Mats and Palmi Email

A chap called Tom commented on my last post about Palmi Sigmarsson. He says Palmi isn’t at all ruthless, is kind to animals, and regularly helps old ladies across the street – before blowing their hard earned pension on iDodgy shares.

But Tom does have a point - I do not know Palmi at all. In order to address this issue I have invited Palmi to comment on the post, and I’ve cc’d Mats so he can see how nicely I write about him. Email sent just now:

from John Prescott
to palmi@psr.is
cc info@wennbergindustries.se
date Sat, Sep 5, 2009 at 11:20 AM
subject Sales of restricted xG Shares.
mailed-by googlemail.com

hide details 11:20 AM (0 minutes ago)

Dear Mr Sigmarsson,

I write a blog about xG Technology. My last post was about you selling xG Technology shares whilst they were under restriction, via an unregulated stock dealer, and at around half the then market price. I thought it only fair to give you the chance to reply, and would welcome your input into the discussion. I promise to post your reply without editing on the blog.

You will find the post here: http://xgtechnologyscam.blogspot.com/2009/09/mats-spanks-palmi.html

Yours Sincerely,

John Prescott.

Mats Spanks Palmi.

What lovely company xG Technology seems to keep.

Rick Mooers: Sued for Fraud at iDodgy. Currently CEO of the xG Scam.

Roger Branton: Sued for Fraud at iDodgy. Currently CFO of the xG Scam.

Joe Bobier: Faked demo at iDodgy. (check out the post Here - from
someone who was there). Currently CTO of the xG Scam.

Victor Suno: Manipulated/lapped xG shares for ACH

James Woodyatt: Former employee of Optimal - a feeder fund for Bernie Maddoff. Sacked. Conned GAMA into an LOI and was rewarded with deputy CEO position.

Frank Peake: Such an annoying twat that someone actually slit his throat! Honestly!

Major Shareholders: Berth Milton - His money does not come any more dirty (although I have admired some of his works in the past - purely research..). Johan Bohman - stole money from a CHURCH!

And I'll come on to Palmi Sigmarsson in a moment. In fact the only one that comes out with any sort of credit is Mats Wennberg. In fact Mats recently tried to do the honest thing (as honest as you can be surrounded by these people).

Do you remember the Press Release that xG sent out on 24th April 2009?

Lock-up Agreement relating to shares in which Director is interested

xG Technology, Inc. (LSE-AIM: XGT, "xG" or the "Company"), which has developed an innovative, low-cost, mobile VoIP and data communications system, is pleased to announce that a lock-up agreement relating to a total of 22,344,191 shares in the Common Stock of xG (held by Stormur Holding AB, in which Palmi Sigmarsson has an indirect 58.7% controlling interest, and representing approximately 16.9% of the Company's share capital, the "Locked-up Shares") has been entered into by Palmi Sigmarsson and companies under his control.

In order to avoid the creation or continuance in the market of an impression that there may be an overhang of shares owned or held by Palmi Sigmarsson or companies under his control, they have entered into a lock-up agreement with Wennberg Industries AB ("Wennberg"), representing the Company's senior independent Director, Mats Wennberg.

[My italics on indirect]You'll probably wonder why such an agreement was necessary. Why go to the bother of stating this? Isn't it enough that there was already the standard AIM lock-up period in force? Well step forward Marc Dannenberg! Step forward Palmi Sigmarsson!

It seems that these two had been conspiring to sell RESTRICTED xG shares, during the lock-up period! And not only that, but selling them at around HALF the then share-price. AND selling them to US citizens in contravention of 'Regulation 'S''!

Whoops! I have an invoice from Marc to a US Citizen for shares in Guardian Holdings Ehf, (Have a look in xG's shareholder register and you'll see Guardian is a major xG shareholder - the director of Guardian is Palmi Sigmarsson). So in effect they were buying xG shares whilst under lock-up.

It seems that Mats got wind of this (somehow - ahem) and blew his top. He demanded that Palmi sell no more restricted shares, and that give over to him the control of those shares. Well done Mats! Good for you.

Does it end there? Was it an isolated incident? Ohhhh Noooo. I know of at least two other sales of restricted stock, and have the bank account details that would prove it. Also note the subtle way that Palmi is not a Direct owner of the stock, but indirect. It seems that this slight distancing of him from the sale - even though he is the ultimate beneficiary - has been used to somehow justify the sale.

This is very interesting! Who else do we know is an indirect owner of xG shares? Yep! You guessed! According to the AIM admission documents Rick Mooers AND Roger Branton also own their shares indirectly, through trusts intended for their minor children. Could it be that the large volumes we saw traded through AIM, via SIS, were part of these trusts? SIS is as we have seen sometimes used to disguise who actually is the owner of any particular stock trade.

So Palmi, old chap, lets have a look at your old company Spectra shall we? On the 12th of March 2004 the Finance Inspectorate withdrew Spectra license to act as a finance/trading firm. What they found was that the company had virtually no internal controls, that their 'assets' were large shareholdings in un-listed highly dubious companies (remind you of ACH?), that their capital requirements were hilariously inadequate, they had enormous conflicts of interest having board members on many of those dubious companies (ACH AGAIN!) and that had huge exposures to some very dodgy deals.

Reading between the lines, Palmi has prior experience of all the criminal activities that ACH were undertaking.

Which makes me wonder: Is Palmi the architect of this current xG/ACH scam?

It would explain the huge shareholding he seems to have been gifted by Rick and Roger. As well as the experience he certainly seems to have the ruthlessness and the disdain for the law which such a scam needs. He knows Rick and Marc from the iDodgy days. Spectra was the one that introduced the Icelandic pension fund to Rick, and NCR Boiler room introduced Spectra to Rick. It all fits.

Now Mats. Do the honest thing again - and shop the lot of them to the Police.

Déjà Vu all over again

Nothing much seems to change over at South Pineapple Avenue. Still scamming. Still lying to the stockmarket. Still pretending that 'any day now' they'll launch a revolutionary 'phone. And still getting folks (like me) kicked off the iii.co.uk boards...

Anyhoo. there's a few nice new details to keep me entertained. Firstly Johan Bohman has always fascinated me. He is after all the sole reason that xG are still in business. How can one man have so much money, but be so stupid with it? Obviously as we have seen elsewhere on this blog he was conned into investing in xG by our very own Fredrik Wahlman (shyster, unregulated stock-promoter) - whilst they were both on the piss in Bangkok. Now that he's sobered up, and realized what an enormous fuck-up he's made it seems like Johan and Fredrik aren't buddies anymore. When the Treco website was originally made live, the sole representative was our buddy Fredrik. Now look on the Treco site and Fred's name is nowhere to be seen.

But it gets stranger. Perhaps Johan hit the bottle again after getting rid of Fred because who did he turn to to ensure strong honest leadership at Treco? He needed someone reliable. Someone with an outstanding reputation. Marc Dannenberg was busy polishing his head so in June, Victor Suno - an ex-ACH dodgy dealing, stock manipulating arsehole - who also happened to be a xG board member, was named on Treco's site as their representative.

Well that didn't last long! A month or so later and Victor's gone too! Looks like the only people that Johan could find were a random Krav Magna instructor(!), a Welsh bloke, and Richard Kromka. Poor old Fred, poor old Victor, well I suppose they can burn their xG option certificates to keep them warm on the cold winter nights.

But Johan seems to be having even more problems than just the Treco affair. Not least that he's realized his investment in xG is next to worthless, his name is also being splashed all over the Swedish press in a less than favourable manner. We read at Affairsvarden that:

Billionaire Johan Bohman's asset management company, Green Stream Investment Services, violated both the Companies Act and the FSA regulations for years. [If the] Inspectorate had known the truth, the company had received its license revoked.

It seems like he was doing extremely risky deals with money that a CHURCH had invested with him - in violation of the wishes of the church for safe, secure, investments. When Green Steam went bankrupt the church took a huge hit.

In an eerie-echo of Palmi Sigmarrsons' company Spectra Holdings, Green Stream were operating at way, way below the minimum capital requirements to conduct such a business. They illegally covered this up to the authorities, and the shit is only just hitting the fan now. Palmi on the other hand wasn't quite so successful at lying and the authorities caught up with Spectra.

Worse than that Johan blatantly stole around 8 Million from investors! He valued a nearly worthless part of his business at 8 million, sold it to another part of his business, and pocketed the entire amount himself.

There seems to be no corner, no crevice, of xG Technology that doesn't stink of fraud.

Real Life Performance Data

Quite a few people over at iii.co.uk, Raustovitch steadfast among them, have held on heroically to their xG shares in the distant hope that mathematics was wrong and Bobier was right. 'Lets wait for real-life performance data', seems to be their call.

Well chaps, there's good news and there's bad news.

The good news is; I have stumbled upon some actual performance data for you, done in a real-life test with real xMax equipment. Yey! The bad news is; umm, sorry, Bobier was ~wrong~. xMax is just ~nothing special~. It works, sure, but (according to people who know) its performance is 15 years out of date. Ouch! There's two websites below with the data. They are tests done in Florida with the xDrive system. The first one shows two tests done 13/3/08 and 11/3/08, you can play with the settings - a figure of 34 is required for acceptable voice, and you have to plug in the antenna location to get proper readings. On the second site, the setting required are shown as 34(signal strength) 29.30(latitude) -81.1127(longitude) 1(antenna sector). I don't have the second antenna location for site 1. The second site shows pins all over the 'Birds Eye' view of the tests area. Passing your mouse over the pins shows the signal strength.

http://www.wirelessexpressions.com/xdrive.aspx

http://www.wirelessexpressions.com/virtualearth.aspx

Aside from showing xMax's radio performance is 15 years out of date, the tests don't actually show how well an xMax system would work in real life. It's probable that performance is even worse that 15 years out of date because these tests don't include any interference. xMax is meant to work in unlicensed spectrum so *will* be subject to interference. "But", says Mr Raustovitch, "What about the Wavelet Pass Filter - the 'Key to xMax' according to Bobier - which means xMax can bypass interference?" Well have a look HERE just to remind yourself. It can't.

It won't work better in unlicensed spectrum. It won't carry more users. Their BER curve does show their true performance - despite their hurried retraction. It won't send signals further on less power. It won't need less basestations to cover an area. It won't make a network cheaper than other systems. All the revolutionary performance claims made to fool money out of investors in this stock scam are FALSE. xMax is nothing special in theory. xMax is even less special in practice. xMax is dead. xMax only ever existed so that Mooers could con people like Raustovitch out of their hard-earned money. xMax only ever existed as a scam.

What we have now with all the changes highlighted by the FCC tests is something quite different to xMax. Something new. Something regular. Something pedestrian. Something that could work. Let's call it "newMax". Raustovitch: Sorry mate. They've offered a brand new rocket-powered Lamborghini to entice you in, and switched it for a 15 year-old Ford Mondeo and hoped you wouldn't notice.

Dealer Program PPT

So now we know that the performance of the BTS250 bears no relation to what they originally claimed for xMax. Wireless Guy over at iii seems to know his stuff: "This looks like it will do a fine job of supporting a 100 or so VOIP calls and perhaps text messaging or emails..." BUT as this PowerPoint show proves they were telling the dealers that it would support 780 simultaneous calls, and that OPEX and CAPEX would be lower than other systems. Not might. Not may. Not could. But will support 780 simultaneous calls

Another interesting thing is (slide 4) that they claim the carrier (Telcentris) rates are specially negotiated - but then send me a Cease and Desist when I post them as they are too embarrassing...! And the final hilarious kicker is the launch date: April/May/June 2007!

Unless they announce they have changed their technology to the
stockmarket, they have ONCE AGAIN broken the AIM rules.

I've highlighted interesting things in red. Not all the slides are shown as quite a few are just marketing blurb. First up is the properties of the doc so you can see who wrote it.

Cease and Desist

You'll notice the 'Flashcomm and xMax' thread with the Telcentris prices has been taken down due to a Cease and Desist from parties as yet unknown. Some bollocks about copyright. I'm assured that I'll find out in a few weeks who the spoilsport is.

It seems to be OK to call xG a fraud and a scam, to say that Rick and Co are thieves, to point out the illegality and immorality of what they are doing - but to suggest that even with a conventional basestation design that the scam won't be profitable for dealers mug enough to sign up is a big no-no.

Treco / Bohman

I almost missed this gem of a comment on the 'Bohman is a Crook' thread. These are the circumstances that saw the White Knight of Treco ride to the rescue of the damsel xG. It's especially pertinent considering yesterday's results hailed the Bohman-owned Treco as the next great step for xG. A poster called xStureplan says...

"Bohman is a pathetic figure.

Bohman has essentially not done any business for the last five years.

Part from spending his time grooming his reputation as a “great” businessman, he has occupied himself with his three favorite pastimes: legal fights with his x, partying and drinking. Drinking has got him into some serious problems: Divorce (still fighting his x), breakup with family and business friends, and bad -really bad- business.

On occasions, Bohman takes a timeout from his hectic social agenda to concentrate fulltime on “the bottle”. In February 2008 he locked himself into a hotel suite in Thailand cutting himself off from the world during at least a month. Only a few old “friends” were able to access him. During this time someone (Whalman?) took advantage of the situation and talked Bohman into starting investing in xG. Whoever it was, he managed to get Bohman’s intoxicated mind into believing that a crashed ACH scam that everyone wanted to get out of, was in fact a major technological breakthrough that would soon rally (in the worst bear market since 1929!). Over the next few months Bohman invested close to SEK 100 million in xG at a level of about USD 5. Needless to say, that money is now forever lost.

In a last attempt to rescue his investment, Bohman formed the empty company Treco in December to enter into a contract with xG to purchase a number of base stations. He sent out press releases pretending to be a billionaire (when in fact he was seriously running out of cash himself), and pretending to be a major shareholder in EFG (when in fact he never held more that 1% of that company and he has probably sold most by now to fund his lifestyle).

Conclusion: someone was using Bohman as a dumping station to get out of their holdings in xG. Now, finally, the world knows what Bohman himself has known many years: that he is an “x”. "

Final Results - '08

Those of you familiar with xG will be able to look through the hyperbole and spot the inaccuracies, lies, and exaggerations that these reports always contain. It’s always entertaining to compare what we know to be true with what xG say is true. Lets’s remind ourselves about AIM rule 16, which in essence says that potentially stock moving news – good OR BAD – must be released to the market as it becomes known.

Where’s the news about ACH? Where’s the news about the collapse of the Florida launch? About the base stations and phones not having FCC approval? About the base stations being returned as they didn’t work?

Let’s have a look at their key points and compare them with the truth:

They Say:
· Recorded sales of a total of 327 base stations, resulting in $16.4 million in revenues, compared to $0.3 million in 2007. Operating Profit before interest and share-based compensation was $7.7 million (2007: $6.2 million loss) and xG made a net profit of $2.0 million (2007: $12.0 million loss)…. [costs of] $6.3 million related to non-cash stock-based compensation costs (2007: $7.1 million)

We Know:
· They’ve shipped basestations to customers that didn’t even want them, and then booked those down as ‘Sales’! How the hell can they sell BTS without FCC approval! They can’t be used, and they don’t work as advertised. So from the very start these accounts are a lie, or at the extreme end of aggressive accounting – booking BTS shipped (to customers who can’t use them, or don’t want them) as receivables and those future receivables as current sales.
· Share based compensation! Who are they compensating and for what?! Fredrik Walhlman, James Woodyatt for the chop-stock they’ve sold, and perhaps a few coppers for Marc too. It’s $6.3M worth of shares – what a pity they can’t be sold for full price, huh?

They Say:
· The Company remains well-financed, with year-end net cash and cash equivalents of $15.8 million (2007: $32.7 million).

We Know:
· They are burning through cash at a record rate: half their cash gone in one year. It’d be interesting to know exactly what these ‘cash equivalents’ are, and what proportion of the cash went to making a network, and what proportion ended up in the hands of Mooers and Branton? I bet they aren’t paying themselves in stock….

They Say:
· The initial phase of deployment of the xMax BSN250 base stations in the Southern Florida market has begun, xG took delivery of the first fully commercial, production-ready TX60 handsets designed and developed by Cambridge Consultants Ltd. and completed testing the integration of the TX60 handset with our BSN250 base station, enabling xMax mobile VoIP calls between our TX60 handsets and base stations. …..The xMax system provides an extended range of operation and is expected to provide superior handset battery performance and double the call capacity of mobile WiMAX networks.

We Know:
· ‘Deployment has BEGUN’? They LAUNCHED November 2006! Their only actual customer dropped them, they delivered unworking BTS to another (and booked it as revenue even though the money was refunded). Where’s the news about any of this? Evidently I missed the news that none of the equipment has FCC approval – and none of it works as advertised.
· Double the call capacity of WiMax! Superior handset battery life! They can’t even get it to work in a very simple, basic demo! Marc – I’ve worked out who your dope dealer is…

They Say:
· xG signed an agreement with Treco International, S.A. to act as its exclusive infrastructure partner in the United States, allowing xMax carriers to finance, by equipment lease, a substantial part of the capital costs needed to deploy xMax networks.

We Know:
· That Johan Bohman who owns Treco is a cocaine fuelled dodgy dealer. And I suspect that Treco seems to be a loan shark for xMax dealers. It’s a clever idea. It probably works like this: All the ‘sales’ go though Treco, which means that xG don’t have to announce who their ‘customers’ are. The BTS is shipped – whether it works or not, or the customer wants it or not – and xG record a ‘sale’ of $75k. Treco gets a kickback of $x,000 (possibly in ‘Share based Compensation’)?. Treco start sending demands to the customer of say $5k a month forever…. The only one that loses is the ‘customer.’
· Oh, and has anybody noticed that a BTS seems to be $50k to anyone else, but if you order 1000 the price goes UP to $75k!? Could that be to increase the figure the end ‘customer’ would owe Treco? It can’t be an increase in unit costs, because they are boasting elsewhere of a margin of 92.5%…!

They Say:
· Continued patent filing activity, enhancing the Company's portfolio of intellectual property. The patent portfolio now comprises a total of 47 United States matters (10 patents issued, 18 pending utility applications and 19 pending provisional applications) and a total of 82 foreign matters (8 issued, 64 pending applications, and 10 applications).

We Know:
· Patents are worth nothing unless the invention actually works, and none of xG’s have raised a flicker of interest from any technological expert. Luckily nobody except Marc has taken out a patent on Gullibility.

Rick Mooers says:
"We have created the xMax Authorized Carrier Partner Program and are actively talking to interested parties and building our pipeline of customers."

We Know:
· They’ve lost: SkyTel, Telefonica, National Grid, Gama, Far Reach, Flashcomm, and ALL the other ‘customers’ that were signed up for the $57M pre-launch in the non-IPO documents. EVERY customer they’ve boasted about they have lost. They also name-dropped: Bear Sterns (old one!) Microsoft, Google, Credit Suisse, GE, Barclays, and the good old Pheonix Foundation. Well, they all came up trumps didn’t they?
· They’ve also lost/parted company with: 2 Nomads, their second biggest shareholder, and more PR companies than I can remember. Great job Rick.

They Say:
· Another significant industry trend witnessed in 2008 was the considerable increase in the number of subscribers choosing flat-rate, unlimited minute wireless calling plans, particularly prepaid plans.

We Know:
· None of them were your subscribers Rick! End users for xMax, umm, Zero.

Richard Mooers..... Roger Branton..... Mats Wennberg..... Olaf Hendgren..... Robyn Harte-Bunting..... Victor Suno..... James Woodyatt..... Palmi Sigmarsson..... Stefan Bennici ..... Gunnar Engellau..... Marc Dannenberg..... Jonas Krepp..... Paul Behler..... Charlie Geller..... Daniel Briggs..... Simon Starr..... Xavier Moreels..... Johan Bohman…and Stuart Schwartz – YOU BOYS TOOK A HELL OF A BEATING – A HELL OF A BEATING.

The Bank Hapoalim Story

Ohh, Johhhnnn. Johhhnn. Where are you John? You remember yesterday when you posted about David Falt having "lost his lawsuit against xG in which he tried to screw shares out of them"? And you remember when I took the opposite view? That it was xG that screwed Falt?

Well look what a few words of Yiddish can get you... The truth is that xG issued certificates to Falt, and others, under the name of xG Technology LLC. They then claimed they had changed their name to xG Technology INC and did the dirty on him and all the others. Here is the truth: as Realtid.se reports - HERE - Roger Branton issued the shares around March 29, 2005. Roger authorized them - 100%. Falt deposited them in the Bank of New York. Later on that year he sold some of them, but when the bank tried to get the certificates xG told them they were Null and Void. xG had stabbed him in the back. Why? Because (reading between the lines) he was disgusted at the way xG were doing business. He was dangerous to them, because he could expose them - so they tried to shut him up by suing him.

All during 2006, claims and counter claims went back and forth between Bank of New York, xG, Bank Hapoalim, Falt and the others, and Roger Branton. He claimed that the certificates HE had signed were null and void because they were issued in xG LLC, when the company was now called xG Inc. Now let's look at the letter John: You'll notice two things. Firstly you'll see that Hapoalim are siding with Falt, they are helping him. He's the one that's been ripped off. Secondly you'll notice that Hapoalim state that xG, their technology, and their principals are DODGY AS FUCK.

And to further prove just how dodgy, nasty, shallow, and vindictive xG are have a look at the two documents beneath it. They were both filed on the 9th November 2006, just four days before the date on the letter from Hapoalim. You'll see that Roger Branton - the same asshole that issued the share certificates - ONLY THEN changes the name from LLC to Inc despite the fact he'd been arguing all year that the name change had already happened! Obviously one suspects that it was only done to deny the sale of the perfectly legal certificates issued. In the writ that followed Hapaolim accused xG of FAILING to inform them of their name change from xG Technology LLC to xG Technology Inc. In fact - as evidenced here - when Falt sold the shares the certificates were perfectly valid

Rick you are a shit.
Roger you are a shit.

John? John? I can't hear you...Speak up....

Rick Mooers CPA

To become a Certified Public Accountant (CPA) is a great achievement. In total there’ll be around SEVEN years of studying to get to this point, and many people have to retake the exams several times such is their difficulty. A CPA denotes a professional of respectability, integrity and honesty, who will according to their code of ethics “commit themselves to honor the public trust” and give “unswerving commitment to honorable behavior, even at the sacrifice of personal advantage”.. .

It turns out that Rick Mooers passed the CPA exam in 1986 (congrats Rick) and got his license number: CP4184. All he had to do was submit some work he’d done as proof of practical experience and he would be a licensed CPA. But, even though he’d done that experience with a couple of firms in Maine he failed to submit anything to the CPA office. Why? He’s 99.9% there! Very strange.

Hmmmmm. Could it be that he discovered that the penalties for a CPA found responsible for financial fraud are draconian? Go straight to Bubba, do not pass go. What would’ve been a civil crime for Joe Public ends up being a criminal offense for a CPA.

Warning...!

Warning - I nearly died from laughing when I saw this. Wear some sort of corset or girdle before clicking on this link. Looks like times are tough for our old buddy Marc Dannenberg. Still, it's nice to see the registration of Flashcomm SA wasn't wasted :-)

LINK

How does it go? MMMMMoooooooHHHHHAAAAAAAAAAAAAaaaaaaaHHHHHHHHHHHaaaaaaaaaa!

El Con Communications, LLC

Obviously with the history of iDigi and the allegations of money being siphoned off then at “50 cents on the dollar” I was interested to have a look at the set up of some of the other companies in the Mooers Branton empire. There is a bewildering amount, a huge number of inactive companies (10 iDigi ‘whatever’ LLCs), but also several active companies too. Obviously the companies and their bank accounts that I suspect that have the real cash in them - the offshore accounts, the accounts in Iceland - are not going to show up on an internet search, but I thought I’d check out the web search at Delaware Corporation House and Florida Corporation House anyway. The websites are great, particularly the Florida one. Anyway, I found some interesting/amusing things:

240 S Pineapple Ave Sarasota, FL 34236
This address pops up as the address of dozens and dozens of companies, not just Mooers and Branton companies either. What is it? A huge tower block? Must be crowded huh? Well in fact it seems like 240 S Pineapple drive is just a lawyers office. The sort of place where you might get an imitation brass plaque outside, and a postbox inside. There are no massive offices for the powerhouse of the MB empire - at least not at their registered address. Why do they always have to be mysterious? To be honest it makes them look like they’ve something to hide :-). Check out some of the companies listed there - I didn’t make these up – I almost choked on my cornflakes when I found the first one:

El Con Communications, LLC
El Con Associates, L.L.L.P
Dodgepoint Associates, LLC
Courthouse Square Associates of St. Pete, Inc
….And dozens of others.

We’ve no way of knowing if any of the above are M&B companies, although they are named perfectly. Does El Con contain any money from the xMax con?

Anyway there are some that we know are M&B companies:

Binghamton Housing Group, L.L.C.
Mooers Branton & Co. Incorporated
Landmark Hospitality, LLC
MOOERS PARTNERS, LLC
MB MERCHANT GROUP, LLC
BRANTON PARTNERS, llc:
Branton Family Company LLC
BRANTON APTS CO., LLC:
SANDHILL MERCHANT GROUP, LLC
CONNECTCOM INC.
CONNECTCOM MERCHANT GROUP, LLC

Most of these we know absolutely nothing about. What assets they have. Where they came from. They’re just entries at the lawyers office. No websites, no mentions. Nothing. The only ones that do have any info on are Binghamton Associates and xG Technology Inc, and they both seem to owe money! Not huge amounts, but when you’ve got $22M in cash in the Company account, plus $70K a month, plus $300k a year, plus bonus, plus share options, you’d have thought these piddling amounts aren’t a problem.

Binghamton Associates LLC has Richard L. Mooers, Kevin S. Zern, and David S. Band (the lawyer) on the filing documents. They’ve just had a nice touch selling THIS hotel for $1.8M to Avichal Corp. With that in mind you’d have thought that the near $15,000 they owe to the City of Binghampton for unpaid water rates for another property at 92-98 State Street would be loose change. But they are about to be cut off! Hmmmm

And of course xG Technology, Inc. Firstly on the Florida filings they were about to be struck off in October 2007 for not returning their annual report, and had to send a nice letter to the authorities. That would’ve been interesting.

The Delaware filing is VERY informative. I’m not an expert on Delaware tax law, but as far as I understand you pay $250 if you’ve less than 1000 shares, or $250 for each million of assets divided by the number of shares. This is just the fee to be incorporated in Delaware, not the actual US business tax they’d pay. In the official filing we get the following information for the 2008 tax year.

Tax/Void Warning - Filing Information
File Number: 3562449
Name: XG TECHNOLOGY, INC
Tax Year: 2008
Tax: $41,590.16
Penalty: $0.00
1.5% Monthly Interest: $76.41
Previous Credit/Balance: $36,520.87 CR
Filing Fee: $25.00
Amount Due: $5,170.70

Begin Date End Date Designation/Stock Class No. of Shares Par Value/Share
05/08/2007 COMMON 500,000,000 .010000
PREFERRED 250,000,000 .010000


Whoa! Seven HUNDRED and fifty MILLION shares! That’s just silly. I thought the 129,925,276 they’ve already issued was a lot - There’s still 620,074,724 to go! That won’t be dilutive…...much! If I understand it correctly, by the tax they owe for this year it seems they value their own assets at $166M – a long way from the $1.5B their promoters were talking about.

The most interesting bit though is for a company with $22M of ‘cash, or cash equivalents’ in hand they don’t seem to be able to find $5k to pay their taxes! Hmmmm.

Going Cheap: 100,000 xG Shares

Interesting story in today’s press. It seems that although there are several Swedish owners of xG stock, none of them is declaring it to the Finance Inspectorate. I wonder why not? It came to light as a guy called ‘Maths O Sundqvist’ who has a company called Skrindan has defaulted on a One Billion SEK loan with Carnegie Bank. Among the assets of the fire sale auction was 100,000 xG shares. I love the way his employee Peter Lind tries to distance himself from ACH, claiming they bought them elsewhere (even though they also had stock in Central Asia Gold too…!), and I also LOVE the way they call xG a ‘Bubble Company’.

And has Vic Suno left xG? It says he was a director ‘until this January’? Rats and sinking ships eh? [Edit: It's been pointed out on iii that this is incorrect. The article actually says he was a Director (of xG), and an employee of ACH until January. My bad. Poor Swedish.]

”The speculative bubble company XG Technology has attracted many venture investors shares. It now turns out that even financier Maths O Sundqvist got in on the company.

The large holdings in Maths O Sundqvists empire is well described. It includes large holdings in established listed company like Industrivärden, Fabege and SCA. During his financial crisis, other parts of his portfolio were in a forced sale, like his holdings in Hexagon and Öresund.

But it is not just the kind of reputable shares included in the portfolio. Carnegie Bank released information before the auction of his Skrindan Company on March 17 that shows the company owns shares in crisis company Central Asia Gold and contentious XG Technology.

According to Peter Lind who worked at Skrindens he bought the 100 000 xG shares in March 2007 for about $ 10, which means a total of about 7 million SEK at the then exchange rate. Peter Lind bought 10,000 himself at the same time..

This means that Sundqvist went into XG-shares near the top. Since 2007, the XG price has fallen to 88 cents as of last Friday, which values the holding at 800 000 SEK.

Several other Swedes are among the major owners of XG Technology. The Swedish-controlled banking firm ACH in Switzerland is one of them. ACH has according to xG's website almost 10 percent of the shares. ACH recently went bankrupt. And for Peter Lind, it is important to distance themselves from the banking firm that is already blacklisted by the Stockholm Stock Exchange, even before the bankruptcy.

”I want to emphasize that we did not buy shares in XG by ACH, but the investment was carried out after a presentation of the company where its future prospects were presented. We saw on a similar investment that we would have done at Sandvik and Volvo.”

Other major shareholder in the company director Mats Wennberg, which increased its holding in the autumn. He bought shares over the past six months stock prices and now owns about 2.6 million shares (2 per cent of the shares). Victor Suno, xG director until January this year , and an employee at ACH, owned under the last known data 250 000 shares.

xG shares have carefully avoided established and regulated fund ownership Sweden. It is clear from the statistics that Finance Inspectorate prepares quarterly. Among Swedish equity funds, which are under the supervision of Finance Inspectorate, there isn’t anyone who owns any xG shares. “

So, as well as ACH’s shares being dumped, this guys 100k will too by the looks of it. Going down. Next stop $0.01?

ACH - Dirty Deeds Done Dirt Cheap

If you had any doubt as to the downright dodgyness of ACH allow me to put that doubt to rest. Theirs is a tale of insider-trading, outright fraud, stock manipulation, and the launches of bogus companies. Let’s start out with a little background.

ACH Securities was founded by a bunch of Swedes, including Olof Hedengren, former CEO of Fischer Partners. He started the firm together with two colleagues from Fischer, the head of asset management, Peter ‘The Turk’ Andersson, and Dennis Carlsson. Other Fisher people who had both been fired for unauthorized trading joined them: Patric Sjölund, and Norwegian Pål Mørch (who later would become a partner in ACH with 12 percent of the company). You’ll come to realize that when someone is caught out insider trading, or doing dodgy deals, they end up in one of three places: ACH, EFG private bank, or prison. These places covet the skills only found in the dregs of the financial world.

As we know ACH were thrown out of the Stockholm market in 2004 for refusing to disclose the identities of person’s insider trading Skandia shares. However they continued to act as if nothing had happened, they had the same mostly Swedish customers, they used the same brokers, the only difference was that the Swiss Privacy laws meant that they could be even more brazen.

Soon enough a hard-core network of people like Bernhard von der Osten-Sacken, Edvin Austbø, and Norwegian financier Arne Fredly would be using ACH to do the deals that no-one else would do. We know that Osten-Sacken has been arrested. Fredly has just won a libel case against a Norwegian newspaper because they couldn’t come up with enough hard evidence for his dealings, but…just because no-one would squeal does not mean he didn’t do it.

Their deals included:

· Insider trading on a number of Electrolux trades
· Insider trading on the Findexa bid on Eniro.
· Insider trading in Gambro before the bid for medical technology company became known in April 2006
· Insider trading on SSAB's acquisition of the North American steel company Ipsco for 56 billion kronor.
· And as recently as October ’08 Arne Fredly bet 500 million on a short position in Ericsson shortly before a profit warning. Strangely, Edvin Austbø made exactly the same trade, at exactly the same time. What a co-incidence.

All these deals were done by ACH. In fact an insider there said to the Dagens Naeringsliv newspaper that they knew what their quarters’ sales were going to be even before any of the sales had happened!

Osten-Sacken was, as we’ve discussed also involved in the Allokton fraud (along with our other old pal Johan Bohman of EFG, and xG via Casper Holdings). When Police were looking to question him about the insider trading he fled – to Switzerland, where he rented a villa in Verbier. He was joined there by Andreas Forsell, the former Finance Director of Allokton, who found another job waiting. Guess where? Yep, ACH Securities!

ACH, despite being banned in Sweden, have worked hard there in the IPO’s of some fairly dodgy companies These include Central Asia Gold, Malka Oil and not least the outright scandal that is TMG International (TMGI).

They punted this company to investors, and then – here’s the nasty bit – were revealed to be responsible for huge short trades in the company from our motley crew in collusion with the owner Jostein Eikeland. The Company lost 96% of its value, and made some people even richer. Eikeland is now being investigated by the Norwegian Economic Crimes Bureau for serious fraud.


Now what is interesting about this is not the dodgy deal, but how it mirrors what could have gone on in xGT. ACH bought TMGI’s shares at a massive discount, and then sold them on the open market for ‘face value’. This is a process known as a ‘Chop-House’ trade, where one buys at literally pennies in the pound. At one stage at the end of 2005/2006 ACH was TMGI's largest shareholder with 65 million shares, that’s around a third of the company. But three months later ACH has disappeared from the shareholder register.

Where did the stock go?

They ended up registered at… SIS Segaintersettle! From there the shares were either sold, or ended up back at TMGI. In effect ACH were using SIS as an extra layer to disguise who the real physical owner of the stock is, just like a computer hacker uses as proxy terminal. It’s very difficult to find out who bought the stock and who sold it (and what chopped price they paid). And if it’s the same person doing both buying and selling then that’s more difficult to detect too…

It seems that it was common practise for ACH. The same pattern was used with Central Asia Gold, listed on the NGM Stock Exchange. [N.B. Who is a MAJOR shareholder of NGM? – Our friend Fredrik Wahlman!] In 2005, there were 50 million shares registered with ACH. Six months later, ACH has disappeared from the shareholder list. Instead, SIS Segaintersettle comes up with 90 million shares, about 40 percent of the company!

Then one looks at Malka Oil, the ‘sister company’ to Central Asia Gold: and one third of the shares end up registered at SIS. Chairman of Malka Oil is Mikhail Malyarenko. He is also a board member of Tomsk Refining with Pål Mørch, partner at ACH. (Look out for the IPO of Tomsk Refining – coming to a Chop House near you…!) Obviously the same motley Crew, with ACH, were merrily insider trading at all these companies.

Now lets remind ourselves of the situation at xG, and see is it fits the pattern:

1. Discounted ‘Chop-House’ issue? – Check!
2. Use of SIS Segaintersettle? – Check!
3. ACH holding masses of stock? – Check!
4. Insiders selling with prior knowledge of stock movements? – Check!
5. Involvement of these insider trading people? Well, we don’t know, BUT Johan Bohman, AND Fredrik Wahlman move in all the same circles…..
6. Collusion between the company’s principals and ACH? – I’ve no doubt whatsoever. Just follow the money.

Now that ACH is closed I’ll make a prediction: Most, if not all of the above names will end up connected with, or working for, EFG Private bank. They are the only other company that can truly appreciate their ‘special’ talents. EFG is owned by one of xG’s major shareholders – Johan Bohman.

Stock Lapping

One of Falt's accusations was that ACH were 'Lapping' in order to manipulate the price of xG Technology's stock. What is 'Lapping', and does it fit in with our observed behavior of the trades of XGT's stock?

The following diagram demonstrates what lapping is:



Lapping is essentially 'robbing from Peter to pay Paul'. In financial fraud terms it utilizes the fact that the fraudster has access to multiple accounts, and that it's usual for large firms to send out monthly statements alphabetically, so people with surnames starting with A gets theirs sent on the first of the month, those with B on the second etc. This is useful to them because funds, or stocks, can be 'borrowed' from an account and won't be missed for another thirty days.

Usually a dummy account is set up, which we will call account A. Money or shares, are diverted from a regular account, B, and in order to hide this, funds from account C are put into B, C's loss is covered by D, and so on. This juggling of accounts can have a number of aims:

Firstly it enables people to simply steal money from account A, and cover this by continued transfers.

Secondly, when one is dealing with stocks, it means that the volume is multiplied significantly. If one has 30 accounts to lap through, then the volume is multiplied 30 times. If as we said before ACH are both the bid and the ask of any one trade it could theoretically increase the price every time. However the bubble bursts when at these inflated lapped prices there are more sellers than buyers from outside the lapping circle.

Does that fit our observed picture? HELL YES!
1. After IPO xG's stock price rockets.
2. There's dozens and dozens of unusual trades; selling below the bid, and buying above the ask,
3. And then when people like Marc Dannenberg boast of selling at $18/$15 a share, the price crumbles.

Summary: Falt was right, and ACH and xG are thieving bastards

Another thing is, in the recent press-coverage of the ACH bankruptcy an 'insider' said that they had ONLY 50 active customers and 2-300 actual proper accounts. That's a staggeringly small number. The rest of ACH's 6000 customers were in the pyramid/MLM scam called the Bridge Group. Bridge is, like ACH, banned in Sweden. It claims to offer the opportunity to 'buy-in' to companies *before* IPO. Like ACH its customers seem to be mostly Swedish, but as Bridge don't have a license in Sweden, when they complain about having been ripped off there's nothing the Swedish authorities can do. Each bridge member had to pay to open an account at ACH, as well as a $1,800 joining fee - And then watch what they bought plummet up to 90%....

Total Bridge customer deposits at ACH were only $7.6M. (Thankfully all of that is covered by the Swiss guarantee scheme as they are all small customers with <$80k each under deposit.) So if 6,000 people only had on average $1,250 or so on deposit, that must mean the other 300 customers are HUGE, right?

It seems that ACH weren't as large as they made themselves appear. Nothing wrong in that - a bit of salesmanship. Olof Hedengren of ACH said in the press the other day that only a 'very small' number of people would lose money in the Bankruptcy because everyone else had under the $80k threshold. Naturally as a brokerage the majority of customers would have their holdings in stock, but even so maybe there's only $30-40M in cash. [Edit: The press now reports their assets to be ONLY $10-16M!]

It does make the $10.8M that Olof borrowed from UBS a little while back in order for them, and their customers to buy stock in xG Technology seem like a MASSIVE amount! It would make xG a huge part of ACH's business. Is it any wonder they were keen to play ball with a little manipulation?

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 iii.co.uk 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…

Fredrik Wahlman, ACH, and EFG

[Fredrik is one of the two unregulated stock promotors involved with xG.]

Fredrik is a successful man. He founded a successful business, got well rewarded, the company's expanding rapidly into Asia, he's a big shareholder in the Nordic Growth Market stock exhange, and his company sells them a system for THIRTY MILLION kronor. He should be delighted. He should retire to the sunshine.

But then why the hell is he involved in a scam like this? Why is he reduced to posting abusive messages on Bulletin Boards? Why is he pimping his arse out for Richard Mooers?

Strange isn't it? There's no doubting that Our Fredrik is the same Fredrik that founded Univits International. If you check HERE you'll see that the mobile number is the same as the one that Dannenberg's been calling.

If we look a little deeper we begin to see some connections:

Univits develops electronic stock exchange platforms, good ones by the look of it, and the Nordic Growth Market NGM buys in. Then interestingly in 2004 he develops a system for....Our good friends ACH Securities! It doesn't takes the brains of a Quarterback to realize this is where Fredrik got involved with xG.

Fredrik obviously moves in some decidedly down-market circles because who do we find holding a million (maybe more) shares of Univits? EFG Private Bank, which used to be IBP Fondkomission which was owned by our other old friend....Johan Bohman.

Hmmm. I'm starting to see a pattern as to why Fredrik is so important....

****************************

Incidentally before Univits Fredrik was a Broker with Penser Fondkommission. I had to laugh when I saw that they've been accused of doing some of the things I'm accusing ACH/xG of:

"Penser Fondkommission(EPF) has contravened the Stockholm Stock Exchange’s rules by buying and selling AstraZeneca shares on its own account in a manner that resulted in EPF conducting business with itself. In a large number of cases, this practice also influenced the price of the shares. Accordingly, the Stockholm Stock Exchange’s Disciplinary Committee has ruled that EPF must pay a fine of SEK 300,000. EPF is a member of the Stockholm Stock Exchange. According to the Stockholm Stock Exchange’s rules for Exchange members, members must place orders in the trading system in such a manner that the orders do not intentionally result in an internal transaction. In this context, an internal transaction is defined as when the buyer and the seller are the same natural or legal entity. Nor may the member place an order or implement transactions in a manner intended to improperly influence the price of securities.

It is apparent from the inquiry conducted by the Stockholm Stock Exchange that on more than 1,400 occasions during the period January to mid-September 2006, an EPF employee has purchased and sold AstraZeneca shares on EPF’s own account in a manner that resulted in EPF intentionally conducting business with itself. On more than 1,000 occasions, the price of the share was also affected, due to the latest price paid for the share having been updated as a result of the internal transactions.

A very large portion of these trades, that should never have taken place, were executed at prices that deviated from the prevailing latest paid prices."

And if they can manipulate the price of a HUGE company like AstraZenica, then consider how easy it would be to manipulate the price of little old xG, with hardly any other buyers and sellers out there.......!
*****************

So we've got a guy who's rabbid at pumping xG. Who's involved with firms like ACH and 'close to the wind' people like Johan Bohman. Whose former employees have been fined (quite a few times) for stock manipulation...Is anyone smelling coffee?

Johan Bohman is a Crook

Well, who’d have thought it? XG Technology involved with a businessman who is less than honest! As if we haven’t got enough crooks in the set-up with all the directors of the business, Marc, Fredrick, Falt, Berth, etc, well now we can add Johan Bohman to the list.

From what I can make out (my Swedish is non-existent so I’m relying on Google translate) it seems like he was involved through his companies of IBP Fondkommisionand, which then became EFG Private Bank in various very shady deals that cheated the Swedish Councils of Millions of Kroner. It also seems like he was involved in the Allokton fraud.

So far in the Allokton fraud a man with the fabulous name of Bernhard von der Osten-Sacken has been arrested for Fraud and insider trading and is looking at (or serving) a two-year stretch. This guy is infamous for buying Sweden’s most expensive bottle of Champagne at a ludicrous 75,000 SEK – which shows you what sort of disgusting reptile he is.

Anyways Von der Osten-Sacken (which translate rather poetically as ‘of the Cheese Sack’) was a director and large shareholder of Allokton the other principal owner was IBP Properties and Mangold Fondkommission …owned by Johan Bohman. Many of the same people (Like Mats Löfgren) sat on all three boards.

Seems like our buddy Johan is fairly well known as a man who is separated from crime by the width of a cigarette paper, as well as his love for wild nightlife. Which by the looks of him has taken its toll (He’s in the middle.)



One poster on a Swedish Forum gave us resume and a bit more info on Mr Bohman:

“As Davidoff suspected as Johan Bohman a key behind both IBP Properties, Mangold indirectly Allokton. [Oster-Sacken] can only be seen by the media as finance, but JB is one of the most stringent and unscrupulous finance that we have in this country.

MORE QUOTES (translated from Swedish):

” Allokton are among the most dishonest [companies] I have seen in a long time in the industry, "said Bengt Turner, professor of economics on Allokton. “

”As some have said, very simply done in this thread to spread light on swindler Johan Bohman This certainly seems to be a multifaceted person with a somewhat dubious agenda. Why did they [hang out]? Snow? [Cocaine] “

”The fact that BVDOS is in lawful custody, may suggest further arrests of people like Johan Bohman and Mats Löfgren? Can it draw some of the above companies into the bleach? What other players may be involved? Have I missed / misunderstood anything? “

AND ONE WORRYING ONE:

A forum member at flashback.info speculates that Mr Bohman was behind a bombing of a guy who didn’t pay up…

“According to my source, which is probably the same as journalists, it is JB [Johan Bohman] "businessman" in the article. Name of the attack matches. True or not, I do not know. “

“ Members of the IRA behind Åre bomb?
Two members of the IRA, Irish Republican Army, are suspected of having carried out a bomb attack in Åre. When the men landed in Sweden they met the professional criminal who is a gangster leader. A businessman - who considered himself to have been cheated out of three million - are suspected of having instigated the bombing.

On the morning of February 5 a bomb exploded outside the newly opened Thai restaurant PhD in Åre. "All indications suggest that there were two Britons who carried out the attack. We know their identities and by English police are men linked to the IRA, "says a police source. Some time ago a businessman loaned three million to a 32-year-old man. The money would be used to open a store in Stockholm, but the project went bankrupt. "The business man said that he passed on a real blowing, "says a police source. According to police suspicions they must pursue the money believed to have gone to people in the circle around the alleged gangster leader Milan SEVO. SEVO has in interviews and police denied all knowledge, and has been freed in a visible trial, but the police claim that there are contacts between his gang and people linked to the IRA. "For some elements within the IRA is the political struggle subordinate, instead it is organized crime that is on the agenda, "says a police source. 32-year-old who borrowed money from the businessman, according to police, via decoy interests in Åre. Two days before the bombing two Britons flew to Stockholm. They were provided with mobile phones. Identification of mobile phone traffic show that the trip went to Åre by car. When the bomb exploded, there were phones near the restaurant. Traveled to Stockholm after attack was your trip back to Stockholm. "Telephone traffic stopped when they approached the city to take the flight home, "says a police source. "The bomb was a warning. We believe that 32-year-old carefully had realized that it was the IRA guys who were behind and that the next time would get him for real, "says a police source. "32-year-old claim that no threat existed" - but is so scared that he had gone underground. “


Calling Swedish People! Have a check for Johan Bohman on www.flashback.info. There’s quite a bit on there, but it’s all in Swedish, love to know what it says…..

The Phone Calls

In response to Clifton – here’s the list of calls Mr Dannenberg made that was intercepted by/obtained by Okey. Together with some comments. There’s quite a few I haven’t found anything about, and quite a few Spanish mobiles, these could be quite innocent (although obviously I doubt it – it’s Marc Dannenberg), but who else do we know in Spain? Johan Bohman lives mostly in Spain…

1) Switzerland 41227079369
ACH Securities
Either Stefan Bennici or Marc's mate Gunnar Engellau.

2) Spain 34654997317
Spanish Mobile

3) Spain 34652885657
Spanish Mobile

4) Switzerland 41313234040
Swiss Police
Money Laundering Department.
Hello. HELLO!

5) Sweden 46708876785
Fredrik Wahlman
First person Marc calls after the Police. Lower key stock promoter, but probably more important than Marc. Used to post as Paradigmshift on iii.co.uk. As he is based in Sweden one has to ask his involvement in deals such as Bohman, and Berth Milton. He calls TWICE more later on. There's Swedes everywhere!

6) Sweden 46703279014
Jan Larsson
CFO of NS Norisol Sverige AB (jan.larsson@norisol.se) Don’t know much about this guy, apart from the website. Interesting that he's a FINANCIAL officer of this company, AND he was the second person Marc called. Big customer? He's definitely important to Marc.

7) New London,CT 860-444-0102
Richard Mooers
And then the stinking spider in the center on the web. As Deep Throat said to Woodward when talking about the source of the Watergate corruption: "Just follow the Money." And the money here ends up in the pockets of Rick Mooers. The address is 3 Shawandassee Rd Waterford, CT 06385 - hence my log-in on iii.co.uk. GoogleMap "shawandassee road, ct 06385" to see the house that fraud built.

8) Switzerland 41227079373
ACH Securities
VIC SUNO - DIRECT DIAL
Touchdown! Here's proof of the link between one boiler room merchant, a now bust boiler room in Geneva, and xG. (Anyone see the story in the Swedish press about Marc calling the journalist there enquiring about how much it would be to buy ACH. I howled with laughter. What a joker.)

9) Hackensack, NJ 201-315-9763
TCP Cable Works
Paul A Behler. "My best buddy Paul is still here" said Marc the other day, and here, I assume, he is. Also it was around this time Marc was trying to "set up an xG network in NY state". You've gotta guess these aren’t unrelated. How many alias's on iii.co.uk do you think these two guys are responsible for?!

10) Switzerland 41797767189
VIC SUNO
Mobile Number. Again into the cesspool Marc

11) Switzerland 41223272611
Registry judges - Investigating Magistrate Isabelle Cuendet.
Mme Cuendet specialzes in Fraud and Money Laundering. I need say no more.

12) Iceland 354-820-5003
Peter L. Mogensen
(my Icelandic isn't great) but I think he was part of B-Mobile, which is now part of Vodaphone.

13) Spain 34952332408
Banco Atlántico (Av. Andalucía) en Málaga
Marc's bank

14) Spring Vly,NY 845-352-8631
Harvey Steinberg
Marc's stepdad. 25 Chester Ln,Nanuet, NY 10954

15) Belgium 32475707710
??

16) New York,NY 212-309-6552
Erica Evans
ING - Head of Institutional Product Management and Client Service

17) Hartford,CT 860-275-2052
Mobile
We know who else is in Connecticut don’t we Mr Mooers.

18) Hackensack,NJ 201-226-0636
Cassandra Behler / Paul A Behler
The gimp takes another call. (He lives at 81 Chestnut Ave,Rochelle Park, NJ 07662, by the way. Googlmap shows it to be a very average suburban shack. Nothing like Mr Mooers palatial residence…)

19) White Pls,NY 914-447-7338
??

20) Sweden 468219019
Firma Torsten Frisk
Recruitment agency, one man band. No Webpage. Is Marc looking for a job? Ha ha.

21) Ireland 353862546828
Mobile
??

22) Switzerland 41798293263
ACH - Stephane Bennici
Mobile Number. So that's two calls to VIC SUNO and TWO calls to this guy.

23) Spain 34696483497
Mobile
??

24) Spain 34951278907
??

25) Queens,NYC 718-247-0801
WAYMON CROSS
THE CABLE MAN,INC

26) New York,NY 917-731-3701
UPTOWN COMMUNICATIONS & ELECTRIC, INC.
JONATHAN S SMOKLER, Chairman or Chief Executive Officer

27) Spain 34952880430
??

28) UK 441285711639
Asbestos G B Ltd.
Keble Cottage London Road Fairford Gloucestershire GL7 4AW

29) Netherland 31715614957
Eelvelt Computers
Mr JC Eelvelt. A One-Man band computer company, although have a look on their website here (http://www.eelveltcomputers.nl/mt.htm). You'll see THREE reports on xG Technology - go figure! I love the predicted sales figures in the Hitchens document - like $50M 2007 and $80M 2008!!

30) Sweden 463-168-6832
Per Eskilson
per.eskilson@ccskadecenter.se ,

31) Sweden 46708876785
FEDERICK WAHLMAN

32) Norway 479-053-1990
??

33) Iceland 354-864-7877
??

34) Sweden 46708876785
FEDERICK WAHLMAN Again!

35) UAE 97144282468
??

36) S. Africa 27126669121
Lorbrand (Pty) Ltd
Sunderland Ridge, Centurion info@lorbrand.com

37) Iceland 354-581-1180
??

38) UK 441625549457
Bellairs Estate Management Ltd
3 York Crescent, Wilmslow, Cheshire SK9 2BB

39) UAE 97143985285
??

40) Ottawahull,ON 613-482-0607
SHEC
Solar Hydrogen Energy Corporation, 2214 Hanselman Ave, Saskatoon , SK., Canada, S7L 6A4

41) Saskatoon,SK 306-956-2225
SHEC
Thomas Beck, President and Chief Executive Officer. You've gotta hand it to Marc for after scam service. Here he is involved in TWO scams at once.

42) UK 447803184905
Mobile
??

43) Norway 476-698-9982
??

44) Norway 479-229-3602
??

45) Sweden 46706569019
??

Any further info anyone's got feel free to let us know...

xG Laundering Money?

Hello. Welcome to my Blog about xG Technology. We know it's a scam (that's obvious!) so I'm more interested in the why and how of it. How are they scamming? Who are they scamming? The below was originally a post on the xG board on iii.co.uk, but they've obviously been warned off and keep deleting posts that are negative about xG. To be fair they also delete posts from a prominent wanker-ramper Mr Marc Dannenberg and those of his gimp Paul.

This was to another PR/ramper merchant called Gurgle who claimed it unlikely that xG were manipulating stock or Laundering money.

Gurgle,

From the stuff I've been reading both here and on wirelessexpressions.com, there seems to be some evidence for it. Here's a company without a working product, with a highly dubious history both in terms of the principals and their past technology, whose name is splashed all over the internet with 'fraud' next to it, who cannot even organize a simple demonstration of the product, who has missed deadline after deadline, who misled the market over $57M of orders, who blew deals with Skytel/National Grid/Gama/Telefonica, whose own engineers are criticizing and suing them, whose former directors have been sued for fraud, whose current directors actively shorted the stock, and who seem to be unable to even make one true factual statement in a press release. They are a laughing stock.

BUT

They are still able to somehow attract investment of (apparently) millions, upon millions of dollars. How come? Who would be so stupid to give this bunch of sharks hard won dollars? Then you dig a little deeper, try to peel of the wrapper, and you get mysterious companies based on Turks and Caicos (the mecca for drug money) who are linked to porn companies. There's a mysterious 'Billionaire' Mr Bohman who has bought 1000 worthless boxes. Why? The technology is worthless. Idiots may argue that Mr Bohman and Mr Perrystone have 'seen inside the box' and have had demonstrated to them that xMax works as described. That's quite obviously ridiculous, BECAUSE if they could demonstrate it to them, then they could demonstrate it to everybody - and Rick Mooers would be the richest man on the planet. Hasn't happened, and it won't.

AND

And then there's the 10k, 20k, 50k worth of shares that seem to go round and round usually being bought/sold at the middle of the spread. Sometime they mixed it up, and bought one day, sold the next. For over a month and a half the price was rooted to $5. Absolutely stuck like glue despite over average volume. Dig deeper and you'll find a $5 sp values the company at $500M precisely the valuation where huge bonuses get paid if the company is sold. Hmmm. With all the negativity out there (and on here) about xG do you honestly believe those were private investors actively trading this pup of a company? I knew you wouldn't. Those shares were being traded to give the impression of liquidity, and a veneer of volume.

HAVE

A look at wirelessexpressions blog, and there's a very telling part where one of the guys has got hold of Marc Dannenberg's phone records. (I assume that must've been Okey's son who's been arrested for that sort of thing). Anyway Dannenberg takes a call from the MONEY LAUNDERING part of the Swiss Police, THEN makes the following calls straight after: Frederick Wahlman, Rick Mooers, ACH. Those names ring bells right? Why should Dannenberg be calling those names in connection with MONEY LAUNDERING?

ALSO

Now consider ACH themselves. Two - count them. Two former employees there have been directors at xG. Now ask yourself why would a technology company based here in the states pick up the phone and call a dealing company in Switzerland and ask if anybody would like to be a director of a VOIP company. No experience required. No expertise needed. Just come along and we'll make you a director. Obviously they don't. The only explanation is that ACH were raising funds for xG, and the deal was those guys came on board. Why didn't xG ask a bank, or venture capitalist, or even a US/UK based dealer to come on board? Why these guys? Why ACH? Hmm....WAIT! I know the answer. It's because ACH are as fly as....

SO

Here is my theory. It's just a theory from what I've read. But I hope you guys realize why I came to this conclusion. In fact I think it's the only thing that does make sense about this crazy company.

Firstly you've gotta totally divorce the guys in the lab from all of this. They'll carry on trying to headbutt their way through the Shannon Bound without success. Most have wised up already. They are just a smokescreen. They are the proverbial corner store that Al Capone hid his yobs behind.

Secondly you've gotta realize there were two threads to their fraud:

i) The primary one was so so simple: Sell the company. Sell it for loads. The plan being to whip up some pump about the company, get the Internet bulletin boards frothing, drop names that so-and-so is bidding. Hopefully the buyer would be in such a hurry that they wouldn't actually bother checking to see if xMax actually worked. When they found it doesn't - well too bad. Have a look at the company's articles of association, on almost every page there's a reference to 'If the company is sold', '$500M valuation', '$1B valuation'. Have a check back at some of the early 2005 or so internet stuff. They're all hinting at offers for the company. Company members are rewarded bonuses to keep the SP over these valuations. It's just so blatant. It could've worked too, after all there's mugs buying oil exploration companies every year that haven't got a hope in hell of finding any oil. I doubt they even bother to look most of the time.

ii) So, xG haven't been sold. Not even to Google. The bull market's ended, and Rick Mooers is still sitting on millions upon millions of 'restricted' shares. What does he do? Give up? Nah! Not his style. He's still raking in his LEGAL salary of $70k a MONTH. (Why are shareholders so stupid as not to complain about this?) But there's no buyers, and the geeks haven't shat a miracle.

C'mon guys don't feel sorry for him. He's already planned for this. His buddies at ACH have already planned for this. They're in Switzerland (as the Swedish government has kicked them out for silly things like breaking the law) and Switzerland has advantages because there's always some Nazi, or drug lord, or tax evader who wants to clean some money. And now they have a perfect vehicle for doing so.

So imagine this guy with pots of filthy money. He can't spend it, the FBI would be all over him, but he's willing to trade 10%, 20%, of it to someone, or some company that can clean it for him. So through ACH he buys shares in xG. What he actually receives is the restricted shares from the holding of Mr Mooers. The cash gets put in a SPV in Iceland. Then ACH goes to work. Has anyone noticed that xG are THE ONLY COMPANY on AIM to use a clearing system called SIS (SegaInterSettle)? In essence it means that a broker like ACH can sit at his computer screen and trade xG shares with a like-minded partner all with the settlement being done instantly electronically. So he could, buy and sell, sell and buy, all with the same pot of money and manipulate the price to, let's say $5. He controls the price totally. He is the bid and he is the ask. (Unless a third party actually sells, but there aren't many of them) He could also slip through a few sales of these freshly laundered shares, a bit at a time, to help the poor criminal out in his retirement - the money coming out of the SPV.

Now here's a clever bit. If the share price falls it benefits xG/ACH! Imagine (for ease of math) that the criminal buys a million shares at $10 a share. So $10M goes into the SPV, with everyone taking their slice out of it. Then the price moves to $8 and ACH buy back the million for $8M, and Rick has got his shares back. They've effectively shorted their own company and made $2M. This can then be used to buy some token shares and make press releases like 'Director increases his position' or some such rubbish. And the criminal has brand new sparkling money. Everyone's a winner. If in the very unlikely event that the price rises then good for Mr Criminal, he just has to find a mug to buy his shares - but it sure as hell isn't going to be ACH doing the buying. I'd imagine the bid would collapse like a stone.

But now ACH are gone, and Rick Mooers has lost his playmate. He'd better find a new one soon as ACH's millions of shares will have to be sold by the liquidator. Who the hell is going to buy those? Is there money in the SPV to put in a bid and then find another broker to play ball? Damn Maddoff is out. So's Stanford. Hmmm......