23 Mar SK3 Group Inc (SKTO) – is SKTO the biggest scam since SRGE?
SK3 Group Inc (SKTO) has been on an amazing run starting from the $.0006/share level on March 11, 2013. On Friday, March 22, 2013 the share price closed at $.0459/share - up 7,550%
Southridge Enterprises Inc (SRGE) proved that even the biggest scams can make penny stock investors a lot of money. At least until they get suspended by the SEC. Since its peak right before the SEC suspension in late-December, the SRGE share price has fallen from nearly $02/share to $.0009/share. Could SK3 Group Inc (SKTO) now be the biggest scam since Southridge Enterprises Inc (SRGE)? In the opinion of this author, Yes it is.
It was one day after we published our SRGE scam report that SRGE got shut down by the SEC. The SEC moves slowly, but SKTO is a big suspension threat for more reasons than just the their questionable press releases.
In this report I'm going to map why I believe that SKTO is nothing but a scam being run by the same group that has been using SKTO as a scam ticker for the past few years - Healthcare of Today (Henry Jan and Robert Hipple).
In this report I'm also going to explain why owning SKTO and holding SKTO over night could now be extremely risky because an SEC suspension could happen at any time.
What started the run
On March 11, 2013 news was released that SKTO had acquired a company called Medical Greens. The press release further claimed that Medical Greens already had $12.5 million in contracts. Cannabis stocks have been some of the hottest tickers in recent months so it seems obvious why SKTO has now chosen to "enter the marijuana industry"
On March 13, 2013 news was released that SKTO had appointed a new Chairman - Kevin Allyn. Kevin Allyn's background makes him sound like a respectable person and for many this follow up press releases provided just the push they needed to start buying up SKTO after early skepticism from the first press release kept them away.
On March 22, 2013 news was released that SKTO already has $30 million in contracts from its new company, Medical Greens. This amazing achievement of $30 million in contracts just days after being created out of thin air helped push SKTO to $.05/share during intraday trading.
News was leaked early to select IHUB members
Days before the March 11, 2013 news release, a group of IHUB members were already talking about the upcoming news for SKTO. A search through IHUB posts mentioning SKTO starting on March 6, 2013 gives you a pretty good idea who was privy to the upcoming news days before its release. It had been well over a year since SKTO had put out any news so why were posters suddenly predicting news was about to come out? I asked one of the posters that knew of the news in advance and they didn't want to give up their sources but did acknowledge being told that news was coming.
Because of the obvious leaking of the news days in advance, some people believed that the news might have been faked by a group of front loading IHUB pumpers.
I do not believe this theory to be true. I believe that the same group that has been running the SKTO ticker for the past few years, Healthcare of Today (Henry Jan and Robert Hipple), is still running it now. I have tons of evidence to support this belief.
The obvious Red Flags about Medical Greens
medicalgreens.com was registered as a domain on February 25, 2013 and first published to the internet on March 11, 2013 (same day the press release came out)
medicalgreensdirect.com was registered as a domain on February 25, 2013 and first published to the internet on March 19, 2013 (same day the domain was posted about on the IHUB)
#2) In first press releases on March 11, 2013, Medical Greens is listed as a trademarked name, but no trade mark existed at that time for Medical Greens. A trade mark has since been filed for on March 12, 2013 (one day after the first press release) - found here. The trade mark leads us to Henry Jan and Robert Hipple (more on that later).
I checked just about every state in the United States. There is no business entity registered in California, Florida, Nevada, Delaware, Wyoming, or any of the other common states usually used by penny stock groups like Healthcare of Today.
#5) There is absolutely no information available any where about Medical Greens except in the SKTO press releases. And even in those SKTO press releases, SKTO is playing the typical game of not given any verifiable information about their alleged contracts which 99.9% of the time means they are not real.
Bottom line is that the evidence suggests that Medical Greens is not a real company. Medical Greens does not have any existing contracts. Which means the press releases constitute fraud being used to illegally manipulate the price of a publicly traded security.
Proof that Healthcare of Today (Robert Hipple and Henry Jan) are still running SKTO in the background
The Healthcare of Today connections are all over this one
#1) A. Mayor - the individual signing the SKTO press releases
A. Mayor is short for Artemus Mayor. Artemus Mayor is the VP of Sales for HealthCare of Today
#2) Isaac Barrington - the name on the Medical Greens domain registrations
Isaac Barrington is a California business entity registered by Henry Jan the president of Healthcare of Today
#3) The phone numbers from the domain registrations - (626) 587-8184 and (888) 854-0661
(626) 587 - 8184 was the same number used for dozens of other domain registrations done by HealthCare of Today for their various controlled penny stock issuers. Most commonly as follows:
Fu, Jason [email protected]
2219 W Olive Ave #266
Burbank, CA 91506
Here is one example:
(888) 854-0661 is the same number that Henry Jan has been using for several years going all the way back to 2000 including for ILN Industries Inc, ILN Amherst Corp, ILN Industries LLC, ILN Industries Foundation, ILN Celeste Corp, ILN Century Corp, and, ILN Bethany Corporation, ILN Harvey Corporation,ILN Pelham Corporation, and ILN Brentwood Corp
Here is one example:
ILN Barrington Corp was the original name of Healthcare of Today. In 2001, Henry Jan took ILN Barrington Corp public then later changed the name of the entity to Eneftech Corp. Eneftech Corp would eventually morph into Healthcare of Today in 2010 taking over the SK3 Group Inc shell that same year. The Eneftech Corp/Healthcare of Today entity ended up getting revoked by the SEC on March 4, 2011. More about the history of the Healthcare of Today group later in this report.
#4) Michael Choo - the recently added Director of Operations for Medical Greens
Michael Choo was a part of two other Healthcare of Today tickers - ALZM (now NOHO) and AEGY
With both ALZM and AEGY, Michael Choo served as a Director
So like Artemus Mayor, Michael Choo is another Healthcare of Today insider.
#5) I Equity Corp - the entity which filed for the trade mark for Medical Greens is another Henry Jan and Robert Hipple entity. See the the trademark here.
Here is a link to the Florida business entity for I Equity Corp. When I Equity Corp was first registered as a business entity on May 14, 2012, Robert Hipple was listed as the incorporator and managing member and Henry Jan was listed as the director for the company. See this link.
Even today CF Consulting LLC is listed as the resident agent and managing member for the entity. CF Consulting LLC is controlled by Robert Hipple. More information about CF Consulting LLC here.
There is absolutely no doubt that SKTO is still controlled by Henry Jan and Robert Hipple of Healthcare of Today
Why SKTO is a major threat to be suspended
On Wednesday, March 20, 2013, the OTC Markets group slapped SKTO with the skull and crossbones warning visitors of the OTC markets page that SKTO is suspected of being a scam and the subject of a promotional campaign as well as a threat to be suspended. Honestly though, the skull and crossbones icon does very little to deter penny stock investors. The SEC would have to step in if this scam (imo) is going to end any time really soon.
The obviously fraudulent press releases should be enough of a reason alone, but unfortunately the SEC doesn't move very quickly and so if it was just a matter of questioning the validity and accuracy of the press release, it could be weeks before the SEC shuts down SKTO.
In the case of SKTO the suspension threat is much more simple than that. For the SEC to shutdown SKTO, the SEC would not even have to open up an investigation. SKTO is a defunct business entity that hasn't paid any taxes or done any filings with the Delaware SOS since 2010. SKTO is also years removed from offering proper public disclosure to its shareholders.
The last filing that SKTO ever did with the Delaware SOS was an amendment filed by Robert Hipple in 2010 to raise the authorized share count to 500,000,000 (pictured below). Since that filing, no other filings have been done with the DE SOS. The resident agent for SKTO resigned in 2011 and SK3 Group Inc is now in forfeiture with the Delaware SOS meaning the business entity is operating as a defunct entity that is way behind in its taxes and fees.
Because of the business status of SK3 Group Inc and absence of proper public disclosure, SKTO could be shut down by the SEC at any time.
We have already seen other popular penny stocks pumps like KMAG, ANTS, and GTGP get shut down near the peak of their price gains because they lacked the proper disclosure in filings to support their press release claims. All three of those tickers were miles ahead of SKTO in terms of filings and compliance.
If and when the SEC suspension does come for SKTO, it will come right before the opening bell making anybody holding the stock over night stuck to suffer major losses. Any losses suffered would be the fault of those investors that chose to buy and hold SKTO despite all of the warnings.
Will Kevin Allyn please stand up
At first I thought that the use of Kevin Allyn's name was probably done without Kevin Allyn's knowledge. Several attempts were made to reach out to Kevin Allyn via phone (818.481.3139), email, and through facebook. All attempts failed and all messages left were not returned.
Kevin Allyn does have an interesting background, but the more I learned about Kevin Allyn while trying to track him down the more I realized that most of his successes may have all been in his past and that maybe his current circumstances make the opportunity to make some money taking part in a dirty shell like SKTO something he couldn't pass up.
With so many attempts to reach Kevin left ignored, I now believe that Kevin Allyn being a part of SKTO acting as the front man for Henry Jan and Robert Hipple. Possibly he is just not wanting to confirm his role with the company because he probably does understand the type of situation he is involved in and by not confirming his role he gives himself an out when the whole thing falls apart.
Over the past few days the Medical Greens website, which originally had nothing more than the Medical Greens icon on March 11, 2013, has slowly been getting updated to now include a director, Roy Laughlin, and an adviser, George L. Jones, who is associated with Kevin Allyn (see picture below). The website now also includes a letter allegedly written by Kevin Allyn to the SKTO shareholders.
Some Background on SKTO
Until 2007, SKTO was known as CTT International Distributors, Inc and was in the distribution business. In May of 2007, a new entity was formed in Delaware called SK3 Group, Inc for the mere purpose of merging SK3 Group Inc into the parent entity to effect a name change. The merger/name change took place on May 14, 2007.
After the name change, SKTO entered the ecommerce business, but never generated any revenues.
In August of 2008, the previous executives all resigned and Ira Frohman took control of the SKTO shell. Ira Frohman did none of the required SEC filings for SKTO while he looked for somebody to acquire the shell. Just prior to this period during the summer of 2008, a 1:50 reverse split was executed on the stock to wipe out the former shareholder and clean up the shell for a future change of control.
On October 5, 2009, Phillip Morgan filed a Form 15 to move SKTO to the pink sheets and make it a non-SEC reporting entity.
Peter Bell was planted as an interim CEO while banned attorney, Diane Dalmy, helped set up a change of control for the SKTO shell. Helping Diane Dalmy with the legal work at this time was Owen Naccarato. Handling the accounting for SKTO at this time was Allan Smethers who is most well known for his connection with Jeffrey Smuda.
It is interesting that nearly this entire group (Diane Dalmy, Owen Naccarato, Peter Bell, Jefferey Smuda, and Allan Smethers) can be tied in together with other tickers like Mistral Ventures Inc (MILV) and Great Wall Builders Ltd (GWBU) and that Ira Frohman would go on to become the CEO for Paperfree Medical Solutions Inc (PFMS) immediately after he left SKTO. PFMS was a Matt Diehl and Aaron Lamkin ticker and Matt Diehl and Aaron Lamkin also both tie into MILV and GWBU as well as other tickers that got promoted by Awesome Penny Stocks.
In what resembles musical chairs another former PFMS CEO, Michael J Gelmon, would eventually become the CEO of another public ticker controlled by Healthcare of Today - Allezoe Medical Holdings Inc (ALZM).
It was during this period that speculation about a future merger helped support a nice pump&dump looking chart for SKTO.
It was also during this period that many of the OTC filings were being authored by somebody named "Amar". I can't help but wonder if that was another individual that is linked to this MILV and GWBU group named Amar Bahadoorsingh.
The team of Ira Frohman and Diane Dalmy found some takers for the shell in Henry Jan and Robert Hipple of Healthcare of Today.
Henry Jan and Robert Hipple had been teasing a possible merger with scam ticker Guardian Angel Group Inc (GAGI) which was a shell linked to John Jarvis and Claude Eldridge. GAGI was a sister ticker to Jim Dial and Nick Jarvis ticker, Grifco International Inc (GFCI). Jim Dial and Nick Jarvis are currently in prison for their roles in the GFCI scam. During the teasing, GAGI put out several press releases about the merger and Healthcare of Today supported the pump by never denying it when contacted about it. Learn more about GAGI here. Today GAGI now trades as REEI.
While GAGI was teasing a merger with Healthcare of Today, SKTO was putting out their own press releases saying they would be merging with Healthcare of Today beginning in December of 2009.
Prior to any merger taking place, Henry Jan and Robert Hipple took control of the SKTO shell and put one of their Healthcare of Today insiders as the new CEO, Kelvin Pan. Kelvin Pan was the long time COO of Healthcare of Today. They starting things out with an acquisition agreement between Healthcare of Today and an entity formed by Jan and Hipple called Nurses Online. Around this time William Haseltine replaced Owen Naccarato as the legal counsel for SKTO. Haseltine was yet another MILV insider.
At this time the business address for SKTO was moved to Robert Hipple's office in Merritt Island, Florida:
Originally the plan was to merge Healthcare of Today, which was already a public company trading under the name Eneftech Corporation, together with the Sk3 Group Inc shell and to then effect a name change to "Healthcare of Today Services". See the press release here. A convertible debenture was created using Healthcare of Today linked entity, Lin-Han Equity Corporation. Lin-Han also owned debt in another Healthcare of Today public ticker, AEGY. More info here.
Eneftech Corporation had originally been taken public by Henry Jan as ILN Barrington Corp way back in 2001. See the complete SEC filings for Eneftech Corporation here. The whole merger plan ended up falling through though because Henry Jan failed to meet his filing obligations with Eneftech Corporation and on March 4, 2011 the SEC revoked Eneftech Corporation. All of the promised dividends that helped to lure in buyers for the SKTO stock while the price was slowly dropping during the spring and summer of 2010 ended up becoming broken promises.
The failed merger didn't stop Henry Jan, Robert Hipple, and the Healthcare of Today insiders from profiting off of their control of the SKTO shell.
From the SKTO OTC filings:
In March 2010, Healthcare of Today, Inc. acquired 60,000,000 shares of SK3 Group, Inc., representing majority control. Currently, the remaining portion of those shares still held by Healthcare of Today, Inc. represent only 15.4 percent of the outstanding common shares. When additional shares are issued as a result of the acquisition of PRN, expected to close in January 2011, Healthcare of Today will hold 160,000,000 million common shares, or 32.7 % of the common shares then issued, and all of the preferred shares.
On top of the 160,000,000 shares received by Health Care of Today for some business operations that may or may not have been generating any real revenues (since OTC filings are unregulated), Health Care of Today also got $277,573.00 in debt Notes that ended up getting divided up between 5 different entities:
Raising the authorized share count in December of 2010 to make room for the 100,000,000 shares that ended up getting issued to Healthcare of Today in January of 2011 was Robert Hipple:
After December of 2010, SKTO continued to issue shares and debt Notes to Healthcare of Today by the millions for entities created by Healthcare of Today for what appears to be no other purpose but to be used for arm length acquisition agreements for insider enrichment.
For people keeping score that makes at least 260,000,000 shares owned by Healthcare of Today and about $7,000,000 in debt Notes.
That was the last time SKTO offered any disclosure. No more filings have shown up with the OTC since May of 2011 (nearly 2 years) and no more filings have been done with the Delaware SOS since December of 2010. SKTO is now a defunct business entity with no resident agent.
Last reported on April 1, 2011, SKTO had 362,050,303 shares outstanding. Under Healthcare of Today's control the share price fell from over $.20/share to the triple zeroes. We do not even know for sure if any of the Healthcare of Today business operations rolled into the SKTO shell were really generating any revenues since financial reports on the OTC markets are unregulated. What we do know is that SKTO was diluted down to nearly worthless and now all of those business operations that cost SKTO share holders 260,000,000 shares and around $7,000,000 in debt Notes are no longer a part of SKTO. The whole operation has been reset with the focus now on taking advantage of the hottest sector in the penny stock world - medical marijuana.
Healthcare of Today is obviously the group with the most to gain from the current pump created by the recent Medical Greens news. Since we have already traced Medical Greens to Henry Jan beyond any reasonable doubt, I believe it is Healthcare of Today using this current pump to profit from the conversion of those debts and the selling of shares.
More about Healthcare of Today / Henry Jan / Robert Hipple
Robert Hipple and Henry Jan first became a team in 2004 when Henry Jan's Eneftech Corp (Healthcare of Today) entered into an acquisition transaction with Robert Hipple's iWorld Projects & Systems Inc. As a result of the acquisition that required Eneftech Corp (Healthcare of Today) to issue 61,650,000 shares to iWorld Projects & Systems Inc, Robert Hipple became a director for Eneftech Corp (Healthcare of Today). See the filing here.
iWorld Projects & Systems was basically the prequel to Healthcare of Today. Through iWorld Projects & Systems, Robert Hipple would do arm length agreements to facilitate the issuing of millions of shares and debt Notes to the iWorld Projects & Systems insiders. Hipple created an umbrella of companies that included Organic Solutions and Silesia Enterprises.
iWorld Projects & Systems (exactly like Eneftech Corp/Healthcare of Today would do later) stopped paying their business taxes with their local SOS and stopped doing their required SEC disclosures. Eventually in 2008, iWorld Projects & Systems would file for Chapter 7 Bankruptcy. Finally the SEC filed litigation against iWorld Projects & Systems in 2009. On August 14, 2009, the SEC revoked iWorld Projects & Systems.
It was during the investigation into iWorld Projects & Systems prior to the revocation that the SEC caught on to what was going on with iWorld Projects & Systems and filed litigation against Robert Hipple. According to that litigation Robert Hipple had been committing fraud with iWorld Projects & Systems by overstating revenues and business operations of the company.
The litigation went on to explain how Robert Hipple created his umbrella of companies for an insider enrichment scheme
The litigation also went into detail about how Robert Hipple misstated assets and revenues to manipulate the stock price for the securities he owned all while iWorld Projects & Systems was a defunct Nevada business entity because Hipple refused to even pay the annual fees for the entity. Much like what is going on with SKTO presently.
As a result of the litigation, Robert Hipple was banned from participating in any further security violations, banned from practicing before the SEC as an accountant in the future, banned for 5 years from being a director of officer for any publicly traded entity, and was banned for 5 years from practicing as an attorney before the SEC. 5 years from March 11, 2010 puts the end date of Robert Hipple's restriction at March 11, 2015.
Despite the ban, Robert Hipple has been a major part of Healthcare of Today and its many public tickers, OCTI, AEGY, SKTO, and ALZM (now NOHO). He has performed corporate actions for all of them and has helped set up subsidiaries and acquisition companies for each through his office at 1365 N. Courtenay Pkwy., Ste. A, Merritt Island, FL 32953.
As already mentioned in this report, Eneftech Corp (Healthcare of Today) suffered a similar fate to iWorld Projects & Systems by getting revoked by the SEC on March 4, 2011. The revoked business status for Healthcare of Today hasn't stopped the group from repeating the actions of iWorld Projects & Systems by creating an umbrella of public entities (AEGY, SKTO, OCTI, ALZM) and non-public entities to use for acquisition purposes for those public entities, each time allowing Healthcare of Today to gain more publicly traded shares and more convertible debt Notes to be used for future share selling.
While under Jan and Hipple's control, AEGY got used for a very ugly fake share selling scheme operated out of a boiler room in 2011 that took many UK residence for tens of thousands of dollars.
How Robert Hipple is able to keep operating these public shells much the way he did iWorld Projects & Systems despite his ban and how Henry Jan is able to keep setting up these arm length acquisitions for insider enrichment while failing to meet the simple obligations of keeping the tax status and filing obligations up to date without drawing the SEC's attention is beyond me.
Maybe this time the SEC will finally pay attention. In the meantime be careful if you are trying to profit from SKTO at these levels - especially if you plan on holding over night