quote:Originally posted by CRab: For those interested I just called the case information line for the Georgia Northern District Court (404-215-1655) to see when they would be meeting again. I gave the nice lady the Docket# (1:06-cv-2568-cc) but she said yesterday's stuff hasn't been put in the system yet. The last available info is for the 24th, when the complaint was filed.
Thanks CRab - is anyone signed up for PACER? New2 perhaps since you got a copy of the original complaint?
Yes I signed up with Pacer this morning and have instant access. I have pulled down several documents from the case. All filed on the 24th... so nothing new as another poster stated when they called the Court House.
I have been looking at the stuff... paid 0.8 a page for all of it that I downloaded. I know it doesn't sound like a lot but being greedy I grabed the largest 30 page exhibit from the complaint, and after it downloaded I realised I just paid $4 for copied exerpts from the piblicly available 10KSB. then another 16 cents for a PR that has been out for three months.
Anyway, I read on the registration if I keep my bill under $10 for the year they don't bother billing me so I am slowing down until more information is available.
I do not think it is a good idea to post any of the PDFs on the thread here, but they are available through pacer at the 11th Northern District court web site. The link was posted a couple of times earlier. When you search by docket number in pacer take the "-cc" off the end. It brings the case right up.
As stated I will not post the documents, but I will give you some examples of some interesting stuff I found.
Like the exhibit from Mike Mashburn and Frank Cas.... (insert italian name here) I don't know let me go look at some of this stuff again. I got a new list of characters to go DD that is for sure. Starting with the GA Bar association and the attourney's involved.
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posted
IMO...a statement would have been made by someone, Company, Lawyers, SEC...someone...IF there was a TRO..that would need to be released ASAP...AND? according to the calls to Ben or someone yesterday...(maybe Tut or Dogomando)...said that they would not be issuing or saying anything until the SEC was done...You guys seriously...I know that they are some strong aligations...because of the wording..BUT it is nothing that we didn't already know...AND? the investigator that looked into the bonds did less DD than Ihub did on them...it almost seems that he took the word of people like PG, sourstreet and lemon and searched no more...NO I am NOT SAYING that is what he did..BUT look at the findings of the investigation...they are WEAK!...I read them and was like "no CHIT?! Show me something more..."
IMO...there were too many complaints from people, the SEC's hand was forced and they did the investigation...and suspension...I'm hopin' we're going to be all good..if not? well...then we're not...
quote:Originally posted by SherriT:
quote:Originally posted by new2stocks:
quote:Originally posted by 10of13: No news is good news... One of the things that I like is that they DID NOT get the TRO( I am assuming that they didn't because that would have been reported right away...particualrly by the "bashers")...If I am wrong someone please post a link as to where the TRO is in effect....And? the alligations really are quite weak...the investigation portion of the SEC and the bonds?...even weaker... Fingers still crossed...
Well, nothing has been filed yet on PACER from yesterday's court hearing, so we will probably find out if the TRO was issued then.
To some degree, I am leaning toward the fact that they DID get it. We haven't heard a single peep out of anyone - no comment, no SPR, no PR. A TRO simply gives them a chance to review all of the documents and disallow from doing any more "harm" to us shareholders.
I agree - no news is good news across the board though....can hardly wait for PACER to get updated!
-------------------- #1 Rule: Protect your capital! #2 Rule: Never fall for the BS on the boards!
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posted
Gang - all of the documents can be seen on the digitalisland link above FOR FREE. They are the official documents - for those of you that received a PDF copy of the complaint from New2 or me on her behalf, it is identical. The only thing we need from PACER is any rulings dated 10-25-06 or after....IMHO
-------------------- Study before you buy, Sell before you think about it....
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posted
Here is a copy of the email that our street sent to the SEC.
-----Original Message----- From: Our-Street.com [mailto:info*our-street.com] Sent: Wednesday, August 02, 2006 5:55 AM To: ' *sec.gov' Subject: complaint on FHAL
Mr ,
This is to confirm my complaint that the CEO and other parties within Conversion Solutions (Pink Sheets) and Fronthaul Group (OTCBB FHAL) appear to be materially violating Rule 10b-5 of the Securities Act by, among other things, guaranteeing a $15 stock price on a stock currently trading around $1. He has reiterated this claim at least twice in internet based interviews and has also published his personal buy recommendations on internet message boards.
Based upon the excellent job xxxxxxxxxxxxxx did on the XXXX matter, I contacted him and he has referred this matter to XXXXXXXXX in your Atlanta office. She has been in contact with me regarding this matter.
Since your focus deals primarily with internet based securities fraud, I thought you might find this interesting. I know in all my years in the business, I never heard a CEO make the kind of promises and guarantees Mr. Harris is making. He is actually guaranteeing that, following the posting of his 10K supporting the merger of FHAL and CVSU that he will be resetting the stock from its current price around $1 to the new price of $15. You can read actual quotes from the interviews on my website.
Join Date: Apr 2006 Location: Long Island, New York Posts: 1,193 Rufus's Judge:
Cooper, Clarence Born 1942 in Decatur, GA
Federal Judicial Service: Judge, U. S. District Court, Northern District of Georgia Nominated by William J. Clinton on March 9, 1994, to a seat vacated by Richard C. Freeman; Confirmed by the Senate on May 6, 1994, and received commission on May 9, 1994.
Education: Howard University School of Law
Clark College, Atlanta, Georgia, B.A., 1964
Emory University School of Law, J.D., 1967
Harvard University, John F. Kennedy School of Government, M.P.A., 1978
Professional Career: Attorney, Atlanta Legal Aid Society, Georgia, 1967 U.S. Army, 1968-1970 Assistant district attorney, Fulton County, Georgia, 1968, 1970-1975 Judge, City of Atlanta Municipal Court, Georgia, 1975-1980 Judge, Fulton Superior Court, Georgia, 1980-1990 Judge, Georgia Court of Appeals, 1990-1994
Race or Ethnicity: African American
Gender: Male
-------------------- #1 Rule: Protect your capital! #2 Rule: Never fall for the BS on the boards!
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posted
The confidence that RPH has going into this is more than one would expect knowing the SEC has the power to shut him down indefinately, whether or not he can prove the allegations false. In fact, he has been courting this from the start. What it means to me is that not only does he know he is right BUT also he has powerful connections that will make sure things ultimately go his way. Remember what he said in his first Paltalk interview? "It not what you know, its who you know". He has been hinting at these connections all along. IMO he has powerful backing and hence the unbridled cockiness. Of course it could also be that he is a brilliant lunatic. More likey the former don't you think?
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posted
New2 ~ One thing I noticed from your post above if that Mike Mashburn used that exact same wording in his description of a phone conversation with Rufus. "guaranteeing a $15 stock price on a stock" Rufus answered him correctly and appropriately.
quote: ...if he made a guarantee that Conversion Solutions' stock would trade at $15 per share 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. He referred me to Section 2 .6 of the merger agreement, which was filed as an attachment to a Form 8-K .
quote:Originally posted by mastaflash: The confidence that RPH has going into this is more than one would expect knowing the SEC has the power to shut him down indefinately, whether or not he can prove the allegations false. In fact, he has been courting this from the start. What it means to me is that not only does he know he is right BUT also he has powerful connections that will make sure things ultimately go his way. Remember what he said in his first Paltalk interview? "It not what you know, its who you know". He has been hinting at these connections all along. IMO he has powerful backing and hence the unbridled cockiness. Of course it could also be that he is a brilliant lunatic. More likey the former don't you think?
quote:Originally posted by mastaflash: The confidence that RPH has going into this is more than one would expect knowing the SEC has the power to shut him down indefinately, whether or not he can prove the allegations false. In fact, he has been courting this from the start. What it means to me is that not only does he know he is right BUT also he has powerful connections that will make sure things ultimately go his way. Remember what he said in his first Paltalk interview? "It not what you know, its who you know". He has been hinting at these connections all along. IMO he has powerful backing and hence the unbridled cockiness. Of course it could also be that he is a brilliant lunatic. More likey the former don't you think?
and who is more powerful than the SEC?
-------------------- Disclaimer: Not accountable for anything I say
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posted
Portman ~ Black and Hicks are on the list too. I am just interested in where they are getting their information and why these people would risk their positions.
1. He is absolutely in the right and has nothing to worry about. Meaning he has connections and can back everything up. Rufus had to know that something was going to happen with the SEC. If you yell loud enough long enough. someone's got to check you out. So I would think that Rufus new the SEC were going to come knocking on his door. or refer to #2
2. He's a stark raving made lunatic.
I don't see any other options. any sane person would not be screaming like this if they were running a scam challenging the powers that be. At least I wouldn't.
for right now the jury's or the judge for that matter is still out on this one.
posted
Unfortunately Ryan, there are other options. Some of you seem to be under the belief that Rufus is either 100% correct or 100% wrong. That is just not so. In fact, Rufus could THINK that he is correct and the SEC could show him where he was wrong. In that case, he might escape jail time and all of us would be screwed.
-------------------- "I will smack you in the mouth, I'm Neil Diamond"- Will Ferrell
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posted
Ive never seen a guarantee by Rufus. Its always been called a reset and they had institutions ready to start buying to keep the price up. It sounds like the sec is going with what they were spoon fed. JMHO
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quote:Originally posted by TaxBack04: New2 ~ One thing I noticed from your post above if that Mike Mashburn used that exact same wording in his description of a phone conversation with Rufus. "guaranteeing a $15 stock price on a stock" Rufus answered him correctly and appropriately.
quote: ...if he made a guarantee that Conversion Solutions' stock would trade at $15 per share 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. He referred me to Section 2 .6 of the merger agreement, which was filed as an attachment to a Form 8-K .
yes I know that Tax....but our creep used it in a negative way to complain to the SEC.
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posted
If they are right then all is good but if Rufus is right then each of them must be making some stuff up. Personally, I think the Vice-President for FRM is telling the absolute truth. Just that the question posed was the wrong one.
My example would be the definition of ownership that I spoke briefly about yesterday. "I own CSHD and have for a couple of months." Just because I have invested in CSHD do I really "own" the assests? Can I walk in the building and start taking pens from the supply closet? (OK... wierd people just said maybe in their head.) Companies and Bonds are different in that regard. If I am betting on the performance of a large stack of International cash I can't just fly down to Venezeula and start filling my pockets from the pile. Even if I have a controlling interest. I am betting on the pile performance. Someone else has the codes to the vault.
posted
Doni, with the charges that the SEC made I'm not quite sure there really is any middle ground/wiggle room or what ever you wanna call it. The only thing in my opinion that could maybe be a little gray is the bank contracts...in that case making an arguement as to what a "contract" between the two could be. Even then that is kind of a stretch.
What were you thinking could be a little gray?
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quote:Originally posted by TaxBack04: Portman ~ Black and Hicks are on the list too. I am just interested in where they are getting their information and why these people would risk their positions.
Perhaps the SEC assumption that CSHD NEEDS a direct contact or contract with that bank to do the work required is incorrect.
-------------------- - "Pay it Forward"
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posted
Tax, exactly my thoughts to. I still think its a matter of verbage. Own or controle. I own my house, but I cant sell it without the bank getting there share. Its an asset for me and the bank. JMHO
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quote:Originally posted by mastaflash: The confidence that RPH has going into this is more than one would expect knowing the SEC has the power to shut him down indefinately, whether or not he can prove the allegations false. In fact, he has been courting this from the start. What it means to me is that not only does he know he is right BUT also he has powerful connections that will make sure things ultimately go his way. Remember what he said in his first Paltalk interview? "It not what you know, its who you know". He has been hinting at these connections all along. IMO he has powerful backing and hence the unbridled cockiness. Of course it could also be that he is a brilliant lunatic. More likey the former don't you think?
and who is more powerful than the SEC?
The SEC interprets and enforces regulatory laws as a quasi-judicial agency. Who is more powerful than the SEC?... Congress and the thinktank created by Reagan to keep an eye on the health of the country's markets from the highest levels (Working Group on Financial Markets). If part of the bigger picture is some sort of reform, as alluded to several times by RPH, one would think he has been in contact with folks in these positions. Pure speculation but relevant to the extent that there are many levels of command above the people on the plaintiff's side of the table, within and outside of the SEC.
posted
humble your post always seem very thought out and intelligent. I enjoy reading them. What's your take on our current situation and what do you think Rufus's chances are of being proved to be on the level?
quote:Originally posted by CRab: Doni, with the charges that the SEC made I'm not quite sure there really is any middle ground/wiggle room or what ever you wanna call it. The only thing in my opinion that could maybe be a little gray is the bank contracts...in that case making an arguement as to what a "contract" between the two could be. Even then that is kind of a stretch.
What were you thinking could be a little gray?
I think the charges are baseless if ownership and contract is proven. How can a lie or reckless statement as to the value of a speculated asset be considered a lie or reckless if it is proven to be an physical asset? The only question left is if the value was correct on the day quoted and Rufas in the 10KSB PR quoted it to the penny, for a particular day and time. No rounding.
quote: With the addition of the Lehman Brothers Holdings PLC Bonds of $450,000,000 Euro ($564,092,494.32 USD as of October 16, 2006 at 7:26 pm), the Republic of Finland Sovereign Bonds of $749,000,000 Euro ($939,000,348.90 USD as of October 16, 2006 at 7:26 pm) and the Contract expansion with the Caracas Group of $5,000,000,000 USD the corporation currently has an asset portfolio of $7,292,601,135.22.
quote:Originally posted by RyanPBF: humble your post always seem very thought out and intelligent. I enjoy reading them. What's your take on our current situation and what do you think Rufus's chances are of being proved to be on the level?
I am not concerned about the bond ownership issue. I hold a position in CSHD with the full belief that the bonds in question are under the control of CSHD. Once that is proven, the financial concern will be eliminated.
My only real concern is that Rufus' public statements must now be interpretted and explained. Every brash comment he has ever made is being looked at for any sign of fraud or manupulation. This phase of the proceedings is akin to a grand jury indictment. If there is even the slighest question on the legality of anything, this will go to trial to work it out. We do not want that. We need the claims of the SEC to be overwhelmingly refuted to the point that the judge believes they have no chance of winning at trial and therefore delivers a Summary Judgement for dismissal.
A dismissal will be the beginning of awesome days for shareholders. All other outcomes will lead to varying degrees of risk and further delays.
Bottom line is that the courtroom is a tricky place and this is truly the crossroads for this play. I am waiting with anticipation just like everyone else.
quote:Originally posted by bigstocks: Tax, exactly my thoughts to. I still think its a matter of verbage. Own or controle. I own my house, but I cant sell it without the bank getting there share. Its an asset for me and the bank. JMHO
OK, now with that anology let take it into the bond world. Who really owns your house? You the bank or the government of the country that house sits in? Say the government gathered your whole neighborhood and labled it an asset, and allowed people and institutions to trade against the performance of your neighborhood. You and all your neighbors claim it as an asset. And so do all the investors who invested in your neighborhood. bloomberg does not list the ownership because it would allow an investor in your neighborhood to short your neighborhood, and then go rent a bulldozer.
The Caracus Group, out of Caracus Venezeula one of the wealthiest oil rich areas of Venezuela. Is the group where Rufus got access to this bond. Not FRM, or any other investor of the bond. He got it from the owners of the money it self.
Back to the analogy... you and your neighborhood could colectively allow a casino to be built on your property, or a trash dump, or you could just live there and keep the land improved. in any case it is your decision not the investors in your neighborhood.
posted
Rufus gave only a little info out... (Pre-hearing)
Rufus stated that the Institutional contract's were related to the Euroclear Platform and had been facilitated by an ambassador with the United Nations Education and Social Program . He would not provide the name of his Deutsche Bank contact . However, he did say that the contract was entered into with Deutsche Bank staff in Europe.
CSHD stand is:
...that Conversion Solutions takes possession of bonds on Euroclear, facilitates a line of credit against the instrument, uses the money to fund "projects," and pays the bondholders 50% of the profits of the project.
posted
its so weird and great to now have faces with these handles, ones i remember specifically are jenna and chartwalker...funny cuz i always pictured chart 1)skinnier and 2) nerdier lol
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SEC Will Be Investigated in Probe Sought by Senate's Grassley
By Otis Bilodeau
Oct. 26 (Bloomberg) -- The U.S. Securities and Exchange Commission, already under scrutiny for its handling of a trading probe that entangled Morgan Stanley Chief Executive Officer John Mack, now faces a broad review by government auditors of its management and methods for policing the financial markets.
The Government Accountability Office agreed last week to investigate the SEC's enforcement division and compliance department after requests by Senator Charles Grassley, an Iowa Republican who questioned whether the agency gave Mack special treatment. Grassley asked the GAO to examine the SEC's ``planning, oversight, control and other management processes'' and gauge whether the agency does enough to oversee regulators at the New York Stock Exchange and NASD.
``Based upon allegations I have received over the past few months, I have become increasingly concerned regarding the operations of the SEC, and whether the SEC is faithfully adhering to its mission'' to protect investors, Grassley, the chairman of the Senate Finance Committee, wrote in one of two Sept. 19 letters to GAO Comptroller General David Walker.
The review ratchets up the heaviest political pressure the SEC has faced since Christopher Cox, a California Republican, took over as its chairman in August 2005. Grassley's requests target units run by SEC enforcement chief Linda Thomsen and Lori Richards, head of the Office of Compliance, Inspections and Examinations.
Senators including Grassley are concerned that the SEC shielded Mack from a probe of insider trading at Pequot Capital Management Inc., which runs $7 billion in hedge funds. Gary Aguirre, a former SEC investigator, told the Senate Judiciary Committee in June that he was blocked from questioning Mack because of the Morgan Stanley CEO's political clout. New York- based Morgan Stanley is one of Wall Street's two biggest securities firms.
`Coating of Dirt'
The SEC eventually interviewed Mack in July and notified him and Westport, Connecticut-based Pequot earlier this month that it won't pursue a case against them. The SEC repeatedly has denied Aguirre's claims and Mack and Pequot denied any wrongdoing.
``This Aguirre story will leave a coating of dirt unless it is probed and washed away,'' said Edward Fleischman, a former SEC commissioner now in private practice at Linklaters in New York. ``It will benefit us all, and it will ultimately benefit the SEC, to have the GAO go through all of this as an outside observer.''
Thomsen declined to comment. Walter Ricciardi, a deputy enforcement director at the SEC, said the agency has no objection to the GAO inquiry.
``We welcome the review and look forward to any recommendations that might follow,'' Ricciardi said in an interview.
Donaldson Appointee
Thomsen is the only division director at the SEC not appointed by Cox. She was promoted in May 2005 by Cox's predecessor, William Donaldson, after then-Enforcement Director Stephen Cutler returned to private practice.
Cox said Oct. 18 that members of Congress have ``legitimate concerns and I share those concerns'' when asked about Aguirre's allegations.
Grassley asked the GAO, Congress's investigative arm, to report its findings by June. The GAO said in an Oct. 16 letter to Grassley that it ``accepts these requests as work that is within the scope of its authority.''
The inner workings of the SEC's enforcement division are rarely exposed to public view. As a matter of policy, the agency doesn't say when it opens or closes investigations and officials won't discuss their progress in building a case.
NYSE, NASD Oversight
Grassley asked the GAO to assess how the SEC tracks investigations, the amount of time the agency takes to complete them and its ``reported success rate.'' He also requested that the auditors determine how many referrals of potentially illegal trading activity from U.S. exchanges ``actually become part of a regulatory action.''
SEC enforcers rely on the self-regulatory organizations, or SROs, that police the exchanges, including NYSE Regulation and the NASD, to report signs of suspicious trading for further investigation.
The SEC must ``detect and deter potential abuses of SRO authority arising from inherent conflicts of interest,'' Grassley wrote to the GAO. ``How does the SEC ensure that the SROs vigorously oversee their own members?''
An analysis of stock-trading data by Toronto-based Measuredmarkets Inc. showed in August there may have been insider trading in advance of 41 percent of the largest U.S. takeover announcements in the preceding year. Derivatives traders also made perfectly timed bets before public announcements of recent deals such as the $33 billion leveraged buyout of hospital operator HCA Inc.
Hedge Funds
About 20 percent of the new investigations opened at the SEC in the past year focused on insider trading and slightly less than half of those probes led to enforcement cases, according to Ricciardi.
``We often see suspicious trading, but in some cases it's hard to find the evidence,'' he said in an Aug. 27 interview.
Cox said Oct. 18 that the SEC is ramping up its scrutiny of potential insider trading by hedge funds ahead of company mergers. Thomsen, the enforcement chief, told Congress last month that cases of insider trading by hedge funds have become a ``significant concern.'' Hedge funds are private pools of capital that allow managers to participate substantially in the gains they make for investors.
quote:Originally posted by mastaflash: The confidence that RPH has going into this is more than one would expect knowing the SEC has the power to shut him down indefinately, whether or not he can prove the allegations false. In fact, he has been courting this from the start. What it means to me is that not only does he know he is right BUT also he has powerful connections that will make sure things ultimately go his way. Remember what he said in his first Paltalk interview? "It not what you know, its who you know". He has been hinting at these connections all along. IMO he has powerful backing and hence the unbridled cockiness. Of course it could also be that he is a brilliant lunatic. More likey the former don't you think?
quote:Originally posted by trade04: its so weird and great to now have faces with these handles, ones i remember specifically are jenna and chartwalker...funny cuz i always pictured chart 1)skinnier and 2) nerdier lol
-ahh...
nerdy-"er"
You're getting a big box of "dookie" for Christmas!!
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paid 0.8 a page for all of it that I downloaded. I know it doesn't sound like a lot but being greedy I grabed the largest 30 page exhibit from the complaint, and after it downloaded I realised I just paid $4 for copied exerpts from the piblicly available 10KSB. ![[Big Grin]](biggrin.gif)
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