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Black Stallion Oil & Gas Inc (SRITD) – now BLKG – stock research report

22 Sep Black Stallion Oil & Gas Inc (SRITD) – now BLKG – stock research report


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On September 18, 2013, Secure It Corp (SRIT) effected a name change to Black Stallion Oil & Gas Inc and a 60:1 forward split.  We had recently mentioned SRIT in a report for Great East Energy Inc (EPSO) and prior to that in a report for Longview Real Estate Inc (LONR).

The reason that SRIT was mentioned in both of those reports is because SRIT, EPSO, and LONR all were set-up the same exact way using Jonathan D Strum for legal services and Weinberg & Baer LLC for accounting services.  Both EPSO and LONR did large forward split so we knew that SRIT would soon be announcing a large forward split as well.

Each ticker is obviously being set up for some kind of paid promotion. 

Today we'll take a closer look at Black Stallion Oil & Gas Inc (SRIT) - soon be become BLKG.


The Set-up

Secure It Corp was set-up as a Delaware business entity on September 14, 2011 with help from incorporator Mimi Sanik.  Ms. Sanik provides incorporation services through VCorp Services LLC and has shown up providing incorporation services in our reports for XUNA, SANB, PVTA, WIZD, and YPPN.  Both EPSO (10/17/11) and LONR (9/14/11) were also incorporated in Delaware around the same time.

The sole officers/directors for Secure It Corp were Ofir Ben Arzi (CEO/president/CFO/treasurer/director) and Binyamin Brodman (secretary/director)Both Arzi and Brodman were from Israel.  Both EPSO and LONR also used Israeli nominee officers to take their shells public.

All the nominee officers used for EPSO, LONR, and SRIT have a common theme.  They all have links to schools designed for troubled Israeli youth.  I think it is safe to assume that Binyamin Brodman (SRIT), David Zohar (LONR), and David Schwartz (EPSO) all know each other in person since they all had backgrounds working in schools for troubled Israeli youth.

Like EPSO and LONR, when Secure It Corp filed an S-1 to go public, Secure It Corp used attorney Jonathan D Strum for legal services and Weinberg & Baer LLC for accounting services.

Let's review the similarities between SRIT, EPSO, and LONR:

1) All 3 tickers were set-up as Delaware business entities
2) All 3 tickers used nominee Israeli officers linked to troubled youth centers
3) All 3 tickers used Jonathan D Strum for legal services and Weinberg & Baer LLC for accounting services.

There is no doubt we have what is called a shell factory going on here.  3 Identical shells set-up by the same people to be taken public with the intent to fail at their initial business plans so they can be used for insider enrichment schemes.  The SEC was unable to connect the dots and gave all 3 future insider enrichment schemes their blessings to publicly trade.

Like EPSO (Houston) and LONR (Miami), despite having nominee officers from Israel, Secure It Corp used a virtual address located in the United States located in San Francisco.


Going public

The S-1 filing for Secure It Corp was filed on March 20, 2012. 

Ofir Ben Arzi was issued 1,400,000 shares and Binyamin Brodman was issued 800,000 shares prior to the S-1 filing.  The S-1 filing would be used to register up to 750,000 shares to be sold to a group of hand picked seed shareholders at $.15/share to raise up to $112,500.

The forward looking business plan was to sell high end vinyl car wraps though the internet to garages and car accessories shops on-line.  Secure It Corp reserved a domain at  Both EPSO ( and LONR ( also reserved domains for their forward looking business plans.   None of the shells would ever develop their websites or make any progress towards their future business plans.  They only set-up the bogus plans to breeze past the great enabler of these schemes, the SEC.

The SEC approved Secure It Corps S-1 filing on August 15, 2012 giving the ticker permission to move forward with its scheme.  Secure It Corp was given the trading symbol SRIT.


Seed Shareholders / The Plan to Fail

In the S-1 filing, SRIT told the SEC that they would need to raise a minimum of $90,000 through their public offering in order to initiate their business plan otherwise the plan would fail.

As is always the case in these shell schemes that the SEC so easily approves, the shell intentionally fails by not raising enough money to initiate the forward looking business plan that the SEC approved.  Such a simple scam, but one that the SEC seems to have no problem approving over and over and over again.

As could have easily been predicted, SRIT only ended up selling 331,200 shares at $.15/share raising $49,680, well short of the $90,000 minimum amount needed to achieve the forward looking business plan.  The $49,680 would be enough to pay Jonathan Strum and Weinberg & Baer LLC for their services as facilitators for the scheme.

There is no reason to sell more than that because these shell factory owners know that FINRA will approve a large forward split later if the request is accompanied by a change of business operations.

I think it is safe to assume that those 331,200 shares went to some hand picked foreign nominee seed shareholders probably living in Israel.


Change of Control

After intentionally failing at the initial business plan, it was time to move the SRIT shell forward to the next stage of the insider enrichment scheme.

As is now becoming more and more common, these schemes are moving much much faster than in the past.  SRIT would only end up waiting exactly one year after getting S-1 approval before doing their change of control.

On August 15, 2013, shell baby sitters, Ofir Ben Arzi and Binyamin Brodman, resigned from all of their positions and George Drazenovic was appointed as the sole officer/director of the SRIT shell.  George Drazenovic would also gain control of all 2,200,000 shares previously held by the two Israeli nominee officers for an undisclosed amount of cash.

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George Drazenovic who is from Vancouver is a penny stock veteran.  His resume includes:

Eurocan Holdings Ltd (EURC) - very large shareholder
Tornado Gold International Corp (TOGI) - now revoked p&d ticker - long time CFO
Sun Cal Energy Inc (SCEY) - now revoked huge 2007 p&d ticker - long time officer/control person
EPOD International Inc (EPOI) - no longer trades scam ticker - long time CFO


There is no doubt that the most telling ticker on that list is SCEY which also had links to Southern California touting oil&gas operations in that area while running a big paid promotion.  I'm starting to think that the SRIT shell is now George Drazenovic' new SCEY.

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Change of Business operations

With George Drazenovic now officially in control, it was time to work on FINRA.

To help get FINRA approval for a large forward split to facilitate this insider enrichment scheme, George Drazenovic simply changed the shell's business operations.  It is just that easy with FINRA.

On September 10, 2013, George Drazenovic changed the name of the business entity to Black Stallion Oil & Gas Ltd.  George Drazenovic also cancelled 1,800,000 of his 2,200,000 shares.  Since it is only the seed shareholder shares that matter this move is actually pretty irrelevant.  It simply allows SRIT to do a large forward split without having to raise the authorized share count and tricks the naive retail investors into thinking the shares have more value than they do.  George Drazenovic still maintains majority control of the ticker.

George Drazenovic then filed to get FINRA approval for a 60:1 forward split and a name/symbol change to Black Stallion Oil & Gas Inc (BLKG).  FINRA put the changes into effect on September 18, 2013.   Once the 'D' is dropped for the forward split, Black Stallion Oil & Gas Inc will get its new trading symbol.


New Share Count

Authorized - 75,000,000 shares
Outstanding - 43,872,000 shares
George Drazenovic - 24,000,000 shares (restricted)
Anonymous Seed Shareholders - 19,872,000 shares (free trading) costing $.0025/share


What to expect next

So far no 8K has been filed about the new business operations for Black Stallion Oil & Gas Inc, but we can be sure it will have to do with oil & gas.  It will not surprise me if we see several similarities between Black Stallion Oil & Gas Inc and George Drazenovic's last big name oil & gas ticker, Sun Cal Energy Inc (SCEY) which went through a major $900,000 newsletter/email spam promotion in 2007 followed by smaller spam promotions over the next few years before getting suspended by the SEC in 2011 then later revoked.  The 2007 paid promotion helped the SCEY share price move from under $2.00/share to over $4.00/share before quickly faded to well under $1.00/share.  There were lots of articles on the internet warning investors about SCEY being a scam, which obviously it was.

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Based on the size of the Black Stallion Oil & Gas Inc float and the history of George Drazenovic, I expect that Black Stallion Oil & Gas Inc will also eventually become the subject of some kind of newsletter/email spam promotion.  Before that happens we'll probably see an 8K announcing the acquisition of some oil & gas wells that in reality are economically unfeasible to develop possibly located in Southern California.  We'll also eventually get a website for Black Stallion Oil & Gas Inc.  This one is probably still a few weeks away from a paid promotion, but today we are adding Black Stallion Oil & Gas Inc to our list of tickers to watch for a future paid promotion.





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