analysts during conference calls and media interviews from 2004 to 2006.

"Public companies cannot have license to libel research firms and use litigation to retaliate against analysts who are critical of their business," Gradient President and CEO Brad Forst said in a statement on Tuesday.

The research firm accuses Overstock of defamation, tortuous interference with prospective business relations, and unfair business practices.

Overstock General Counsel Mark Griffin said there was "nothing new in this cross claim" and that the company was studying whether it could have the research firm's lawsuit dismissed.

"We knew this was coming. It has been filed late in the proceedings," he said. "We have been going more than two years defeating Gradient at every stage of the litigation. All major court contests Overstock has won. We fully expect to win this one."

Overstock's lawsuit is set to go to trial on Sept. 9.

Shortly after Salt Lake City-based Overstock brought the case in 2005, the U.S. Securities and Exchange Commission launched a probe into whether Scottsdale, Arizona-based Gradient helped manipulate stocks.

In February 2007, the SEC informed the research firm that it had ended the investigation and no enforcement action had been recommended, according to Gradient.

Overstock shares were down 2.3 percent to $13.49 in Tuesday afternoon trading on the Nasdaq. (Editing by Derek Caney and Tim Dobbyn)

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From: StockDung4/15/2008 4:58:57 PM
   of 122029
Some news out today on yet another Herb Greenberg victimized company:

Securities and Exchange Commission v. Savvides & Partners/PKF Cyprus, et al., Civil Action No. 06 CV 2223 (S.D.N.Y.)

Litigation Release No. 20527 / April 15, 2008
Accounting and Auditing Enforcement Release No. 2810 / April 15, 2008
Securities and Exchange Commission v. Savvides & Partners/PKF Cyprus, et al., Civil Action No. 06 CV 2223 (S.D.N.Y.)

PKF Cyprus Agrees to Injunction in Fraud Settlement in Connection With Audits of AremisSoft; Agrees to Pay $261,565 in Civil Penalties, Disgorgement and Prejudgment Interest
Savvides & Partners/PKF Cyprus (PKF Cyprus), a Cyprus-based accounting firm, has consented to the entry of a final judgment in the Commission's case charging it engaged in fraud in connection with its 1999 and 2000 audits of AremisSoft Corporation. The firm agreed to settle without admitting or denying the allegations in the Commission's complaint. The settlement, which is subject to Court approval, would permanently enjoin PKF Cyprus from violating or aiding and abetting violations of the anti-fraud, reporting, books and records and internal controls provisions of the federal securities laws: Section 17(a) of the Securities Act of 1933, Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934 (Exchange Act) and Exchange Act Rules 10b-5, 12b-20, 13a-1 and 13b2-1. As part of this settlement, and following the entry of the proposed final judgment against it, PKF Cyprus, without admitting or denying the Commission's findings, has consented to the issuance of an administrative order pursuant to Rule 102(e)(3) of the Commission's Rules of Practice, suspending it from appearing or practicing before the Commission as an accountant, with the right to apply for reinstatement after five years. PKF Cyprus will disgorge $106,513, which includes fees received as a result of its engagements to audit the financial statements of AremisSoft, with prejudgment interest of $48,539, and a $106,513 civil money penalty.

In its complaint filed March 21, 2006, the Commission alleged that PKF Cyprus issued audit reports for AremisSoft subsidiaries in 1999 and 2000 signed by former firm partner Pavlos Meletiou (also named as a defendant in the complaint) that falsely stated that its audits were conducted in accordance with U.S. Generally Accepted Auditing Standards (U.S. GAAS) and that the subsidiaries' financial statements were fairly presented in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP). The false financial statements of these companies were included as part of AremisSoft's consolidated financial statements filed with AremisSoft's year 1999 and 2000 Forms 10-K filed with the Commission, and in AremisSoft registration statements. The complaint also alleges that the PKF Cyprus audit workpapers prepared by Meletiou during the 2000 audits of two AremisSoft subsidiaries, found in a trash heap outside AremisSoft's Indian offices, included phony customer and bank confirmations. The complaint further alleges that Meletiou attended meetings with senior AremisSoft executives in which the AremisSoft financial fraud was openly discussed.

For additional information, see Litigation Release No. 19622 / March 22, 2006.


AremisSoft: Not Answering Questions, Not
Telling the Whole Story
By Herb Greenberg
Senior Columnist
7/6/01 3:31 PM ET

Not telling the whole story, lapses in explanations or simply not answering
questions continues at AremisSoft (AREM:Nasdaq - news - commentary).
Most of the focus, so far, has been on whether the company last year
received $7 million from Bulgaria's National Health Insurance Fund, as
AremisSoft claims, or $1.7 million, as has been claimed by the fund. The
company has not explained the discrepancy.

But that's not the only question AremisSoft won't address.

Consider the case of Info-Quest, a Greek company. In 1999 Info-Quest
bought 3 million shares of stock from AremisSoft and AremisSoft CEO
Lycourgos Kyprianou. Then, last year, Info-Quest said in an SEC filing that it
had bought another 692,923 AremisSoft shares "from AremisSoft." Funny,
AremisSoft never disclosed selling any shares to Info-Quest then. So, if not
AremisSoft, from whom did Info-Quest buy the shares? (I ask only because
according to its SEC filings, Info-Quest deposited the proceeds, in escrow,
with AremisSoft's attorneys, which suggests the shares are from AremisSoft
or insiders.)

I asked that question on June 22, in an email to AremisSoft Executive Vice
President Paul Bloom, as well as an official of Info-Quest, and both responded
that shares were bought from "selling shareholders," not AremisSoft.
(Info-Quest followed up with an amended 13-D that included the clarification.
This was the second of my inquiries, in recent weeks, that resulted in an
amended SEC filing related to AremisSoft. The first was its 10-K, which was
amended after I made an inquiry by email about why AremisSoft didn't include
a signed copy of its independent auditors report. Talk about lapses!)

OK, so who were the selling shareholders? Neither AremisSoft nor Info-Quest
will say. Bloom said he would forward my question, though didn't say to whom
he was forwarding it. (I never received a response from the forwardee.) If the
sellers were insiders, shouldn't the sellers have filed the sale with the SEC?
Or were these unregistered shares sold in a private transaction? Or were the
shares from nonexecutive holders who owned the shares long enough to avoid
an above-the-radar filing on the SEC's EDGAR system? Whatever the case,
it's a simple question to which there undoubtedly is a simple answer.
(Info-Quest has since dumped a large chunk of its AremisSoft holdings, with
most of the sales in recent weeks. No explanation was given for the sales.)

Next, there's a question about who AremisSoft Chief Financial Officer Michael
Tymvios really works for. His bio in AremisSoft's prior proxy statements says
that from 1991 to 1999 he was a partner at Morison International, which
AremisSoft describes as "a certified public accounting firm" based in the
United Kingdom. However, Bridgette Ovesen, executive director of Morison,
told my associate, Mark Martinez, that Tymvios wasn't a partner at Morison
because Morison has no partners.

Instead, she says, Tymvios is a partner at his own Cyprus accounting firm,
Patsalides & Tymvios, which is a member of Morison's network. (That's
confirmed, oddly enough, by Patsalides & Tymvios' Web site, which bills the
firm as "an associate member" of Morison. One of its specialties, by the way,
is helping set up offshore companies.) Ovesen adds that Tymvios is still a
partner in Patsalides & Tymvios, and his firm is still part of the network. So
which one is his full-time gig? Being CFO of AremisSoft or being partner in his
own accounting firm? I asked Bloom about Tymvios on June 29, via email, and
he never responded to the question. But (surprise, surprise) in an SEC filing
today, the company revised Tymvios' bio (the third change following one of my
questions!) to indicate that his relationship with his accounting firm lasted
from 1991 to 1999. (But that's not what Morison's Ovesen says!) And
AremisSoft also changed its description of Morison from being "a certified
public accounting firm" to " a network of independent accountants, tax
advisers, business consultants and lawyers." (Can't help but wonder what
other details will need to be revised.)

Oh, and that bit about Morison being an accounting firm? Not exactly.
According to Morison's Web site, Morison is a "world wide network of
professional business advisers, founded in 1990." I asked Bloom about
Tymvios last Friday, via email, along with several other questions, including
whether the company would ever respond to my prior question about who the
selling shareholders were. Bloom responded, but about something else I had
asked -- not about Tymvios or the identity of the "selling shareholders" who
sold to Info-Quest.

The question Bloom did respond to was why AremisSoft doesn't disclose,
somewhere in its proxy, that AremisSoft CEO Kyprianou is also
"nonexecutive chairman" of GlobalSoft, a Cyprus company in which
AremisSoft owns a 7.1% stake. (According to GlobalSoft's listing on the
Cyprus Stock Exchange, Kyprianou is also president of GlobalSoft.)
AremisSoft has disclosed Kyprianou's dual chairmanships in various press
releases and other public filings, but not in the one place you would expect to
see it: the proxy. Why not? Because, according to a company press release
Bloom referred me to, Kyprianou doesn't "directly" own any stock in
GlobalSoft. (He indirectly owns it through AremisSoft, in which he owns 3.78
million shares, or 9.62%.)

Which brings us to GlobalSoft (officially listed on the Cyprus exchange as
L.K. GlobalSoft, with the L.K. standing for Lycourgos Kyprianou): In April,
AremisSoft announced plans to boost its GlobalSoft stake to a controlling
59.5%. Last month, AremisSoft abruptly canceled the plan. Since then, the
stock of GlobalSoft, which makes software, has plunged, which is not good
news for GlobalSoft's nine largest investors, who bought majority control of
GlobalSoft's stock in late 1999.

In its prospectus (according to a translation from Greek), GlobalSoft said the
shares were shifted to those investors to "obtain a further broadening of the
capital base." Interestingly, six of those investors were registered on the
same day by the same attorney in the British Virgin Islands -- just two weeks
before they received the GlobalSoft shares. (For what it's worth, several
months earlier, an investment partnership whose sole purpose is managing
Kyprianou's stock option investments -- Sincock Holdings -- was registered
in the British Virgin Islands, using the same attorney. Kyprianou is identified
in an SEC filing as Sincock's investment manager.)

Not answering questions and not telling the whole story extends to
AremisSoft investor Irwin Jacobs, who seems to be acting as the de facto
spokesman for AremisSoft. Jacobs has taken numerous swipes at this
column in recent weeks for its coverage of AremisSoft. Much of Jacobs'
commentary, though, has been message board-esque: not telling quite the
whole story (and then not alerting readers when he changes the information).

On June 8, for example, Jacobs wrote on his Web site that Info-Quest had
publicly stated its intention to sell 1.5 million shares of AremisSoft "over 12 to
18 months. I understand," he wrote, "that they have already sold one million
shares." He then said he believed an SEC filing by the company to sell
another 500,000 shares "should complete their selling program." He added
that the Info-Quest sales "shouldn't be of any concern" because they're not
dilutive to existing holders and to his knowledge Info-Quest "is actually
looking for a price above $15 for their shares."

Jacobs later altered his letter (without any notice that it had been changed) to
remove the mention of price. For good reason: As it turns out, based on its
amended 13-D last week, Info-Quest actually sold nearly 2.2 million shares,
not 1.5 million. And the selling continues well beyond June 8 -- until June 27,
at prices that dipped below $13. What's more, earlier this week, Info-Quest
filed to sell another 480,000 shares. What does Jacobs think of Info-Quest's
sales now? He didn't respond to my email last week asking why there was a
discrepancy between what he wrote and what actually happened.

Not answering questions is common for companies under fire. But for a
company to simply ignore some questions, while answering others, is off the
baseline. Then again, so is the entire AremisSoft story.

Editor's note: In a lawsuit filed Tuesday in U.S. District Court in San
Francisco, AremisSoft claimed and a number of hedge funds
conspired to drive down the price of the software maker's stock. Click here to
read more.

Herb Greenberg writes daily for In keeping with TSC's
editorial policy, he doesn't own or short individual stocks, though he owns
stock in He also doesn't invest in hedge funds or other
private investment partnerships. He welcomes your feedback and invites you
to send any to Herb Greenberg. Greenberg also writes a monthly column for

Brian Harris assisted with the reporting of this column.

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From: StockDung4/15/2008 6:12:36 PM
   of 122029

"My firm Lebed Biz LLC has been compensated by a third-party (Doug Furth) 1,250,000 free-trading shares of SPNG for a one-month investor relations contract. I have already sold these shares. Never invest into a stock we discuss unless you can afford to lose your entire investment. For our full disclaimer go to: "

Sent: 4/15/2008 5:37:03 P.M. Eastern Daylight Time
Subj: Alert - SPNG just reported BREATHTAKING earnings!

SPNG just reported HUGE earnings... their 10-Q has been filed and a press release should be out shortly.

SPNG's 3Q revenues were $1,281,704 up 359% from 2Q revenues of $278,976!

SPNG's 3Q net income was $188,482 up 2,074% from 2Q net income of $8,668!

SPNG's 3Q net income on an annualized basis is $753,928.

SPNG finished the quarter with 196,294,078 shares outstanding. Based on that, SPNG's annualized EPS based on 3Q results would be $0.00384.

A modest P/E ratio of just 20 would value SPNG at $0.0768!

SPNG closed today at only $0.025!

SPNG also said in their 10-Q, "we have orders of approximately $18,391,702, which we anticipate will be filled by January 17, 2009". This means in the next three quarters SPNG will see SIGNIFICANT growth and the 3Q numbers that just came out... although HUGE... are ABSOLUTELY NOTHING compared to what's to come!

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My firm Lebed Biz LLC has been compensated by a third-party (Doug Furth) 1,250,000 free-trading shares of SPNG for a one-month investor relations contract. I have already sold these shares. Never invest into a stock we discuss unless you can afford to lose your entire investment. For our full disclaimer go to:

Jonathan Lebed

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From: StockDung4/15/2008 7:24:27 PM
   of 122029
US SEC issues warning list of fake investment firms
Tue Apr 15, 2008 1:53pm EDT
WASHINGTON, April 15 (Reuters) - The U.S. Securities and Exchange Commission said on Tuesday it launched a crackdown on online boiler rooms and other suspicious investment solicitations that may be trying to bilk investors.

Consumers who are weighing a possible investment should first check a new SEC website that lists solicitations made by entities that have made phony claims of being affiliated with established broker firms or registered with the SEC, the agency said.

Some also boast false U.S. addresses or endorsements from make-believe government agencies, the SEC said.

The new list initially included 56 firms and will be updated regularly.

"Anyone thinking about investing online needs this in their tool kit," said SEC Chairman Christopher Cox in a statement. "By arming investors with this online resource, we're making it increasingly difficult for swindlers to succeed with their illegal activities."

In general, U.S. firms that solicit consumers for the purchase or sale of securities are required to register with the SEC.

The new list was compiled from investor complaints and from foreign regulators, the agency said.

"These schemes, which often purport to be legitimate entities located in the U.S., have been mercilessly targeting UK investors, particularly our vulnerable senior citizens, with assurances about bogus opportunities to invest in the U.S. market," Steve Wilmott, head of the London police department's economic crime unit, said in the statement.

The SEC said that for each entity on its new list, agency staff found there was no U.S.-registered securities firm with that name, or it falsely claimed an affiliation with an established firm.

The SEC warning list was posted on the Internet at: here. (Reporting by Karey Wutkowski; Editing by Andre Grenon)

Public Alert: Unregistered Soliciting Entities (PAUSE)
List of Unregistered Soliciting Entities That Have Been the Subject of Investor Complaints
The SEC receives complaints from investors and others, including foreign securities regulators, about securities solicitations made by entities that claim to be registered, licensed and/or located in the United States in their solicitation of non-US investors, and entities not registered in the United States that are soliciting US investors. In some cases, the complaints are about entities claiming to offer investments endorsed by governmental agencies, including the SEC. These claims are important because when an entity claims to be registered with the SEC, it is in effect claiming that it has made itself available for SEC regulation and oversight. Generally, US entities that solicit you to purchase or sell securities for your own account are required to register with the SEC. For this reason, it is important for you to consider whether the entity that solicits you is, in fact, registered with the SEC.

The SEC has looked into these complaints and has learned that in many cases, the soliciting entities are not registered in the United States as they claim or imply. In an effort to warn the public about these entities, the SEC is publishing information it has learned in reviewing these complaints

For each of the entities named below, our staff has determined either (1) that there is no US registered securities firm with this name, or (2) that there is a US registered securities firm with the same (or a similar) name but that solicitations appear to have been made by persons who are not affiliated with the US registered securities firm.

In addition, the "Comments" section for each entity provides additional relevant information we have learned, by answering the following questions:

Is the entity registered in the United States?

Is the entity using a name that is the same as, or similar to, the name of a US registered securities firm notwithstanding the fact that the soliciting persons are not affiliated with a US registered securities firm? FINRA (formerly, the "NASD") maintains a public registry of its broker-dealer members and their sales personnel. Using this website, you can verify both the registration and address of any FINRA-registered US broker-dealer and any individual US securities broker. Checking PAUSE is not a substitute for checking the public registry. Here is the link to that registry:

Does the entity claim an endorsement, approval or other support by a governmental agency or international organization that does not exist or does not really lend support to the entity or the investments it is offering? For a list of fictitious governmental agencies and international organizations that are referenced in investor complaints, [click here]. As reflected in the SEC's investor alert entitled, "Fake Seals and Phony Numbers: How Fraudsters Try to Look Legit," the SEC does not "approve" or "endorse" any particular securities, issuers, products, services, professional credentials, firms, or individuals, and does not allow private entities to use its government seal. Here is the link to the SEC investor alert:

The SEC will regularly update this list.

You should be aware that this list does not include all unregistered entities or entities that have been the subject of complaints received by the SEC. Also, you should understand that the inclusion of a name on this list does not mean that the SEC has concluded that a violation of the US securities laws has occurred or that the SEC has made any judgment about the merits of the securities being offered by these entities.

To see the official SEC release describing and providing more details about this list, [click here]. If you have information, questions or comments about the entities on this list, please contact or call 202-551-6551.

Name Comment
Allen Brothers M&A
2733 Vine St.
Cincinnati, OH 45219
Phone: 513-488-0508
Fax: 513-488-0509

No US registered securities firm with this name.

Bainbridge Management
999 3rd Avenue
Suite 3800
Seattle, Washington 98101/98104
Phone: 206-774-1943
Fax: 206-374-3024

No US registered securities firm with this name.

Beacon Global Management, Inc.
Tower Executive Suites
10940 Wilshire Blvd., Suite 1500
Los Angeles, CA 90024
Phone: 866-365-0738
Fax: 213-947-4787

No US registered securities firm with this name.

Belmont Shaw and Associates Mergers and Acquisitions
80 N. 3rd Avenue
Phoenix, AZ 85003
Phone: 623-707-8676
Fax: 623-707-8677

No US registered securities firm with this name.
An onsite inspection conducted on May 1, 2007 by the State of Arizona Corporation Commission found that the address given for this entity does not exist.
Claims to be endorsed by, or makes other reference in its solicitations to, the International Compliance Assistance Center, an alleged claim-filing and fund recovery service provider for commercial and securities class-action settlements. This entity is believed to be fictitious.

Berger Aron Macey
1240 Peachtree Street NE, Suite 2700
Atlanta, GA 30309
Phone: 404-592-5106
Fax: 404-795-0613

No US registered securities firm with this name.

Bremer Financial Ltd.
Howard Hughes Center
6601 Center Drive, Suite 500
Los Angeles, CA 90045
Phone: 213-403-0107
Fax: 213-403-0109

No US registered securities firm with this name.

Cameron McDonald & Co.
625 4th Ave. S.
Minneapolis, MN 55415
Phone: 612-234-4048
Fax: 612-234-4049

No US registered securities firm with this name.

Capital One Management Inc.
Maine Business Center
415 Congress Street, Suite 102
Portland, ME 04101
Phone: 212-330-9008
Fax: 212-330-9009

No US registered securities firm with this name.

Century Management Division, Inc.
23351 Ford Rd.
Dearborn, MI 48128
Phone: 313-447-4477
Fax: 313-447-4477

No US registered securities firm with this name.

Charlton Hayfield and Company
30 E. Broad St.
Columbus, OH 43215
Phone: 614-947-0111
Fax: 614-947-0102

No US registered securities firm with this name.

City Capital Mergers & Acquisitions
6990 W. Cedar Ave.
Lakewood, CO 80226
Phone: 303-353-0736
Fax: 303-353-0737

No US registered securities firm with this name.

Coleman Brothers
1800 Grant Street
Denver, CO 80203
Phone: 303-952-5896
Fax: 303-952-5801, 303-952-5901

No US registered securities firm with this name.
Claims to be endorsed by, or makes other reference in its solicitations to, the Securities Compliance Agency, an alleged claim-filing and fund recovery service provider for commercial and securities class-action settlements. This entity is believed to be fictitious.

Collett Quinlan M&A
50 Hurt Plaza, SE
Atlanta, GA 30303
Phone: 404-671-8082
Fax: 404-671-8083

No US registered securities firm with this name.

The Equity Exchange Group Portfolio Management (Limited)
1 Federal Street, Floor 28
Boston, MA 02108
Phone: 617-499-4856
Fax: 617-499-4857

No US registered securities firm with this name.

Ferguson Hathaway Consulting, Ltd./FH Consulting
2101 Wall Street Center
14 Wall Street
New York, NY 10005
Phone: 212-461-1487
Fax: 646-224-8941

No US registered securities firm with this name.

W. 50th St., Rockefeller Plaza
New York, NY 10019
Phone: 646-810-6182
Fax: 484-993-3822

No US registered securities firm with this name.

First Liberty Transfer Agency, LLC
1101 Pennsylvania Avenue
Washington, DC 20004
Phone: 202-449-9593
Fax: 202-379-9299

No US registered securities firm with this name.

Global Direct Financial Inc.
Aura Executive Center
695 Central Avenue, Suite 110
St. Petersburg, FL 33701
Phone: 786-228-4959
Head Office
93 Pearl Street
New York, NY 10004
Phone: 212-465-3259

No US registered securities firm with this name.

Golden Medallion Trading
Stanford Corporate Center
14001 N. Dallas Parkway, Suite 1400
Dallas, TX 75240
Phone: 866-296-7051
Fax: 817-977-5237

No US registered securities firm with this name.

Grant Group LLC
1120 Broadway, 22nd Floor
New York, NY 10010
Phone: 646-224-8723
Fax: 646-224-8724

No US registered securities firm with this name.

Griffin Mergers and Acquisitions
8th Street and Nicollet Mall, Downtown
Minneapolis, MN 55402-8773
Phone: 612-284-2417
Fax: 612-677-3711

No US registered securities firm with this name.

Hopewood and Company
413 4th Ave. S.
Columbus, MS 39701
Phone: 662-913-0603
Fax: 662-913-0604

No US registered securities firm with this name.

Howell and Johnson Associates
1422 Euclid Ave.
Cleveland, OH 44115
Phone: 216-744-1026
Fax: 216-744-1027

No US registered securities firm with this name.
Website shows different phone numbers, with Atlanta area codes, from those used in solicitation materials.

Imperial Quest Ventures, Ltd.
The Hancock Center
875 N Michigan Avenue, Suite 2600
Chicago, IL 60611
Phone: 866-365-3685
Fax: 312-205-6421, 312-277-3321

No US registered securities firm with this name.
Claims to be recognized by the SEC and the U.S. Federal Trade Commission. Neither the SEC nor the Federal Trade Commission has endorsed this entity.

J. Rowan Associates
230 Peachtree St.
NW Atlanta, GA 30303
Phone: 678-954-0520
Fax: 678 954 0521

No US registered securities firm with this name.

Kennedy, Anderson & Lang
60 E. 42nd St., Suite 1516
New York, NY 10165
Phone: 646-290-8536
Fax: 646-290-8922
Website (now offline):

No US registered securities firm with this name.

Kobe Asset Management
One Oxford Centre, 301 Grant Street, Suite 2100
Pittsburgh, PA 15219
Phone: 412-235-0107
Fax: 412-202-0736

No US registered securities firm with this name.

Landmark M&A, Inc.
445 Park Avenue
New York, NY 10022
Phone: 646-530-8783
Fax: 646-417-7996

No US registered securities firm with this name.

Lindenberg Asset Management
One Market Street, Spear Tower, 33th Floor
San Francisco, CA 94105
Phone: 415-373-5248
Fax: 415-276-6023

No US registered securities firm with this name.

Lloyd Brown Investments, Inc.
Hancock Center
875 N. Michigan Ave., Suite 3100
Chicago, IL 60611
Phone: 312-416-0876
Fax: 312-416-0877

No US registered securities firm with this name.

Maitland Bell & Co.
2201 E. Camelback Rd.
Phoenix, AZ 85016
Phone: 602-926-1314
Fax: 602-926-1315

No US registered securities firm with this name.

Miller & Ross
Lexington Avenue, Manhattan-Midtown
Turtle Bay, NY 10107
Fax: 646-478-9513

No US registered securities firm with this name.

Universal Partners Mergers & Acquisitions
300 Main Street
Lafayette, IN 47901
Phone: 765-637-0102
Fax: 765-637-0103

No US registered securities firm with this name.
Claims to be endorsed by, or makes other reference in its solicitations to, the Regulatory Advisory Commission, an alleged claim-filing and fund recovery service provider for commercial and securities class-action settlements. This entity is believed to be fictitious.

Warren Sitco & Company
919 North Market Street
Wilmington, DE 19801
Phone: 302-391-0803
Fax: 302-391-0804

No US registered securities firm with this name.
Claims to be endorsed by, or makes other reference in its solicitations to, the Securities Compliance Agency, an alleged claim-filing and fund recovery service for commercial and securities class-action settlements. This entity is believed to be fictitious.

Wellington Mergers and Acquisitions
3340 Peachtree Road NE, Buckhead Area
Atlanta, GA 30326-1081
Phone: 404-592-4540
Fax: 404-759-2088

No US registered securities firm with this name.
Claims to be endorsed by, or makes other reference in its solicitations to, International Stock Regulators, an alleged claim-filing and fund recovery service for commercial and securities class-action settlements. This entity is believed to be fictitious.

Western Capital, Inc.
Empire State Building
350 5th Avenue, Suite 2108
New York, NY 10118
Phone 866-365-0736
Fax: 646-224-8765

No US registered securities firm with this name.

Wiess & Associates Ltd.
203 North LaSalle Center
Suite 1800
Chicago, IL 60601
Phone: 800-578-8365
Fax: 312-277-7553

No US registered securities firm with this name.


Home | Previous Page Modified: 04/15/2008
Public Alert: Unregistered Soliciting Entities (PAUSE)
List of Fictitious Governmental Agencies and International Organizations Associated with Soliciting Entities
The SEC receives complaints from investors and others, including foreign securities regulators, about securities solicitations made by entities claiming to offer investments endorsed, approved, or otherwise supported by governmental agencies, including the SEC, or international organizations. As reflected in the SEC's investor alert entitled, "Fake Seals and Phony Numbers: How Fraudsters Try to Look Legit," the SEC does not "approve" or "endorse" any particular securities, issuers, products, services, professional credentials, firms, or individuals, and does not allow private entities to use its government seal. Here is the link to the SEC investor alert:

The SEC has looked into these complaints and has learned that in many cases, the governmental agencies or international organizations claimed to have lent support to such investments do not exist. In an effort to warn the public about these entities, the SEC is posting the list below. The SEC will regularly update this list.

You should be aware that this list does not include all fictitious governmental agencies and international organizations. Also, you should understand that the inclusion of a name on this list does not mean that the SEC has concluded that a violation of the US securities laws has occurred or that the SEC has made any judgment about the merits of the securities being offered.

For a list of entities claiming to be registered, licensed and/or located in the United States and that have been the subject of investor complaints [click here] to access PAUSE. To see the official SEC release describing and providing more details about this list, [click here].

If you have information, questions or comments about the entities on this list, please contact or call 202-551-6551.

Name Comment
The Center for Securities Department
1870 Twin Towers East
Martin Luther King Jr. Drive SW
Atlanta, GA 30334
Phone: 770-824-0505
Fax: 770-206-2394 and 770-872-5506

Center For Securities Investigation Department
324 W. Main St.
Brighton, MI 48116
Phone: 810-852-1701
Fax: 810-852-1702

Central Stock Regulators
3200 West End Avenue
Nashville, TN 37203
Phone: 615-349-9977
Fax: 615-250-4897

Global Compliance Agency
201 S. College St.
Charlotte, NC 28244
Phone: 704-817-0614
Fax: 704-817-0615

Global Investments Compliance Center
5005 Rockside Road
Independence, OH 44131
Phone: 216-220-1600
Fax: 216-220-1601

Global Securities Crime Investigators
7700 Queens Ferry Lane
Dallas, TX 75248

Global Securities Protection Agency
41 Marietta Street
Atlanta, GA 30303
Phone: 678-954-0522
Fax: 678-954-0523

International Association of Transfer Agents
30 Wall Street
New York, NY 10005

International Commission of Securities
600 Superior Avenue East
Fifth Third Building Suite 1300
Cleveland, OH 44114
Phone: 440-869-9952
Fax: 440-848-2305

Onsite inspections conducted over the past year by the Ohio Division of Securities found that no regulatory agency was located at the address given for this entity.

International Compliance Assistance Center
41 S. High St.
Columbus, OH 43215
Phone: 614-947 0105
Fax: 614-947 0106

International Equities Administrators
5865 Ridgeway Center Parkway, Suite 350
Memphis, TN 38120
Phone: 901-896-0327
Fax: 901-339-0522

International Fraud Assessment Agency
1001 Fourth Ave. Plaza
Seattle, WA 98154
Phone: 206-274-0077
Fax: 206-260-3086

International Securities Accreditation Authority
30 E. Broadway
Salt Lake City, UT 84111
Phone: 801-618-2100
Fax: 801-618-2119

International Securities Administrators
312 Walnut Street, Suite 1500
Cincinnati, OH 45202
Phone: 513-297-1593
Fax: 513-672-2308

International Securities Regulators
101 Federal Street
Boston, MA 02110
Phone: 617-861-9038
Fax: 617-507-1076

International Shareholders Compliance Department
500 N. Michigan Ave., Suite 320
Chicago, Il 60611
Phone: 312-281-0329
Fax: 312-276-4752

International Stock Regulators
2415 East Camelback Road
Phoenix, AZ 85016
Phone: 602-357-1678
Fax: 602-391-2036

Onsite inspections conducted April 30, 2007 by the State of Arizona Corporation Commission found that the purported regulatory agency was not located at the address given for this entity.

Regulatory Advisory Commission
350 S Main St
Ann Arbor, MI 48104
Phone: 734-619-0501
Fax: 734-619-0502

Securities Compliance Agency
212 S. Tryon Street
Charlotte, NC 28281
Phone: 704-817-0609
Fax: 704-817-0610

To view the SEC's Data Quality Guidelines, click [].

Home | Previous Page Modified: 04/15/2008

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From: StockDung4/15/2008 9:08:21 PM
   of 122029 Nothing New in Gradient Cross-Claims; Rocker/Gradient Litigation on Track for Trial

Tuesday April 15, 7:21 pm ET Expects Success on Motion to Dismiss and Looks Forward to Trial on the Merits

SALT LAKE CITY, April 15 /PRNewswire-FirstCall/ --, Inc. (Nasdaq: OSTK - News) today announced it intends to file a demurrer (dismissal) to claims recently filed by Gradient Analytics in et al. v. Gradient Analytics et al. "We didn't oppose Gradient's request to file this because we know we can beat it. To date we have defeated every effort Gradient and Rocker Partners have made to avoid trial on the merits, and now at the eleventh hour, Gradient wants to launch its last remaining legal smoke screen," said Jonathan Johnson,'s chief legal officer. "As we have previously, we will simply turn on the fans and blow that smoke right back at them." Johnson observed that several of the claims appear to be beyond the statute of limitations, and the others simply are not justified for other legal and factual reasons.

Overstock CEO Patrick Byrne added, "This lawsuit is an attempt by Gradient to distract attention from their failing business model. Besides, my criticisms of Gradient are protected by the First Amendment."

In a battle now more than two and a half years along, checkered with failed attempts by Gradient and Rocker Partners to avoid trial, continues to pursue defendants for libel, unfair business practices and tortuous interference. The trial court and the California Court of Appeals denied both Gradient's and Rocker's early exit bids, finding the case legally sufficient to take to trial. The California Supreme Court impliedly endorsed those decisions when it declined Gradient and Rocker's arguments that the trial and appellate courts were in error.

In an apparent last ditch effort, Gradient filed cross-claims on April 14, essentially claiming that and Patrick Byrne,'s chairman and CEO, have publicized and discussed openly the allegations of the complaint. The complaint presents serious allegations that during 2004 and 2005, Gradient, holding itself out as an investment analyst, and Rocker Partners, a well-known short-selling hedge fund, worked in concert to publicize Gradient reports on containing false statements in order to drive down the share price so that Rocker Partners could profit from its short positions in the stock.'s complaint is supported by sworn declarations from four ex-Gradient employees who assert that the Gradient business model allowed short selling hedge fund subscribers to pay up to $40,000 for negative special reports which were then released to other Gradient subscribers and the media. Several of the declarations assert that Gradient actually allowed the hedge funds' editorial input into the report content, and provided advance notice of the report content to the paying subscriber hedge fund, and that Gradient would withhold publication for a period of time, allowing the subscriber hedge fund to position its portfolio to profit from the report's release and negative stock price consequence.

"Ultimately, truth is a defense to Gradient's cross-claims. We have maintained all along that our allegations are true and fully supported by substantial evidence," said Byrne. He added, "It's hard to think that for more than two years they have been running from this fight, that these claims could not have surfaced sooner, and so this desperate launch of cross claims cannot be seen as anything other than another effort at delay, delay, delay. I will not give up. We are going to prove this case to a jury."

Among the most surprising of the contents of the ex-Gradient employees statements concerned Gradient's practice of marketing its subscriptions to short-selling hedge funds by using a list called, "Blow-ups By Grade." This list was said to contain the names of companies whose stocks experienced a sharp, sometimes one-day decline following the release of a negative Gradient report.

Statements of the ex-Gradient employees can be viewed at:

Trial of the case is now set for September 9, 2008.

About, Inc. is an online "closeout" retailer offering discount, brand-name merchandise for sale over the Internet. The company offers its customers an opportunity to shop for bargains conveniently, while offering its suppliers an alternative inventory liquidation distribution channel., headquartered in Salt Lake City, is a publicly traded company listed on the NASDAQ Global Market System and can be found online at is a registered trademark of, Inc. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, statements regarding moving to trial, the results of any trial or portion thereof, the strength of evidence of either side related to the litigation, as well as all such other risks as identified in our Form 10-K for the year ended December 31, 2007, and all our subsequent filings with the Securities and Exchange Commission, which contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements.


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From: Jeffrey S. Mitchell4/16/2008 12:55:20 AM
   of 122029
April 16, 2008
Wall Street Winners Get Billion-Dollar Paydays

Hedge fund managers, those masters of a secretive, sometimes volatile financial universe, are making money on a scale that once seemed unimaginable, even in Wall Street’s rarefied realms.

One manager, John Paulson, made $3.7 billion last year. He reaped that bounty, probably the richest in Wall Street history, by betting against certain mortgages and complex financial products that held them.

Mr. Paulson, the founder of Paulson & Company, was not the only big winner. The hedge fund managers James H. Simons and George Soros each earned almost $3 billion last year, according to an annual ranking of top hedge fund earners by Institutional Investor’s Alpha magazine, which comes out Wednesday.

Hedge fund managers have redefined notions of wealth in recent years. And the richest among them are redefining those notions once again.

Their unprecedented and growing affluence underscores the gaping inequality between the millions of Americans facing stagnating wages and rising home foreclosures and an agile financial elite that seems to thrive in good times and bad. Such profits may also prompt more calls for regulation of the industry.

Even on Wall Street, where money is the ultimate measure of success, the size of the winnings makes some uneasy. “There is nothing wrong with it — it’s not illegal,” said William H. Gross, the chief investment officer of the bond fund Pimco. “But it’s ugly.”

The richest hedge fund managers keep getting richer — fast. To make it into the top 25 of Alpha’s list, the industry standard for hedge fund pay, a manager needed to earn at least $360 million last year, more than 18 times the amount in 2002. The median American family, by contrast, earned $60,500 last year.

Combined, the top 50 hedge fund managers last year earned $29 billion. That figure represents the managers’ own pay and excludes the compensation of their employees. Five of the top 10, including Mr. Simons and Mr. Soros, were also at the top of the list for 2006. To compile its ranking, Alpha examined the funds’ returns and the fees that they charge investors, and then calculated the managers’ pay.

Top hedge fund managers made money in many ways last year, from investing in overseas stock markets to betting that prices of commodities like oil, wheat and copper would rise. Some, like Mr. Paulson, profited handsomely from the turmoil in the mortgage market ripping through the economy.

As early as 2005, Mr. Paulson began betting that complex mortgage investments known as collateralized debt obligations would decline in value, much as Wall Street traders bet that shares will drop in price. In that case, known as shorting, they borrow shares and sell them, wait for the price to fall, buy the shares back at a lower price and return them, pocketing the profit.

Then, over the next two years, Mr. Paulson established two funds to focus on the credit markets. One of those funds returned 590 percent last year, and the other handed back 353 percent, according to Alpha. By the end of 2007, Mr. Paulson sat atop $28 billion in assets, up from $6 billion 12 months earlier.

Mr. Soros, one of the world’s most successful speculators and richest men, leapt out of retirement last summer as the market turmoil spread — and he won big. He made $2.9 billion for the year, when his flagship Quantum fund returned almost 32 percent, according to Alpha. Mr. Simon, a mathematician and former Defense Department code breaker who uses complex computer models to trade, earned $2.8 billion. His flagship Medallion fund returned 73 percent.

Like Mr. Paulson, Philip Falcone, who founded Harbinger Partners with $25 million in June 2001, cast a winning bet against the mortgage market. He pulled in returns of 117 percent after fees in 2007 and made $1.7 billion. The trade thrust him from relative obscurity to hedge fund heavyweight: he now manages $18 billion. Harbinger recently won agreement from The New York Times Company to add two members to its board.

Hedge fund managers share their success with their investors, which include wealthy individuals, pension funds and university endowments. They typically charge annual fees equal to 2 percent of their assets under management, and take a 20 percent cut of any profits.

With a combined $2 trillion under management, the hedge fund industry is coming off its richest year ever — a feat all the more remarkable given the billions of dollars of losses suffered by major Wall Street banks.

In recent months, however, scores of hedge funds have quietly died or spectacularly imploded, wracked by bad investments, excess borrowing or leverage, and client redemptions — or a combination of those events.

“To some degree it’s a very gigantic version of Las Vegas,” said Gary Burtless, an economist at the Brookings Institution.

As Alpha’s list shows, managers who reap big gains one year can lose the next.

Edward Lampert, the founder of ESL Investments and a member of the 2007 Alpha list, was absent this year. His fund fell 27 percent last year, according to Alpha. About 60 percent of ESL’s equity portfolio is invested in Sears, whose shares plunged 40 percent last year. ESL is also a major holder of Citigroup, whose abysmal performance matched that of Sears.

A manager who ranked high in the 2007 list and fell off in 2008 was James Pallotta of the Tudor Investment Corporation, who was 17th last year and earned $300 million. Mr. Pallotta’s $5.7 billion Raptor Global Fund fell almost 8 percent last year, according to Alpha.

A few who did not make the cut still made buckets of money. Bruce Kovner of Caxton Associates and Barry Rosenstein at Jana Partners didn’t make the top 50. But Mr. Kovner earned $100 million, and Mr. Rothstein earned $170 million, according to Alpha. Spokesmen for the hedge fund managers either declined to comment on Tuesday or could not be reached.

Since 1913, the United States witnessed only one other year of such unequal wealth distribution — 1928, the year before the stock market crashed, according to Jared Bernstein, a senior fellow at the Economic Policy Institute in Washington. Such inequality is likely to impede an economic recovery, he said.

“For a recovery to be robust and sustainable you can’t just have consumer demand at Nordstrom,” he said. “You need it at the little shop on the corner, too.”

Despite the explosive growth of the industry — about 10,000 hedge funds operate worldwide — it is relatively lightly regulated. On Tuesday, two panels appointed by Treasury Secretary Henry M. Paulson Jr. advised hedge funds to adopt guidelines to increase disclosure and risk management.

And Mr. Gross, the fund manager, warned that the widening divide among the richest and everyone else is cause for worry.

“Like at the end of the Gilded Age and the Roaring Twenties, we are going the other way,” Mr. Gross said. “We are clearly in a period of excess, and we have to swing back to the middle or the center cannot hold."

Copyright 2008 The New York Times Company

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To: Jeffrey S. Mitchell who wrote (103319)4/16/2008 12:57:17 AM
From: Jeffrey S. Mitchell
   of 122029
SEC Overhaul Bid by Bush Condemned by SEC Chairmen (Update2)

By Jesse Westbrook

Securities and Exchange Commission Chairman Christopher Cox, third from the right, listens as former SEC chairmen, from left, Roderick M. Hills (1975-77), David S. Ruder (1987-89), William H. Donaldson (2003-2005) and Harvey L. Pitt (2001-2003) participate in a roundtable discussion at the agency's headquarters in Washington, May 23, 2007. Photographer: Dennis Brack/Bloomberg News

April 8 (Bloomberg) -- Three former leaders of the U.S. Securities and Exchange Commission say the Bush administration's proposed overhaul of financial regulation threatens to weaken the agency, a process that may already be under way with help from the SEC itself.

David Ruder, Arthur Levitt and William Donaldson, all former SEC chairmen, said a Treasury Department push for the agency to adopt the regulatory approach of the much smaller Commodity Futures Trading Commission would be a mistake.

It's ``not useful'' for the SEC to have ``a prudential-based attitude in which regulators solve problems by discussing them informally with market participants and ask them to change,'' Ruder, a Republican SEC chairman under President Ronald Reagan, said in an interview. ``We have to have an enforcement approach.''

Levitt, a Democrat who led the SEC from 1993 to 2001 under President Bill Clinton and who supports an SEC and CFTC merger, says the terms proposed by Treasury are ``wrongheaded'' because they would give the trading commission ``primacy.''

SEC Chairman Christopher Cox, 55, hasn't endorsed a merger between the two agencies, said SEC spokesman John Nester. ``He would insist on a system of oversight that best protects investors, promotes fair markets and facilitates capital formation.''

Treasury's proposal, issued in a March 31 report, comes as lawmakers question whether the SEC has already eased up in fighting fraud. The Federal Reserve now shares oversight of investment banks, and the SEC is moving to transfer some responsibilities for monitoring accounting rules and securities sales to overseas regulators.

Policy Change

Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, and Jack Reed, a Rhode Island Democrat, have asked government watchdogs to investigate why SEC sanctions against companies and individuals plunged 51 percent, to $1.6 billion, in the regulator's most recent fiscal year. The agency also opened 15 percent fewer probes over the same period, according to its annual reports.

The drop in fines, Dodd and Reed said in a March 20 letter to the Government Accountability Office, ``raises questions about whether changes have taken place in enforcement philosophy or scope of activity.'' The two senators asked the GAO to review a policy change implemented last year by Cox that requires agency attorneys to get approval from commissioners before negotiating corporate fines.

Milken, Enron

Cox, in an April 1 letter to Dodd, said the SEC has demonstrated ``vigorous enforcement of the securities laws.'' He noted that the agency brought 655 cases in the fiscal year ended in September, the second-most in its history. The number of inquiries that resulted in enforcement actions within two years, however, fell to 54 percent last year, down from 64 percent in 2006, according to the agency's annual reports.

The SEC was created by President Franklin Roosevelt to restore investor confidence after the 1929 stock market crash. It regulates brokers, stock exchanges, money managers and public companies, and sues them for violating securities laws.

The agency gained prominence in 1990 for its insider-trading probe of former Drexel Burnham Lambert Inc. bond trader Michael Milken and its collaboration with the Justice Department earlier this decade in investigating Enron Corp., the defunct energy trader accused of accounting fraud.

Liquidity Shortage

While Milken was never convicted of insider-trading, he served 22 months in prison for securities fraud and paid $1.1 billion in fines. Enron's former chairman and chief executive officer were convicted of deceiving the company's investors, and the SEC extracted more than $400 million in penalties from the bankrupt energy trader's banks.

Oversight of Wall Street investment banks was primarily the SEC's responsibility until rumors of a liquidity shortage at Bear Stearns Cos. triggered the firm's near collapse and forced a sale to JPMorgan Chase & Co. on March 16. Cash and easy-to-sell assets plunged to $2 billion at New York-based Bear Stearns on March 13 from $12.4 billion a day earlier, according to the SEC.

The Fed, which orchestrated Bear Stearns's takeover to prevent a market panic, is now lending money to securities firms for the first time since the Great Depression. The central bank also has examiners onsite at such companies as Lehman Brothers Holdings Inc. and Goldman Sachs Group Inc. to help the SEC scrutinize capital and liquidity.

Writing New Rules

Treasury Secretary Henry Paulson, who was previously Goldman's chairman, wants to increase the Fed's power further by giving the central bank a hand in writing rules for securities firms and making it responsible for monitoring risks that Wall Street poses to the U.S. economy.

His 218-page report, which was in the works before the credit crisis, also says the SEC should rely more on the $11.7 trillion mutual-fund industry to police itself. Most of the recommendations would require changes in legislation.

Donaldson, a Republican who stepped down as SEC chairman in June 2005, was also critical of Paulson's approach. ``Before you start rearranging the organization of the financial-regulatory agencies,'' he said in an interview, ``you must examine how all of this happened.'' Congress needs to determine ``whether new powers are needed or whether there were powers there that were not used.''

Even without legislation, the SEC is changing. Last year the agency dropped a requirement that overseas companies align their financial statements with U.S. accounting rules. It's now considering letting American companies use international rules as part of a plan to move to global standards for accounting provisions. In doing so, said Levitt, the SEC risks relinquishing its oversight of how companies report profit and revenue under rules drafted by the Norwalk, Connecticut-based Financial Accounting Standards Board.

Overseas Regulators

``That proposal does more violence to protecting America's investors from the standpoint of transparency as anything in the Paulson proposal,'' said Levitt, who is now a senior adviser at Carlyle Group Inc. and a board member of Bloomberg LP, the parent of Bloomberg News.

Cox, in a January speech, said the SEC is doing ``everything within our power to ensure that financial-reporting information from different countries is comparable and reliable.'' He said the SEC and overseas regulators have to ``harmonize our differing sets of rulebooks'' to respond to growing public demand for cross-border investing.

Separately, the SEC is also considering easing its rules to allow foreign stock exchanges and brokerages to sell securities directly to U.S. investors. The plan would permit transactions under the watch of overseas regulators who have rules that are similar to those in the U.S.

Reed, who heads the Senate Subcommittee on Securities, Insurance and Investment, said he will hold hearings on the proposal. ``No other regulator,'' he said in an April 1 speech, ``no matter how conscientious, is likely to share our same commitment to protecting U.S. investors.''

To contact the reporter on this story: Jesse Westbrook in Washington at

Last Updated: April 8, 2008 09:42 EDT

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To: anniebonny who wrote (103199)4/16/2008 10:36:04 AM
From: anniebonny
   of 122029
AETE Discloses SEC Investigation
Wednesday April 16, 9:16 am ET

HOUSTON--(BUSINESS WIRE)--The Alternative Energy Technology Center, Inc. (OTC:AETE - News) announced today that it has been notified by the SEC that it is investigating concerns related to stock distribution under a 504 Regulation D filing, complaints of e-mail spam originating from third parties and questions related to its technology. The SEC temporarily suspended trading in the Company’s stock through April 15, 2008. AETE is providing information requested and addressing the stated concerns of the SEC.

The Company: The Alternative Energy Technology Center, Inc. (OTC:AETE - News), based in The Woodlands, TX, is a technology company focused on biofuels and alternative energy technologies. It will focus on technologies using renewable energy inputs from non-food energy sources and on technologies that can be scaled up to efficiently addresses the post-petroleum energy needs of the United States.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipate" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.

The Alternative Energy Technology Center, Inc.
David Mordekhay, 832-358-0203

Source: The Alternative Energy Technology Center, Inc.

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To: Jeffrey S. Mitchell who wrote (103320)4/16/2008 11:31:51 AM
From: scion
   of 122029
On CNOA, CNBC Aids And Abets Penny Stock Promoters

Tags: ANALysts, CNBC, Criminals, Financial Media Circus, Manipulation, Press, Scandals, idiots

Let me start by saying I have no problem whatsoever with penny stock promotion—these tiny / failing / fraudulent companies need all the exposure / hype they can get or else they’ll never raise any capital and fail / be exposed as the frauds that they are soon rather than later. But I do take offense when entertainment outlets like CNBC try to pass themselves off as credible researchers. As I’ve posted HERE and HERE, their bumbling has hurt too many investors and they’ve helped make people afraid of penny stocks—which I cannot permit.

Now, one of their wannabe journalists / entertainers, Sri Jegarajah, has written the single most naïve penny stock article I’ve ever read, “Wild About Rice” in which Sri mistakes paid-for stock promotion for credible research forcing me to explain the rules of the game to all the poor schmucks who mistakenly view CNBC as a credible source.

Besides quoting CNOA’s CEO (we all know how useless that is, what’s he gonna admit the company’s a pump and dump scheme?), and a Seeking Alpha article—whose writers are no more qualified than bums begging for change on the street, Sri proudly quotes Source Advisors, forgetting (not realizing?) to mention they’ve been paid $25,000 “by a third party” (pump and dumper, cough, cough) to publish their BS report. And, as if to repent for his sins, Sri closes out the article quoting Patrick Murphy of Murphy Analytics who was only paid $1,000 for his efforts (scroll down to the bottom and be better than Sri, aka read the disclaimer).

Sorry Sri, I’m gonna have to take you down on this—you’re either lazy, naïve, stupid or corrupt—take your pick–no matter how you slice it you should be fired. You’re no journalist, you’re an entertainer, go learn to play a musical instrument, maybe you won’t hurt as many people in that racket.

And don’t even think about coming at me with CNOA’s earnings report. Yes, to naïve investors, it looks beautiful, but they forget that China—and more specifically—Chinese penny stocks—are beautifully corrupt. Any and all figures are sure to be exaggerated—at best—and totally fraudulent at worst. The only reason I don’t bother digging cuz I don’t feel like getting my kneecaps busted by these promoters. Not that it would even do any good because the only thing that matters here is QUIN. They are the market makers who blatantly control where this stock goes. They can pump this thing up to $3-$4 if they want, they don’t even have to pay off idiots like Sri, at least probly not (I’m not sure of what Sri’s deal is with them).

As if it couldn’t get any worse, pumpers are spreading false rumors that Jim Rogers likes CNOA—all because this article made the amazing connection that CNOA is a Chinese play and Jim Rogers likes China (no direct connection whatsoever!).

And you guys wonder why I’m so cynical—behold the joke that is the finance industry!

Disclaimer: I have no position, QUIN hasn’t pumped the stock up enough to interest me to short…yet, nor would I ever buy this stock cuz I like to sleep well at night! I just enjoy cutting through the BS.

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To: anniebonny who wrote (103321)4/16/2008 11:48:45 AM
From: StockDung
   of 122029
Ethanol for a Dollar a Gallon?

Contributed by: Michael Hall
Date: 20 Mar, 2008

Alternative Energy Technology Center, Inc. (Pink Sheets: AETE) this week announced plans for $1 a gallon ethanol. Part of the company's press release reads:

"The Alternative Energy Technology Center, Inc. announced its plans to produce ethanol for the U.S. market at less than $1 per gallon. AETE will refine biomass into fuel products using its exclusive technology. ... AETE’s process using common cellulosic biomass will produce ethanol for less than $1 per gallon."

Cellulosic ethanol is produced using cellulosic feedstocks, such as wood chips or crop waste. "Cellulosic" is the buzzword in ethanol nowadays.

One reason for cellulosic ethanol's sudden popularity is that the price of corn reached record levels recently, soaring past $5 a bushel. Yesterday, corn futures for May fell the maximum allowable 20 cents, but still the price was $5.2725 a bushel. Even with gas prices also high, corn ethanol is too expensive under the circumstances, generally costing more than $2 a gallon to produce.

Another reason for the cellulosic hype is that the Department of Energy and George W. Bush have recently been supportive of cellulosic ethanol efforts. See the hotstocked articles "Corn Ethanol Stocks Reel from Bush's Words" and "Waste Not, Want Not".

The company's press release quotes its president, Brown Marks, as saying:

“One dollar ethanol will allow us to operate profitably without government subsidies or incentives. We expect to produce over 100 gallons of fuel per ton of cellulosic biomass which costs about $65 in today’s market.”

However, Alternative Energy Technology Center's last SEC-filed accounting, which is for the period ending September 30, 2007, never once mentions the word "cellulosic." It appears that their intention at the time was to manufacture ethanol from corn. How can a company that was not in the cellulosic ethanol business a few months ago make such bold claims?

The answer is that the company also announced last month the acquisition of a subsidiary that has cellulosic ethanol technology. The company's website explains:

"Through the acquisition of Meridian Biorefining, Inc., AETE can now process common biomass such as sawdust, switchgrass, corn stover and other plant material into biofuels at a price that makes sense. This is done using advanced, low-heat processing technology licensed exclusively by Meridian for AETE."

Investors should be cautious of these statements, without more information about Meridian Biorefining.

Alternative Energy Technology Center has jumped on the cellulosic ethanol bandwagon, but Verenium (VRNM), Lignol (TS-V: LEC), and Pacific Ethanol (PEIX) were on the bandwagon long before, and each of those companies was a recent co-receiver of multi-million dollar grants from the Department of Energy to build cellulosic ethanol demonstration plants.

Alternative Energy Technology Center's stock, AETE, is currently trading at $3.15 a share, up over 33% in the last four days since this "$1 ethanol" press release. This week's increase seems a bit excessive, given that there was little new information in the press release. The company already announced the acquisition of Meridian Biorefining back on February 11.

For now, $1 ethanol is just talk.

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