I am doing due diligence on the following companies and individuals associated with these companies. I would appreciate any information you may have:
Arabian Recab for Trading Co. Ltd. Recab International, Inc. Patrick J. Lochrie a/k/a "Pat Lochrie" Mohammed Galani, a/k/a "Mohammed Gilani" Amenni, Inc., Bioceutics, Inc. Nutrapharmx, Inc. The Mix Group of South Florida, Inc. John V. Firo NASD CRD# 4654582 Robert O. Brewer NASD CRD# 4654521 Talon Holdings, Inc. NASD CRD# 126778 Nannaco, Inc. Reality Wireless International, Inc. Firefighters National Trust Steve Careaga David M. Otto
Post here or email me via ALLSTOCKS. All replies kept confidential if you desire.
Posts: 7 | From: Bentonville, Arkansas | Registered: Jun 2006
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Move over James Bond: FBI Issues the UK's Patrick Lochrie a "License to Steal"
by J.D. Capehart
BENTONVILLE, Arkansas (ACNN) June 20,2006 - For decades, movie lovers have thrilled to the escapades of British spy James Bond. Licensed as “007.” Bond traveled the world, usually just one step ahead of the featured evil force, and always escaping death only by the skin of his teeth.
In the real world though the grit of life is rarely as glamorous. Witness the case of U.K. national Patrick Joseph Lochrie, born February 18, 1955 under a gloomy Irish mist, Lochrie moves in and out of the shadows of U.S. federal agencies who pay him to be “a dealmaker” according to several of his recent victims. While working either for or with the FBI, Lochrie has participated in a massive securities fraud spanning two continents.
As recently as May 10, 2006, Little Rock based FBI Special Agent Michael T. Patkus told a Rogers, Arkansas attorney that Lochrie was “law enforcement.” In a taped voice mail message several days later, Patkus told a businessman that Lochrie was “a federal agent.” Considering Lochrie’s business dealings publicly disclosed since 2003, Lochrie appears to be a man that the U.S Federal Bureau of Investigation has “licensed to steal.”
Lochrie’s involvement with the FBI is now apparently worrisome to the bureau. When U.S. Justice Department officials learned that inquiries were being made about Lochrie by the media, both Patkus and a U.S. Justice Department Criminal Division attorney Peter Loewenberg, based in Washington D.C., immeditaley contacted a Houston attorney, Charles Portz, and asked him to relay a message: if there were any more inquiries about Lochrie, reporters would be immediately arrested and jailed on "federal charges."
Both Loewenberg and Patkus remained unavailable for comment prior to publication. Inquiries to the FBI in Little Rock, Arkansas, where Patkus is based were not responded to. Earlier published reports from other publications said their Little Rock inquiries were referred to the Justice Department in Washington, D.C. Sources familiar with the apparent extortion try say the pair of Justice department employees are themselves now under internal scrutiny by the Justice Department.
The Justice Department's "Misfortune 500 Companies" . . .
Loewenberg is assigned to the Criminal Division in Washington. Sources there are mum about his duties other than to say he is a “trial lawyer.” Recently, Loewenberg left a message on his office voice mail describing him as "out of the office for the week, traveling with the team.”
The “team” as Loewenberg describes it apparently includes Lochrie. It is Lochrie’s extramural activities that prompted Arkansas Chronicle to investigate what appears to be a federal or FBI agent traveling the world engaging in phony business transactions and securities fraud, all the while supposedly investigating the same.
Loewenbergs team includes not only Lochrie but a large number of federal agents in Florida who operate over a dozen Florida corporation from a separate mail drops. The fake companies Include:
u The Mix Group of South Florida, Inc.,
u Profundo Enterprises, LLC
u Phoenix Financial Consultant Services, Inc.
u Southern Star Shipping, Inc.
u Cabo Rojo Trading, Inc.
u Leeward International, Inc.
u C.R.S. Consultants, Inc.
u Transeuro Holdings, Inc.
u Amerivest of South Florida, Inc.
u Noble Enterprises of South Florida, Inc.
Of the group of companies, telephone numbers are scant and obtained only rarely from Florida corporate records. "Noble Enterprises" and “Dianne Williams,” have a working number but calls placed there were not returned.
A federal agent interviewed by phone in May, 2006 who is associated with C.R.S. Consultants, Inc., uses the name “Vincent Parrolli.” He confirmed the involvement of one of Lochrie’s FBI associates, John V. Firo, (an alias) in the operations of “The Mix Group of South Florida.” That is a firm that Firo fraudulently represented in a signed "Broker Engagement Agreement" with Arkansas business executives as being a member of the National Association of Securities Dealers, Inc. Oddly, Firo was listed at that time as a registered representative of a NASD member firm, Talon Holdings, Inc.
Lochrie was present at meetings held in Arkansas in March and May, 2006, according to a civil court case naming Lochrie as a defendant. The suit seeks damages for claims of securities fraud and theft of trade secrets. The lawsuit, filed in late May 2006, names “Firo,” as well as Lochrie and a third “Loewenberg team member calling himself Mohammed Galani. The NASD is also named as a defendant as the result of its creation of “fake brokerages” that led to the injury of Rogers based Shimoda-Atlantic, Inc., a small pharmaceutical company targeted by Lochrie.
The suit claims that not only did the NASD create fake brokerages, they published false and misleading information to the general public about the brokerages over a long period of time. When confronted, the NASD tried to cover its tracks by altering its "BrokerCheck" database which it encourages the general public to use as a means of "checking out" a broker or a securities representative. NASD erased Firo, Talon Holdings and other records, but not before reporters, including a Wall Street Journal reporter, managed to download copies.
Lochrie's Changing Story . . .
As Lochrie’s ties to the FBI were revealed, his story morphed. When Dow Jones reporter Carol Remond tracked Lochrie down by phone, he reportedly claimed that he was some sort of private investigator that had been hired to perform “due diligence” on the Arkansas firm, on behalf of some as yet unidentified investor. According to Lochrie he notified the FBI about his findings and then the ruckus ensued. But Lochrie’s claims clearly don’t match up with exhibits filed in the lawsuit he’s named in.
For example, one exhibit is an e-mail from John V. Firo, in which he touts a “CRD#” issued to him by the NASD. The e-mail, sent on April 4, 2005 to Shimoda-Atlantic is clearly a “cold call,” one in which Firo introduces himself and seeks to do business with Shimoda as a stockbroker. The email is obviously a “first contact” and makes no mention of Lochrie. And Lochrie had no contact with the victim company until nearly a year later.
At the time of the Firo e-mail and up until at Least May 16, 2006, Firo was affiliated with an Addison, Texas based corporation called Talon Holdings, Inc. Until sometime after May, 16, 2006, Talon was registered with both the SEC and NASD as a broker-dealer, licensed to do “private placements” and to trade securities for its own account.
Talon at the time has headed by its registered principal, one Mr. Robert Bettes, who held a NASD registration under the alias “Robert O. Brewer.” Although Bettes retired from the FBI on September 30, 2004, months before Firo first contacted Shimoda, Bettes continued to hold the NASD credentials, and in a New Mexico federal court case Bettes testified in, he was signing checks on Talon’s bank account long after he left the FBI. Delaware Secretary of State records show that Talon was duly qualified to engage in business during that period through the present.
It was Firo, according to Shimoda’s suit, who brought Lochrie to Bentonville, Arkansas in late March, 2006 and introduced him as his “foreign partner. On May 9, 2006, the pair returned to Bentonville, Arkansas, this time with a fictional “Arab investor” in tow. When they registered at the Embassy Suites, all used fake addresses. Lochrie used a “mail drop” in London that proved to be the key to unraveling his past, according to Shimoda’s lawyer.
The address used by Lochrie is associated with a cluster of companies that Lochrie has operated in association with David Carruthers of London. It was from there that Lochrie appears to have launched an ambitious securities fraud scheme spanning two continents and defrauding investors through a series of penny stock pump and dumps orchestrated from a law office in Seattle, Washington.
License to Steal . . .
Lochrie’s apparent “license to steal” has also enabled him to manipulate the publicly traded securities of two public companies: Reality Wireless International, Inc., which recently changed its name to “Recab International, Inc.” (ticker:RCAB) and Nannaco, Inc., (ticker: NANN). Nannaco is presently reported to be in negotiations to acquire a radiation oncology related business.
If nothing else, Lochrie’s imagination is worthy of James Bond screenplays. On August 11, 2005, Lochrie planted a press release headlined, “Amenni, Inc., Merger Partner of Nannaco, Moves into $1 Billion Pain-Killer Marketplace.”
In that news release Lochrie touts a company he calls “Amenni, Inc.” Supposedly Amenni is a multinational pharmaceutical/nutraceutical powerhouse with operations in London, Zurich, and Saudi Arabia. “For 2004, Amenni's combined revenues exceeded $3 million. Amenni anticipates generating more than $6 million in 2005,” claimed the release.
What Lochrie did not tell investors, however, was that Amenni was merely a paper shell, created by him and a Maryland investor he had recruited. Amenni, according to Maryland corporate records, was first known as Bioceutics, Inc. It changed its name to Amenni, Inc., briefly, then back to Bioceutics. Lochrie domesticated Bioceutics, Inc. in Florida listing another associate as an officer: Dr. David P. Summers, formerly of Endovasc, Inc. (ticker: EVSC).
According to Endovasc officials, starting in 2003 Lochrie and Summers worked together to structure a series of transactions that eventually led to the Endovasc board firing Summers and suing him. Summers, without board approval, issued 750,000 shares of Endovasc common stock to a Florida promoter named Andrew Murphy at the direction of Lochrie. The shares, according to Endovac’s Dwight Cantrell were immediately dumped on the market and the cash reportedly was given to Lochrie to finance his planned expansion of Amenni, Inc. into Europe. Summers eventually agreed to make good on the loss to Endovasc, according to the company.
Cantrell said the arrangement with Lochrie came to a halt when Endovasc officials learned that Lochrie was touting Endovasc products as Amenni products on an internet website Lochrie controlled. Among the Endovasc products Lochrie claimed were made by Amenni were Liprostin and Prostent.
While Lochrie was busy working U.S. companies and investors, his long-time London-based associate David Carruthers was busy contacting U.K. companies and trying to create the impression of an aggressive Amenni expansion.
One of the first of the U.K. targets was a company called IMBT, headed by Christopher Leonard. Contacted by phone, Leonard described a series of telephone meetings in 2003 with Carruthers that led eventually to his traveling to London to meet with Carruthers and sign a deal.
“They offered me £10,000 to give them a ninety-day option to purchase an interest in my company." While in the London meeting room leased by Carruthers and Lochrie, Carruthers got Lochrie on the phone with Leonard. “I thought this was the answer to my prayers,” said Leonard. “I was thrilled that finally my research projects could go forward and the company would have all the capital it would need to be a commercial success.”
Leonard’s joy was short lived. “The money was wired to my account the next day,” Leonard said. But after that, neither Lochrie nor Amenni produced anything except a press release claiming Leonard’s work and products as their own. Leonard said he was jarred by the resulting press release he found on the internet within a few days, entitled, “Amenni Signs Letter of Intent to Acquire Premier Research and Development Firm.” The October 4, 2005 press release claimed that Leonard’s products would be on the market in the 4th quarter of 2006, as Amenni products, but not IMBT’s. Leonard said the transaction he agreed to merely gave Amenni an option to perform due diligence for 90-days, during which he agreed not to sell an interest in IMBT – hardly the acquisition being touted by Lochrie and his Seattle partner, Steve Carreaga.
Carruthers, while wooing Leonard, told him that Lochrie has deep ties to Bentonville, Arkansas based Wal Mart. Lochrie was described as making trips to Japan to close a nutraceutical deal that would result in huge amounts of cash rolling into Amenni.
Leonard says that Carruthers and Lochrie have both avoided his phone calls for months now, and have never cleared the records about the status of Amenni with IMBT.
Leonard was not the only English company lured into Amenni’s web with “Wal Mart tales.” Tony Chandler and Keith Bowhill, managers of a London company called Omni Nutraceuticals, say that Carruthers regaled them with the same pitch Leonard received. Omni is one of several companies under common ownership. Other companies are Iceni and Bionovate.
“Carruthers also told us that his U.S. partner Patrick Lochrie was a federal agent of some sort,” said Chandler in a telephone interview. Chandler recalls that Carruthers said Lochrie was a “deal maker” for both the FBI and the U.S. Treasury.
While touting the Wal Mart connection, Carruthers also introduced at one point a person described as an Arab Sheik named “Abdullah.” Supposedly, Chandler and Bowhill’s company was being used to induce the Sheik to invest in Amenni. Chandler said from the outset the pursuit of their company by Amenni struck them as odd.
“Lochrie became very upset that we declined to accept stock in a company called Nannaco in lieu of cash,” said Chandler, describing the first efforts of Amenni to obtain a 90-day due diligence agreement with Omni and its affiliates. Eventually, Omni was given cash.
Like Leonard, Chandler and Bowhill quickly learned that Lochrie and Amenni were touting Omni and related products on Amenni’s website as its own product line. The amenni.com website quickly went even further, suggesting in fact that the companies had already been acquired and were actual subsidiaries of Amenni. When Chandler questioned Carruthers about the claims he was told to “play along.”
“We were told that Amenni needed our cooperation in presenting the appearance that Amenni had completed the transaction, so that they could get the Sheik to invest,” said Chandler.
Bowhill and Chandler say they became very upset over the course of events, and as they voiced their suspicions – probed for more details, Lochrie and Carruthers became abrasive. Eventually, Lochrie and Carruthers demanded that Omni give back some of the funds they had advanced and threatened to sue. When a portion of the funds were returned, Lochrie and Carruthers vanished, but never ran a press release describing the failed transaction.
Internet Fraud Aided Amenni Scams . . .
In October 2004, the Amenni website home-page reflected a patently false claim, “We are an Investment company predominantly focused on Healthcare. . .
Currently we have three subsidiaries. Omni Nutraceuticals - United Kingdom
Iceni - New Zealand, Bionovate - United Kingdom.”
While the Amenni website was singing the siren’s song to would-be Nannaco shareholders, Nannaco insiders were hurriedly minting and then dumping hundreds of millions of shares on an unsuspecting public market.
Nannaco, Inc. traded on the NASD “OTCBB” system until it was delisted this year for failure to meet SEC audit and filing requirements. Since then it has traded on the PinkSheets.
Between September 30, 2003 and September 20, 2005, Nannaco filed 25 S-8 registration statements with the U.S. Securities and Exchange Commission. Form S-8 is a short-form registration for securities to be offered by a fully reporting company to its employees as part of a compensation plan. SEC rules allow, under certain circumstances, S-8 shares to be issued to consultants performing certain types of services. SEC rule 405, however, prohibits the issuance of S-8 shares by a company as part of a plan to raise operating or expansion capital.
It was S-8 shares that Lochrie squeezed out of Endovasc to funnel to his associate Andrew Murphy – shares which resulted in Lochrie being able to play games with the British companies he targeted as part of his Amenni scheme. Huge numbers of shares dumped on the penny-market almost always has the effect of driving down the share price.
To offset the dwindling bid price, Nannaco’s CEO, Steve Carreaga, a former volunteer fireman and reserve police officer in Washington state, set about to “reverse split” the rapidly diluted shares on four occasions while the S-8 stock was being dumped.
Carreaga announced reverse splits for Nannaco that resulted in staggering dilutions to Nannaco’s non-affiliate shareholders. On October 18, 2004, Carreaga diluted the shares at the rate of 1 to 100. Then he diluted the shares again at the rate of 1 to 40 on January 3, 2005. As the S-8 share dumping reached frenzy, Carreaga had to announce a final dilution, this one a massive 1 to 400 split on September 20, 2005 – the date of the final S-8 share registration.
Throughout that entire period Nannaco and Amenni continued to release a series of breathtaking press releases, all while professional stock touts were hyping NANN shares on venues like SiliconInvestor and RagingBull.
Steve Carreaga was a busy man on September 20, 2005. In addition to reverse splitting Nannaco’s shares, and issuing an additional post-split 15,000,000 shares to a number of affiliates and insiders. Those receiving shares included Seattle lawyer David M. Otto, who received 5,000,000 shares of the September 20 issue.
Otto’s services, as described in the September 20, 2005 S-8 registration statement were “legal services.” Indeed, Mr. Otto’s firm, the Otto Law Group was also busy on September 20, 2005: that was the day the Carreaga’s deposition was being taken in a case styled “Haines v. Reality Wireless Networks, Inc.”
From that deposition comes a clear picture of how publicly traded companies that are allowed by the SEC and state regulators to dump hundreds of millions of shares on an unsuspecting public, all while having only a mail drop for an address and no business activity whatever.
Nannaco is not the only public-company associated with Otto, Carreaga and Lochrie.
Reality Wireless Networks, Inc. is a publicly traded company, now known as “Recab International, Inc.” (ticker: RCAB). On September 20, 2005 it was the focus of a quarter-million dollar judgment resulting from a civil suit in Washington state.
Carreaga initially testified that his only employment at the time was as CEO of Reality Wireless Networks, Inc. When pressed further, he told Seattle based attorney Bruce Danielson that he had a small consulting business, CDF Consulting, LLC., that he ran from his home. He concealed, however, the fact that he was also CEO of Nannaco.
Being the CEO of Reality Wireless, according to Carreaga’s deposition, presented its own unique set of challenges. Although he wasn’t completely sure, Carreaga testified in response to the question: “Who is the president,” as follows: “I don’t believe we have a president.” He did know who the Secretary of the company was though: David M. Otto. He also testified that all of the books and records of Nannaco were kept in Mr. Otto’s law offices. While the books and records had a spacious environment, the rest of Reality Wireless was relegated to a mail drop according to Carreaga’s deposition.
Like Nannaco, Reality Wireless had an aggressive press-release program timed to resonate with the S-8 “registration of the month” program. The press releases that had been regaling the public turned out to have been prepared by “Bartholomew Investment Company.” That firm also received large blocks of Nannaco stock, presumably for preparing the Lochrie/Amenni press releases for Carreaga’s signature.
Prior to his involvement with Reality Wireless, Carreaga testified that he was the Executive Director of Firefighter’s National Trust, a supposed “non-profit.” The non-profit’s Secretary was, not surprisingly, David M. Otto. Founded just one month before the 9/11 tragedy, Firefighter’s National Trust had a massive internet presence by the time of the tragedy and raised over $9,000,000 dollars in donations in just nine months. Over five-million dollars was later recorded as “expenses” by Otto and Carreaga for that same period in a report filed with a state agency. The report does not describe in any detail just what those expenses entailed. The trust failed to meet its reporting obligations to a number of states, including Arkansas, and eventually fell off the radar of regulators, never to be heard of again. Its phones, offices and website and assets simply disappeared.
Carreaga testified that he relies heavily on his corporate Secretary. His deposition testimony was that Otto made all of the decisions for Reality Wireless. Carreaga did not know if there was a checking account but said if there was, Otto’s office had the checkbook.
Carreaga’s deposition resulted in his disclosure of a potential merger between Reality Wireless and a company he called Arabian Recab for Trading Co., LLC.
On November 21, 2004, arabnews.com carried a report that an Abdullah Al-Bajadi Al-Shahrani, of Arabian Recab for Trading had signed a deal to “acquire 30 percent of the share capital of Amenni, which is a pharmaceutical and nutraceutical holding company with three subsidiaries. The subsidiaries are Iceni Animal HealthCare, Omni Nutraceuticals and Bionovate R&D, with distribution throughout Europe and the United States.”
Repeated attempts to locate Abdullah Al-Bajadi Al-Shahrani, in Saudi Arabia were fruitless.
Fifty Total S-8 Registrations Yield Hundreds of Millions of Shares . . .
As is the case of Nannaco, Reality Wireless filed 25 SEC Form S-8 registrations between May 20, 2002 and September 1, 2005. The last S-8 registered 112,500,000 shares of common stock. Before that, on July 21, 2005, some 224,000,000 shares were registered. The month prior, 112,500,000 shares were registered. Yet, on June 20, 2006, Reality Wireless, which has changed its name to “Recab International, Inc.,” was reporting to PinkSheets that it had only 996,280 shares issued and outstanding as of May 15, 2006. Nannaco’s most recent “reverse split” was a 500 to 1split.
Recab is now operating out of a mail drop located at 110 Broward Blvd. Suite 1700, Fort Lauderdale, FL 33301, an “address” that the business owner says is rented to Patrick J. Lochrie.
Lochrie and Carreaga recently announced a “completed merger” with Recab International, Inc., a Nevada corporation, on May 23, 2006. Despite a SEC regulation requiring a report of a material event, Recab never filed any report on form 8-K with the SEC. Neither Reality Wireless nor Recab have ever filed with the SEC to be relieved of the obligation to file periodic reports. Reality Wireless has not filed audited financial information with the SEC for over a year.
What Recab and Lochrie did do, however, is manage to place a link on the PinkSheets.com website to an internet address that purports to be hosting an “audited financial statement” for Recab.
Immediately following the merger announcement, Lochrie launched two rapid-fire press releases. The first claimed that Recab had just won a $20 million dollar contract to install a water line in Saudi Arabia. The next release claimed that Recab would have revenues in excess of $4.7 million dollars in its first quarter. Despite the glowing news and a massive reverse split that briefly spiked the stock at over a dollar a share, Recab has fallen steadily under heavy selling pressure.
FBI: "No comment" . . .
Neither the FBI nor the SEC would comment on Lochrie’s activities. A Florida investor with over $200,000 invested in Lochrie’s Amenni expressed complete surprise upon learning that Lochrie was working either for or with the FBI in some sort of apparent “undercover” capacity. Lochrie had apparently showed the investor several products that he represented were manufactured by Amenni. A Florida state securities investigator speaking on background suggested that Amenni was known to regulators but state officers at her office were given a “hands off” message over three years ago. Washington state securities regulators were unaware of Amenni when contacted.
John Dodge, the Rogers, Arkansas lawyer for the company suing Lochrie, said his client had told him it intended to seek criminal prosecution of Lochrie for securities fraud and theft of the company’s trade secrets. “I don’t know how successful they will be.” He said that Lochrie and his associates had obtained a significant amount of trade secrets including a strategy for conducting early stage clinical trials of a prescription drug the company manufactures. “They also obtained complete marketing plans for the company’s nutraceutical product line as well as the formulations,” Dodge added.
On June 16, 2006, the NASD filed a notice that it was removing it’s part of the case in which they are co-defendants with Lochrie, to federal court in Fayetteville, Arkansas.
A securities law firm in Los Angeles familiar with the litigation said several “mass tort” firms are now carefully reviewing the NASD federal suit to see if it should be expanded to a federal class action suit on behalf of persons and businesses that unknowingly sent the FBI their personal and business financial records. Another firm is exploring the possibility of a class-action suit for injury that the NASD may have inflicted on small brokerages. About 85% of the NASD membership are small businesses who may now be forced to devise strategies to prove to new or potential customers that they are not FBI front companies.
The attorney speaking for the firm said she believes that over the years they operated, a large number of people saw the fake FBI websites at www.theinvestment-group.com and www.talonholdings.com . “They solicited everyone from retirees seeking to enhance their pension income to small businesses seeking expansion capital. People were thinking they were dealing with a stock brokerage and probably sent the FBI their private records.” The lawyer said her understanding is that the FBI would have been violating federal law in operating websites of that nature.
When Talon’s phone number was called, a homemade recording attempted to convey the message that the number had been disconnected.
When “The Investment Group” number in Dallas was called it was answered by a live operator.
Lawyers say that a decision on intervening in the new federal NASD case could come as early as the end of June. If expanded to a class action suit the NASD could face the possibility of seeking federal bankruptcy protection, according to a former NASD lawyer now in private practice. NASD declined comment on all matters.
J.D. Capehart in Los Angeles with Tom Winters in Little Rock and Bentonville, Arkansas.
This posting would be hilarious if it were not so obviously nefarious in nature (by the article's author, not the poster)...
To begin with, this “article” is written by J.D. Capehart on behalf of the Arkansas Chronicle. The Arkansas Chronicle is located at www.arkansaschronicle.com and is owned by Sienna Broadcasting Inc. (more on Sienna in a moment).
Interestingly, although the website purports to be a news publication, the ONLY stories one can actually link through to are the article on Lochrie and an “objective” news story that addresses the supposed links between the Arkansas Attorney general and a short selling attack on….Sienna Broadcasting (the site does NOT disclose that Sienna is the owner of Arkansas Chronicle).
Sienna Broadcasting was formerly a public company…they have a checkered past, including:
The Springdale penny-stock company (Sienna) was evicted and sued for slander (by a REPUTABLE publishing organization – the Arkansas Publishing Group which publishes Arkansas Business).
Delisted from the OTCBB (and no longer even on the Pink Sheets) – not as a result of some short manipulation but after published reports that their acquisition of a broadcasting company were not going to be consummated caused the company’s stock to implode coupled with their inability to file SEC reports.
All of the nonsense reported on message boards has been as a result of this ONE article published by J.D. Capehart in the “Arkansas Chronicle” aka Sienna Broadcasting. This is clearly a SMEAR job on the part of SIENNA
J.D. Capehart is the supposed author of this article…a Web search will reveal that, other than this “article” J.D. Capehart has not published anything (including in the Arkansas Chronicle) – in other words, this individual is likely either (a) a false name or (b) not a professional journalist!
This should make it clear that this one “article” is from a source that has no credibility with a checkered past, to say the least.
The article purports to be replete with specifics, but when it claims that a Special Agent Michael T. Patkus claimed that Patrick Lochrie was “law enforcement” and a “Federal Agent” it fails to identify either the attorney or the businessman to whom “Patkus” supposedly made these claims – so there is no substantiation whatsoever. Furthermore, Capehart did NOT speak to Patkus. In fact, if the “article” is read carefully, it is clear that Capehart did not speak to ANYONE at the FBI or Justice Department. It is questionable as to whether Patkus or Lowenberg (from the Justice Department) are real individuals and, if so, whether they have ever addressed the issue of Lochrie in any manner whatsoever. This claim is a house of cards held together by carefully chosen language on “Capehart’s” part.
Likewise with the incredibly confusing set of claims that revolve around the supposed FBI and Justice Department conspiracy (including Lochrie) in regards to a joint task force that travels the world creating false companies for some supposed nefarious reason. The core of this claim seems to culminate in a conflict that Shimoda-Atlantic Inc. has with the NASD. It appears that Shimoda Atlantic may, in some way, associated with “Capehart” and Sienna and has a grudge against Lochrie. In fact, Shimoda Atlantic is supposedly suing the NASD – though the case was to be heard on June 30 and, unsurprisingly, there has been no update about its status from “Capehart.”
Also posted on www.pinksheets.com is an audit of Arabian Recab Trading – the wholly owned Saudi subsidiary of Recab. Despite “Capehart’s” claims, this is a real audit. It presents 2004 and 2005 financial statements from AlAzern, AlSudairy & AlNemer, CPAs and International Affiliates of Horwath International (www.horwath.com). This is a reputable firm (the CPA license # is even listed on the audit) and a legitimate financial statement. Among other things, the financial statement shows 2005 revenues in excess of $14.7 million (http://www.pinksheets.com/quote/finance.jsp?symbol=RCAB). Despite “Capehart’s” claims, this is not a “link on the PinkSheets.com website to an internet address that purports to be hosting an “audited financial statement” for Recab” – in fact, the Company submitted these reports and they are held on the Pink Sheets website!
Recab’s stock has fallen, it is true, as often happens after a reverse split. “Capehart” claims the stock has fallen under heavy selling pressure – in fact, over the last six plus weeks, Recab has traded an average of LESS THAN 20,000 shares per day – LESS THAN $6,000 OF AVERAGE DAILY VOLUME….ONCE AGAIN, “CAPEHART” HAS DELIBERATELY DISTORTED THE FACTS.
Perhaps the most telling information is in the “article’s” concluding paragraphs…Note that there is no comment from the FBI or SEC – of course this is presented as nefarious, but it is simply because there is nothing to comment on. One of Lochrie’s investors expressed surprise when “informed” that Lochrie “was working either for or with the FBI” – of course this individual expressed surprise, as there is no evidence that Lochrie works for or with the FBI…One wonders where the evidence is - has "Capehart" substantiated this by presenting any hard proof that Patrick Lochrie has been served in a lawsuit? subpoenaed by any law enforcement agency? Or, in fact, any hard evidence whatsoever?
The conclusion seems clear – we have one individual (supposedly J.D. Capehart) that has published an article without substantiation of claims and allegations on a website that is suspect, owned by Sienna Broadcasting (who does not clearly disclose their ownership) – an entity with a history of legal and regulatory difficulties. THE ONLY SOURCE OF THIS INFORMATION IS THIS ONE POSTING – NO OTHER NEWS AGENCY HAS PICKED THIS UP, AND THE ONLY POSTINGS ARE SIMPLY REPRINTS OF “CAPEHART’S” POSTING. It is quite obvious that this a “hatchet job” designed to cause difficulties for Lochrie and Recab.
Posts: 4 | From: Manhattan | Registered: Jul 2006
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A fair question. I'm holder of stock, certainly and have no problem revealing that. My core issue is that "article" is irresponsible at best - your point about disclosure should also be turned upon both the poster and the "author" of that little piece of fiction.
It's my belief that Recab is a real company (the accounting audits are certainly compelling in my mind. I may be wrong and this may not be a great investment - but to attack it via innuendo and unsubstantiated claim as done by "Capehart" (in a publication whose disturbing history I detailed) i unacceptable.
I've found the same pattern of a "due diligence" inquiry followed by the paste of this article on several other message boards...it's telling that often (as in this instance) the poster that asked the question about due diligence mysteriously turned up shortly thereafter with a piece answering all his due diligence queries...
Posts: 4 | From: Manhattan | Registered: Jul 2006
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By the way "debubker." What happened to the Endovasc shares? 750,000 shares dumped. Do you really think EVSC shareholders, you know, the ones that actually paid hard earned money for them are ever going to forget that. Forget about the messenger - lets talk about the message - the dates, times, places, events. Care to address any of that?
Posts: 7 | From: Bentonville, Arkansas | Registered: Jun 2006
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Debunker - wondered if you had any thoughts about the arrest of David Carruthers in the US. ROFLMAO. Guess it's kind of hard to put out a PR when the U.S. Marshals won't let you use the phone or the computer.
Posts: 7 | From: Bentonville, Arkansas | Registered: Jun 2006
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It's so obvious you have a hard on for this company and are willing to use non-factual information at any opportunity. The David Carruthers that was arrested is the CEO of an online gambling site - NOT the same individual that is COO of Recab....
Posts: 4 | From: Manhattan | Registered: Jul 2006
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