08 Jun A peek behind Stock Market Authority
LEXG/RAYS - Michael Kang and Francisco Abellan - Stock Market Authority (SMA)
Before getting into how Kang and Abellan set up LEXG and RAYS for massive pump&dumps, first some background on these two.
Michael Kang (aka Kang Young-Ho) and Francisco Abellan (aka Francisco Abellan Villena aka Francis Villena aka Frank Abel) have a working relationship going at least as far back as 2006 when Abellan was running a massive pump&dump campaign on GHL Technologies Inc (GHLT) [now known as Green Bridge Industries Inc (GRBG)] that led to SEC litigation and a judgment against Abellan.
Here is a great article about the GHLT pump&dump and subsequent litigation. The whole set up and execution of that promotional scam sounds very very familiar.
"Abellán paid Hew-Len and the firm $500,000 in exchange for millions of shares, without disclosing the transaction to regulatory authorities.
In April 2006, Abellán paid a Wichita, Kan., printer nearly $1 million to print and distribute millions of mailers touting the stock among U.S. investors, according to the complaint. At the same time, Abellán and the company coordinated a barrage of news releases exaggerating the terms of contracts entered with cement makers Titan America and Cemex, the complaint said.
Shares jumped from $1.83 in early May to a high of $8.80 in June. Abellán sold his shares in late May and stashed some $13.5 million in proceeds in Andorra, the complaint alleges.
The stock traded at less than a penny in August, the SEC said."
Francisco Abellan used the same Panamanian business entity mentioned in the SEC litigation, Vega Star Capital, to set up a financing agreement with Manaki Mining Inc (MNEK) [formerly known as Red Rock Pictures Holdings Inc (RRPH) and now known as OSL Holding Inc (OSLH)] becoming Manaki Mining Inc's majority shareholder.
On May 17, 2006, MNEK signed a stock purchase agreement with Vega Star Capital (Francisco Abellan). MNEK sold 1,500,000 shares to Abellan making him the majority shareholder. As part of the share purchase agreement, Patricia Hutchins was assigned as the sole Officer and Director of the company.
According to peoplefinders.com Patricia Hutchins is the wife of Michael Kang.
Four short months later MNEK would do a share exchange with Red Rock Pictures, Inc., an entity controlled by Robert Levy and National Lampoon, Inc. (an entity connected to Tim Durham and Dan Laikin who were involved in their own securities fraud issues)
Michael Kang and Francisco Abellan would cross paths again as co-owners of an entity called Bridge Capital LLC.
Kang and Abellan (aka Francis Villena) were very large beneficial shareholders in both BodyTel Scientific Inc (BDYT) and Qnective Inc (QNTV) [now revoked]
Some background on BodyTel Scientific Inc (BDYT)
BDYT (a nevada business entity) went public in 2005 as safenet.com. One short year later in December of 2006, BDYT signed a joint venture agreement with a German company called Safe-com GMBH & Co. and another company called Glucotel Scientific Inc which was controlled by another German named Stefan Schraps.
Stefan Schraps would become the new CEO of the BDYT shell.
Providing the $625,000 to fund the joint venture agreement was a Panamanian entity secretly controlled by Francisco Abellan called Galaxy Equity Holdings Inc which was set up just like all the Panamanian business entities listed in the GHL Technologies Inc litigation.
Some how Vega Star Capital would also gain control of 1,500,000 shares around this same time.
On February 27, 2007, Vega Star Capital and Galaxy Equity Holdings Inc held a combined 2,125,000 of the 3,975,000 outstanding shares as documented in this filing.
The individual signing the joint venture agreement for Safe-com GMBH & Co. was Tan Siekmann.
Tan Siekmann's partner with Safe-com was none other than Roman Rumpf and Tom Friedli
of RAYS. As pointed out by Janice Shell in her streetsweeper article.
Rumpf's name still shows up on the domain registration for safe-com.com.
So we now have Michael Kang, Francisco Abellan, Tan Siekmann, and Roman Rumpf all connected to BodyTel Scientific Inc (BDYT)
Roman Rumpf's partner with Raystream GmbH is Thomas Friedli. Tan Siekmann uses Friedli as a partner with another German entity known as eLogic GmbH.
eLogic has an American counterpart called elogic North American FX Inc.
The addresss of elogic North American FX Inc matches that of a popular Vancouver attorney with an interesting past:
Gerald R. Tuskey
Corporate and Securities Lawyers
400 - 570 Granville St
Vancouver BC V6C 3P1
McDonald Tuskey would end up doing a large amount of legal work for LEXG.
One of the officers listed for North American FX Inc is Michael Kang (president).
Joel Warren states in his Linkedin profile to be the Co-Founder and Managing Director of Elogic LLC.
Joel Warren also lists on his linkedin page that he was the Strategic Business Partner for North America at BodyTel GmbH , which is connected to Kang, Abellan, and Siekmann's disastrous BodyTel Scientific Inc (BDYT) pump-and-dump. BDYT went from $3 to $0.02 in three months. Joel Warren would also become involved with this same group with another more recent pump&dump known as RAYS.
Some background on Qnective Inc (QNTV)
Qnective Inc went public shortly after BDYT in April of 2006. The original name for the shell was Sotech Inc.
On October 27, 2006, a British Island company called Lacroix International Holdings, Inc purchased controlling interest (2,000,000 out of 3,500,000 outstanding shares) of the Sotech Inc shell.
Joe Hicks was planted as the CEO.
Sotech Inc signed an identical joint venture agreement to that done by BodyTel Scientific Inc (BDYT)
Same joint venture terms. Same $625,000 in financing needed.
This time the two companies involved in the joint venture agreement was Qporter Inc (Oswald Ortiz) and MultiMedia Holding AG (a Swiss company controlled by Walter Demuth). Primary shareholders of Multimedia Holding AG were Oswald Ortiz, Tan Siekmann, and Stefan Schraps.
The name of the entity was changed to Qnective Inc (QNTV)
Somehow through the agreement a Nevis entity called Capella IV LLC gained control of 2,200,000 shares (57% ownership). Upon the completion of the joint venture agreement, Oswald Ortiz became the new CEO. Capella IV LLC is an entity controlled by Michael Kang.
A 15:1 forward split was executed to set up the insiders for even more future enrichment. Capella IV LLC then had 33,000,000 out of 57,750,000 outstanding shares.
On November 15, 2007, Francoise Lanter became Chief Financial Officer, Secretary and Treasurer, and a director, and Mr. Tan Siekmann became Chief Technology Officer and a director of QNTV.
Tan Siekmann resigned from his officer/director positions on July 25, 2008.
Roman Rumpf was Project and Product Manager at Qnective Inc (QNTV)
Michael Kang and Fransisco Abellan show up in the picture in August of 2008 with this signed stock purchase agreement between their entity, Bridge Capital LLC, and an outsider investor name Nick Furlong. The agreement says that Bridge Capital agrees to transfer 16% of their 49% ownership in QNTV over to Nick Furlong.
So we now have Michael Kang, Francisco Abellan, Roman Rumpf, and Tan Siekmann all connected to Qnective Inc (QNTV)
On October 1, 2008 a very interesting agreement is filed between Qnective Inc, MultiMedia Holding AG, Safe-com, Capella IV LLC, and Qporter Inc.
The agreement lists Oswald Ortiz, Tan Siekmann, and Stefan Schraps as the main shareholders of MultiMedia Holding AG.
As part of the agreement Capella IV LLC (Kang) agrees to transfer over ownership of 30,550,000 shares to Ortiz, Siekmann, and Schraps.
Also in the agreement Kang through another entity he controls, Connwards Management Inc (a Belize Corporation) gains 1,250,000 shares.
When the very confusing mostly arms length agreement was all said and done the beneficial ownership of QNTV looked like this:
Finance 500 Inc shows up as the beneficial owner of 5,090,000 shares the May 18, 2009 beneficial owners list. I noticed they have been in hot water with the SEC in the past.
Later in July of 2009 a filing is done by Ortiz and Kang in which the everybody forgives everybody for a certificate for 31,000,000 shares of QNTV stock worth some $90 million dollars owned by Kang that some how got lost.
I have never seen a company enter into so many stock subscription and bridge loan agreements and then cancel just about all of them.
QNTV terminated its stock registration with the SEC on December 11, 2009. Qnective, Inc's common stock was deleted effective December 15, 2009 on account of its filing the Form 15.
In February of 2011, Qnective Inc was dissolved as a business entity.
Panamanian entities controlled by Francisco Abellan named in the SEC litigation against Abellan also showed up as shareholders in other publicly traded shells.
Universal Bioenergy Inc (UBRG)
In this 10Q filing done by UBRG for the period ending June 30, 2011, UBRG discloses Abellan's illegal involvement in the shell setting up debt Note arrangements with two Panamanian Entities that he controlled, Lacroix International Holdings, Inc and Mortensen Financial Limited.
Eco Depot, Inc (ECDP)
In this ECDP filing done on May 15, 2008, we see another Panamanian Entity controlled by Abellan and named in the SEC litigation, Halston Capital Ltd. Halston Capital, Ltd took control of the shell gaining 68% of the outstanding shares on October 26, 2006 (not too long after the shell went public).
The formation of LEXG
Some time in 2010 Fransisco Abellan and Michael Kang became involved in the LEXG shell (then known as Mariposa Resources, Ltd.)
Kang who is a member of the golf club in Scottsdale, Arizona literally snatched Alex Walsh off the street and had him assigned as the puppet CEO of LEXG in November of 2010. Kang would often meet with Walsh at the golf club in Scottsdale.
The assignment of Alex Walsh as the puppet CEO was quickly followed with a merger with a brand new business entity called Lithium Exploration Group Inc that was formed the same day.
Kang then visited the a local printing shop in Scottsdale called O'Day Printing and had the very expensive 12 page hard copy newsletters printed up for the Stock Market Authority (SMA) stock promotion.
On January 12, 2011, Gekko Industries Inc. acquired a total of 5,000,000 shares of the Issuer’s common stock from Rossanna Vivo, the Issuer’s former officer and director, in a private transaction for approximately $0.001/share or $5,000. The shares were purchased by Gekko Industries Inc.’s personal funds.
Several stock promotion sites were set up all sharing the same server (observe the date of this post 4/29/11 - before RAYS was even known to anybody).
The main domains all connected to the same server includes:
agoramultim.com (a main entity involved in the LEXG promotion)
circuit-media.com (a main entity involved in the LEXG promotion)
elogigfx.com (elogic - connected to Kang and Siekmann)
gekko-industries.com (owner of 5,000,000 shares of LEXG)
frsmedia.net (foresight - a media main entity involved in the RAYS promotion)
ray-email.net (connected to RAYS)
smauthority.com (main website doing both the LEXG and RAYS promos)
thestockdetective.com (other main website doing both the LEXG and RAYS promos)
unlimited-trade.com (owner of 5,000,000 shares of RAYS - paid for RAYS promo - connected to Siekmann)
The LEXG promotion kicked off on March 31, 2011. It was helped along with several press releases by the company.
LEXG played exactly like GHL Technologies Inc (GHLT) before it.
Attorney used with LEXG was the same one connected to past Abellan/Kang plays listed in this post, McDonald Tuskey.
LEXG which started trading at $.12/share would skyrocket to a high of $10.68/share on 4/28/11. It has since dropped to around $.58/share and has been occasionally re-pumped from time to time.
The lastest filings show that LEXG is still yet to realize any revenues while assets quickly dwindle and debt Notes quickly mount. The future for LEXG will be as a dirty sub-penny stock.
Formation of RAYS:
Raystream Inc was incorporated in Nevada under the name Interdom Corp on December 8, 2009 with an authorized share count of 75,000,000 by Igor Rumiantsev.
The stock began trading on the OTCBB under the symbol ITRD around November 5, 2010 with the help of Thomas E Puzzo.
On April 14, 2010, Igor Rumiantsev, who incorporated the entity and at this point in time was the sole officer and director, purchased 3,500,000 shares of common stock for $3,500.
On June 14, 2011, Igor Rumiantsev sold all of his 3,500,000 common shares in a private share purchase transaction to Unlimited Trade Inc. for $200,000 giving Unlimited Trade Inc. voting control of 83.8% of the Company’s outstanding and issued common stock.
After Unlimited Trade Inc gained control of the shell, Igor Rumiantsev resigned and Roman Rumpf was assigned as the sole officer and director of the entity.
Unlimited Trade Inc is a Panama entity with the same officers as Gekko Industries (obviously set up by the same people - Abellan, Kang, and Siekmann).
Power of Attorney for Unlimited Trade belongs to Tan Siekmann.
On July 12, 2011, Roman Rumpf resigned from all the officer positions (remaining on as a Director) and Brian Petersen was planted in his place as the sole officer of the entity.
Brian Petersen is from Dallas Texas where he was involved in a company called Petersen-Hines LLC.
On July 18, 2011 ITRD signed a financing agreement with Unlimited Trade Inc. Unlimited Trade Inc. provided ITRD with $2,000,000 in financing which became a convertible debt Note.
On August 22, 2011 Interdom Corp (ITRD) did a name and symbol chase to Raystream Inc (ITRD) and executed a 37:1 forward split.
Unlimited Trade Inc's 3,500,000 shares became 129,500,000.
On September 19, 2011 a bunch of stuff happened
Unlimited Trade Inc canceled their 129,500,000 shares.
Unlimited Trade Inc converted its $2,000,000 convertible Debt Note into 5,000,000 common shares (a price of $.40/share).
The shares were exempt from registration under regulation S "offshore transaction".
Also Raystream Inc purchased Raystream GmbH for 20,000,000 shares of RAYS stock making Raystream GmbH a wholly owned subsidiary.
Raystream GmbH is a German entity that was only just created on July 21, 2011.
The person that created Raystream GmbH was Tan Seikmann using his entity Unlimited Trade. Roman Rumpf was assigned as the original CEO of Raystream GmbH.
On August 25, 2011 Rumpf stepped down as an officer of the foreign entity and Thomas Friedli became the sole officer. The same Thomas Friedli that is a partner with Siekmann in elogic.
On October 3, 2011 FINRA approved a symbol change to RAYS.
Then immediately after that the paid promotion started.
My guess is that Siekmann took care of most of the tech stuff involving the webites, and Abellan probably quarterbacked the whole thing and took care of setting up the Panama based entities.
LEXG and RAYS were a replay of GHLT
BDYT and QNTV were also used by this crew for their own manipulative self enrichment.
Latest update on RAYS shows a lawsuit filed by Joel Warren and Chase Tarbor against RAYS and Siekmann
Joel Warren and Chase Tarbor are also from Dallas Texas just like Brian Petersen
Siekmann originally was in negotiations with his old business partner from BDYT, Joel Warren, and Chase Tarbor of Sectel Inc to involve them in the tech based pump&dump scheme, but later for reasons that are still not completely clear, Siekmann and his crew ditched Warren and Tarbor instead setting up their own foreign business entities with Roman Rompf and Tom Friedli (both also from BDYT) to use for their insider enrichment stock promotion pump&dump scheme under the RAYS ticker.
Basically, it sounds like Siekmann, Abellan, and Kang originally were going to set up a public shell then purchase the Sectel entity to transfer shares to insiders to dump during the paid promotions but decided to screw over their old BDYT partner, Joel Warren, instead setting up a German Entity of their own to purchase transferring tons of shares to the insiders (Siekmann, Abellan, and Kang) leaving Warren and Tarbor out of the loop and now Warren and Tarbor are suing their old BDYT partners
RAYS insider owned German entity which they paid 20,000,000 shares to acquire is now being liquidated
Die Raystream GmbH mit dem Sitz in Lichtenfels wird mit Wirkung zum 31.03.2012 aufgelöst. Die Gläubiger der Gesellschaft werden aufgefordert, sich bei dem Liquidator Thomas Friedli zu melden.
The Raystream GmbH, based in Lichtenfels is dissolved with effect from 31.03.2012. The creditors of the company will be asked to report to the liquidator Thomas Friedli.
RAYS never got any hard copy mailers and was not as successful as the LEXG pump&dump.
Stock Market Authority would make another appearance recently being paid to help promote SEFE under a slightly altered website domain.
Stephen Kerr and Michael Quiel belong to the same Country Club as Michael Kang in Scottsdale, Arizona so it make complete sense how Kerr, Quiel, and Harold Sciotto, hooked up with Michael Kang and Francisco Abellan for this stock promotion campaign to help dump large blocks of shares they controlled - documented in some of my past research here and here.
At first glance it would appear that SMA joined the promo late (several days after pennystockwizard) as extra support because the share price wasn't holding up well.
The original LEXG and RAYS promo videos posted by SMA have disappeared from the internet, but listen to the voice in this RAYS video.
Same voice as in the pennystockwizard video and I'm nearly positive it is the same voice that was in the LEXG and RAYS promo videos. The voice of Elliott Dobbs which is obviously a made up name. This tells me that SMA probably is pennystockwizard and that they were involved in the SEFE promo from day one and probably later used their SMA name to try to add extra support to the promotion. A promotion that they received $2,274,560 to lead.
SEFE was not quite as successful as past SMA picks.