quote:Originally posted by Bittermac: Source, The SEC has taken this to court to force RPH to prove ownership, which he refused to show them. Also, to explain the contractual relationship with Duetsche Bank. Read the doc, its in black and white. You want to hope for the worst, go right ahead, just don't mis-state the facts. As to your other reference to the SEC having proof of RPH commiting fraud? What evidence are you talking about? Or, once again, is that your opinion that you want to present as fact?
I second the nomination for the Tiny Brain award.
Brother I don't hope for the worst but when you are getting bombed and everything around is falling down , the last thing you want to do is burry your head in the dirt thinking it will be peachy in a little while . This is no longer a game of cat and mouse , I don't have monolopy money invested in this and quite frankly am tired of everyone thinking this was all in the master plan all along . If Rufus can't even get the correct paper work filed on time with the SEC , what the heck makes anyone on here think he will be on the ball this time ???? And why at this point in the game would any investor risk their own or customers money in this game of see who has the bigger balls .
-------------------- ----- Game Over -----
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posted
This is an "UPDATE" post for people who don't want to go back & read through a ton of pages. I will summarize what has happened since this late afternoon, 10/25.
This is the update as of the timestamp on this message..... ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
-There has been no PR as of yet...
-Tut has posted 2 times about 45 minutes apart regarding phone calls he has had with Ben...1 call was towards the end of court & the other call was after court. These posts are on page 53 of this thread.
- Rumors were circulating on HSM that CSHD was victorious - BUT again JUST A RUMOR...
- Saul, from M N 1 was on SubpennyRadio again tonight - (I got this from Crab's posts - thanks Crab) Nothing of importance was said by him, of course. He still believes Rufus is a fraud. I think Simon still was unimpressed by him. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
That's about it - no need to read through many, many pages if you can just read a summary....Sorry if I've forgotten anything....
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Sorry if this is a bit GEEKY but I thought it would save a lot of people some time - perhaps we should think about doing this every night....
Night all.....Love, Jenna
-------------------- ..just remember....Family is EVERYTHING!!
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posted
Today, 12:57 AM #7235 PIERCEIS007 HSM Regular
Posts: 359 Have you guys seen this list? It is an online petition against nss...stumbled upon it while looking around for info. Seems we are not alone in the short battle..
posted
Thats it Source? You still think this is about who the judge will like better? Showing proof of ownership and contractual relationships is not a beauty contest. You have more than a little hate going on for the "Good ol boy" and it really seems to have clouded your judgement, or it hasn't and you are always like this.
As for that "Good ol boy"? I go by performance. He has pulled off everything he said he would, time and again. The company is still afloat, dispite all efforts to the contrary.
What really seems odd is that you didn't address anything in the post. Just more of your baseless accusations with no links or proof.
I do agree with you on one thing. Dems or Reps, both are evil, some more than others. Me? I prefer the Reps, which is just IMO.
I do wish you well, but I think you need to look in the mirror and forgive someone.
posted
if it was all cut and dried the judge would have already ruled on it and terminated the TRO. also rufus would have been shouting it from the rooftops on how he beat the sec at their own game imho. the insiders are cut off from their source of income cuz they can't sell their free shares for cash. "they starved the beast and it is dead" i.e. no cashflow.
-------------------- I'm from Missouri - Show Me!
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quote:Originally posted by 66inxs: if it was all cut and dried the judge would have already ruled on it and terminated the TRO. also rufus would have been shouting it from the rooftops on how he beat the sec at their own game imho. the insiders are cut off from their source of income cuz they can't sell their free shares for cash. "they starved the beast and it is dead" i.e. no cashflow.
Even if it was very cut and dry. I have a hard time believing the judge wouldn't drag it out a few days to give the government agency a little more time. Just MO
posted
has anyone typed in...Ruling on court hearing with conversion solutions on oct 25 2006? It comes up CONVERSION SOLUTIONS CSHD OCT 26 Updated Infrormation why Get Misinformation From Bashers www.cvsu.us
-------------------- Never lookback...
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Also Street Wire (U-*SEC) U.S. Securities and Exchange Commission
by Lee M. Webb
Conversion Solutions Holdings Corp. and its semi-literate chief executive officer, Rufus Paul Harris, are being sued for fraud by the U.S. Securities and Exchange Commission (SEC). Among other things, the U.S. regulator alleges that Conversion's fantastic claims about owning billions of dollars worth of bonds are bogus.
The SEC, which finally issued a 10-day trading suspension against Conversion on Oct. 24, filed a complaint for injunctive and other relief in the U.S. District Court for the Northern District of Georgia on the same day.
As previously reported by **********, Conversion claims to have an asset portfolio of approximately $7.3-billion consisting primarily of bonds and an estimated book value of $70.71 per share.
According to the SEC allegations, however, Conversion's claims with respect to approximately $6.8-billion worth of its purported bond holdings are rubbish.
Mr. Harris and Conversion have not yet filed a response to the SEC complaint and the allegations have not yet been proven.
The complaint
According to the U.S. regulator, beginning on Sept. 26, Conversion and Mr. Harris made a series of false or misleading statements through news releases and SEC filings.
"These false statements dramatically inflated both the price and trading volume for Conversion's shares," the regulator claims.
"In September and October 2006, Conversion issued a series of press releases, and filed with the Commission a current report and an amended current report on Form 8-K and 8-K/A, respectively, an annual report on Form 10-KSB and two amended annual reports on Forms 10-KSB/A, all of which fraudulently overstated Conversion's assets," the SEC goes on to allege.
In its complaint, the U.S. regulator takes particular aim at the OTC Bulletin Board promotion's allegedly false claims with respect to approximately $6.8-billion worth of Republic of Venezuela bonds.
According to the SEC, in a Sept. 26 Form 8-K filed by Conversion and a subsequent Sept. 27 news release, the company falsely claimed to have acquired euro-denominated bonds on the Republic of Venezuela with a converted value of approximately $6.3-billion.
The U.S. regulator says that the identifying codes for the bonds provided by Conversion correspond to a much smaller euro-denominated bond series issued by Venezuela. Indeed, the bond series under the identifiers provided by the OTC-BB promotion carry a converted value of approximately $882-million.
Moreover, the SEC claims that Conversion "does not own, or manage as an asset," the entire Venezuelan bond series corresponding to the identifying codes listed in the Sept. 26 Form 8-K or Sept. 27 news release.
The U.S. regulator also alleges that claims in Conversion's Sept. 29 Form 8-K/A and attached audited financial statements regarding the company having full ownership of another $500-million worth of Venezuelan bonds are also false.
"Some, and possibly all, of the $500-million Venezuelan bond issue was owned by entities other than Conversion during the relevant time period," the SEC claims.
In a supporting declaration, SEC accountant David W. Elzinga claims that he could not find any indication "that Conversion owned, wholly or partially, the $500-million Venezuelan bond issue."
The SEC further alleges that, in a Sept. 27 press release, Conversion falsely claimed to have a contract with Deutsche Bank in connection with some vaunted "banking platform" for global, sovereign and institutional investors.
"On information and belief, Deutsche Bank does not have any contract with Conversion, with the possible exception of an ordinary bank account relationship," the SEC claims.
In a supporting declaration, Deutsche Bank lawyer David M. Levine claims that after "a best efforts search of relevant pockets within Deutsche Bank, we have been unable to confirm the existence of any contract with Conversion Solutions."
Mr. Levine says that he contacted Mr. Harris on Sept. 28 to ask him about the contract Conversion had purportedly signed with Deutsche Bank.
"Mr. Harris stated that the contract was related to the Euroclear Platform and had been facilitated by an ambassador with the United Nations Education and Social Program," Mr. Levine states. "He would not provide the name of his Deutsche Bank contact."
The Deutsche Bank lawyer goes on to say that he called Mr. Harris twice on Sept 29 and, on the same day, made two calls to Conversion's chief operating officer Ben Stanley and another call to executive vice-president John Walsh, leaving detailed voicemail messages each time. Mr. Levine says that none of the Conversion executives called him back.
According to the SEC complaint, Conversion's false statements inflated the company's share price and trading volume after the two Sept. 27 press releases were issued.
The regulator notes that with 498,303 shares changing hands, Conversion closed at $1.01 on Sept. 26, the day before the allegedly fraudulent news releases.
On Sept. 27, the volume jumped to more than 4.9 million shares and the stock closed at $1.75.
"The effect of the fraudulent releases continued into Thursday, September 28, when Conversion's stock closed at $3.02 per share on a volume of 14,037,728 shares traded," the regulator says. "The price and volume have remained above the September 26 levels through the date of this complaint."
The U.S. regulator claims that Conversion and Mr. Harris "knowingly, intentionally and/or recklessly" committed fraud.
Further, the SEC says that Conversion violated reporting requirements and Mr. Harris aided and abetted the company's reporting violations.
Moreover, the SEC alleges that Mr. Harris signed certifications that contained untrue statements of material fact.
The SEC wants the Georgia court to issue a temporary restraining order and preliminary and permanent injunctions enjoining Mr. Harris and Conversion from violating federal securities laws.
The regulator is also asking for an order requiring disgorgement of all ill-gotten gains and an order imposing civil penalties against the defendants.
In addition, the SEC is seeking an order expediting discovery and preserving the documents of the defendants.
The regulator also wants an order permanently banning Mr. Harris from acting as an officer or director of any public company.
The emergency application
Along with the 15-page Oct. 24 complaint, the SEC also filed a 16-page memorandum of law in support of its emergency application for a temporary restraining order and other relief.
"From at least late September 2006 through October 19, 2006, Conversion Solutions Holding Corporation a/k/a Conversion Solutions Inc. ... has made a series of false or misleading statements through press releases and filings with the U.S. Securities and Exchange Commission," the SEC claims in its preliminary statement.
Once again keying on the allegedly bogus claims regarding the Venezuelan bonds, the regulator says that the false statements made by Mr. Harris and Conversion boosted the company's share price and trading volume.
"To date, neither Conversion nor Harris has done anything to correct these statements," the regulator says.
"When asked to provide copies of apparently fictitious contracts referred to in one Conversion press release, a Conversion officer stated that a 'gag order from the U.N. ambassador' prohibited him from doing so," the SEC adds.
The memorandum goes on to provide the SEC's account of the facts relating to the allegedly fraudulent bond claims and fictitious Deutsche Bank contract in more detail and with far less legalese than the complaint.
Turning to the legal argument, the U.S. regulator says that the defendants misrepresented and omitted material facts.
"Conversion and Harris have claimed falsely that Conversion has billions of dollars worth of assets," the SEC claims.
The regulator goes on to say that the sharp increase in the trading activity and stock price after the fraudulent Sept. 27 news releases "reflects the materiality of the false and misleading information that was provided to the market."
According to the SEC the defendants acted with "scienter," which may be shown by "severe recklessness."
"The repeated and outlandish nature of the misleading statements by Conversion and Harris shows recklessness, if not outright knowledge of the falsity of their claims," the SEC states. "Harris controls Conversion. Accordingly, his scienter is imputed to it."
The memorandum goes on to claim that Conversion violated its reporting requirements and Mr. Harris aided and abetted those violations "by knowingly recording fictitious assets on the company's financial statements, and by otherwise describing fictitious assets in those reports."
"As discussed above, Conversion and Harris are engaged in what appears to be an accelerating pattern of flagrant securities laws violations that has been going on since at least late September 2006," the SEC says in support of its application.
"Absent a temporary restraining order and preliminary injunction, it appears that the defendants will continue to violate the federal securities laws," the regulator adds.
The SEC wants the court to issue an order preventing the alteration, destruction or concealment of any relevant Conversion documents.
The regulator also wants an order expediting discovery.
"Expedited discovery of matters concerning the defendant's activities will permit the Commission to determine whether investors' assets are at risk," the SEC says after alleging that Conversion's claims about having billions of dollars worth of assets are false.
About the dates
Interestingly, at least from the lay perspective of this reporter, the SEC seems to be at pains to peg Sept. 26 as the date of the onset of the allegedly fraudulent activity.
As previously reported by **********, however, Conversion's grey sheet predecessor, Conversion Solutions Inc. (CVSU), was touting its purported ownership of $500-million worth of Venezuelan bonds as early as April 27.
According to the declaration of SEC accountant Mr. Elzinga, he accessed information from Bloomberg and noted trading activity in that $500-million bond issue from March 15 right through to Oct. 23.
"Based upon my experience, it is unlikely that any trading would occur if the bond issuance were owned by a single investor," Mr. Elzinga declares, going on to add that he could find no indication that Conversion owned any of the $500-billion bond issuance.
If the SEC's allegations and the supporting declaration of Mr. Elzinga are true, then Conversion's claim about owning the bonds was as bogus in April as it is now.
Moreover, while the SEC harps on Sept. 26 in its complaint and emergency application for a restraining order, Mr. Elzinga's declaration addresses, and even includes as exhibits, apparently fraudulent press releases issued on Aug. 18 and Aug. 23.
As previously reported by **********, on Aug. 18 the company issued a news release announcing that it had acquired a euro-denominated Lehman Brothers Holdings PLC bond with a converted value of approximately $579-million.
Mr. Elzinga identified that bond issue on Bloomberg and noted that many different entities, none of which appeared to be Conversion, owned portions of that bond. Mr. Elzinga goes on to declare that he could find no indication that Conversion owned any of the Lehman bond issue.
Again as previously reported by **********, on Aug. 23 Conversion issued a news release announcing it had acquired a euro-denominated bond on the Republic of Finland with a converted value of approximately $939-million.
Once again, Mr. Elzinga declares that there was no indication that Conversion owned any of that bond issue.
Oddly, the SEC complaint, keying on Sept. 26, makes no specific mention of Conversion's apparently bogus August claims regarding the Lehman Brothers and Republic of Finland bonds.
In any event, it is clear from the declaration of the SEC's Atlanta enforcement branch chief Michael E. Mashburn that the regulator was nosing around Conversion and being met with bobbing and weaving long before Sept. 26.
The Mashburn declaration
According to Mr. Mashburn, the SEC sent a letter to Mr. Harris requesting the production of documents on Aug. 22, more than a month before the Sept. 26 date the U.S. regulator seems to want to hold out as marking the start of the dastardly deeds.
In response to the Aug. 22 letter and a couple of telephone messages from Mr. Mashburn, Mr. Harris finally called the Atlanta enforcement chief on Sept. 5.
Mr. Mashburn says that he asked Mr. Harris about the Aug. 18 and Aug. 23 news releases and the claims about agreements with the Humanitarian & Scientific World Foundation relating to the Lehman Brothers and Republic of Finland bonds.
"Harris told me that Sabra Dabbs of Conversion Solutions arranged a meeting with representatives of the Foundation through the staff of Rudolph Giuliani," Mr. Mashburn says. "He said that the Foundation gave 'codes' to Conversion Solutions to be put into the 'banking system.'
"The company will then use the funds to finance activities by its subsidiaries."
According to Mr. Mashburn, Conversion's leader told him that the company had 14 subsidiaries.
"Harris described these as mostly failed companies that nonetheless had good ideas," Mr. Mashburn reports. "He said that a meeting was scheduled for the following day with Conversion Solutions' representative in Europe and a UNESCO ambassador in order to bring in additional subsidiaries."
Mr. Mashburn says that Mr. Harris explained that "in return for the codes for the bonds" Conversion promised the Humanitarian & Scientific World Foundation 50 per cent of the profits from the ventures with the subsidiaries.
As an example of a possible deal, Mr. Harris told the SEC enforcement officer that Conversion "might arrange a deal with the Atlanta Symphony, which needs $100-million."
According to Mr. Mashburn, Conversion's chief executive officer said that none of the deals with its subsidiaries has been accomplished yet.
"Harris asserted that the bonds had to be real because they had codes," Mr. Mashburn says further into his declaration. "He described the system as one where they can go on-screen, enter the codes and then have their bankers draw down on the funds. They have not executed any of the codes yet."
"I asked Harris if he planned to send any documents to the staff as requested," Mr. Mashburn later says. "He stated that he did not keep documents and that Forms 8-K filed earlier contained all the documents describing the merger and the bonds.
"Harris said he would send a letter to the staff stating that he has none of the information requested and supplying a list of the banks with which Conversion Solutions had arrangements."
According to Mr. Mashburn, Mr. Harris never sent the promised letter.
"I asked Harris if he made a guarantee that Conversion Solutions' stock would trade at $15 per share," the SEC enforcement officer says. "He replied that he had stated that the stock would 'reset' at this price after the merger with FrontHaul, but that he had not said that it would climb to this amount."
Mr. Mashburn reports that following his Sept. 5 telephone conversation with Conversion's chief executive officer, the SEC sent Mr. Harris a letter on Sept. 7 "scheduling his voluntary testimony in this matter" for Sept. 20.
"Harris did not appear," Mr. Mashburn notes.
The SEC's Atlanta branch chief says that he called Mr. Harris again on Sept. 29 to ask him about the Sept. 27 news release announcing the company's purported contracts with four banks, including Deutsche Bank.
Mr. Mashburn says that Mr. Harris agreed to fax a copy of the Deutsche Bank contract to him that very afternoon and to visit the Atlanta SEC office for an interview on Oct. 5.
Shortly after his Sept. 29 chat with Mr. Harris, the SEC enforcement officer says that he received a call from Conversion's chief operating officer, Mr. Stanley.
"Stanley said he had been asked by Harris to call me," Mr. Mashburn says. "He further stated that he could not fax copies of the Deutsche Bank contract to me because they were under a 'gag order from the UN ambassador' and did not wish to reveal the identity of their trader in Europe."
According to Mr. Mashburn's declaration, Mr. Stanley agreed to come to the Atlanta SEC office for an interview on Oct. 4, but a few hours before the scheduled meeting, Mr. Stanley called to say that he could not make it.
"During our conversation, Stanley said that there was no need to provide copies of the contracts to us as Conversion Solutions had filed copies of them at the courthouse in Bartow County, Georgia," Mr. Mashburn reports in his declaration, which is dated Oct. 6.
So, after getting the run-around for a couple of months, listening to some rather dubious stories and thin excuses and reviewing the allegedly bogus claims regarding billions of dollars worth of bonds, the SEC finally issued a 10-day trading suspension against Conversion on Oct. 24 and followed up with a civil suit on the same day.
Conversion last traded on Oct. 23 when the stock closed at $1.99.
********** will continue to follow developments.
Comments regarding this article may be sent to lwebb***********.com.
(More information regarding Conversion Solutions Holdings Corp. is available in ********** articles published on Oct. 13, 16, 18, 20 and 24, 2006.)
-------------------- Muad'Dib knew that every experience carries its lesson.
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posted
I don't see why there would be more time in court needed... Highly doubt that...
Apparently Rufus has given them EVERYTHING they needed, so now they check to see if Rufus' "keys" open locks or not...
Really as simple as that, -and you can bet they ALREADY know by now! Now,... what will play out is the only question IMO.
If you had a Million dollars in your account it would be easy enough to prove. So if "the System" is now going to try to say that you DON'T have a million dollars...
Well.... You see the "brick wall" Rufus has them up against?
"IF" the system (Big Money) is really against Rufus, it's kind of hard to disprove what's black and white sitting in your account/s...
As long as Rufus has those bonds how can he be stopped?... That is what I believe Big Money is working on right now... Hence no ruling yet ~
Cause come on... If I have bond in an account for $100 or $5 billion it's still a simple process to check and see...
quote:Originally posted by unclerudy: I just hope that we didn't get Godwin'ed last night from Morty. But that would mean that he was wrong, and the discussion is near the end.
If you have never heard of Godwin's Law, you will know that it applies here, and is always right...
posted
can anyone verify this I can't get on to HSM. It's a post from abbytraderwin from ihub.
I got to go to sleep. There is a post on HSM that shows an Ambassador and cabinet member appointed by President Bush as a shareholder on the list! Funny huh?
I did not confirm it but I believe the name is Schwab?
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