| To: blebovits who wrote (425) | 11/24/2001 7:48:22 PM | | From: StockDung | | | | web.archive.org
IPO-Initial Public Offering Subscription Agreement Information Request Form Email to: Fifth@juno.com
NET WORLD MARKETING, INC.
400 North Woodlawn, Suite 18 — Wichita, Kansas 67208-4333
Telephone: 800-992-6616 — Fax: 316-688-0998
Dear Investor:
Thank you for requesting the Prospectus and Subscription Agreement relative to our initial public stock offering (IPO).
We have established a shopping mall on the internet. Its internet web address is web.archive.org. Our objective, as a business, is to fill up our shopping mall with thousands of small stores and with individuals who have one or two truly unique products. We will charge a set up fee, charge monthly rent, and take 5% of their gross monthly sales as the "landlord." WE know there are millions of small business people and individuals who make jewelry, handbags, sell antiques and collectibles, etc. With your investment, we will be able to advertise nationally and really build a profitable business.
Enclosed you will find these documents as well as a return envelope. You need only complete and return page 6 of the Subscription Agreement. The minimum subscription is 1,000 shares or $100.00. The maximum subscription is 250,000 shares or $25,000.00. Due to certain state securities laws, we are not able to accept subscriptions from residents of Massachusetts, Kansas, Maine, Texas or Utah.
We hope you will invest with us in this offering. All of the offering proceeds go directly to the company, commission free, to use to build the business. The Offering will close when all of the shares have been sold. Immediately thereafter, your new stock certificate will be mailed directly to you. We will be asking for the trading symbol, "NWMI" when the offering closes. Please tell your friends and neighbors about us, as they might be interested in investing or joining our internet shopping mall site.
If I can answer any questions, please call me at 800-992-6616.
Very truly yours,
Georganna L. Williamson
President
--------------------------------------------------------------------------------
OFFERING MEMORANDUM
NET WORLD MARKETING, INC.
(A Nevada Corporation)
10,000,000 Shares of Common Stock
Offering Price $0.10 Per Share
Prior to this offering there has been no public market for the shares of Net World Marketing, Inc., (the "Company"). There can be no assurance that any trading market in these securities will develop hereafter, or that such market, if developed, will continue. The public offering price has been arbitrarily determined and bears no relationship to the assets or book value of the Company or any other recognized criteria of value.
THE SHARES MAY BE OFFERED AND SOLD ONLY IN THOSE JURISDICTIONS WHERE SUCH OFFER MAY BE MADE PURSUANT TO APPROPRIATE LAW AND MAY ONLY BE TRADED IN SUCH JURISDICTIONS AT THIS TIME. PURCHASERS OF SUCH SECURITIES EITHER IN THIS OFFERING OR IN ANY SUBSEQUENT TRADING MARKET WHICH MAY DEVELOP MUST BE RESIDENTS OF SUCH JURISDICTIONS.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
THE SECURITIES OFFERED HEREBY ARE HIGHLY SPECULATIVE, INVOLVE A HIGH DEGREE OF RISK AND IMMEDIATE DILUTION, AND SHOULD BE PURCHASED ONLY BY PERSONS WHO CAN AFFORD TO LOSE THEIR ENTIRE INVESTMENT. SEE "HIGH RISK FACTORS" FOR SPECIAL RISKS CONCERNING THE COMPANY AND "DILUTION" FOR INFORMATION CONCERNING DILUTION OF THE BOOK VALUE OF THE INVESTORS' SHARES FROM THE PUBLIC OFFERING PRICE.
Price to Public Proceeds to the Company1,2
Per Share $0.10 $0.10
10,000,000 Shares $1,000,000 $1,000,000
Net World Marketing, Inc.
400 N. Woodlawn, Suite 18
Wichita, KS 67208
Tel: 800-992-6616
The Date of this Offering Memorandum is February 1, 1999
Subject to the terms and conditions of the offering the Company is offering the Shares on a "best efforts" basis. This offering will terminate promptly 120 days from the date hereof. (See "Underwriting.")
THE SHARES OFFERED HEREBY HAVE NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN EXEMPTION CONTAINED IN REGULATION D, RULE 504 PROMULGATED PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED.
Payment for the Shares should be made by check or money order payable to Net World Marketing, Inc. (See Footnotes from cover page.)
1. The Company reserves the right to pay a maximum commission to registered broker/dealers or finders fees, where the same can be paid, of 10% of the moneys received for sales of the Shares.
2. The proceeds to the Company set forth in the table on the cover page of the Prospectus have been computed before deduction of expenses that will be incurred in connection with this offering, including filing fees, printing, legal, accounting, transfer agent, postage and other fees estimated at $75,625.
NO DEALER, SALESMAN OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS DOCUMENT, AND IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE COMPANY.
THE SHARES ARE OFFERED BY THE COMPANY, SUBJECT TO PRIOR SALE, ACCEPTANCE OF AN OFFER TO PURCHASE, WITHDRAWAL, CANCELLATION OR MODIFICATION OF THE OFFERING WITHOUT NOTICE. THE COMPANY RESERVES THE RIGHT IN ITS SOLE DISCRETION TO REJECT ANY SUBSCRIPTION, IN WHOLE OR IN PART, FOR THE PURCHASE OF ANY OF THE SHARES OFFERED HEREBY.
The Company intends to furnish its stockholders with annual reports containing audited financial statements as soon as practicable after the end of each fiscal year. In addition, the Company may from time to time, issue unaudited interim reports and financial statements.
This offering involves: (a) high risks (See "High Risk Factors."); and (b) immediate substantial dilution in that the net tangible book value of the Common Stock upon completion of this offering will be substantially less than the public offering price. (See "Dilution.")
OFFERING SUMMARY
The following is a summary of certain information contained in this offering and is qualified in its entirety by the more detailed information and financial statements appearing elsewhere in the Offering Document.
The Company
Net World Marketing, Inc., a Nevada corporation (the "Company"), was formed October 17, 1997, to establish a shopping mall on the Internet and "rent" stores on its Internet site (http://www.networldbuy.com) to small companies and individuals who have one or two unique products to market. The Company will charge its store tenants set up fees, monthly rent, and the Company will charge a commission of 5% of the gross sales of each store on its site.
The Company presently maintains an office at 400 N. Woodlawn, Suite 18, Wichita, KS 67208. The Company's telephone number is (800) 992-6616.
THE OFFERING
Securities Offered.................... 10,000,000 shares of common stock at a price of $0.10 per share.
Common Stock Outstanding......... 1,026,686 shares
After the Offering............ 11,026,686 shares
Net proceeds to the Company
from the offering after
payment of commissions, and
expenses.......... $824,375
Use of Proceeds....................... The Company intends to apply the net proceeds of this offering as follows:
USE OF PROCEEDS
Legal & Accounting 50,000
Salaries & Wages 120,000
Rent, Office 6,000
Telephone, Fax, Fed Ex 25,000
Public Relations 90,000
Web Site Development 100,000
Advertising and Marketing 200,000
Travel 33,000
Working Capital 200,375
$824,375
THE COMPANY
Net World Marketing, Inc., a Nevada corporation (the "Company"), was formed October 17, 1997, to market products and services on the Internet.
Upon the closing of this offering, the Company plans to begin national marketing to establish its customer "tenants" and to further development of its web site on the Internet (http://www.networldbuy.com). The Company plans to secure the exclusive Internet marketing rights to certain of its customers products and services. The Company plans to secure its customer "tenants" who, for a development fee and continuing monthly fees, will pay the Company to develop and/or maintain a web site on the Internet for the purpose of selling products and/or services to the public over the Internet.
The phenomenal growth of e-commerce on the Internet has been well documented recently. It has been estimated that more than $3.0 billion of product purchases were made over the Internet during 1998 and that figure is expected to grow to more than $15 billion by the year 2003. More and more companies are establishing a web site on the Internet. It is the Company's belief that more than 500,000 small businesses and more than 1,000,000 individuals will contract with a company to establish and maintain a web site on the Internet for the purposes of selling products and/or services in the future.
While most medium-sized companies and larger have the resources in-house to develop and maintain a web site, most small businesses do not. The Company plans to aggressively pursue small businesses as clients. The Company will be able, after the completion of this offering, to "rent" Internet stores in its Internet shopping mall for several thousand customers or "tenants". The Company plans to custom design each individual client's site using a basic "internet store" complete with charge card abilities, customer service provisions, tracking capabilities, accounting and billing services, etc.
The Company plans to aggressively promote its services over the Internet and through other media, direct mail, television, radio, newspapers, etc. As with any "shopping center", success is more easily achieved as the "foot traffic" increases (i.e., as the Company's site receives more "hits", the Company's clients will, ultimately, sell more goods and services).
As with most retail stores, the Company expects that more than half of its annual sales of products and services from its client's "internet stores" will occur during the Christmas holiday season. As the "landlord" of the Company's web site, the Company will realize revenue from three sources: a) fees for site development, b) fees for site maintenance, and c) fees from a percentage of each site's sales.
HIGH RISK FACTORS
THE SECURITIES OFFERED HEREBY ARE HIGHLY SPECULATIVE IN NATURE AND INVOLVE AN EXTREMELY HIGH DEGREE OF RISK. THEY SHOULD BE PURCHASED ONLY BY PERSONS WHO CAN AFFORD TO LOSE THEIR ENTIRE INVESTMENT. THEREFORE, EACH PROSPECTIVE INVESTOR SHOULD, PRIOR TO PURCHASE, CONSIDER VERY CAREFULLY THE FOLLOWING RISK FACTORS, AS WELL AS ALL OF THE OTHER INFORMATION SET FORTH ELSEWHERE IN THIS DOCUMENT.
Dependency on the Offering; Need for Additional Financing. Management estimates that the proceeds of this offering will be sufficient to satisfy its anticipated cash requirements for approximately 18 to 24 months following the consummation of this offering; however, there can be no assurance that the Company will not require additional financing prior to or at the expiration of such period or that, if required, such financing will be available on acceptable terms or at all. There is very little likelihood that the Company will generate cash flow during this period of time.
Dependence Upon Key Personnel. The future success of the Company will be largely dependent on the personal efforts of Georganna L. Williamson, President of the Company. Should Mrs. Williamson cease to be affiliated with the Company before a qualified replacement is found, there could be a material adverse effect on the Company's business and prospects.
Limited Organization. The Company is in the development stage. The Company was recently incorporated. It has limited resources and a limited operating history; thus, no assurance can be given that the Company will be successful.
No Assurance of Public Market. There is no public market for the Common Stock of the Company and no assurance that such a market will develop at the conclusion of this offering or, if developed, that it will continue. Purchasers of the Company's securities may, therefore, have difficulty in selling such securities if they so desire.
Immediate Substantial Dilution. This offering involves an immediate substantial dilution of $0.024 per share between the adjusted net tangible book value per share after the offering and the public offering price of $0.10 per share. In consequence, there will be an immediate increase per share attributable to the present shareholders of $0.066.
Arbitrary Offering Price. The offering price of the Shares has been arbitrarily determined by the Company based upon factors such as the Company's capital needs and the percentage of ownership to be held by investors as a result of this offering. The offering price does not necessarily bear any relationship to assets, book value, earnings history or other historical investment factors.
Lack of Underwriter; No Commitment to Purchase Shares; No Refund. The Shares are being offered by the Company through its officers and directors and, upon engagement, through participating broker-dealers on a best efforts basis. No broker-dealer has been retained as an underwriter and no broker-dealer is under any obligation to purchase any Shares. In addition, the officers and directors of the Company collectively have limited experience in the offer and sale of securities. Consequently, there is no assurance that the Company is capable of selling all or any of the Shares. In addition, no entity, including any broker-dealer or the Company, has an obligation to purchase any of the Shares offered. Subscribers will not be entitled to any refund of their subscriptions.
No Dividends. The Company has not paid any dividends on its Common Stock since inception and intends for the foreseeable future to retain any earnings to finance the development of its business. (See "Description of Company's Securities.")
Competition. The Company will be in competition with many companies which have substantially greater resources and experience than the Company.
Possible Limitations upon Trading Activities; Restrictions Imposed upon Broker-Dealers Effecting Transactions in Certain Securities. Sale of the Company's securities pursuant to this offering and trading of the Company's securities thereafter may be subject to material limitations as a consequence of recently adopted amendments to the Securities Exchange Act of 1934, which limit the activities of broker-dealers effecting transactions in "designated securities" and "penny stocks."
Rule 15c2-6 promulgated under the Securities Exchange Act of 1934 restricts the solicitation of sales of "designated securities" by brokers-dealers to persons other than established customers and accredited investors (generally institutions with assets in excess of $5,000,000 or individuals with net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouse). Pursuant to Rule 15c2-6, prior to any sale of a "designated security," the broker-dealer must have first received a written statement from the purchaser of the securities setting forth certain personal information concerning the person's financial situation, investment experience and investment objectives. Thereafter, the broker-dealer must reasonably determine, based upon the information provided, that the purchase is suitable for the person and that the person has sufficient knowledge and experience in financial matters that the person may be expected to be capable of reasonably evaluating the risks of transactions in "designated securities."
"Designated securities" are defined as any equity securities other than a security that is registered on a national exchange; included for quotation in the NASDAQ system; or whose issuer has net tangible assets in excess of $2,000,000. Securities are exempt from Rule 15c2-6 if the market price is at least $5.00.
Since the Company's securities do not presently qualify for inclusion in the NASDAQ System and for so long as the Company has net tangible assets of $2,000,000 or less, or the market price of its securities are $5.00 or less, the Company's securities will be subject to Rule 15c2-6. As a consequence, brokers-dealers may find it more difficult to effectuate sales or trading activities in the Company's securities. Thus, sales of securities in this offering and trading of the Company's securities thereafter will be more difficult than in the case of securities not defined as "designated securities." This may have the effect of reducing the volume of trading which takes place after the offering, thus possibly depressing the market for such securities, and an investor may find it difficult to dispose of such securities.
Rules 15g-2 through 15g-6, promulgated under the Securities Exchange Act of 1934, provide a series of additional rules requiring brokers-dealers engaging in transactions in low-priced over-the-counter securities defined as "penny stock" to first provide to their customers a series of disclosures and documents, including: (i) a standardized risk disclosure document identifying the risks inherent in investing in "penny stocks;" (ii) all compensation received by the broker-dealer in connection with the transaction; (iii) current quotation prices and other relevant market data; and (iv) monthly account statements reflecting the fair market value of the securities. The rule requiring provision of a risk disclosure document became effective on July 15, 1992. The other aspects of the rules are scheduled to take effect on January 1, 1993.
"Penny stocks" are defined at Rule 3a51-1 in generally the same manner as "designated securities" except the net tangible asset test is only satisfied if the issuer has net tangible assets of more than $2,000,000 and has been in continuous operation for greater than three (3) years. Issuers who have been in operation less than three (3) years must have net tangible assets of at least $5,000,000. The Company's securities presently, and will likely for the foreseeable future, constitute "penny stocks." Thus, trading activities for the Company's securities will be made more difficult for broker-dealers than in the case of securities not defined as "penny-stocks." This may have the result of depressing the market for the Company's securities and an investor may find it difficult to dispose of such securities.
DILUTION
The net tangible book value of the Company as of January 31, 1999, was approximately $10,000.00. Net tangible book value consists of the net tangible assets of the Company (total assets less total liabilities and intangible assets). As of January 31, 1999, there were 1,026,686 shares of the Company's Common Stock outstanding. Therefore, the net tangible book value of the Company's Common Stock as of the above date was approximately $0.01per share. In the event that the Shares offered hereby are sold, the net tangible book value of the Common Stock would be $834,000 or approximately $0.076 per share. These figures give effect to the deduction of all of the estimated expenses, including filing, printing, legal, accounting, transfer agent and other fees. The net tangible book value per share will have increased by approximately $0.066 per share to the present stockholders and decreased by approximately $0.024 per share to the public investors if the entire offering is sold.
Dilution represents the difference between the public offering price and the net tangible book value per share immediately after the completion of this offering. Dilution arises mainly from the arbitrary decision by the Company as to the offering price per share. Dilution of the value of the shares purchased by the public in this offering will also be due, in part, to the far lower book value of the shares presently outstanding and, in part, to expenses incurred in connection with the public offering. The following table illustrates this dilution:
ASSUMING ALL THE SHARES SOLD
Public Offering Price Per Share $0.10
Net tangible Book Value Per Share Before Offering $0.01
Increase Per Share Attributable to Payment by Public Investors $0.066
Net Tangible Book Value Per Share After Offering $0.076
Dilution Per Share to Public Investors $0.024
As of the date of this Document, the following table sets forth the percentage of equity to be purchased by public investors in this offering compared to the percentage of equity to be owned by the present stockholders, and the comparative amounts paid for the shares by the public investors as compared to the total consideration paid by the present stockholders of the Company.
Shareholders # Shares % Cost/Share Total Cost % of Total Cost
Existing 1,026,686 9.3 $0.001 $ 10,000 .01
New 10,000,000 90.7 $ 0.10 $1,000,000 .99
Totals 11,026,686 100.0% $0.009 $1,010,000 100.0%
CAPITALIZATION
The following table sets forth the capitalization of the Company as of the date of this Prospectus and as adjusted to reflect the sale of the Shares offered hereby.
Presently Outstanding To Be Outstanding
1,026,686 shares of common stock 11,026,686 shares of common stock
Employees. The Company presently has no employees. (See "Management" below.) However, the Company intends to employ Mrs. Williamson and others upon completion of this offering.
Facilities. The Company presently maintains its offices at 400 N. Woodlawn, Suite 18, Wichita, KS 67208. The office is occupied pursuant to a verbal no-charge lease. The Company believes that its present office is currently sufficient for its purposes. The Company plans to pay rent of $500 per month after the offering.
MANAGEMENT
The officers and directors and key consultants of the Company and further information concerning them as follows:
Name Age Position
Georganna L. Williamson 45 President, Secretary, Treasurer, Principal Financial Officer, Director
Georganna L. Williamson. Mrs. Williamson has been the sole officer and director of the Company since inception on October 17, 1997. Mrs. Williamson plans to devote 100% of her time to the Company after the offering for a monthly salary of $4,000. From March 1991, until the present, Mrs. Williamson has been the operations manager of Fifth Avenue Communications, a financial public relations firm. For the past two years Mrs. Williamson set up, operates and maintains the Internet site for Fifth Avenue Communications and Internet sales of gourmet coffee products for Gourmet's Choice Coffee Co., Inc. From 1985 through the present Mrs. Williamson has been an officer and/or a director of a number of public companies. Mrs. Williamson attended the University of Wisconsin where she majored in English and Communications.
PRINCIPAL STOCKHOLDERS
The following table sets forth certain information regarding the beneficial ownership of the Company's common stock as of the date of this Prospectus, and as adjusted to reflect the sale of the Securities offered hereby, based on information obtained from the persons named below, with respect to the beneficial ownership of shares of Common Stock, by (i) each person who is known by the Company to own beneficially more than 5% of the Company's outstanding Common Stock; (ii) each of the Company's directors; and (iii) all directors and officers of the Company as a group.
Name and Address Amount and Nature
Of Beneficial
Ownership Percentage of
Shares
Before Offering Outstanding
Owned
After Offering
Georganna L. Williamson
400 N. Woodlawn, Suite 18
Wichita, KS 67208 500,510 48.8 4.5
AGE Investment Co.
730 Fifth Avenue, 9th Floor
New York, NY 10019-4105 500,804 48.8 4.5
1,001,314 97.6 9.0
--------------------------------------------------------------------------------
* As a group 2 persons own 1,001,314 shares of the 1,026,686 total shares outstanding at January 31, 1999. AGE Investment Co. is owned by Edward Williamson, husband of Georganna L. Williamson, the Company's president.
Reports to Stockholders. The Company intends to furnish its stockholders with annual reports containing audited financial statements as soon as practicable at the end of each fiscal year. The Company's fiscal year ends on December 31. In addition, the Company may from time to time, issue unaudited interim reports and financial statements.
Dividends. The payment by the Company of dividends, if any, in the future, rests within the discretion of its Board of Directors and will depend, among other things, upon the Company's earnings, its capital requirements and its financial condition, as well as other relevant factors. The Company has not declared any cash dividends since inception, and has no present intention of paying any cash dividends on its Common Stock in the foreseeable future, as it intends to use earnings, if any, to generate growth.
DESCRIPTION OF SECURITIES
Common Stock. The Company is authorized to issue twenty-five million (25,000,000) shares of Common Stock, $.001 par value per share, of which 1,026,686 shares were issued and outstanding as of the date of this Document. Each outstanding share of Common Stock is entitled to one (1) vote, either in person or by proxy, on all matters that may be voted upon the owners thereof at meetings of the stockholders.
The holders of Common Stock (i) have equal ratable rights to dividends from funds legally available therefor, when and if declared by the Board of Directors of the Company; (ii) are entitled to share ratably in all of the assets of the Company available for distribution to holders of Common Stock upon liquidation, dissolution or winding up of the affairs of the Company; (iii) do not have preemptive, subscription or conversion rights, or redemption or sinking fund provisions applicable thereto; and (iv) are entitled to one non-cumulative vote per share on all matters on which stockholders may vote at all meetings of stockholders.
The holders of shares of Common Stock of the Company do not have cumulative voting rights, which means that the holders of more than 50% of such outstanding shares, voting for the election of directors, can elect all directors of the Company if they so choose and, in such event, the holders of the remaining shares will not be able to elect any of the Company's directors.
UNDERWRITING
The Shares are offered on a "best efforts" basis for the 10,000,000 shares at a purchase price of $0.10 per Share. The Company may pay to brokers/finders a fee of 10% as commission.
All funds received with respect to the Shares which may be sold will be immediately deposited with the Company (see "Use of Proceeds"). The Shares will be sold fully paid only. Stock certificates will be issued to purchasers only when the proceeds from the sale of the Shares are received by the Company. This Offering will terminate 120 days from the date hereof unless extended by the Company.
INSOFAR AS INDEMNIFICATION FOR LIABILITIES ARISING UNDER THE ACT MAY BE PERMITTED TO DIRECTORS, OFFICERS OR PERSONS CONTROLLING THE COMPANY PURSUANT TO THE FOREGOING PROVISIONS, THE COMPANY HAS BEEN INFORMED THAT, IN THE OPINION OF THE SECURITIES AND EXCHANGE COMMISSION, SUCH INDEMNIFICATION IS AGAINST PUBLIC POLICY AS EXPRESSED IN THE ACT AND IS THEREFORE UNENFORCEABLE.
LITIGATION
The Company is not presently a party to any litigation, nor to the knowledge of management is any litigation threatened against the Company which may materially affect the Company. |
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| To: jjs64 who wrote (418) | 12/3/2001 7:37:40 PM | | From: StockDung | | | | CLASSIC 1996 EDWARD WILLIAMSON
Fifth Avenue Stock Report
web.archive.org
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Everyone will be talking about, “November of 1996” (unless December turns out to be even better). The Dow Jones Industrial Average had the largest one-month point gain in its history, rising 492 points or an increase of 8.2% as it closed Friday at 6,521.70. The Standard & Poor’s 500 Index rose more than 51-points, an increase of 7.3%. Mr. Richard McCabe, a market analyst with Merrill Lynch said, “The best thing about this record month is that it is a leading indicator. Historically, it kicks off the best six months of the year for stocks. And December and January are among the top three.”
Mr. Scott Bleier, Chief Investment Strategist at Prime Charter, was quoted by Dow Jones & Company as saying, “In my 10-years in the business I have never seen a year that was as good for Wall Street as it was for Main Street. Business is good, people are working and happy, banks are doing fine, and farmers aren’t suffering.” Mr. Alfred E. Goldman, Director of Technical Research at A.G. Edwards & Sons, however, said investors should treat the market as if the current trend in place will last forever. He said, “The height of the market doesn’t kill bulls. It’s the unexpected event, like a rise in interest rates or an unexpected upside orgy, that spells its demise.”
Market insiders expect stock prices to climb through the fourth quarter and into early 1997.
Company Updates
Telecomm Industries Corp. (OTC: TCMM)
The Company announced November 19th that in its third quarter, ending September 30, 1996, it earned $161,944 or 2-cents per share on revenue of $2,588,107, an increase of 117-percent in revenue and an increase of 316-percent in earnings, compared to revenue of $1,189,047 and earnings of $4,959 in the year ago quarter. The Company said for the nine-months ending September 30, 1996 it earned $445,604 or 5-cents per share on revenue of $6,834,289, an increase of 76-percent in revenue and an increase of 72-percent in earnings compared to the earnings of $259,259 or 3-cents per share on revenue of $3,876,394 for the same period last year. The Company also said that at September 30, 1996 its total assets were $4,791,663, and its total shareholders’ equity was $2,371,835. Telecomm Industries Corporation is Ameritech’s (NYSE: AIT) largest voice and data distributor, selling voice, data, cellular, video, and telephone information solutions in Illinois, Ohio, Indiana, Michigan and Wisconsin. TCMM closed Friday at $1.75, up 12.5-cents. Due to its earnings and revenue growth rate we rate TCMM a strong buy and have set a $5.00 target sell price.
OMAP Holdings Incorporated (OTC: OMHI)
We really blew it when we recommended OMHI as a strong buy during September and again in early October. You may remember that the stock had dropped from a high of $5.00 to a low of 12.5-cents. We issued a strong buy at that time and the stock jumped to 50-cents bid, 75-cents asked in a matter of days. Then, just as quickly, it sank to 4.5-cents and then rallied back to 10-cents, where it is now. What happened? We wanted to know too, as we had acquired a large position ourselves. According to the Company, it sold about 3.5 million shares of Regulation S stock back in May, 1996 to some off-shore investors at 12.5-cents per share. About 2.0 million additional shares were also sold to a different group of off-share investors a few months ago at 7.5-cents per share. It seems these shares found their way back into the market. Trouble was, they found their way back all at once, and that’s why the stock dropped so much so fast. The market could not absorb that many shares in a matter of days, so the market makers simply lowered their bids and bought the stock at lower and lower prices until the selling stopped a few days ago. The Company’s shares still have a book value of more than 22-cents and, in our opinion, should be trading at 75-cents. The stock closed Friday at 9-cents bid, 11-cents asked. Last trade was at 11-cents. We continue our strong buy rating and continue our target selling price of 75-cents.
Advanced Plant Pharmaceuticals (OTC: APPI)
The Company completed its one-for-one common stock dividend November 25th. APPI is the first and only company ever to receive investigational new drug (IND) status from the FDA on a plant pharmaceutical. The Company’s new drug, ABAVCA, for AIDS, is currently beginning Phase I-II studies in human clinical trials. The Company is also developing whole plant drugs for leukemia and general cancers. APPI closed Friday at 22-cents, down 1-cent. We rate this stock highly speculative and therefore only suitable for those who can afford to lose their entire investment. The AIDS drug will be a huge hit or a complete flop. Due to the involvement of the physicians at The Albert Einstein College of Medicine, we hope for the “huge hit”.
Tianrong Building Material Holdings, Ltd.
(OTC Bulletin Board: TNRG)
announced on November 14th that it has agreed to acquire International Construction Technologies (ICT), an Alberta, Canada-based private company specializing in advanced masonry construction technology. Tianrong is acquiring ICT to further complement its ongoing construction activities in China and India. Tianrong will assume existing licensing contracts of ICT with IMSI, Inc., Scottsdale, Arizona, for the patented IMSI Block system. IMSI (Insulated Masonry Block System) manufactures masonry building block used for loadbearing and non-loadbearing blocks for single or multi-story building construction. TNRG stock closed Friday at 31-cents. We rate the stock a strong buy for long-term investors only and have set a target selling price of $3.00.
Integrated Healthcare Systems (OTC:IGHS)
In a conference call with analysts October 24th, the Company’s Chairman, Michael Black said, “The Company expects to see significant revenue and earnings increases for calendar year 1997 and a positive earnings per share number. The Company expects to operate profitably in the first quarter of 1997”. We rate IGHS a strong buy and have set a target sell price of $6.00. The stock closed Friday unchanged at $1.75 but up 50-cents for the week. The 52-week trading range has been $1.25 to $10.50.
New Situations
CEA LAB, Inc
This public-owned company was inactive until October, 1996 when it acquired Williamson & Associates, Fifth Avenue Communications (publisher of this report), Rose Hill Golf Resorts, Andros Island Hotel & Casino, and stocks in about 70 public companies. The Company’s unaudited financials at October 31, 1996 reflect total assets of $3,142,927 and shareholders’ equity of $2,703,036. The Company expects its stock to begin first trading on the OTC Bulletin Board in December, and later move to the NASDAQ SmallCap System. No trading symbol had been assigned at press time. The Company is making an offering of 300,000 common shares, priced at $3.00 per share, in a Regulation D(504) offering. The Company is making the offering only to accredited investors in states where the offering has been approved for sale. The Company’s telephone number is 800-992-6616. The Company’s fax number is 316-688-0998.
Financial Focus Online, Inc.
The Company (f/n/a Mutual Fund Information Services) is making an offering of 300,000 common shares, priced at $3.00 per share, to accredited investors only in the states where the offering has been approved, via a Reg D(504) offering. The Company delivers access to financial information via the Internet for equities, mutual funds and Initial Public Offerings (IPO’s). The Company’s telephone number is 212-968-8700. The fax number is 212-968-8793.
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| To: afrayem onigwecher who wrote (413) | 1/24/2002 10:12:08 AM | | From: StockDung | | | | February 16, 2001 SEC moves against LV tech executive
By Richard N. Velotta
<velotta@lasvegassun.com>
LAS VEGAS SUNA Securities and Exchange Commission order has been issued against the former chief executive officer of a Las Vegas Internet software firm that once was one of the showcases of Southern Nevada's bid to become the "Silicon Oasis."The Securities and Exchange Commission on Wednesday issued the order against Michael A. Calderone, the former top executive of Preference Technologies Inc., which formerly operated as StockUp.com.An SEC official said today there was no fine or other sanctions against Calderone.Nancy Grunberg, an assistant director in the SEC's Division of Enforcement, said she could not comment on how the matter involving Calderone came to the agency's attention.While heading StockUp, Calderone, 40, Las Vegas, also was the president and sole shareholder of Marketing Direct Concepts Inc., which the SEC said violated federal securities rules by failing to disclose it received compensation for "advertorials" it produced promoting other public companies.The SEC has accepted a settlement offer from Calderone in which he does not admit or deny the accusations in exchange for acknowledging the cease-and-desist order.Calderone has an unpublished phone number and could not be reached for comment.His attorney, Irving Einhorn, Los Angeles, said Calderone "had a terrific idea that didn't work out for him.""He's not in a position to say anything because of the terms of the settlement," Einhorn said today. "It was one violation that happened some time ago and the fact there was no penalty, no finances disgorged, I think, speaks volumes."According to an SEC filing, Marketing Direct Concepts (MDC) produced a series of "advertorials" -- paid advertisements resembling news stories -- for inflight magazines.The advertorials, promoting Texas American Group Inc., Diversifax Inc., Chadmoore Wireless Group Inc. and Total World Telecommunications Inc., were published in late 1996 and early 1997 and "were deficient because they failed to disclose the specific fact of and the amount of compensation received for their preparation and publication," the SEC order says.The SEC filing focused on an ad for Texas American Group, which paid MDC $135,000 and 1.4 million shares of unregistered common stock.The Texas American advertorial, published in July 1996, "contained false claims concerning TAG's purported assets, including a claim that TAG had acquired the second largest independent retailer in the United Kingdom and that TAG had 'close to half a billion dollars in revenue,' " the SEC said.The SEC filed suit against Texas American in August, seeking a permanent injunction against future violations of federal securities laws and civil penalties. The suit alleges that the company, which lists its headquarters in Verdi, was involved in a fraudulent scheme to promote its stock.Among the assets the company falsely claimed it had, the SEC said, were a vacation resort in the Canary Islands, a software program for Internet lottery and casino games designed for multilingual access, a Nevada-based hotel development and management company and a London pathology testing service.Calderone, who formed StockUp.com as an Internet-based financial information service, oversaw its transformation a year ago to Preference Technologies Inc., a multifaceted Internet information provider.The transition was marked by an event attended by Lt. Gov. Lorraine Hunt, Las Vegas Mayor Oscar Goodman, Las Vegas Chamber of Commerce Board Chairman Bob Forbuss and Nevada Development Authority President Sommer Hollingsworth. It was at that event that Hollingsworth said companies like Preference could lead to the development of the "Silicon Oasis" in Southern Nevada.But since then, Preference's fortunes have nose-dived.Calderone was replaced by Forbuss as chief executive officer in October and in November, the company's board of directors laid off 80 of the company's 113 employees. Since then, President and Chief Operating Officer Bill Louden has left the company and Forbuss, still a member of the board of directors, said the chairman of the board is now Todd Rusteman, president of GR Capital Cos.Rusteman, who maintains an office in Newport Beach, Calif., could not be reached for comment about the status of the company and employees at the Las Vegas office did not answer questions
lasvegassun.com |
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| To: jjs64 who wrote (418) | 9/12/2002 1:55:53 PM | | From: StockDung | | | | Poor ED TYPE: Chapter 7
In Re WILLIAMSON,EDWARD B, et al
***THIS DATA IS FOR INFORMATIONAL PURPOSES ONLY***
UNITED STATES BANKRUPTCY COURT
DISTRICT OF KANSAS - WICHITA
In Re WILLIAMSON,EDWARD B, et al
COUNTY: SEDGWICK
PETITIONER: WILLIAMSON,EDWARD B & WILLIAMSON,GEORGANNA L
511-44-2998 & 514-62-3567
7711 KILLARNEY CT
WICHITA, KS 67206
dba FIFTH AVENUE COMMUNICATIONS
dba WILLIAMSON AND ASSOCIATES
NUMBER: 0115726
FILED: 11/30/2001
TYPE: Chapter 7
STATUS: Discharged
FIRST MEETING DATE: 01/08/2002
DISCHARGE/DISMISS DATE: 04/29/2002
HEARING TIME: 10:00 A.M.
HEARING LOCATION: ROOM B 56
ATTORNEY: WILLIAM H ZIMMERMAN JR
150 N MAIN ST #400
WICHITA, KS 67202
PHONE NO: 316-303-0100
FIRM: CASE MOSES ZIMMERMAN AND WILSON
ASSETS AVAILABLE FOR DISTRIBUTION: NO |
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| To: jjs64 who wrote (418) | 9/23/2002 7:25:05 PM | | From: StockDung | | | | 'Trojan' Company Changes Horses
wired.com
Contact the author: mdelio@earthlink.net
'Trojan' Company Changes Horses
by Michael Delio
Early on the morning of Dec. 28, advertising executive Michael Calderone came to the unhappy realization that many people believed him to be the embodiment of all that is evil on the Internet.
Calderone is the president of NetupProfits, an online ad agency that, among other things, distributes a lottery game program called ClickTillUWin
Users of some versions of file-sharing applications BearShare, LimeWire, Kazaa and Grokster noticed in late December that a small program called "Dlder" had been installed on their computers without their permission. The program appeared to be trying to track which websites they viewed and reporting that information to a Web server.
The users soon correctly connected the appearance of Dlder to the "ClickTillUWin" game that had been bundled with the filesharing applications.
So some of those irate users then attacked Calderone's ClickTillUWin and NetupProfits sites, forcing him to stop tracking user movements. Calderone's websites were hit with a number of denial-of-service attacks, and were often off-line from December 28th through the first weekend of January. He said threatening phone calls to both his business and unlisted home number soon followed.
"The people who attacked us knew what they were doing. Having the websites down made it much more difficult for people to find out who were are and what we do -- that we are a legitimate business," Calderone said.
Calderone said that people were reacting to Dlder initially being classified as a Trojan by several antivirus companies. Nearly all of the companies have since removed that label, calling it "non-threatening."
"We have a full explanation of what the program does on our site, but no one could access it so they had to rely on what the antivirus companies said."
Calderone said his contracts with distributors who bundle ClickTillUWin with other software specify that the program cannot be installed on users' systems without first disclosing what ClickTillUWin does and obtaining permission from the user.
Calderone does not dispute that in some cases ClickTillUWin was automatically installed without proper disclosure or consent.
"We work with a lot of companies," Calderone said. "Distributors get a payment from us every time the ClickTillUWin application is installed. So you can see why one unscrupulous person might decide to delete the consent feature."
Calderone's primary distribution contract is with Internet telephony vendor Net2Phone. A spokesperson for the company confirmed that the contract with Calderone specifies full disclosure of the program's tracking features, and requires that users can choose whether to install the program.
"Net2Phone and its affiliated partners have had a very long and fruitful relationship bundling the ClickTillUWin product," said Will Margiloff, vice president of sales at Net2Phone.
"(Calderone) asked Net2Phone to help increase the distribution of the ClickTillUWin product through additional partners outside of the current group of Net2Phone affiliated partners. Net2Phone, in turn provided the product to various distributors under the aforementioned conditions. Unfortunately, somewhere along the line the ball was dropped and various forms of bundling took place which didn't coincide with the initial opt-in and/or opt-out basis."
Calderone said that he wasn't aware that ClickTillUWin was being installed without consent until his inbox started flooding with e-mails from disgruntled people who had read about the "ClickTillUWin" Trojan in filesharing discussion forums.
Calderone said most of the e-mail accused him of hacking into their computers to spy, and warned that in return his company's website would be attacked and his business would be ruined.
Symantec was one of the antivirus companies that pulled all references to the Dlder Trojan from their lists of recently discovered viruses and Trojans.
"We were approached by the owner of this program who communicated the intent of the program and we were satisfied with this," Steve Trilling, director of research for Symantec Security Response, said regarding changing Dlder's designation.
F-Secure amended its original Dlder write-up slightly, but still refers to it as a "spyware-trojan" program.
"Yes, we still categorize it as a Trojan, as we define Trojans to have some unwanted and undocumented effect -- basically that a program does something else than it claims to -- and that it is malicious," Mikko Hyppönen, Manager of Anti-Virus Research for F-Secure, said.
F-Secure researchers believe that the method that ClickTillUWin uses to track information could compromise sensitive information.
The ClickTillUWin application tracks the websites that its players visit so that the game can display advertising targeted to a user's interests, Calderone said. For example, someone who repeatedly visits automobile company websites would be served car ads.
But F-Secure said if users access a Web page in an intranet or a password-protected site that stores any user info to the URL, ClickTillUWin might pass this data back to ClickTillUWin in unencrypted form.
On Wednesday, Calderone said he has decided to pull the URL tracking capabilities out of the ClickTillUWin program.
"We are going to eliminate the URL tracking portion of the game. We are not doing this because what we are doing is wrong, but because of all of the controversy around that one point," Calderone said. "I have always believed that you cannot fight city hall."
"I don’t have the resources to challenge those who believe that we are doing something that they don’t agree with," Calderone said. What we will do now is offer people the opportunity to receive additional lottery tickets in exchange for answering a few questions. And if a person does not want to provide that information, they can still play. They will just see very general ads." |
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| To: jjs64 who wrote (418) | 2/1/2003 4:04:44 PM | | From: StockDung | | | | WASNT THIS THE STOCK THAT WAS MENTIONED IN THE MOB ON WALLSTREET STORY?
Owned and Operated by Marketing Direct Concepts, Inc.
© Copyright 1996 Marketing Direct Concepts, Inc. All rights reserved.
web.archive.org
Total World Telecommunications, Inc.
Current Date/Time: Mon Jun 2 18:04:14 EDT 1997 (Delayed Data) Symbol Last Change Bid Ask High Low Volume
TWTI 11/16 1/32 21/32 11/16 27/32 21/32 1182500
A SUPERIOR LONG DISTANCE INVESTMENT!
The switch is on, and the resources are there for a profitable future.
INVESTOR’S OVERVIEW
· Worldwide telecommunications deregulation has created enormous growth opportunities. The industry is worth $150 billion and is rapidly expanding. Markets are opening throughout the world, as nations rush to bring their phone networks into the 21st century.
· Virtually every phone call, every Internet access call, every fax, every e-mail requires a phone line and generates revenue for the telecommunications industry.
Total World Telecommunications, Inc. (NASDAQ Small Cap:TWTI), through its subsidiary Total World Telecom (TWT), one of the nation’s 20 largest long distance carriers, is positioned to profit from the worldwide boom in telecommunications:
*TWT owns 10 Siemens Stromberg-Carlson tandem switches in major U.S. cities, serving over 80% of the U.S. market with a state-of-the-art digital and fiber optic network.
*TWT’s revenues have grown dramatically since its inception in 1991 with revenues for fiscal 1997 projected to exceed $100 million.
*TWTI recently acquired NETTouch Communications, Inc., of Dallas, Texas, which markets under the brand name N’Touch, in an all cash transaction of $7.2 million.
*TWT has a proven ability to attract international business and has developed clients worldwide from the Pacific Rim to South America and Europe.
THE COMPANY
Based in Houston, TWT was founded in 1991and set out to build an infrastructure of high quality Siemens tandem switches throughout the United States to support a state-of-the-art fully redundant fiber optic network. By year end 1996, 10 switches were in place, serving over 80% of the country. This network serves the telecommunications needs of the increasingly price conscious and technologically savvy consumer by providing a wide array of services, including flat rate pricing, dedicated access, and 800 toll-free inbound calls.
In the summer of 1996, TWT joined forces with publicly traded International Standards Group Limited and changed ISGI to TWTI. This strategic move allowed TWT to access public markets and establish itself as a viable player in the global telecommunications markets. In December 1996, TWTI acquired NETTouch Communications and its licenses to the virtual office technology of Telecommunications Resources, Inc. This important step in its drive to become a major player in global telecommunications allows TWTI to offer voice mail, paging, text to screen e-mail, and a host of other virtual office services to the home-based business market. TWT’s utilization of this technology will add significantly to the company’s already high growth.
Now, with the switching infrastructure in place to attract and sustain quality business, the financial resources to sustain its tremendous growth, and the ability to provide virtual office services, TWT seeks to increase its customer base through the efforts of a growing team of satisfied agents and resellers and by strategic acquisitions.
THE MARKET
The telecommunications industry is booming. Fueled by deregulation here and abroad, driven by technological revolution, telecommunications companies are no longer the boring phone company of the past. Think of it: every time you make or receive a phone call, each time someone logs on to the Internet, whenever you send a fax or receive an e-mail, the telecommunications industry earns additional revenue. And with every video conference, cellular phone, or other technological innovation, the opportunity for revenue increases.
According to the International Telecommunications Union, the nations of the world plan on spending approximately $60 billion per year through the year 2000 to build 310 million main lines, two thirds of them in developing countries, home to 80% of the world’s population.* Why? Because countries now recognize that economies won’t develop and incomes won’t increase without top-notch communications systems.
*Business Week, Sept 18, 1995, "The Last Frontier," p. 100.
BUSINESS STRATEGY
Total World Telecom plans on being one of a handful of worldwide communications gatekeepers, offering everything from dial tone to voice recognition to domestic and international customers.
· To that end, TWT has switches in New York, Washington D.C., Miami, Houston, Dallas, Atlanta, Chicago, Kansas City, Los Angeles, and Seattle, with more planned in both domestic and international markets.
· To insure future growth, TWT entered the public finance markets.
· To provide additional communications services and features, TWT acquired the rights to virtual office technology.
· To further enhance its high growth, TWTI has targeted 6 to 8 acquisitions within the next 12 to 18 months.
Every telecommunications carrier with less switching capacity--and there are many--and every reseller looking for a state-of-the-art, fully redundant fiber optic network is a potential customer. TWT will continue to develop its domestic business while expanding further into Europe, Mexico, South Africa, Central America, South America, and Asia. TWT is positioned to take advantage of the future. TWTI CEO Joseph Lents states: "As we move towards the next millenium, our corporate mandate is to not only meet our revenue projections but to exceed them."
MANAGEMENT
To guide it into the 21st century, TWTI has a team of experienced professionals committed to delivering optimum service to its customers.
Joseph L. Lents has been a Director of Total World Telecommunications, formerly ISGI, since January 15, 1991 and Chairman of the Board and Chief Executive Officer since March 29, 1991. Mr. Lents was the founder, Chairman of the Board, President, and Chief Executive Officer of FSGI since November 1, 1989. Mr. Lents is also co-founder of Nearman & Lents, CPA’s, which was organized in May 1979. Mr. Lents co-founded the National Association of Credit Union Supervisory and Auditing Committees ("NACUSAC"), which is the only national organization devoted entirely to supervisory committees and which includes a membership of over 200 credit unions.
Donald W. Booth has been a Director of TWTI since August 2, 1996 and President since November 1, 1996. In 1991, Mr. Booth founded Total World Telecom and was President until it was acquired by TWTI in June 1996. Between 1988 and 1991, Mr. Booth was Vice President of Sales for Cypress Telecommunications, Inc. Mr. Booth has been in the telecommunications business for more than fifteen years.
Arnold Salinas has been a Director of TWTI since August 2, 1996 and Executive Vice President of Sales and Marketing of Total World Telecom, Houston, since July 1, 1996. In 1993, Mr. Salinas co-founded and was President of Global Communications Group, Inc., a company that provided telecommunications services to Eastern European countries. Mr. Salinas has more than fifteen years telecommunications experience.
Steve Reemts is the Executive Vice President of Operations of Total World Telecom. He has over fourteen years experience in the telecommunications industry, including military service. As a member of the U.S. military, he was part of a team that tested and certified for use all digital switching and transmission equipment used by the military in tactical and fixed station applications.
FOR FURTHER INFORMATION CALL: 1-888-661-4744
TOTAL WORLD TELECOMMUNICATIONS, INC.
3200 North Military Trail
Suite 300
Boca Raton, Florida 33431
The StockUp Report does not constitute a solicitation to buy the securities of any company. This Report is provided to you for informational purposes only. MDC has been compensated by the above referenced company in cash and also has a position in its securities, but those securities are restricted from sale for at least one year from the contract signing date. Any profile information about the above referenced company has been provided by the company. MDC makes no claim to the accuracy of that information. MDC does confirm the marketing program that is underway. As with any investment, you should consult a registered investment advisor.
Owned and Operated by Marketing Direct Concepts, Inc.
© Copyright 1996 Marketing Direct Concepts, Inc. All rights reserved. |
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| To: afrayem onigwecher who started this subject | 2/1/2003 4:19:01 PM | | From: StockDung | | | | IVSO: DJN: DJ IN THE MONEY: Investco CEO's Link To 'Mob On Wall Street'
(Dow Jones 05/06 13:55:47)
By Carol S. Remond
A Dow Jones Newswires ColumnNEW YORK (Dow Jones)- Joseph Lents has a problem.
U.S. securities regulators have halted trading in the shares of the latest
company he runs, a financial startup called Investco Inc. (INVSO).
That trading halt follows a report by this newswire that a key acquisition
the company says it made never happened.
But it's not the first time a company headed by Lents has caught the
attention of federal authorities. In the mid-1990s, Lents entered into a
deal with a man who was later identified as a figure in the infamous "Mob on
Wall Street" affair.
The Lents involvement in that case began in the summer of 1994 after an
aggressive short seller named Philip Gurian began putting pressure on the
shares of the company Lents ran at that time called International Standards
Group Inc.
Gurian recalls having his first talk with Lents while Gurian was vacationing
at the swanky Byblos Hotel in St. Tropez on the French Riviera.
During that telephone conversation, according to Gurian, the two agreed that
Gurian would stop short selling shares of International Standards Group. In
exchange for that promise, Lents would issue shares of International
Standards Group at a steep discount to firms in the Bahamas controlled by
Gurian and his associates under a U.S. securities provision called
Regulation S, which allows sales of unregistered stock to foreign investors.Gurian and four others were charged in 1999 in a 21-count federal indictment
including charges of mail fraud, wire fraud, securities fraud, interference
with commerce by extortion, conspiracy to commit money laundering and
witness tampering. Lents has never been charged with wrongdoing although the
stock transactions with firms controlled by Gurian and others were mentioned
in the federal indictment. Lents has not been available to answer questions.
A lawyer representing Lents has declined to comment on Lents' previous
involvement with Gurian.
Gurian pleaded guilty to one count of conspiracy to commit mail fraud, wire
fraud and securities fraud and one count of mail fraud. He is awaiting
sentencing.
According to the indictment by the U.S. District Court for the Middle
District of Florida, here's a typical way the scam worked:
Several small U.S. companies issued deeply discounted stock under Regulation
S to several mob-controlled firms in the Bahamas. These firms would turn
around and, through two Florida companies secretly controlled by Gurian -
Sovereign Equity Management Corp. and Falcon Trading Group Inc.- sell the
shares back to the U.S. public at market value, reaping a huge profit.
Published reports have indicated that Gurian controlled Sovereign Equity and
Falcon Trading on behalf of Philip Abramo, a man who federal investigators
identified as a captain in the DeCavalcante organized crime family from New
Jersey.
The 1999 indictment alleges that around November 1994, Lents filed false and
fraudulent subscription agreements for a Regulation S distribution of stock
to Caspian Consulting Ltd., one of the Bahamas corporations set up by Gurian
and others.
The indictment also states that between Jan. 1, 1995, and July 23, 1997,
Lents filed false and fraudulent Regulation S registration statements with
the Securities and Exchange Commission, selling International Standards
Group stock for 50 cents a share to Caspian Consulting, Maraval & Associates
Ltd. and Limelight Ltd., two other Bahamas corporations.
The SEC declines to comment on International Standards Group and its
issuance of Regulation S shares.
Lents later told the government that Gurian threatened his life if he told
the truth to federal agents, according to the indictment. Gurian told Dow
Jones Newswires he never threatened Lents.
SEC filings show that from September 1995 to December 1996, International
Standards Group and its successor company, Total World Telecommunications
Inc., sold $37.9 million worth of stock under Regulation S.
So much stock that by September 1996, Caspian Consulting and another
Bahamian firm called Reinerman Holdings Ltd., had become major shareholders
of International Standards Group, seemingly controlling 3% and 6% of the
company's stock, respectively.
International Standards Group's transactions with mob-controlled offshore
companies didn't stop at Regulation S stock issuance. A press release shows
that Lents' company entered into a joint venture with Maraval in September
1995 to market real estate and financial services via the Internet through
Florida Homes Info-Net, a wholly owned subsidiary of International Standards
Group.
The SEC amended Regulation S in early 1998, acknowledging in a release to
the public that it's "been used as a means of perpetrating fraudulent and
manipulative schemes, especially schemes involving the securities of thinly
capitalized or 'microcap companies'." Specifically, the SEC lengthened the
period during which offshore buyers of U.S. securities must hold shares
bought under Regulation S to one year from 40 days, making it much more
difficult to quickly profit by reselling those securities.
The 1999 Federal indictment that detailed Lents' Regulation S activity named
five defendants: Gurian, Abramo, Glen Vittor, Louis Consalvo and Barry
Gesser. Abramo and his bother-in-law Consalvo were separately indicted in
2000 in New York on charges including securities fraud and murder. Abramo
and Consalvo are trying to withdraw their Florida plea agreements.
Now, Lents is chief executive of Investco. Trading in Investco's shares has
been halted by the SEC until May 10. As reported by Dow Jones Newswires last
month, the reported acquisition of a Costa Rican insurance company by
Investco never took place, a fact the company failed to tell investors. The
company had touted the purchase in press releases as the cornerstone to its
plan to transform itself into a financial services provider.
Dow Jones Newswires also raised a number of questions about the number of
Investco shares outstanding and about Michael Zapetis, chairman of
Investco's controlling shareholder, First International Finance Corp.
Zapetis is a convicted drug smuggler who had a couple of run-ins with
Florida state banking regulators, none of which was disclosed to Investco
shareholders in any of the company's public SEC filings or press releases.
Lents has not been available for comment about Investco's activities. And
the SEC declined to comment further about the trading halt.
On Monday, the SEC halt of trading in Investco stock appears to have cost
the company its listing on the Over-The-Counter Bulletin Board. Nasdaq
delisted the company because there was no active quote for Investco shares
for four consecutive days.
By Carol S. Remond; Dow Jones Newswires; 201 938 2074;
carol.remond@dowjones.com. |
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