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Quick Take – Humble Harold and Patrick D (SEFE, NCTW)

Yesterday we examined Humble Harold Sciotto, stock promoter extraordinaire. His resume just screamed out for further study, and your author is glad to have kept digging.

Harold’s Westpac Communications did stock promotion work, back in 2007 and 2008, for Patrick Deparini‘s Nascent Wine (NCTW). From Pinkinvesting.com, here is a partial list of the compensation:

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Humble Harold Sciotto (SEFE, ECTY, AUGT, SPDL)

In The Mass Psychology of Suckers, Parts 1 and 2, we began exploring the chronology of Sefe, Inc. (SEFE) and the players involved. We will continue with another installment in that series soon, but today let’s take a look at SEFE director “Humble” Harold Sciotto.

Harold joined the board of SEFE last summer, the June 20, 2011 8k filing announcing his arrival discussed his background:

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Like Father, Like Daughter? The Kerr Family and Sefe, Inc. – SEFE

April 25th was a busy day for Sefe, Inc. (SEFE fka MDCL). Before the open they issued a very late Form D and after the close they issued a new 8k. This new filing described a financing they had just completed, The company states:

On April 25, 2012 (“Issuance Date”), the Registrant entered into a Securities Purchase Agreement (the “SPA”), with Riverbend, LLC (the “Riverbend”), whereby Riverbend agrees to purchase, and the Registrant agrees to issue, Debentures up to a total principal amount of $2,000,000 with warrants attached to purchase up to 500,000 shares of common stock of the Registrant at $1.00 per share. Subsequent purchases shall be mutually agreed upon. Each Debenture will accrue interest on the unpaid principal of each individual Debenture at the rate of eight percent (8%) per year (computed on the basis of a 365-day year and the actual days elapsed) from the date each Debenture is created until paid. The Registrant shall have the option to repay the entire principal amount and all accrued interest at any time on or before the Due Date.

On the Issuance Date, the first closing occurred, whereby a Debenture was issued to Riverbend in the aggregate amount of $200,000. All principal and interest accrued thereupon shall be due and payable on or before April 24, 2013.

And just who is their benefactor?

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Covering their tracks? (SEFE)

Let’s take another quick break from our chronological look at current reverse-merger darling SEFE, Inc. (SEFE), to examine this morning’s Form D filing from the company.

Form D filings are required when a company attempts to raise money under one of the Reg D exemptions to the registration requirements of the SEC. Essentially, the company is attempting to sell unregistered securites. The rules are very clear, and one of the rules concerns when the Form D must be submitted:

An issuer must file a new notice with the SEC for each new offering of securities no later than 15 calendar days after the “date of first sale” of securities in the offering

So, if a company met the Reg D exemption and were to sell stock on April 10, 2012, they would need to file their Form D today.

On SEFE‘s newly filed Form D, available here, they announce that this is a new notice and they wish to raise $8mm under Rule 506. As of the date of the notice they have raised $854,500.00. Not very impressive fundraising for a company with a stock as hot as SEFE‘s.

But that is not the fascinating part. The filing gets quite interesting when one examines the date of first sale. It is April 13, 2011.

SEFE is a little less than a year delinquent on this filing. So is the company trying to cover up their tracks?

The content contained in this blog represents only the opinions of the author. The author may hold either long or short positions in securities of various companies discussed in the blog. This commentary in no way constitutes investment advice, and should never be relied on in making an investment decision, ever. This blog is not a solicitation of business: all inquiries will be ignored. The content herein is intended solely for the entertainment of the reader, and the author.

The Mass Psychology of Suckers Part 2 – Sefe, Inc. (SEFE)

When we ended The Mass Psychology of Suckers Part 1, we were examining the unique resume of SEFE (aka Midnight Candle) CFO, Patrick Deparini. At first glance he appears to be an odd choice as CFO. He had no real experience working in finance, nor in the candle business. His real job was as a paralegal at the law firm of Harold P. Gewerter, Esq. Ltd.

Harold Gewerter’s most famous client, John Edwards*, was mighty busy by the mid-00s. Not only was John the mastermind behind the CMKX fraud, but he was also behind Pinnacle Business Management (PBCM), US Canadian Minerals (UCAD), St. George Minerals (SGGM), BioTech Medics (BMCS), Global Diamond Exchange (GBDX), Equitable Mining (EQBM), OMDA Oil and Gas (OOAG), and Grand Entertainment & Music (GMSC). Read more in this excellent piece by Janice Shell, here, or go to Pacer, and read the entire USA v. Turino, Edwards, et. al. indictment of March 24, 2010.

So, perhaps some of John’s industriousness rubbed off on Patrick, for soon Patrick started his very own little shell company. In late 2004, young Patrick, then only 29, was listed as the CEO and majority shareholder of Las Vegas based Nascent Wine Company (NCTW) today a pink sheet stock that sells for less than 1/4 of a cent per share.

How did SEFE (fka MDCL) CEO, Helen C. Cary, sitting in Indio, CA and Patrick Deparini, in the offices of a sleazy law firm in Las Vegas, find one another?

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The Mass Psychology of Suckers Part 1 – Sefe, Inc. (SEFE)

Every once in a while someone will ask us here at BuyersStrike! about a small company that is, in our eyes, obviously a stock promotion. But to some it seems real. They want to believe it is real. And now is one of those times. Introducing SEFE, Inc. (SEFE), a company that hits new highs on increasing volume every single day. A company that today possesses a market cap of over $110mm, but at the end of 2011 had less than $6000.00 in the bank.

SEFE is also the newest client of Geoffrey Eiten‘s notorious stock pumping investor relations shop OTC Financial Network aka National Financial Communications, and Paul Cohen‘s ridiculous Grassroots Research aka Cohen Research. More on those two fine fellows in a bit, but first lets look at the origins of SEFE, Inc.

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Quick Take – SEC Drops the Hammer on Puda Coal (PUDA)

As we get closer to Annual Report season, one of last year’s most hilarious Chinese frauds, and silliest fake buy-out, has finally been slapped down by the SEC.

Wednesday night, the SEC issued a press release, available here, announcing the filing of a suit, SEC v. Ming Zhao and Liping Zhu, Civ No. 12-CV-1316.

Says the SEC:

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Quick Take – Goodbye Gareth (CAGC)

In a stunning developement at Chinese reverse-merger wonder China Agritech (CAGC) issued an 8K filing this morning announcing the departure of top shelf CFO Gareth Yau-Sing Tang.

On January 16, 2012, the Company accepted, effective immediately, the resignation of Mr. Yau-Sing Tang as Chief Financial Officer of the Company.

Of course, it appears that superstar director Gene Michael Bennett is still at the company. One must also wonder how CAGC apologist Jesse Glickenhaus feels about losing such an immense talent as that Crazy Gareth.

The content contained in this blog represents only the opinions of the author. The author may hold either long or short positions in securities of various companies discussed in the blog. This commentary in no way constitutes investment advice, and should never be relied on in making an investment decision, ever. This blog is not a solicitation of business: all inquiries will be ignored. The content herein is intended solely for the entertainment of the reader, and the author.

Quick Take – Dumb Auditors Edition (FEED)

Poor McGladrey, Pullen aka RSM McGladrey, the middle market accounting firm that just happened to be the auditor of now halted Chinese reverse-merger scam AgFeed‘s (FEED) admittedly fraudulent financials. Having the wool pulled over one’s eyes is embarassing enough for an auditing firm, and it makes one wonder how Deloitte and KPMG are even still in business, but at McGladrey it is so much worse. The firm, stupidly, signed off on FEED‘s 10K on 16 March 2011.

On 14 June 2011, apparently unaware that they had already been fooled by the crooks at AgFeed, the PR team at McGladrey decided to rub the Longtop Financial fraud in the face of audit firm Deloitte Touche Tohmatsu, in their biweekly “Insights” newsletter, available here. It stated:

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Quick Take – AgFeed Halted, Rats Flee, Film at 11 (FEED)

At 1:30pm today, the 19th of December, another wretched Chinese reverse-merger company, AgFeed Industries (FEED) was halted, after issuing a telling 8k filing. AgFeed, previously discussed here and here, announced that:

The facts learned in the Investigation to date indicate that the Company’s financial accounting staff and management based in China engaged in accounting improprieties during 2009 and 2010 and the first two quarters of 2011 in connection with the Company’s Chinese legacy hog production business that they concealed from the Company’s management in the United States.

The people running the investigation must be real slow learners, since this was obvious, and the local management must be incredibly brazen to have continued the fraud until the middle of 2011, since it was clear in late 2010 that Chinese companies were under the microscope. There was a big management change at FEED in 2011, as well as wholesaling dumping of stock by the Chinese insiders. But foolish investors, with glazed eyes, having drunk the Kool-Aid, enamored with China seem to ignore such giant red flags. The filing continues:

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