Sunday, 12 December 2010

A Useful Summary

Craig Malthus has written a piece on xG that they are trailing on their website (right-hand column). I made a comment a few days ago, and Craig asked for more info, which I have now provided. For those who are catching up on the xG story I thought it may make a useful summary:

"Hi Craig,

Thanks for the reply. Sure. I'll back up what I said. The beginning is probably a good place to start:

In the late '90s xG was called iDigi, run by the same directors; Rick Mooers, Roger Branton, and the inventor Joe Bobier. Besides that it had three major similarities to xG:

1) It sold similar high-tech broadband radio-modulation products, which would 'revolutionise' the market, but were 'so secret' nobody could ever know how they worked. This was because in common with the early xG modulation - they DIDN'T work. At least at anywhere near the capabilities they claimed to investors. In fact with iDigi their main investor discovered that they had actually cheated in their demo - pre-recording video on computer hard-drives that was supposedly broadcast by their system. (Link a). Link b)).

Compare this with early xG claims that their modulation was special and worked. This (link c)) analysis shows that their claims of special modulation are entirely bogus. Any number of systems could have easily achieved what they claimed was special. (Also see this entire blog by a Professor of Electrical Engineering - link d)). xG's supposed advantage lay within two inventions: their 'special' filter called the 'wavelet pass filter', and 'flash signal'. The two patents backing these up have been shown to show a laughable lack of basic communications theory. (link e, link f)). When iDigi's main investor (Icelandic pension fund LN) found out, well obviously they sued for FRAUD. Mooers obviously couldn't fight it so settled out of court, for $5m.

xG evidently knew about the problems with their modulation system, as witnessed by these emails (link g, h)), and this BER curve they put up on their web-page and later took down (link i)). Yet they continued to tell their investors who had put in their hard-earned money nothing - in direct contravention of AIM rule 11.

e) (pdf file)

2) In common with iDigi, xG's funding was...ummm...unusual. As you've been told instead of the usual route of showing their incredible system to any number of major institutions who would've undoubtedly cut each others throats to get a piece of it, they chose...wait for it...a boiler-room to market their stock.

With iDigi the boiler-room was, unusually for a company based in the USA, one based in Spain, the Costa del Crime: N.C.R. Capital. (I will leave it to your imagination to decide whether they chose this one to be out of reach of US legislators.) Of the funds raised destined for iDigi 50% ended up in offshore accounts never to be seen again. Did Rick Mooers know it was a boiler-room? Did he know only pennies in the dollar from investors money was going to iDigi? Well, yes he did:

"Rick Mooers came here to Spain," Dannenberg said. "He knew all about it. He knew he was getting pennies on the dollar for iDigi. Yes, he knew it was called iDigi Ltd. He gave a speech to all of us. He mentioned the fact that it was a boiler room. He didn't want it to be a boiler room. He was saying this was not something that was a boiler room deal, but it was. He was just giving us a story to go on."" (link b), page 6, also see link a)).

When iDigi folded it left the FBI and the court administrator chasing up to $30m that had gone missing. None has been recovered to my knowledge.

The link with NCR continues to this day. Palmi Sigmarsson a current xG director worked with NCR to bring in LN, via his company Spectra Kapital. Spectra promoted mainly penny stocks and have now been closed down by the finance inspectorate. The contact list for NCR was allegedly sold on to Spectra...Incidentally this same director made upto $2.25m shorting xG - his own company, as well as allowing stock he controlled to be sold for half the market rate whilst under the lock-up period. That shows confidence in xG, huh?

With xG the story is similar but the boiler-room changes to ACH securities in Geneva. (Again you will note outside US jurisdiction.) ACH were a Swedish brokerage, but have the unusual distinction of being expelled from Sweden for various shady deals (link j)). Two directors of ACH were at one time or another also directors of xG. ACH have now also been closed down by the authorities, but not before they were able to lap the share-price from $4.50 to $18...

After ACH closed, xG were left to mainly rely on unregulated stock promoters like Fredrik Walhman (mentioned in court document - link k)) page 25 onwards) to sell shares. Which he did with some success bringing in $34m investment from a millionaire called Johan Bohamn (who is also not without a 'colourful' history himself..)

Doubts raised at the beginning of the float weren't chased up.(link kk)


3)The third major similarity involves accounts, so I thank Mr Rotondo for bringing it up. In both companies Rick Mooers dramatically overstated to companies balance sheets. With iDigi (from link b) page 7):
"Mooers never fully disclosed where the money was coming from . which left all of us very uneasy," Heimann said.

He also claims that Mooers and another partner, Roger Branton, wanted to "adjust" entries in the 1999 year-end financial figures "that would show investments in the $10s (of millions) and $100 millions range by valuing their contributions at exorbitant amounts, without any reference to reality."

"They wanted to show iDigi Communications was valued at a very high level," Heimann said. ". Mooers committed fraud in several ways: by falsifying records and inflating financial statements and misleading investors with respect to the value of the company they were investing in .

"No. 2, by setting up all sorts of covert schemes with offshore entities that ended up siphoning off 50 cents on the dollar on average, of monies investors paid."

Mooers, for his part, denied those allegations and claimed Heimann "embezzled from the company."

With xG Rick was up to his old tricks - valuing the company exorbitantly. This may have been justified if the miracle modulation was real - but as I've shown they knew it wasn't, or was unworkable. The 'sales' and 'deals' they announced were really nothing of the sort. The former were mainly just adjustments to the accounts receivable (with, presumably, the knowledge of Johan Bohman) - if you do as Mr Rotondo suggested and check the last few years' accounts you'll see they've just been shifted to debt owing after one year. Very little, if anything, was actually sold in the true sense. The 'deals' were mainly just letters of intent to look at the system. There were by my count 11 such 'deals' - no business ever resulted - despite the 'miracle' nature of their technology.

All in all it paints a very bad picture of the attitude that Mr Mooers has to his investors. This is why the latest announcements (links l), m), and n)) of MBTH being involved is such a bad sign for investors. Now Mr Moores has a mechanism to cheat all the investors quite legally. No wonder Ceinwen Lloyd (xG director, and wife of Johan Bohman) is upset. She realises that the $35m they've put in is hanging in the balance.


Finally I should say that it may well be true that xG now have a cognitive radio that works. I'll leave that to people like yourself. But this must be weighed up against the appalling behaviour of Mr Mooers, and his attitude to investors and stock-market regulations. Praise must go to Rick Rotondo for putting an acceptable face to xG, and him having the honesty to say they have had a change of technology (link o)). But all this is too little, too late - it should've come years ago through the appropriate channels - the stock market regulations.

There's so much I left out - enough to write a book - but I think you'll get the picture. I can be contacted at john.prescott.dpm at

Regards John.

o) (in comments)"


  1. Oh my God, get a life, drunk.

  2. That's an excellent review of xG Technology.

  3. John, do you ever get any negative feedback from anybody other than Dannenberg? Have you ever been contacted by anybody from xG with a cease and desist request or threats of litigation?

    What you post is incredibly damning. I realize it's all available from multiple other sources on the web. But you summarize it all so succinctly. I would think xG would like to shut you up. Have they ever tried?

  4. Hi Anon two,

    No. Nobody has tried to shut me up. If they'd found anything litigious I'm sure they would have, but there's nothing litigious. Everything I've ever said has either evidence to back it up, or is my opinion of a situation.

    I have had calls from people representing prominent investors but only to say they wanted to hear more. I also had a 'cease and desist' email from the Telcentris people annoyed that I disclosed their pricing structure. But nothing else.

    I guess there's nothing the xG crowd can complain about. The truth has that effect.

  5. John, Anon Two here.

    That's sort of what I suspected. Thanks.

    And I find it funny that Dannenberg still cruises the web looking for negative comments. He pounces on your blog posts within minutes of them being posted. Desperate sot, he is. I almost feel sorry for the guy.

  6. You feel sorry for me yet you are posting on the only internet site on the planet that does not acclaim my investment to be the end all be all of communications revolutions...I DO feel sorry for your parents.
    I cannot help but feel what most of the world is going through is deserved...people like anon and the drunk should never have been born. Too funny, I cruise the web...well ya retard for your info this shrine to my investment is the only site that is negative on xG so I don´t have to cruise far, do I moron...SUCK MY BALLSACK

  7. The reason nobody sued you, drunk, is because nobody gives a fuck! Duh! You have done a TREMENDOUS favor for anyone involved so why would anyone go back 12 years like a retard, you talk about shit that does not matter even one bit, you make a negative out of a positive with people selling shares...bro, you are retarded and your audience is even worse off than you...too funny you obsessed sucker.
    Retard who is Craig Malthus?

    Anyone cheerleading for you is a bigger dummy than you are...take note monkey and the other two addicted to the smell of my asshole anons.

  8. "You feel sorry for me yet you are posting on the only internet site on the planet that does not acclaim my investment to be the end all be all of communications revolutions"

    Please direct me to the sites that say xG works at all. Boy, you've got it all wrong again. I wonder if you've ever been correct about anything regarding xG?

  9. LOL, you fucking gook mongo, the article this disgusting shrine refers to is super positive written by someone who has more credibility in business than not only you and the drunk, but every single gook in the world as well. Bro, you and your idiotic little anon friends should never have come up against anyone as powerful and brilliant as me and the guys at and learn if you can monkey mongo gookboy.

  10. Disgusting Huang Dongh, the retarded gook cong who has been obsessed with me and xG forever, the sweatshop working caricature of all asians...this blog written by the drunk admits the tech you have EXTRA slanty eyes?

  11. Having said all that, I understand completely why the drunk, the gook slanty mongo and their little retard anon friends are obsessed with xG and me...
    You are right to be obsessed, I am the greatest mind in finance and xG is the greatest comms company in the history of the world. Thank you for playing directly into my have been PLAYED!!!

  12. 'just got a quick set of emails from Dannenberg as a reply to my post here. this is how he works and have been working for years.

    Nope, I mean the slant eyed cong gooks with empty huge heads, giant disgusting teeth, liver diseased yellow skin and no dick.
    Sound familiar?

    Oh and yellow Asian retard, you dance for me and xG all day long...BLAM BLAM DANCE MOTHERFUCKER!!!

    Huang Dongh, sucking my dick.

    Huang your last post on the blog is about as retarded as I expect any living asian to be.
    My god you are a fucking retarded Asian, which is worse than the normal stupid asian.

  13. YES!!!
    I love the smell of burning gook villages in the morning!!!

  14. ....and a final one to sort things out:

    "Well Huang,
    Normal Asians are bad, real bad for are even worse.
    You do know every round eye spits on Asians don´t you? We make fun of everything about you, from the way you look to the way you talk to the whorelike behavior of your women...everything is made fun of when it comes to slantyeyed yellow retards."

  15. "this is how he works and have been working for years"

    Only a disgusting cong slanty yellow can butcher english like this...Huang the yellow cong has been doing this for years!
    Cong Huang, does anyone in your hut village compare to you as far as your stupidity goes?

  16. Cong Huang, final? No my yellow no dick bigheaded bucktooth duck brainless mongo friend...this is just the beginning.

  17. Boy, you seem upset. What is a couple of spelling errors compared to a $50 million scam?

  18. 50 million dollar scam? Sorry Mongo retard, no idea what you are talking about...maybe you can get that third eyelid removed, file some teeth down and start eating something more than white lice and you will make sense. is the Agent Orange in your cellular structure that has permanently disabled you even more than being a cong Asian. Either way, you are my bitch.

  19. Just the beginning? Boy, have you found a new scam we can all follow?

  20. Sorry boy, forgot you have fried brain. $50 million dollar scam = xG Technology

  21. I have fried brain?

    Holy shit...thank GOD you are on the other side of this.

    I wish Truman were alive today.

  22. Why do you think Rambo movies are so civilized people LOVE to watch reenactments of useless worthless gooks being killed by their betters...Everyone loves that! I really hope a few of your relatives ate US issue bullets for breakfast.

  23. Dannenberg is really helping xG out with his comments. I'm so looking forward to an attempt from xG to try to sell the crap in Asia and to get the opportunity to send a "best-of-Dannenberg" compilation to the poor victim.

  24. If xG has to sell in Asia then I will truly believe we have nothing.

  25. Dannenberg's view on a rather powerful market, even for xG's walkie talkies:

    "Bro, as dumb as you think xG is, there is no way on earth even xG would deal with a gook firm...solly charlie."

    Followed up by asking if he meant all of Asia, this is his reply:

    "Bro, are you kidding?
    Its all the same...a cesspool of know that."

  26. Yeah, making 30 cents a day is a huge market for us.

  27. Is that net margin per walkie talkie sold?

  28. no thats the salary of your average gook.

  29. ....and net margin per sold xG walkie talkie?

  30. One on Dannenberg's view on black people:

    "However you did change the mind of Sentec the dumb Kenyan nigger.  Congratulations."

  31. Yep, disgusting mongo, keep dancing!

  32. Mongo, Drunk and the other two idiot anons, you hanger ons have no clue about anything real...all you do is suck up the scraps about xG, me and everyone involved that you are given. Nothing I write on line is real. The internet is a cesspool and if 5 jackasses can hammer xG with lies and innuendo then I definitely can and do. You suckers eat my shit all day long...too funny...yes I am everything I say I am...oops no I´m not...oops yes I have no idea.

  33. Look at Phil Karn, picking like the vulture he is at the xG patents he barely understands and look at the absolute dreg followers he attracted and when I say dregs I am talking the bottom of the barrel of humanity...all from picking scraps of information none of you have the capacity to guys are a fairly long running circus and I for one have benefited greatly from your obsessive psycho infatuation with xG and anyone around the co.
    I have written in cyberspace things that around an entire religion has been formed.
    Guys, understand something...this vomit bag of a site is the only site on the internet saying anything negative about XGT. Every single other site is saying xMax is the greatest invention in the history of mankind and Joe Bobier is top 5 highest IQ people who ever existed.
    Thats the fact jackoffs, and fight it as you will, you have lost from the beginning, as I knew you would.
    Anyone posting garbage about xG cannot be considered any type of reliable source...for one reason or another.
    Do not hate the player, girls, hate the game which you are forced to play and lose.

  34. And of course the stock is up.
    Keep talking retards of Karn.

  35. Another thing to think about...the women who clean xG´s facilities in both Florida locations have more credibility than anyone posting lies and fantasies about xG or its investors.

    Anyone directly involved with xG at this point have more credibility than any other person on the internet as of right now. This blog is a joke and should be treated as such. Those that take anything written here in a serious manner should be far away from heavy machinery.

  36. What is wrong with this Dannenberg? What's so hard to comprehend? He violent outbursts are ridiculous but very amusing.

  37. Violent outbursts? Fantasize much?

  38. Sorry anon, what is there to comprehend?
    You are not telling me you come to this blog to understand anything, are you?

  39. He lost a bundle on this stock and he blames the skeptics. He's always been a bit unstable. But when MB got tired of his antics and told him to pound sand, he sort of snapped.

    Couldn't have happened to a nicer guy...

  40. Hi Phil, can you prove anything you blubber (sic) about me? Nope. You are not even a good geek.

    You love me Phil, I and everyone else you talk about are much smarter than you.
    Joe Bobier is your God.

  41. Oh, Phil just read your comment...I blame the man, I could not possibly be happier than I am right now...let me make it clear for all...I get to buy huge amounts of my all time favorite company. Bro, anyone with a brain thinks the way I do...sorry you don´t.

    I love the skeptics, they are target practice for my insults.

  42. A "bit" unstable? The guy is a lunatic!

  43. oooooo so scary!
    Anon, I am sitting in front of my computer doing a thousand different things as I write meaningless nonsense to you yet I am the lunatic?
    No my man, you are the lunatic.

  44. To explain further, you jackoffs living off my meaningless nonsense is some of the best entertainment I can have...I am the cause.
    Lunatic, Unstable oooo internet anon blog much does that pay?

  45. Hehe, the man is like a pig on acid

  46. I can visualize "that pig" furiously hammering the keyboard typing what he thinks if offensive comments and simultaneously screaming at the computer what idiots everyone in the world is.

    I could pay to see that :-)

  47. what do you mean mongo, my comments have caused people to call me a sociopath and a psycho...of course they are offensive!
    Funniest thing is a slantyeyed mongo trying to visualize anything.

    If not, I will try harder.

  48. You are a psycho and a sociopath but not a single soul is offended by your comments. You wish they were but they're only amazingly funny and entertaining. I know it's not fair to laugh at the sick but this is an exception.

    Plaese try harder, a lot harder

  49. Your mamasan what, gook? Can´t you read gook, or is your 3rd eyelid in the mailed my comments to some imaginary fort in the US because you were offended...Cong, you are a liar, a disgusting effort at humanity, and I for one am upset that more of your family did not get their skulls bashed in by the butt of an American marines gun.

  50. You'll have to try a LOT harder. Don't think you can boy.

  51. Marc Dannenberg is the only remaining loser. He really does everything he can to portrait himself as the idiot he is.

  52. Anonymous I love when others call me an idiot while they have no f´ing clue how to do anything other than to butcher the English Language...did you mean portray you dumb obsessed jackass? Seriously, everyone against xG or me are complete morons.