Reverse Mergers

Naughty Naughty Nanoviricides (NNVC)

Nanoviricides (NNVC), a hype-drenched bio-dreck reverse merged into a shell called, no joke, Edot.com, is located in leafy New Haven, CT. Run by septugenarian Eugene Seymour, and recently debunked by reporter Teri Buhl (see here and here), NNVC has been touted in the past by the memorable Patrick Cox, and currently by the disgraced Tobin Smith, fired by FOX (see here) over his pumping of Petrosonic Energy (PSON).

Patrick, as many may remember, was one of the Agora stable of “writers”. So it was not a huge surprise to find a reference to Agora in NNVC’s SEC filings.

The text of the filing, however, was a huge surprise. From the July 8, 2013 8K:

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Does crime pay? (NCTW, SEFE, Kerrs, Quiels, etc…)

Ever wonder about the finances of penny stock pushers like Steve M. Kerr or Michael L. Quiel? Here’s your chance to satisfy that curiosity, thanks to the PSRs recently released in the USA v Kerr case.

First take a look at Steve Kerr’s, page 18 is pretty telling, looks like over 4mm in profits for 2007’s p&ds:

KerrPSR

And then learn all about Quiel, who looks like he has a net worth of about $15mm:

QuielPSR

They each made quite a pretty penny, cannot wait to see Humble Harold’s P&L!

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.

Another Court Decision Against Fuqi (FUQI)

Ready for some reading? In a 45 page option, Sam Glasscock of the Delaware Chancery Court slams Chinese reverse-merger scam Fuqi International (FUQI) and its Board of Directors. Some choice tidbits:

Plaintiff has pled facts with particularity that show that the Fuqi board has abdicated its responsibilities because the investigation has been left in limbo, with no progress, for several months. Under that view of the facts, Fuqi management is not entitled to the business judgment rule’s protections. Beyond that, Fuqi management has refused to pay for the professional  advisors—including auditors and legal counsel—of the Audit Committee performing the investigation. This lack of payment has thwarted what efforts could have been taken by the Audit Committee to investigate. To make matters worse, the independent directors, who could have conducted a meaningful investigation on behalf of the company, have resigned from their posts. Thus, the Plaintiff has alleged with particularity that the board has not only failed to move the investigation forward, but has also impeded that investigation. Nor does the record indicate that the investigation continues. It has been abandoned.

And yet the SEC still lets it trade.

Read the full decision here.

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.

“Where Are They Now File” – SEFE Edition (SEFE, PTOO)

It was only a year ago when the Sefe, Inc. (SEFE) promotion was in full swing, and just weeks since Steve Kerr and Michael Quiel were convicted in case that illustrates how they used sham Swiss entities to mask share sales in their promotions.Shannon Kerr left the tattered remains of the company in March. But what has happened to the other players?

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Quick Take – Jury Deliberations to Begin (SEFE)

The Kerr/Quiel trial has moved to the next stage. The jury has been charged and will return to the courtroom in Phoenix on the 9th of April to begin deliberations. From the docket:

Minute Entry – for proceedings held before Senior Judge James A Teilborg: Jury Trial as to Stephen M Kerr (01) and Michael Quiel (02) held on 4/3/2013.The Court instructs the jury as to the applicable law. Four (4) alternate jurors are selected. Jury to deliberate. Two (2) jury questions discussed and written responses returned to them. Jury at recess until 8:00 a.m., 4/9/2013. (Court Reporter David German.) Hearing held 9:02 AM to 4:35 PM.

Amazingly enough, during this whole ordeal the boys, with Humble Harold‘s help, have had time to tee up their latest creation….more to come.

What makes Fuqi so darn special? (FUQI)

Day after day FUQI shares trade, without the SEC doing a thing to protect investors from this long-running, obvious, Chinese con. Recall that FUQI has not filed a 10K since its 2008 report.

Yet the regulators are not always so reticent to act. In fact, the SEC has suspended trading in 13 companies since the beginning of 2013 due to “lack of current and accurate information.”

For example, on the first of March, the SEC halted trading in Southern USA Resources (SUSA):

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Notes from the Kerr/Quiel Trial – (SEFE, VOC)

The court documents for the tax fraud trial of SEFE ringleaders Stephen Kerr and Michael Quiel, are becoming available. One, available here, indicates that Kerr and Quiel dealt with Adam Benowitz’s (here’s a pic) Vision Opportunity Capital Partners vehicle.

Vision is well known for its pumping of Chinese reverse merger junk, as well as for stuffing their listed vehicle, Vision Opportunity China Fund Ltd. (VOC on the AIM exchange, the UK’s answer to the Pink Sheets, now in liquidation) full of dreadful Chinese names. And known for being the subject of various probes. But who knew Adam and partner Randy Cohen, were also involved with the likes of Kerr and Quiel? Or K and Q with them? Small world indeed.

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.