SEC wins injunction on Wolfson's Olsen Payne broker
2003-07-17 13:03 ET - Street Wire
by Brent Mudry www.stockwatch.com
Canada's most respected securities regulator has entered a permanent
injunction against a Salt Lake City, Utah, broker charged in two
civil cases of separate rings of American penny stock players who
allegedly used Vancouver brokerages in manipulative stock frauds.
The United States Securities and Exchange Commission announced Tuesday
that Kevin Kirkpatrick, 42, was enjoined from future securities violations
by Judge Tena Campbell of United States District Court for the District
of Utah. While Canadian brokerages, especially those in Vancouver,
were often used as conduits, there is no suggestion these brokerages
or any of their officials had any idea anything was amiss.
The judge has not yet decided on fines and disgorgement, if any,
for Mr. Kirkpatrick's role in the manipulation of Freedom Surf Inc.
from July through November, 2000. The alleged penny stock rig job
featured Allen Z. Wolfson, 55, a notable Salt Lake City promoter
currently in jail in the New York Metropolitan Correctional Center
in an unrelated case.
In this separate case, which involved criminal and SEC proceedings,
Mr. Wolfson was convicted March 26 after a month-long trial of conspiracy,
securities fraud and wire fraud offences arising from his scheme
to manipulate six penny stocks from early 1999 through July, 2000,
resulting in losses to the public of at least $7-million. (All figures
are in U.S. dollars.) In this case, part of Operation Uptick, a massive
FBI bust of Mafia-linked penny stock promoters, Mr. Wolfson bribed
numerous U.S. brokers through offshore wires to a mobbed-up middleman,
Michael Grecco, an associate of the Colombo organized crime family.
While Mr. Kirkpatrick was not involved in the Operation Uptick case,
he was involved in a third U.S. penny stock case featuring offshore
dealings through accounts on Howe Street, Vancouver's penny stock
centre. Mr. Kirkpatrick was named a defendant in the SEC prosecution
of Maid Aide Inc., for which he was fined a total of $200,000 earlier
this month. A number of Maid Aide players were also charged criminally,
led by Las Vegas lawyer Max C. Tanner, jailed for eight years. (Mr.
Wolfson was not involved in the Maid Aide case.)
WOLFSON'S FREEDOM SURF PROMOTION
The SEC filed a civil action Sept. 30, 2002, in U.S. District Court
for the District of Utah, charging Mr. Kirkpatrick, Mr. Wolfson,
11 other individuals and a Dallas-based brokerage with securities
fraud in a scheme to manipulate shares of Freedom Surf from July
through September of 2000. "The stock manipulation scheme perpetrated
by Kirkpatrick and others appeared to shut down when SEC staff began
investigating in November, 2000," stated the SEC on Tuesday.
The securities fraud complaint came six months after the SEC filed
an accounting fraud action against the former president and former
vice-president of Freedom Surf, since renamed Freestar Technologies,
alleging they cooked the books by falsifying the company's financial
In the securities fraud case, the defendants include Mr. Kirkpatrick,
a broker at Olsen Payne, Mr. Wolfson, his son David Wolfson, 24,
also of Salt Lake City, Mervyn Phelan Sr., 63, of Laguna Beach, Calif.,
his son Mervyn (Bo) Phelan Jr., 33, of Dana Point, Calif., disbarred
attorney and convicted felon John W. Cruickhank Jr., 64, of Downey,
Calif., trader Robert H. Pozner, 58, of Ridgewood, N.J., Dallas brokerage
Salomon Grey Financial Corp., and three Texans: its president Kyle
Rowe, 36, of Dallas, its chief executive officer Angelo Paul Koupas,
34, of Frisco, and its head trader Christopher Roundtree, 25, of
Little Elm. Also named were John Chapman, 61, of Salt Lake City,
Craig H. Brown, 46, of Laguna Beach, and three of Allen Z. Wolfson's
companies: Feng Shui Consultants Inc., formerly World Alliance Consulting
Inc., A-Z Professional Consultants Retirement Trust Inc. and the
AZW Irrevocable Trust.
"The SEC's complaint alleges that Phelan Sr. originated the
scheme to manipulate Freedom Surf stock, and enlisted Allen Wolfson
to carry it out. In July and August 2000, Phelan, his son, Phelan
Jr., and Brown, transferred 345,000 Freedom Surf shares at no cost
to Wolfson. Wolfson then deposited the shares in accounts he controlled
at Olsen Payne. Then, Allen Wolfson and his son, David Wolfson, directed
Kirkpatrick, a stock trader at Olsen Payne, to bid up the price of
Freedom Surf by posting artificially high quotations for the stock," states
"Pozner, a trader at Glenn Michael Financial, bid up the stock
price in concert with Kirkpatrick and on Allen Wolfson's instructions.
Through these manipulative activities, Wolfson and the other defendants
caused the Freedom Surf stock price to increase from $5 to $40 in
approximately two months, before the stock was split 4 for 1 on October
The SEC also claims Salomon Grey, Mr. Koupas and Mr. Rowe had a
pre-existing arrangement with Mr. Phelan Sr. and Allen Wolfson to
obtain free and deeply discounted blocks of Freedom Surf stock for
retail sales to the public at manipulated prices. The complaint further
alleges that the defendants shut down the manipulation after SEC
staff began investigating in early November, 2000, and the stock
collapsed to a low of 19 cents by the end of the year.
The SEC claims that Mr. Chapman, who works with Mr. Wolfson, had
trading authority over five of six entities holding Canadian brokerage
accounts that engaged in manipulative trading. Mr. Chapman and Mr.
Wolfson both opted to assert their Fifth Amendment right against
self incrimination and refused to testify in the SEC's investigation.
The SEC complaint notes that on July 21, 2000, Freedom Surf had
its first price quotation, when market maker Mr. Kirkpatrick, on
behalf of Olsen Payne, posted a $5 bid and a $10 ask price. Mr. Kirkpatrick
was no slouch, according to the court filing. "Between July
21 and October 11, 2000, (the day of Freedom Surf's stock split),
Kirkpatrick increased the bid price 53 times, to $40. During that
time period, Olsen Payne posted or maintained the exclusive high
bid on 51 of 58 trading days," states the SEC document.
"There was very little trading done during this time period.
During the approximately two months when Freedom Surf stock went
from $5 to $40 (July 21 through September 28, 2000), Kirkpatrick
reported to NASDAQ only two transactions for a total of 200 shares,
and, market-wide, there were only six transactions involving 850
shares, all of which were arranged trades."
The SEC claims that after the stock split on Oct. 11, 2000, Mr.
Kirkpatrick posted a revised bid of $10 to reflect the split, and
subsequently, between Oct. 17 and Oct. 23, Mr. Kirkpatrick raised
the inside bid five times from $10.50 to $11.375. "During the
entire period from July 21st to October 23rd, Kirkpatrick never reduced
OLIE's (Olsen Payne's) bid quotation for Freedom Surf. Kirkpatrick
had no client orders for his bid increases. He instead was steadily
increasing the bid at the direction of Allen and David Wolfson," states
the SEC complaint.
While Mr. Kirkpatrick was busy in Salt Lake City, fellow market
maker Mr. Pozner was busy at Glenn Michael Financial Corp. in New
Jersey, according to the SEC. "On July 21, 2000, Pozner, on
behalf of Glenn Michael, matched Kirkpatrick's initial bid quotation
of $5 just 2.5 minutes after Kirkpatrick's posting. Between July
21st and September 13, 2000, Pozner advanced Glenn Michael's bid
sixteen times, from $5 to $35," states the SEC complaint.
"During this time, Pozner posted the exclusive inside bid nine
times, and shared the inside bid with Kirkpatrick four more times.
Even when he was not ahead of Kirkpatrick in bidding, Pozner was
close behind, and in front of other market makers. Pozner posted
the highest daily bid of any firm on seven days during this time
period. Pozner had no client orders for his bid increases. He was
instead increasing the bid at the direction of Wolfson."
The SEC claims that in moving the bid at Mr. Wolfson's direction,
Mr. Kirkpatrick and Mr. Pozner knowingly and recklessly participated
in and furthered the manipulation of Freedom Surf stock. Mr. Pozner,
like Mr. Wolfson and Mr. Chapman, opted to plead the Fifth.
The SEC further claims that David Wolfson, Allen Wolfson, his office
manager and executive assistant Bonniejean Tippetts, Mr. Kirkpatrick,
Mr. Chapman and the senior Mr. Wolfson's three corporate defendants "effected
manipulative, arranged public market trades among Wolfson-controlled
accounts" between July 28, 2000, and Oct. 23, 2000, to inflate
the stock price of Freedom Surf prior to a key block sale of 25,000
shares to retailer Salomon Grey.
This is the first time the Canadian accounts played a key role.
"Six accounts at Canadian broker-dealers generated all of the
retail demand for Freedom Surf during the foregoing period: (1) East-West
Trading Corporation at Union Securities, Ltd.; (2) East-West Trading
at Canaccord Capital Corporation; (3) Karston Electronics at Canaccord;
(4) Leeward Consulting Group LLC at Rampart Securities Inc.; (5)
Consolidated Euro-Holdings at Credifinance; and (6) AZW Irrevocable
Trust at Canaccord," states the SEC.
The regulator claims that Mr. Chapman, doing business as International
Consulting, had trading authority over five of the six Canadian accounts.
The SEC also claims that Mr. Chapman operates out of the same business
address as Wolfson, and shares profits from trading in the Canadian
accounts with him. (Ms. Tippetts is listed as trustee of the sixth
account, AZW Irrevocable Trust.)
The SEC claims the Canadian accounts collectively purchased 12,950
shares of Freedom Surf from U.S. market makers in 10 transactions
at increasing prices between July 28 and Oct. 20, 2000. The regulator
further claims that sell orders from the Wolfson-controlled accounts
at Olsen Payne, near in time to the buy orders and in identical or
nearly identical amounts, provided to the marketplace the stock that
was used to fill the demand from the Canadian accounts.
According to the SEC, Mr. Wolfson's World Alliance and A-Z Retirement
Trust accounts accounted for 100 per cent of the retail sales volume
in Freedom Surf between July 28 and Oct. 23, 2000, with Allen and
David Wolfson calling in trades for the Olsen Payne accounts to Mr.
Kirkpatrick during this period. The SEC claims these manipulative
trades created actual and apparent activity in Freedom Surf stock,
and caused the stock price to rise.
"In the spring of 2001, the defendants sold over 1.1 million
shares of Freedom Surf stock in unregistered transactions from an
escrow brokerage account controlled by Brown and Bo Phelan, and from
the Chapman-controlled Canadian accounts," states the SEC.
The SEC claims the group continued trading through the Canadian
accounts even after investigators appeared on the scene. (SEC investigators
made surprise inspections of a number of the players on Nov. 30,
2000. The stock closed at $3.30 the day before, and plunged to a
low of 19 cents in the following weeks after the manipulation was
According to the SEC complaint, between August, 2000, and April,
2001, the Canadian accounts received more than 877,000 shares of
Freedom Surf from sources directly linked to Mr. Phelan and Mr. Wolfson.
The SEC claims that between March and June, 2001, the Canadian accounts
sold over 196,000 of these shares into the market, even through no
registration statement was in place and no exemptions were available.
Mr. Wolfson also faces criminal charges in the Freedom Surf case,
in a New York grand jury indictment returned last December, but no
trial date has yet been set.
TANNER'S MAID AIDE PROMOTION
So far, this has not been a good month for Mr. Kirkpatrick, the
Olsen Payne broker who serviced Mr. Wolfson. On July 9, Judge Campbell
of Utah ordered a permanent injunction against Mr. Kirkpatrick for
his role in the Freedom Surf case. A week earlier, on July 2, Mr.
Kirkpatrick was fined a total of $200,000 by a New York judge in
the SEC's unrelated Maid Aide case.
Mr. Kirkpatrick was fined $92,000 for disgorgement, $33,200 for
prejudgment interest and $75,000 for a civil penalty, in a summary
judgment entered by Judge William Pauley, U.S. District Judge for
the Southern District of New York. (Judge Pauley is no stranger to
Canadian penny stock shenanigans, having sentenced Vancouver broker
Trevor Koenig of Union Securities this January in the WAMEX case
and fined Toronto lawyer Simon Rosenfeld $2.8-million in the unrelated
Synpro civil prosecution in March, 2001.)
Judge Pauley found that from March through December of 1998, Mr.
Kirkpatrick and his co-defendants, notably Las Vegas securities lawyer
Mr. Tanner, engaged in a scheme to manipulate shares of Maid Aide
Inc. The scheme involved gaining control of a majority of Maid Aide's
shares, creating artificial demand through boiler room operations
and creating the appearance of legitimate trading through Mr. Kirkpatrick
at Olsen Payne.
The Maid Aide case was probed by the SEC, the BCSC, the FBI, the
U.S. Attorney's Office for the Southern District of New York, and
NASD Regulation Inc., the regulatory arm of the National Association
of Securities Dealers. U.S. authorities, through the criminal prosecution
and the SEC's civil case, have imposed a total of $15.3-million in
assorted fines in the Maid Aide case.
According to U.S. authorities, Maid Aide, purportedly a commercial
and residential cleaning services company, was little more than a
promotional shell fronted by the personal house cleaner of Mr. Tanner's
co-defendant Dennis Evans, also of Las Vegas. Within weeks of Mr.
Tanner and Mr. Evans incorporating Maid Aide in September, 1996,
with the cleaning lady as their front, Mr. Tanner opened his Delta
Financial account at Pacific International.
Mr. Tanner, the key player, was a former Internal Revenue Service
attorney convicted for his offshore penny stock fraud, money laundering
and income tax evasion who has now been sent to jail for eight years
and fined $3.25-million in restitution in the criminal case. The
SEC earlier gave Mr. Tanner a lifetime ban on serving as an officer
or director of a public company, and later temporarily banned him
from serving as a securities lawyer. The lawyer was convicted in
November, 2001, of 37 counts related to securities fraud, including
mail, wire and tax fraud, and money laundering, at the end of a five-week
His money laundering conviction related to his dealings at Vancouver
brokerage Pacific International Securities through his company Delta
Financial Resources, based in the secretive offshore enclave of the
Cayman Islands. The Tanner sentencing attracted national attention,
and kicked off a lead business story in the New York Times on U.S.
income tax prosecutions. "He funnelled the money through Canada
to the Cayman Islands to evade all taxes," noted NYT income
tax reporter David Cay Johnston. (Pacific International was not mentioned.)
WOLFSON SNARED IN OPERATION UPTICK
In the early stages of the Freedom Surf rig job, Mr. Wolfson had
the misfortune of being snared in the FBI's Operation Uptick, the
largest stock fraud case in U.S. history, an overall case involving
120 defendants, including at least 11 members and associates of five
different organized crime families. Besides Mr. Wolfson, the most
notable penny stock player in the June 14, 2000, arrest operation
was Mafia-linked New York promoter Ed Durante, a star client of Mr.
Koenig, who later helped put the broker, a top producer at Vancouver's
Union Securities, behind bars. (Mr. Koenig was recently released.)
The FBI bust apparently did little to deter Mr. Wolfson. Five weeks
after his arrest, his Olsen Payne broker Mr. Kirkpatrick posted the
opening quotation for Freedom Surf, on July 21, 2000.
The FBI's Operation Uptick was co-ordinated with the SEC, which
launched five civil enforcement actions against 63 individuals, including
Mr. Wolfson. Operation Uptick led to the arrest of 120 defendants
on June 14, 2000. Less than three years later, by late March, more
than 95 of the 120 defendants had been convicted on charges arising
from the Uptick case.
In the criminal case, Mr. Wolfson and six co-defendants were arrested.
Although Mr. Wolfson unsuccessfully fought a trial, resulting in
his conviction this March, his six associates all previously pled
guilty. Mr. Grecco, the Colombo Mafia associate, was sentenced on
Jan. 16, 2002, to 46 months in prison. Robert Balsamo was sentenced
on Nov. 16, 2001, to 30 months in prison. Konstantinos Dino Sonitis
was sentenced on Jan. 25, 2002, to five months in prison and five
months of home confinement. Three others -- Vladimir Carvallo, Spiro
Lazaretos and John M. Black Jr. -- either are in the midst of or
Mr. Wolfson, the ringleader, faces a maximum of 65 years in prison,
with a recommended sentence of at least 10 years. His sentencing
was set for July 11, but rescheduled to Sept. 12.
According to the evidence at trial, Mr. Wolfson was a stock promoter
and consultant who operated through a series of front companies he
controlled in Salt Lake City, including Cyberamerica Inc., Hudson
Consulting Inc. and A-Z Professional Consulting. The jury reviewed
evidence that Mr. Wolfson used these fronts to obtain large blocks
of free-trading stock in each of six small-cap companies at little
or no cost. Mr. Wolfson then paid secret bribes of as much as 65
per cent of the purchase price of the stocks to stock brokers in
New York to motivate them to sell those stocks to their customers,
according to the U.S. Attorney for the Southern District of New York.
The six companies whose stocks were manipulated in 1999 and 2000
by Mr. Wolfson included ATR Industries, a home-cleaning service operating
in Palm Beach, Fla., Learner's World Inc., which operated three daycare
facilities in New York, Rollerball International, a Los Angeles manufacturer
of in-line roller skates, Healthwatch Inc., a medical equipment company
based in Atlanta, Ga., Hytk Industries Inc., a Kansas-based oil and
gas company, and Power Exploration Inc., a Texas-based oil exploration
"Each of these companies were, at the time of Wolfson's stock
manipulation scheme, consistently losing money. Several of them,
including ATR Industries, Learner's World, and Hytk Industries, had
little or no market for their stock prior to Wolfson's scheme to
manipulate those securities, according to the government," states
the U.S. Attorney's Office.
The jury heard evidence that Mr. Wolfson used a network of corrupt
brokers in the New York metropolitan area to sell his stock in these
companies to the public. To insulate himself, Mr. Wolfson used Mr.
Grecco, the Mafia associate, as a middleman for the bribes. Mr. Wolfson
paid Mr. Grecco bribes of up to 65 per cent, and Mr. Grecco passed
on bribes of up to 40 per cent.
"The proof at trial established that Wolfson and Grecco used
corrupt brokers at the following brokers dealers in the course of
their scheme: Royal Hutton Securities, Bell Investment Group, Wolff
Investment Group, Carribean Securities, Grady and Hatch & Co.,
Sharpe Capital, J. Banks Securities, and J.W. Barclay," states
the U.S. Attorney's Office.
"The proof at trial showed that Wolfson's consulting company,
Cyberamerica, employed a staff of cold-callers who actively sought
out distressed public companies in need of financing. When such a
target company was identified, Wolfson then offered consulting services
to the company, taking payment in the company's stock. Wolfson then
sold that stock into the demand generated by his manipulation scheme."
WOLFSON BEAT PREVIOUS CRIMINAL CASE
In 1996, four years before the Operation Uptick bust, Mr. Wolfson
was snared in another major penny stock case, in which 45 promoters,
brokers and associates were arrested after an extensive FBI undercover
sting operation featuring two agents who helped arrange stock bribes.
(Fugitive Vancouver promoter Daryl Buerge of Cam-Net Communications
Network was also snared in this 1996 bust.)
Mr. Wolfson was charged with securities fraud, arising from his
paying a 20-per-cent bribe to an undercover FBI agent, posing as
a corrupt stock broker, to have the agent sell stock in a company
named Alpha Solarco.
The jury in Mr. Wolfson's recent trial heard of his success in this
previous criminal case. "Although that (1996) charge was dismissed
in 1997, the evidence at trial (this year) included a recorded conversation
between Wolfson and a co-operating witness working with the FBI in
which Wolfson recounted his 1996 arrest for bribing the undercover
agent, and explained that the 'only thing that got [him] off' that
charge was his claim on tape that he 'only wanted to do what was
legal,'" stated the U.S. Attorney's Office this spring.
THE VANCOUVER CONNECTION
An unrelated regulatory case also demonstrated Mr. Wolfson's fondness
for Vancouver brokerages. In a Sept. 17, 1999, decision, NASD Regulation
Inc., the enforcement arm of the National Association of Securities
Dealers, fined broker Richard Dambakly $25,000 and banned him for
one year in a case involving promissory notes related to Mr. Wolfson
and his associate Mr. Chapman. The regulator alleged the broker participated
in the issuance of four promissory notes by Trigon Corp. while he
was associated with Paramount Investments International, a U.S. brokerage.
"One half of the (promissory note funds) transfers, totaling
$240,000, originated with Canaccord Capital Corp., a Canadian broker-dealer;
three originated with Union Securities, another Canadian broker-dealer;
and one originated with Alan M. Berkun, who at the time was the owner
of Marlowe & Company, a registered broker-dealer with the NASD," states
the NASDR decision.
"Enforcement traced the source of the funds from the two Canadian
broker-dealers and discovered that the funds originated from five
accounts at those firms: East-West Trading Corporation ( East-West
), Karston Electronics Limited ( Karston ), Tamarisk Enterprises,
Ltd. ( Tamarisk ), World Financial Corporation ( World Financial
), and Lexington Sales Corporation Limited ( Lexington ). Each of
these firms is also a foreign corporation."
"Records obtained from the Vancouver Stock Exchange indicate
that East-West and Karston are owned by Gordon Heywood, a resident
of the United Kingdom. East-West lists its principal place of business
as Nevis, West Indies, and Karston lists its principal place of business
as Tortola, British Virgin Islands," states the NASDR.
"East-West had accounts at both Canaccord and Union Securities,
and Mr. Chapman is designated as their representative on the account
information forms. Mr. Chapman had authority to trade in Karston's
account. The next two companies, Tamarisk and World Financial, have
a number of common factors. Each has its principal place of business
in the United Kingdom, and the Secretary of Tamarisk is the President
of World Financial."
"Also, Alan Wolfson set up their accounts at Canaccord. Mr.
Wolfson was a stock promoter who, in October 1996, was charged jointly
with Mr. Chapman by the Securities and Exchange Commission in an
administrative proceeding with violating the securities laws," states
the NASDR decision.
These transactions all took place in the spring of 1996.
More than four years later, Mr. Wolfson had apparently not outworn
his welcome on Howe Street. In late 2000 and early 2001, Mr. Wolfson
used several of these previously red-flagged offshore companies,
East-West and Karston, to allegedly perpetrate the Freedom Surf fraud,
partly through accounts at the Vancouver brokerage firms.
As noted earlier, there is no suggestion that anyone at the Vancouver
or other Canadian brokerages had any idea anything was amiss.
b. Wolfson Proceeding
The Division charges that
from January 1999 through at least March 2000, Allen Z. Wolfson
fraudulently inflated the stock prices of BeautyMerchant.com (formerly
known as ATR Industries, Inc.), Learner's World, Inc., Rollerball
International, Inc., Healthwatch, Inc. and HYTK Industries, Inc.
The Division alleges that in connection with these manipulations,
Wolfson obtained control of large blocks of shares, caused sham
trades to be made to give the appearance of an increasing demand
for the shares in the market, paid bribes to six brokers to create
demand, and sold into that demand. The six brokers are also being
charged today for their roles in the manipulation. The Division
contends that the respondents received at least $7 million in illicit
profits from these manipulations.
ATR INDUSTRIES INC/NV/
Michael, David Irrevocable Trust 503,273 Senkovski, Alexander Irrevocable
Trust 503,273 A-Z Oil LLC 435,091 China Connection 435,091 East-West
Trading Corporation 435,091 Sequoia International 435,091
Karston Electronics LTD 435,091 Leeward Consulting Group,
September 17, 1999
Trigon received a total of $387,000 in installments from the lenders
located. Except for the first installment, when Dambakly needed money,
contacted Mr. Chapman and the funds were wired to Trigon’s account.
installment was advanced before the promissory notes were signed. Around
first of January 1996, Mr. Chapman wired $25,000 directly to Mr. Butler
payment of the agreed purchase price for his interest in Trigon. (Tr.
The remaining 20 installments totaling $362,000 were all made by wire
Trigon’s account at Marine Midland Bank between March 6 and September
1996. (Ex. C6.) Most of these funds came from sources other than the
named in the four promissory notes. One half of the transfers, totaling
originated with Canaccord Capital Corp.
Enforcement traced the source of the funds from the two Canadian broker-dealers
and discovered that the funds originated from five accounts at those
West Trading Corporation (“East-West”), Karston Electronics
(“Karston”), Tamarisk Enterprises, Ltd. (“Tamarisk”),
Corporation (“World Financial”), and Lexington Sales Corporation
(“Lexington”). (Ex. C14.) Each of these firms is also
a foreign corporation.
Records obtained from the Vancouver Stock Exchange indicate that East-West
and Karston are owned by Gordon Heywood, a resident of the United Kingdom.
East-West lists its principal place of business as Nevis, West Indies,
lists its principal place of business as Tortola, British Virgin Islands.
Ex. C16.) East-West had accounts at both Canaccord and Union Securities,
Mr. Chapman is designated as their representative on the account information
forms. (Id.) Mr. Chapman had authority to trade in Karston’s account.
Also, Alan Wolfson set up their accounts at Canaccord. (Ex. C16,
at 62, 84.)
Mr. Wolfson was a stock promoter who, in October 1996, was charged jointly
with Mr. Chapman by the Securities and Exchange Commission in an
administrative proceeding with violating the securities laws. (Tr. 145-46;
LEARNERS WORLD INC
East-West Trading Corp. 493,750 Cash And Secured Promissory Note
Sequoia International 493,750 Cash And Secured Promissory Note Karston
Electronics Ltd. 493,750 Cash And Secured Promissory Note Leeward
Consulting Group, LLC 493,750 Cash And Secured Promissory Note Lexington
Sales Corporation Ltd. 493,750 Cash And Secured Promissory Note
The David Michael Irrevocable Trust, 50,000 Cash And Secured c/o Wendall
Hall, Trustee Promissory Note
December of 1999 the Company issued 40,000 shares of common stock for
services to Richard D. Surber, pursuant to Rule 701 of the Securities
Act of 1933.
58. Six accounts at Canadian
broker-dealers generated all of the retail demand for Freedom Surf
during the foregoing period:
(1) East-West Trading
Corporation at Union Securities, Ltd.; (2) East-West Trading
at Canaccord Capital Corporation; (3) Karston Electronics
at Canaccord; (4) Leeward Consulting Group LLC at
Rampart Securities Inc.; (5) Consolidated Euro-Holdings at Credifinance;
and (6) AZW Irrevocable Trust at Canaccord.
59. John Chapman, d/b/a International
Consulting, had trading authority over five of the six Canadian
accounts. Chapman operates out of the same business address as
Wolfson, and shares profits from trading in the Canadian accounts
Grant such other and further relief as the Court may deem just and appropriate.
September 27, 2002
The following names appear in VAXCEL INC's SEC filings. Click on an individual's
name to show a list of all documents containing a discussion of this
individual. You will then be able to use EDGAR Online People to explore
**inside** each document to find executive compensation, corporate biographies,
stock options - anywhere an individual's name is mentioned!
BOWMAN, JACK L.
CARNAHAN, RAYMOND C.
HIRMES, ALAN P.
HOHNKE, LYLE A.
HONHKE, LYLE A.
HOPPS, GLENN F.
LUCHESE, JACK L.
LUCHESE, JACK J.
MAXWELL, GEORGE M.
MCDADE, HERBERT H.
MCDADE, HUBERT H.
NAME, JOHN CHAPMAN
NAME, SANDRA JORGENSEN
NEWMAN, MARK J.
REYNOLDS, MARK W.
ROSEN, MICHAEL S.
SURBER, RICHARD D.
TIPPETTS, BONNIEJEAN C.
WILSON, PAUL J.
WOLFSON, ALLEN Z.
Lots of familiar names here.
Edgar Online's records look a bit muddled in places
The entries ARCHIVES, EDGAR and BIOPHARM, AQUILA are not people.
In 'NAME, JOHN CHAPMAN' and 'NAME, SANDA JORGENSON' the 'NAME ,' is superfluous.
'JEAN, BONNIE' is Bonnie Jean Tippets
I wonder who 'Aquila Biopharmaceuticals' are/were.