On March 11, 2013, Octagon 88 Resources Inc (OCTX) became an official stock promotion with the release of a John Myer landing page found here paid for by Morgarten Financial followed by this report that also lists Morgarten Financial as the paying party out of a $1,100,000 stock promotion budget.
The stock promotion has helped the OCTX share price (which barely traded before March 11, 2013) rise from $3.30/share as of the close on March 8th (the day before the promotion started) to $7.75/share as of the close on April 5, 2013.
This incredible success is due in large part to the fact that the same Calgary based parties that are running OCTX are also the same parties that are paying for the market awareness and are the same parties that control the free trading stock mostly through their foreign accounts located in Switzerland.
The following report will show how this same group that had previously run COUGF, KDKN, and TAMO as insider enrichment schemes is now doing the same on OCTX.
The OCTX Set-up
Octagon 88 Resources Inc was registered as a Nevada business entity on June 9, 2008 with Clinton F Bateman as the sole officer/director of the entity.
Clinton F Bateman was issued 32,000,000 for $15,040 ($.00047/share)
Kara Bateman McDuffie (daughter of Clinton Bateman and CFO of the company) received 42,000 shares for $20 ($.0047/share).
Kara Bateman McDuffie followed in her father’s footsteps also becoming a CPA working for her daddy at Bateman & Co., Inc., P.C
On September 18, 2008, an S-1 was filed to take Octagon 88 Resources Inc public. The S-1 filing for OCTX was made effective without comment 6 days after it was filed on September 24, 2008.
To help Octagon 88 Resources Inc go public, on June 10, 2008, Clinton F Bateman signed an agreement with a Calgary based company called Unitech Energy Resources Inc (Steven Price) to acquire 50% interest in an undeveloped, unproven oil & gas lease for $15,000. $5,000 was paid up front and the other $10,000 was due within 30 days of the filing of an S-1 statement. Octagon 88 Resources Inc was also obligated to spent $30,000 on exploration costs on or before June 14, 2010.
Unitech Energy Resources Inc trades on the TSX Venture Exchanges under the symbol URX. Since 2010, the entity has done a name change to Jadela Oil Corp.
Coinciding with the name change to Unitech Energy Resources Inc, James Durward took over control of the Power Professionals Inc shell.
You scratch my back I’ll scratch yours
James Durward’s first act after becoming the CEO of Unitech Energy Resources Inc in 2004 was to hire Clinton F Bateman (Bateman & Co Inc PC) as the new accountant.
Almost immediately after Octagon 88 Resources went public, James Durward through his entity Puroil Technology Inc acquired 3,800,000 shares of OCTX stock for $38,000 ($.01/share) as part of a subscription agreement. James Durward then allegedly split the 3,800,000 shares up amongst the shareholders of Puroil Technology Inc (a private entity). James Durward was still the Director and CTO of Unitech Energy Resources Inc (TSXV: URX) at this time.
More James Durward/Clinton F Bateman links
From March 2, 2004 through March 21, 2007, James Durward was the CEO of LogSearch Inc [nka Guilin Paper Inc (GUPR)]. While with LogSearch Inc, Durward held his share ownership in the name of Puroil Technologies Inc. LogSearch Inc went public with the help of an agreement with Unitech Energy Resources Inc to market proprietary “LeadScan” geological software developed by Unitech Energy Resources Inc.
During this time the accountant for LogSearch Inc was Clinton F Bateman (Bateman & Co Inc PC).
The only company James Durward has gotten involved with that he didn’t use Clinton F Bateman as the accountant (so far) is his current venture, Fulucai Productions Ltd (FCPS)
OCTX Seed Shareholders
Beside the 3,800,000 shares sold to James Durward, Octagon 88 Resources Inc also sold another 2,800,000 shares for $.01/share to various other anonymous seed shareholders after going public.
Octagon 88 Resources Inc used the $66,000 raised to help pay off the $10,000 owed to Unitech Energy Resources Inc completing that lease agreement.
Nothing else happened for the OCTX ticker between October of 2008 and March of 2010. The share count remained at 38,642,000, no exploration was ever done on the oil & gas property, and no revenues were ever generated. Cash just slowly dwindled away.
Enter the Swiss Crew
On April 28, 2010, Clinton F Bateman resigned and was replaced by Donald Hryhor. At the time of his assignment, Donald Hryhor was also a director with TAMM Oil & Gas Corporation (TAMO). Donald Hryhor had just recently resigned as a director for Deep Well Oil & Gas Inc (DWOG).
When the $30,000 in exploration costs for the Unitech lease came due, OCTX decided the property did not merit any exploration costs and the agreement was allowed to lapse causing OCTX to lose all rights to the lease. Obviously this was probably the plan all along.
On August, 13, 2010, Donald Hryhor acquired the 32,042,000 shares owned by Clinton Bateman and Kara Bateman McDuffie for $50,011. He placed those shares in a Swiss entity called, 888333333 Holdings Limited located in Zurich.
On September 8, 2010, OCTX sold 500,000 shares to an anonymous non-US citizen for $.05/share to raise $25,000
On June 21, 2011 Philip Thomann replaced Donald Hryhor as the CEO and Chairman of OCTX. The 32,042,000 shares remained in the name of the Swiss Entity, 888333333 Holdings Limited.
Philip Thomann is a self employed financial consultant from Switzerland.
OCTX had already run out of cash by this time and had started borrowing money from Kenmore International S.A. which is listed as the shareholder of 888333333 Holdings Limited. Since Donald Hryhor was named as the sole shareholder of 888333333 Holdings Limited in earlier OCTX filings this would make Donald Hryhor the control person of Kenmore International S.A. It is my belief though that Kenmore International S.A. is actually controlled by the Tighe brothers and other insiders and that these shares never actually went to Donald Hryhor.
Kenmore International S.A. is a Panamanian entity that uses nominee officers
Enter Zentrum Energie Trust AG (William Tighe and Garry Tighe)
On May 9, 2012, Philip Thomann resigned and was replaced by Moufid Makhoul. Moufid Makhoul was also from Switzerland where he was working as a self-employed business consultant. His most current consultant position was as the principle consultant to Zentrum Energie Trust AG
On August 16, 2012, Moufid Makhoul was replaced by Feliciano Tighe. Feliciano Tighe who was only 19 year old was also from Switzerland and worked along side Moufid Makhoul as a consultant for Zentrum Energie Trust AG. While finishing up school in 2011, Feliciano Tighe did a training program at CEC North Star Energy Ltd.
The control person for Zentrum Energie Trust AG is William Tighe (probably the father or uncle of Feliciano Tighe).
- William Tiche became the Chairman of TAMM Oil & Gas Corp (TAMO) in 2007.
- William Tighe has been involved in Kodiak Energy Inc (KDKN) since October 3, 2005 (becoming the CEO in June of 2006)
- William Tighe has been involved in Cougar Oil and Gas Canada Inc (COUGF) since 2009 (becoming the CEO in February of 2010)
Feliciano Tighe’s first corporate action was to settle the $35,472.87 debt with Kenmore International S.A. (Donald Hryhor) by issuing him 35,473 shares ($1.00/share)
Feliciano Tighe’s second act was to sign a financing agreement with William Tighe (Zentrum Energie Trust AG) in which Zentrum (William Tighe) would pay OCTX $500,000 in exchange for 200,000 shares ($2.50/share) plus warrants to acquire an additional 400,000 shares at $3.00/share.
Signing on behalf of Zentrum Energie Trust AG was its director, Guido Hilekes.
Guido Hilekes was yet another Tighe pawn and TAMO and KDKN insider.
Next William Tighe and his associates needed to set up OCTX with some new assets to support the future pump&dump.
CEC North Star Energy Ltd share exchange agreement #1
On October 15, 2012, OCTX signed an agreement to give another 14,000,000 shares to William Tighe (Zentrum Energie Trust AG) in exchange for 3,100,000 shares of CEC North Star Energy Ltd. OCTX valued those 14,000,000 shares at $4.50/share putting the acquisition on its books as a $63,000,000 asset.
The acquisition agreement with Zentrum Energie Trust AG closed on December 24, 2012. At this time the OCTX stock had begun to see some very light trading on the open market at $3.15/share making the 14,000,000 shares that went to Zentrum Energie Trust AG now worth $44,100,000.
Following the arms length acquisition agreement between CEC North Star Energy and OCTX, Kenmore International S.A. (Donald Hryhor) agreed to cancel 31,942,000 of his 32,077,473 shares
OCTX also agreed to do a 3:1 forward split subsequent to the acquisition of CEC North Star Energy stock from Zentrum Energie Trust AG. The 3:1 forward split never ended up happening.
More about CEC North Star Energy Ltd
CEC North Star Energy Ltd, which is based in Calgary, was formed in June of 2012 when CEC Carbonate Energy PLC and TAMM Oil & Gas (TAMO) combined their assets to form a new entity known as CEC North Start Energy Ltd.
CEC Carbonate Energy PLC is is an Isle of Mann entity controlled by the same Swiss company, Zentrum Energie Trust AG, using the same group of properties. The management team for CEC Carbonate Energy PLC includes Garry Tighe (the brother of William Tighe) who currently resides in Switzerland and Guido Hilekes.
Garry Tighe, who was a debt Note holder in TAMO, is an advisor for Zentrum Energie Trust AG and the Chairman and CEO of CEC North Star Energy Ltd.
Guido Hilekes is the president and director of CEC North Star Energy Ltd.
CEC North Start Energy Ltd and TAMO PR’ed about their joint venture partnership often.
Yet another Tighe once showed up as a beneficial share owner in Deep Well Oil & Gas Inc (DWOG) named C. Ruiz Tighe. I wonder what his/her relationship is to Garry, William, and Feliciano.
CEC North Star Energy Ltd share exchange agreement #2
On January 24, 2013, OCTX would end up entering into one more agreement to acquire more stock and property through CEC North Star Energy
This time OCTX would issue another 5,310,000 shares to some other CEC North Star Energy shareholders for 1,410,000 more shares of CEC North Star Energy (which do not forget is a private entity). The OCTX stock was valued at $3.30/share on the day of the acquisition making this a $17,523,000 acquisition
The share exchange shows that those 1,410,000 CEC North Star Energy shares came from Maushen Finanz Inc (705,000 shares), Morgarten Financial (352,500 shares), and Kenmore International (352,500 shares). All three of those entities share the same address at Feldeggstasse 12, Zurich Switzerland 8008.
That means Maushen Finanz Inc got 2,655,000 OCTX shares, Morgarten Financial got 1,327,500 OCTX shares, and Kenmore International got 1,327,500 more OCTX shares.
The name Morgarten Financial would come up again as being the paying party for the current OCTX promotion (more on this later).
Maushen Finanz Inc was a private placement shareholder for TAMO (notice the name of the signer for Maushen Finanze Inc is conveniently left off the TAMO filing)
Maushen Finanz also owned lots of shares in COUGF through debt conversions.
The New OCTX Share Structure
The outstanding share count for OCTX now looks as follows:
Total Outstanding – 26,545,473 shares
Zentrum Energie Trust AG (Swiss entity controlled by William Tighe) – 14,000,000 shares
Maushen Finanz (Swiss entity) – 2,655,000 shares
Morgarten Financial (Swiss entity paying for OCTX promotion) – 1,327,500 shares
Kenmore International S.A. (Panamanian entity) – 1,462,973 shares
Puroil Technology Inc (Canadian entity controlled by James Durward) – 3,800,000 shares (costing $.01/share)
Other Seed Shareholders – 2,800,000 shares (costing $.01/share)
Anonymous foreign private placement shareholder – 500,000 shares (costing $.04/share)
On January 29, 2013, young Feliciano Tighe resigned having served the his role well for his family. William Tighe’s righthand man, Guido Hilekes, took over as the new CEO just ahead of the soon to begin paid promotion.
As was already mentioned, Guido Hilekes is another TAMO and KDKN (through COUGF) insider and an officer/director for Zentrum Energie Trust AG, CEC North Star and CEC Carbonate Energy.
Familiar IR Firm
Running the IR side of things for OCTX is Helvetic Prime Baldi (Alexander Baldi) of Switzerland
Alexander Baldi is also the IR for TAMO and CEC North Star Energy Ltd.
The Promotion Begins
On March 11, 2013, the OCTX promotion officially started with a John Myers landing page news letter. In the disclaimer it states that:
“Morgarten Financial has managed a total production budget of $150,000 for this advertising effort. John Myers’ Secret Stocks is being paid $7,500 and also expects to receive new subscriber revenue as a result of its participation in this advertising effort”
Subsequent email alerts received on March 13, 2013 showed pointing to this report shows that Morgarten Financial is managing a total production budget of $1,1000,000.
“Morgarten Financial has managed a total production budget of $1,100,000 for this advertising effort. John Myers’ Secret Stocks is being paid $7,500 and also expects to receive new subscriber revenue as a result of its participation in this advertising effort.”
Morgarten Financial had previously paid for promotions for COUGF, KDKN, and TAMO.
What do COUGF, KDKN, TAMO, and OCTX all have in common? William Tighe
Remember that Morgarten Financial received 1,327,500 shares in the 2nd share exchange agreement with CEC North Star Energy Ltd. Those 1,327,500 shares are currently worth $10,288,125 making that $1,100,000 budget a great bargain.
KDKN and TAMO were also both pump&dumped using paid promotions. TAMO on several occasions.
Some Swiss Promotion Support
One promotion company has been involved in helping to promote all four Tighe ticker. That company is SISM Research. SISM research is a Swiss company run by Ernest Schlotter.
SISM Research did “research reports” for KDKN, COUGF, TAMO, and on February 28, 2013, SISM initiated coverage of OCTX with this 9 page report. SISM lists no compensation for their OCTX report, but in the past they have disclosed compensation for their coverage of TAMO and COUGF:
“Morgarten Financial Services Morgarten has retained and paid SISM Research SISM six thousand eight hundred US dollars to resume continuing coverage of TAMM Oil and Gas , Canada Inc , for a two-year period”
“Morgarten Financial Services (“Morgarten”) has retained and paid SISM Research (“SISM”) six thousand eight hundred and fifty US dollars to resume continuing coverage of Cougar Oil and Gas, Canada Inc., for a two-year period, and Morgarten is under contract to pay SISM an ongoing fee of one thousand eight hundred and fifty US dollars per month over that two-year period to ensure continuation of SISM’s independent coverage of Cougar Oil and Gas, Canada Inc”
Once again the paying party is Morgarten Financial (same party paying for the current OCTX promotion).
OCTX is way over valued
In the latest 10-Q, OCTX values their investment in CEC North Star (and its properties) as a $44,100,000 asset based on the 14,000,000 shares given for the acquisition of the assets and the share price of those OCTX shares ($3.15/share) at the time of the transaction. In reality, OCTX makes it very clear that the actual value of the properties are unknown as they are still unproven/unevaluated properties.
“Pursuant to the requirements for closing, on December 21, 2012, the Company issued a total of 14,000,000 restricted shares of the Company to Zentrum which we have valued at $3.15 per share for a total acquisition cost of $44,100,000. The Company is currently valuing this acquisition at this cost because this was the fair market value of the shares issued on the date of the transaction which is deemed to be most accurate at this time. The actual value of the North Star shares is currently being evaluated and this value is believed to be greater than the current carrying value. Going forward the Company will account for this investment applying the Equity Method (APB No. 18) , and an audit of North Star is under consideration to ascertain the value of the transaction.”
Keep in mind that TAMO used many of the same assets in their filings for years often touting their potential value in the billions of dollars in their press releases. In August of 2012, the last of the properties owned by TAMO were returned to the Providence of Alberta because they were deemed worthless. After returning those leases, TAMO had to impair the value of those leases which they had listed as $10,259,918 on their balance sheet.
Despite the joint ventures with COUGF and CEC Carbonite Energy and CEC North Star Energy, TAMO did not make a single penny in revenues from all those properties that they had been touting as very valuable for years. Take all of the properties that TAMO once issued stock for that they no longer own and TAMO has impaired $74,825,667 from their balance sheet.
Now OCTX has interest in many of same properties and is following the same path as TAMO and KDKN, and COUGF by issuing shares to the same group of insiders that used TAMO, KDKN, and COUGF for insider enrichment schemes.
The properties get funneled down and passed around in arm length agreements and the publicly traded shares get funneled up to the same insiders each time.
The relationship is very incestuous. COUGF did joint partnerships with KDKN, COUGF did joint partnerships with TAMO, TAMO did joint partnerships with CEC Carbonate Energy and CEC North Star, CEC North Star did joint partnerships with OCTX. Each joint partnership helped to get the insiders of this group lots of shares. Each new public entity brought into the mix also allowed new opportunities to issue shares to this group of insider through private placement funding and debt conversions
Bottom line is that the Octagon 88 Resources Inc (OCTX) is being artificially supported by a paid promotion. The purpose of all paid promotions is for insiders to dump stock. OCTX insiders are holding tens of millions of dollars worth of free tradings stock that can be dumped during this promotion.
Eventually OCTX will lose most of its value just like its predecessors.
KDKN peaked at $4.48/share on 5/01/07 and now trades at $.012/share down over 99.7%. The company is now dead. Even the website no longer exists.
COUGF peaked at $5.24/share on 1/05/11 and now trades at $.007/share down over 99.8%. The company is now dead. Even the website no longer exists.
TAMO peaked at $3.14/share on 6/24/11 and now trades at $.20/share down over 93.6%. The company is still very much active and will probably continue to issue and dump shares and lose more value.
At $7.75/share OCTX has already surpassed each of its predecessors and may already be nearing its peak.