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To: ravenseye who wrote (4784)10/22/2005 4:59:40 PM
From: TheZicamAvenger of 5425
 
THE UNKNOWN SCAM COMPANY BAKER TALKED ABOUT

Here is the scam company he was talking about http://www.siliconinvestor.com/readmsg.aspx?msgid=20033619

DONT YOU FIND IT STRANGE THAT HE DID NOT NAME THE SCAM COMPANY IN COURT.

IF THE SEC DID SOMETHING ABOUT IT, THOMAS HEYSEK WOULD NOT HAVE BEEN ABLE TO CONTINUE HIS FRAUD AND BILK INVESTORS WITH INTERNATIONAL CRIMINALS AND THE AOL SPAMMER JEREMY JAYNES.

JEREMY JAYNES AND CREW WAS PAID ABOUT 1 MILLION DOLLARS TO PROMOTE/SPAM ZIASUN STOCK FRAUD

7/19/05: Tom fails to show for the contempt hearing. Judge issues a warrant for the arrest of Thomas M. Heysek
========================================================
http://www.junkfax.org/fax/profiles/wsp/wsp.htm

Anatomy of Stock Fraud

How Bryan Kos, Don Oehmke, Jeremy Jaynes, and others ripped people off for over $100 million without getting caught
Note: Jaynes is serving 9 years in prison now, but that was for spamming; he's never been arrested for stock fraud. The other guys, even if they lose their SEC case, will spend no time in jail and then just do it again, hoping not to get caught. Why? Because the worst the SEC can do is just force you to return the profits that they can locate. So it's just smart business to keep doing the scam over and over again.

Most recently were calling themselves:
PrimePennyStock aka Penny Stock Investment Advisor – Penny Stock Guide
and promoting BHLL. But no longer (as of 5/16/05).

Were (for a while after dumping Tom Heysek) calling themselves
Penny Stock Investment
www.pennystockinvestment.com
www.shesahoe.com
www.efficientleads.com
(these sites are defunct as of 1/10/05, just days after I posted this)

with a sister site:
www.pennystockpro.com
Penny Stock Investment Advisor

Previous AKAs include:
www.WinningStockPicks.net
www.uspennystocks.com
www.hotstockfinder.com
www.hotstockpicks.net
Fire Your Broker! Stock Picks (FYBSP)
www.thepennystockpicker.com
Micro-Cap Hot Stock Picks! (MCHSP)
The Micro-caps News
Wall Street Stock$ (WSS)
Hot Stock Picks (HSP)
The BEST Penny Stock Picks! (BPSP)
PowerHouse Stock Picks (PSP)
Big Profits Stock Picks (BPSP)
Winning Stock Picks (WSP)
Hot Penny Stocks! (HPS)
The Penny Stock Investor
The $tock Insider
The$tockInsider
The Stock Insider
TheStockInsider
The Street Insider
streetinsiderstockpicks.com
TheHeysekReport
TheHey$ekReport
"Meatloaf" (on Raging Bull)
www.greatstock.net
hotstockcenter.com
Newsletter: The Optimist (TO)
Investor Letter: Market Cents (MC)
Hot Stock Finder.com
Worldwide Picks LTD
The Stock Profit:


From their former www.winningstockpicks.net website:

Tom Heysek, the Editor of the WSP newsletter and our financial guru, has extensive experience in stock investment analysis and financial forecasts. His stock tips and financial expertise help WSP members to make informed investments!
That's complete bullshit. So is their criteria to be "selected" by them for profiling. The whole thing is a scam.

This page explains who they are, how they do it, and how they can illegally make tens of millions of dollars in full view of the public without getting arrested or stopped.

If you are just interested in suing them, here's proof of Tom Heysek liability for sending junk faxes.



UPDATES



7/19/05: Tom fails to show for the contempt hearing. Judge issues a warrant for the arrest of Thomas M. Heysek

5/12/05: Tom fails to show for his contempt hearing in Palo Alto today at 2pm. That adds 3 more contempts to the 8 he's got, so when he finally shows, he can get up to 55 days in jail. I applied ex parte for a civil bench warrant for his arrest today. Also, I noted that the Penny Stock Investment Advisor site is now kaput.

3/28/05: Now calling themselves: PrimePennyStock aka Penny Stock Investment Advisor – Penny Stock Guide
and promoting BHLL. For more on BHLL and Kos, see the lead story at The Our Street Report as well as StockLemon.com. It's the same cast of characters promoting this stock, as shown by the BHLL complaint filed by the SEC on April 25, 2005. Note that the stock went to Ventana Consultants aka Don Oehmke again.

3/17/05: SEC takes action against BDYS and it's CEO. They were a Heysek promoted company. See Bodyscan Corporation and Anthony Sciuto Lit. Rel. No. 19141 - March 17, 2005

2/16/05: SEC takes action against the main players listed below with a very extensive amount of evidence filed; they found they made nearly $28M on CNDD and AHFI alone!

Court Freezes Assets of Penny Stock Pump and Dumpers Lit. Rel. No. 19085 - February 16, 2005

SEC's complaint filed in Federal Court in Southern District of Florida (2/14/05)

I've posted some of the most interesting Exhibits in the SEC case here (hundreds of pages): Index of -fax-profiles-wsp-SEC

To see all the documents, if you have a pacer account, goto: http://pacer.flsd.uscourts.gov. The case number is: 05-CV-80128

1/3/05: Heysek showed up and contested the case but I won all 8 cases in Palo Alto Small Claims Court (1pm at 270 Grant Av). So Heysek now owes me about $47,000 plus interest for the 18 faxes that he asked him to sue him over.

12/15/04 UPDATE: Heysek is definitely a man who just can't seem to stay in one place for very long. Turns out that because owning property would enable people to collect their judgments, Heysek is always careful to rent, rather than own. He apparently hasn't been a very good tenant though. According to Marin County Superior Court records (you have to actually go to the courthouse to look these up on the computer there; it isn't available on the Internet), Heysek has had 7 unlawful detainers filed against him since 1997 (he's averaging about one a year). In addition to the unlawful detainer suits, there is also a case in Marin of Heysek's own attorney suing him! Heysek is currently suing his previous landlord. Heysek was living at 41 CONSTITUTION DR, CORTE MADERA CA 94925. No longer. He's gone as of September 30, 2004. And he also cleaned out his office at 50 California Street Suite 1500 in San Francisco and disconnected his phone with no forwarding number. Heysek is using Brian F. Kram (California attorney) on his case against his former landlord, just as he did on mine. The attorney representing Heysek's former landlord is Mary Casserly (510-913-6986).

12/9/04 UPDATE: Heysek didn't show up for my 10 small claims cases against him for sending me the junk faxes. I won a default judgment for $25,000. As far as I know, other than my $25K judgment against him for sending junk faxes, and Mayflower's $35K judgment (present value with interest) because he stiffed them (case citation is below; Norman S. Marshall is the attorney at 626 449 1732 x17), there aren't any other judgments against him. Just goes to show how you can scam people out of millions and walk away (relatively) unscathed. His next chance to defend himself is January 3, 2004 at 1pm in the Palo Alto, CA courthouse. If you want to meet him in person, this is an excellent opportunity.

Typing in the URL for AHFI (www.ahfi.net) used to bring up the uspennystocks.com site! Here it is preserved for posterity showing the link between AHFI and Kos: ahfiWhois.pdf.

More info on AHFI scam is here:

2004 Junk Fax Suit

Fight Back!!! -- 2004 Credit Suit.

11/22/04 UPDATE: The winningstockpicks.net and uspennystocks.com sites have been shut down. Fortunately, I created a PDF file of every page of USPennyStocks.com at uspennystocksSpider.pdf so you can find the criteria page above as well as other pages in this PDF. I also spidered their website in HTML form before they took it down, but this isn't posted on the web (let me know if you need it). Also, they've changed their identity yet again. They are now called www.pennystockpro.com aka Penny Stock Investment Advisor - Penny Stock Guide and are currently pumping AHFI where they recently (12/3/04) moved 10 million shares at $3/share.

The disclaimer on the www.pennystockpro.com site used to say (e.g., on December 5, 2004): "PennyStockPro.com is not affiliated in any way with Tom > Heysek or Winningstockpicks.net." They removed it a few days later... since it certainly raises a lot more questions than it answers! Of course it's still Bryan Kos and crew. Just putting a Disclaimer saying it isn't doesn't make it true.

Also, www.hotstockfinder.com used to promote AHFI, but they pulled the website. Here's the cache of the www.hotstockfinder.com site before they did that: HotStockFinder.pdf



If you are a victim of these folks and have actually lost money in your purchase of any shares promoted by these gentlemen, please join this Yahoo group and wait for an announcement. This is a moderator-post only group so you will only receive a small number of critical emails a month (if any):

Yahoo! Groups cnddStockFraud

Also, if there are an factual errors in this writeup, I wish to know about them as soon as possible. Please use the contact link and supply your evidence of the error and I will promptly look into the matter.

These guys made one big mistake: they sent me a unsolicited fax. I'm the last person on the planet you want to send a junk fax to.

Here are 18 faxes I got from Winningstock picks: wsp18faxes.pdf. Some of these were sent by Protus IP Solutions. But we also know they used fax.com, e.g., see page 5 of VerifiedSamplesJul04 which promoted TWTN, another WSP stock. I also verified this with former employees at fax.com.

I've never lost a junk fax case because I'm always super careful to only sue people I can prove are liable.

This case was intriguing because of the sheer volume of spam they've sent out as well as the incredible lengths they've gone to in order to make themselves "invisible." They tried to hide behind a company manufactured in Anguilla (where it's illegal to disclose who formed the company), used an address in the Bahamas (out of reach of US law), and used their Florida legal firm's bank account to make vendor payments in order to hide behind attorney-client privilege so that there is no person nor company to sue.

When I called Heysek, he denied sending the faxes and dared me to sue him. Tom said I was a "chicken" if I didn't sue him. He said he was counting on my suing him and would be really disappointed if I didn't.

Well, to be honest, that ticked me off. Chicken eh? So I took this as a personal challenge. I have never found any spammer I couldn't uncover and these guys are no exception to the rule.

In fact, after I figured it out, Tom changed his mind and told me not to sue him!!! Unfortunately for Tom (and his gang) his request came too late. He's not calling me a chicken anymore.

It was quite an adventure. I've spent several hundred hours over two months (July and August 2004) trying to figure out exactly who these guys are and how they do it. There were hundreds of pieces to this puzzle and I have most of the pieces solved. There are only a few loose ends I don't yet understand, but these are all on the periphery.

This page is published to help aid those people who are investigating this matter. It is also posted as an aid to people who are thinking about suing those people who are truly responsible for sending the faxes and/or the stock fraud. Or even if you are merely curious as to how e-mail spammers make money, you'll find the story a fascinating read; how they can illegally make tens of millions without anybody in law enforcement stopping them until just recently when one of the core players, Jeremy Jaynes, was sentenced to 9 years in prison by a Virginia jury (for spamming, not for illegal stock promotions).

So in what follows, I will explain what the all evidence I got indicates. While the stuff done here is obviously criminal, I am not accusing anyone of a crime here. I am just reporting the facts based on my first-hand research (Internet primarily but using both public and proprietary databases), personal contact with the people involved (including personal conversations with Heysek, Kline, Ross, Rutkowski, Katz, Martin, Lord, the Woltz family, the Paulson brothers, Frappier, Cuadra, and several former employees of fax.com) and with evidence which I have been able to uncover through a huge number of subpoenas.

This information has been shared with my contacts in the Attorney General's offices, the SEC, the FCC, and the FBI, all of whom have read it.

Note to law enforcement: There is more information posted on a secret website if you are a government agency investigating this case. Use the contact link.



DEFINITIONS

"WSP" when used below means www.winningstockpicks.net aka Worldwide Picks LTD (the company behind the websites) aka www.USPennystocks.com aka www.hotstockpicks.net aka Fire Your Broker Stock Picks and so on. See the full list of AKAs at the top of the page. They are all the same people, just different names for the same set of players.



YOUR GUIDE TO THE PLAYERS

First, we introduce to you the cast of characters in our incredible-but-true real-life saga. The following people are covered here:

Jeremy Jaynes aka Gaven Stubberfield (Cary, North Carolina)
A top 10 ROKSO e-mail spammer (see ROKSO page on Jaynes and Rutkowski). Hangs out mostly around the Raleigh and Cary, North Carolina area. Profit margins are down so partners with Bryan Kos to stock scam pump and dumps for greater return on investment. Gets personally involved in the execution of promotions.

Jaynes is kind of in a little trouble right now in Virginia. He was arrested and faced up to 20 years in prison for spamming: Raleigh businessman arrested on felony spam charges - 2003-12-11 - Triangle Business Journal and 12-11-03 - Spam Arrest. He got lucky and was sentenced to only 9 years by the jury.

I spoke to the lead prosecutor on the case, Russell E. McGuire, and the following facts came out at trial (and reported in the press): Jeremy lists his net worth at $24 million and he was making at least $500K/mo in his spamming business before being arrested.

Jeremy used to own Vinnie's Steakhouse & Tavern which is a real restaurant in Raleigh, NC, but he sold it in 2003. Food quality at Vinnie's has reportedly declined under the new management so perhaps this was a bad move.

As noted in news articles, Jaynes also is a part owner of Beyond Fitness aka AHFI aka Sampsons' Gyms (919-816-9853), which is one of the stocks promoted by WSP. So it wasn't just two email spammers joining forces... Jaynes is a stock promo client of Kos and, in turn, Jaynes helped Kos with the promotion. Crooks helping crooks you might say. For more info, see Raleigh spammer faces prison time (Nov 14, 2004).

Moral of the story: Jeremy should have stuck to the restaurant business.

In the SEC's depo of Randall Rohm, Rohm said that in early 2004, Jaynes boasted of owning 10 shell companies and doing approximately 100 reverse mergers in the past four years and admitted that Kos was his business partner.

Attorneys ued by Jaynes include: Sam Currin, Robert Shawn Wellons.

Bryan Kos (Quebec, Canada): THE BOSS
Like Jaynes, Kos is also a top ROKSO e-mail spammer (see ROKSO page on Kos). Born and lived in the US (Sunnyvale CA, Scottsdale AZ, and Chicago IL). Went to high school at St. Viator High in Arlington Heights, IL. He's now based in Quebec partly because he thinks he'd be harder to get there and partly because his wife Caroline is from there. Kos and Jaynes hooked up in 2000 and are the top people which is consistent with their psych profile as well (i.e., they don't take orders from anyone). According to one of Kos' former associates I spoke with, Kos, like Kevin Katz (of fax.com), is very charming and charismatic in person. People want to like him and help him. Just like Katz, his charisma creates a huge sense of loyalty to him that transcends their better judgment.

Kos is co-founder of SGNJ, a heavily promoted WSP stock. Not really surprising because the profit margins are much higher on a pump and dump when you own the whole company, rather than do it for someone else.

Kos' ROKSO page says this: "Another long time spammer. Normally spams for hire using free websites or "fake free websites" that either he, or a spamming partner run. Normally spams porn and illegal stock hyping schemes."

Kos's main company is Internet Opportunities aka IOPS Inc aka www.i-ops.com aka Internet Promos LLC aka BK Ventures aka XTR Capital Resources, LLC based in Canada (see the ROKSO page for more info). He started IOPS around 1996. IOPS actually stands for "Internet Optimized Promotion Services."

Kos is quite diversified as he describes in this e-mail excerpt from 2001 where he is recruiting for talent:

Internet Promos is an Internet company that owns an ever-growing number of Internet Properties. We own a Financial Education Center including many Financial Newsletters, Dating Services, as well as many additional Free Newsletters on diverse topics (such as: Health, Travel, Credit, Taxation, etc.) as well as an Internet Public Relations Firm specializing in the promotion of Public companies.

Note that he forgot to mention his porn business. Here's just one of the websites he created to promote the I-OPS turnkey porn business: Koss porn promo.pdf. Kos will supply the porn expertise and marketing guidance; you run it.

As noted in the writeup, IOPS provides "investor relations services" as one of their core businesses. Investor Relations (IR) is the euphemism that they use to describe their illegal "pump and dump" stock promo business. For example, they provided "investor relations service" to Advanced Optics Electronics Inc. according to their SEC Form SB-S/A Filing of 9/21/01.

He's been involved with promoting a lot of stocks including the WSP stocks as well as the stocks listed in the next paragraph.

In 2000, Kos, started with Steve Reid (THE WIZZ KID) using the names "MOEBIUS-Emerging Company Reporter", Moebius "STOCK PICKS." In 2001, Kos switched to Heysek as "The Penny Stock Picker" and The Heysek Report and Micro-Caps News. From April 2001 to April 2003, Kos and crew promoted the following roster companies: Wasatch Pharmaceutical (WSPH), Ziasun (ZSUN), UICO, ARSN, ESPB, ZABC, FASI, TELI, DDD, First Aid Direct (FADI) in 2001, Thaon Communications Inc. (THAO) in April 2001, VisualMED Clinical Systems (VSMD), Regency Group Limited (RGNC), MLM World News Today, Inc. (MLMS), Biomerica Inc. (BMRA), HouseHold Direct, Inc. (BYIT), CastPro.com (KPRC), Internet Venture Group, Inc. (ITVI), NanoPierce Technologies, Inc (NPCT.OB), KCS Energy, Inc. (KCS), Parallel Petroleum Corporation (PLLL), Contango Oil & Gas Company (MCF), American Bio Medica Corporation (ABMC), Bradley Pharmaceuticals, Inc. (BPRX), Lynx Therapeutics, Inc. (LYNX), Questcor Pharmaceuticals, Inc. (QSC), Align Technology, Inc. (ALGN), Derma Sciences, Inc. (DSCI.OB), Endocardial Solutions Inc. (ECSI), I-trax.com, Inc. (IMTX.OB), inTEST Corporation (INTT), MDSI Mobile Data Solutions Inc. (MDSI), Vital Images, Inc. (VTAL), EP MedSystems, Inc (EPMD), eUniverse, Inc. (EUNI), Ostex International, Inc. (OSTX), Carroll Shelby International Inc. (OTC BB:CSBI), and Genius Products, Inc. (GNPI).

Kos also promoted Geoffrey Eiten's OTCFN.com aka OTC Financial Network (OTCFN) a full-service financial communications and investor relations firm that specializes in emerging micro-cap companies listed on the OTC Bulletin Board (see Stock Profit About Us showing Kos' promotion). More about Geoffrey Eiten can be found here, Eiten posting on Silicon Investor, but the article is incorrect as I only found that Kos promoted OTCFN.

Here's more on Geoffrey Eiten aka Geoffrey J. Eiten:

From New York Post Online Edition, Geoffrey J. Eiten: Arrested, convicted and sentenced to prison in 1984 for cocaine possession with intent to distribute, Eiten was dismissed by his next six post-incarceration employers, and thereafter opened a Web-based penny-stock touting firm called OTC Financial Network. The Web site lists none of his previous brokerage-industry employers, though it speaks of the "high esteem" in which he is held in the investment community and the fact that he has appeared as a "guest analyst" on CNBC's "Squawk Box" cable TV show.

for more info, do a SiteSearch on Investrend.com for articles about Eiten, and the services he allegedly uses to hype LocatePLUS Holdings Corp (OTCBB: LPLHA), including TheSubway.com.

I obtained a copy of the Genius Products, Inc. contract with Kos, for example. The short story is that he gets paid based on a fixed dollar value of the stock calculated right before the promo starts. Specifically, in this particular case, the payments are:

$50,000 in shares - price per share to be that on the day that the Company gives the "go-ahead"
$25,000 in stock due the day the Company gives the "go-ahead"
$25,000 due 30 days after "go-ahead" date
Therefore, Kos is incentivized to blow up the price as high as he can so he (and the company that hired him) can sell their shares at the inflated price.

Here's some more info on NanoPierce, for example, which Kos promoted sometime around April 2002:

The CEO of NanoPierce has been sued by the SEC three times for fraud. Their current stock promoter and past stock promoter is currently being sued for securities fraud for illegally promoting the scam stock.

See Nanopierce Technologies Inc., NPCT Paul Metzinger CEO, potential securities fraud NPCT.ob

Note: the author of that page is being sued by the current stock promoter for libel, but has won the first 5 rounds.

Here's a screenshot of the i-ops home page on April 18, 2001, showing The Penny Stock Picker and The Heysek Report: i-opsHeysekReport4-18-01.pdf.

Here's a writeup on THAO on i-ops.com in April 2001: Thaon Communications Inc. (THAO)

Here's the pitch i-ops.com used to solicit "investor relations" (IR) business: i-ops.com Investor Relations "pitch"

Here is Bryan Kos management team. Caroline (who is listed on that page) is his wife, Caroline Kos aka Caroline Archambault. The key thing here is that the two top executives are Kos and Heysek.

In his SEC deposition, Bryan (like Oehmke) basically answered "Fifth Amendment" to most of the questions. In his answer to the SEC complaint, he denied everything.

His attorneys are William Nortman (based in Florida), and his long-time counsel, David J. Levenson (Potomac, Maryland).

Thomas M. Heysek aka Tom Heysek aka Milton Thomas Heysek aka "Meatloaf" (San Francisco, CA): VP STOCK FRAUDS
The "editor" of winningstockpicks.net aka USPennystocks.com aka www.thepennystockpicker.com aka Fire Your Broker Stock Picks aka The Heysek Report aka Micro-Cap Report aka Micro-cap News aka Heysek Research Corp aka the Penny Stock Picker aka PennyStockPicker aka Tom Kudolo (Financial Radio talk show host on Kos' iops radio). Other newsletter names include "Exit Wounds" It's the same Tom Heysek behind all these entities. He's the "candyman" here, or should I say the CNDD man? He can take a company with no revenue and package it with his writeups (with the appropriate illegal fax and spam advertising) to a $2 billion dollar market cap (like he did with CNDD). He uses his real name because otherwise it doesn't look credible.

He's one of the people liable under the TCPA for sending those junk faxes to you. See Proof of Tom Heysek liability for sending junk faxes which contains links to copies of the original documents that were used in the scam.

Heysek's resume on the USPennystocks.com site (or look at p. 6 and 322 and 323 4MB archive of his past WSP issues) of is missing critical details of places of employment that have been expunged (like that he learned his craft under Ray Dirks at Security Capital in 1999 and that he worked at Med Gen) and other things have been "inflated" just like his stock writeups.

I have more information on Heysek and if you have a need to know, you can contact me about that.

Andrew M. Kline (San Rafael, CA): STOCK FRAUD ASSISTANT
Heysek's "partner" in creating fraudulent stock writeups. The two of them constitute the editorial staff for WSP. After I pointed out to Kline that Heysek's report on CNDD can't possibly be reasonable and was so outrageously false, Kline hung up on me. I must have really gotten to him because five minutes later Heysek makes a threatening phone call to me to back off my cases against him (which confirms he was served). Tom didn't say "please" so I ignored his "request." It could be that Tom never saw any of the Barney tapes about "please and thank you are the magic words" when he was a kid.

The only possible explanation for Kline's reaction I can think of for this is that Kline knows exactly what he is doing. That fits the facts since anyone honest with half a brain (and Kline is a member of Mensa) would immediately figure out what Heysek is doing; they wouldn't need me to point this out. The CNDD profile is just a mind blower...full of impossible assertions like 0 to $600M in revenues (and $400M in profit) in 4 months from a standing start. Anyone with basic financial analysis skills could see the fraud. The fact that Kline had no interest in the facts suggests he's like a mini-Heysek, a "Heysek wannabe," learning the tricks of the trade from the master. I'll bet he is paid pretty well...maybe he even gets a cut of the action. Kline worked at the family business Noe Valley Cyclery just a few years ago (on or about 2000). I called over there at around 10:20am on 8/17/04 at (415) 647-0886 and spoke with the owner, Lawrence E. Kline, Andrew's brother. He refused to say anything about his brother, not even verify dates of employment. It's a bicycle shop. Impressive credentials. That seems like the perfect background for evaluating complex speculative investments.

Kline spent 5 years in jail in Bolivia for possession of marijuana and 18 months in jail in the US for intent to distribute hashish. Other than that, he's clean as a whistle!

From Drug Trafficking on the Great Silk Road: The Security Environment in Central Asia:

Uzbek security arrested Andrew Kline, who was a citizen of the United States living in Bolivia. He wasreportedly a coordinator of activities between the Afghan and South American drug dealers

Kline got paid by Heysek (wire transfers from Thomas Heysek Associates and checks). Kline never made any big money on this.

Dan Hartal (Montreal, Quebec, Canada)
Dan, who is lives on Queen Mary Rd in Montreal, Canada, collected checks (the few there were) and handled upsells to premium packages for winningstockpicks.net. When we talked to him Hartal claimed he was just a "consultant" but that isn't true. He's a team member and this isn't the only Kos venture he's been proven to associate with. For example, at Ericware Technologies, Dan is the "Investor Relations Department" and Tom Heysek wrote the research report. You can talk to Dan at 514 293 7660, but he's probably not going to want to say very much.

Don Oehmke aka Donald Edward Oehmke (Kalamazoo, MI)
The purchaser of all of CNDD's stock (a WSP promoted stock) as well as Chairman of SGNJ (another WSP promoted stock) and Ventana Consultants LTD, Kalamazoo, MI. Oehmke arranges the stock transactions since he's "experienced" in this area (see Rel. No. 41755 - August 18, 1999 for his credentials). Oehmke and Kos incorporated SGNJ, for example. Even though the Nevada Secretary of State record for Storate Innovation Technologies Inc shows the name "Scott Wilson," that's just a dummy name. I was able to find a paper trail that proves that it was actually Kos and Oehmke that set up this company. Heysek conveniently neglects to mention how Kos, a well known e-mail spammer, fits into the company in his writeup on SGNJ. In fact, he doesn't mention Kos's involvement at all. Gee, I wonder why? Heysek and Kos talk just about every day. Heysek is normally so thorough in his research. How could he have missed that one? Could it be that if he did, that his readers would realize they were being set up...a company founded by two people of "questionable" reputations with a track record of breaking the law, none of whom appear to have any experience in the line of business they are in? Also, Heysek neglects to mention that Oehmke ran a brokerage business that was expelled from the NASD in 1991 and involved in selling unregistered securities to the public at manipulated prices. Oversight, no doubt. Don and his third wife live in an estimated $500,000 home in Kalamazoo. He reportedly throws a terrific 4th of July party. Approximately 20 years ago, Don was a policeman. He's 55 years old today. He's used several company names and he's been sued in several states including Louisiana and Texas. He has a history of pump and dumps. Very charismatic according to people who know him. Hires really expensive attorneys. He used to live in Ventana Canyon (in Tucson, AZ) which is presumably where he got the idea for the name Ventana Consultants.

In his SEC deposition, Don (like Kos) basically answered "Fifth Amendment" to most of the questions. Don approved the phony press releases that went out (per emails in the SEC case).

Hartley Lord (Boca Raton, FL)
The 75 year old head of CNDD (a WSP promoted stock). Concorde's official phone number is Hartley's home phone. The official address is his home address. Unlike all the other suspects here, Hartley actually wanted to talk when I called him! Based on what I heard, I thought he was innocent of any wrong doing, but I didn't spend a lot of time on this and probing into his background. He was completely cooperative (until I started getting wise to him) and all his answers made sense. My initial guess was he's just being played by these guys. But I now believe my initial instincts were wrong. The fact that he has a history of having been involved in securities fraud and market manipulation was a big factor in my change in opinion. Also, Lord has been barred for life from association with any member of the NASD in any capacity. So that was a huge red flag too. That is quite an achievement. I can't say I know anyone else who has achieved such an honor. See the Hartley Lord follow section below for more details. Also, I can't find anyone at the SEC who knows of a pump and dump case where the company being pumped was determined to be innocent. If you know of any such cases, please let me know and I'll post it here.

Lord approved the bogus writeups that Heysek did (per emails in the SEC case).

Jere Ross aka Jeremy Ross (Tampa, FL)
Co-founder and partner at Bush Ross Bush Ross Gardner Warren & Rudy PA in Tampa Florida (see Bush Ross Gardner Warren & Rudy, P.A. - Jeremy P. Ross Bio). Ross provides legal counsel for Kos, Oehmke, and Lord. Both Lord and Oehmke are heads of companies featured in WSP. Lord says he didn't have a current lawyer when Oehmke contacted him. Yeah right...and if you believe that I have this bridge I'd like to sell you..

Ross is representing Lord and Concorde in the SEC suit and admitted to me that Oehmke/Ventana and Lord/CNDD were his clients.

The Bush Ross website says that they have become one of central Florida's leading [law] firms because they "adhere to the long term philosophy that clients want caring, insightful, ethical, and qualified problem solvers who will add value to their businesses and lives. Thanks to the standards set by the founders of Bush Ross, our mid-sized firm has been recognized as providing the highest levels of excellence in legal advice and service to our clients."

Well, let's just say that when all the evidence comes out, I think they will have to re-write certain parts of that. Money laundering is a crime the last time I checked. It is just too hard to believe that Ross didn't know exactly what was going on due to his close ties to Kos and his payment of all the vendors.

We know that Ross and Kos talk all the time. In the SEC depo of Rohm, Rohm mentioned that the reverse merger contract was prepared by Jere Ross and Rohm's lawyer advised him not to do it and it was "substandard."

All of the vendors I talked to were paid out of the Bush Ross bank account (Spreadbury admitted it in the SEC depo, Vault Studios admitted it to me, and Fry Hammond Barr provided evidence under subpoena of the transfer). In addition, the funds to pay Camelot Promotions were mostly provided from the Bush Ross account, with some funds coming directly from Ventana Consultants (Oehmke).

Even better is that $6M of illegal trading profits from the Ryzcek and Chiang Ze accounts set up by Woltz were laundered through the same Bush Ross Sun Trust Banks Account # 41001143506 according to documents the SEC got (page 11 of the ExhibitWitnessList.pdf which is Docket #35 in the SEC case).

Heysek's Asian American Capital Management LLC account at B of A was paid by Bush Ross too. I subpoenaed these records from B of A and found out that Heysek got $24K on 8/03/04 and $23K on 7/7/04 from the Bush Ross account.

Also, Ross paid Spreadbury to send out the phoney press release, then Ross prepared a retraction which was sent out under CNDD's name. Talk about playing both sides of the fence! And when I asked Ross for Spreadbury's address, Ross played dumb and pretended not to know. An honest person with nothing to hide wouldn't do that. In fact, Jere Ross himself wrote me in an email on August 15, 2004 at 2:50pm: "There are few worse actions than market manipulation of the sort being practiced by whomever is behind the recent activity. They prey on the small investor who looks for the big hit." We agree on that!

At first I was surprised that they would use a law firm's bank account instead of creating some bogus bank account somewhere. But after I tried subpoenaing the Bush Ross bank account records at SunTrust, Bush Ross hired local counsel in California to file a 5 page objection citing 14 reasons why my request should be denied. None of the arguments had any merit that I was worried about. But I believe they wouldn't have gone to that length if they weren't trying to hide something very important. So I am led to the obvious conclusion that they used the Bush Ross account for three reasons:

Hide behind attorney-client privilege: If it's a law firm's bank account, they can avoid answering any questions as to the purpose behind each transaction. Unfortunately, that only works for them if the plaintiff isn't successful in invoking the crime-fraud exception to the privilege. Also, only attorney-client communications are exempted, not the transactions with third party vendors. So they can't protect the transaction history at all from discovery.

Hide behind the mass of transactions: Since Bush Ross is a big firm there are a LOT of transactions and most people wouldn't have the time to investigate every one and even if you did, you'd probably find nothing without Bush Ross's cooperation. Unless you knew specifically what you were looking for, it would be like trying to find a needle in a haystack. For example, instead of hiring of the fax broadcasters directly, they paid a third party (Camelot Promotions) to do that. Therefore, transactions with Camelot Promotions would appear in their account and most Plaintiff's wouldn't know what it is for. Bush Ross would claim attorney client privilege and Javier (at Camelot) would probably "not remember" who paid him and probably is so bad at record keeping that he wouldn't be able to find anything. Therefore, unless you are really good at detective work, they look clean.

Hide behind the P.A. structure: Bush Ross is a Professional Association. This provide some amount of insulation so that the acts of one shareholder don't affect the others. However, since it is unlikely Ross could have used the official account without permission of the firm, it is possible that the whole firm is liable.

We also know that there are other people at Bush Ross (not attorneys) who have knowledge about what was going on:

Barbara Rowe

Jessi Horrnik

Richard E. Rutkowski (Cary, NC)
The technical computer guru for Jaynes. Hangs out in Raleigh and Cary, NC (see ROKSO page on Jaynes and Rutkowski). Sets up technical infrastructure. Was involved in setting up the WSP technical infrastructure.

I've talked to him on his cell phone and wanted to ask him some questions. He said he'd have to talk to his lawyer first. He never called me back. Guess he forgot. I warned him if he didn't call me back, I'd have to do a lot of digging to prove my case. I had no choice. So you can thank Richard for providing me the incentive to dig out all this stuff since he wouldn't tell me who hired him on this job.

Richard was quite pleasant to talk to on the phone, not rude at all...quite unlike Heysek who comes across as really arrogant and impolite. Richard faced 20 years in prison and was been arrested: 12-12-03 - Kilgore Announces Second Criminal Spammer Surrenders to Authorities, but he was acquitted because, for some reason, the judge didn't allow key pieces of evidence (like a video tape of him doing it) because the judge thought it would be prejudicial. Hard to believe, but absolutely true (a matter of public record)

Jessica Jaynes aka Jessica DeGroot (Cary, NC)
Jeremy's sister. A bit player. Works for Jaynes. Does Internet related stuff for them. The nice folks in the Virginia AG's office know her well. She's also sort of in trouble with the law too. Here's a nice article about her indictment on criminal charges: 04-07-04 - Kilgore Announces Indictment of Sister of World's Eight-Worst Spammer. She was found guilty of spamming and fined a paltry amount. She created some of the stock touts that went out (see Paul Spreadbury writeup below). Graphics quality isn't nearly as nice as Spreadbury's, but Spreadbury probably wanted out when he realized he had been conned by these people.

Jessica had a role in the faxes that were sent out. After Spreadbury did his magic on the faxes, they'd be sent to both Bryan and Jessica (and Jeremy too if they involved AHFI).

Chad DeGroot (Cary, NC)
Works for Jaynes too. He does some graphic design work. He's Jessica's husband. Some of the WSP website is Chad's work, we can prove that so it is yet another piece of evidence that ties Jaynes directly in with the WSP site.

Tom Martin (Ottawa, Ontario, Canada)
CFO of Protus IP Solutions. They send out junk faxes for WSP, most likely in return for stock or cash. Martin refused to tell me who hired them, but they claim they will respond to a subpoena that is "properly served." Seems to enjoy making my life difficult. If he wanted to help me, he could still be legal, but he refused to do that. Seems to be more interested in seeing if I'll jump through the hoops. I will. I have already hired the #1 TCPA attorney in the country to sue them and we'll be suing them for a few million dollars and an permanent injunction to prohibit them from continuing to fax anyone illegally anymore.





Kevin Katz (Laguna Beach, CA, Aliso Viejo, CA)
CEO of fax.com (aka Impact Marketing aka Access Sales Inc). They also sent out junk faxes for WSP on a cash deal. They got paid by Javier at Camelot Promotions who in turned was paid from the Bush Ross account.

Katz' lawyer that he uses for his SEC cases, Jackie Meyer, flatly refused to comply with any subpoena. That suggests to me that they know this is criminal to be doing this. Why admit you knowingly are sending out fraudulent faxes? So they are remaining silent.

One of my fax.com insiders says that they ABSOLUTELY know this stuff is fraudulent. Frank Frappier (top sales person for fax.com) specializes in this area...he reportedly did almost a million dollars a month on these accounts! So fax.com alone was sending out over 20M of these promos a month. Fax.com NEVER complies with discovery that I've heard about. The California Attorney General spent 6 months to get some questions answered and after 6 months got 20 boxes of removal requests; nothing of value. That should make conviction rather easy I would think if federal charges are brought... obstruction of justice.... now that would be cool. You can learn more than you ever wanted to know about Kevin at on the fax.com page.

The guy who actually took the orders from Javier Cuadra for these faxes is Lou Gaudio who used to work for Impact Marketing Solutions (aka fax.com).

Paul Spreadbury (Pensacola, Florida)
An freelance marketing consultant. His name (and phone numbers associated with him) were on the phony press releases. Currently located in Pensacola, Florida.

I've checked him out thoroughly. He's a 100% honest guy that was duped in the same way that people who read the stock touts got duped. Once that press release came out, Spreadbury figured out what was happening and got out. That's why the CNDD stock touts (after the first two) were subsequently created by Jeremy Jayne's organization rather than Spreadbury.

I have the highest respect for Paul's integrity. He was 100% honest in his SEC depo. He's an excellent marketing guy. His only mistake was being too trusting and believing what he was told (that the faxes were just going to subscribers, etc.). I don't hold him responsible for what happened because Paul was defrauded just like the investors.

Fax.com source data shows he created some of the stock touts that were sent out, e.g., the first two CNDD stock touts from fax.com on 8-4-04 and 8-9-04 (The BEST Penny Stock Picks!) were created by Paul. The ones after August 19 (i.e., entitled MICRO-CAP HOT STOCK PICKS) were created by Jeremy Jaynes' sister Jessica.

Heysek's annotated phone records prove Spreadbury called Heysek numerous times just before the CNDD stock tout came out.

Spreadbury designed and managed the website using material supplied to him by Kos (who got it from Heysek and Kline). Spreadbury admitted in deposition with the SEC (p. 64) that he spoke with Heysek and Kos in connection with the material on the website.

Spreadbury also created the content for the faxes with direction from Kos who in turn used the writeups prepared by Heysek and Kline. We know that to be true since (a) he admitted it on p. 72 of his SEC deposition and (b) his electronic fingerprints were on the files submitted to fax.com. Spreadbury gave the faxes back to Bryan after he wrote them (per his SEC deposition p. 77).

Spreadbury got direction in his marketing efforts (faxes, etc.) from Kos, Heysek, and Kline. We know that from his email in Exhibit 55 (see HeysekEmail.pdf).

I got mentioned (Spreadbury SEC depo p. 81) as having first informed him of the fraud.

Spreadbury got paid by wire transfer from the Bush Ross bank account (SEC depo p. 118).

Spreadbury originally interfaced with Eric Gordon (who worked for Kos), then with Kos directly (see p. 157).

Spreadbury also wrote the Google ads, with input from Kos and Jaynes (p. 250).

Doug Paulson (Toronto, Ontario, Canada)
Does audio and video work featured on the WSP site through their company Vault Studios www.vaultstudios.com in Ontario, Canada. At first I thought they were just innocent pawns in this, but they sure don't act like it. They act like they are hiding something big. They refused to comply with my subpoena. They send "send me the subpoena" but then never even bothered to call to discuss any issues that they might have had with it. It was basically a trick so they could find out what I was fishing for. Most honest people don't act that way. The Paulson's treated me like I'm the criminal and Kos is a whitehat. Gotta be a reason for this...I haven't figured this out yet, but it makes me very suspicious that they are still obstructing justice even after I've pointed out to them exactly who Kos is. I gave them a final chance to pick sides. They just ignored the email. Guess the Paulson's are rooting for the blackhats to win. This was not so surprising after I found out that Vault Studios is a client of Kos' firm (and vice-versa)! So it seems quite probable that if they turned Kos in, that Kos would turn them in. That explains the silence and lack of co-operation.

Jon Paulson (Toronto, Ontario, Canada)
Works for Doug. He's Doug's son (Spreadbury depo p. 204). Also is refusing to talk. Not surprising after I learned that they've employed Kos in the past. However, when I first called Jon, I caught him off guard and he admitted to me that Kos and Heysek direct their activities. That was a very helpful admission at the time.

The Paulson's not only did the video for the website, but they also did the creation of the voice mail scams (see p. 204 of Spreadbury's depo). That's why they don't want to talk to anyone.

Howell Woltz (Advance, NC): "Asset Protection and Investments"
Howell is head of the Sterling Group of companies. Jaynes is a client of his.

Woltz is essentially the money launderer for these people and set up the fictitious entities that were used to trade the shares so that it couldn't be traced back to Don and Bryan.

Fertina Turnquest was their contact person in Woltz's organization (per emails obtained by the SEC). She also interfaced with Oehmke (who had trading authority on the accounts, replacing Jaynes).

This guy is incredibly evasive when you ask him simple yes-no questions (like "have you ever heard of Worldwide Picks LTD?" and "did you incorporate them?"). I've still not gotten a straight answer from him on these simple questions (even though his staff can answer them easily)!

Also, he's made statements and given answers that are deliberately misleading. That is a huge red flag. I spent several days trying to ask him a simple question: "Did you set up Worldwide Picks LTD, yes or no?" Woltz completely danced around the question for days and a week later still never answered it. It's a matter of public record that Woltz created the company in Anguilla (Worldwide Picks Ltd is Anguilla Corp #2036475). He likely did it for Jaynes and crew so they can hide their identity from being discovered. There are several ties between Jaynes and Woltz: not only are they both in North Carolina, but I have other evidence of a connection between Rutkowski (Jaynes' CTO) and Woltz that would be impossible to happen by "accident."

Like Jaynes, Woltz is also in North Carolina but he makes it appear he's based offshore by bouncing his email off a Bahamas based mail server and using a 714 area code cell phone when he is really in North Carolina. He told me "I'm done with my vacation in North Carolina." I knew he was lying about that because I already had his coordinates so I called his home in North Carolina and talked to his son. I asked "is Howell there?" The son passed me to Vernice, his wife, who asked me why I was interrogating her son!!! Talk about extreme paranoia. Oh, and by the way, Vernice is an officer of the Sterling companies. Anyway, they were nice enough to confirm to me that my info was correct; that he really lives there.

Howell is associated with the website registration info for WSP (the address is his Sterling Trust in Bahamas) and other things they used. Also, you are supposed to send your WSP membership fee to Howell's other offshore branch office where they did the incorporation of Worldwide Picks Ltd (Sterling Trust (Anguilla), Ltd) in Anguilla. When you call down there and ask what they do, they can't answer the question. No surprise...I asked Howell the same question and he was completely flustered trying to explain what he does for a living. If Howell doesn't know what they do, it's natural that his "employees" can't figure it out either! Howell stopped talking to me when I started cc: government agencies on my emails to him, specifically when I asked him: "who did you recall talking to on the day you incorporated Worldwide Picks LTD?" I guess that was too tough to answer. We should be able to pull the phone records on that one to help Howell's memory which seems to be conveniently bad. Also, Howell's firm seems to have been involved in financial frauds before: See Sterling Group and investment fraud.

Upon reading this, Howell sent me an e-mail. I responded with some questions to clarify his statements. Here's the most recent e-mail thread with Howell Woltz. I never heard back from him which is perfectly understandable.

Also, I've talked to at least one other person who said Howell represented to him that he was in the "asset protection" business.

This is a nice juicy tidbit from evidence gathered by the SEC (Randall Rohm's testimony):

7. Also in connection with the merger discussions, sometime in mid 2004 I met Howell Woltz once, whom Jaynes introduced as his money manager. At this meeting, Woltz told Ted Sampson and me that he was helping Jaynes send his money offshore to protect it from the authorities in Jaynes's spamming case and tried to convince us to start sending our money offshore as well. I have not seen or spoken to Woltz since this meeting.

John R. Rooney (Jupiter, Florida)
Rooney was quoted in a press release from WSP (see Abe Goes Tommy in New Campaign for USPennyStocks.com).

Rooney, with his wife Natalie, moved from New York to Jupiter, Florida at the end of 2003. Has a history of pumping up stocks well beyond their value. He's the son of Patrick J. Rooney who also has a history of stock manipulation. I guess it runs in the family. Might be genetic or something. John was head of HORNBLOWER & WEEKS INC INVESTMENT BANKING 110 WALL ST FL 24, NEW YORK NY 10005-3806 before moving to Florida. John is quite a guy. Here are a few choice articles about John:

Stock Patrol In Trouble Again (jul 11, 2002)
StockPatrol Through The Looking Glass (aug 10, 2002)
Stock Patrol The Terminator
Hornblower & Weeks, Inc. Order Revoking Broker-dealer Registration
FindLaw Class Action and Mass Tort Center Securities SEC Resources
NASD Regulation News Release - 05-07-02
LITIGATION Release No. 16733 - September 27, 2000 (it's the family business I guess)
I don't have any evidence that Rooney is involved in this fraud other than his name popping up on a WSP press release. We'll see what comes out from further research.

John Richey
Random name Spreadbury made up (see his SEC depo p. 109).

Javier A Cuadra (Key Biscayne, FL)
Javier is the faxing contractor for these guys. He was paid from the Bush Ross bank account which is how they paid all their vendors. Javier then takes that money and pays the fax broadcasters (in advance) and other vendors related to faxing (such as the fax back service). He is also based in Florida. Javier is a busy guy and runs several companies such as Oncall Telecom, LLC, Camelot Promotions LLC, and a whole bunch more out of his home in Key Biscayne FL. Cuadra has experience with junk faxes since he also works at VeloFAX LLC (formerly Visionlab Miami). I know that because I called him there. Javier (as Camelot Promotions) does the actual dealing with the fax vendors; I was able to confirm that with one of the fax broadcasters (fax.com) as well as the fax-back service he used (myFaxOnDemand.com aka RealtyHosting.com). For example, we know from fax.com's records that Javier used fax.com to send faxes between 6/7/2004 - 8/19/2004.

Javier even confirmed that he did work for Winningstockpicks when I called him, but then started denying just about everything (including stuff I knew were facts) so he was clearly hiding a bunch of things. I'm sure he has an interesting story to tell.

I have the records from fax.com that PROVE that Javier contracted with them and I have copies of all the faxes that fax.com sent out on their behalf.

For more info on Javier's liability, see proof of Tom Heysek liability for sending junk faxes



Additional info that the SEC found out (highlights)



Barranquila Holdings listed on account form from Penson Financial . The home phone number that is Howell Woltz's. No name but a dob of Dec 3 1967.

Mauricio Madero was involved on the CNDD side of the Hoax

Kos started paying Kline but Heysek eventually took over that role

Kline has been convicted by US of importing hashish into the US, for which he served time

One of the nominee accounts in Trinidad, Chiang Ze Capital, Kos AND Jaynes are on power of attorney documents.

The setup

Here's the story as best as I can piece together. If there are any errors, please use the contact link to let me know about them.

What follows is MY BEST GUESS as to what really happened based on the evidence.

Jeremy Jaynes and Bryan Kos are well known e-mail spammers (on the ROKSO list). But the profit margins have eroded in their chosen profession due to a combination of factors:

Effective spam filters cut their margins and their response rates making it harder to make money
Increased competition from other spammers has driven down the prices they can charge advertisers
Increased volume from other spammers makes it harder for their spams to get above the "noise level" and thus affects the "click thru" rate which in turn means they have to charge lower prices than in the past
Fewer advertisers are willing to engage in sending out spam due to the laws
They now risk criminal prosecution and 20 or more years in prison if spams end up in Virginia. That risk is not hypothetical. It is very real. In fact, Jaynes just got sentenced in November 2004 to 9 years in prison in Virginia on spamming charges. That's a good incentive to change your business plan.
But the main reason is this: You can make a lot more money doing illegal stock pump and dumps via junk fax than you can doing spam. You make 10 times more money and there is virtually no chance you'll get jail time. So it's a smart business decision....if you are going to break the law, you might as well pick something with maximum return and no jail time.

For all these reasons, they do a little "career development" training and end up getting into the much more profitable business of "pump and dump" of securities (buy low, promote, and sell high) or just "dump" (create or print the shares yourself, sometimes illegally, and sell them since it is so unregulated nobody notices). Kos has figured this out by 2000.

Kos hooked up with Jaynes by mid-2000, and possibly before that. We know that because Internet Promos LLC has two founders: BK Ventures, Inc (i.e., "Bryan Kos Ventures") and Jeremy Jaynes and was incorporated in Nevada on June 26, 2000 (LLC6129-2000). Similarly, Bryan and Jeremy are the principals of INVESTMENT PROFILES, LLC (a Nevada company they incorporated on July 30, 2003; LLC11400-2003).

The focus is on the DOLLAR-VOLUME of the stock (i.e., the volume of stock multiplied by the price, not the price itself. This is because they get their shares for either "free" or nearly free so that the only thing that matters is how many shares they can move (dollar volume). For example, in CNDD they moved 5M shares at $8 in a single day. They "paid" 10 cents for those shares from CNDD (although in reality they probably didn't pay a dime). So they probably made close to $40M in a single day on August 11, 2004. Profit. More than likely, it was also tax free (they aren't worried about the IRS going after them...the IRS is too short staffed).

So who says crime doesn't pay? It's now 1 year later as this is being written and none of these people has been charged with a crime.

In our current situation, it's early 2004 and Jaynes and Kos connect up with Oehmke (the stock expert) who has "experience" in the stock tout area, having been cited by the SEC for his company Ventana Consultants for similar work (See Rel. No. 41755 - August 18, 1999) and later earned his stripes by running a company (Boucher, Oehmke & Co) that had been involved in selling unregistered securities to the public at manipulated prices and expelled by the NASD on or about August 23, 1991 (see Complaint U.S. Enviromental, Inc.).

Oehmke, who lives in Kalamazoo, MI, is a client of Jere Ross, a prominent attorney in Tampa, Florida. Oemke's job is to find the shell corporations that they can pump.

Interestingly, people in this line of work are known as "IR promoters," i.e., Investor Relations Promoters. That makes it sound legit. Cool eh?

Jaynes employs Rutkowski (who does technical work like websites and servers) and Jessica DeGroot aka Jessica Jaynes (Jeremy's sister) and Chad DeGroot. There are a whole bunch more people who work for Jaynes. I have their complete employee roster (and list of company names they hide behind) if you are in law enforcement.

Kos has a long-standing (since 2000) relationship with with Heysek promoting penny stocks that he brings to the partnership with Jaynes. Heysek employs Kline.

Heysek is a specialist in providing convincing looking company writeups and managing the promotion of that information and Kline appears to be a Heysek "wannabe." Both Kline and Heysek know fully well that they are wildly distorting the truth in their company writeups.

Jaynes also works out a deal with Howell Woltz to set up Worldwide Picks LTD in Anguilla where it is against the law to reveal who the officers of a corporation are. That way, if winningstockpicks.net is sued, Howell can just claim he can't tell you who to sue or how to collect from them even if you win. That's what he told me. He said it was against the law to tell people who is behind a company. I've never done service on a company in Anguilla and trying to collect on a shell would be pretty hard.

Howell's company in the Bahamas is called Sterling ACS, Ltd. So I asked Howell, "on the day you set up Worldwide Picks LTD do you recall who you spoke to?" That is not illegal for him to answer. At that point, he stopped talking to me completely.

Howell lives on Woltz Lane in Advance, NC so when you have a street named after you, you are probably a bigwig. He certainly acts consistent with someone who has a lot to hide. Also, WSP says to send your membership fee to Howell Woltz's company in Anguilla, B.W.I. which has a slightly different name, Sterling Trust (Anguilla), Ltd (it's their other "branch office"). And there are other connections with Woltz's company and Jeremy Jaynes that I found that could not have happened by chance. Woltz is definitely tied in with Jaynes. No doubt about that.

The promotional activities (website, memberships, videos, faxing, etc.) are directed by Heysek and Kos. They utilize people like Spreadbury, the Paulsons, DeGroot, etc. to create their websites (winningstockpicks.net and it's successor, uspennystocks.com) and they contract with fax broadcasters fax.com and Protus IP solutions to send out faxes (using Javier A Cuadra in Florida who has experience in fax promotion).

The memberships on the web is just a come-on to get your email address. They make all their money on the stock trades. The membership fee income stream is peanuts, and are just there to make them look like they are a legit newsletters. The goal is to get your email address and get you to sign up for the free membership so that they can push the latest "hot tip" to you via email since you're not going to remember to come back to the website. If you are stupid enough to sign up for one of the premium packages that you have to pay for, that's just fine with them...they'll take your money, but the real value is getting you to enter your email address so they can market to you on a regular basis with their latest tips.

So now they have the core team to execute their new profession of IR promotion.

That's the setup. Now here's how it operates.

The Concorde America Story (CNDD)

Hartley Lord, 75 years old, has an interesting history of securities violations (see stuff below). Among other things, Mr. Lord is the subject of a permanent injunction entered on consent in a Federal Court action brought by the SEC charging him with securities fraud and market manipulation. Mr. Lord has been barred from association with any member of the NASD in any capacity.

Somehow, Oehmke connects up with Lord. I'm not sure how they know each other. Lord told me Oehmke called him out of the blue and claimed to have met him at an investor conference. This probably happens in early to mid June 2004. Heysek gets involved too at this stage and talks with Hartley about the story they are going to use to promote the new company.

Lord claims Oehmke's attorney, Jere Ross, impresses him, so Lord hires him to represent CNDD. My notes say this was in April 2004 which is of course very interesting that they are talking even before they have acquired a shell. In short, it seems impossible to believe that Oehmke is going to call Lord out of the blue like that and he gets "lucky" to find someone who is planning on starting a company exactly at the same time he calls. It would be one thing if Lord's company had already been formed...Oehmke could have done a search on that. But months before the company is formed??!?! That's a little too hard to swallow that story.

With Ross' help, Hartley does a reverse merger in June 2004 with MBC Foods to form Concorde America. He authorizes 213M shares (an interesting number to say the least) and registers 10M of those shares to sell to the public on Rule 504 offering (limited to $1M raised) with 209.2M shares issued and outstanding.

Lord claims that Oehmke is a promoter and offers to buy the entire Rule 504 offering of 10M shares for 10 cents a share on or about June 30, 2004. Which means Oehmke valued a company with zero revenues and no employees and no contracts at $20M.

Man, I wish he'd do that for my company!! Don...if you are listening...please use the contact link and I'll give you a great deal on my company!

Anyway, Lord can now tell the SEC he just sold 10M shares to a promoter at 10 cents and he is happy he got his financing done and he goes about his business. So he's got a good cover. Oehmke however, has a lot of explaining to do on why he supposedly paid $1M for a 5% stake in a company with nothing of value. That's impossible to justify unless you are going to promote a fictitious story about the company (which is what they did).

That's exactly what happens. Oehmke tells Kos he got 10M shares of CNDD at 10 cents. Kos and Heysek arrange for a profile of CNDD to be promoted via fax, email, and web advertising.

Heysek had already gotten the basic facts from Lord in mid June. Heysek blows the whole CNDD story completely out of proportion. So a company with zero revenue as of June, 2004 is expected to do $630M in revenue in 2004 (and over $400M in Net Income!!!!!) according to Heysek and Kline.

Here's the report they published preserved as a PDF on August 13, 2004 so they can't change it: CNDDProfile on USPennyStocks.pdf. And this company is going to supply hundreds of thousands of workers under a contract with the Spanish government (later changed to an unnamed firm in Spain that employs less than 10 times that number now)!?! I don't think so!!! And according to Lord, even the CNDD officers listed in the writeup are wrong (Lord says that one is a shareholder and doesn't even work for the company).

As of November 7, 2004, it looks like my analysis was right. I see that CNDD now has a website (www.concordeamericainc.com) and they posted their SEC 15c-211 Quarterly Report of September 30, 2004 (here's a copy in case they move it: CNDD_SEC_10.12.04.pdf). Here are some highlights:

They have had ZERO revenue since inception!
If everything goes well, they expect to supply 50 workers to Spain from Costa Rica by the end of the year (but that's only if EVERYTHING goes well).
Hartley Lord is the only executive and the only board member.
There are no contracts in place.
If they sign a contract in December, it will only bring in $250,000.
They have only $16,000 in cash left!!
The company they are trying to get a contract with, Almeridor, S.A., doesn't even appear in a Google search of the entire web or Internet newsgroups.
Bottom line:

Even with CNDD's most optimistic projections, Heysek's $630M revenue projection is off by an astounding $630M!!
Our own Archer Daniels Midland (ADM) is the largest agricultural company in the entire planet. ADM only employs 25,000 people. So how could an agricultural company in Spain, which by definition must be smaller than ADM, enter into a contract with CNDD to supply 350,000 workers over the next 3 years??? Answer: They can't. That's completely impossible. Is is preposterous.
The largest employer (in any category) in Spain is the phone company with 95,000 workers. So once again, it's impossible that an agricultural company in Spain could sign a contract for 350,000 workers.
Growing revenue from 0 to $630M in 6 months is impossible. This has never been done in history. Nobody has ever been close to doing this. The company doesn't even have a website and no employees we could verify.
A net income of $400M on revenues of $630M is an absurdly high profit margin. That sort of margin could ONLY be achieved if you had protected intellectual property, like a patent, that everyone needed and there are no alternatives. That isn't the case here. Nothing they are doing can't easily be duplicated. Know of any public companies with a profit margin this high in a commodity business? I don't. It doesn't make any sense at all.
Spain doesn't have a labor shortage as indicated in the report. It's exactly the opposite...they have chronically high unemployment; one of the highest of any EU country. "Spain’s 11.4% remained the EU’s highest rate." (see Eurostat). "Although Spanish unemployment has descended to levels unseen since 1980, Spain still holds the unattractive distinction of having the highest unemployment rate in the eurozone. According to European Union statistics, Spanish unemployment in the second quarter was 14.2%, while the eurozone averaged 9.1%." according to THE SPAIN - U.S. CHAMBER OF COMMERCE.
The CNDD business model makes no sense. When you add the average wage of a worker in Spain and compare it to the cost of the Latin American workers plus the CNDD profit margin, it turns out its cheaper for a company to hire locally than pay CNDD for these workers.
The business model is simply preposterous anyway. If it were true, we'd simply transport low cost workers from India into the US and pay them 1/10 the salary of American workers. It simply doesn't pass a basic smell test
The authors of the report are proven liars
The company won't provide any information about the "contract"
The authors talked to the company even before it was formed...how could they have even found out about it?
Virtually all the top people involved in the promotion have a track record of securities fraud
But it looks credible to people without any investment experience since Heysek is so skillful, so investors buy the story and the stock. They promote the shit out of CNDD using various means (varies with each stock but a combo of Google ads, spam, junk fax, TV ads, etc). I did a Google search of "Concorde America" on August 31, 2004 and got over 16,000 pages of results; virtually every one telling you how much you'll make on CNDD and to buy it now. This is an extensive web promotion campaign.

According to statements made to me by Jon Paulson, Kos and Heysek probably direct Spreadbury to send out a phony press release talking about this monster deal with the Spanish government that was in the Heysek writeup. Spreadbury apparently does as they request and financial records obtained from the wire services show he pays the invoice from the wire services so there is no money trail to them.

Result: on a good day, 5M shares of CNDD trade at $8. In short, the bad guys net close to $40M in profit in ONE DAY. Now that's where the REAL money to be made in penny stocks is!!! But Heysek never writes about that aspect.

Put it this way:

CNDD with zero revenue and no "monster contract" that anyone has independently verified that I'm aware of (or that they even claim to have in their SEC filing), has a market capitalization that is more than Delta Airlines!

It first traded as a stock on July 28 with a $660M market cap and issued it's "Monster" press release later that same day. Remember, there are no revenues.

Here are the press releases:

Company News and Press Releases From Other Sources:

Concorde America, Inc. Disclaims Prior Information Releases
Aug 11 2004 5:09PM ET PRNewswire-FirstCall via COMTEX/
(see copies at: CNDDPressRelease.pdf and Concorde America Disclaimer)

Concorde America Revises Press Release
Aug 9 2004 6:32PM ET PRNewswire-FirstCall via COMTEX/
(see copy at: Concorde America Revises Press Release)

/C O R R E C T I O N -- Concorde America/
Aug 9 2004 3:34PM ET PRNewswire-FirstCall via COMTEX/

First Global 'Monster' Employment Placement Service Launched
Jul 28 2004 2:30PM ET PRNewswire-FirstCall via COMTEX/
(see copy at: CNDDMonsterPressRelease.pdf)
Lord claimed he gets wind of what is going on, so Kos and Heysek get Spreadbury to issue a correction. But they just change the name of who the contract is with: from the government of Spain to an unnamed company in Spain. At no time, is there a mention of the name of the company or a quote from the mystery company! Pure fabrication.

So now Lord claims he is really pissed because none of these press releases was from him so Lord has Ross draft a real press release that is really from CNDD and explains what is going on. He claims he has trouble getting the wire services to take it initially because of all that has just happened (this one is actually true; I verified it myself). He is finally able to get it run and the stock immediately tanks to $2.50 a share.

But even at that price, Jaynes, Kos, Oehmke, Heysek et al. stake is still worth $25M!!! But they've already sold close to $40M.

Of course, this whole story is hard to believe. Lord is conveniently out of the country when his company goes public and the monster press release is released by Kos's people on the first day of CNDD trading. Are we to believe that Lord didn't know about the press release at that time and the market cap of the company. Why didn't he immediately issue a correction press release? What was his lawyer Jere Ross doing? He was in the country and saw what was going on, wasn't he? And wouldn't he know how to contact Hartley? Or some other officer of this company that just signed this monster contract?

The most likely scenario is that Lord is in on the scam and the trip out of the country is the excuse for the slow response from the company. That would give Kos enough time (i.e., stock volume) to inflate the company and sell their shares without getting Lord in trouble with the SEC.

The bottom line is that after the hype, they needed enough volume of the stock to sell their original 10M shares before Lord issues the press release intended to give Lord a clean alibi and also deflate the stock so Kos can make money on taking a short position in the stock just before the press release.

Interestingly, the most active brokers in Concorde stock on Friday included Newbridge, Sunstate and Intercoastal, all Florida-based. Either NewBridge Securities Corporation (Miami, FL) or Sunstate is located approximately 3 miles from Lord's home/headquarters. NewBridge is an ethical company that cooperates with investigations so if you know of any scams in the future involving them, please let their General Counsel know so that they can investigate.

Despite the bad press, Kos and company continued to hype CNDD in August 2004 In Heysek's letter to his subscribers, he completely forgets to mention the devastating press release that the real company issued that the previous press releases were bogus. Instead, the newsletter claims they are being attacked by shorts (which was true) and that this is a GREAT buying opportunity.

From: newsletter@USPennyStocks.com
To: [snip]
Sent: Thursday, August 12, 2004 3:18 PM
Subject: USPennyStocks.com Update

CNDD: Attack of the Short-Sellers Today, the common stock of Concorde America, Inc. was attacked by a group of short-sellers. For those of you who are not familiar with short selling, it occurs when individuals or groups get together to FORCE the price of a stock down in the hope that they can pick up those same shares at a cheaper price. In other words, they want to buy your shares cheap! We view this as a tremendous buying opportunity. Our recommendations are still in place, and we feel that CNDD will see a price of $38.00 per share over the next 6 months. If you are already invested in the stock, we see this as an opportunity to add to your positions. If you are new to CNDD, this is a great chance to accumulate shares at a price we won't see again. We will update you more on CNDD this weekend in our "Weekly Update" section. News Release Disclaimer - None of the views expressed in this email are of the Company, and NO company officials have been contacted regarding this information. Click here to read our full Disclaimer

$38/share?!?! You've got to be kidding. As I write this paragraph less than 3 months after they sent that email, CNDD's stock price is less than 50 cents (it was $4 in September 2004 and was under 20 cents on November 1, 2004).

You gotta admire their tenacity. And, by the way, in general, it is very difficult to short sell any volume of a pink sheet stock as far as I know. On 8/13/04, I asked my broker if he could short 1 share of CNDD. He talked to his pink sheets desk and they couldn't because they couldn't find even a single share to borrow to do this (they had 30 calls today wanting to do the same thing). So I couldn't short a single share!!!

Prior to 8/13/04, "locates" for short sales were available in larger quantities. I know one person who shorted 25,000 shares on 8/11/04. I received the following e-mail on 8/15/04:

After the press release disavowal, everyone wanted to borrow and it became impossible to get a "locate." When I called Goldman Sachs' stock loan desk on Thursday, I was told "everyone wants that one today," which may be the first time in the history of Goldman Sachs that so many people cared about a pink sheet stock. I am not sure what statistics regarding short sellers are required to be kept for pink sheet stocks, but I can tell you with certainty that by now every share that is available to be shorted is shorted. Insiders take special precautions (like taking physical delivery of their stock certificates or prohibiting their broker from lending) so that their shares can not be loaned. As a result, inventory for short sellers is limited to the public float less any public shareholders who take anti-short seller precautions.

Fool me twice? I guess you can do it. The net result of the "attack by shorts/great buying opportunity" e-mailing is the stock price on 8/13/04 is up over $4 and has traded over 2.3M shares today. So that's another $9M in "tax free" income for our spammer friends today alone even after supposedly being exposed by the company.

What's really cool though is that Jaynes, Kos, and crew, if they are smart, would be making money on every swing.

We might imagine that this was probably carefully thought out; that every swing is planned in advance. So they have the 10M shares and pump it up to $8 and sell the 10M shares. Then they take a short position in the stock just prior to the Lord "we didn't issue those press releases" press release in order to (a) give Lord a cover story that he is innocent and (b) deflate the stock so that they can cover their short position at a profit. That might be why there were no locates on the stock; because Kos and crew had already shorted everything they could find. They use the Lord press release as the opportunity to cover their short, and then take a long position, and start the promotion again, claiming this is an ideal time to buy and they were just attacked by the shorts.

If you are wondering why CNDD just doesn't register more shares and make a fortune, here's why: under reg 504, the company is limited to raising $1,000, 000 or less, by the sale of common stock, in a 12 month period. That was done by the current 504 exclusion on or about June 25, 2004.

Final note: In Heysek's newsletter to his subscribers, he noted this amazing fact:

In the final two trading days of last week, CNDD exhibited a swing in Market Value for both days of $1.4 Billion. Remember, the OTC Bulletin Board has a total Market Value of only about $2 Billion --- a statistic we present to ensure the average individual investor has a perspective on how visible CNDD has now become among the Penny Stocks, and in a relatively brief period of time.

Note that at its peak on August 12, 2004, CNDD had a market cap of $1.9 billion.

For more info, see the excellent article on CNDD on StockPatrol.

Scam#2: Storage Innovation Technologies, Inc (SGNJ)

Let's start with the management team on this WSP promoted stock.

Don Oehmke is the Chairman (and co-founder) of Storage Innovations Technologies. Previously, Mr. Oehmke was the Chairman & CEO of Ventana Consultants (1991-2004), a business consulting and venture capital firm. As its CEO, Mr. Oehmke operated at the highest organizational levels, for both domestic and international companies.

From 1985 to 1990, he was Chairman & CEO of Boucher, Oehmke $ Company, a securities broker / dealer with 26 offices in the USA and 5 in Europe.

Does that name sound familiar. You bet!! He bought Lord's shares on the CNDD deal! Our friend Don keeps popping up!

And you gotta love Tom's writeup on Don. On August 16, 2004,I did a Google web search for Ventana Consultants LTD. I got two hits: this page and a link to Ventana Consultants, Ltd. Zero hits in Google Groups. So for a firm around for 13 years Don sure has kept a low-profile for someone who "operated at the highest organizational levels, for both domestic and international companies."

Even more cool is this tidbit I stumbled across on the SEC website: Complaint U.S. Enviromental, Inc.. Here's an excerpt:

Beginning in or about January 1990, the D'Onofrio group began selling its holdings in USE stock to the public in an unregistered offering and at manipulated prices. The stock was sold to the public primarily through two broker-dealers, Freeland Co. and Boucher, Oehmke & Co. ("Boucher Oehmke"), a defunct broker-dealer that was expelled from membership in the NASD on or about August 23, 1991.

Damn!!! Tom forgot to mention that little gem in his write-up on Oehmke!! He probably didn't think it was material I guess.

On to the deal. On this deal it's even better. Don can buy the shares for nothin' because it's his company (along with Kos)! So unlike the CNDD deal where they supposedly "risked" $1M (they bought 10M shares at 10cents), on this deal there is no downside since they probably paid virtually $0 for the stock.

Actually, SGNJ came about via a reverse merger (sound familiar?) with NATIONAL BOSTON MEDICAL INC. This was an entity run by Daniel J. Hoyng. He was President and CEO. Hoyng has an interesting history. See for example:

Lawsuit against Hoyng for securities fraud
Business Wire Law Firm Goodkind Labaton Rudoff & Sucharow LLP Announces Class Action Lawsuit Against Infotopia, Inc
Stock Patrol: Hoyng files for bankruptcy
However, the "story" they (Kos and Oehmke) put together isn't as sexy as the big contract with the Spanish government billion dollar story of CNDD. So they can't get the volume up. They make only $100K a day on a good day. Although that is great money by most measures, it's peanuts compared to CNDD. However, the benefit is that they don't attract attention of law enforcement by keeping the scams small like this.

So that's two examples of a real pump and dump (CNDD), and an example of a "dump" (SGNJ). Those are the principal methods. It's all about the volume, not the price.

But wait....There's more to this story!!!!

But that's not the end of the story... I've learned a lot more about these folks since publishing the above information. That new information is included below (see More Information below). But first, a slight digression on how these guys can get away with this without any fear of being stopped by anyone; how they can completely violate the law right out in the open, be exposed on this page, and still promote with impunity.

Who sent me the fax? Who do I sue?

So who do you sue for your junk faxes? Well, it looks like Rutkowski and Jaynes and a few more will be living in state housing for a long time so suing them may not be very productive. If you sue in small claims, you can get a quick judgment, but then you have to collect. So it's really risky suing these guys because they may not be around to enable you to collect.

I've personally decided to sue Heysek because (1) it is Heysek's analysis that is being promoted in the fax (2) Heysek and Kos direct the promotion of the site and control it and (3) Kos' website shows Heysek is an officer and shares in the upside. Also, he's not going to comply with my subpoena (see Heysek suggested discovery questions), so he'll probably lose.

Check out this page: Proof of Tom Heysek liability for sending junk faxes. It will be all you should need to prove your case against Heysek and tell you were to serve him.

I have subpoenaed Heysek's financial records. I should have these by September 10 (the timeframes are regulated by statute to allow him time to object). I believe it is extremely unlikely that Heysek would be able to quash the subpoena; since Heysek says he isn't Worldwide Picks but just a writer, this is central to my case and it won't be quashed. After September 20, I will be able to share this information with anyone filing a case against Heysek where this information is relevant.

Heysek's receptionist at his HQ rent-an-office (Gloria Valerio) appears to have been specially trained in "process server avoidance techniques" by the "Heysek Legal Academy" aka Tom Heysek. Therefore, I used a process server who has been doing this for 30 years: Jeff Cunningham at 408-395-6778. He knows the proper drill to obtain legal service in these situations.

It's extremely unlikely that Heysek will comply with discovery since it would expose his business associates, so it's an easy case to win.

See Heysek suggested discovery questions for some ideas for your subpoena/document requests. Let me know using the contact link if I missed anything obvious.

In the unlikely event he does comply, please contact me and I'll be able to discredit any phony information he might supply the court.

Also, if he does comply with any of the requests, kindly have the judge hold it in the court file so that you can make a copy of anything he produces and send it to me using the contact link so that it can be analyzed.

Junk faxes promoting TWTN, CNDD, BDYS, AHFI, SGNJ, GBEB aka APNJ are likely suspects for including in a lawsuit naming Heysek.

Howell Woltz may also be liable for sending the faxes because (1) Howell's company appears to be an aka for Worldwide Picks LTD, the company behind the website. I have proof of that so if you are filing a case, I can provide that to you. (2) the website itself says the address of Worldwide Picks LTD is Howell's company address and (3) the fact that you are supposed to send your membership fee to Howell's company further indicates that he is Worldwide Picks LTD, (4) he also incorporated Worldwide Picks LTD and (5) and he told me he can't disclose who is involved so you'll get him on discovery when he fails to tell you. You have preponderance that he runs the company and he claims he can't legally produce anything at all to deny your evidence (but provides no justification for that that I could verify). My bet however, is that he'll suddenly be able to tell you who Worldwide Picks LTD really is after he's served and during discovery. He'll suddenly find a way.

That's him above so you can provide the picture to your process server.

The bottom line on Howell is this...the only thing I could find on Worldwide Picks LTD, which is the company behind the website and is thus the company that sent the faxes, is associations to Howell's organization. So lacking any better evidence or evidence to the contrary, preponderance of the evidence clearly is that Howell's Sterling Trusts are just an aka for Worldwide Picks LTD. That's what the evidence shows and Howell can't legally show the court anything different (based on what he told me). Otherwise Howell says he'd be put in jail for 10 years (or something like that).

Here's the whole e-mail thread with Howell Woltz. I never heard back from him after I sent my response to his e-mail.

Since you can't serve Howell in the Bahamas, since he doesn't really live there anyway, you have to serve Howell at his home:

Howell Way Woltz
255 Woltz Ln
Advance, NC 27006-7644

You could also serve Sterling Trust LTD which is located in Howell's home as well. That enables you to personally serve either Howell or his wife Vernice, who is also an officer.

Note that Howell has a street named after him. I think that's pretty cool. I'd like a street named after me someday too.

Also, in my lawsuit, I plan to depose Jack Vernon Abernethy who is located in Belmont, NC, a former North Carolina state assemblyman and Republican candidate for state auditor. He was the former president of Sterling Group's insurance company - that is, until he was fired on May 6, 2004 by Vernice Woltz. Remarkably, at the same time, he was also the CPA for Tech Traders which was used the Shasta hedge fund. I guess Jack didn't have enough to do working for Howell. To find out, I called Jack on August 17, 2004 at his home in the evening. I identified myself and told him I wanted to ask him a few questions about Howell Woltz. He immediately hung up on me without saying a word. I concluded that he was trying to tell me he'd rather be deposed in this matter. I'm cool with that approach and I'm arranging for it now. See Sterling Group and investment fraud for additional info on Jack and Howell.

I'll identify additional people that I might consider suing here as soon as I am confident they are liable.

For collection work in California, I highly recommend Bryan Sampson at (619) 557-9420. He is by far the best collection attorney I'm aware of. He's one of the few collection attorneys who knows how to break off-shore trusts (and has done it). Another off-shore collection expert is David Marchant of www.offshorebusiness.com (he's a journalist with extensive knowledge of the area).

Why they can get away with doing this

Why do they do this stuff which appears that it might be pretty illegal? well, they make a shitload of money, that's why. It's the money, stupid, as they say. Like $40M in profit (tax free probably) in one day! Get it. It's a lot more profitable than spam!!!

They aren't worried about law enforcement either. They can do it all in full public view with impunity.

Here's why... because of the Disclaimer that they emphasize, it's hard to get even a civil conviction on them. So individuals are not going to risk the $500,000 in litigation costs to recover their loss (even if they won). And class action attorneys aren't going to take the case either because there are no legitimate businesses or people involved to collect from at the end of the day so the attorneys can't recover their fee. So they can't afford to take this. An SEC case would take a year to investigate, take 2 years to try, and, if the SEC wins, the worst that can happen to these guys is they have to return the money (if the SEC can find it 3 years later) and get them to promise not to do it again. But the SEC is so busy with other things, this may not even get assigned to a prosecutor. For example, the SEC didn't even stop trading on CNDD after the fraud was revealed! If the SEC didn't do that, the chance of this getting on the SEC radar is small.

So they don't worry about the SEC either. The company CNDD still has an absurdly high market cap for a company with ZERO revenue (this is written 8-13-04). The SEC is doing nothing about it.

Criminal cases are even harder to get anyone to pursue; the threshold for proof is much higher, the $ amount must be in the billions to get someone at the FBI assigned to investigate. Therefore, the US Attorney won't take the case unless the evidence is a slam dunk. The FBI is too busy chasing terrorists and crooked CEOs to bother with these guys even if there was a case. And that's really unlikely since if you can't easily win a civil case, winning a criminal case against these guys is virtually impossible.

The SEC is short of manpower so doesn't have the resources to go after them. Nobody contacts the DOJ so they won't do anything. So these guys basically rip off a lot of people and get away scott free. And if you try to sue them, they have PLENTY of MONEY to outlast you in court (and counter sue on trumped up charges) and even if you win, the most you get to recover is the $ you lost on the stock making a case against them uneconomical. So they walk away free. It's a great scam.

Think I'm kidding about the SEC? Check this out from someone who used to work there: Gary Goodenow Presents Reality At The SEC. His whole website is worth reading if you have time. Here's an excerpt:

The bad news is that it seems to me that it is more likely the fraudster in Florida will be killed by lightening then be hauled into court on a contempt hearing and sent to jail. In the six years I was at the SEC in Miami, it happened once. I did the case, and the fraudster did a week or so in the can for failing to account for the proceeds of the fraud. Investors got no money back anyway, so the whole effort ended up being an exercise in futility. But at least the guy had to assume the position in jail. And the reality was, that the whole time I was going to court hearing after court hearing in an effort to get this guy held in contempt, management at the Commission thought I was wasting time. They wanted me to move another case, so the Commission could report to Congress another statistic for the year (called: “a stat”) to make it look like we’d brought another successful anti-fraud civil action.

...

With civil remedies being as they are, the punishment and deterrence that comes from collecting the fraudster’s ill-gotten money just is not there. The money is usually hidden or gone, or so the fraudster claims, and as far as money being returned to defrauded investors, the present system is not getting the job done.

Here's a great example of exactly this. An article from the Wall St. Journal May 12, 1995:

Easy Pickings: How Career Swindlers Run Rings Around SEC and Prosecutors --- White-Collar Crooks Serve Little Jail Time, Leave Billions in Fines Unpaid --- `The Bad Guys Are Winning'

By John R. Emshwiller Staff Reporter of The Wall Street Journal

05/12/1995 The Wall Street Journal

SANTA MONICA, Calif. -- For more than a quarter century, Ramon D'Onofrio has been playing games with the law -- and mostly winning. The 67-year-old Mr. D'Onofrio, operating out of a modest office suite at the airport here, is a master stock swindler. He is responsible for fleecing the public out of tens of millions of dollars in the course of numerous stock manipulations, say officials who have tangled with him in about 20 civil and criminal investigations. A federal appeals court once referred to him as "ubiquitously criminal."

Mr. D'Onofrio has been convicted of fraud-related crimes five times and is once again under investigation, people familiar with the case say. Yet he hasn't spent a day in prison in the past 20 years -- and he served only about a year behind bars before that. His most recent criminal conviction came in 1991; he received probation. While the Securities and Exchange Commission has "permanently" enjoined Mr. D'Onofrio from future violations of securities laws, it has done so seven different times. Meanwhile, he has left unpaid about $11.5 million in fines and civil judgments. Mr. D'Onofrio isn't alone. Hundreds of career swindlers, many of whom have infiltrated legitimate industries ranging from securities to health care, are laughing all the way to the bank -- with other people's money. "If you have the aptitude and you're enough of a sociopath, there are few places where the pickings are as easy" as swindling, says Scott Stapf, investor-education adviser for the North American Securities Administrators Association, a group of state regulators.

Data gathered from government agencies show that it takes far longer to bring white-collar criminals to justice than perpetrators of other crimes. Once apprehended and convicted, swindlers generally receive light sentences -- frequently nothing more than probation and a fine. Often, as with Mr. D'Onofrio, they aren't compelled to pay back what they have stolen; extraordinarily, about $4.48 billion in uncollected federal criminal fines and restitution payments is currently outstanding.

So as long as they stay away from e-mail spam (violation of Virginia law) and unsolicited faxes, they can avoid civil litigation and get away with this. The dumb ones take the bait of the cheap advertising costs of spam and/or junk faxes and then they can get clobbered in lawsuits. But heck, those lawsuit are just a minor "business expense" compared to the profits so even with the lawsuits, junk faxing is simply smart business.

So great money, no downside (worst that can happen is that they only have to return the money that the government can prove they got AND that the government can locate), no risk of jail time. That's why they do it.

Why they won't go after me

Conversely, while our system "protects" them from any downside, it also protects anyone who knows how our legal system works (like me) and is rich enough to outlast them in court, so we have sort of a Mexican standoff here. If they have more brains than arrogance (which is true of Kos and Jaynes), they aren't likely to sue me for this writeup to try to scare me off. First, I'd re-open my investigation on them, but this time with a passion and a full-time staff of investigators. Secondly, they would be subject to the most massive document requests and most intensive depositions that they (or their attorneys) have ever been through. I am more thorough in prepping the attorneys as I am in the write-ups here. I am legally entitled to do this.

So suing me is not something that they are going want to do, no matter how badly they want to get back at me. That has not prevented Tom Heysek (who certainly appears to have more arrogance than brains) from threatening me with a lawsuit for extortion. That clearly was done before he talked with competent legal counsel. If they are arrogant enough to sue me, that would suggest I was wrong about them and that they have more arrogance than brains and they are really going to be surprised at what happens to them. They've already seen what happens to them after 8 junk faxes sent to me. That was just a cake-walk compared to what will happen to them if any of them try to file a frivolous lawsuit against me.

Right now, I'm like a little beehive in their backyard. I'm done building my beehive and I sit there waiting for them to make a mistake. If they are foolish to attack the beehive, they face a steep decline in their revenue stream and some very unpredictable consequences all with no upside for them. Only an idiot would do it, and they aren't idiots.

Here's a TINY sample of what would happen if they sued me:

I'll file a cross-complaint seeking a TRO and then a preliminary injunction and then permanent injunction to bar Heysek and Kline from writing any more stock reports and for Jaynes, Kos, and Rutkowski from sending out any spam, faxes, or otherwise advertising for any stocks whatsoever. This is called "raining on their parade."
My new "placeholder" website (which is currently a parody), www.LosingStockPicks.com, will become live, with a real staff, a professional look, and real promotion. It will do for stock frauds what junkfax.org does for junkfaxes.
"WinningStockPicks.net sues LosingStockPicks.com" makes a GREAT hook for PR. We'll get extensive press coverage which will totally blow their "business." And it will have all been instigated by them!
I'll be prompted to spend $120,000 to promote LosingStockPicks.com. Right now, it gets a few page views a day. With the promotion, my hits will skyrocket. And guess how I'll promote? Yup, using the same fax broadcasters and fax list they did so I'll hit directly to their subscribers. Unlike their faxes, my faxes are not illegal since they are public service faxes (not commercial advertisements). The faxes will be formatted to look like the traditional "pump and dump" faxes, but the content will be refreshingly honest about who is promoting the stock and what the real story is. It will be so funny (because it is being honest) that people will show it to their friends which will increase my reach (see www.LosingStockPicks.com for an example). For example, it will have copy like "this stock is heading rapidly toward $0... Our 3 month price target: 5 cents.... Don't buy this stock ever... only a moron would touch this stock at this price...you are virtually guaranteed to lose every dime you invest in this..." with a Disclaimer like: "LosingStockPicks.com ("LSP") hasn't been paid shit by anybody but we thought it was time that somebody told you the truth how a bunch of former e-mail spammers put a team together to wildly inflate a few basic facts to make a company with zero revenue worth over a billion dollars."
For every new stock they try to promote, we'll issue a press release from LosingStockPicks.com exposing the fraud. The press release will have the company ticker symbol on it so it will show up whenever anyone researches the stock in Yahoo, pinksheets.com, etc. It will have a link to the website. The website will document what really happened with earlier "picks" from Tom and Andrew.
General press coverage of their lawsuit. They'd essentially be advertising to everyone who they are and how they do it. So by bringing their suit, they'd be trashing their "business."
Of course, that won't necessarily stop them from trying. What happens is 6 months after they file, they lose. For example, see how the bad guys attack the good guys and lose every time: Hall of Shame. You can easily tell the bad guys from the good guys because they never want to answer any questions and they threaten to sue and the media for printing anything negative about them.

So it all boils down to this: it's simply an incredibly bad business decision for them to raise their profile; they will have gained nothing from the suit even if they won since the reality is that this site isn't causing them any grief. But if they attack me, I'll launch the activities above and their business will be impacted and they risk other unforeseen consequences like free coverage on 60 Minutes and other major media. So no upside and unpredictable downside...simply a really bad business decision. While Heysek would be arrogant and stupid enough to try such a stunt, Jaynes and Kos are smarter than that.

So that's why we have a detente.

More information

Since posting this web page, I've received a lot of useful information from a variety of sources including the editors at StockLemon.com and StockPatrol as well as several individuals. Here's the new data.

Harley Lord follow-up information

After reading Karen Richardson's article on CNDD in the Wall Street Journal on August 16, 2004: WSJ.com - Tracking the Numbers. I sent an e-mail to Hartley on August 16, 2004, who up till now had been fully cooperative, and asked the following questions:

how many people does CNDD employ?
where are they located?
what was the name of the company you did the contract with?
who at CNDD closed the deal?
who was the decision maker at the company that signed the deal?
how long did it take to close the contract from first contact?
do you have records of plane trips and phone calls to back that up?
did Jere Ross do the contract legal work on this contract? if not, who did?
Can you send me a copy of the contract that was signed?
did you do the reverse merger on MBC Foods before Oehmke called you or after?
Who was the attorney that handled that reverse merger?
what date did Oemke first contact you?
how long after that did Heysek contact you?
what documents did you provide Heysek?
Is there a business plan? Can I see it?
can you provide an employee roster and org chart?
when did development of the software to do this begin?
how many people worked on the software?
how did you fund the company?
who are the shareholders of CNDD?
provide resumes of the management team and where each person can be contacted?
who was your attorney before Jere Ross?
when did appoint Jere Ross to be your attorney?
have you ever talked with Bryan Kos or Jeremy Jaynes? about what?
Hartley never replied. Instead, I got a reply on August 17 from his attorney, Jere Ross, explaining why they would not answer, saying (this is an excerpt):

The company recognizes that you are performing a public service, but I trust you will acknowledge that it is not being undertaken solely for a public purpose. There is a commercial or economic foundation to your activity, and while you have every right to pursue the story as you have, the company is not in a position to assist you in that endeavor.

I explained it was only for my website since I haven't traded a share of CNDD and he replied that whatever the company chooses to disclose to the press, it would also do in a press release. And that's it.

From readers, I received the following information about Hartley Lord:

SEC CHARGES CAPITAL ENERGY WITH FRAUD IN GAMBLING VENTURE
544 words 13 May 1981
The Wall Street Journal English (Copyright (c) 1981, Dow Jones & Co., Inc.).

Excerpts:

THE SEC SAID FOUR PEOPLE, INCLUDING LIEDERMAN, TWO LONGTIME LIEDERMAN ASSOCIATES AND A DUNES CONSULTANT, PROFITED FROM THEIR INFORMATION BY BUYING CAPITAL ENERGY'S STOCK DURING THIS TIME AND SELECTIVELY TELLING OUTSIDERS ABOUT THE COMPANY'S PLANS, THUS MANIPULATING THE MARKET IN THE STOCK. THIS GROUP INCLUDED HARTLEY LORD OF LAS VEGAS, A FORMER PRESIDENT OF A CAPITAL ENRGY SUBSIDIARY; RICHARD J. WERDESHEIM OF WOODLAND HILLS, CALIFORNIA, WHO SERVED AS A CONSULTANT TO CAPITAL ENERGY; AND MICHAEL SAVAGE OF LOS ANGELES, A DUNES FINANCIAL CONSULTANT WHO THE SEC SAYS BROUGHT LIEDERMAN AND DUNES TOGETHER. LORD AND WERDESHEIM ARE FORMER BROKER-DEALERS WHO PREVIOUSLY WERE PERMANENTLY BARRED FROM WORKING AS BROKERS, THE SEC SAID.

....

THE SEC ASKED THE COURT TO BAR THE COMPANY AND ALL EIGHT PEOPLE PERMANENTLY FROM ENGAGING IN FRAUDULENT SECURITIES TRANSACTIONS. THE SEC ALSO WANTS THE COURT TO ORDER EVERY MEMBER OF THE GROUP AND CAPITAL ENERGY ITSELF, TO ACCOUNT FOR PROFIT MADE FROM THE CAPITAL ENERGY STOCK TRANSACTIONS AND TO GIVE THAT MONEY TO THE COURT.

Another reader pointed out this interesting fact, that an entire two weeks elapsed before the real CNDD issued a "correction" press release:

My sincere belief is that Hartley Lord is not innocent in this case. He waited until Concorde was worth more than $1.5 billion before issuing any press release. Alarm bells should ring, in my opinion, when the company you run out of your home surpasses Delta Air Lines in market value.

That's a good point. The press release came out the same day as the first day of trading in his company. There would be no possible way he wouldn't know about that press release. It should have been immediately disclaimed.

Another reader pointed this out:

Hartley Lord of CNDD fame has a rap sheet. Barred from securities industry for life. Ran a swindler's paradise in Union N.J. and was shut down in 1971.
Another reader sent this in on August 17, 2004:

Hats off to you.....you did an amazing job dissecting this CNDD. Although I warn you, Hartley Lord is not as innocent as you may think. Hartley has been charged by a federal court in the past for securities fraud and market manipulation. He is banned from membership with any NASD firm as well. He was definitely in on the whole thing and his trip out of the country was done purposely at the time the faxs went out.

He plays a good role as the innocent guy but he is a recidivist who has done this many times before.
I received a copy of this article:

Pace American Group reports opposition of institutional shareholder services to dissident group solicitation; ISS questions group's "backgrounds, actions and motivations"

937 words 31 May 1994 Business Wire English (Copyright (c) 1994, Business Wire)

Excerpts:

In sworn testimony in May 1994, Hartley Lord, a Committee member explained the 1992 operating loss: `There were several large paintings and pieces of jade that were bought for Mauricio's house ..."

The statement also acknowledges that Mr. Lord is the subject of a permanent injunction entered on consent in a Federal Court action brought by the SEC charging him with securities fraud and market manipulation. Mr. Lord has been barred from association with any member of the NASD in any capacity..."

Tom Heysek follow-up information

Floyd Schneider, a mortgage broker in New Jersey, who ran truthseeker.com, has tracked Heysek for 4 years. Heysek had promoted Ziasun (ZSUN) with Ray Dirks.

A little diversion for a second and let's talk about Ray since Tom trained under Ray.

Ray Dirks aka Raymond L Dirks aka Raymond Louis Dirks (CRD Number: 601699) has worked for the following companies (you can see this at NASD BrokerCheck [File Contents]):

RAS Securities Corp (CEO of RAS is Robert A Schneider). Dirks reportedly worked there in the mid-90's but this doesn't show up at nasdr.com. But a Business Week, August 1, 1994 article says he would be leaving a few weeks after the article. In Business Week, July 11, 1994, it said: "Dirks may put his name on reports -- but it does not appear on the firm's corporate filings with the SEC. Schneider and Dirks acknowledge that, as head of Ray Dirks Research -- all of whose employees work at RAS -- Dirks functions as head of research at RAS. According to Dirks, 70 of the 90 RAS employees report to him at Ray Dirks Research, which, he says, generates 80% of RAS's revenues."

Director of Research at Security Capital Trading, Inc (3/98-1/00): 520 Madison Avenue, 10th floor, New York, New York 10022-4213, 212-339-2000. Ron Heineman is the actual owner of Security Capital Trading Inc and hired Dirks. His division was known as Ray Dirks Research, A Division of Security Capital Trading, Inc, email: info@raydirks.com

Dirks & Company, Inc. (2/00 - 8/02). Cited by NASD for rules violation on 12/10/03.

Sky Capital LLC (8/02 - 4/04) Brokerage Firm CRD Number: 114657 Office of Employment Address: 110 WALL STREET 8TH FLOOR NEW YORK, NY 10005) until 4/16/04 when he resigned

Brookstreet Securities Corporation (6/16/04 to present). 50 1/2 BARROW STREET NEW YORK, NY 10014, 212-604-0282

Interestingly, John R. Rooney (of Hornblower & Weeks) was also located at the same street address as Sky Capital (John Rooney's possible involvement in this is described above).

Heysek trained under Dirks at Security Capital Trading, Inc. He used the title "CIO, Investment Strategist" according to a letter dated 2/99 received by the Wall St. Journal. You were supposed to send your check to Heysek Holdings/Security Capital Trading.

Promoting FUSA, we have the byline:

Monday, November 08, 1999 2:33 PM EST

SECURITY CAPITAL TRADING, INC. UPDATES RECENT ANALYST REPORT AFTER FOTOBALL USA ISSUES THIRD QUARTER RESULTS

Contributing Analysts: Leo Murphy and Tom Heysek For a copy of the report, contact Raymond L. Dirks of Security Capital Trading, Inc., 520 Madison Avenue, 10th floor, New York, New York 10022-4213, 212-339-2000 or 888-305-0050, or fax, 212-339-2020.

SOURCE Security Capital Trading, Inc. (C) 1999 PR Newswire. All rights reserved
CONTACT: Raymond L. Dirks of Security Capital Trading, Inc.,
212-339-2000 or 888-305-0050, fax, 212-339-2020

There's a huge thread a Silicon Investor devoted to Ray Dirks: RAYMOND L. DIRKS INTERNET RESEARCH TRIBUNAL THREAD.

Here are some excerpts from an article in BusinessWeek, July 11, 1994 , p. 128 in the Finance section:

Championing Conseco, which brought him into conflict with short-sellers who doubted the stock's virtues, was Ray Dirks at his best: a smart, often courageous stock-picker. His views about Conseco and other stocks -- mostly of small companies -- are frequently aired in the financial press, including BUSINESS WEEK. But there is another side to Dirks that is apparently not so favorable. In recent weeks, more than a dozen analysts, traders, and brokers have parted company with Dirks's firm -- some voluntarily, some not. These former Dirks associates are raising troubling questions about the Dirks stock picks widely promoted in the media, in advertisements, and in research published by Dirks and his boutique, Ray Dirks Research. Some also question the trading practices of Dirks's employer, RAS Securities Corp., a Manhattan underwriter of new issues with a mainly institutional clientele. Ray Dirks Research is a division of RAS.

Speaking to BUSINESS WEEK on condition of anonymity, former employees have maintained that Dirks and Dirks Research aggressively pitch stocks in which he and RAS have substantial unpublicized positions. And unlike Conseco, not all of Dirks's stock picks have turned out to be enduring successes. Many have tumbled in recent months (chart) -- something RAS sources attribute to investor backlash once RAS's lofty predictions failed to materialize. Among the RAS initial public offerings to fall sharply are Clinicorp, Standish Care, Nationsmart, National Wireless Holdings, Greenwich Air Services, Penn America Group, and Dynagen. RAS sources say one RAS-underwritten biotech company that climbed until recently, OXiGENE, was misleadingly promoted by Dirks as a direct result of his ownership of the stock. That is vigorously denied by Dirks and RAS Chief Executive Officer Robert A. Schneider (the RAS in RAS Securities).

MERE VICTIMS.

The allegations go beyond aggressive stock-pitching. One former high RAS official says the brokerage routinely boosted prices by placing orders at the close of trading on the American Stock Exchange, thus inflating closing prices. Also, this former official says, RAS last year owned more than 10% of the outstanding shares of one of its underwritings, Standish Care Co., without disclosing to investors as required by Securities & Exchange Commission rules. Schneider denies RAS ever engaged in either practice.

Heysek was an assistant analyst for Dirks and they put a price target on Ziasun of 4 billion dollars. Note that Kos was also involved in ZSUN promotion. Heyesek also promoted stock frauds Great White MARINE & RECREATION, INC (JAWS), China World Trade and New Tel.

ZiaSun Technologies Inc., a little-known Internet holding company in California, sued Schneider and seven other Internet posters in federal court in 1999, saying they made false allegations as part of a conspiracy to drive down its stock price.

Both Ziasun and Bryant D. Cragun, who had been ZiaSun's CEO, sued Schneider. ZiaSun and Cragun won court orders in early 2000 that barred Schneider from making further "false or defamatory" statements and required him to retract some information he had put on the message boards and a personal Internet site.

Isn't it great how the bad guys use our legal system to silence the good guys? I talked to Schneider and it turned out he didn't have legal representation because they told him they were going to settle. Instead, they sought and got an injunction, and, according to Schneider, neither Schneider nor his attorney was there to defend him. So that's how you can lose even if you are telling the truth...gotta show up in court!

Heysek was involved at JAWS:

Title: GREAT WHITE MARINE & RECREATION, INC. ANNOUNCES THE APPOINTMENT OF RAY DIRKS AS FINANCIAL ADVISOR
Summary: WACO, Texas, Jul 22, 1999 /PRNewswire via COMTEX/ -- Colin Smith, President and CEO of Great White Marine and Recreation, Inc. (OTC Bulletin Board: JAWS), is pleased to announce the appointment of Ray Dirks as Financial Advisor to the company.

Tom Heysek

Initiating Research Coverage: Strong Buy Great White Marine & Recreation (OTC BB: JAWS) March 18, 1999
Contact: Tom Heysek @ 212-339-2035
Recent Price: $2.25
52 Week High-Low: 4.50 - 0.71
Shares Outstg: 17.9 million (fully diluted) Insiders Own: 55%
Market Cap: $40.3 million Institutions Own: 21%
Net Income Book Market Cap To:
Sales Amt Mgn EPS* P/E Value* Sales BVPS
(mm) (mm) (PS)
1997 $14.3 $1.7 12% $0.29 8 x $0.33 3 x 7 x
1998 25.6 3.3 13% 0.26 9 x 0.51 2 x 4 x
1999 (e) 40.0 5.5 14% 0.30 8 x 0.82 1 x 3 x
2000 (e) 60.0 9.0 15% 0.50 5 x 1.32

So then I find this post by Meatloaf originally on Raging Bull, but re-posted on Silicon Investor: StockTalk Investment Chat Board Lawsuits (#429-6339):

Now onto your message. Sometime in March of last year, the meatloaf crowd was quite keen on JAWS. Bought alot of stock around $2. The bloody company emerged as some sort of cult...never saw anything like it, except at a "Trekkie" convention my third wife lampooned me into.

Then, one day, I decided to "drop" in in JAWS headquraters in Waco, Texas. That day was July 23, 1999...a Thursday as I recall.

The Chairman of JAWS wasn't in, however, his son was. I attended that meeting with another independent analyst. After the requisite 45 minits of Texas horse-feathers, I asked this kid to see a copy of the company's last bank statement (JAWS was supposed to have $6 mil in da' bank at the time).

One hour goes by (calling his Dad, I suspect). He says here's the March Statement...but nothing more current. We ask for April or May...nothing. Basically, we conclude, the Company is broke.

That's when the stock was at $2.50. Anybody that was part of that cult bailed out...and why in the world you would still be owning that stock at 10 cents is a mystery.

Now there is some belief that meatloaf is an AKA for Heysek:

StockTalk Auric Goldfinger's Short List (#13256-13493)
StockTalk Anthony @ Equity Investigations, Dear Anthony, (#84737-87346)
StockTalk Investment Chat Board Lawsuits (#3028-6350) which shows emails from "thomas heysek <meatloafJoe@netscape.net>"
So why would Heysek as Meatloaf deflate his own stock you ask? Simple....once you are done promoting the crap out of it and selling all your shares, what you do is then borrow shares and short the stock. Then you issue either another phoney story (or a true one, who knows) to deflate the shares. After the stock drops, you cover your short.

Therefore, you could make money both promoting the stock (as Heysek) and then deflating the same stock (as Meatloaf)! Pretty cool, isn't it?

So when you go to the NASDR site and try to lookup Tom's records, nothing comes up. That's because they only let the public access records for 2 years. There are two ways to get his CRD file: (1) ask someone who has it or (2) subpoena the information from the NASDR (see NASD - Regulation - BrokerCheck Hotline for more info).

Attorney Walter Oney posted on the Junk fax mailing list on Jul 2, 2004:

Tom Heysek called me concerning my demand letter. He was essentially incoherent, but managed to make a few, not very illuminating statements. He says is a free-lance writer who charges $250 per hour (and he wanted to charge for talking to me!). He says he has no connection with winningstockpicks but would not point-blank say whether he knew how his name and picture came to be plastered all over the web site. He claims that any writing he did for winningstockpicks was done for the New York law firm of Milbank Tweed. Since I didn't know who that was, he decided that I must be a fake attorney and hung up.

He apparently lied about doing writing for Milbank, Tweed, Hadley & McCloy LLP 1 Chase Manhattan Plaza New York, New York 10005-1413 (New York Co.) Telephone: 212-530-5000. Fax: 212-530-5219. The partner who handled Thomas M Heysek is no longer at the law firm. Nobody there remembers him, but he was client # 27625-00000.

Therefore, Oney couldn't have made up that phone conversation with Heysek since there is no possible way for Oney to have known that Heysek was a former client of Milbank Tweed.

Howell Woltz follow-up information

Woltz turns up again in another investment fraud scheme. See CFTC v. Equity, et al. Equity Information Page where he tries (unsuccessfully) to unfreeze his assets. See also Sterling Group and investment fraud.

More information on web sites set up by Richard Rutkowski

I'm actually surprised nobody has figured out all the websites owned by Richard Rutkowski/Jeremy Jaynes and posted them to the web. So I'm exposing them here for the first time on 8/18/04.

Here are just a few of the ones I ran across while doing my research.

The following websites all seem to be promoting CNDD right now (8/18/04) as "The $tock Insider":

www.Bufetparty.com
www.Dinnerpub.com
www.Dnswar.com
www.Illlilli.com
www.Lunchhotel.com
www.Lunchparty.com
www.Manchoor.com
www.Meetinguse.com
www.Nprouls.com
www.Pspons.com
www.Publicsup.com
www.Supspread.com
www.Tandoorpub.com
www.Toniclyric.com
www.Viewt.com

Coincidentally, they are all registered to:

Registrant:
IBT Telecoms LTD
1811 NW 51st suite 2508
Ft Lauderdale, FL 33309
US
425-952-0630
Fax:425-952-0630
admin@ibttelecoms.com

as is the domain:

streetinsiderstockpicks.com

This is the same spammer as webmailspace.com (also used to promote stocks) which uses an address of:
IST Consultants LTD.
7226 W. Colonial Dr #273
Orlando, Florida 32818
Phone: +1.3212340265
Fax: +1.3212340265

As can be verified at NAP of the Americas - Representative Customer List, Red Rock Hosting is the same as IBT Telecom aka IBT Telecoms LTD. Red Rock Hosting I know from subpoena belong to Richard Rutkowski who works for Jeremy Jaynes which totally explains the tie with our Kos-Heysek stock promo team. So the spam component is Jaynes-Rutkowski's contribution (spam promo) as well as some other technical services Rutkowski provided to the Kos-Heysek part of the gang.

Similarly, email with a removal address of:

eeeMedia
1413 1/2 #134
W. Kenneth Rd.
Glendale, CA 91201

means you've been spammed by Jaynes and his boys.

But Rutkowski doesn't always use the same information when registering sites.

For example, all of the following domains were registered by Richard Rutkowski and can be traced back to him, but only an expert would be able to tell this since it is not obvious (the whois records are all different (he's not THAT stupid)):

www.4youfromus.com
www.Abovethewater.com
www.Baileyhere.com
www.Biznewz.net
www.Bluecalamitymedia.com
www.Calculatedsigns.com
www.Cherrypickedofferz.com
www.Connectingtoyou.net
www.Driveron.com
www.Easternlywind.com
www.Ebargainoffers.com
www.Edgecombmedia.com
www.Especialdeals.net
www.Estockpicker.com
www.Etalulie1.com
www.Extremeupdates.com
www.Flyhighoffer.com
www.Freeemailcenter.com
www.Garrisonlists.com
www.Goaboutexcellence.com
www.Iceblocker.com
www.Ivaluepack.com
www.Keystoneprinciples.com
www.Luck-emails.com
www.Microcap-research.com
www.Moneyholdem.com
www.Nightlightmagic.com
www.Octoberreservoir.com
www.Offernotify.com
www.Partypromo.com
www.Plesn.com
www.Realmailsavings.com
www.Shootingstaroffer.com
www.Swepta.com
www.Thewebservicecompany.com
www.Wideopendream.com
www.Wishfulwing.com
www.Zunitoe.com

www.1mintoffer.com
www.Aboutexcellence.org
www.Adkudos.com
www.Bigkudos.com
www.Breakthroughretail.com
www.Direct1000.net
www.Dotcominventions.com
www.Eburgerbiter.com
www.Elistmaster.com
www.Enuy.com
www.Epinksheetreporter.com
www.Extremefeel.com
www.Geoneedle.com
www.Globalnews4u.com
www.Holidaywhispers.com
www.Hologramvisions.com
www.Januaryheat.com
www.Knopto.com
www.Lifesmarts.net
www.Likableflow.com
www.Limepear.com
www.Lovewinter.com
www.Microcap-insight.com
www.Moondanceroffer.com
www.Mysticmoondancer.com
www.Nationaltribunenews.com
www.Networksponsor.com
www.Nocostprovider.com
www.Offersusa.com
www.Oneesn.com
www.Oobesh.com
www.Powerdeal.net
www.Powerupyourdotcom.net
www.Pwdelivery.com
www.Samplescents.com
www.Saveborg.com
www.Sillydeer.com
www.Skystarsun.com
www.Skysunny.com
www.Spectacularplanet.com
www.Talulie.com
www.Talulie1.com
www.Techaboutexcellence.com
www.Thebigbonus.com
www.Todaysmoment.com
www.Townsendlists.com
www.Treestem.com
www.Valuenews4u.com
www.Warmcuddle.com
www.Warmegg.com
www.Warmtimes.com
www.Whistlingcurves.com
www.Winterfunland.com
www.Worldtribunenews.com
www.Zanadutimes.com
www.Zuniti.com
www.Zunitie.com

as well as:

www.greatermarketing.com
www.techzensend.com
CYBERDOMAINSPOT.COM
IBTTELECOMS.COM
ibttelecoms.net
talulie.com
stabilityindex.com

All these sites immediately above have home pages that are a variant of each other, e.g., compare sweptaHome.pdf with WishFulWingHome.pdf. So they do the minimum to make each site look unique and sometimes they make the sites so fast, e.g., WishFulWingHome.pdf, that the graphic name on the home page doesn't match the URL and the text. FlyHighOffer.com does indeed exist and everything is consistent. But when they made WishFulWing, they changed the text, but forgot to change the graphic (left to be the same as FlyHighOffer).

Here's the SGNJ promo on the swepta.com (216.93.189.137) website: sweptaSGNJ.pdf

Here's the CNDD promo on the lunchparty.com (64.152.130.4) home page: lunchpartyCNDD.pdf

IP address range: 207.218.144.0/21

They send out email from swepta.com, and lunchparty.com, among others. Therefore, all the following are Rutkowski sites, for example (this is just the tip of the iceberg):

64.152.130.121 vii121.lunchparty.com
64.152.130.122 vii122.lunchparty.com
64.152.130.123 vii123.lunchparty.com
64.152.130.124 vii124.lunchparty.com
64.152.130.125 vii125.lunchparty.com
64.152.130.126 vii126.lunchparty.com
64.152.130.127 vii127.lunchparty.com
64.152.130.128 vii128.lunchparty.com
64.152.130.129 vii129.lunchparty.com
64.152.130.130 vii130.lunchparty.com
64.152.130.131 vii131.lunchparty.com
64.152.130.132 vii132.lunchparty.com
64.152.130.133 vii133.lunchparty.com
64.152.130.134 vii134.lunchparty.com
64.152.130.135 vii135.lunchparty.com
64.152.130.136 vii136.lunchparty.com
64.152.130.137 vii137.lunchparty.com
64.152.130.138 vii138.lunchparty.com
64.152.130.139 vii139.lunchparty.com
69.59.191.120 swp120.swepta.com
69.59.191.121 swp121.swepta.com
69.59.191.130 swp130.swepta.com
69.59.191.131 swp131.swepta.com
69.59.191.132 swp132.swepta.com
69.59.191.133 swp133.swepta.com
69.59.191.134 swp134.swepta.com
69.59.191.143 swp143.swepta.com
69.59.191.147 swp147.swepta.com
69.59.191.148 swp148.swepta.com
69.59.191.25 swa25.swepta.com
69.59.191.26 swa26.swepta.com
69.59.191.27 swa27.swepta.com
69.59.191.65 swa65.swepta.com
69.59.191.66 swa66.swepta.com
69.59.191.67 swa67.swepta.com
69.59.191.90 swp90.swepta.com
69.59.191.91 swp91.swepta.com
69.59.191.92 swp92.swepta.com

These are all some of the domains set up by Richard Rutkowski for spam.

Here's are a some spams I got from Richard's machines ("The Stock Insider") on CNDD on August 19, 2004 and Aug 20: SpamCNDD.txt

Those spams were from domains known to be set up by Rutkowski: zunitoe.com and talulie.com as noted above.

Here's the jump page from the spam. It was on one of the domains identified above: zunitoeCNDD.pdf

They used to route via global crossing till global crossing kicked them off:

SenderBase was showing that CYBERDOMAINSPOT.COM was
sending enough email to give it a rank around 30,
which at the time was above such sources of email
as dartmail.net (Doubleclick), eBay, etc.

This network appears to have more than just a
mailing address in Florida: the bandwidth
on Global Crossing is also routed there:

(snip)
9 pos3-0-2488M.cr1.NYC1.gblx.net (67.17.64.149) [AS 3549] 12 msec
10 pos2-0-2488M.cr1.MIA1.gblx.net (67.17.93.137) [AS 3549] 44 msec
11 so1-0-0-622M.ar2.MIA1.gblx.net (67.17.67.142) [AS 3549] 40 msec
12 IBT-Telecoms.ge-6-1-0.1006.ar2.MIA1.gblx.net (64.208.158.226) [AS 3549] 44 msec
13 talls221.cyberdomainspot.com (207.218.146.221) [AS 3549] 44 msec





More on Vinnie's of the Carolinas (8/20/04)

Vinnie's Steak House & Tavern aka VINNIE'S OF THE CAROLINAS LLC (7440 Six Forks Road, Raleigh, NC 27615, Phone 919-847-7319) is also associated with 6404 PLEASANT CREEK CT, RALEIGH NC 27613-3104. There is some evidence that people associated with Vinnie's include Scott Burkhead, Michael Winslow, Paul Boehling, Howard Rockett, Lanny Bynum, Lissah Edwards, Guy Meacham, Scott Campbell. On August 20, 2004 at 1pm PST, I called Howard Rockett at (919) 848-2600. Rockett is is head of www.rbw-advertising.com aka www.dynamicbranding.com. The receptionist asked "what's this in reference to?" I said "Jeremy Jaynes." She refused to put through the call. So I said it's also regarding "Vinnie's of the Carolinas." Rockett took the call at that point. He said he doesn't know who Jeremy Jaynes is and had never heard of him. He said he knows of Vinnie's Steakhouse. I offered to explain who Jeremy Jaynes is, but he wasn't interested. He said, "I think you're full of shit" and hung up on me. He was increasingly agitated and rude throughout the call, presumably because that anyone was able to link him with Jeremy Jaynes. But since he claimed he didn't know who Jaynes was, why would he be so agitated unless he really did know who Jaynes was? Also, the address of Rockett Burkhead & Winslow is 8601 Six Forks Road which is just down the road from Vinnie's on the exact same street. If they aren't linked, then find that his name and co-workers are linked to Jaynes would probably be the most incredible co-incidence I've ever run across. Rockett could sue me if he thinks it is inaccurate and then I'd really be able to do lots of discovery on him and lots of other people to provide more details behind the connection that I found.



IMPORTANT: If you are a victim of these folks, please join this Yahoo group and wait for an announcement

Yahoo! Groups cnddStockFraud

Also, there is more information posted on a secret website if you are a government agency. Use the contact link.

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