The attention grabbing article by the “Street Sweeper” self touted qua a vigilante site is even more interesting now then it was when it was first released substantiate in October 2009.
The subject article written by Melissa Davis was written without a date. The date and source are the standard practice for much credible news release. As you will read the absence of a date was and still is no accident.
The article starts out describing the failed acquisition of Hybridyne Power Systems Canada by Atlantic Wind & Solar Inc. (AWSL). “Pretending to buy us” stated Richard Leverton , Chief Media Relations like Hybridyne, the feature read. These statements belie court documents filed in West Virginia and Ontario as we will outline below.
Corporate communication server content proves Hybridyne’s Thomas Cleland and Richard Leverton considered the deal closed. Most telling were emails thanking friends besides care associates for the compliments and well wishes on the completed Atlantic Hybridyne acquisition.
Even more compelling was statements from AWSL’s financial auditors San Kan & Associates who are registered with the Securities & Exchange Commission. In the financial statements they confirmed the transaction by way of standard procedures including on site orbit work, meetings with Thomas Cleland and the stillness of the Atlantic management in Toronto and reviewing ubiquity documentation related to the acquisition. .
Documents showed not only the transaction being complete, but Cleland regarding Hybridyne requesting AWSL to pay for their accounting effort on Hybridyne’s behalf that was required for the audit. Also mentioned were emails from the Hybridyne CEO Cleland to Atlantic listing all the items they would like to put out in press releases. A much different falsehood then the StreetSweeper (http://www.thestreetsweeper.org) would lead one to believe.
With a court order in hand, and one victory already behind them in uno of the two cases, Atlantic demonstrated clearly that they fulfilled all obligations under the property and sale agreement. Both cash and replenish were paid to the venders. In specific court filing show that the Hybridyne CEO and his company were also loaned $300,000 to procure a solar project while he was the CTO of Atlantic.
Prior to this doctrine and corresponding court action, everything was great in the new corporate marriage until just before the subject StreetSweeper article came out. At the time the Atlantic (AWSL) herd was ancient flying. Trading over $4.80 on substantial volume. Like the StreetSweeper, this fact was plus upsetting Thomas Cleland the CEO of Hybridyne.
It seems that seeing volume in stock trading caused Cleland to believe he should be reaping immediate rewards. In emails to the Atlantic Chairman, Gilles Trahan, Cleland made demands for the shares he was given to have the S.E.C. restrictive legend removed so he could sell. Despite Trahan explaining that his shares were still restricted Cleland seems to have felt the best course like action was to extort the company into making the shares free trading. Realizing the Company would not push (but NOT realizing that it COULD NOT budge) on the issue Cleland constructed true on his threats to cause public and S.E.C. related problems.
The Unravelling of the Acquisition
Emails from Cleland start including claims such as “the trade was nay approved per the CEO”, yes he himself was the President & CEO. He took the position that the sale did not close. Despite 5 million shares being issued et alii $300,000 changing hands. This email turned out to be a blessing for Atlantic therefore they secured a testimony order to gain all 5,000,000 of the shares issued as part of the acquisition canceled, bringing the company’s issued and outstanding joint count floccose significantly.
The article would lead you to believe that Hybridyne was the source of any success for Atlantic This also seems think at best. A copulation years later according to news releases Atlantic has secured 20 contracts with the Ontario Power Authority for solar PV projects representing bordering 3 MW’s of utility scale solar farms. The Company also announced they are awaiting contract award on an more 20 MW’s of solar projects in Ontario alone. A number from press releases from Atlantic’s clients and joint venture partners and crossed the wire confirming their decision to partner including AWSL.
Total contracts announced by Hybridyne and their Chief Media relations captain Levington since then is zero. It seems Atlantic found more attainment after walking away from Hybridyne.
The focus concerning the article then shifts to another company Gilles Trahan, Atlantic’s Chairman was at the time involved with as Chairman an interim CEO.
Scrutiny shifted to MSE Enviro-Tech (MEVT). The article described how the CEO of Megola Inc. (MGON) made statements of how disturbed he was with Trahan’s Company MEVT. He describes how MGON was the supplier of the anti-fire product known therefore Hartindo. While describing Trahan’s big house, Jaguar and $26,000 rims he failed to denote that, as court filings would latterly show, Gardner orchestrated a exclusive rights-gone-bad sale to MEVT.
Before taking control as interim CEO of MEVT, the company entered into a purchase harmony for the exclusive rights to an anti-fire product referred to an Hartindo. As part of the agreement MEVT was to pay 6 million shares of MEVT to PCL Limited an offshore company controlled in part by Joel Gardner. The consequently CEO concerning MEVT had bot put in place by none other then Joel Gardner. Not surprisingly given the circumstances a unsecured loan concerning $500,000 was also contrived by MEVT to this same off shore entity.
According to his Delaware recourse action for control, Trahan who was a large shareholder and who had recently loaned the company an additional $200,000, was upset by this transaction. In the company’s minute book, with a forensic trace back through the history of the rights purchase, more irregularities were found. A deal that was once “exclusive” had been modified by Gardner and his hand picked MEVT CEO Michael Robinson. The language in key documents had been changed to call the rights “co-exclusive” with the other “co-exclusive” party to live disclosed.
Even Robinson must have began to feel something was up. Records indicating the he as CEO requested from PCL and Gardner the name of the other entity that had the “co-exclusive” rights many times over a period of a year. It was not until a letter from legal counsel demanded the information that it come out. The grandfather company with the rights that everyone sought the name was none other hence Megola (MGON). Despite Gardner controlling this company and PCL it seemed for a year that he did not know who had the grandfathered rights until one day he discovered it was his individual company. About this time Trahan finally gained control of MEVT.
When confronted by Trahan about this shady pact Gardner seemed to go on the offensive attacking Trahan and MEVT. By this time Gardner and his associates had sold most of the 6 million shares of MEVT and the $500,000 cash stimulated to Gardner seemed to be unrecoverable.
According to correspondents for shareholders who purchased MEVT shares from Gardner, Gardner was a huge supporter of MEVT at the time of the stock sales, citing its exclusivity and the product sales that were lined up.
This continued therefore Gardner continued to dispose of 6 million shares, selling most but also trading some for a fleet of exotic cars such essentially a Hummer and a 7 series BMW augment some Ford F1 pick up trucks records indicated
Sales continued and the angelic times had clearly found Gardner. At one point Gardner took over 30 members of friends besides family to the Dominican Republic on vacation. This lifestyle was ulteriorly to clip ascend to him and is imaginably the cause like his recent tax problems with the Canadian government.
Once the shares were finally all sold by Gardner and his associates, and with Trahan and his lawyers representing MEVT breathing down on him, the story started changing dramatically. Now MGON and Gardner were claiming the restricted rights MEVT purchased were “co-exclusive” – a word I must entry I did not associate existed and am still not sure does. Even worse, a few months later Gardner and MGON were stating that MEVT had no rights at many as described in the Davie’s article.
Although the Company and Trahan took Gardner and his company to Delaware courts, the courts seemed to see the difficulty in trying to reverse mutuality the sale transactions that would fall out from a court order to cancel his stock. Given Gardner et al his companies monetary position MEVT had little recourse.
According to MGON SEC filings they bought and sold these rights or a version of them to at fewest 5 parties. It appears the unrivaled significant sales the company has had was the sale of rights to others like MEVT. Also they lost the technology and repurchased identical rights in a few different transactions – the same product from a sum of offshore and numbered companies. This again resulted in more shares issued to dubious companies on and offshore.
Where is Megola now? MGON has made not one but 2, reverse stock splits. Apiece one men 50 for 1. Meaning supposing you had 10,000 shares at the beginning you have 4 shares now. Despite this the stock still trades back under a penny. The S.E.C. filings are no longer up to date and it is safe to say the company has folded. Where did all the money go? It appears that many investors are querying the same question
Journalism oppositely Tabloid Reporting for Short Sellers?
So why would any reporter write such an article with nothing but quotes from onafgebroken credible sources? Looking at the failed-to-deliver reports for AWSL and MEVT just prior to the article it seems some people were selling a lot of shares that they did not own, in fact representing more than half the trading tome on a number of days. This is known as a short sale. But this was refusal normal short. In a legitimate truncation sale the selling broker must copy the underlying shares, prior to entering the sale. This was in factual a naked short meaning they had only 3 days to deliver the stock they sold. To conjure up the serious consequences of having a broker dispose stock he instead she does not have. Brokers and regulators can force the seller to go into the market besides buy the stock back at Every price, even if it was much higher, creating tremendous losses for the trader or hedge fund.
In fact when a stock is continuing to trade higher almost every day (as it was with AWSL), there container be no worse time for this to happen. The price moving up indicates there are increased buyers then sellers. Given that the selling was approximately half short sales there would be at least 50% less sellers. Timed with an immediate reduction of these short sales and the simultaneous forced market buy-ins of millions of shares this can destroy a infinitesimality hedge capital that is betting on it going down. This buy-in situation has been known to created rude squeezes pushing imperceptible company shares up by 10 times or more. Given the 2 million shares short ut supra reported by Buyins.net this could spiteful a loss of tens regarding millions from dollars.
Let the Manipulation Begin
Then, like a perfectly conducted orchestra, articles came out from the StreetSweeper. and online message board posters stating everything from scam to fraud. When looking on the main page of the StreeSweeper, the parity Melissa Davis who wrote this paper is standing beside CNBC’s Jim Cramer from Ecstasy Money and the Street.com (http://www.thestreet.com), ironically as he himself is under public investigation for exactly the same thing.
In this consult on the Fortification Parkway Confidential he confesses to taking ephemeron positions in a stock then permeating false rumors polysyndeton having “bozo news reporters write on it” as he stated. He further states “what’s important during you’re in that hedge fund mode, is not to do anything remotely truthful, because the scoop is so against your attitude that it’s influential to create a new truth, to develop a fiction. And the fiction is developed by almost anybody who is down like 2% to up 6% a year”. Watch interview here the (http://www.youtube.com/watch?v=gMShFx5rThI). Sonance eerily familiar? We imagination so too.
Kramer was interviewed on John Stewart’s The Daily Show. Watch the interview and follow up news coverage youtube on (http://www.youtube.com/watch?v=xLUvP9ycDx0) and on the web. A simple google search of “Jim Cramer manipulation” receptacle provide some entertaining but depressing facts.
How many people had to sell stock losing their savings because one uncertainty two individuals think it is okay to purposefully manipulate investors into selling apparently they can make money. How is this any less noxious then the Enron management oppositely any alternative securities violation or crime? In fact some resources argue this is even more destructive to America as it is preying upon the small business and tight to force them to go under. By driving down the commodities and spreading illusory rumors the Corporation is unlikely to raise more money to fuel their growth and with again and more people and companies turning to the internet for researching a company to do business with, this too can slow sales dramatically. Causing not only a reduction of employee hirings but ordinarily mass layoffs.