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?

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.

Just Who Buys These Things – Tree-X Edition (TRE CN)

While he is in no way as moronic as the Glickenhausen, who continue to defend Chinese reverse-merger fraud posterboy China Agritech (CAGC) (Read Bronte Capital on China Agritech here, read about CAGC‘s CFO Gareth Yau-Sing Tang, superstar Director Gene Michael Bennett, and IR shill Kevin Theiss, and don’t miss the sad story of Jesse Glickenhaus here), Christopher Davis of Davis Advisors, another storied family firm, certainly owes his remaining clients an explanation. A big explanation as to why they owned so much (17%) of one of the biggest scams to come out of China, Sino-Forest (TRE CN), affectionately known as Tree-X.

Presenting Lewis Fan, ex-Rodman analyst? (RODM)

A mid-weekend peek at the Rodman & Renshaw (RODM) website shows that, as predicted on Friday by Bloomberg and Dow Jones, the sad excuse that passed for a research group on Chinese companies has been shuttered. Surprisingly, Amit Dayal is still listed as an employee, but the name of another Rodman Chinese analyst cheerleader is missing. Mr. Lewis Fan is nowhere to be found on the RODM website now, but here is a link to a cahced copy of the old site. Your author also captured a copy of Lewis‘ coverage list as of the 14th of October. It is a who’s-who of reverse merger wonders, not one of which Lewis thought was a sell.

The list is a cheerleading performance rivaling Matthew Kaplan‘s love of Repros Therapeutics. There is Irving Kau’s SEED, Bryant Cragun linked SCOK, Christopher Wenbing Wang‘s GSI, Zhongpin, a stock even Global Hunter doesn’t love, and even Jesse Glickenhaus‘ favourite stock Crazy Gareth and Gene Michael Bennett‘s China Agritech. Full list after the jump:

Update – AgFeed Industries and Benjamin Wei aka Wey (FEED)

BuyersStrike! readers may recall this post here, from the middle of May, which introduced a wretched promoter of sleazy Chinese reverse mergers and one of his pets, and the surprise appearance of Dick Fuld.

The promoter is Benjamin Wey aka Benjamin Wei aka Benjamin Tianbing Wei, who is also responsible for such lovely Chinese companies as Harbin Electric, Inc. (HRBN) and China Natural Gas (CHNG), both of whom we explored yesterday and previously here.

Today Benny is the subject of a must-read, fantastic piece by Roddy Boyd at The Financial Investigator, available here.

One of Benny’s weaker deals is a wholly unimpressive Chinese reverse merger company called AgFeed Industries (FEED). In May there was a rash of insider selling by the Chinese nationals who formerly served as company management.

Last night, AgFeed announced, like so many frauds before, that a very Special Committee of directors has been formed to investigate accounting issues:

NEW YORK, Sept. 29, 2011 /PRNewswire-Asia/ — AgFeed Industries, Inc. (Nasdaq:FEED – News) (“AgFeed” or the “Company”) announced today that its Board of Directors has established a special committee to investigate the accounting relating to certain of the Company’s Chinese farm assets (acquired during 2007 and 2008) used in its hog production business, as well as the validity and collectability of certain of the Company’s accounts receivables relating to its animal nutrition business in China and any other issues that may arise during the course of the investigation.

Perhaps the only question a reasonable investor, or a competent Board Member should ask is “Are the books as cooked through as properly prepared pork?” Is anyone even remotely surprised?

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 – Puda Coal fraud knows no bounds. (PUDA)

A revealing press release was issued shortly before the close of trading on the 26th of September by Chinese fraud Puda Coal, Inc. (PUDA). PUDA, which was spawned in a reverse merger with Vero Beach, FL based shell Purezza Group (PRZA) all the way back in July 2005, has been touched on before here at BuyersStrike!, as it is one of many crap companies owned by Chinese kool-aid drinker Peter Siris‘s Guerilla Capital.

PUDA, which has already been the subject of a summer long stock halt, a delisting, and a sham buyout offer, revealed that its CEO had resigned, and, by the way, forged documents which he had given to the SEC.

TAIYUAN, China, Sept. 26, 2011 /PRNewswire-Asia-FirstCall/ — On September 23, 2011, the Board of Directors of Puda Coal, Inc. (the “Company”; Other OTC: PUDA.PK) received a letter from the Company’s Chief Executive Officer (“CEO”), Liping Zhu, dated September 22, 2011. The letter states that Mr. Zhu resigns from his positions as the  Company’s CEO and as a director on the Board. The letter also states that, on August 29, 2011, Mr. Zhu provided a false letter from CITIC Trust Co. Ltd. (“CITIC”) to  the U.S. Securities and Exchange Commission (“SEC”) and to counsel for Ming Zhao, Chairman of Puda Coal.

Not quite three weeks prior, on the 7th of September, the company issued this press release, revealing that Chairman Ming is in hot water:

TAIYUAN, China, Sept. 7, 2011 /PRNewswire-Asia-FirstCall/ — On September 1, 2011 the staff of the United States Securities and Exchange Commission (the “SEC”) informed Ming Zhao, the Chairman of the Board of Puda Coal, Inc., through a Wells Notice confirming an August 31, 2011 telephone conversation, of the SEC staff’s intention to recommend that the SEC file a civil action in federal court against Mr. Zhao, alleging that Mr. Zhao violated   certain provisions of the federal securities laws.

So which is the bigger surprise? That the management of a reverse-merger fraud like PUDA would lie to the SEC or that the SEC is actually trying to bring a case, one in which the Chinese respondents will likely never bother to show up.

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 Slow Road to Redemption – Global Pumper’s Joe Giamichael (HOGS)

Lost in the madness of 24 hour news coverage of Mean Irene, was the shocking downgrade on the 26th of August, of Zhongpin (HOGS), a Chinese pork processor and distributor, by notorious Chinese reverse merger schlock shop Global Hunter‘s Managing Director of China Research, Joe Giamichael. Shocking because Joe Giamichael had his own Ping Luo moment, defending scam YUII on the 15th of June. In an interview with Bloomberg, super analyst Giamichael fessed up that he esentially did no research at all, just believing the lies of outright crooks. Said Joe:

Quick Take – Another dirty Chinese deal halted, and another Abax “buyout” . (AUTC,CHNG)

Oh my! Another dirty Chinese reverse merger SPAC deal has been halted this afternoon, AutoChina (AUTC). This is another Jay Srivatsa, of Chardan Capital fame, buy recommendation.  As of late March, Jay had buy rating and a $40 price target on the stock. The stock was halted this afternoon at a last sale of $29.19 and a fairly healthy $575mm market cap. Naturally, one can expect both to shink considerably once trading in AUTC reopens. That makes two Jay stocks that in the news this past week. Read about Jay’s defense of Spreadtrum (SPRD) here. And here is a little bit of the awesome contained within AUTC‘s press release:

Quick Take – Chardan Capital vs. Muddy Waters (SPRD, LIWA)

Today saw the release of a short report from Muddy Waters on Chinese semiconductor company Spreadtrum (SPRD). Read the letter here.

And in the tradition of potentially career ending responses like that of LFT apologist Henry Ai, CCME booster Ping Luo, and Tree-X‘s one-time cheerleader Paul Quinn, an analyst from bucket shop Chardan Capital, Jay Srivatsa, told Bloomberg news there is “little to no merit” to the Muddy Waters report. Chardan has been responsible for such lovely Chinese companies as halted A-Power (APWR), Origin Agritech (SEED), home of CFO Irving Kau, the man who wouldn’t know a reverse-merger if he were working for one, and many more. Read about Chardan here.

Jay has a buy rating and a $31.00 price target on SPRD shares, and he is also a fan of reverse merger wonder Lihua International (LIWA) fka Plastron Acquisition I. Whom to believe, a sell-side analyst working for Chardan, a company responsible for foisting a bevy of bad Chinese merchandise onto the American markets, or Muddy Waters. Good luck Jay, you’re going to need it.

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.