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Author Topic: USXP - Watch!
10of13
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Nice little daytrade today...sucky long term IMHO!

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#1 Rule: Protect your capital! #2 Rule: Never fall for the BS on the boards!

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Swab Jockey
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MikeC - good post some of us need to be reminded of the realities of the "pinks" from time to time. Gonna print that one a put it over my computer to re read every time I think about going "long" on a pink sheet stock. Thanks

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CG-48 "Victory is our tradition"

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Vagabond
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quote:
Originally posted by Swab Jockey:
MikeC - good post some of us need to be reminded of the realities of the "pinks" from time to time. Gonna print that one a put it over my computer to re read every time I think about going "long" on a pink sheet stock. Thanks

Not just the pinks, but the OTCBB as well

[Cool] Vagabond

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You are what you do, not what you say!

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Swab Jockey
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reality like common sense is rarely tolerated

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CG-48 "Victory is our tradition"

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blacklab669
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glad I got in at .0042 only green around it seems

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RLB

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BlindMellonChitlin
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LOL..You must not know anything about this stock. You did get in at a good time....but don't be surprised by what this stock does. It could be at .0002 in a week. Or it might be at .03 tomorrow AND at .0002 tomorrow......LOL.

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Making it a little at a time....Now is the time to determine if you are a man or a mouse.

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idreamer
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look like my stock USXP still doing fine reach 30% high close at 10% not too bad to be the first day of the week .

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idreamer

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idreamer
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hey guys did you see that volume today 1/2 of B and it was steady in 15% almost all day USXP going up up up up

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idreamer

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mos
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appreciate the earlier info idreamer i'll get out of USXP first thing in the morning. thanks.
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idreamer
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USXP ceo was not bull***** in his conferance. SP it's coming up who knows till when.

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idreamer

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vinnie1
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lol
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vinnie1
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pump pump and more pump
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BlindMellonChitlin
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Got a USXP bag? Put something into IPRE and cancel the USXP bag out!

IPRE will be in the pennies soon.

USXP may NEVER see pennies again.

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Making it a little at a time....Now is the time to determine if you are a man or a mouse.

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scot trade
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That stock is totally manipulated. It had nice runs in last 3 years but i wouldn't keep long in that one. Just a day trading might bring some profits
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BlindMellonChitlin
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USXP may do a reversal.

IPRE is where you should be!

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Making it a little at a time....Now is the time to determine if you are a man or a mouse.

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vinnie1
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IPRE
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idreamer
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IPRE don't have nothing to show, not even VOLUME today USXP 1/2 B .hajaaaa

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idreamer

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BlindMellonChitlin
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Yep....When a stock has BILLIONS of shares in the float....1/2 billion is squat.....LOL

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Making it a little at a time....Now is the time to determine if you are a man or a mouse.

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idreamer
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USXP 2372 trades and 536,956,541 volume and stock price up. 10% high.. IPRE 555 trades and 131,323,612 volume and stock price down .4% low

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idreamer

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BlindMellonChitlin
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quote:
Originally posted by BlindMellonChitlin:

Here is some information on USXP and the SEC allegations.
-------------------------------------------------------------------
SEC v. USXP - Declaration Of Hugh BECK

1. My name is Hugh Beck. I am over the age of eighteen years and have never been convicted
of a felony or crime involving moral turpitude. I have personal knowledge of the facts set
forth in this declaration, and if called to testify, I could and would testify competently
thereto.

2. I am employed as an attorney with the Division of Enforcement of the United States
Securities and Exchange Commission ("SEC" or "Commission") in the Central Regional Office, Denver, Colorado. Since about August 2003 I have been an officer of the
Commission authorized to issue subpoenas and take sworn testimony in an investigation of
this matter. During the course of this investigation I have subpoenaed bank, transfer agent,
broker dealer, and various documents from other persons. I have also taken sworn testimony
from various persons and conducted interviews. This declaration is based on that
investigation and the documents obtained including bank and brokerage records.

I. THE DEFENDANTS

3. Universal Express, Inc., ("Universal") a Nevada Corporation, has its principal place of
business in Florida and has an office in New York, New York. The company operates a
variety of developmental stage businesses including, a network of independent shipping
businesses, luggage shipping, and equipment leasing. The common stock of Universal is
registered with the Commission pursuant to the Securities Exchange Act of 1934 and as a
result the company files reports with the Commission on Forms 10-KSB (annual) and
10-QSB (quarterly). Universal’s average daily volume of trading during January and
February 2004 was 6,559,920 shares. [Exhibit 1] The stock trades over-the-counter.

4. Richard A. Altomare, age 55, is a resident of Florida, and has been Universal's chief
executive officer and a director of Universal since 1992. Altomare is currently the sole
officer and director of Universal and signed the company’s filings with the Commission.
According to Universal's most recent Form 10-KSB, Altomare owns 32,590,173 shares or
about 6.6% of the company’s outstanding common stock.

5. Chris G. Gunderson Jr., works in Universal's New York City office and has been Universal's
in-house attorney since 1995.

6. Mark S. Neuhaus, age 49, lives in New York, New York. Neuhaus has been associated with
Universal since the middle of 2001. Neuhaus received stock from Universal and later
engaged in an unregistered public distribution of that stock as detailed below.

7. George Sandhu, age 38, lives in New York, New York and has since 1999 been employed at
an investment adviser registered with the Commission. In sworn testimony Sandhu asserted
his Fifth Amendment rights and refused to answer any substantive questions. [Exhibit 2]

8. Spiga Ltd., is a Bermuda investment company controlled by Sandhu. Sandhu has trading
authority over brokerage accounts of Spiga. He also controls transfers of funds from those
accounts. [Exhibits 3a-3d] Spiga received stock from Universal and later engaged in an
unregistered public distribution of that stock as detailed below.

9. Tarun Mendiratta, age 33, is a resident of Connecticut. Mendiratta directed and controlled
the disposition of stock received by nominees of his from Universal that was sold by him in
an unregistered public distribution of that stock as detailed below.

II. UNREGISTERED DISTRIBUTION OF STOCK BY ALL DEFENDANTS

A. Summary

10. On June 30, 2000, the end of Universal’s 2000 fiscal year, the company had approximately
19 million shares outstanding. [Exhibit 4]

11. By December 31, 2003, Universal's outstanding shares exceeded 650 million due primarily to
the execution of the capital-raising scheme initiated in April 2001 involving continuous
issuances of new Universal shares that were distributed illegally to the public without being
registered. [Xbt. 5]

12. I have search the SEC's data base of filings and have determined that since April 2001, none
of the public re-sales of Universal stock to the investing public were registered with the
Commission. [Exhibit 6]

13. The unregistered distribution of stock was implemented by the issuance of stock by
Universal to Neuhaus, Spiga, Mendiratta's nominees, and their later public re-sales of that
stock without registration with the Commission.

14. In connection with the issuance of stock to Neuhaus, Spiga, and Mendiratta's nominees the
company signed consulting agreements with the recipient of the stock to purportedly qualify
the recipient to receive the stock for registration with the Commission on Form S-8.
[Exhibits 7a-7d] Gunderson prepared at least one of the consulting agreements.

15. Recipients of the purported S-8 stock, including Spiga (at Sandhu's direction), Neuhaus, and
Mendiratta's nominees re-sold it into the public markets and remitted a portion of the sales
proceeds to Universal in an apparent effort to raise capital for the company or paid a
discounted price compared to the current market price of the stock. No distribution of the
stock into the public markets by these persons was registered with the Commission.

16. For the two fiscal years between June 30, 2001 and December 31, 2003, Universal reported
total revenue of $2.9 million. It had a net loss from business operations during the same
period. However, during this same period, it received at least $8.5 million from the capital
raising scheme from Neuhaus, Sandhu, and Mendiratta's nominees.

17. Gunderson also drafted restricted stock purchase letters apparently to make it appear that
payments by the re-sellers to the company were for restricted stock, rather than the purported
S-8 stock they were distributing into the public markets. [Exhibits 8a-8e; Exhibit 9a, pp. 203,
237]

18. Universal filed two S-8 registration statements with the Commission registering the issuance
of only 50 million shares of its stock. [Exhibits 10a-10b] However, according to the records of its transfer agent, it issued more than 500 million shares to Neuhaus, Spiga, and
Mendiratta's nominees between April 2001 and January 2004. [Exhibits 11a-11d]

19. Universal continues to issue stock purportedly registered with the Commission on Form S-8
even though it long ago had issued many times the 50 million shares covered by its two S-8
registration forms. According to the company's transfer agent, in February 2004 and March
2004, the company directed the issuance of 11 million shares of purported S-8 stock to a
single individual. [Exhibits 12a-12h] At least 4 million shares of this stock have been re-sold
to the public in an apparent unregistered distribution for proceeds of at least $240,000.
[Exhibit 13]

B. Neuhaus

20. Neuhaus admitted that he negotiated with Altomare an arrangement whereby he would
receive "free trading" Universal stock in exchange for a price substantially below the public
trading price of the stock. [Exhibits 14a-14c, Exhibit 9, pp. 122-123, 220]

21. On at least one occasion, Gunderson prepared and sent to Neuhaus a calculation of the
number of shares he was to receive based on an agreed upon discount from the then
prevailing market price of Universal stock. [Exhibit 14b]

22. In November 2001, one of Neuhaus' brokers questioned whether stock issued by Universal to
Neuhaus could be publicly sold without a registration statement. Notwithstanding the fact
that by this time the purported S-8 shares issued to Neuhaus exceeded the 50 million shares
covered by Universal's actual S-8 registration statements, Gunderson prepared a legal
opinion falsely stating that Neuhaus "was covered by the company’s S-8 registrations for its
common shares." [Exhibit 15]

23. Between April 2001 and November 2003 Universal issued to Neuhaus approximately 271
million shares of Universal stock. Universal and Altomare falsely told the company's transfer agent that all of this stock was "to be free trading under an S-8 registration."
[Exhibit 16] Based on a review of Universal's audit work papers, bank and brokerage records
I have determined that Neuhaus or entities he was affiliated with paid Universal
approximately $5.1 million for this stock. He in turn publicly re-sold it for proceeds of at
least $8 million.

C. Spiga and Sandu

24. Between August 2001 and December 2003 Universal issued to Spiga approximately 157
million shares of Universal stock. Universal and Altomare falsely told the company's
transfer agent that all of this stock was "to be free trading under an S-8 registration."
[Exhibit 17] Prior to August 2001 Universal had already issued to Neuhaus more than the 30
million shares of stock covered by Universal's first S-8 registration Form. According to
Universal's audit work papers, bank and brokerage records, Sandhu directed or made
payments to Universal totaling approximately $2.4 million for this stock, often using the
proceeds of public re-sales to make the payments.

D. Mendiratta

25. Between August 2002 and January 2004 Mendiratta arranged for two individuals who are
residents of India would act as his nominees. Mendiratta opened brokerage accounts in their
names and deposited approximately 79 million shares of S-8 Universal stock to those
accounts. This stock was issued to his nominees purportedly in exchange for the nominees'
consulting services. I was informed by the broker on these accounts, that the individuals had
been represented by Mendiratta to him to be Mendiratta's aunts and that Mendiratta had
actually opened the accounts. Mendiratta at all times controlled the trading activities in those
accounts. [Exhibit 18]

26. Prior to August 2002 the S-8 shares issued to Neuhaus and Spiga exceeded the 50 million
shares of stock covered by Universal's Forms S-8. Nevertheless, Universal, Altomare and
Gunderson falsely told the company's transfer agent that all of the stock issued to
Mendiratta's nominees was "free trading under an S-8 registration." [Exhibit 19a-19d]
According to audit work papers, bank and brokerage records, the Mendiratta and the
nominees wired payments totaling approximately $1.2 million for this stock to Universal.

III. FALSE PUBLIC STATEMENTS

A. Summary

27. During the period the company was issuing stock to persons who re-sold it into the public
markets to raise money for the company, Universal had limited revenues and operating
losses. Yet at the same time, Altomare transferred substantial funds from Universal to
himself and his wife and had Universal pay various personal expenses of his. These amounts
totaled approximately $1 million. Universal in filings with the SEC claimed that the
transfers were "advances" to Altomare.

28. While issuing the stock to Neuhaus, Sandhu, and Mendiratta, Universal issued a series of
false press releases. The market effect of those releases was dramatic.

29. From May 2002 to April 2003, Altomare caused Universal to issue four false press releases
that announced Universal’s receipt of purported large funding commitments. Each of the
releases materially overstated the willingness or ability of the lender to fund the transaction.
Each release was followed by a substantial increase in Universal's share price and trading
volume, which permitted the re-sellers to dispose of large amounts of Universal shares.

30. In October 2003, Altomare and Universal issued a press release claiming that Universal had
contracted to purchase an airline. That release was false and misleading as detailed below.

31. The below table documents the market reaction to the various press releases issued by
Universal and is based on published market data [Exhibits 20a-20e]:
Date of Release
Mkt. Volume Day Before
Mkt. Volume Day of Release
Previous Day Close Price
Day of Release Close Price

May 23, 2002 * 2.9 million * 26 million * $.02 * $.033

July 10, 2002 * 1.3 million * 10.6 million * $.021 * $.024

November 21, 2002 * 5.2 million * 19.6 million * $.017 * $.026

April 9, 2003 * 2.3 million * 109.7 million * $.007 * $.026

October 12, 2003 * 29.4 million * 131.8 million * $.072 * $.103

32. Universal, Altomare, and Gunderson also caused Universal to make false statements in its
filings with the SEC and to its auditors concerning the funding of the company through the
unregistered distribution of stock.

33. Universal, Altomare, and Gunderson caused Universal to make false statements in its SEC
filings about the source of the funds it received from the re-sellers.

34. Universal and Altomare also made other false public statements about the company detailed
below.

B. May 23, 2002 Announcement of $100 million in Funding Commitments

35. On May 23, 2002, Universal issued a press release falsely claiming it had received "Over
$100,000,000 in Funding Commitments" from "two International Hedge Funds." [Exhibit 21]
Quoting Altomare, the release further stated: "To complete our corporate objectives,
Universal obviously needs to jump start revenues, profits and logistical capabilities.
Fortunately, that belief is shared by these investors, who have already invested over
$5,000,000 with Universal over the past five years. . . . These monies will be invested
initially as debt and equity only at prices well above the current market value . . . .
[D]eveloping companies like Universal Express with capital can now seize the opportunities
that are readily available to it."

36. The press release was materially false and misleading.

37. Neuhaus testified and Sandhu told me in an interview, that, at Altomare’s request [Exhibit
9b, p. 47], each prepared a "funding" letter. Neuhaus' letter stated that an entity Neuhaus
controlled had "authorized $5,000,000 in additional seed capital" for Universal and that it
would "also provide up to $40,000,000 in long-term financing, if necessary." [Exhibit 22] In
testimony, Neuhaus admitted that the value of Coldwater’s total assets was far less than
$45,000,000. [Exhibit 9a, pp. 175-177] Sandhu’s letter, which he wrote on behalf of Target
Growth Fund stated that Sandhu had "authorized up to $7,500,000 in additional capital from
the Fund for future approved [Universal] acquisitions," and that he was "also prepared based
upon due diligence and proper collateral to arrange an additional $50,000,000 in long term
financing. . . ." [Exhibit 23] In fact, Sandhu admitted to me in an interview that Target
Growth Fund could not at the time invest $57,000,000 in Universal. Sandhu admitted to
another SEC staff member that Target Growth Fund’s total assets were only $4 or $5 million.

38. In May 2002, Sandhu and Neuhaus prepared new lters expressing commitments to fund
Universal’s proposed acquisition of a transportation company. Sandhu’s letter dated May 21,
2002 stated: "[B]ased upon the initial proposed letter of intent, we would be committed to the
funding of the combined company. Please let us know when the final terms have been
negotiated so we can move our discussions to the next level." [Exhibit 24] After receiving
Sandhu’s letter, Universal faxed to Neuhaus language, including the statement: "[M]y hedge
fund and partners enthusiastically commit to the funding of Universal Express’ strategic
acquisition . . . ." [Exhibit 25] Although Neuhaus did not manage a fund of any sort, he
copied the text into a letter dated May 22, 2002 that he delivered to Altomare. [Exhibit 26]

39. The press release was thereby materially false and misleading. Even on their face Sandhu’s
letters did not state a "commitment" to invest, but instead stated that Sandhu was prepared
"based upon due diligence and proper collateral" to arrange financing and that Sandhu
"would be committed to the funding of the combined company" (emphasis added) if the
acquisition worked out.

40. The press release also falsely claims that Neuhaus' entity and Sandhu's entity would pay a
premium over the market price to invest in Universal and fund the company. In fact,
Neuhaus and Sandhu had paid substantially less than current market prices for the Universal
stock they had acquired and re-sold.

41. Neuhaus, who had been selling approximately 500,000 Universal shares per day prior to May
23, 2002, sold more than three million shares before the close of trading. He received total
proceeds of $80,180. [Exhibits 27a-27b]

42. I have determined in my investigation and have requested documents from a Canadian
brokerage firm that show that Spiga, at Sandhu's direction sold about 1 million shares of
Universal stock on May 23 and an additional one million shares on May 24. He received
proceeds of about $64,000.

C. July 10, 2002 Announcement of $460 million Letter of Intent

43. By July 9, 2002, Universal’s stock price had again drifted down to $0.02. On July 10,
Universal issued a press release announcing that "in addition to its previously announced
$100,000,000 in venture funding commitments, . . . [Universal] has received a letter of intent
from a funding institution for $460,000,000." [Exhibit 28]

44. The press release was based on a letter Universal had received from a loan broker. [Exhibit
29] In fact, Altomare did not have an agreement for the purchase of the assets and Altomare
never delivered to the broker promised bankruptcy court documents supporting the value of the assets. In addition the letter of intent had been delivered not by a funding institution, but
by a loan broker that had no available funds of its own to invest.

D. November 21, 2002 Announcement of $25 Million in Additional Funding

45. On November 21, 2002, Universal issued a press release that began: "In further preparation
of its planned acquisition programs, Universal announced additional funding of $25,000,000
from Transamerica and New Millennium Financial." Quoting Altomare, the release
continued, "This funding, in addition to previously announced funding of $100,000,000 and
$460,000,000 . . . is designed to advance our delivery network capabilities and obviously add
revenues and personnel infrastructure. . . . [H]aving the continued financial and corporate
confidence of so many respected institutions continues to empower all of us at Universal. . . .
This $25,000,000 brings our total financial commitments to $585,000,000." [Exhibit 30]

46. The press release was materially false and misleading. It was based on letters from
Transamerica Business Capital Corporation ("Transamerica") and New Millennium Financial
Corp. ("New Millennium").

47. The Transamerica letter was merely a tentative "funding proposal letter" for a $20 million
credit facility in connection with a proposed acquisition. The third paragraph of
Transamerica’s letter explicitly stated: "It should be emphasized that the following is only a
letter of proposal and it is not intended nor should it be construed as a commitment on the
part of Transamerica Business Capital Corporation." [Exhibit 31]

48. Likewise, the New Millennium letter was a tentative letter of intent, and not a commitment
for a $5 million credit facility. [Exhibit 32]

49. Universal never received any funding from Transamerica or New Millennium.

50. Altomare knew that the letters from Transamerica and New Millennium did not represent
actual financial commitments. After becoming aware of the press release, Transamerica stated in a December 15, 2002 letter to Altomare that the announcement “incorrectly states
the facts” and Transamerica “expects that the misstated facts in your press release will be
promptly corrected.” Universal failed to correct the release after receiving Transamerica's
complaint letter. [Exhibit 33] Altomare also knew that his discussions with brokers
regarding the $460 million in funding had long since terminated.

E. April 9, 2003 Announcement of $300 Million in Funding

51. On April 9, 2003, Universal issued a press release with the headline "Universal Express Inc.
("Universal-L") – Receives $300,000,000 For Transportation Funding." The release then
asserted that the company "to-day received $300,000,000 in committed and approved funds
and plans to acquire a soon to be announced nationally established transportation company.
A Letter of Intent with that Company to be acquired has been signed . . . ." Quoting
Altomare, the release further stated: "The formal closing should be concluded in 75 days or
less, and a specific announcement will be made by both parties at the appropriate time . . . ."
The purpose of this preliminary announcement, according to the release, was "simply [to]
inform[] the public of [Universal’s] financial capability to now effectuate a transaction of this
size . . . ." Continuing this theme, the release also observed: "During the developmental
stages of any company, that company may receive financial commitments based on the
funder’s due diligence requirements . . . . To-day’s commitment is far more definite and it is
for that reason a press release has been issued." [Exhibit 34]

52. The press release was materially false and misleading. In December 2002, Universal
convinced Coach USA to sign a letter of intent for the sale of its assets to Universal.1 The proposed terms required Universal to pay half the purchase price ($300 million) in cash at the
closing, which was to occur no later than March 31, 2003. [Exhibit 35]

{1 Based on my investigation I determined that Coach USA was an American subsidiary of Stagecoach PLC, a public
company based in Scotland.}

53. In early March 2003, Millennium Capital, LLC ("Millennium"), an investment banking firm,
proposed to Universal a three-party financing program for the acquisition. Millennium's
funding program required Universal to find a commercial bank that would bear the entire
credit risk associated with Universal's ability to repay the $300 million. Universal was
unable to find a commercial bank to participate. Further, on March 28, 2003, Millenium
delivered a term sheet that was to expire in five days after delivery, or April 4, 2003.
[Exhibits 36a-36b; Exhibit 37]

54. When Universal's April 9, 2003 press release was issued Universal’s letter of intent with
Coach USA had expired, no bank willing to participate in the funding program had been
found, and Millennium's proposal had expired.

55. On April 29, 2003, Coach USA informed Universal that it did not wish to have further
acquisition discussions. In early June 2003, Coach USA's parent announced that it had
signed an agreement to sell a significant portion of the Coach USA assets to another buyer.
Universal and Altomare, however, continued to represent to investors in various promotional
materials that Universal had financial commitments of $300 million until at least September
2003. [Exhibit 38; Exhibits 39a-39b]

F. Announcement of Airline Acquisition

56. In fall 2003, Altomare and the owner of North American Airlines ("NAA") signed an option
for the sale of the airline to Universal. To fund the 50% non-refundable $1 million deposit
required by the owner, Altomare and Neuhaus agreed that Neuhaus would wire the $1
million on Universal’s behalf in exchange for 20 million "free trading" Universal shares and
20 million restricted Universal shares. [Exhibit 40] With Universal’s stock trading at $0.05 at that time, Altomare and Neuhaus knew that Neuhaus could recover the entire $1 million cost
of the deposit by selling the 20 million "free trading" shares.

57. On October 7, after NAA’s owner resisted Universal's requests to issue a press release
announcing the contract, Neuhaus sent the owner an e-mail stating that SEC rules required
Universal to make a public announcement. [Exhibit 40] After receiving Neuhaus’ e-mail, the
owner relented and on Sunday, October 12, Universal issued a press release announcing the
contract. In an apparent attempt to convince investors that Universal and Altomare had a
serious stake in completing the acquisition, the release, quoting Altomare, stated: "We have
paid a $1,000,000 deposit, 50% of which is non-refundable." [Exhibit 41]

58. The release was materially false and misleading. It failed to disclose that the deposit had
been financed through an illegal issuance of Universal shares to Neuhaus and that Neuhaus
planned to sell the shares into the market after the announcement. Neuhaus admitted that he
and Altomare had discussed disclosing the $1 million deposit and that he had reviewed a
draft of the press release that included the statement regarding the deposit. [Exhibit 9a, pp.
107-109]

59. On October 13, 2003, the first trading day after the release was issued, Neuhaus sold 1
million share of Universal stock and thereafter an average of about 1 million shares per day
for several weeks. By October 22, 2003 he had received total proceeds from these sales of
$1 million. [Exhibit 42]

60. When Neuhaus failed to wire a second required deposit on November 14, 2003, Universal’s
option to purchase NAA expired. On November 21, NAA issued a news release announcing
the termination of the deal. [Exhibit 43] On November 24, 2003, Altomare issued a press
release stating: "During the 45 day due diligence period, our accountants raised questions regarding substantial liabilities and doubtful future revenues of NAA." [Exhibit 44] In an
interview the owner of NAA told me that prior to the November 14, 2003 expiration of
Universal's option, Altomare never suggested that Universal’s accountants had identified any
problems with North American’s financial statements, but instead had affirmed as late as
November 13, 2003 that Universal would exercise the option. [Exhibit 45]

G. Fraudulent Statements Regarding Private Postal Network Membership

61. Each of Universal’s eight most recent filings with the Commission falsely stated that its
private postal network, called WorldPost, had 8,000, and in later filings 9,000, members.
[Exhibits 52a-52b] In response to a SEC subpoena sent by me requiring Universal to
produce documents supporting this representation, it produced no responsive documents.
Universal recently created a WorldPost website that provides a search functionality for
locating a member store in a particular zip code and city. I recently talked to three owners
and managers of postal stores listed as WorldPost members on the website and each told me
that their stores were not members of the WorldPost network and that they had never heard
of WorldPost, the private postal network, or Universal.

H. False Statements Concerning Naked Short Selling

62. A September 23, 2003, Universal press release suggested that "naked short selling" could
have artificially depressed Universal's stock price. [Exhibit 46]. In early October, Altomare
indicated in an interview that without the downward pressure of "naked shorting" Universal’s
share price would be much higher. [Exhibit 47]. In a subsequent interview with Dow Jones
Newswire, Altomare stated that Universal provided the SEC with 11,000 to 12,000 pages of
documents in response to a subpoena requesting documents relating to short selling of
Universal shares. [Exhibit 48]

63. In fact, Universal’s total production of documents in response to that SEC subpoena was only
295 pages, none of which provided evidence that investors or brokers were intentionally
failing to deliver Universal shares as claimed by Altomare when he claimed there was naked
short selling of the stock.

64. Also, it appears that at the time there was only limited naked short selling of Universal stock.
as of September 30, 2003, the total "fails to deliver" at National Securities Clearing
Corporation were only 370,929 shares or .067% of Universal’s 552,027,232 shares
outstanding on that date. [Exhibit 49] In addition, none of Altomare’s statements regarding
naked short selling disclosed Universal’s issuance of nearly 400 million Universal shares
pursuant to the illegal funding scheme for Universal detailed herein whereby Universal stock
was re-sold into the market.

I. False Statements In SEC Filings And To Auditors

65. Each of Universal's periodic filings with the Commission from its June 30, 2001 Form 10-
KSB through its December 31, 2003 Form 10-QSB made materially false statements that
concealed the illegal arrangements between Universal and Neuhaus, Sandhu, Spiga, and
Mendiratta to distribute Universal stock to the public for purposes of financing the company.
Each of the filings stated falsely that the shares issued as part of the distribution were
"deferred services" or "advisory fees . . . prepaid to consultants retained by the Company to
provide advisory services." Most of the filings also falsely stated that the funds transferred to
Universal by Neuhaus, Sandhu, Spiga, and Mendiratta were payments for "stock rights,"
which the filings defined as "amounts received from investors for their future rights to
purchase shares of stock." [Exhibit 50]

66. Gunderson prepared a consulting agreements between Universal and Neuhaus that obligated
him to provide services for Universal. Universal prepared agreements for Mendiratta's nominees and Spiga. In his sworn testimony Sandhu asserted his Fifth Amendment rights
and refused to answer questions about whether he or his entities provided consulting services
to Universal. Mendiratta's attorney has informed me that he will assert the Fifth Amendment
if questioned about these matters. The only services Neuhaus provided was to agree to put
Universal's logo on his race car. [Exhibit 9a, pp 207-208]

67. In an apparent effort to explain the transfers of money from Sandhu and Neuhaus to
Universal, Gunderson also prepared false restricted stock purchase agreements which were
apparently backdated that purported to obligate Spiga and an entity controlled by Neuhaus to
buy restricted Universal stock at prices substantially higher than the current market price for
unrestricted stock. [Exhibit 8a] These false documents as well as the consulting agreements
were provided to Universal's auditors. The purported stock purchase letter signed by
Universal and Spiga was dated August 10, 2001. The fax date stamps on the fully executed
agreement, however, indicate that the agreement was actually signed on August 20, 2002, a
few weeks after the audit started. In addition, all of the certificates representing the restricted
shares supposedly purchased by Neuhaus's entity and Spiga during Universal's 2002 fiscal
year were issued on October 2, 2002, a few days after the audit was completed.

68. During the 2002 audit, Universal's auditor apparently questioned the more than $2.1 million
in transfers to Universal from Neuhaus and Sandhu during the 2002 fiscal year. In response,
Universal delivered to the auditor four separate restricted stock purchase letters between
Universal and Neuhaus's entity and another between Universal and Spiga purporting to
obligate Neuhaus's entity and Spiga, respectively, to purchase restricted stock at $0.32 per
share and thereby permitting Universal to assert that all the wires were payments for the
restricted shares. [Exhibits 8a-8e]

69. Universal further misled the auditors to believe that the wires transferring money from
Sandhu, Spiga, Neuhaus, and Mendirrata's nominees to Universal were payments for "stock
rights" rather than the purported S-8 shares by including the wires in lists of "stock rights"
payments delivered to the auditors. [Exhibits 51a-51b]

70. Further evidence of the falsity of the statements quoted in ¶ 65 is the fact that Sandu, Spiga,
Neuhaus, and Mendiratta through his nominees made substantial payments to the company
contemporaneously with the issuances of Universal stock. Such payment back to the
company are inconsistent with the claim that stock issuances were prepayments for future
services.

71. One Neuhaus transaction demonstrates his payments to the company were for purchase of S-8
stock and not for "stock rights." On June 24, 2001, Universal issued 7,496,300 purported
S-8 shares to Neuhaus. [Exhibit 14a] On June 26, Gunderson sent Neuhaus a fax explaining
how Universal had calculated a price per share of $0.01334 based on a 42% discount to
Universal’s current trading price and then used that price to determine the number of shares
to which Neuhaus was entitled based on his forthcoming wire of $100,000 to Universal.
[Exhibit 14b] The fax stated: "Mark – Friday’s Close (6/22) .023 X 58% = .01334.
$100,000 / .01334 = 7,496,251.8 shares, rounded up to the Cert. for 7,496,300. Pls confirm
wire was sent." Shortly thereafter, Neuhaus wired $100,000 to Universal's account. [Exhibit
14c]

72. By categorizing the shares purchased by the re-sellers as payments for future consulting
services, Universal's statement of shareholders’ equity failed to reflect accurately the
transactions between Universal, Spiga, Sandhu, Neuhaus, and Mendirrata.

73. I declare under penalty of perjury that the foregoing is true and correct.

Executed on the 24 th day of March, 2004.
/s/______________________________
Hugh Beck
Securities and Exchange Commission
1801 California Street, Suite 1500
Denver, Colorado 80202
303.844.1000

IPRE has no such history.

GO IPRE!!

--------------------
Making it a little at a time....Now is the time to determine if you are a man or a mouse.

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vinnie1
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LOL to much
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idreamer
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people you all better buy karate kid movie that what IPRE is all about .

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idreamer

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BlindMellonChitlin
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Tit for Tat.

As long as the CLOWN spams on the IPRE thread he'll get the same kind of treatment here.....LOL

--------------------
Making it a little at a time....Now is the time to determine if you are a man or a mouse.

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vinnie1
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hey karate kid made money so will ipre
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BlindMellonChitlin
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USXP has a looooong history of conning traders with scam 'deals' and BS PR's. IMO

--------------------
Making it a little at a time....Now is the time to determine if you are a man or a mouse.

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idreamer
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i hope you guy in IPRE make some money i really do. but don't be bashing USXP because it's a good stock short or long term who care it's all about make money ok.

--------------------
idreamer

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BlindMellonChitlin
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Hey DIPSTICK....YOU started this. Now buzz off.......

And by the way....stating FACTS is not bashing.

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Making it a little at a time....Now is the time to determine if you are a man or a mouse.

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vinnie1
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i dont think dreamer is older then 18
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Intimatrader
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I appreciate everyones insights .....But I'd have to say as I have all along .....That there are two stocks heavily discussed on this board that I believe will make it to a dollar . And the more I read ...the more I am convinced of it ....I can not tell you when ....But I can tell you I am sure they will get there ....USXP & RSHN....

And both theses stocks will be going up and down ...Frustrating many untill the mass day trading is done ....But there will be a time when investors take over the bulk of buying on these two stocks . I hope this is when USXP now moves steadily forward ....And it might be ...But if it is not { no big deal } I will continue to ride out the spikes and dips . I am sure these two are good investments ....Might retire from them ..who knows ..... [Big Grin]

Posts: 365 | From: redlands | Registered: Mar 2006  |  IP: Logged | Report this post to a Moderator
Intimatrader
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HEY GUYS ! Why call him names ...He bought at .0041 .....He has profit right now .....Congradulate him ....not insult him .....We are are able to share on a positive level here ...LET"S DO IT .....

If they won't ....I will ...CONGRADULATIONS Idreamer .

Very good job there [Smile] [Smile]

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shall143
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IVGA, same sector as USXP. This one is going to run soon, been getting alot of alerts lately from Stock Guru. It's a matter of time.

Also V W K M is in media, paying a 15% dividend June 1St. should make a nice run into the Divvys.

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shall

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BlindMellonChitlin
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C'mon guys.......I know there are a lot of you (like me) holding some USXP stock. It's slowly rising, although why is a mystery to me.

If/when RA decides to produce some information on ANY of his BS PR's and webcasts it might even make it to 2 cents again.

At least take a swipe at RA or post something to let the world know that there is still some life in this one.

--------------------
Making it a little at a time....Now is the time to determine if you are a man or a mouse.

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McShooter
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Is Idreamer really Stocksforfun? Sure does type sentences (not in English} just like him!!!

500 into 100K...You Gotta' Believe!!!

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amswap
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I don't consider asking serious questions bashing. Pennies (even terrible ones like USXP) can make you money. Pennies are not investment stocks. idreamer has pumped this stock over and over and goes to other threads and bashes stocks and pumps this one. There is nothing good about this stock. Yes, you can make some money at it. For an investment, there is nothing to invest in. RA is a liar and will say anything to pump this piece of trash up. Take the money and run when you can. But it as cheap as you can, make a little and run. Buy back in when it dips because it always does. You might have to sit on it for a few weeks to make something a lot of the time. His company does not make money. He has lied about getting loans among many other things. He has been investigated and is currently in litigation with the SEC who filed against him. He claims to have won a $700 million settlement, yet there is no where that you can find this information. I have filed a complaint with the SEC about his lies. This man can't be trusted. Be forewarned before attempting to get into this and know that it is very risky.
I repeat that you can make money here. If you buy enough shares and the price moves .0001 a share you will make money. For an investment there is no way you should consider this one. I don't think you should consider any penny an investment. It too versatile a market for that. That's my 2 cents.

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Intimatrader
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Wrong amswap ...USXP is a bad stalk to those that have not made money on it { and those that have lost money on it } . It is an OK stock to those that hope too .And I bet it's a great stalk to those that have made BANK on it .

So what is it ? ..........Answer ---> I belive it will become a much higher price stock ....Over a dollar per share without a reverse split infact .

Posts: 365 | From: redlands | Registered: Mar 2006  |  IP: Logged | Report this post to a Moderator
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