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Anatomy of Stock Fraud

This is a description of the largest penny stock pump and dump fraud in US history that I'm aware of: the people involved and how it was done.

Based on months of research and talking with many of the people involved in these stock promotions, 

here is my belief of how Bryan Kos and Jeremy Jaynes, Don Oehmke, Tom Heysek, Howell Woltz, Warren Hansen, Jere Ross, and others were involved in a scheme that defrauded hundreds of people out of over $20 million.

On October 4, 2006, the US Attorney filed these charges against former Judge Sam Currin which validates the information you can read below. In the US Attorney's charges, Mr. J=Jeremy Jaynes, O=Don Oehmke, Mr. K=Bryan Kos, Mr. R=Jere Ross, and Mr. H=Walter L. Hannen, Sr.

On April 23, 2008, this indictment against Bryan Kos and David Hagen was filed by the US Attorney.

On April 18, 2006 Howell Woltz got arrested by the FBI. He's currently in jail without bail. On September 5, 2006, the Virginia Court of Appeals upheld the nation's first felony conviction of illegal spamming against Jeremy Jaynes. He should shortly begin a 9 year prison term.

This page started innocently enough. By late August 2004, I had received 18 "pump and dump" faxes from what appeared to me to be the same people, so I decided to find out who sent them so that I could bring legal action(s) against the perpetrators in court. That's in fact what I did and I've now won multiple judgments against Tom Heysek. I'm currently (as of March 21, 2006) involved in  three different law suits with certain people/entities named on this page.

This page documented what I found in my research for my cases as I sought to put together a case for legal liability of the person(s) responsible and understand how they did this so I could describe it to the court and submit this web page (both in printout form as well as the URL itself so the judge could more easily explore the backup information by clicking on the hyperlink) as my collection of evidence in my trials in small claims court. This is a much more digestible form for the court than the over 500 megabytes of computer files I accumulated during my research. So I used a web page for my own legal cases and for use of the court in inspecting the evidence. The most important audience for this web page is the small claims judge in Palo Alto, CA. 

Even though the contents of this page is privileged under CA CIV 47, because this is being done in a public forum, I have tried to author the page as if the privilege didn't exist, i.e., everything is accurate. If I have made a mistake, I am happy to correct legitimate errors that are pointed out.

But I also realized that my page may be useful to others  such as the FBI, SEC, and DOJ and anyone else who might have information to help me win my cases or who might be bringing litigation of their own. The web has proven to be invaluable for this as well as I have been contacted by many people who have contributed very useful information that has helped me understand what happened and who is liable and win my cases. In return for the help I've received, I've added additional information that might be useful to others contemplating legal action.

Millions of junk faxes were sent out, lots of people lost a lot of money, and I believe this is among the largest penny stock scams in US history, which makes the research I have done in my case a matter of significant public interest as well.

Note: The people involved changed throughout the promotion period. The term "they" normally refers to the masterminds and legally liable co-conspirators behind the fraud, e.g., "they made $20M."   Most of the people mentioned on this page are players, i.e., they were involved in some way, but were not responsible or criminally liable for the fraud.

If you are a victim of the fraud described here,  you can join this Yahoo group. This is a moderator-post only group so you will only receive a small number of critical emails a month regarding legal actions that are being taken (if any):

Yahoo! Groups cnddStockFraud

If you lost funds, it is critical that you register the amount that you lost here:

How much did you lose CNDD, AHFI, TWTN, BDYS, SGNJ, BHLL

so that you can be contacted in the event someone can help you or you can help someone else bring legal actions.

Note: One of the players told me he thought the total take was close to $100 million.

Jaynes was sentenced to 9 years in prison, but that was for spamming; he's never been arrested for stock fraud and he's never served any time in jail since his case is being appealed. The people who were charged by the SEC, even if they lose their SEC case, will spend no time in jail for that action and then may just do it again, hoping not to get caught. Why? Because the worst the SEC can do is just force you to return the profits that they can locate. Some people believe that it's just smart business to keep doing the scam over and over again since the worst that can happen is that you get reset back to zero, but the best outcome is that the SEC can't find the money and you get to keep it all, even if you lost the suit.

Most recently calling themselves:
PrimePennyStock aka Penny Stock Investment Advisor – Penny Stock Guide
and promoting BHLL. But no longer (as of 5/16/05).

Were (for a while after Tom Heysek stopped being involved) calling themselves
Penny Stock Investment
www.pennystockinvestment.com
www.shesahoe.com
www.efficientleads.com
(these sites are defunct as of 1/10/05, just days after I posted this)

with a sister site:
www.pennystockpro.com
Penny Stock Investment Advisor

Previous websites associated with one or more of the people mentioned here include:
www.WinningStockPicks.net
www.uspennystocks.com
www.hotstockfinder.com
www.hotstockpicks.net
Fire Your Broker! Stock Picks (FYBSP)
www.thepennystockpicker.com
Micro-Cap Hot Stock Picks! (MCHSP)
The Micro-caps News
Wall Street Stock$ (WSS)
Hot Stock Picks (HSP)
The BEST Penny Stock Picks! (BPSP)
PowerHouse Stock Picks (PSP)
Big Profits Stock Picks (BPSP)
Winning Stock Picks (WSP)
Hot Penny Stocks! (HPS)
The Penny Stock Investor
The $tock Insider
The$tockInsider
The Stock Insider
TheStockInsider
The Street Insider
streetinsiderstockpicks.com
TheHeysekReport
TheHey$ekReport
"Meatloaf" (on Raging Bull)
www.greatstock.net
hotstockcenter.com
Newsletter: The Optimist (TO)
Investor Letter: Market Cents (MC)
Hot Stock Finder.com
Worldwide Picks LTD
The Stock Profit: 
 

From their former www.winningstockpicks.net website:

Tom Heysek, the Editor of the WSP newsletter and our financial guru, has extensive experience in stock investment analysis and financial forecasts. His stock tips and financial expertise help WSP members to make informed investments! 

I don't believe that. Nor do I believe that their criteria to be "selected" by them for profiling is true either. The website was part of the scam.

This page explains who was involved, how they probably did it (educated guess based on the evidence I uncovered), and how they illegally made tens of millions of dollars in full view of the public without getting arrested or stopped. 

Here's the evidence of heysek's liability I prepared and submitted to the court in my cases against him. I recommend you not sue him. I believe he is no longer involved in illegal activities.

Note to law enforcement: There is more information posted on a secret website if you are a government agency investigating this case. Use the contact link.

Note to all readers: If you believe any of the information below is incorrect (false or misleading), please use the contact link and let us know exactly what is incorrect and how you know that (e.g., objective evidence supporting your claim) and a way to contact you to discuss the matter.

UPDATES

11/28/06: The Securities and Exchange Commission announced that on November 28, 2006, Chief Judge William J. Zloch, United States District Judge for the Southern District of Florida, entered a Final Judgment of Permanent Injunction and Other Relief against Defendants Bryan Kos and Donald Oehmke. The Final Judgment entered with the consent of Kos and Oehmke, enjoins them from violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Additionally, the Final Judgment permanently enjoins Kos and Oehmke from participating in an offering of penny stock and from participating in an unregistered offering of securities while acting as, or on behalf of, or in association with an issuer, underwriter, broker or dealer of securities. The Final Judgment orders Kos to pay disgorgement in the amount of $499,573.00, prejudgment interest of $29,573.00 and a civil penalty of $120,000 and orders Oehmke to pay disgorgement in the amount of $1,095,177.00, prejudgment interest of $109,307.00 and a civil penalty of $250,000.00.

The Commission commenced this action by filing its complaint on February 14, 2005, against Kos and Oehmke, among others. The complaint alleged that Kos and Oehmke defrauded investors by artificially creating demand for stock they owned in Concorde America and Absolute Health through unauthorized and false press releases, facsimile and e-mail spams, internet websites, promotional videos, and automatic voice-mail messages since approximately 2004.

For more information, see Concorde America, Inc., et al. Lit. Rel. No. 19948 - December 18, 2006.

4/24/06: Hearing is held to determine bail for Howell and Vernice Woltz. See WoltzBailObjection.pdf. Judge says no bail. It appears they may be spending the rest of their life in prison.

4/20/06: I find out that I'm not the only person Howell has sued. I reported that David Hagen of GTXC used Woltz. This article solidifies that connection since it references a court case where Sterling is suing GTXC.

4/18/06: Howell and his wife Vernice are arrested by the FBI at their home in Advance, NC. See:

• currin_indictment

• AP Wire 04-18-2006 Former U.S. attorney in N.C. indicted in tax fraud case

• NBC 17 - News - Former Helms Aide, Prosecutor Charged With Tax Fraud

3/24/06: SEC files new documents in the Bio-Heal case. The wire transfers info beginning on page 103 connects Sterling Trust (Anguilla) LTD with BELA Enterprise LTD. Bela caused money to be wired to Hansen, Currin law firm (Jaynes' attorney), and I-Max Direct, a media firm used by Jaynes and Kos.

3/1/06: Howell Woltz, Vernice Woltz, and Sterling ACS file a libel lawsuit against me in the Bahamas.

1/20/06: Warren Hansen's lawyer contacts me complaining that the info about Hansen is false and malicious. I re-validate the information with various sources and update the section on Hansen to add even more material. It is now quite a bit more extensive than it was and more people are implicated. I ask Hansen's attorney for specific statements that are erroneous so that they can be corrected. They are unable to cite any factual errors. I have the conversation on tape.

7/19/05: Tom fails to show for the contempt hearing. Judge issues a warrant for the arrest of Thomas M. Heysek. I later let him off the hook in exchange for some documents that I turn over to the SEC.

5/12/05: Tom fails to show for his contempt hearing in Palo Alto today at 2pm.  I applied ex parte for a civil bench warrant for his arrest today. Also, I noted that the Penny Stock Investment Advisor site is now kaput.

4/25/05: Bio-Heal Laboratories, Inc. (BHLL) complaint filed by the SEC. Many of the same key players (e.g., Kos, Jaynes, Oemke, Woltz, Hansen) appear to be involved in this one as well (see entry above at 3/24/06)

3/28/05: Now calling themselves: PrimePennyStock aka Penny Stock Investment Advisor – Penny Stock Guide and promoting BHLL. For more on BHLL and Kos, see the lead story at The Our Street Report as well as StockLemon.com. It's the same cast of characters promoting this stock according to the BHLL complaint filed by the SEC  on April 25, 2005. Note that the stock went to Ventana Consultants (Don Oehmke) again.

3/17/05: SEC takes action against BDYS and it's CEO. They were a Heysek-promoted company. See Bodyscan Corporation and Anthony Sciuto Lit. Rel. No. 19141 - March 17, 2005

2/16/05: SEC takes action against the main players listed below with a very extensive amount of evidence filed; they found they made nearly $28M on CNDD and AHFI alone!

• Court Freezes Assets of Penny Stock Pump and Dumpers Lit. Rel. No. 19085 - February 16, 2005

• SEC's complaint filed in Federal Court in Southern District of Florida (2/14/05)

• I've posted some of the most interesting Exhibits in the SEC case here (hundreds of pages): Index of -fax-profiles-wsp-SEC

• To see all the documents, if you have a pacer account, goto: http://pacer.flsd.uscourts.gov. The case number is: 05-CV-80128.
  For the BHLL case (filed 4/25/05), the case number is: 05-CV-21116

1/3/05: Heysek showed up and contested the case but I won all 8 cases in Palo Alto Small Claims Court (1pm at 270 Grant Av). So Heysek now owes me about $47,000 plus interest for the 18 faxes that he asked him to sue him over.

12/15/04 UPDATE: Heysek is definitely a man who just can't seem to stay in one place for very long. Heysek normally rents, rather than owns. This makes it harder to collect judgments. He apparently hasn't been a very good tenant though. According to Marin County Superior Court records (you have to actually go to the courthouse to look these up on the computer there; it isn't available on the Internet), Heysek has had 7 unlawful detainers filed against him since 1997 (he's averaging about one a year). In addition to the unlawful detainer suits, there is also a case in Marin of Heysek's own attorney suing him! Heysek is currently suing his previous landlord. Heysek was living at 41 CONSTITUTION DR, CORTE MADERA CA 94925. No longer. He's gone as of September 30, 2004. And he also cleaned out his office at 50 California Street Suite 1500 in San Francisco and disconnected his phone with no forwarding number.  Heysek is using Brian F. Kram (California attorney) on his case against his former landlord, just as he did on mine. The attorney representing Heysek's former landlord is Mary Casserly (510-913-6986).

12/9/04 UPDATE: Heysek didn't show up for my 10 small claims cases against him for sending me the junk faxes. I won a default judgment for $25,000. As far as I know, other than my $25K judgment against him for sending junk faxes, and Mayflower's $35K judgment (present value with interest) because he stiffed them (case citation is below; Norman S. Marshall is the attorney at 626 449 1732 x17), there aren't any other judgments against him. Just goes to show how you can scam people out of millions and walk away (relatively) unscathed. His next chance to defend himself is January 3, 2004 at 1pm in the Palo Alto, CA courthouse.

Typing in the URL for AHFI (www.ahfi.net) used to bring up the uspennystocks.com site! Here it is preserved for posterity showing the link between AHFI and Kos: ahfiWhois.pdf. 

Other sites discussing the AHFI scam are here:

• 2004 Junk Fax Suit

• Fight Back!!! -- 2004 Credit Suit.

11/22/04 UPDATE: The winningstockpicks.net and uspennystocks.com sites have been shut down. Fortunately, I created a PDF file of every page of USPennyStocks.com at uspennystocksSpider.pdf so you can find the criteria page above as well as other pages in this PDF. I also spidered their website in HTML form before they took it down, but this isn't posted on the web (let me know if you need it). Also, they've changed their identity yet again. They are now called www.pennystockpro.com aka Penny Stock Investment Advisor - Penny Stock Guide and are currently pumping AHFI where they recently (12/3/04) moved as many as 10 million shares at $3/share. 

The disclaimer on the www.pennystockpro.com site used to say (e.g., on December 5, 2004): "PennyStockPro.com is not affiliated in any way with Tom Heysek or Winningstockpicks.net." They removed it a few days later... since it certainly raises a lot more questions than it answers! Of course it's still probably Bryan Kos and crew. Just putting a Disclaimer saying it isn't doesn't make it true.

Also, www.hotstockfinder.com used to promote AHFI, but they pulled the website. Here's the cache of the www.hotstockfinder.com site before they did that: HotStockFinder.pdf

These guys made a big mistake: they sent me a unsolicited fax. I'm the last person on the planet you want to send a junk fax to.

Here are 18 faxes I got from Winningstock picks: wsp18faxes.pdf. It appears that some of these were sent by Protus IP Solutions. But we also know they used fax.com, e.g., see page 5 of VerifiedSamplesJul04 which promoted TWTN, another WSP stock. I also verified this with former employees at fax.com and there is extensive evidence that proves that fax.com sent out these promos.

I've never lost a junk fax case because I'm always super careful to only sue people I can prove are liable. 

This case was intriguing because of the sheer volume of spam they've sent out as well as the incredible lengths they've gone to in order to make themselves "invisible." They tried to hide behind a company manufactured in Anguilla (where it's illegal to disclose who formed the company), used an address in the Bahamas (out of reach of US law), and used their Florida legal firm's bank account to make vendor payments in order to hide behind attorney-client privilege so that there is no person nor company to sue. 

When I called Heysek, he denied sending the faxes and dared me to sue him. Tom said I was a "chicken" if I didn't sue him. He said he was counting on my suing him and would be really disappointed if I didn't.

Well, to be honest, that ticked me off. Chicken eh? So I took this as a personal challenge. I have never found any spammer I couldn't uncover and these guys are no exception to the rule. 

In fact, after I figured it out, Tom changed his mind and told me not to sue him!!! Unfortunately for Tom (and his gang) his request came too late. He's not calling me a chicken anymore.

It was quite an adventure. I've spent several hundred hours over two months (July and August 2004) trying to figure out exactly who these guys are and how they do it. There were hundreds of pieces to this puzzle and I was able to piece just about all of them together.

This page is published to help aid those people (including myself) who are investigating this matter as part of a legal action. It is also posted as an aid to people who are thinking about suing those people who are truly responsible for sending the faxes and/or the stock fraud. Or even if you are merely curious as to how e-mail spammers make money, you'll find the story a fascinating read; how people can illegally make tens of millions without anybody in law enforcement stopping them until just recently when one of the core players, Jeremy Jaynes, was sentenced to 9 years in prison by a Virginia jury; but that was for spamming, not for illegal stock promotions.

So in what follows, I will explain what the all evidence I got indicates. While the stuff done here is obviously criminal, I am not accusing anyone of a crime here. I am just reporting the facts based on my first-hand research (Internet primarily but using both public and proprietary databases), personal contact with the people involved (including personal conversations with Heysek, Kline, Ross, Rutkowski, Katz, Lord, the Woltz family, the Paulson brothers, Frappier, Cuadra, and several former employees of fax.com) and with evidence which I have been able to uncover through a large number of subpoenas.

This information has been shared with my contacts in the Attorney General's offices, the SEC, the FCC, the FBI, and the DOJ.

DEFINITIONS

"WSP" when used below means www.winningstockpicks.net  aka Worldwide Picks LTD (the company behind the websites). See the full list of former names at the top of the page. They changed the names they used often.

YOUR GUIDE TO THE PLAYERS

First, we introduce to you the cast of characters in our incredible-but-true real-life saga. The following people are covered here:

Jeremy Jaynes aka Jeremy Dagan Jaynes aka Jeremy O Jaynes aka Gaven Stubberfield (Cary, North Carolina)
A top 10 ROKSO e-mail spammer (see ROKSO page on Jaynes and Rutkowski). Hangs out mostly around the Raleigh and Cary, North Carolina area. Partners with Bryan Kos to engage in stock scam pump and dumps for due to high return on investment. Gets personally involved in the execution of promotions. 

Jaynes reportedly paid Ted Sampson $500K in cash to purchase 50% of Beyond Fitness/AHFI. Reportedly, Woltz was involved with this transaction.

Jaynes is kind of in a little trouble right now in Virginia. He was arrested and faced up to 20 years in prison for spamming: Raleigh businessman arrested on felony spam charges - 2003-12-11 - Triangle Business Journal and 12-11-03 - Spam Arrest. He got lucky and was sentenced to only 9 years by the jury. 

I spoke to the lead prosecutor on the case, Russell E. McGuire, and the following facts came out at trial (and reported in the press): Jeremy lists his net worth at $24 million and he was making at least $500K/mo in his spamming business before being arrested. 

Jeremy used to own Vinnie's Steakhouse & Tavern which is a real restaurant in Raleigh, NC, but he sold it in 2003. Food quality at Vinnie's has reportedly declined under the new management so perhaps this was a bad move. 

As noted in news articles, Jaynes also is a part owner of Beyond Fitness aka AHFI aka Sampsons' Gyms (919-816-9853), which is one of the stocks promoted by WSP. So it wasn't just two email spammers joining forces... Jaynes was a stock promo client of Kos and, in turn, Jaynes helped Kos with the promotion. Crooks helping crooks you might say. For more info, see Raleigh spammer faces prison time (Nov 14, 2004).

Moral of the story: Jeremy should have stuck to the restaurant business.

In the SEC's depo of Randall Rohm, Rohm said that in early 2004, Jaynes boasted of owning 10 shell companies and doing approximately 100 reverse mergers in the past four years and admitted that Kos was his business partner.

Jaynes used Howell Woltz for asset protection (concealing money transfers).

Attorneys used by Jaynes include: Sam Currin, Robert Shawn Wellons, both of whom have been indicted on criminal charges themselves (see Sterling entities information).

Bryan Kos (Quebec, Canada): Promotional top dog
Like Jaynes, Kos is also a top ROKSO e-mail spammer (see ROKSO page on Kos). However, he wasn't as successful as Jaynes. In early 2003, he didn't have much available cash.

Born and lived in the US (Sunnyvale CA, Scottsdale AZ, and Chicago IL). Went to high school at St. Viator High in Arlington Heights, IL. He's now based in Quebec partly because he thinks he'd be harder to get there and partly because his wife Caroline is from there. Kos and Jaynes hooked up in 2000 and are the top people which is consistent with their psych profile as well (i.e., they don't take orders from anyone). According to one of Kos' former associates I spoke with, Kos, like Kevin Katz (of fax.com), is very charming and charismatic in person. People want to like him and help him. Just like Katz, his charisma creates a huge sense of loyalty to him that transcends their better judgment. 

Kos is co-founder of SGNJ, a heavily promoted WSP stock. Not really surprising because the profit margins are much higher on a pump and dump when you own the whole company, rather than do it for someone else.

Kos' ROKSO page says this: "Another long time spammer. Normally spams for hire using free websites or "fake free websites" that either he, or a spamming partner run. Normally spams porn and illegal stock hyping schemes." 

Kos's main company is Internet Opportunities aka IOPS Inc aka www.i-ops.com aka Internet Promos LLC aka BK Ventures aka XTR Capital Resources, LLC based in Canada (see the ROKSO page for more info). He started IOPS around 1996. IOPS actually stands for "Internet Optimized Promotion Services." 

Kos is quite diversified as he describes in this e-mail excerpt from 2001 where he is recruiting for talent:

Internet Promos is an Internet company that owns an ever-growing number of Internet Properties. We own a Financial Education Center including many Financial Newsletters, Dating Services, as well as many additional Free Newsletters on diverse topics (such as: Health, Travel, Credit, Taxation, etc.) as well as an Internet Public Relations Firm specializing in the promotion of Public companies.

Note that he forgot to mention his porn business. Here's just one of the websites he created to promote the I-OPS turnkey porn business:  Koss porn promo.pdf. Kos will supply the porn expertise and marketing guidance; you run it.

As noted in the writeup, IOPS provides "investor relations services" as one of their core businesses. Investor Relations (IR) is the euphemism that they use to describe their illegal "pump and dump" stock promo business. For example, they provided "investor relations service" to Advanced Optics Electronics Inc. according to their SEC Form SB-S/A Filing of 9/21/01. 

He's been involved with promoting a lot of stocks including the WSP stocks as well as the stocks listed in the next paragraph.  

In 2000, Kos, started with Steve Reid (THE WIZZ KID) using the names "MOEBIUS-Emerging Company Reporter", Moebius "STOCK PICKS." In 2001, Kos switched to Heysek as  "The Penny Stock Picker" and The Heysek Report and Micro-Caps News. From April 2001 to April 2003, Kos and crew promoted the following roster companies: Wasatch Pharmaceutical (WSPH), Ziasun (ZSUN), UICO, ARSN, ESPB, ZABC, FASI, TELI, DDD, First Aid Direct (FADI) in 2001, Thaon Communications Inc. (THAO) in April 2001, VisualMED Clinical Systems (VSMD), Regency Group Limited (RGNC), MLM World News Today, Inc. (MLMS), Biomerica Inc. (BMRA), HouseHold Direct, Inc. (BYIT), CastPro.com (KPRC), Internet Venture Group, Inc. (ITVI), NanoPierce Technologies, Inc (NPCT.OB), KCS Energy, Inc. (KCS), Parallel Petroleum Corporation (PLLL), Contango Oil & Gas Company (MCF), American Bio Medica Corporation (ABMC), Bradley Pharmaceuticals, Inc. (BPRX), Lynx Therapeutics, Inc. (LYNX), Questcor Pharmaceuticals, Inc. (QSC), Align Technology, Inc. (ALGN), Derma Sciences, Inc. (DSCI.OB), Endocardial Solutions Inc. (ECSI), I-trax.com, Inc. (IMTX.OB), inTEST Corporation (INTT), MDSI Mobile Data Solutions Inc. (MDSI), Vital Images, Inc. (VTAL), EP MedSystems, Inc (EPMD), eUniverse, Inc. (EUNI), Ostex International, Inc. (OSTX), Carroll Shelby International Inc. (OTC BB:CSBI), and Genius Products, Inc. (GNPI).

Kos also promoted Geoffrey Eiten's OTCFN.com aka OTC Financial Network (OTCFN) a full-service financial communications and investor relations firm that specializes in emerging micro-cap companies listed on the OTC Bulletin Board (see Stock Profit About Us showing Kos' promotion). More about Geoffrey Eiten can be found here, Eiten posting on Silicon Investor, but the article is incorrect as I only found that Kos promoted OTCFN.

Here's more on Geoffrey Eiten aka Geoffrey J. Eiten:

• From New York Post Online Edition, Geoffrey J. Eiten: Arrested, convicted and sentenced to prison in 1984 for cocaine possession with intent to distribute, Eiten was dismissed by his next six post-incarceration employers, and thereafter opened a Web-based penny-stock touting firm called OTC Financial Network. The Web site lists none of his previous brokerage-industry employers, though it speaks of the "high esteem" in which he is held in the investment community and the fact that he has appeared as a "guest analyst" on CNBC's "Squawk Box" cable TV show.

• for more info, do a SiteSearch on Investrend.com for articles about Eiten, and the services he allegedly uses to hype LocatePLUS Holdings Corp (OTCBB: LPLHA), including TheSubway.com.

I obtained a copy of the Genius Products, Inc. contract with Kos, for example. The short story is that he gets paid based on a fixed dollar value of the stock calculated right before the promo starts. Specifically, in this particular case, the payments are:

• $50,000 in shares - price per share to be that on the day that the Company gives the "go-ahead"
• $25,000 in stock due the day the Company gives the "go-ahead"
• $25,000 due 30 days after "go-ahead" date

Therefore, Kos is incentivized to blow up the price as high as he can so he (and the company that hired him) can sell their shares at the inflated price.

Here's some more info on NanoPierce, for example, which Kos promoted sometime around April 2002:

The CEO of NanoPierce has been sued by the SEC three times for fraud. Their current stock promoter and past stock promoter is currently being sued for securities fraud for illegally promoting the scam stock.

See Nanopierce Technologies Inc., NPCT Paul Metzinger CEO, potential securities fraud NPCT.ob

Note: the author of that page is being sued by the current stock promoter for libel, but has won the first 5 rounds.

Here's a screenshot of the i-ops home page on April 18, 2001, showing The Penny Stock Picker and The Heysek Report: i-opsHeysekReport4-18-01.pdf. 

Here's a writeup on THAO on i-ops.com in April 2001: Thaon Communications Inc. (THAO)

Here's the pitch i-ops.com used to solicit "investor relations" (IR) business: i-ops.com Investor Relations "pitch"

Here is Bryan Kos management team. Caroline (who is listed on that page) is his wife, Caroline Kos aka Caroline Archambault. The key thing here is that the two top executives are Kos and Heysek.

In his SEC deposition, Bryan (like Oehmke) basically answered "Fifth Amendment" to most of the questions. In his answer to the SEC complaint, he denied everything.

His attorneys are William Nortman (based in Florida), and his long-time counsel, David J. Levenson (Potomac, Maryland).

Thomas M. Heysek aka Tom Heysek aka Milton Thomas Heysek aka "Meatloaf" (San Francisco, CA): The editor of WSP
The editor of winningstockpicks.net aka USPennystocks.com aka www.thepennystockpicker.com aka Fire Your Broker Stock Picks aka The Heysek Report aka Micro-Cap Report aka Micro-cap News aka Heysek Research Corp aka the Penny Stock Picker aka PennyStockPicker. Other newsletter names include "Exit Wounds" It's the same Tom Heysek behind all these entities. He's the "candyman" here, or should I say the CNDD man? He can take a company with no revenue and package it with his writeups (with the appropriate illegal fax and spam advertising) to a $2 billion dollar market cap (like he did with CNDD). He uses his real name probably to make things look more credible. 

He's one of the people liable under the TCPA for sending those junk faxes to you. See evidence of Tom Heysek liability for sending junk faxes which contains links to copies of the original documents that were used in the scam. 

Heysek's resume on the USPennystocks.com site (or look at p. 6 and 322 and 323 4MB archive of his past WSP issues) of is missing critical details of places of employment that have been expunged (like that he learned his craft under Ray Dirks at Security Capital in 1999 and that he worked at Med Gen) and other things have been "inflated" just like his stock writeups.

The "company that was re-named Asian-American Capital in 1993" mentioned in his resume was registered in Florida on May 2, 1990. It is Inactive, the Registered Agent resigned October 11, 1990, and the only officer listed is Thomas M. Heysek, 9887 N. GANDY BLVD., ST. PETERSBURG FL. His registered agent was Max C. Tanner of Las Vegas, Nevada. Max is currently serving an 8 year prison term for evading $2M on profits from an illegal stock swindle (NY Times, November 9, 2002).

More fascinating is Heysek's real resume, his broker file: Thomas Milton Heysek CRD#: 2375660 showing his real jobs and disciplinary action against him for entering into contracts that were not authorized, not telling the truth when confronted by management, placing stocks into accounts without their permission, mishandling customer funds, etc. Compare his Central Registration Depository (CRD) history with his self-proclaimed "resume" and it doesn't seem like you could possibly be talking about the same person since there is nothing in common other than it is absolutely the same guy (even the social security numbers match up; Tom uses at least 4 of them).

Heysek and his current wife, while still working for Securities Research and Analysis, Inc., moved from Florida to Santa Cruz, California in September 1996. We know that because Tom didn't pay the moving company. OK, it wasn't like he forgot or anything... According the Mayflower attorney, Heysek actually defrauded the movers with phoney papers. Mayflower filed suit against the Heyseks and won a default judgment of $21,980 on April 9, 1998 (1998 WL 184328 (N.D.Cal.)) which Heysek never paid. Are you surprised?

Heysek was very tight with Kos until I blew his cover and had been since around 2001. For example, a spam of  2/28/01 promoting CHWT and "The Heysek Report" is from stockfinder5@i-ops.com (see StockTalk Discuss ATEL - ACCESSTEL INC (#62-127)). Whoopsie! That was a mistake. i-ops.com is Kos. So we have proof that Heysek and Kos go way back to the beginning of 2001! There was a lot more. For example, http://www.i-ops.com/pennystockpicker/ used to host Tom's newsletter. See stuff below for more about Heysek and his training under Ray Dirks in 1999 (they have since parted ways).

According to his employment record on file with the National Association of Securities Dealers (CRD history), Heysek has held five jobs on Wall Street over the past decade, and has been fired from three of them, for offenses ranging from "unsatisfactory sales practices" to "improper handling of customer funds." That is neglected from his resume on his website. I'm sure that is probably just an inadvertent oversight that Tom forgot to mention. Also, Tom forgot to mention that in the midst of working for Kos, he also did double duty as VP Finance and Chief Compliance Officer at Med Gen Inc, according to the Med Gen Inc 10KSB filed on 12/20/01 (symbol: MDGN.OB) and then was VP Investor Relations and Compliance according to a Med Gen press release on January 14, 2002. That's the same company that brought you Snorenz where on March 29, 2001, the FTC found that the advertising was full of unsubstantiated claims and that they failed to disclose that a purported expert endorser featured in some of the infomercials for the product had an investment in Med Gen, giving him a financial interest in promoting sales of the product. Remember, Tom was in charge of Compliance at the company. 

Also, Tom fails to mention the name of the third party that paid for the promotions he does. That is a violation of SEC rules. SEC Regulation 17(b) as interpreted by the SEC requires the full compensation to be disclosed, and if from a third party, the specific source of the compensation and the relationship of the payer to the issuer (see the SEC statement at Investrend.com, for example).

And his track record of picks in his newsletter? Well, all I can say is that I could find the buy recommendations, but not the sell recommendations! Try for yourself. 

Here's his claimed buy/sell "track record": NewsletterTrackRecord.pdf

Here's what he actually wrote at the time: 4MB archive of his past WSP newsletters. Note: None of the magically timed sell orders listed on the track record can be found; just the buy orders. What a surprise!!!

I spoke to Heysek on 9/24/04. Heysek claims he has no clue who sent the faxes and who made the $40M+. He says he only gets paid $10K to $20K per month via wire transfer from the Bush Ross account that is set up to pay everyone. He said he talked to Hartley and got 14 pages of notes, had Hartley initial every page, and he then boiled it down to 2.5 pages. He asked me what I wanted. I said I wanted to know who sent the faxes. He said he hired a detective and he knows where they are coming from and he said it was all in-state so the federal laws don't apply (which of course he is completely wrong about). He refused to tell me the numbers the faxes were from saying I would have to pay for that information. He said he had no idea how anyone could make $40M+ on Concorde and had no idea who did it. He admitted he's talked to Kos, Oehmke, and Lord. In his court filing against me, he claimed his real name is Milton Thomas Heysek, but his real name (which I verified with his ex-wife) is Thomas M. Heysek.

For a guy who is so innocent, one has to wonder: 1) why did he want so desperately to quash the subpoena for his financial records? 2) why did he tell me he's closing all the accounts I discovered? Innocent people wouldn't have to do any of that.

Heysek tried filing Chapter 13 bankruptcy on 1/22/93 in Florida but then he requested his dismissed. Case 93-00712 if you have a pacer account.

See evidence of Tom Heysek liability for sending junk faxes which contains links to copies of the original documents that were used in the scam. I have more information on Heysek and if you have a need to know, you can contact me about that.

Andrew M. Kline (San Rafael, CA): STOCK FRAUD ASSISTANT
Heysek's "partner" in creating fraudulent stock writeups. The two of them constitute the editorial staff for WSP. After I pointed out to Kline that Heysek's report on CNDD can't possibly be reasonable and was so outrageously false, Kline hung up on me. I must have really gotten to him because five minutes later Heysek makes a threatening phone call to me to back off my cases against him (which confirms he was served). Tom didn't say "please" so I ignored his "request." It could be that Tom never saw any of the Barney tapes about "please and thank you are the magic words" when he was a kid. 

The only possible explanation for Kline's reaction I can think of for this is that Kline knows exactly what he is doing. That fits the facts since anyone honest with half a brain (and Kline is a member of Mensa) would immediately figure out what Heysek is doing; they wouldn't need me to point this out. The CNDD profile is just a mind blower...full of impossible assertions like 0 to $600M in revenues (and $400M in profit) in 4 months from a standing start. Anyone with basic financial analysis skills could see the fraud. The fact that Kline had no interest in the facts suggests he's like a mini-Heysek, a "Heysek wannabe," learning the tricks of the trade from the master. I'll bet he is paid pretty well...maybe he even gets a cut of the action. Kline worked at the family business Noe Valley Cyclery just a few years ago (on or about 2000). I called over there at around 10:20am on 8/17/04 at (415) 647-0886 and spoke with the owner, Lawrence E. Kline, Andrew's brother. He refused to say anything about his brother, not even verify dates of employment. It's a bicycle shop. Impressive credentials. That seems like the perfect background for evaluating complex speculative investments.

Kline spent 5 years in jail in Bolivia for possession of marijuana and 18 months in jail in the US for intent to distribute hashish. Other than that, he's clean as a whistle!

From Drug Trafficking on the Great Silk Road: The Security Environment in Central Asia:

Uzbek security arrested Andrew Kline, who was a citizen of the United States living in Bolivia. He wasreportedly a coordinator of activities between the Afghan and South American drug dealers

Kline got paid by Heysek (wire transfers from Thomas Heysek Associates and checks). Kline never made any big money on this.

Dan Hartal (Montreal, Quebec, Canada)
Dan, who is lives on Queen Mary Rd in Montreal, Canada, collected checks (the few there were) and handled upsells to premium packages for winningstockpicks.net. When we talked to him Hartal claimed he was just a "consultant" but that isn't true. He's a team member and this isn't the only Kos venture he's been proven to associate with. For example, at Ericware Technologies, Dan is the "Investor Relations Department" and Tom Heysek wrote the research report. You can talk to Dan at 514 293 7660, but he's probably not going to want to say very much. 

Don Oehmke aka Donald Edward Oehmke aka Doc Oehmke (Kalamazoo, MI)
According to Lord, Oehmke was the purchaser of all of CNDD's stock that was traded (a WSP promoted stock) as well as Chairman of SGNJ (another WSP promoted stock) and Ventana Consultants LTD, Kalamazoo, MI. Oehmke arranges the stock transactions since he's "experienced" in this area (see Rel. No. 41755 - August 18, 1999 for his credentials). Oehmke and Kos incorporated SGNJ, for example. Even though the Nevada Secretary of State record for Storate Innovation Technologies Inc shows the name "Scott Wilson," that's just a dummy name. I was able to find a paper trail that proves that it was actually Kos and Oehmke that set up this company. Heysek conveniently neglects to mention how Kos, a well known e-mail spammer, fits into the company in his writeup on SGNJ. In fact, he doesn't mention Kos's involvement at all. Gee, I wonder why? Heysek and Kos talk just about every day. Heysek is normally so thorough in his research. How could he have missed that one? Could it be that if he did, that his readers would realize they were being set up...a company founded by two people of "questionable" reputations with a track record of breaking the law, none of whom appear to have any experience in the line of business they are in? 

Also, Heysek neglects to mention that Oehmke ran a brokerage business that was expelled from the NASD in 1991 and involved in selling unregistered securities to the public at manipulated prices. Check out his Oehmke's NASD sanctions. Oversight, no doubt. 

Don and his third wife live in an estimated $500,000 home in Kalamazoo. He reportedly throws a terrific 4th of July party. Approximately 20 years ago, Don was a policeman. He's 55 years old today. He's used several company names and he's been sued in several states including Louisiana and Texas. He has a history of pump and dumps. Very charismatic according to people who know him. Hires really expensive attorneys. He used to live in Ventana Canyon (in Tucson, AZ) which is presumably where he got the idea for the name Ventana Consultants.

In his SEC deposition, Don (like Kos) basically answered "Fifth Amendment" to most of the questions. Don approved the phony press releases that went out per emails in the SEC case.

His broker CRD is #1449840 (see copy starting on page 241 of ExhibitsI.pdf).

Oehmke's lawyer claimed the SEC got it wrong and his client isn't liable. I sent him an email on April 6, 2006 with the following questions:

If that is true that the SEC got it wrong, I wonder if you can comment on the following:

1. Why did Oehmke (as Ventana) directly wire money to Camelot Promotions (Javier Cuadra) to send out illegal faxes promoting these stocks? 

2. Bush Ross wouldn't turn over the trust account records because Fertina Turnquest (who made the bulk of transfers) was an agent for their clients and Ross was instructed by his CLIENTS (plural) not to release the records. Since Jaynes wasn't a client, the only other person Fertina could be the agent of is Kos. And since he said it was CLIENTS plural, the only other client could be Oehmke/Ventana. This appears to be an implicit admission that Fertina was the agent for Oehmke and Kos. Is there any other possibility that I'm missing? 

3. If Oehmke isn't one of the perpetrators, then how do you explain the millions in profits transferred to him by Fertina from the Bush Ross Trust account? Why would she do that if she was, as you imply in your court filing, the mastermind?

I never got a response to my questions.

Don's wife Shannon Oehmke (who also uses the name Shannon Payne) was a secretary and director of the corporate shell that merged with GTX Global earlier this year. GTX Global has been written about by Stocklemon who noted that they used similar promotion to the promotions in this case. 

More info on Shannon Oehmke: 

• SI - readmsg.aspx msgid=22013518. 

More on GTX Global:

• StockLemon.com's first report on GTXC  

• StockLemon.com's second report on GTXC

• GTX Global Corporation GTX Global Response to Dow Jones Newswire and Stocklemon

Hartley Lord (Boca Raton, FL)
The 75 year old head of  CNDD (a WSP promoted stock). Concorde's official phone number is Hartley's home phone. The official address is his home address. Unlike all the other suspects here, Hartley actually wanted to talk when I called him! Based on what I heard, I thought he was innocent of any wrong doing, but I didn't spend a lot of time on this and probing into his background. He was completely cooperative and all his answers made sense. My initial guess was he's just being played by these guys. 

However, I could be wrong. He has a history of having been involved in securities fraud and market manipulation. Also, Lord has been barred for life from association with any member of the NASD in any capacity. So that was a huge red flag too. That is quite an achievement. I can't say I know anyone else who has achieved such an honor. See the Hartley Lord follow section below for more details. Also, I couldn't find anyone at the SEC who knows of a pump and dump case where the company being pumped was determined to be an innocent victim. If you know of any such cases, please let me know and I'll post it here. 

Also, per emails in the SEC case, Lord approved the inflated write-ups that Heysek did. It's possible he was just being overly optimistic about this business opportunity, but Heysek's financial projections were pretty outrageous.

Another factor is that a major shareholder of CNDD was Mauricio Madero O'Brien who Hartley has known for some time. For example,  in 1994 they were both board members of Pace American Group, Inc and they were both sued in a lawsuit in 1995 (Pace American Group Inc. v. Lord, Madero, et al. in state court in Delaware 
Civil Action No. 14215 and 14040). According to a July 18, 1996 Bloomberg article, Madero spent time in a Mexican jail in July 1996 awaiting trial and Mauricio was a partner of Cabal Peniche who reportedly stole $53.7 million dollars from Banco Union in Mexico City. Mauricio spent approximately 8 years in prison and was released in May 2004 and couldn't travel to the US until June.

Jere Ross aka Jeremy Ross (Tampa, FL)
Ross is a co-founder and partner at Bush Ross Bush Ross Gardner Warren & Rudy PA in Tampa Florida (see Bush Ross Gardner Warren & Rudy, P.A. - Jeremy P. Ross Bio).

Ross provided legal counsel for Kos, Oehmke, and Lord. I've been told he's provided legal advice for Oehmke (as Ventana) for approximately 10 years. Both Lord and Oehmke are heads of companies featured in WSP. Lord told me he didn't have a current lawyer when Oehmke contacted him.

Ross is representing Lord and Concorde in the SEC suit.

It appears he was more trusting of his clients than I think he should have been and he did some things he shouldn't have done and he may have subjected himself and his firm to liability for those mistakes. See Jere Ross and the stock scammers for a lot more detail.

I learned from someone who worked at Bush Ross that Ross and Kos talked often prior to mid-August 2004.  

There is evidence that supports the contention that Ross didn't know exactly what was going on (even though I believe that he should have), but there is also evidence that supports the opposite contention. Jere Ross has no "history" of doing illegal stuff.

For example,  the representation of Oehmke, although over a long elapsed time, involved very little work over that long time frame. In the SEC depo of Rohm, Rohm mentioned that the reverse merger contract was prepared by Jere Ross and Rohm's lawyer advised him not to do it and it was "substandard."  But I have not found any evidence that Ross had anything to do with that contract and I don't believe he was involved with it at all.

All of the vendors I talked to were paid out of the Bush Ross bank account (Spreadbury admitted it in the SEC depo, Vault Studios admitted it to me, and Fry Hammond Barr provided evidence under subpoena of the transfer, and Tom Heysek's bank records show he was paid from the same account. In addition, the funds to pay Camelot Promotions were mostly provided from the Bush Ross account, with some funds coming directly from Ventana Consultants (Oehmke).

According to the SEC lawsuit, over $5M of illegal trading profits from the Ryzcek and Chiang Ze accounts (which I believe were set up by Woltz) were sent through the same Bush Ross Sun Trust Banks Account # 41001143506 according to documents the SEC got (page 11 of the ExhibitWitnessList.pdf which is Docket #35 in the SEC case). $1,172,876 went to Bush Ross from Ryzcek Investments between June 29 and August 5, 2004. $4,134,865 was transferred from Chiang Ze Capital, AVV between July 28 and August 11, 2004. 

Heysek's Asian American Capital Management LLC account at B of A was paid by Bush Ross too. I subpoenaed these records from B of A and found out that Heysek got $24K on 8/03/04 and $23K on 7/7/04 from the Bush Ross account.

Also, Bush Ross wired funds to Spreadbury to pay for press releases. Ross subsequently authored a retraction which was sent out under CNDD's name.  

Jere Ross wrote me in an email on August 15, 2004 at 2:50pm which included the following (emphasis is mine):

"Generally the SEC staff conducts an informal or, with Commission approval (which won't be difficult to obtain in this case), formal investigation. If they determine the likelihood of criminal activity (which, unfortunately, appears to be present in the current case), they will refer..."

"As an aside, I give you credit for your efforts and hope that they are successful. There are few worse actions than market manipulation of the sort being practiced by whomever is behind the recent activity. They prey on the small investor who looks for the big hit. Good luck." 

At first I was surprised that they would use a law firm's trust account instead of creating some bogus bank account somewhere. I guess they probably used the Bush Ross account for at least two reasons:

• Hide behind attorney-client privilege: The SEC tried asking for their records. Bush Ross objected citing attorney-client privilege. So there you go. That's why they used the attorney. So anyone tracing them runs into a brick wall. There are three ways around that. 1) There is no attorney-client privilege for trust account funds (which these were) as the SEC pointed out to the court in their motion to compel and 2) in a criminal case, prosecutors can invoke the crime-fraud exemption (applying only to that communication relating to the continuing or future commission of a crime) if there is a reasonable basis for a reasonable man to conclude a crime has occurred (the judge normally does an in camera review to determine whether the exception is granted and the documents that it is specifically granted for), and 3) Only attorney-client communications are exempted, not the transactions with third party vendors. Bottom line: If the judge follows the law, they won't be able to protect the transaction history from discovery. Indeed, on March 29, 2006, the federal judge ordered the client trust account records turned over to the SEC and Bush Ross has complied with that order.

• Hide behind the mass of transactions: Since Bush Ross is a big firm there might be a LOT of transactions and most people wouldn't have the time to investigate every one and even if you did, you'd probably find nothing without Bush Ross's cooperation. Unless you knew specifically what you were looking for, it would be like trying to find a needle in a haystack. For example, instead of hiring of the fax broadcasters directly, they paid a third party (Camelot Promotions) to do that. Therefore, transactions with Camelot Promotions would appear in their account and most Plaintiff's wouldn't know what it is for. Bush Ross would claim attorney client privilege and Javier (at Camelot) would probably "not remember" who paid him and probably is so bad at record keeping that he wouldn't be able to find anything. Therefore, unless you are really good at detective work, it's hard to figure out what is going on.

We also know from reading the SEC case that there are other people at Bush Ross (not attorneys) who have knowledge about what was going on including:

• Barbara Rowe: she handled the wire transfers when Kos made a request to Jere

• Jessi Horrnik: her computer has the software that was used for the automatic funds transfer. 

For more information, see Jere Ross and the stock scammers

Richard E. Rutkowski (Cary, NC)
The technical computer guru for Jaynes. Hangs out in Raleigh and Cary, NC (see ROKSO page on Jaynes and Rutkowski). Sets up technical infrastructure. Was involved in setting up the WSP technical infrastructure. 

I've talked to him on his cell phone and wanted to ask him some questions. He said he'd have to talk to his lawyer first. He never called me back. Guess he forgot. I warned him if he didn't call me back, I'd have to do a lot of digging to prove my case. I had no choice. So you can thank Richard for providing me the incentive to dig out all this stuff since he wouldn't tell me who hired him on this job. 

Richard was quite pleasant to talk to on the phone, not rude at all...quite unlike Heysek who comes across as really arrogant and impolite. Richard faced 20 years in prison and was been arrested: 12-12-03 - Kilgore Announces Second Criminal Spammer Surrenders to Authorities, but he was acquitted because, for some reason, the judge didn't allow key pieces of evidence (like a video tape of him doing it) because the judge thought it would be prejudicial. Hard to believe, but absolutely true (a matter of public record)

Jessica Jaynes aka Jessica DeGroot (Cary, NC)
Jeremy's sister. A bit player. Works for Jaynes. Does Internet related stuff for them. The nice folks in the Virginia AG's office know her well. She's also sort of in trouble with the law too. Here's a nice article about her indictment on criminal charges: 04-07-04 - Kilgore Announces Indictment of Sister of World's Eight-Worst Spammer. She was found guilty of spamming and fined a paltry amount. She created some of the stock touts that went out (see Paul Spreadbury writeup below). Graphics quality isn't nearly as nice as Spreadbury's, but Spreadbury probably wanted out when he realized he had been conned by these people. 

Jessica had a role in the faxes that were sent out. After Spreadbury did his magic on the faxes, they'd be sent to both Bryan and Jessica (and Jeremy too if they involved AHFI).

Chad DeGroot (Cary, NC)
Works for Jaynes too. He does some graphic design work. He's Jessica's husband. Some of the WSP website is Chad's work, we can prove that so it is yet another piece of evidence that ties Jaynes directly in with the WSP site.

Kevin Katz (Laguna Beach, CA, Aliso Viejo, CA)
CEO of fax.com (aka Impact Marketing aka Access Sales Inc). They also sent out junk faxes for WSP on a cash deal. They got paid by Javier at Camelot Promotions who in turned was paid from the Bush Ross account. 

One of my fax.com insiders says that they ABSOLUTELY know this stuff is fraudulent. Frank Frappier (top sales person for fax.com) handles faxes in this area. I've heard that revenue from pump and dumps are pretty high; maybe approaching a million dollars a month! According to their records, fax.com alone sent out over 10M of these promos.  Fax.com rarely complies with discovery. The California Attorney General spent 6 months to get some questions answered and after 6 months got 20 boxes of removal requests; nothing of value.  See also the fax.com page.

The sales person at fax.com who actually took the orders from Javier Cuadra for these faxes is Lou Gaudio who used to work for Impact Marketing Solutions (aka fax.com).

Paul Spreadbury (Pensacola, Florida)
An freelance marketing consultant. His name (and phone numbers associated with him) were on the phony press releases.  Currently located in Pensacola, Florida. 

I've checked him out thoroughly. He's a 100% honest guy that was duped in the same way that people who read the stock touts got duped. Once that press release came out, Spreadbury figured out what was happening and got out. That's why the CNDD stock touts (after the first two) were subsequently created by Jeremy Jayne's organization rather than Spreadbury. 

I have the highest respect for Paul's integrity. He was 100% honest in his SEC depo. He's an excellent marketing guy. His only mistake was being too trusting and believing what he was told (that the faxes were just going to subscribers, etc.). I don't hold him responsible for what happened because Paul was defrauded just like the investors.

Fax.com source data shows he created some of the stock touts that were sent out, e.g., the first two CNDD stock touts from fax.com on 8-4-04 and 8-9-04 (The BEST Penny Stock Picks!) were created by Paul. The ones after August 19 (i.e., entitled MICRO-CAP HOT STOCK PICKS) were created by Jeremy Jaynes' sister Jessica.

Heysek's annotated phone records prove Spreadbury called Heysek numerous times just before the CNDD stock tout came out.

Spreadbury designed and managed the website using material supplied to him by Kos (who got it from Heysek and Kline). Spreadbury admitted in deposition with the SEC (p. 64) that he spoke with Heysek and Kos in connection with the material on the website.

Spreadbury also created the content for the faxes with direction from Kos who in turn used the writeups prepared by Heysek and Kline. We know that to be true since (a) he admitted it on p. 72 of his SEC deposition and (b) his electronic fingerprints were on the files submitted to fax.com. Spreadbury gave the faxes back to Bryan after he wrote them (per his SEC deposition p. 77).

Spreadbury got direction in his marketing efforts (faxes, etc.) from Kos, Heysek, and Kline. We know that from his email in Exhibit 55 (see HeysekEmail.pdf).

I got mentioned (Spreadbury SEC depo p. 81) as having first informed him of the fraud.

Spreadbury got paid by wire transfer from the Bush Ross bank account (SEC depo p. 118).

Spreadbury originally interfaced with Eric Gordon (who worked for Kos), then with Kos directly (see p. 157).

Spreadbury also wrote the Google ads, with input from Kos and Jaynes (p. 250).

Doug Paulson (Toronto, Ontario, Canada)
Does audio and video work featured on the WSP site through their company Vault Studios www.vaultstudios.com in Ontario, Canada. At first I thought they were just innocent pawns in this, but they sure don't act like it. They act like they are hiding something big. They refused to comply with my subpoena. They send "send me the subpoena" but then never even bothered to call to discuss any issues that they might have had with it. It was basically a trick so they could find out what I was fishing for. Most honest people don't act that way. The Paulson's treated me like I'm the criminal and Kos is a whitehat. Gotta be a reason for this...I haven't figured this out yet, but it makes me very suspicious that they are still obstructing justice even after I've pointed out to them exactly who Kos is. I gave them a final chance to pick sides. They just ignored the email. Guess the Paulson's are rooting for the blackhats to win. This was not so surprising after I found out that Vault Studios is a client of Kos' firm (and vice-versa)! So it seems quite probable that if they turned Kos in, that Kos would turn them in. That explains the silence and lack of co-operation.

Jon Paulson (Toronto, Ontario, Canada)
Works for Doug. He's Doug's son (Spreadbury depo p. 204). Also is refusing to talk. Not surprising after I learned that they've employed Kos in the past. However, when I first called Jon, I caught him off guard and he admitted to me that Kos and Heysek direct their activities. That was a very helpful admission at the time.

The Paulson's not only did the video for the website, but they also did the creation of the voice mail scams (see p. 204 of Spreadbury's depo). That's why they don't want to talk to anyone.

Howell Woltz (Advance, NC): Asset Protection and Investments
Howell Way Woltz is head of the Sterling Group of companies. I know that through various sources including Internet directory listings, an article he wrote, and his own admission in his deposition.

See Sterling Group information for more details on the Woltzes and Sterling. That page covers their arrest in North Carolina on criminal charges on April 18, 2006 and the admission by Woltz (referenced on p. 45 of Shasta Decision 9-2-05) that "a small group of people control and own all the Sterling entities: Howell and Vernice Woltz, Fertina Turnquest, Samuel Currin, Joseph Brice, Hiram Martin, Thom Goolsby, Walt Hannen, Wendell Skeete and Lewis Borsellino."

The photo above was taken before Howell was arrested. He appears to be happy. The photo on Sterling Group information was taken after his arrested. Howell does not appear to be so happy.

There is consistent evidence supporting the allegation that Jaynes was a client of his: (1) Rohm testified in the SEC case that Howell admitted this to him, (2) Jaynes and Woltz both lived in NC at the time, (3) Jaynes associate Rutkowski is listed on the same form as Dicienzo Storr who has an email address at sterlinggroup.bs, and (4) a Jaynes associate (Chad DeGroot) created a form that was posted on the WSP website containing an address that matches the address of Sterling as noted below and (5) Jaynes' lawyer is the same Samuel Currin that Woltz admitted is an owner of Sterling.

Furthermore, the most recent SEC filing in the Bio-Heal case shows that the Registered Agent for Bela Enterprises, LLC and Gibson Island Enterprises, LLC was Sterling Trust Ltd. Gibson also used the Sterling Trust address on bank wires as shown on pages 103 through 112 pf that filing. What's cool is that on p. 104, 105, 108 and 111, we find four $200K wires (a total of $800K) to I-Max Direct, Inc. (formerly www.imaxdirect.com), located at 51 JFK Parkway 1st floor West, Short Hills, New Jersey 07078 (phone 1-973-218-2459), a legitimate marketing company run by Andrew Witty. This media firm was used by Jaynes and also by Kos. On page 106, we find a wire transfer for $175K from Gibson to the Currin Law Firm PLLC IOLTA. That's a client trust account designation. We know from documents in this case and his spam case, that Sam Currin is Jayne's lawyer (and Currin is shown as the way to contact Jaynes in line (ff) of Oehmke's filing). Then on page 107, we see a wire for $150K to Warren Hansen (who is profiled elsewhere on this page), a person who traded AHFI stock, which is a company that Jaynes held shares in. So all of these facts in this paragraph and the previous paragraph also connect Howell's company Sterling with Jaynes.

There is even more evidence that Howell Woltz, Vernice Woltz, and Fertina Turnquest all had some knowledge of what transpired here because Oehmke admitted this in a court filing in the SEC's case against CNDD (see line (aa) through (cc)).

Also, check out the table of the trading entities used to trade these stocks. All of these trading entities had one or more ties to Sterling or people associated with Sterling.

Because of these ties, and because all of these entities were set up in locations associated with Sterling, I would not be surprised at all if Woltz or Sterling was involved in setting up some or all of the trading entities (Gibson, Bela, DaSilva, SA, Vanderlip Holdings NV, Chiang Ze Capital AVV, Ryzcek Investments GMBH, Barranquilla Holdings, SA) that were used to trade these stocks. One of the possible reasons that they used strange sounding names for these companies would be to conceal who really owns the companies and controls the accounts that were set up. As the table shows, companies with ostensibly nothing in common look similar once you dig a little deeper. Therefore, it is reasonable to make the allegation that these trading entities were used to trade the shares so that it would be hard to find out who was really responsible. However, if there are criminal charges that are brought and the people who submitted affidavits (see p. 23 and p. 39ff of OemkeOpposition) don't want to talk to the authorities as to how they came upon these shares, then they could be charged as co-conspirators.

According to Spreadbury's emails obtained by the SEC, Fertina Turnquest was the contact person at the Sterling Group. A web search I did confirms she worked there as well. Oehmke admitted he had contact with with Fertina in his court filing (see page 20). Fertina had power of attorney over many of the trading accounts that were used; Oehmke had trading authority on some of the accounts, replacing Jaynes. See the section on Fertina Turnquest for more information.

When the Bush Ross trust records are finally revealed in court, I have reason to believe that they will show that Fertina also directed Jere Ross as to where to wire the funds in the Bush Ross client trust account so that contractors could be paid for the services that they provided to help carry out the scheme. This is quite important as I suspect that the trust account records will reveal that it was Fertina who ordered that the illegal faxes were to be sent. Why would she do that if Sterling just incorporates companies as Howell has told me? Why would Fertina be authorizing the sending of illegal faxes out of a client trust account at Bush Ross? That has nothing to do with the incorporation of companies. The most logical explanation that fits the evidence I found is that Fertina was acting as an agent for either Jaynes, Kos, and/or Oehmke. 

I received confirmation of that allegation that Oehmke, Kos, or Jaynes told Fertina what to do when I tried asking Jere Ross what Fertina told him. I said "Fertina isn't a client, so she's not covered by the attorney-client privilege." Ross refused to answer the question on the grounds that Fertina was acting an agent for one of his clients. Since Oehmke and Kos were clients, that helps us narrow down our search as to who instructed Fertina. Unfortunately for Howell, agents don't escape liability for their actions just because they were told to do something illegal by someone else. If Howell knew what was going on (and I believe there is sufficient evidence to convince a court of that since he clearly had read this web page in August), and he failed to stop it, then he can be held liable for the illegal activity.

In his letter to me of July 23, 2004, Howell wrote that, "For the record, Sterling ACS, LTD is a financial and corporate service provider... [and]... Sterling Trust (Anguilla), Ltd. ... [are]  "not in the business of faxing or e-mailing, or supporting those that do so." I would agree that that may not be Sterling's primary business, but based on the evidence I uncovered it seems that they do in fact support people (such as Jaynes) who engage in one or more of the illegal activities he enumerated.

A big problem for Woltz and Sterling is that after it was clear that Howell was aware of the illegal activities that I pointed out to him in July, and after that  letter to me of July 23, 2004 where he said he didn't support such people, he continued to do business with the same people. The legal term for that is ratification.

Since mid-August 2004, this page has had a paragraph inviting anyone with a correction to let me know. Howell's August 26, 2004 e-mail to  me showed he had read the web page. His email wasn't solicited by me. It happened after Howell read this web page and read its request for corrections. That's really bad for him from a legal standpoint because his continuing to do business with Jaynes, Oehmke, and Kos after that point would again likely be considered by a court to be ratification. And it just so happens that Fertina Turnquest had power of attorney on almost all the accounts at Electronic Access Direct and had trading authority on some of the accounts (Oehmke had trading authority on others) until approximately late November 2004. That's 3 months after Woltz clearly had notice what was going on. I can imagine that that's not going to play well in court if Woltz claims he had no idea what was going on.

When I talked to Woltz, I found him evasive. I asked him simple yes-no questions (like "have you ever heard of Worldwide Picks LTD?" and "did you incorporate them?"). I've still not gotten a straight yes or no answer from him on those simple questions, even though his lawyer, Martin Russo, admitted to me that they might have registered that name.

Also, he's made statements to me and given answers that I considered to be unreliable such as in his email when he wrote that "nothing regarding myself that you have said is true, other than the references to sites that  show me speaking to S.T.E.P...."

I spent several days trying to ask him a simple question: "Did you set up Worldwide Picks LTD, yes or no?" Woltz completely danced around the question for days. Why, if he didn't do it, wouldn't he just say "No I didn't"? He told me in his e-mail from Howell that he can't answer "yes" or "no" because his client's identity is confidential. That makes sense to me since otherwise it turns into a game of 20 questions. But I had asked him if he incorporated World Wide Picks, not who his clients were. Even though that question is a matter of public record, he refused to answer that question.

In an  E-mail from Howell Woltz July 25, 2004, Woltz told me "I do not remember incorporating such a company." But the previous day, he wrote, "Sterling does not control, own shares in, or run a company named Worldwide Stock Picks, Ltd." Funny. I never told him the name had the word "Stock" in it because it doesn't. So by contorting the name by inserting "Stock," he can truthfully answer that he had nothing to do with that company. I don' t know if he was just confused about the name or deliberately trying to mislead me. Also, his insertion of the word "Stock" in the company name was interesting. Even though he can't recall whether he incorporated them or not, he seemed to be able to recall what business they were in.

I later learned that it is a matter of public record that Woltz's organization was involved in creating the company in Anguilla (Worldwide Picks Ltd is Anguilla Corp #2036475). I believe he did it for Jaynes and his associates so they could hide their identity from being discovered. I concluded this because 1) WSP was the identity that they used on their website and 2) both the servers used and one document published on the site can be traced to people who worked for Jaynes and Woltz (see subpoena to Rackspace, 3) The domain registration for WSP didn't list any names of any real people, 4) the website itself didn't list the names of the people who ran WSP (except for Heysek as the editor), 5) in Anguilla it is very hard to determine the officers and directors (e.g., one web page touts Anguilla as "Tiny British Overseas Territory with a Big Offshore Confidentiality and 100% Secrecy Reputation"), and 6) Rohm testified in the SEC case that Woltz told him that "he was helping Jaynes send his money offshore to protect it from the authorities."

It's likely that Woltz or Sterling was involved in setting up the Chiang Ze Capital company to accept the trading profits for trades placed for these guys. For example, Oehmke filed a document in the SEC case showing Mavis Chaitan as President and Secretary of Chiang Ze. However, Mavis Chaitan is the name of the mother of Woltz's wife Vernice whose maiden name is Vernice Chaitan. Also, the same document pointed out that Mavis gave the power of attorney for the trading account at Sunstate to Fertina Turnquest who worked for Sterling. See the table of the trading entities for more coincidences like that that connect these seemingly unrelated companies together.

Howell admitted in his e-mail from Howell to me that Vernice is from Trinidad. Chiang Ze is a Trinidadian corporation. And Ryzak Investments GmbH which held 6 million shares of AHFI is in Trinidad too. So things are not inconsistent with my hypothesis.

Like Jaynes, Woltz maintained a residence in North Carolina at the time. While in the US, he can make it appear he's offshore by bouncing his email off a Bahamas based mail server. He's also used a 714 area code cell phone even though the only US residence I could find for him was in North Carolina. At one point, he told me "I'm done with my vacation in North Carolina." I called his home in North Carolina and talked to his son. I asked "is Howell there?" The son passed me to Vernice, his wife, who asked me why I was interrogating her son!!! Interrogating?!? Vernice is an officer of the Sterling companies. Anyway, they were nice enough to confirm to me that my info was correct; that he lives there. Howell later told me that the NC home is his vacation home. I must confess that I don't know anyone with a vacation home that is on a street that matches their name. Very cool.

At the time I first checked it, the domain registration info for WSP showed contact information (such as the phone number) that matched his Sterling Trust in Bahamas. In fact, the primary contact for the website at rackspace was Dicienzo Storr who has an email of dstorr@sterlinggroup.bs. So the email address of the primary contact for the WSP website is at Sterling Group. 

Also, the WSP membership form (which appears to have been created by Jeremy Jaynes's sister's husband, Chad DeGroot), instructed you to send your money to an address that at the time appears to match Howell's other offshore branch office in Anguilla (Sterling Trust (Anguilla), Ltd). where they presumably did the incorporation of Worldwide Picks Ltd.

Also interesting is that the PO Box Storr gave for his address (PO Box CR-56766 Miami, FL 33131) matches the same PO Box number that was listed on the website domain registration for the WSP website, but on the domain registration, they listed the location as the Bahamas, rather than Miami. The reality is this is a Mail Boxes, Etc. PO Box number that is also used by Sterling. Check out the address on page 16 of ShastaFourthStatus: Sterling Trust Anguilla LTD, PO Box CR-56766, Suite 1202, Nassau, Bahamas. 

Also really interesting is the contact phone number listed on the WSP domain registration: 242-325-7573. Compare that to the phone number of the Sterling Group that was listed at the end of an article written by Howell Woltz. It's identical! Also note that a web search revealed that Sterling also used 242-325-7574, which is one digit away (the last digit).

When I called down there and asked what they do, I couldn't get a straight answer. I asked Howell the same question and he appeared flustered trying to explain what he does for a living. 

Howell stopped talking to me shortly after I started cc: US government agencies on my emails to him, e.g., when I asked him: "who did you recall talking to on the day you incorporated Worldwide Picks LTD?"  Perhaps his phone records would help answer that question. 

Howell's firm has been involved in at least one financial fraud before, Shasta Capital, but Howell implied in an email to me (see point #2) that he was a victim of dishonest people that worked for him. See Sterling Group for more information on the Shasta case. I found it interesting that Woltz fought the production of information the government wanted and some people believe he has still not fully complied with court orders to produce documents in that case. For example, if Woltz were to have erased the backup tape before turning it over to the CFTC, that might be considered by some people as not fully complying with the court's order.

After reading this web page in 2004, Howell sent me an e-mail. I responded with some questions to clarify his statements. Here's the August 26, 2004 e-mail thread with Howell Woltz. I never heard back from him since then. When he wrote that nothing I said about him was true (with the STEP exception), that was too generic for me to deal with since I knew that wasn't true. Therefore, I asked him for specifics which I never got.

However, on March 20, 2006, he served me with a lawsuit for libel. The lawsuit was devoid of any libelous statement that was false so I sent an email to his attorney in the Bahamas asking which information is false. I also sent an email to Howell with the same request. Why, if the information was false and harming him, would he (or his lawyer) not bring that information to my attention so that the false information could be removed? Why did he wait almost 2 years? He knows how to contact me.

Also, I've talked to at least one other person who said Howell represented to him that he was in the "asset protection" business.

The following statement also indicates that Woltz and Jaynes were associated (Randall Rohm's testimony in the SEC case):

7. Also in connection with the merger discussions, sometime in mid 2004 I met Howell Woltz once, whom Jaynes introduced as his money manager. At this meeting, Woltz told Ted Sampson and me that he was helping Jaynes send his money offshore to protect it from the authorities in Jaynes's spamming case and tried to convince us to start sending our money offshore as well. I have not seen or spoken to Woltz since this meeting.

Howell told me that it was illegal for him to disclose who his clients are. 

He wrote an email on July 25, 2004: "Under the quite strict privacy laws, I am not allowed to disclose information about clients. The laws provide for a $500,000 fine, and imprisonment up to 10 years, per occurrence of such disclosure, and a suspension of licence [sic]."

He said the same thing again in his Aug 26, 2004 e-mail to me: "As for information about anyone I deal with, the Privacy Act of 1971 requires jail time of up to 10 years, and as much as $500,000 per offence in fines. When you seek to have us discuss who we may or may not deal with, I'm not sure you know what you're asking. We can't and  won't do so. No "yes", no "no". You'll continue to get nothing."

Nothing?!?! I'm sorry, but I just find that way too hard to believe. 

Howell has repeatedly violated these "rules" about what he can disclose. For example:

• How can he possibly bring a libel suit against me? In order to do that, he'd have to cite and attest to specific statements here that are false. But according to his own principles, he's not allowed to confirm or deny anything with respect to his clients. He can't even get a default judgment if you believe what he said that he can't confirm or deny anything about who his clients are or aren't.

• Similarly, he wrote (with reference to this page) that " So far, nothing regarding myself that you have said is true, ..." which means he's implicitly denying all associations I mentioned in this page. Again, a violation as he's telling us who is not a client.

• Rohm testified that Howell admitted that Jaynes was a client (see above).

• Howell told me that Heysek wasn't a client (email on July 25, 2004).

• Howell told me that "Sterling does not control, own shares in, or run a company named Worldwide Stock [sic] Picks, Ltd"  (email on July 25, 2004). That's interesting since I asked him for information about Worldwide Picks LTD, not Worldwide Stock Picks LTD. But again, he's telling us Worldwide Stock Picks, Ltd wasn't a client (even though we never asked about that company).

The bottom line is that Howell seems to be able to disclose who he knows and doesn't know, and who is or is not a client when it is convenient for him to do so. 

For more info, Sterling Group information.

John R. Rooney (Jupiter, Florida)
Rooney's name was quoted in a press release from WSP (see Abe Goes Tommy in New Campaign for USPennyStocks.com), but I'm convinced that he has nothing whatsoever to do with this.

Rooney, with his wife Natalie, moved from New York to Jupiter, Florida at the end of 2003. Both Rooney and father Patrick J. Rooney have a history of stock manipulation as noted in the citations below. John was head of HORNBLOWER & WEEKS INC INVESTMENT BANKING 110 WALL ST FL 24, NEW YORK NY 10005-3806 before moving to Florida. John is quite a guy. Here are a few choice articles about John:

• Stock Patrol In Trouble Again (jul 11, 2002)
• StockPatrol Through The Looking Glass (aug 10, 2002)
• Stock Patrol The Terminator
• Hornblower & Weeks, Inc. Order Revoking Broker-dealer Registration
• FindLaw Class Action and Mass Tort Center Securities SEC Resources
• NASD Regulation News Release - 05-07-02
• LITIGATION Release No. 16733 - September 27, 2000 (it's the family business I guess)

I don't have any evidence that Rooney is involved in this fraud other than his name popping up on a WSP press release. It appears he isn't. It was just a interesting coincidence.

John Richey
Random name Spreadbury made up (see his SEC depo p. 109).

Eric Gordon aka Eric Leighton Gordon (Spring Valley Lake, CA and Las Vegas, NV)
Eric Gordon was the marketing consultant used by Kos. He helped direct Spreadbury in the creation of the faxes, e.g., his email to Spreadbury of May 30, 2004 entitled "faxes...". Gordon's website is sonicmlm.com, phone: 760.955.9541. YahooIM: sonicmlm. He's also associated with Big Action Media (BigActionMedia.net) and Ericware Technologies, Inc. 13745 Spring Valley PKWY, Spring Valley Lake CA 92395. He's been involved in the Network Marketing business since 1995 and full time since 1997. He's 33 years old. He splits his time between California and his home in Las Vegas, NV.

Kos contacted Eric to do the marketing for the site and it was Eric who asked Spreadbury to get involved in this. 

Eric wouldn't return any of my phone calls to him. I found nothing to indicate that Eric did anything illegal.

Warren Hansen aka Warren Karl Hansen (Boca Raton, FL)
In the second half of 2005, we received information from an anonymous source who was knowledgeable about Warren Hansen and others that implicate them as key players in this fraud. Believing that information to be credible (since it matched other facts we knew), we published that information on this page.

On January 20, 2006, we were advised via letter from the attorney for the Hansens, Jan Douglas Atlas of the law firm of Adorno & Yoss in Fort Lauderdale, FL, that the information that we published "contains reckless and maliciously false and defamatory statements" regarding the Hansens and demanded that we immediately remove the information. The letter did not identify a single statement that was false nor did it provide any evidence that the information on our site was false.

We believe that the information we received was credible since information from several independent sources was consistent with what we were told by our source. Therefore, we do not believe we were reckless in posting this information and believe it serves the public interest to air this controversy.

We have asked Mr. Atlas for (1) specific statements that are false, (2) the Hansen's version of what transpired, (3) all civil and criminal complaints that the Hansens (or their companies Trader Support Services) have either been served upon them or they served others regarding these issues since 2004 (4) any court orders involving the Hansens since 2004, and (5) whether Hansen would be available for an interview. We will publish that information here so that the reader can get a neutral and balanced view. In addition, if Mr. Atlas produces any credible proof that any statement on this site is false, we will immediately remove that statement.

Because Atlas's letter requested immediate action and he could not provide any details on what statements were inaccurate, we also attempted to reach Mr. Hansen at his home on January 22, 2006. We left messages to return the call twice with a woman who identified herself as Hansen's mother-in-law but did not receive a call back. 

Repeated attempts to reach Hansen directly on January 23 were also unsuccessful.

However, Hansen has reportedly sued at least one person for defamation. His position is that any illegal acts were done by others, not by him, i.e., that he is simply the "fall guy" set up to take the heat. That's an interesting defense. I wish I could talk to him to have him explain it to me directly. I'd love to have him explain why Gibson Island Enterprises wired him $150K from their account in the Netherlands Antilles (see page 107). Usually the "fall guy" doesn't get a windfall like this.

Also, when his attorney contacted me about the information I published about Hansen, he was unable to cite a single factual error. Here is audio tape of my conversation with Jan Atlas... it's a doozie).

So if Hansen is the victim here, how come he can't point out any errors? So I have all these unanswered questions and Hansen won't talk to me. 

Failing to reach them, Hansen's profile has been re-written (and expanded) and fact checked with multiple sources.

Here are a few abbreviations we'll use below:

• Sunstate refers Sunstate Equity Trading, Inc. (CRD #43571), a firm owned by Jim Kelly

• EAD refers to Electronic Access Direct (CRD #36975), Inc, a firm owned by Don Edwards and Richard L Barret located in Sarasota, FL

• SIPC refers to Securities & Investment Planning Company (CRD #36538), a company controlled by Daryl Scott Hersch (CRD #1255474)  located in Chatham, NJ

• Rockhouse refers to Rockhouse Securities LLC (CRD #104477), a brokerage in St. Louis, MO.

• TSS refers to Trader Support Services. There are actually two firms with the same name. The LLC in Texas is controlled by Warren Hansen and the Florida corporation, Trader Support Services, Inc. (FEIN 753155635) is controlled by Hansen's wife, Erica, but Warren is the Registered Agent and the address is their home address.

• Daylight refers to Daylight Online Brokerage, LLC (CRD #47897) located in Dalton, GA

• FRF refers to First Research Financial (CRD #27915) located in Dallas TX. But there is a First Research Finance, Inc. located in Boca Raton, FL at the home address of Warren Hansen (and he is or was the registered agent) and his CRD record indicates that he was employed in the Boca Raton office of this firm. These could be completely separate entities, but the names are nearly identical and both associated with Hansen that they are likely the same.

Warren Hansen, age 35, lives in Boca Raton, FL. His Broker CRD #3014245 (note that the public CRDs are abridged and omits information such as cause of dismissal).

Warren's wife is Erica Hansen aka Erica Beth Hansen aka Erica Beth Dembski  (broker CRD #2634633). Dembski is her maiden name. Four brokerages she has worked for (EAD, Sunstate, FRF, and Daylight) were all ones that Warren worked for in the same timeframe. In addition, she worked at 2 of the firms involved in trading the stocks involved in this scam at the time the stocks were been scammed (Sunstate and EAD). Also, her name showed up in the SEC subpoena to Bush Ross. Also, at least one source told us that she accumulated 100,000 shares of NEXR several months before it became BHLL and was pumped. 

Erica's mother is Ellen Dembski. She is not a broker, but provided various support services, e.g., when she worked at EAD. So for example, on December 30, it was Ellen who sent an email to Vince Lijoi instructing him to change the mailing address for all returned mail to the Sterling Group in the Bahamas. When I called Warren's house on January 22, 2006, a woman who identified herself as Erica's mother answered.

Another person who has followed Hansen from work place to work place is Gary Hayes aka Gary Thomas Hayes, CRD # 1006988. He's overlapped with Hansen at 4 firms: Daylight, FRF, Sunstate, EAD. In addition he was employed at Rockhouse in April and May 2005 where Hansen was trying to land after he left SIPC in March 2005.

Database research showed that Hansen has been with FRF, TSS, and Heritage Holdings Group, Inc. An NASD enforcement document dated November 16, 2004 indicates he was formerly president of broker-dealer Daylight. But it's his role as President of Sunstate  that is of interest to us. 

According to his CRD file, Hansen started working for Sunstate in June 2003. Hansen was named President in December 2003. Shortly thereafter, Hansen named Gary Hayes as the compliance officer. This seems to me to be a very interesting appointment since if Hansen is doing illegal things and he is allowed to pick his own compliance officer, it could make doing illegal things a lot easier. 

According to our source, Hansen (partnering with HBR, a company controlled by Chad Robbins and employer of Ian Stanko both traders at Sunstate) offered to buy Sunstate from James Kelly for approximately $300K in June 2004. Kelly accepted the offer and started negotiating terms but the transaction never closed (although Hansen was successful in convincing Sunstate's bank and clearing firm that it did).

According to this Dow Jones article written by Carol Remond about Sunstate ("DJ IN THE MONEY:Search Warrant Executed In SEC Vicemail Scam"), Hansen blamed the vicemail scam on Kelly. I have not researched the vicemail scam at all. Soley based upon my research into the backgrounds of both Kelly and Hansen, I believe that it is more likely that Hansen was involved in this than Kelly. 

According to the source, Hansen was introduced to Oehmke through Kerr (see below for Kerr's profile). Both Oehmke and Kerr were Sunstate clients. Oehmke provided stock (through Chiang Ze, Vanderlip, Da Silva entities created in Anguilla or Trinidad (most likely by Sterling); see  the exhibits in BushRossMotionToCompel.pdf) that was traded by Sunstate. According to the source, Hansen spoke with Oehmke quite often and used Sunstate as a vehicl