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GNIN Stock Fraud - Bank Gutenberg AG and Daniel Weinmann
Rupert.Muller
Posted: Sunday, February 17, 2013
Joined: 2/17/2013
Posts: 3


 My name is Rupert Muller from the town of Roll, Bavaria.


I have been provided with information that may be pertinent to Investors in GNIN a USA orchestrated Stock Scam. The group behind this fraud are the same group that orchestrated: PUNL, IDNG, and others. 

They operate a scam under the following websites:

http://www.brightonmarkets.com

http://www.equityleader.com

http://equitymarketsinc.net

http://globalequityalert.com

http://www.marketfoundations.com

http://www.breakoutfinder.net

http://www.risingsunreport.com

http://worldstreetfundamentals.com

http://www.marketfoundations.com/

http://nationaltradersassociation.org/

Read these two links to see first hand accounts of  investors being scammed by this outfit:

http://www.ivetriedthat.com/2012/10/31/pump-and-dump-stock-scam-alert-bollinger-report/

http://800notes.com/Phone.aspx/1-646-389-1924

The way this group works is by operating phone rooms where high pressured sales tactics are used to place phone calls to investors referring them to the following websites. The phone calls are followed by emails sent to potential investors daily. In all cases the company that is being promoted is of no value and the group controls the trading through manipulative methods. 

Members of the group are of Canadian origin but have relocated offshore for the purpose of engaging in these schemes. The group is served by Gutenberg Bank AG in Zurich, specifically Daniel Weinmann, Marc Peter, and Maria Zaffaroni. The group proceeds to setup a BVI or Panamanian Corporation with a Trustee (making the ultimate beneficial owner anonymous). That corporation then sets up a bank account with Gutenberg in Zurich. The group then arranges for free trading share certificates to be sent from the transfer agent of the company to the Bank and sign the back of the certificates allowing the Bank to deposit the shares into their global custody account.

Gutenberg maintains whats known as a Custody account with a large US Institution. This allows the group to skirt the DTC chills and various enforcement mechanisms in place. By depositing the shares with such a large custodian they come across as legitimate and do not set off any alarm bells at DTC.

Additionally, Gutenberg under the instructions of its clients opens what are known as Delivery vs. Payment (DVP) accounts at the following US Brokerage Houses:

1) The Vertical Group 
2) Finance 500 Inc. 
3) Spartan Securities 
4) Agis Capital
5) Vandham Securities
6) Ascendiant Capital

The multiple accounts are integral to the scheme as it allows the Bank to circumvent US securities regulations when they deposit over 5% of an issuers shares. In all cases these frauds are orchestrated with complete control of the freely trading shares. Gutenberg also facilitates the manipulative trading that allows the group to maintain control of the stock fraud while it is being promoted through the phone rooms and emails. By maintaining separate DVP accounts Gutenberg can have different brokerage houses on the bid or ask as the brokers (wink wink) don't really know what they are doing. This gives the brokers whats known as plausible deniability when regulators come in after the dump and ask "what were you doing there? to which the answer is undoubtedly: "I was just taking DVP orders".

By doing it this way Gutenberg allows the group like to sell shares through The Vertical Group and buy shares through Finance 500 (at the same time) in direct violation of section 10b5 of the US securities regulations.

The individual who acts as an intermediary between the group and the US brokers is Daniel Weinmann - Head of "Trading" for Bank Gutenberg in Zurich. 

http://ch.linkedin.com/pub/daniel-weinmann/32/428/791/en

Weinmann is fully aware of what he is doing and that these activities are illegitimate. As a matter of fact there are certain elements of Bank Gutenberg which indicate that the entire bank has been setup in order to orchestrate these types of frauds while shielding the identifies of the various fraudulent groups involved.

Visiting the Gutenberg website we see some unusual services provided to clients:

http://www.bankgutenberg.ch/en-gb/services/private-clients/trading.aspx

These are very unusual services for a tiny bank (CHF~46 mln in Equity Capital and CHF~100 mln in deposits)

The first sentence states "access to OTC Markets" - Why must one travel all the way to Zurich, Switzerland to access US OTC Markets?
The third sentence states: a "Night Desk to trade North American securities" - Why does such a small bank with only 100 mln in deposits need a dedicated night desk to trade North American securities? surely if legitimate exchange listed securities are being traded then they could setup an electronic pipe to one of the main banks. Why is so much care required?  

The answer is that Bank Gutenberg's desk has become a sophisticated operation that allows groups like the Canadians behind GNIN to deposit and liquidate US OTC share scams and then move the illicit proceeds out once they are done.

Gutenberg's public financial disclosure brings to light even more questions: http://www.bankgutenberg.ch/media/39101/cat%20group%20ag%20annual%20report%202011_e.pdf

Page 8: Balance Sheet -  A bank balance sheet consisting only of cash and liquid investments is rarely seen in the industry and makes little sense. A Bank is supposed to attract deposits and lend them out for a fee. Not is the case with Gutenberg. 

Page 9: Having nearly no earning assets does not appear to be a requisite for Gutenberg to earn 60-70% returns on its capital.  Income being derived from Trading Commission and Securities Transactions: $27 Million Dollars in 2011 and almost $30 million in 2010. This represents a return on equity for Bank Gutenberg of 60% in 2011 and 70% in 2010 respectively. In other words Gutenberg is the most profitable bank in the world on an return on equity basis. Moreover Gutenberg paid out $15 million in each of those years (nearly 100% of the net income) to its 19 employees.

As yourself how a little bank in Switzerland with only $47 million in capital and only 19 employees can be generating so much in trading commissions. Clearly something is off.

Weinmann is the man that stays up late in Zurich in order to manipulate OTC stocks on behalf of its clients, under the "protection of swiss bank secrecy" and I believe he is the man that is earning the lions share of that $15 million a year in compensation. 

This information along with other key information I did not disclose here has been forwarded two weeks ago to the FBI, Department of Justice, US SEC, Bafin, SFBC, DTC, and the US brokerage houses compliance operations. As such I believe some action is being taken in short-order.

The estimates of total funds stolen from investors exceeds $300 mln over the past 5 years.

Signed,


Rupert Muller

 

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