03 May Octagon 88 Resources (OCTX) – The complete ugly truth
On March 11, 2013, Octagon 88 Resources Inc (OCTX) became an official stock promotion with the release of a John Myers 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 a high of $10.33/share on April 18, 2013 before starting the very predictable fall back down towards its starting point. In all over $65,000,000 in volume has been generated by the OCTX paid promotion and many investors that were convinced to buy the stock at too high of a price or to hold the stock too long have suffered devastating losses from the illegal stock promotion campaign.
This incredible success is due in large part to the fact that the same Calgary and Swiss 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 and Panama.
I originally posted a report about OCTX on April 7, 2013 warning investors about the dangers of investing in OCTX and pointing out the obvious red flags surrounding OCTX as disclosed in the public filings. See that report here. Since April 7, 2013, I have continue digging deeper and uncovering more information that now helps me to piece together much more to the illegal OCTX stock promotion campaign. This new report will combine the information from the old report with my new findings.
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 main participants involved
Octagon 88 Resources, Inc., a publicly traded company whose common shares are quoted by the OTCMarkets interdealer quotation system under the trading symbol OCTX.
The participants are successfully conducting the Scheme from the countries of Panama, Canada and Switzerland by exploiting U.S. investors fear of the oil shortage and increasing oil and gas price. Those participants include:
- Caroline Meyers (aka Caroline Winsor aka Caroline Danforth) - helped set up the OCTX shell and got free trading stock at $.01/share held in Belize accounts also helped her daughter, Jacqueline. Carolin Meyers fraudulently acted as the control person for 888333333 Holding Ltd and thus the control person for the 32,000,000 shares held in that account
- Clifford Larry Winsor (husband of Caroline Meyers) - helped set up the OCTX shell and got free trading stock at $.01/share held in Belize accounts
- Clinton Bateman - original CEO
- Ernest Schlotter - promoter from Switzerland was involved in promoted all 4 Tighe linked issuers (COUGF, KDKN, TAMM, and OCTX)
- Feliciano Tighe (son of Garry Tighe and nephew to William Tighe) - served as CEO helping to arrange agreements to get free trading stock issued to Swiss accounts secretly controlled by William Tighe, Garry Tighe, and Guido Hilekes)
- Garry Tighe (brother of William Tighe) - control person for CEC North Star and Energie Trust AG and owner of free trading OCTX stock held in Swiss accounts sold during the paid promotion
- Guido Daniel Hilekes - Netherlands citizen/Swiss resident and current CEO and close business associate of Garry and William Tighe and likely owner of some free trading OCTX stock held in Swiss accounts and sold during the paid promotion
- Jacqueline Danforth (daughter of Caroline Meyers) - served as a director for OCTX and helped her mom gain control of the 32,000,000 shares from Donald Hryhor by acting as the control person with her for 888333333 Holding Ltd
- James Durward (Alberta citizen and close associate of William Scott Lawler) - served as the signatory for Puroil Technology Inc helping to get free trading stock at $.01/share to select individuals to be sold during the paid promotion
- Jarret Wollstein - promoter from the United States
- John Myer - promoter from the United States
- Joseph Bucci - close business associate of Caroline Meyers and shareholder of OCTX
- Mark Hulse - Belize citizen that help set up the Belize entities for Caroline Meyers and Clifford Winsor that controlled 2,291,300 of the free trading costing only $.01/share that got sold during the paid promotion. Has been working for Carolina Meyers and Clifford Winsor for about 10 years.
- Moufid Makhoul - Swiss citizen, business associate of the Tighes, and temporary CEO of OCTX
- Philip Thomann - Swiss citizen, business associate of the Tighes, and temporary CEO of OCTX
- William Tighe (brother of Garry Tighe) - control person of CEC North Star and Energie Trust AG and owner of free trading OCTX stock held in Swiss accounts sold during the paid promotion
- William Scott Lawler - legal counsel for OCTX, close associate of Caroline Meyers, Clifford Winsor, James Durward, possible owner of free trading stock held in Belize accounts, and key player for OCTX
- Olaf Herr - Swiss citizen and VP of LB (Swiss) Private Bank the signatory for at least one of the Swiss entities owning free trading OCTX stock that was sold during the paid promotion.
A main entity helping with the insider dumping may be Bank Gutenberg AG (fka CAT Brokerage AG) of Switzerland
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).
Clinton F Bateman was from Texas were he spent his entire life working as a CPA. He has spent the last several years running his own accounting firm called Bateman & Co Inc PC.
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, on October 9, 2008, 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.
The James Durward/Clinton F Bateman/William Scott Lawler 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 Technology 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.
The main attorney used by all of the Clinton F. Bateman / James Durward linked entities was William Scott Lawler
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 between September 29, 2008 and October 3, 2008.
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.
Change of control (on paper)
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. Those shares were placed in a private holding company linked to either Switzerland or Panama called, 888333333 Holdings Limited allegedly located in Zurich. Though the shares were listed in Donald Hryhor's name in the OCTX filings, 888333333 Holdings Limited was not actually set-up by or controlled by Donald Hryhor. All indications are that 888333333 Holdings Limited is controlled by International Securities Group Inc. The principal of International Securities Group Inc is Caroline Meyers (aka Caroline Winsor aka Carolina Danforth) also linked to International Securities Group Inc are William Scott Lawler (the majority shareholder), Jacqueline Danforth, and Clifford Winsor.
On September 8, 2010, OCTX sold 500,000 shares to an anonymous non-US citizen for $.05/share to raise $25,000
Who really helped set up the OCTX entity and really got a lot of the seed shareholder shares
This Shareholder List for OCTX from May 6, 2011 helps us learn who was really involved in helping to set up the OCTX shell when it went public and issued shares of stock at $.01/share (which were free trading for the paid promotion).
The top share holders for OCTX prior to any acquisition agreements being signed were as follows:
888333333 Holdings Ltd (Alberta entity) - 32,042,000 (more about this later)
Buccaneer Holdings Inc (Belize entity) - 25,000 shares (free trading)
Caribbean Overseas Investments Ltd (Belize entity) - 1,125,000 shares (free trading)
Perculator Management Group Inc (Belize entity) - 1,141,300 shares (free trading)
Island Estates S.A. (Panama entity) - 500,000 shares (restricted)
Crede & Co - 4,262,500 shares (free trading)
Other significant names:
Joseph Bucci - 1,000 shares
Mashan Valhovic (child of Mike Valhovic) - 1,000 shares
Milic Valhovic (child of Mike Valhovic) - 1,000 shares
We know that there were exactly 39,142,000 shares outstanding on May 6, 2011
We know that 32,042,000 of those shares were shares issued to the founder and then transferred to 888333333 Holding Ltd as part of the change in control.
We know that 3,800,000 shares were issued to the shareholders of Puroil Technology Inc at $.01/share
We know that 2,800,000 shares were sold to anonymous seed shareholders at $.01/share
We know that 500,000 shares were sold to a private placement investor for $.05/share
That makes 39,142,000 shares so we know how all the share were distributed. From that we can break down who got what even further.
The 500,000 shares issued in the private placement at $.05/share all ended up in the Panamanian account - Island Estates S.A. See a link to that entity here. The entity uses nominee officers to hide the true control person of the company.
2,291,300 of the free trading $.01/share stock ended up split up between the 3 Belize entities - Buccaneer Holdings Inc, Caribbean Overseas Investments Ltd, and Perculator Management Group Inc.
Those 3 Belize entities can all be linked to Caroline Meyers (aka Caroline Winsor aka Carolina Danforth) and Clifford Winsor (her husband) through other publicly traded issuers also linked to Carolina Meyers.
- Caribbean Overseas Investments Ltd - Here on a Form 3 filed for Sun World Partners [nka Preaxia Health Care Payment Systems (PAXH)] in December of 2006 we see Clifford Larry Winsor, husband of Caroline Meyers (aka Caroline Winsor aka Carolina Danforth) signing as the control person for Caribbean Overseas Investments Ltd. In this 2003 beneficial owners list for Capital Reserve Canada Ltd (CRSVF) we find Clifford Winsor once again listed as the control person for Caribbean Overseas Investment Ltd. In 2004, Mark Hulse signing for Caribbean Overseas Investments Ltd in an SC13G filing for Vectoria Inc [nka as Affinity Networks Inc (AFFN)] and we find Clifford Winsor listed as his own control person in a PRE14C filing. AFFN got suspended by the SEC on June 10, 2008. Mark Hulse is a Belize citizen that runs a business helping individuals register Belize business entities anonymously. See his website here. Mark Hulse's business, Baker Tilly Hulse, shares the same address as all 3 Belize business entities holding free trading shares of OCTX entering the paid promotion - 12 Cor. Baymen Avenue & Calle Al Mar, Belize City.
Individuals that can be linked to Sun World Partners include - Clifford Winsor, William Scott Lawler
Individuals that can be linked to Vectoria Inc include - Clifford Winsor, William Scott Lawler, Caroline Meyers, Richard St. Julien, Jean-Francois Amyot
Individuals that can be linked to Capital Reserve Canada Ltd (CRSVF) include - Clifford Winsor, William Scott Lawler, Caroline Meyers, Jacqueline Meyers
- Perculator Management Group Inc - In this 10K filing for Fact Corp (FCTOA) we find Percular Management Group Inc listed as private placement shareholder. No disclosure is given in the FCTOA filings as to who controls the stock owned by Perculator Management Group Inc, but we already know the entity was set up by Mark Hulse for another individual to remain anonymous.
Individuals that can all be linked to Fact Inc (FCTOA) as officers/directors/debt note holders/shareholders - Caroline Meyers (aka Caroline Winsor aka Carolina Danforth), Clifford Winsor, Jacqueline Danforth, William Scott Lawler
- Buccaneer Holdings Inc - In filings for FCTOA, CRSVF, and Vectoria Inc we find Walter Brown, Al Brown, Berta Tillman, Alfonso Sevasey, Renegade Recreational Rentals, Inc., Dorothy Vasquez, Rupert Flowers, Gerald Jones and Yvette Burks listed as the control group for Buccaneer Holdings Inc.
Besides being linked to all the previous entities that used the 3 Belize entities that now controlled at least 2,291,300 free trading shares of OCTX stock, it was also shown earlier in this report that William Scott Lawler was linked to all of the entities that used both James Durward and Clinton F Bateman making William Scott Lawler possibly the biggest key participant in the set up of OCTX.
Since OCTX stock hadn't started to publicly trade yet all of the transfer of stock was done in private and the transfer agent should a record of all the transfers.
Caroline Meyers (aka Caroline Winsor aka Caroline Danforth) through International Securities Group Inc and Joseph Bucci recently got named in litigation by the Alberta Securities Commission for their role in collaborated in setting up Coastal Pacific Mining Corp. (CMPCF) as a “pump and dump” shell company over a number of years, finally implementing the market manipulation that occurred in late 2010 using paid promotions.
Back in 2007 even prior to COUGF going public, Joseph Bucci was used as a witness in a document signed between One-More Resources Inc and Cougar Oil & Gas (COUGF). COUGF which was one of William Tighe's past pump & dump tickers. This shows a relationship between Tighe and Bucci (close associate of Caroline Meyers) that goes back around 6 years.
Enter the Swiss Crew
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 in OCTX filings was listed as the shareholder of 888333333 Holdings Limited. The big question is who controls Kenmore International S.A.? Is it the Tighe brothers or is it Caroline Meyers and her crew?
Kenmore International S.A. is a Panamanian entity that uses nominee officers. The same exact nominee team that was used to register Island Estates S.A., the owner of 500,000 shares acquired in a private placement for $.05/share on September 8, 2010.
Since both Kenmore International S.A. and Island Estates S.A. are set up exactly the same way, I suspect that they were both controlled by the same person. Almost certainly the group running the OCTX promotion in the background.
Enter Zentrum Energie Trust AG (William Tighe, Garry Tighe, and Guido Hilekes)
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 according to this filing is William Tighe (probably the uncle of Feliciano Tighe).
- William Tighe 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. by issuing that entity 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 associate and TAMO, KDKN, and DWOG insider. Guido Hilekes' bio lists him as being a member of the board for several Swiss financing companies.
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.
Digging deeper into the Swiss entities
I could not find Morgarten Financial or Maushen Finanz Inc listed as Swiss business entities. No where in any filings related to any of the four Tighe tickers does it ever disclose the control person for the shares held by either of those two entities despite both entities showing up involved in all four Tighe tickers.
What I was able to find was a small paragraph in both a COUGF filing and a KDKN filing that helps us connect the dots a little bit:
On January 20, 2010, COUGF finalized stock purchase agreements effective January 18, 2010 by and between COUGF and Zentrum Energie Trust AG, CAT Brokerage AG, LB (Swiss) Private Bank for its client, Mauschen Finanz Inc. and Rahn and Bodmer (collectively the “Vendors”).
So Maushen Finanz Inc is listed as a client of LB (Swiss) Private Bank. LB (Swiss) Private Bank is controlled by Olaf Herr and Hans-Ulrich Wafler. LB (Swiss) Private Bank was a large shareholder in DWOG. It wasn't until after the share exchange agreement between DWOG and TAMO that the four Tighe entities started getting very involved in using Swiss entities.
At one point Garry Tighe tried to take over DWOG through business agreements with TAMO. Garry also tried to have the two main officers of DWOG outed (Curtis Sparrow and Horst Schmid) through the illegal solicitation of DWOG shareholders. The whole mess ended with litigation being filed (see the Complaint HERE). The litigation was settled and from then on the Swiss financiers/entities became a permanent fixture in all other future Tighe linked shells.
In this financing agreement between Maushen Finanz Inc and TAMO we get a signature but still no disclosure. The copy of this agreement filed with the SEC found here had the signature removed. The control person for Maushen Finanz Inc was intentionally kept anonymous by William Tighe. He demanded that it be that way. The only disclosure about Maushen Finanz Inc that William Tighe even gave to his fellow insiders was that the documents for Maushen Finanz Inc were sent from the Vice President of LB Swiss Bank from Zurich.
Vice President of LB (Swiss) Private Bank would be Olaf Herr.
Deep Well Oil & Gas was another Alberta based Oil & Gas company that traded under the symbol DWOG. The two main principals of DWOG were Horst Schmid and Curtis Sparrow. The first time Morgarten Financial Services Inc showed up in any SEC filings was as the Broker assisting DWOG with a private placement in May of 2007. Morgarten Financial Services Inc was paid a $150,000 finder's fee for helping DWOG sell $2,000,000 worth of stock.
Morgarten Financial Services Inc also paid for a paid promotion for DWOG back in May of 2007 prior to the four Tighe entities ever getting involved with any Swiss entities or promoted.
Morgarten Financial Services Inc also showed up in the private placement broker agreement between KDKN and Research Capital Corporation of Toronto signed on October 30, 2007.
The Corporation agrees to cooperate with Morgarten Financial Services Inc. of Zurich, Switzerland in seeking investors to any equity or debt, or equity or debt related financing of the Corporation involving a distribution to the public in Canada as per the preceding paragraph, on terms and conditions negotiated between the Agent and Morgarten Financial Services Inc. at such time. On the condition that Morgarten Financial Services Inc. makes reciprocal invitations to the Agent, the Agent will invite Morgarten Financial Services Inc. to participate in any equity or debt, or equity or debt related financing of the Corporation involving a distribution to the public in Europe, on terms and conditions negotiated between the Agent and Morgarten Financial Services Inc. at such time.
Turns out that the reason that Morgarten Financial Services does not show up as a Swiss entity is because it is actually a Panamanian entity that is controlled through Switzerland.
Rahn and Bodmer is another private Swiss bank. Peter Rahn and Andre Bodmer are two of its partners. Website found here.
CAT Brokerage AG is the former name of Bank Gutenberg AG as explained on the Bank Gutenberg AG website. Through past research, I have identified Bank Gutenberg AG as being a Swiss entity fronting as a bank that is used by securities recidivists to facilitate secret stock sales and the manipulation of securities of microcap stocks. The scheme works as follows:
(i) the Participants set up a foreign corporation (“Blind Corp.”) in Panama using an anonymous trustee to avoid detection;
(ii) the Participants then cause the Blind Corp. to open an account with Gutenberg in Zurich; (iii) the Participants obtain control of a U.S. Shell company and create a bogus business plan;
(iv) the Shell Company is structured so that the Participants can obtain control of the public float;
(v) the Participants arrange for large blocks of (“illegally”) free trading unregistered and non- exempt Shares to be issued in the name of the Blind Corp. and delivered to Gutenberg;
(vi) Gutenberg deposits a portion of the Shares into its global custody account with a large U.S. institution;
(vii) Gutenberg deposits a portion of the Shares into Delivery vs. Payment (DVP) accounts with the market makers identified above;
(viii) Gutenberg places buy orders with a first market maker and sell orders with a second in order to create the appearance of volume and demand for the Shares;
(ix) the Participants bombard investors with misleading and false public information including unfounded and inflated price predictions, bogus research reports using both phone rooms, spam email and stock-hype websites which promise unsupported returns and baseless forecasts and results; and
(x) Gutenberg dumps the Shares at inflated prices during the hype and the Participants receive the proceeds while remaining anonymous using the Blind Corp.’s account at Guttenberg.
The final change in control
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.
The New OCTX Share Structure
The outstanding share count for OCTX going into the paid promotion looked as follows:
Total Outstanding - 26,545,473 shares
Zentrum Energie Trust AG (Swiss entity controlled by William Tighe and Guido Hilekes) - 14,000,000 shares
Maushen Finanz (Swiss entity signed for through LB (Swiss) Private Bank) - 2,655,000 shares
Morgarten Financial (Panamanian entity controlled through Switzerland paying for OCTX promotion) - 1,327,500 shares
Kenmore International S.A. (Panamanian entity) - 1,462,973 shares
Puroil Technology Inc (Canadian entity signed for by James Durward) - 3,800,000 shares (costing $.01/share)
Belize entities linked to Caroline Meyers, Clifford Winsor, and William Scott Lawler - 2,291,300 shares (costing $.01/share)
Island Estates S.A. (Panamanian entity) - 500,000 shares (costing $.05/share)
Other Seed Shareholders - 508,700 shares (costing $.01/share)
A familiar logo
In order to create the appearance of legitimacy and success, the Participants even created a logo for the Company copying that of U.S. oil giant, Phillips 66.
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.
John Myers told his readers that OCTX would go to $12.13/share short term and up to $190/share long term.
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.
Prior to get involved with any of the Tighe tickers, SISM Research (Ernest Schlotter) promoted DWOG back in May of 2007.
"Morgarten Financial Services, a European based IR company has retained and pays SISM Research $1,750 per month over a two-year period to ensure independent coverage"
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). SISM Research put a target price on OCTX of $23.11/share.
An Intelligent Investor Report (Jarret Wollstein) hard mailer is added to the promotion
When the OCTX stock price hit $8.00/share, Jarret Wollstein, author of the Intelligent Investor Report pump newsletter service, started issuing hard copy mailers for OCTX to help continue to support the OCTX share price while insiders sold their shares that were held anonymously in Swiss and Panamanian accounts. The target price issued by Jarret Wallstein was $12.00/share then moving to $23.00/share with a long term target price of $30/share - $60/share.
Same Paying Party used in all 4 Tighe tickers - KDKN, COUGF, TAMO, and OCTX
In the disclaimer for the John Myers pump newsletter 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.
As is become very common with the bigger profile OTC pump&dump tickers (especially ones linked to Bank Gutenberg AG), Octagon 88 Resources Inc also trades on the Frankfort exchange. The issuer opened trading on the Frankfort Exchange on April 19, 2013.
mwb fairtrade Wertpapierhandelsbank AG appears to be the Bank Gutenberg AG ticker linked market maker/broker. This same broker can also be linked to ECAU, GNIN, and LOTE.
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."
Despite the fact that OCTX touts oil and gas assets exceeding $44,000,000 in its most recent SEC report, it has cash on hand of less than $10,000 and has never had revenues from operations.
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
Fraudulent statements issued by OCTX with regards to their business operations include:
i. the Company is “a leader in the resource sector leveraging tremendous access to capital and technical expertise” despite that it has no revenues and less than $10,000 cash on hand;
ii. the Company acquired “substantial light and conventional heavy oil assets” that “have been substantially de-risked” despite that the Company holds no such assets; and
iii. the Company acquired 4 contiguous sections with P3 reserves of “1.2 Mill bbls. light sweet crude oil recoverable, NPV(10%)$31,000,000 CAD”.
One more Possible OCTX Insider
Allan Dale Nielsen of Borden Ladner Gervais LLP based out of Calgary was legal counsel for the other 3 publicly traded and promoted Tighe linked tickers - COUGF, KDKN, and TAMO. Allan Dale Nielsen also did legal work for DWOG and is the legal counsel for CEC North Star Energy.
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 $.01/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.
OCTX already surpassed each of its predecessors peaking $10.35/share. No doubt in the future OCTX will also lose over 90% of its value too.