Friday, 6 March 2009

Free the Geneva One!

David Falt gave an interview to the Swedish press today. Although he's been questioned by the Swiss Police on two occasions he's been released both times, and has not been charged with anything. It seems that it's part of a bigger investigation involving many more people and organizations. In the press interview Falt undertook to show xG Technology (and ACH) to be the lying thieving rats they are, and to correct some of the newspaper's earlier mistakes, like not being charged or having been in Jail in 2009. When asked why did he leave xG and ACH he said that he’d found out some things that made it impossible for an upstanding honourable man like him to stay connected with these companies. What are these things? Why are ACH and xG so keen to have him silenced?

I think we should remind ourselves of what Goyard (who Marc Dannenberg claimed was Falt) wrote on the board around that time…

“This a company with lots of bad stuff in there past and quite a lot of bad stuff that is about to surface.

First shareholders where subject to fraud in Idigi Communications LLC and 30 million USD was lost. This funds ended up in Gibraltar and Bahamas. They where all transfered via Austrian Banks. How ever there are still outstanding claims and major legal issues pending. This may or may not be solved through settlements time will tell. Talks have been going on for years. xG is diverting the problem to Iceland again. There is E&Y SPV on Iceland dedicated to take care of this. This is done to avoid disclosure issues, how ever as xG board members are active in this it will be hard for xG as a company to deny knowledge of theses issues prior to the IPO. If this group sue xG or if there claim is sold to some one who will then sue the company I think xG and its board will all be found guilty of wrong full disclosure.

Then we have the Swiss Bank who is owned by the largest Israeli Bank who is suing xG and its CEO and CFO. Information that is out is indicating that a major (top 5) US law firm has done a study on the Banks case against xG and it will hit media with in weeks.

Then we have the core technology and its viability. Some significant Swedish Scientists at KTH [believed to be Prof Zander] and other private companies have been running computer simulations on the "field test" done in 2005 based on the public information plus material published by Dr Mandelbum. This simulations are interesting and will at some point hit the public spotlight.

The demo that was "done" in Iceland during the Idigi day was later found out to be a pre-recorded demo. No live signal was ever sent. This was secured evidence by the pension fund done in forensic studies of there own servers used by Idigi for the demo. How ever as the case was settled out of court this information was never made public.

Then we have the inflated stock price. [At the time he wrote this it was around $12. Now it’s $0.50] Due to pending legal matters xG was forced to pull the IPO and issue a convertible bond. Lucky for them as the share issue was far from subscribed for due to lack of trust in management and technology. This is a strong indicator that the share price should be around tops 4 USD post transaction and post funding. The boiler groups around xG and the CEO and CFO are all driving this pricing by lapping shares and issuing press releases with questionable content. For example the last issue about the "deal" in Turkey is just a LOI and NDA with some on with no track record in communications. Its not a deal with a spectrum owner or operator/ISP. Any one can do "deals" like that. In this context its also important to know that all the retail investors (no professional investors participated in any of the first PP) who has funded xG so far all have a average price per share at about 1.5 USD. So look out for major price adjustments in November when lock up agreements are history and all of the want out.

The last issue I see is the total lack of responsible and professional management and board. There is not one single communications expert or any one who has built a global or even national company before. The lack of experienced operations guys is a major joke I would say given the targets and claims they make.”
Interesting stuff eh? Especially considering his statement in today's press. In the interview he claims that, as I speculated, he was issued a load of shares by xG’s CFO (Roger Branton), and then they broke the deal. Seems like they tricked him as the certificates issued didn't reflect the name change from XG Technology LLC to XG Technology Inc. Dirty eh? He sued and was counter sued – he believes to try to shut him up. He also says that the sale of shares to the Israeli bank was done by another person in the bank.

But here’s why I’ve suddenly got so fond of David Falt: He says he was arrested as a part of a WIDER INVESTIGATION involving MANY MORE people. Like you, I’m wondering how many of those people are linked to xG, and ACH…

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