Stem Genetics Boiler Room Stock Scam
Stem Genetics Escrow A/C
A/C No. 646656355,
Bank code 122100024
via Bank One at 1750 South Power Road, Mesa, Arizona.
I have e-mailed Bank One ten times and spoken to them twice by phone but am always fobbed off with 'we are still carrying out our own internal investigations'. My contact dealing with the enquiry is Mrs. Louann Hembree 001-480-890-5170 or e-mail her at firstname.lastname@example.org).
A response received from Dr. Robertson of Stem G, in reply to an email sent by me to him on the 22/07/03 following a telephone conversation the previous day.
Dear Mr. Robertson.
Thank you for taking the time to discuss the detail of Stem Genetics IPO yesterday (21/07/03). As an investor in the Company I would like to confirm the details we discussed yesterday and also seek your answer to a further number of questions.
1. We discussed the fact that you were brought into the Company to sort out the 'float' problems. Please could you confirm who hired you and when?
2. We discussed the fact that the original Stem Genetics IPO filing had been withdrawn by yourself and you stated that the the original business plan was illegal. This plan was presumably drawn up by the original directors who you confirmed had all now resigned. Who requested these resignations and when? Please provide full details of the people concerned? You also stated that you felt the original Company set-up and plan was a 'scam'. Please confirm your reasons for stating this?
3. We discussed the role of your stock agent, The Sukumo Group, from Japan and you stated that you were unhappy how they had handled the flotation to date and you were actively seeking changes to the agreement between yourselves and them. What are these changes and how will they affect existing shareholders?
4. We discussed the Escrow account into which shareholders funds had been placed and you confirmed that this account has been closed and that the funds are now in a Stem Genetics money market account. You also confirmed they are being used solely for the purposes of funding the re-submitting your IPO filings to the SEC and for a small salary to the Companies secretary. Please confirm which bank and a/c no.s where the money is now held? The bank who held the escrow account have confirmed to me that the a/c is closed.
5. We discussed the question of the FDA grant which was stated to be in place by the Sukumo Group when the shares were offered and was the deciding factor in my choosing to invest with your Company. You stated that the FDA grant does not exist. Please confirm that this is the case?
6. Mr. James Barrington of the Sukumo Group confirmed to me last week that the flotation was planned for a provisional date of 18/08/03 next. We discussed this yesterday and you stated that subject to SEC regulations and acceptance of the revised business plan that flotation could take several months more yet. Please confirm.
7. Mr. James Barrington of the Sukumo Group also stated last week that the offer price was likely to be 10-12 US dollars, but you confirmed yesterday that as per the original filings this will be 7 US dollars. Please can you confirm which is correct and why there should be any discrepancies?
8. The original filing with the SEC was withdrawn in April this year. Why was I not notified promptly by the Company of its intentions as required by the rules of the SEC?
I trust that you will be able to answer my queries promptly and look forward to receipt of your communication shortly. Thank you for your assistance to date.
1. I was hired by the sole officer of the company at that time, Elena Weissburd.
2. I am not sure of the details prior to my being hired. It appears to me that Alan Wolfson set up the company. The officers involved really didn't do anything to conduct business or research, I don't see that anyone did anything in the company until after Mr. Wolfson was convicted of securities fraud, after which the officers of the company resigned, likely to avoid any accusations of fraud on their part. (this is speculation on my part).
3. We are still unhappy with the Sukumo group and are in the process of severing all ties with them.
4. Elena is the treasurer and has control of the bank accounts. I do not have check signing privileges or account information.
5. There are no grants pending or in place.
6. We are putting the finishing touches on the 10-SB and it should file within the next few days. It will then take several months for this to be approved by the SEC.
7.I cannot speculate on future prices.
8. I am not a lawyer, it is my understanding that as a privately held company we were not obligated by SEC rules for public companies. We have never had SEC approval to be a public company or to trade stock in America. One of the lawyers may have a better explanation, we intend to comply with all SEC regulations.
Thank you for your interest in Stem.
I'm not in the business of defrauding investors. I wouldn't have to move to Utah if I wasn't really running a company. We are in the process of cancelling any ties to the Sukumo group. We are about to file the 10-SB to the US SEC to become a publically traded company.
I left the debate because it was a waste of my time to argue with skeptics. It is better to get the business going and make everyone some money.
Are you going to check out the so called Doctor Robinson, who supposedly purchased a new house in Utah, his address allegedly being, and I hope that this makes sense to you, Saddlebrook Subdivision at 13000 South and 2700 West in Riverton.
He should be at home because he definitely does not have a job with Stem on the University of Utah Science Park because it simply does not exist at that location.
Stem Genetics, Inc.
3809 South West Temple
Salt Lake City, Utah 84115
April 11, 2003
Securities and Exchange Commission
Division of Corporation Finance
Attn: John Reynolds
Washington, D.C. 20549
RE: Stem Genetics, Inc.
Registration Statement on Form SB-2
File Number: 333-96709
Filed: July 18, 2002
Dear Mr. Reynolds:
On behalf of Stem Genetics, Inc. and as a director and the secretary for the corporation that signed the SB-2 registration statement submitted to the commission on July 18, 2002, with file number 333-96709, on behalf of the corporation we are requesting the corporations EDGAR filing of a registration statement on SB-2 be withdrawn, effective as of the filing of this letter.
The withdrawal is sought as a result of the need for the corporation to reformulate its business plan.
No securities were sold in connection with this filing and the proposed registration. The corporation may undertake a subsequent private offering in reliance on Rule 155(c) of the Securities Act of 1933.
/s/ Laura Henderson
Vice-President, Secretary & Director
Operators Arrested - see Newman and Wolfson section