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7 Individuals Indicted in "Pump & Dump" Scheme
Anonymous
Posted: Friday, August 12, 2011

Posted: 10/1/2003 11:31:50 AM

By: Excellent

That was a nasty, tawdry little scam.


Internal Administrator
Posted: Friday, August 12, 2011
Joined: 10/12/2010
Posts: 5780


Posted: 10/1/2003 10:32:38 AM

By: fininv

FOR IMMEDIATE RELEASE
TUESDAY, SEPTEMBER 30, 2003
WWW.USDOJ.GOV CRM
(202) 514-2008
TDD (202) 514-1888

SEVEN INDIVIDUALS INDICTED IN ANTHRAX-RELATED
‘PUMP AND DUMP’ SCHEME

WASHINGTON, D.C. - Assistant Attorney General Christopher Wray of the Criminal Division today announced that a federal grand jury in the District of Columbia has indicted seven individuals in connection with a securities fraud “pump and dump” scheme involving a company named 2DoTrade, Inc. The indictment was returned on August 20, 2003, and the case was unsealed today after several defendants were apprehended.

The eight-count indictment names as defendants: Barry Gewin, 36, of Enon Valley, Pennsylvania; Michael Karsch, 43, an attorney from Boca Raton, Florida; Dominic Roelandt of Dehderhoutem, Belgium; George Taylor, 63, of Ayrshire, Scotland; L. Van Stillman, 55, an attorney from Delray Beach, Florida; David Wood, 51, of Charlotte, North Carolina; and Clinton Walker, 35, of Charlotte, North Carolina. Roelandt was arrested in Luxembourg on September 29, 2003 pursuant to an international warrant. Gewin was arrested in Pennsylvania on September 29, and Stillman and Karsch were arrested in South Florida also on September 29, 2003. Wood made his initial appearance today in Charlotte, North Carolina.

The indictment alleges that the defendants were part of a scheme to manipulate the market for 2DoTrade stock through claims that the company had over $300 million in commodities contracts. The indictment further alleges that the company falsely claimed it had a product that could kill the anthrax virus, to capitalize on the October 2001 anthrax attacks. The indictment charges the defendants with conspiracy to commit securities fraud and wire fraud, as well as substantive counts of securities and wire fraud.

2DoTrade, Inc., was a Nevada corporation purportedly headquartered in British Columbia, Canada, and London, England. The common stock of 2DoTrade was registered with the U.S. Securities and Exchange Commission and was traded under the symbol “TDOT” on the Over the Counter Bulletin Board, a quotation service operated by the NASD.

“The charges announced today demonstrate the Justice Department’s commitment to prosecuting anyone who seeks to fraudulently manipulate the stock market,” said Assistant Attorney General Christopher Wray of the Criminal Division. “Fraud that capitalizes on the public’s fears about the deadly anthrax attacks is no way to do business.”

According to the indictment, the defendants fraudulently pumped up the price and volume of TDOT stock by engaging in aggressive and misleading promotional campaigns, including the issuance of several press releases that falsely claimed the company had contracts for various goods and commodities worth over $300 million. In reality, the contracts were bogus and were never executed. Later, in a renewed effort to fraudulently raise TDOT’s flagging stock price, the conspirators allegedly exploited the publicity generated by the October 2001 anthrax attacks by fraudulently claiming that TDOT had an anti-anthrax product.

During the course of the conspiracy and as part of the defendants’ campaign to entice unsuspecting investors to buy TDOT stock, the defendants allegedly disseminated millions of spam e-mails and faxes without disclosing their ownership interest in the vast majority of TDOT stock. The indictment alleges that at the same time that defendants were promoting TDOT stock, the defendants profited by dumping their stock into an artificially inflated market to unsuspecting investors.
According to the indictment, during the initial phase of the scheme, while TDOT had an apparent market capitalization of over $20 million, in reality, the company was worthless - having no employees and no business operations. While the defendants collectively sold over $1.6 million worth of TDOT stock, they were prevented from selling additional shares when the SEC suspended trading in TDOT shares.

This case was investigated by the Securities and Exchange Commission - Fort Worth Regional Office, and referred to the Fraud Section of the Criminal Division at the Justice Department by NASD. The case was prosecuted by Department of Justice Trial Attorneys Raja Chatterjee and Dorothy McCuaig.
Today, the Securities and Exchange Commission’s office in Fort Worth, Texas, filed a parallel civil action that names all seven of the defendants.

An indictment is merely an accusation. Defendants are presumed innocent until and unless proven guilty.

Below is the SEC press release on the concurrent filing of its action.
----------------------------------------------------------------

U.S. Securities and Exchange Commission

Litigation Release No. 18381 / September 30, 2003

Securities and Exchange Commission v. 2DoTrade, Inc., George Russell Taylor, Barry William Gewin aka Barry Peters, Eric T. Landis, Dominic Roelandt, Michael D. Karsch, L. Van Stillman, David A. Wood, Jr., Clinton Walker, Oxford and Hayes, Ltd., FG & P Consulting, Ltd., Hackney Holdings, Ltd., Weston Partners, Inc., Infiniti Corporate Services, Ltd., Argo Financial, Ltd., 21st Equity Partners, Inc., MCG Partners, Inc., and LMR, Ltd., Civil Action Number 3:03-CV-2246-N(Godbey) (N.D. Texas, Dallas Division)

Securities and Exchange Commission v. Craig J. Shaber, Stephen R. Wright, and Bonaventure Capital, Ltd., defendants, and Aspen International Marketing, Inc. and Wright & Geis, Inc., relief defendants. Civil Action No. 3:03-CV-2247-G(Fish) (N.D. Texas, Dallas Division).

SEC Files Lawsuit Against 2DoTrade, Inc., Its President, Several Stock Promoters, and Two Attorneys In Bogus Anti-Anthrax, Pump-and-Dump Scheme -- Also Files Related Lawsuit Against California Attorney and Accountant for $7.5 million "Shell-Factory" Scheme

On September 30, 2003, the Securities and Exchange Commission filed a lawsuit against 2DoTrade, Inc., its president, several recidivist stock promoters, and two attorneys in a "pump-and-dump" market-manipulation case. 2DoTrade is an SEC-reporting company whose stock was formerly quoted publicly on the OTC Bulletin Board. According to the SEC's complaint, from July to November 2001, the defendants engaged in a fraudulent scheme in which they artificially pumped 2DoTrade's stock with false press releases, spam e-mail, and a fraudulent website and then illegally dumped millions of shares into the inflated market. At one point in the scheme-amid recurring reports of fatal anthrax attacks in the United States-several of the defendants sought to profit from the nation's fear of terrorism with false press releases about 2DoTrade's purported imminent distribution of an anti-anthrax compound in the United States. In a separate civil lawsuit filed on the same day, the SEC alleged securities fraud and other violations against a California attorney and accountant who created and sold the public shell company used in the 2DoTrade scheme.

The 2DoTrade complaint alleges that, in June 2001, defendants Barry W. Gewin, 36, of Enon Valley, Pennsylvania, Eric T. Landis, 38, of Charlottesville, Virginia, and Dominic Roelandt, 26, of Dehderhoutem, Belgium, gained de facto control of 2DoTrade-a shell company with no assets or revenue-by acquiring control over virtually all of its "free-trading" stock. Then, in collusion with 2DoTrade's president, defendant George R. Taylor of Ayrshire, Scotland, they manipulated 2DoTrade's stock price in two fraudulent promotional campaigns. The first campaign, which took place in July and August 2001, touted 2DoTrade's ownership of certain import/export contracts supposedly worth $300 million. In reality, these contracts were worthless. The second campaign, which began in October 2001, claimed that 2DoTrade was testing an anti-anthrax compound called "ATHOQ" at a hospital and a university in the United Kingdom for imminent distribution in the United States. In reality, ATHOQ was a sham, and no anthrax testing or product distribution ever occurred.

During the bogus-contract campaign, the defendants dumped millions of shares into the market, collectively realizing approximately $1.6 million in trading profits. As the defendant's sold their shares, the share price gradually declined by the end of August 2001. Beginning on October 31, 2001, however, the bogus anti-anthrax campaign drove up 2DoTrade's stock price again, this time by approximately 400%. During this period, certain defendants dumped over 700,000 shares into the market, for which they collectively received approximately $240,000. An SEC trading suspension on November 6, 2001, halted trading in 2DoTrade's stock and prevented some of the defendants from dumping millions of additional shares.

Other defendants named in the SEC's 2DoTrade complaint are:

Oxford and Hayes, Ltd., DBE Consulting, Ltd., and FG&P Consulting, Ltd., three Belize-registered companies controlled by Gewin. Gewin used offshore accounts in their names to sell approximately 869,000 shares of 2DoTrade stock during the fraudulent promotional campaigns, realizing approximately $318,288 in ill-gotten gains.

Infiniti Corporate Services, Ltd., a Bahamas corporation, and Argo Financial, Ltd., a Cayman Islands corporation, both controlled by Roelandt. Roelandt used offshore accounts in their names to sell approximately 1.85 million 2DoTrade shares during the fraudulent promotional campaigns, realizing approximately $474,005 in ill-gotten gains.

Hackney Holdings, Ltd., a Cayman Islands corporation, and Weston Partners, Inc., a Connecticut corporation, both controlled by Landis. Landis used domestic and offshore accounts in their names to sell 216,000 2DoTrade shares during the fraudulent promotional campaigns, realizing approximately $154,300 in ill-gotten gains.

MCG Partners, Inc., a Florida corporation, and Michael Karsch, 41, an attorney licensed in Florida, Texas, and New York. Karsch was a managing director of MCG Partners, which provided $450,000 to Gewin, Roelandt, and Landis for the purchase of an OTC Bulletin Board shell company, which ultimately became 2DoTrade. In exchange for the $450,000, Karsch and MCG Partners received 1.1 million 2DoTrade shares and a guarantee that other defendants would sustain 2DoTrade's stock price by touting the bogus contracts in a promotional campaign. Under this arrangement, MCG Partners sold 1.1 million shares for approximately $555,191, realizing a profit of approximately $105,191. Karsch received a share of these profits.

21st Equity Partners, Inc., a North Carolina corporation, its president David A. Wood, Jr., 50, of Charlotte, North Carolina, and its vice-president Clinton Walker, 33, also of Charlotte. On June 26, 2001, Wood and Walker orchestrated a manipulative matched trade with Gewin and Landis to artificially set the initial market price of 2DoTrade stock at $1.25. Wood offered and sold approximately 293,000 2DoTrade shares through a 21st Equity Partners account for approximately $154,670. Walker received at least 101,350 shares of 2DoTrade stock, which he sold for approximately $52,520.

L. Van Stillman, 54, an attorney licensed in Florida and Pennsylvania, and LMR, Ltd., an offshore company that he controlled. Stillman prepared false SEC filings on behalf of 2DoTrade, concealing Gewin, Landis, and Roelandt's beneficial ownership of 2DoTrade's stock. Stillman sold approximately 192,000 2DoTrade shares, mostly through an LMR, Ltd. brokerage account in Bermuda, realizing approximately $95,370 in ill-gotten trading profits.

Several of the 2DoTrade defendants have prior disciplinary histories. In 1992, Taylor was convicted in the United Kingdom of conspiracy to commit theft. Roelandt was enjoined in August 2000 by the United States District Court for the Northern District of Arizona for securities fraud in an action bought by the SEC, and in 2001, in another unrelated SEC action, he received an administrative penny-stock bar from the SEC. In 1999, the NASD suspended Landis' brokerage license for one year and fined him for market manipulation. And in 1998, Wood was the subject of an SEC cease-and-desist order for violations of the anti-touting provisions of the federal securities laws.

The Commission's complaint alleges that defendant 2DoTrade violated the securities-registration, anti-fraud, and issuer-reporting provisions of the federal securities laws, specifically, sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 ("Securities Act") and sections 10(b) and 13(a) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5, 12b-20, 13a-1, 13a-11, and 13a-13 thereunder. It alleges that defendant Taylor violated the anti-fraud provisions and aided and abetted 2DoTrade's violations of the issuer reporting provisions. It alleges that defendants Gewin, Roelandt, and Landis, and the defendant companies they controlled, violated the securities-registration and anti-fraud provisions and also the beneficial-ownership and principal-shareholder reporting provisions of the federal securities laws, specifically, sections 13(d) and 16(a) of the Exchange Act and Rules 13d-1, 16a-2, and 16a-3 thereunder. And it alleges that defendants, Karsch, Stillman, Wood, and Walker, and the defendant companies under their control, violated the securities-registration and anti-fraud provisions and that Stillman also aided and abetted 2DoTrade's violations of the issuer reporting provisions of the federal securities laws.

The SEC seeks, among other relief, permanent injunctions, disgorgement of ill-gotten gains with pre-judgment interest, and civil money penalties against all the defendants; officer-and-director bars against Taylor, Gewin, Roelandt, and Wood; penny-stock bars against Taylor, Gewin, Roelandt, Wood, Walker, and Karsch; and an order enjoining Roelandt from violating section 15(b)(6)(B) of the Exchange Act, which prohibits participation in a penny-stock offering in contravention of an SEC order.

The Fraudulent "Shell Factory"

Also on September 30, 2003, the SEC filed a related lawsuit in the United States District Court for the Northern District of Texas against Craig J. Shaber, 45, a California-licensed attorney and Stephen R. Wright, 57, an accountant, both from the San Diego, California area. According to the complaint, from 1998 to 2002, Shaber and Wright engaged in an elaborate scheme to manufacture and sell 18 public shell companies, from which they derived at least $7.5 million in ill-gotten gains. To carry out the "shell factory" scheme, Shaber and Wright installed nominee officers and directors in dormant corporations that they controlled and caused these companies to submit false registration statements and reports to the SEC and the NASD, Inc. These false documents gave the bogus companies the appearance of legitimacy and permitted their securities to be eligible for quotation on the OTC Bulletin Board.

Among other things, the false registration statements and reports contained phony business plans, misrepresented the identity of the companies' true officers and directors, and contained false shareholder lists. In reality, Shaber and Wright owned virtually all of the companies' stock, and the individual shareholders listed in the documents were merely nominees for Shaber and Wright. In addition, Shaber and Wright served as the de facto officers and directors of the companies and intended not to pursue the stated business plans, but rather, to sell their controlling blocks of shares-and thus control of the shell companies-to stock promoters and other buyers for substantial profits. Shaber and Wright sold one of these fraudulently manufactured companies, Moranzo, Inc., for approximately $600,000 to certain 2DoTrade defendants, who then used it to create 2DoTrade and carry out that scheme.

The other defendant and relief defendants in the Shaber and Wright case are:

Bonaventure Capital, Ltd., defendant, a private Nevada corporation controlled by Shaber and Wright. Through Bonaventure Capital, Shaber and Wright maintained a bank account into which they deposited the funds from the sale of the stock in the public shell companies and maintained a brokerage account through which they sold securities in the public shell entities. Shaber and Wright, and entities they individually controlled, shared in the ill-gotten proceeds from the Bonaventure Capital accounts.

Wright & Geis, Inc., relief defendant, is a California corporation solely owned by Wright. It received at least $100,000 from a Bonaventure Capital bank account as proceeds from the scheme.

Aspen International Marketing, Inc., relief defendant, is a Nevada corporation owned by Shaber. It received at least $1 million in proceeds from the fraudulent scheme.

The complaint alleges that Shaber, Wright, and Bonaventure Capital violated the securities-registration, anti-fraud, beneficial-ownership, and principal-shareholder reporting provisions of the federal securities laws, specifically, sections 5(a), 5(c), and 17(a) of the Securities Act and sections 10(b), 13(d), and 16(a) of the Exchange Act and Rules 10b-5, 13d-1, 16a-2, and 16a-3 thereunder. It further alleges that they aided and abetted violations of the issuer-reporting provisions, specifically, sections 13(a) of Exchange Act and Rules 12b-20, 13a-1, and 13a-13 thereunder. The SEC seeks disgorgement with prejudgment interest from each defendant and relief defendant and further seeks permanent injunctions, an accounting, and officer-and-director bars against defendants Shaber and Wright.

The Commission acknowledges the assistance of the Cayman Islands Monetary Authority, the British Columbia Securities Commission, the Police Department of Tayside, Scotland, the London Metropolitan Police Department, the Hampshire Constabulary in England, the FBI's Dallas Field Office, and the United States Department of Justice in the investigation of this matter.


Anonymous
Posted: Friday, August 12, 2011

Posted: 10/2/2003 10:33:24 AM

By: j - spotlight on Karsch ...

today's penny-scam poster-boy.

So he was also something like corporate counsel for the infamous Investco http://www.sec.gov/litigation/litreleases/lr17525.htm (attorney for original registration, did some fairness opinions).

He heads up securities work at a Boca law firm, Sachs Sax Klein http://www.ssklawfirm.com/ (don yr butt-ugly web site goggles).

He used to be at Broad & Cassel in Miami & Boca.

A bio fragment below. With Tally, Polevoy & Misher in NY in the mid 90's, representing the sell-side in over 50 issues.

OK, somebody else can check on those. I'm sick of Mike now.

"... graduate of the Wharton School (B.S. in Economics, cum laude) and the University of Pennsylvania Law School, Mr. Karsch began his career with Vinson & Elkins, Houston, Texas, as an Associate in Corporate Finance and Securities. Recently, he served as Partner with Bernstein & Wasserman, LLP, a New York-based firm specializing in securities and corporate work for emerging growth companies. Representative clients included D.L. Cromwell Investments, Inc., First Liberty Investment Group, and numerous private companies in the health care and technology areas. He also served as Executive VP and General Counsel for U.S. Diagnostics, where he was responsible for all legal affairs for the largest provider of diagnostic imaging services in the U.S. Mr. Karsch also worked with Bachner, Tally, Polevoy & Misher, LLP, NY, NY from 1990 –1996 (partner from 1995-96), representing issuers and underwriters in over 50 public and private securities offerings, primarily initial public offerings, including common stock, warrants, units and bridge financing. He also served as an associate at Skadden, Arps, Slate, Meagher & Flom, NY, NY, where he worked with many prominent companies, including Drexel Burnham Lambert, Inc., Prudential Securities,, and MacAndrews & Forbes, among others."


Anonymous
Posted: Friday, August 12, 2011

Posted: 10/2/2003 10:13:47 AM

By: Excuse me for being dumb .....

I thought the purpose of a dog stock was to pump and dump it. You mean to tell me it is illegal - ARF ARF ARF!!!!!

Joking aside the name Michael D. Karsch appears in SEC forms for a number of forms. Don't think he was a stranger to OTCBB stocks.

http://southflorida.bizjournals.com/southflorida/stories/2002/06/24/daily35.html
Pallet denies wrongdoing
Coral Springs transportation company Pallet Management Systems (OTC BB: PALT) said it has never been nor is it now the subject of any investigation regarding indictment of third parties for alleged manipulation of the company's stock price in the late 1990s.


The indictments were made by the U.S. attorney's office for the Eastern District of New York.

The company also elected directors at its annual shareholders meeting. Those directors are Ira M. Goldberg, Michael D. Karsch, Richard J. Katz, Ronald D. Shindler, Alan P. Sklar and Robert L. Steiler. The company did not provide biographical information for the newly elected directors.

Shares closed unchanged at 25 cents. The 52-week low was 21 cents on May 23. The 52-week high was $1.90 on Dec. 20.

http://www.advisorinsight.com/pub/maccess/otcbb/mrtoe_588200_mgmt.htm
MerchantOnline.com Inc.
Michael D. Karsch VP, General Counsel & Secretary

EDGARONLINE SEARCH ON 'Michael Karsch'. Haven't verified all hits are for same person.
99 CENT STUFF INC S-1 9/4/2003 N/A HTML | ORIG | RTF
2. IVIDEONOW INC S-1 9/4/2003 N/A HTML | ORIG | RTF
3. QUICK MED TECHNOLOGIES INC
Reporting Person: KARSCH MICHAEL D
4 7/2/2003 7/1/2003 HTML | ORIG | RTF
4. NYMEX HOLDINGS INC 10-Q 5/15/2003 3/31/2003 HTML | ORIG | RTF
5. QUICK MED TECHNOLOGIES INC 10KSB 10/15/2002 6/30/2002 HTML | ORIG | RTF
6. 99 CENT STUFF INC S-1/A 9/6/2002 N/A HTML | ORIG | RTF
7. QUICK MED TECHNOLOGIES INC
Reporting Person: KARSCH MICHAEL D
4 4/9/2002 3/31/2002 HTML | ORIG | RTF
8. QUICK MED TECHNOLOGIES INC
Filed As: ABOVE AVERAGE INVESTMENTS LTD
8-K 2/26/2002 2/26/2002 HTML | ORIG | RTF
9. QUICK MED TECHNOLOGIES INC
Filed As: ABOVE AVERAGE INVESTMENTS LTD
424B3 2/15/2002 N/A HTML | ORIG | RTF
10. QUICK MED TECHNOLOGIES INC
Filed As: ABOVE AVERAGE INVESTMENTS LTD
POS AM 2/13/2002 N/A HTML | ORIG | RTF
11. QUICK MED TECHNOLOGIES INC
Filed As: ABOVE AVERAGE INVESTMENTS LTD
POS AM 1/8/2002 N/A HTML | ORIG | RTF
12. TRAVLANG INC 10KSB 11/2/2001 7/31/2001 HTML | ORIG | RTF
13. TARGITINTERACTIVE INC
Filed As: GOURMETMARKET COM INC/CA
8-K 8/10/2001 7/27/2001 HTML | ORIG | RTF
14. QUICK MED TECHNOLOGIES INC
Filed As: ABOVE AVERAGE INVESTMENTS LTD
POS AM 7/13/2001 N/A HTML | ORIG | RTF
15. MERCHANTONLINE COM INC 10QSB 6/26/2001 4/30/2001 HTML | ORIG | RTF
16. QUICK MED TECHNOLOGIES INC
Filed As: ABOVE AVERAGE INVESTMENTS LTD
POS AM 4/10/2001 N/A HTML | ORIG | RTF
17. MERCHANTONLINE COM INC 10-K 3/26/2001 10/31/2000 HTML | ORIG | RTF
18. MERCHANTONLINE COM INC NT 10-Q 3/20/2001 1/31/2001 HTML | ORIG | RTF
19. MERCHANTONLINE COM INC NT 10-K 1/30/2001 10/31/2000 HTML | ORIG | RTF
20. MERCHANTONLINE COM INC S-3/A 11/21/2000 N/A HTML | ORIG | RTF
21. MERCHANTONLINE COM INC 10QSB/A 11/21/2000 7/31/2000 HTML | ORIG | RTF
22. ADC TELECOMMUNICATIONS INC 424B3 10/19/2000 N/A HTML | ORIG | RTF
23. ADC TELECOMMUNICATIONS INC S-3 10/6/2000 N/A HTML | ORIG | RTF
24. MERCHANTONLINE COM INC 10QSB 9/13/2000 7/31/2000 HTML | ORIG | RTF
25. TRAVLANG INC
Filed As: II GROUP INC
8-K 6/28/2000 6/15/2000 HTML | ORIG | RTF
U S DIAGNOSTIC INC DEF 14A 6/22/2000 7/21/2000 HTML | ORIG | RTF
27. TARGITINTERACTIVE INC
Filed As: GOURMETMARKET COM INC/CA
10QSB 5/22/2000 3/31/2000 HTML | ORIG | RTF
28. U S DIAGNOSTIC INC 10-K 3/30/2000 12/31/1999 HTML | ORIG | RTF
29. BABYS BEST LABORATORIES
Filed As: MULLY CORP
8-K 3/21/2000 3/7/2000 HTML | ORIG | RTF
30. TRAVLANG INC
Filed As: II GROUP INC
8-K 2/29/2000 2/14/2000 HTML | ORIG | RTF






Anonymous
Posted: Friday, August 12, 2011

Posted: 10/2/2003 9:48:26 AM

By: j - Karsch/Quick-Med/US Diagnostic

For penny-scam afficianados - one of the guys charged in this, a lawyer called Michael D. Karsch, is General Counsel for a company called Quick-Med (OTCBB:QMDT, http://www.quickmedtech.com/company.shtml). Or maybe he's not anymore - he's listed in the 10K as having been on board since 2001, but he doesn't seem to be on the web site now.

Anyway, QMDT says it's developing anti-aging products and has a project with the DoD which has something to do with biowar defence. Looks like they have some juice:

"LTG. Paul G. Cerjan (Ret.) -- Vice President of Worldwide Military Affairs
MG. George E. Friel (Ret.) -- Vice President of Chemical and Biological Military R&D"

The Major General was head of some large chunk of the Army's chemical/biological warfare division.

As the last 10-K points out, Mr Karsch used to be General Counsel at US Diagnostics, but neglects to mention that he was fired as part of the company's efforts to clean up its act after the events narrated in this:

http://www.sec.gov/litigation/litreleases/lr17483.htm

A securities crook called Greenberg worked for the company as a senior offficer; the company didn't disclose, pretending he was just a consultant, and they didn't have to. It appears Karsch was involved in the scheme.

Either QMDT didn't mind this history, or it didn't bother to look.


Anonymous
Posted: Friday, August 12, 2011

Posted: 10/3/2003 4:50:35 PM

By: Poking around j - closest to CA address

Canadian Office

Suite 500
505-8th Ave SW
Calgary, AB. T2Z 2P4
Tel: (403) 203-4748
Fax: (403) 203-7573
nas@euroatlanticcapital.com


Here is closest I came to an address match for a company. Maybe some of this will help you. I don't know the names of all involved with this group.

COMPANY INFORMATION

Name: STONEHENGE (DELAWARE) INCORPORATED

Address: 1209 ORANGE ST

WILMINGTON, DE 19801




FILING INFORMATION

Filing Date: 09/28/1995

State of Incorporation: DELAWARE

Date Incorporated: 02/08/1990

Duration: PERPETUAL

Status: GOOD STANDING

Corporation Type: PROFIT

Business Type: CORPORATION

Registration ID#: F027154

Where Filed: SECRETARY OF STATE/CORPORATIONS BUREAU

STATE CAPITOL

HELENA, MT 59620




REGISTERED AGENT INFORMATION

Agent Name: C T CORPORATION SYSTEM

Address: 406 FULLER AVE BOX 1166

HELENA, MT 59624



PRINCIPAL INFORMATION

Name: WILLIAM R BOSWELL

Title: DIRECTOR

Address: 510 5O5 8TH AVE SW

CALGARY, CANADA

Name: WILLIAM R BOSWELL

Title: PRESIDENT

Address: 510 505-8TH AVE SW

CALGARY, CANADA

Name: VACANT

Title: VICE PRESIDENT

Name: VACANT

Title: SECRETARY

Name: VACANT

Title: TREASURER



STOCK INFORMATION

Common Stock:

Authorized Shares: 1

Par Value: $0

Convertible: NO




Anonymous
Posted: Friday, August 12, 2011

Posted: 10/3/2003 4:27:13 PM

By: Site registration Euro Atlantic

Registration Service Provided By: Expiry Corporation
Contact: general@expiry.com
Visit: http://www.expiry.com

Domain name: euroatlanticcapital.com

Registrant Contact:
Euro Atlantic Capital
Ken Faulkner (tye10@home.com)
561-330-6401
FAX: 250-862-0724
suite z 170 777 E Atlantic Ave
NA
Delray Beach, FL 33283
US


Administrative Contact:
Euro Atlantic Capital
Ken Faulkner (tye10@home.com)
561-330-6401
FAX: 250-862-0724
suite z 170 777 E Atlantic Ave
NA
Delray Beach, FL 33283
US


Billing Contact:
Euro Atlantic Capital
Ken Faulkner (tye10@home.com)
561-330-6401
FAX: 250-862-0724
suite z 170 777 E Atlantic Ave
NA
Delray Beach, FL 33283
US


Technical Contact:
Euro Atlantic Capital
Ken Faulkner (tye10@home.com)
561-330-6401
FAX: 250-862-0724
suite z 170 777 E Atlantic Ave
NA
Delray Beach, FL 33283
US




Anonymous
Posted: Friday, August 12, 2011

Posted: 10/3/2003 2:51:41 PM

By: j - further rambling

This Quick-Med thing was a reverse merge with a Nevada blank-check shell called Above Average Investments originally organized in 1997 by Canadian Devinder Randhawa. (He had a bunch of these shells.)

Randhawa had been a Canaccord broker, turning himself into a promoter after being disciplined by the VSE. Several puffy-looking promotions, including one called Consolidated Earth Stewwards; another one called Strathmore Resources. Etc etc.

The US deal with Quick-Med was done over 2000 & 2001. Ostensibly, it was brokered by an outfit called Euro Atlantic Capital (http://www.euroatlanticcapital.com), with offices in Delray Beach Florida and Calgary.

It's very difficult to find any info on Euro. In fact, it's not clear that they exist at all, really. Registered in Feb 2000 in Florida, administratively dissolved for not filing in Sep 2001. The Web site is just a splash page. There is no record of any other deals that I can see, no other record of corporations or any other visible news concering principals Reginald A. Gilmour & Andrew J. Phillips & Kenneth Faulkner.

(Euro doesn't appear to have any connection to defunct, mobbed-up Euro-Atlantic Securities.)

Perhaps Euro was just a temporary thing put together by Karsch for the Quick-Med deal.

He joined his (seriously) impressive fellow directors on the BOD of then-private Quick-Med in July 2000. The reverse merge negotiations with Randhawa's Above Average shell commenced in November. Quick-Med filings indicate that Euro identified the shell for Quick-Med, and they also provided financing to Quick-Med - some loans, to convert into equity when the backdoor had been completed, and a commitment to follow-on equity funding.

I suspect that the whole deal was Karsch's idea, and that whatever was done with Euro, was done mainly by him.

Although this is just making up stories, it would not surprise me to find that he had been working with Quick-Med for a while before joining the BOD; had organized Euro with front nominees just for the purpose of constructing a convenient "merchant bank" to “broker” a deal, hiding his own involvement; and that one of several easily-imagined stock scams was the intended result, perhaps involving collaboration north of the border.

BTW, Quick-Med and Euro use the same Calgary phone number.

I feel a bit sorry for these Quick-Med guys; my (admittedly very fallible) gut feel is that they were legit & unprepared for the pennystock snakepit.


Anonymous
Posted: Friday, August 12, 2011

Posted: 10/2/2003 1:06:54 PM

By: j - Oopsie. Chairman of Quick-Med ...

has just joined Federated Investors as head of capital markets research, having just left a similar postn at JPM investment management.

http://pittsburgh.bizjournals.com/pittsburgh/stories/2003/09/08/daily43.html?jst=m_ln_hl

Time to don the extreme-embarassment-for-senior-investment-guy goggles. Or maybe the camouflaged ones on behalf of the major general, who apparently was ...

"... the Commanding General of the U.S. Army Chemical and Biological Defense Command, at the Aberdeen Proving Ground in Maryland, Deputy Chief of staff for Chemical and Biological Matters of the Army Material Command, Alexandria, Virginia and was responsible for a $1 billion contract for protective military clothing. Mr. Friel served as commanding general, 59th Ordinance Brigade, Pinnasens, Germany; Chief, Nuclear Chemical Division, U.S. Army Europe; and commander of the Miesau Army Depot in Germany. Mr. Friel was also responsible for a $600 million budget for Nuclear, Biological, and Chemical Defense Command for six years and directed over 1,100 scientists and engineers. Mr. Friel has also served as Chairman of the Boards of the Nuclear, Biological, and Chemical Defense Enterprise at the Edgewood Arsenal, and the Army Material Command, Acquisition and Procurement Enterprise."

They certainly booted Mike Karsch off the Web site with military efficiency, given that he signed the 10-K on Sep 25.


Anonymous
Posted: Friday, August 12, 2011

Posted: 10/2/2003 11:14:04 AM

By: Like your web site viewing suggestion

Made me laugh and folks should follow your suggestion.

http://www.ssklawfirm.com/ (don yr butt-ugly web site goggles).


Anonymous
Posted: Friday, August 12, 2011

Posted: 10/3/2003 9:12:02 PM

By: j - email from Quick-Med Chairman

On September 30th, the day Karsch was arrested, QMT held a special meeting of the Board to accept his resignation as a director and remove him as General Counsel and Secretary.

QMT had no prior knowledge of this situation. The Board has examined the situation and believes that Karsch has had no adverse affect on QMT business, policies or procedures. An appropriate SEC filing will be made within several days on this matter outlining the above.

Thank you for your very legitimate inquiry into this matter.

Best regards,

Mike

Michael R. Granito
Chairman of Quick-Med Technologies, Inc.
mgranito@quickmedtech.com
212 686 0960
212 679 3982 fax
www.quickmedtech.com



-----Original Message-----
From: jurisper@hushmail.com [mailto:jurisper@hushmail.com]
Sent: Friday, October 03, 2003 1:42 AM
To: mgranito@quickmedtech.com
Cc: mpitsokos@quickmedtech.com
Subject: Michael Karsch

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

Hi - I assume that the Karsch who signed your recent as 10-K as general counsel is the same Karsch who was named as a defendant this week in SEC vs 2DoTrade et al. I appreciate that this will not have been a pleasant circumstance for Quick-Med but nevertheless would be interested in any response you could provide to a couple of questions:

- - Are you planning on making a public announcement about this matter?

- - What is Karsch's status with Quick-Med now? I notice he has been removed from the director list on your Web site.

- - Where you previously aware of easily-discoverable and perhaps dubious elements in Karsch's history? For example, his effective dismissal from US Diagnostic in 1997 for some form of involvement in the the Greemberg affair.

- - What role did Karsch play in the reverse merge transaction in 2000?

Tks.


 

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