National Graphite Corp (NGRC) – research report

09 Sep National Graphite Corp (NGRC) – research report

 

 

I first received a request to do research on National Graphite Corp (NGRC) a few weeks ago.  I immediately recognized the ticker because of its connection to Ken Liebscher.  I had done some research on Ken Liebscher in the past.  I regret now putting off this research report.  This past week NGRC became a confirmed paid promotion

Going back through the entire history of the ticker would be very time consuming so I am going to focus my report on the individuals currently associated with the shell and how they can be linked together to several other tickers going back several years.  

NGRC is controlled by somebody named Ken Liebscher and the following group of people (among possible others) - Kevin Murphy, Jake Bottay,Gary Musil, Lionel Welch, Fortunato Villamagna, Peter Hewitt, Sharon Marin, Howard Bouch, Andrew Godfrey, David Craven.

This is a tight knit group that has teamed up together on several tickers to date.  The tickers almost always play out the same way.   Some kind of real oil & gas or mineral claim usually controlled by members of this group will get attached to the ticker.  Money will get borrowed from foreign entities controlled by these insiders that will eventually become free trading stock.  Consulting agreements will get set up with certain members of this group.  And the shell will be used to enrich insiders while minimum effort is made to actually develop the oil & gas or mineral claims.  Eventually the insiders will move their scheme over to the next shell often playing musical chairs with the same assets and repeat the whole game over again.

 

Other tickers associated with this group include:

Tiger Oil & Gas (TGRO)

Starting in 2008, Ken Liebscher was the Chairman of Tiger Oil & Energy,  Howard Bouch was Director, Fortunato Villamagna was the CEO, Lionel Welch was a major shareholder, Sharon Marin was a major shareholder, Peter Hewitt was a major shareholder, Kevin Murphy was a paid consultant and shareholder through Wannigan Capital, James Parsons was legal counsel, Harold Gewerter was legal counsel.

TGRO insiders use 3 Belize based entities to hold their shares

The Excalibur Group A.G. (Lionel Welch)
The Sundance Capital Group (Sharon Marin)
The Palm Harbour Int'l Inc (Robert Bandfield)

David Craven (Ceramatic Inc and Celtric Lyon Ltd) was also a large shareholder
Jake Bottay (International IR, Inc) was also a large shareholder

Andrew Godfrey and Robert Bandfield of IPC Corporate Services LLC helped set up the anonymous entities in Belize:

http://www.ipc-offshore.com/index.html

 

Lone Mountain Mines (nka Dewmar International BMC Inc - DEWM) (fka Wannigan Ventures Inc)

Kenneth Liebscher - large shareholder
Kevin Murphy - original CEO
James Parsons - legal counsel
Lionel Welch (The Excalibur Group S.A.) - large shareholder
Sharon Marin (The Sundance Capital Group) - large shareholder
Andrew Godfrey (Chancery Lane Investment Group Inc) - large shareholder
David Craven (Virtigo S.A.) - large shareholder
Lone Mountain Mines had several anonymous foreign entities as shareholders

 

Aldar Group (nka NanoTech Entertainment, Inc - NTEK)

Kevin Murphy/Ken Liebscher (Wannigan Capital Corp) - paid consultant
James Parsaons - legal counsel
Lionel Welch (The Excalibur Group S.A.) - large shareholder
Andrew Godfrey (Chancery Lane Investment Group Inc) - large shareholder
Howard Bouch - large shareholder
Jake Bottay - CEO/large shareholder

 

Universal Potash Corp (UPCO)

Kevin Murphy - CEO
Jake Bottay - CFO
Kenneth Liebscher - shareholder/consultant

 

Blackhawk Exploration Inc (BHWX)

Kevin Murphy - CEO
Howard Bouch - CFO
Andrew Godfrey (Chancery Lane Investment Group Inc) - debt holder / large shareholder
William MacDonald (McDonald Tuskey) - legal counsel

 

Celtic Cross Limited (nka Fountain Healthy Aging Inc (FHAI))

Ken Liebscher - large shareholder
James Parsons - legal counsel
Kevin Murphy (Wannigan Capital) - paid consultant/CEO
Howard Bouch - CEO/CFO
Andrew Godfrey (Chancery Lane Investment Group Inc) - large shareholder

 

Silver Mountain Mines (never made it public - S-1 was withdrawn)

Ken Liebscher - large shareholder
James Parsons - legal counsel
Kevin Murphy (Wannigan Capital) - paid consultant/CEO
Andrew Godfrey (Chancery Lane Investment Group Inc) - large shareholder
Lionel R. Welch (The Excalibur Group) - large shareholder
David Craven/Steve Drayton (Megeve Capital) - large shareholder

 

Northumberland Resources Inc (NHUR)

Ken Liebscher - large shareholder/consultant
Kevin Murphy - large shareholder/consultant
Peter Hewitt - officer/shareholder
Andrew Godfrey (Chancery Lane Investment Group Inc) - large shareholder
David Craven (Celtic Lyon Ltd) - large shareholder
Jake Bottay (International IR Inc) - large shareholder
Fortunato Villamagna - CEO/large shareholder
Jill Arlene Robbins - legal counsel

 

Rockford Oil Corp (see report here)

Ken Liebscher - large shareholder
Kevin Murphy - CEO
Harold Gewerter - legal counsel
Steven Drayton (Ergo Investments Inc) - large shareholder
David Craven (Blue Olive Ventures) - large shareholder

 

 

This group goes way back to a company called ThermoElastic Technologies Inc which was named in Operation Bermuda Short in 2002 along with Ken Liebscher.

Operation Bermuda Short

Kenneth Liebscher was the long time president of ThermoElastic Technologies Inc 

ThermoElastic became Wannigan Capital Corp in 2003 = Kevin Murphy 

http://www.sec.gov/Archives/edgar/data/1074142/000106299302000674/form8k.htm

A beneficial owner of ThermoElastic/Wannigan Capital Corp included: 

A Belize entity called Sundance Capital Corp which at that time had Jake Bottay as the president and Gary Musil and Lionel Welch as officers - then later started having Sharon Marin as the signatory

http://www.sec.gov/Archives/edgar/data/1074142/000123224703000021/enio.txt

Howard Bouch was added as an officer for Wannigan Capital Corp on October 1, 2004: 

http://www.sec.gov/Archives/edgar/data/1074142/000105652004000158/form8-k_philres.htm

The shell was revoked by the SEC in 2007: 

http://www.sec.gov/litigation/admin/2007/34-55839.pdf

More information about Operation Bermuda Short and Ken Liebscher's involvement specifically can be found at the end of this post.

 

 

National Graphite Corp (NGRC) 

 

Before becoming National Graphite Corp, the shell was known as Lucky Boy Silver Corp (LUCB)

NGRC/LUCB is a Ken Liebscher shell and has all the usual suspects involved.

Ken Liebscher purchased control of the shell on December 11, 2009 by acquiring 6,000,000 shares for $200,000.  Ken Liebscher then assigned himself as the new sole officer/director of the shell.

Ken Liebscher immediately got his buddies involved by selling stock to them at $.40/share using two offshore entities. With Clark Cane LLP helping to draft the subscription agreements on December 29, 2010.

Ken Liebscher regular, Fortunato Villamagna was brought in to be the new secretary, CFO, and director on January 5, 2010.

Ken Liebscher then assigned some assets that he controlled (AG Properties) to the NGRC/LUCB shell on February 23, 2010.

On April 10, 2010 came the 15:1 forward split turning those shares bought by Ken Liebscher's buddies into shares now purchased at $.026/share instead of $.40/share increasing their total from 375,000 to 5,625,000 shares and increasing Ken Liebscher's ownership from 6,000,000 to 90,000,000.  Those 5,625,000 shares are probably the main shares that will be getting dumped during this current paid promotion.

Some where in the middle of all of this Wannigan Capital (Kevin Murphy/Ken Liebscher) also ended up with 260,000 shares.

In October of 2010, NGRC/LUCB signed a draw down debt agreement with a British Virgin Island entity called Cardinal Capital Holding Limited.   Ken Liebscher does not disclose who owns Cardinal Capital Holding Limited.

NGRC is quickly playing out like ThermoElastic and all of Ken Liebscher's other shells all over again.

To accommodate all of the new shares that will have to be issued the authorized share count is raised to 500,000,000 in December of 2010.  The DEF14C for the event shows us a new anonymous shareholder, Brant Investments Limited with 8,700,000 shares.  I believe Cecilia Kershaw to be the control person for Brant Investment Limited and these to have originally been seed shareholder shares at the time the shell went public.

In January of 2011, Ken Liebscher converted 67,500,000 of his common shares into preferred shares.

In this S-1 filing done on June 29, 2011 we find out that more of the gang has joined in as NGRC/LUCB shareholders - Howard Bouch (and family), Jake Bottay (and family), and Peter Hewitt (and family).

Since this time, NGRC/LUCB has continued to expand its mineral property ownership.  Most recently, NGRC has signed agreements with Habitants Minerals Ltd (John Speck) for the rights to some graphite properties and with GeoXplor Corporation (John Rud) for the rights to some graphic properties.

Following the move into the graphite industry, the name of the shell was changed to National Graphite Corp on May 9, 2012 with the new ticker (NGRC) being granted on June 5, 2012.

Since the name/symbol change, NGRC has put out  3 press releases and a $2,000,000 promotional campaign was started on September 5, 2012 using a 3rd party payer for the promotion, Cahal Media Inc, to hide who is really flipping the bill for the paid promotion.  I expect that the $2,000,000 will get split up between many promotional fronts.  We have already seen that MicroCap Marketplace report get followed up with this Out of the Box Stox promotion.

At this point we are hesitant to speculate that this will be the next long term runner.  

 

What the past tells us about NGRC

Does knowing that the same players involved in NGRC were also involved in the TGRO, DEWM, NTEK, UPCO, BHWX, FHAI, and NHUR shells help teach us anything?

TGRO and NHUR have yet to see any real volume yet.  If anything, NGRC teaches us that TGRO, NHUR, and Rockford Oil Corp could be paid promotions in the future.

UPCO was pumped & dumped.  It has a long run to the top followed by a sharp drop off and has since basically been abandoned sitting at $.0024/share as a non-reporting entity.

 

DEWM was promoted since the last name/symbol change which turned out to be nothing but insiders dumping.  I have been unable to go back under the previous symbol CVCT (while still controlled by the same insiders) to learn information about paid promotions during that period.

 

NTEK filings show that as recently as May 2012, Kevin Murphy still owned a good chunk of shares in NTEK.  His ownership probably wasn't enough to kill the NTEK stock price alone, but NTEK has had an ugly last couple of months just like DEWM.

 

BHWX - Kevin Murphy/Howard Bouch/and gang had control of BHWX well into 2012 (and maybe still do).  They stopped doing filings for the company in 2011 and have since destroyed it through share dumping.

 

FHAI has switched names/ticker symbols several times since the Ken Liebscher group took that shell public.  In the end the fate was no better than the others.  It now sits as an abused non-reporting entity trading at $.0004/share.

 

What we know from reviewing the past is that NGRC will probably eventually end up diluted and abandoned while this group takes its scheme to the next shell they control in waiting.  What we don't know is how long this current paid promotion will help the NGRC stock price before the wheels come off.

 

 

More on Operation Bermuda Short / Ken Liebscher

Back in 2002, ThermoElastic became one of the penny stocks focused on in the Bermuda Shorts trial.  
The names of the companies and individuals Indicted in the Bermuda Short sting included:

Those indicted were: Daniel Bender, Bruce Biddick, Douglas Rasberry, Michael Vlahovic Lawrence Gallo, Melvin Levine, Robert Wilder, Michael Reiter, David Rich, George Doumanis, Thomas Steinbach, Cris Sagnelli, Daniel Charboneau, Michael Puorro, Marshall Klein, Bruce Bertman, Ray Hutchison, Jerry Poole, Charles Arnold, Greg Balk, Jeffrey Senger, Blair Valentine, Howard Kerbel, Barry Berman, Dennis Epstein, Kenneth Liebscher, Vincent Barone, Mark Weirtzema, Gordon Novak, Charles Cini, Les Price, Joseph Huard, James Kelly, Bruce Cowen, Anthony Damato, Geoffrey Gazda, James Cary Parrish, Paul Lemmon, Mark Valentine, Andrew Proctor, Michael Reiter, Justyn Feldman, Paul Derome, Walter Dorow, Frank Dickey Jr., Dax Ross, Ashley Sosner, Richard Greene, Tim Rice, Mario Turcotte, Sheldon Mickelson, Richard Carson, Serdar Kalaycioglu, John Purdy, Ronaldo Horvat, Harold Jolliffe, Kevan Garner, Martin Chambers, and Michael Hepburn.

Publicly-traded firms mentioned in the indictments include: Digital Concepts International Inc., Uncommon Media Group Inc., COI Solutions Inc., Integrated Homes Inc., FoneCash Inc., A1 International Inc., SeaEscape Entertainment Inc., Lifekeepers International Inc., Piccard Medical Corp., International Stores.com Inc., ThermoElastic Technologies Inc., Rhino Ecosystems Inc., Medinah Minerals Inc., Lighthouse Fast Ferry Inc., Sealant Solutions Inc., Eagle Building Technologies Inc., C-Me-Run Inc., SoftQuad Software Ltd., JagNotes.com Inc. CT Cosmetics Inc., New Anaconda Company, Equity Technologies & Resources Inc. and Movie-O-Network Inc.

 

For more information about Operation Bermuda Short read the following:

 

Operation Bermuda Short, a two-year undercover securities fraud investigation, was
designed to expose and prosecute individuals who attempted to engage in the fraudulent
purchase and sale of stock of U.S. publicly-traded companies. The outstanding efforts of
a team of prosecutors and law enforcement officers resulted in the return of 23
Indictments charging 58 individuals, from the U.S. and elsewhere, with conspiracy,
securities fraud, wire and mail fraud, and/or money laundering. The securities fraud
activities charged in these Indictments involved the securities of 21 U.S. publicly-traded
companies located throughout this country and Canada. Although this investigation was
conducted in such a way that resulted in no actual loss to any investor, the combined
attempted securities sales exposed by this operation totaled over $200 million.

The investigation involved two scenarios. In the first scenario, an undercover FBI agent
(“FBI UCA”) posed as a corrupt securities trader employed by the U.S.-based
representative of a fictitious foreign mutual fund (“the Fund”). The FBI UCA would
represent that the Fund had a number of investors who had invested millions of dollars.
The FBI UCA claimed that he worked with two U.S.-based due diligence officers who
researched and approved which securities the undercover agent, as the Fund’s purported
trader, could purchase on behalf of the Fund and its investors. The FBI UCA also
claimed that a purported manager of the Fund was corrupt and had knowledge of the
undercover agent’s corrupt activities concerning the Fund. Two cooperating witnesses
(collectively the “CWs”), who assisted in the undercover operation, posed as corrupt
stock promoters that presented prospective stock purchase deals to the Fund.
The FBI UCA, along with the CWs, presented themselves as being able to arrange for the
fictitious Fund to pay millions of dollars for large blocks of stock owned by the
defendants and/or their companies at prices significantly above the actual market prices
of the stocks. In return for the Fund purchasing their stock, the defendants agreed to
participate in an illegal kickback scheme in which proceeds from the stock sales to the
Fund would be secretly kicked back by the defendants to the FBI UCA and others
involved in the scheme. The amount of undisclosed kickbacks generally amounted to
several million dollars and were to be paid using offshore corporate entities and bank
accounts. In some instances the defendants, including licensed securities brokers, agreed
to participate in the illegal kickback schemes by agreeing to help manipulate the market
prices of the stocks involved. Specifically, defendants agreed to artificially increase the
market price of a publicly-traded company’s stock by recommending and selling shares
of the particular stock to their customers in exchange for undisclosed payoffs.

The second scenario involved corporate officers, stock promoters and other financial
professionals who laundered, through U.S., Canadian, and off-shore banks, a total of
almost $1.4 million of funds that were represented as proceeds from cocaine distribution
by an undercover FBI agent and an undercover Royal Canadian Mounted Police
(“RCMP”) agent posing as members of a Colombian drug cartel. These money
laundering transactions were agreed upon as the initial part of a longer standing business
relationship where the defendant corporate officers, stock promoters and other financial
professionals would receive many more millions of dollars, represented as cocaine
proceeds, for furthering their securities fraud schemes and other financial fraud.
The undercover investigative phase of Operation Bermuda Short began in 2000 and
continued until 2002. From the outset, the around-the-clock, 7-day-a-week, undercover
phase of the investigation was extraordinarily difficult and delicate because law
enforcement desired to expose millions of dollars worth of attempted fraudulent
securities sales without affecting the securities markets or causing any actual loss to
investors in those markets. To accomplish this task, a team of prosecutors and agents
carefully conducted and supervised the investigation, as well as coordinated efforts with
the U. S. Securities and Exchange Commission (“SEC”) and the NASD. The
investigation generated numerous undercover audiotapes and videotapes, many of them
lasting for several hours, which captured the fraudulent activities which ultimately served
to support the charges brought against the defendants. Ultimately, 58 targets were
charged in 23 Indictments. A nationwide operational takedown to effectuate the arrest of
the charged defendants was undertaken in August 2002. As a result of the team’s tireless
efforts, 55 of the 58 charged defendants were arrested nationwide over the course of 36
hours. Simultaneously with the arrest of these defendants, the SEC filed 4 parallel civil
injunctive actions against certain of the defendants charged and some of the companies
involved in this investigation.

Due to the strength of the cases, the vast majority of the defendants pleaded guilty before
trial. The extraordinary efforts by the team of prosecutors and agents assigned to this
investigation and attendant prosecutions resulted in the conviction of approximately 88%
of all arrested defendants and sentences of as much as 27 years of imprisonment. These
convicted defendants included, among others, numerous officers and directors of
publicly-traded companies, securities brokers and promoters, lawyers, and accountants.
Operation Bermuda Short was the first undercover securities fraud operation in the
Southeast region of the United States and one of only a handful of such operations ever
conducted nationwide. This successful prosecution was one of the first significant
accomplishments of the U.S. Department of Justice’s (“DOJ”) Corporate Fraud Task
Force. Through the tireless efforts of the team of prosecutors and agents assigned to this
operation, 23 indictments were returned charging 58 individuals, from the United States,
Canada and the Caribbean, with securities fraud and related charges. The team undertook
a massive and complicated two-year undercover investigation, prevailed in substantial
and difficult pre and post-trial litigation, and convicted approximately 88% of all of the
arrested defendants. The team’s efforts sent a clear message that the DOJ will not
tolerate corporate fraud and that DOJ will proactively and aggressively prosecute those
who illegally threaten the integrity of this nation’s capital market system.

 

A separate litigation battle was also started against Frank J. Custable Jr, the stock promoter hired to promote Ken Liebscher's ThermoElastic Technologies Inc shell.

http://www.rgm.com/articles/custable.html

North America's top regulator has targeted Chicago-area tout and repeat securities violator Frank J. Custable Jr., for his promotion of seven penny stock companies, including veteran Howe Street promoter Kenneth (Ken) Liebscher's ThermoElastic Technologies Inc. The United States Securities and Exchange Commission civil prosecution coincides with the current unrelated criminal trial of Mr. Liebscher and his ThermoElastic associates in Miami, as part of Operation Bermuda Short.

The SEC notes that "federal criminal authorities," presumably the FBI, executed a search warrant and seized materials at the offices of Suburban Capital, one of Mr. Custable's companies, in connection with one of the schemes in the regulatory probe.

The SEC claims the overall scheme, which began in at least November, 2001, has generated at least $4.3-million in ill-gotten gains. (All figures are in U.S. dollars.) "Custable and the other defendants illegally dumped massive quantities of the improperly registered shares on the general public," states the SEC.

The SEC hopes to trace where these funds ended up. The regulator claims that since at least 2002, Mr. Custable has taken steps to direct his ill-gotten gains beyond the reach of U.S. law enforcement. In the summer of 2002, he set up an offshore entity in Nevis, allegedly to protect his assets from any potential criminal or civil judgment.

In June 2002, Mr. Custable and Suburban Capital transferred over $110,000 into an account at a Costa Rican bank for the eventual credit of Pine Services, or Suburban Capital. The proceeds are then transferred to an account at Banco Nacional de Costa Rica.

In a civil complaint filed March 27 in United States District Court for the Northern District of Illinois, the SEC claims Mr. Custable, his associates and fronts and his company Suburban Capital Corp. received many millions of shares, often representing 10 to 30 per cent of the companies' outstanding shares, in sham Form S-8 registrations, which are usually used to issue shares to legitimate employees and consultants.

The named defendants include Mr. Custable, Sara Wetzel, Suburban Capital, Francis Scott Widen, Wasatch Pharmaceutical Inc., David Giles, Gary Heesch, Pacel Corp., David Calkins, Gateway Distributors, Ltd., Richard Bailey and ThermoElastic Technologies, Inc. None of the allegations have yet been proven in court and none of the targets have yet filed former defences, or answers.

On March 28, the day after filing the complaint, the SEC won a temporary restraining order enjoining the defendants from future securities violations. The SEC seeks unspecified sums for disgorgement and civil penalties, a penny stock bar against Mr. Custable, Suburban, Ms. Wetzel, Messrs. Widen, Heesch, Calkins and Bailey, and an order barring Messrs. Heesch, Giles, Calkins and Bailey from ever serving as an officer or director of a public company.

Mr. Custable, who was a broker with various firms until February, 1992, has a past. "Custable has a significant disciplinary history in the securities industry," states the SEC.

In 1994, as part of an SEC action, Mr. Custable and F.C. Financial Corp., a company entity that he operated and controlled, were permanently enjoined from violating the antifraud provisions of the Securities Act and the Exchange Act and ordered to pay disgorgement of $325,000 and a civil penalty of $60,000. This case related to a fraudulent offering involving mortgage-backed promissory notes.

In 1994, as a result of this action, the State of Illinois entered an order permanently prohibiting Mr. Custable and F.C. Financial from offering or selling any securities in Illinois and fined him $10,000.

In a prior action in 1992, the National Association of Securities Dealers censured Mr. Custable, barred him from association with any member firm, and fined him $20,000 as a result of his execution of unauthorized trades in customers' accounts and guaranteeing a return on the investments he sold to customers. That same year, the State of Wisconsin entered a summary order of prohibition and revocation of exemptions against Mr. Custable for his failure to disclose his disciplinary history and other misrepresentations related to his sale of mortgage-related investments.

In 1991, the State of Indiana ordered him to cease and desist from committing violations of the Indiana Securities Act and ordered him to pay a $15,000 civil penalty and $11,000 in restitution for fraud and other misconduct related his sales of investments.

The SEC's latest Custable action comes at an embarrassing time for Mr. Liebscher and Toronto penny stock consultant Dennis Epstein, whose two-week Bermuda Short trial, involving their ThermoElastic dealings, is scheduled to close this Friday. On the eve of their trial, which started March 24, the pair got bad news, as all four of their co-defendants had pled guilty and agreed to fully co-operate with tough U.S. authorities, including testifying against the holdout pair.

Mr. Liebscher and his associates were arrested Aug. 14 and 15 as part of Operation Bermuda Short, a joint FBI-RCMP undercover sting operation in which the Canadians allegedly agreed to bribe corrupt officials of a fictitious mutual fund. Co-defendants Howard E. Kerbel, a Toronto lawyer, and Barry Berman, a retired Toronto dentist, pled guilty on March 14. Two others: Vincent (Vinny) Barone, a New York broker, and promoter Melvin L. Levine, of Pompano Beach, Fla., pled guilty at the start of the trial.

The six were all players in ThermoElastic Technologies Inc., a promotion on the loosely regulated but heavily prosecuted OTC Bulletin Board. The ThermoElastic defendants face a combined 15 counts of wire fraud, mail fraud and securities fraud.

The SEC claims Mr. Custable's scheme involves illegally obtaining large positions in penny stock issuers and then using nominees to engage in unregistered offerings of the stock, while fraudulently concealing his interest in the stock. The regulator claims that to carry out his scheme, Mr. Custable has used Suburban Capital, which purports to provide financing and consulting services to small public companies, as well as Ms. Wetzel and Mr. Widen, who work for him at Suburban.

The SEC claims Mr. Custable also used various other individuals as straw men, or nominees, to secretly obtain stock, often fraudulently, for his benefit, which Suburban, Ms. Wetzel, Mr. Widen and other fronts promptly sold into the public market under his direction. without disclosing his interest in the stock. "The fraud involved includes sham commission Form S-8 registration statements, forged stock authorization forms, and at least one bogus attorney opinion letter arranged by Custable," states the SEC.

The SEC claims that in the case of stock that Mr. Custable's straw men obtained from defendants Wasatch, Gateway, Pacel and ThermoElastic, as well as from Sharecom Inc., the issuers either obtained little or no bona fide services in exchange for the stock, or improperly issued the stock in connection with a capital-raising transaction.

 

Rinse Wash Repeat

Ken Liebscher managed to avoid a guilty verdict in the Bermuda Short trial.  Despite his close brush with a prison cell, little changed for Ken Liebscher following the trial.  He continued to take over control of publicly traded shells,  he continued to associate with the same close business partners he used with ThermoElastic (Kevin Murphy, Jake Bottay,Gary Musil, Lionel Welch, Sharon Marin, Howard Bouch), and he continued to use foreign entities to hold large chunks of shares in all of his publicly traded shells.