Well Mooers Branton are at it again. Another of the announcements whose headline says one thing, but the body of the text means something completely different. They already have two 'loans' out to their own company, xG, upon which the terms are; when the left hand (xG) doesn't pay the right hand (MBTH) then xG becomes property of MBTH. You would've thought that enough, but now a new announcement. Why? Well it's complicated.
Digging into the legalese of the Articles of Association (link Google Doc) you find that if a group or individual acquires 50% plus of the voting rights then they must make a cash (or equivalent) offer for all the xG shares. The price to be "not less than the highest price paid by the Offeror for Shares of that class or series during the Offer Period and within twelve (12) months prior to its commencement".
Looking at the figures from the last Alleby report, the voting rights that Moores Branton currently have (which include the voting rights they have over Joe Bobier's shares) come up to 43%. Obviously any new major shareholding they take on will take them over the 50% trigger.
This compulsory offer can only be waived if 75% of the other voting rights (i.e. not Mooers Branton's) agree to it. In practice this means Palmi and Bohman/Lloyd, because of the remaining voting rights (once you strip out Mooers Brandon and Joe) Palmi has 25.7%, and Bohman 24.0%, with every other small shareholder (presumably including those outstanding unsold shares from the ACH collapse) making up 50.3%.
The announcement goes on to say that they haven't received that agreement, so Bohman, and possibly Palmi are digging their heels in, which would trigger the takeover agreement and an offer for their shares. If the agreement came to place then ALL of the $10m would go into buying out Bohman and Palmi. This would mean no money left to try to tide over xG.
Then they try to wriggle even further by saying $5.2m of the $10m would go to paying themselves back (early) on the loans they made a few months ago! If this happens xG are worse off than they were previously. xG had been promised $5m ($1.5, plus "Up to" $3.5m). Now xG would only have $4.8m ($10m - $5.2m)! It's crazy. xG get zero if the takeover is triggered (because all of the $10m goes to paying off Bohman and Palmi), and less if it isn't. How is this good news?
Oh yeah. That $3.5m. Did anyone see conformation that they've actually coughed up? Me neither. That announcement said "have agreed on terms under which, at MB Technology's discretion". Maybe their discretion advised against it, and "Up to" is Mooers speak for nothing? Yet they propose to be paid back $5.2m. Do the math.
Then the bribery comes. Notice the "Conversion Rights" term. In it it says that if Bohman/Palmi agree to waiving the takeover within 15 days, MB will pay $0.25, if they don't it's only $0.10 a share.
All this is complicated, and made into a cat and mouse game, by what I suspect must be an imminent legal challenge from Bohman/Lloyd, put in place by Lloyd's resignation from the board. After all they bought around $28m of shares, and the takeover would only get them back between $2 to $5m depending on the offer price. Frankly it's an insult, but it is hard cash.
The takeover would result in xG folding for sure as the money would all go to paying off the shareholders. But perhaps Bohman/Lloyd may decide suing a collapsed company may be more problematic than suing a trading one. On the other hand they have been mis-sold in the most blatant and shameful manner. A simple demonstration to the court about the impossible nature of the xMax modulation should persuade the most cold-hearted jury, and should result in a payout at least an order of magnitude greater than the pitiful return the takeover would bring. If xG are still there to sue. Interesting times.
Showing posts with label Richard Mooers. Show all posts
Showing posts with label Richard Mooers. Show all posts
Tuesday, 8 February 2011
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.
a)http://tinyurl.com/2w2fsko
b)http://tinyurl.com/2vx96wb
c)http://www.ka9q.net/xmax.html
d)http://tinyurl.com/3x2wtpw
e)http://tinyurl.com/29ntyvs (pdf file)
f)http://www.ka9q.net/tristate.html
g)http://tinyurl.com/39p5jm8
h)http://tinyurl.com/356884p
i)http://tinyurl.com/2bpz73p
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)
j)http://www.highbeam.com/doc/1G1-122629851.html
k)http://tinyurl.com/2wrsper
kk)http://tinyurl.com/35zbxqs
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.
l)http://tinyurl.com/36s7hn7
m)http://tinyurl.com/33cm4js
n)http://tinyurl.com/38fa4jx
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 gmail.com
Regards John.
o)http://tinyurl.com/39lzx62 (in comments)"
"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.
a)http://tinyurl.com/2w2fsko
b)http://tinyurl.com/2vx96wb
c)http://www.ka9q.net/xmax.html
d)http://tinyurl.com/3x2wtpw
e)http://tinyurl.com/29ntyvs (pdf file)
f)http://www.ka9q.net/tristate.html
g)http://tinyurl.com/39p5jm8
h)http://tinyurl.com/356884p
i)http://tinyurl.com/2bpz73p
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)
j)http://www.highbeam.com/doc/1G1-122629851.html
k)http://tinyurl.com/2wrsper
kk)http://tinyurl.com/35zbxqs
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.
l)http://tinyurl.com/36s7hn7
m)http://tinyurl.com/33cm4js
n)http://tinyurl.com/38fa4jx
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 gmail.com
Regards John.
o)http://tinyurl.com/39lzx62 (in comments)"
Thursday, 2 December 2010
MBTH do an Alien!
Today's announcements absolutely confirm that xG Technology investors are shafted. Johan Bohman must be feeling such a mug. Hopefully he's reaching for the 'Lawyer' speed-dial button (on his non-xG phone) as I type. While he's pumped in millions into xG, Rick has put in a fraction of that. Now he's planted the seed of MBTH in the belly of xG, ready to burst out at any moment he chooses.
George Schmidt has so little confidence in xG's future that he chooses to join MBTH instead. He's admitted where the future lies. xG is as good a dead, and so is all the lovely money people have invested in it.
MBTH is contemplating investment in xG of a total of up to $10 million pursuant to the additional shareholder loan facility announced by the Company on October 8, 2010.Under which terms MBTH will own all of xG if Rick does not pay Rick. So, they'll put in just enough to keep the ship afloat until the Army trial result comes through. Then, whatever the result, Rick can close xG down.
If MBTH is required to make a mandatory take-over offer to the holders of all of the xG Shares not held by MBTH then the offer price will be less than the latest closing mid-price of $0.16 per xG share since MBTH will have to offer to purchase more shares than under its contemplated investment in xG.Less could be $0.01, or $0.001, or $0.0000001.
Just a matter of time. It's over.
Friday, 22 October 2010
Ouch! That's gotta hurt!
RNS Number : 8245U
xG Technology Inc.
22 October 2010
Additional shareholder loan facility clarification
Further to its announcement on October 8, 2010...The Company would like to clarify that..., Ceinwen Lloyd did not participate in discussions concerning the transaction in its final form and did not participate in the Directors' approval. The Company has since been informed that she would not have approved the transaction.
Poor old Johan. One minute he's playing mind games with Rick, vying for Alpha status. The next minute Rick's sidestepped him all together and dealt the deal that essentially separates Johan from all that lovely money he's put into
As we know, Rick and Johan's relationship was always 'challenging' - due to them both being arseholes. Richard Kromka explains in the court documents...
“Dealing with Treco’s and xG’s management presented an even more challenging scenario. Neither would communicate with the other, so Kromka many times had to serve as the go-between, which placed him in untenable situations.... Bohman and Lloyd avoided speaking directly to Mooers and told Kromka that the reason for this was to increase Mooers’ “insecurity” in their relationship and that they will only talk to Mooers when 'he ran out of cash' and they constantly discussed with Kromka the idea of suing Mooers and taking over xG”. Then when critical descisions had to be made they would “be out of communication with Kromka” entirely, leaving him hanging.I presume this is what happened here: There was a meeting but as per normal for xG the new clarification is fairly ambiguous in it's language. It says that the new loan was only approved by the 'majority' of board members. Hmm.
This could mean that only two of the remaining three directors approved it. I.e. it was a 1/2 split, which is now a 2/2 split. That could be interesting legally. On the other hand of course it could mean a 1/3 split, we may never know.
What is certain however is that Johan, as we assumed, wasn't happy. (If you are reading this - you can't say I didn't warn you....) And that this announcement is an on-record strengthening of their legal position, in preparation for the shit hitting the fan, when Rick activates his 'failure to pay himself' plan.
Friday, 8 October 2010
Beautifully done Mr Mooers
I can't help but to admire Rick Mooers latest efforts. I was wondering just how they were going to carry on - we've had the iDigi scam, the xG scam is almost past tense, what's next? Switching the assets to another company is their modus operandi, and bingo, here we have it! Among the terms of the latest desperate 'Loan' (no laughing at the back..) was the following:
In other words, they lend themselves money - which awards themselves all assets - if they don't pay themselves. Genius. They are now in a win-win: only two things can happen:
a) Pork gets airborne and the Army do their old buddy a favour. (Despite the fact that EVERY serious radio company has developed, or is developing, a cognitive radio. In fact Joe Bobier's favourite radio engineer Claude Shannon partly came up with the idea...)
b) The company folds and Rick walks away with everything. (Which as we know is actually nothing...) But he can pretend, as he's always pretended, that the patents are worth 'Billions' and a new scam can start. I almost feel sorry for Joe: As the companies assets are Joe's dubious patents, Joe won't own them any more. Johan Bohman - stuffed. Investors - stuffed.
As to the loan itself, something does not add up: MB have paid themselves $70k (now $80k) or so a month for 8 years = $6.7M. Now they intend to lend themselves $5M. That's a huge chunk of what they've legally scammed from investors. Does not compute. The possibilities I see are:
1) They won't be lending anything near $5M - just a few dollars in dribs and drabs as bills become overdue, until it's obvious which of the above two options will come about.
2) They will be lending the $5M - which implies they've been able to scam much more than the $6.7M that's been legally declared.
P.S. It seems like payroll costs are biting. Has anyone noticed that Jonas Krepp, Director of Investor Relations has been given the heave-ho and replaced with James Woodyatt?
P.P.S. You have to wonder about a Scam Company whose new P.R. girl is called Bennie Sham
Collateral:The additional loan shall be secured against all assets of the Company
In other words, they lend themselves money - which awards themselves all assets - if they don't pay themselves. Genius. They are now in a win-win: only two things can happen:
a) Pork gets airborne and the Army do their old buddy a favour. (Despite the fact that EVERY serious radio company has developed, or is developing, a cognitive radio. In fact Joe Bobier's favourite radio engineer Claude Shannon partly came up with the idea...)
b) The company folds and Rick walks away with everything. (Which as we know is actually nothing...) But he can pretend, as he's always pretended, that the patents are worth 'Billions' and a new scam can start. I almost feel sorry for Joe: As the companies assets are Joe's dubious patents, Joe won't own them any more. Johan Bohman - stuffed. Investors - stuffed.
As to the loan itself, something does not add up: MB have paid themselves $70k (now $80k) or so a month for 8 years = $6.7M. Now they intend to lend themselves $5M. That's a huge chunk of what they've legally scammed from investors. Does not compute. The possibilities I see are:
1) They won't be lending anything near $5M - just a few dollars in dribs and drabs as bills become overdue, until it's obvious which of the above two options will come about.
2) They will be lending the $5M - which implies they've been able to scam much more than the $6.7M that's been legally declared.
P.S. It seems like payroll costs are biting. Has anyone noticed that Jonas Krepp, Director of Investor Relations has been given the heave-ho and replaced with James Woodyatt?
P.P.S. You have to wonder about a Scam Company whose new P.R. girl is called Bennie Sham
Wednesday, 1 September 2010
xG Document Archive
Hello Chaps,
You'll notice to the right a new widget called "xG Document Archive". This is intended as a repository of interesting original xG documents which will be added as and when time permits. First up are some of the various court documents I had on the hard drive. You'll need a (free) Gmail account to view them.
Lots of fascinating reading - (especially for the new shareholders out there). Unauthorised Icelandic shares...a Dominion Group court-case (Ricks previous company)...Chimay's being sued by the world...xG's original share cert to Falt (and the underhand cancellation of the company to make it invalid)...
But most, most, fascinating of all is to read the original court docs of the iDigi affair. xG really is just a continuation of the last scam. Incompetence. Overstated performance. Proprietary equipment that wasn't. Same old, same new, shit that they try to pull on investors.
If anyone's got some documents they want put on the archive drop me a line.
You'll notice to the right a new widget called "xG Document Archive". This is intended as a repository of interesting original xG documents which will be added as and when time permits. First up are some of the various court documents I had on the hard drive. You'll need a (free) Gmail account to view them.
Lots of fascinating reading - (especially for the new shareholders out there). Unauthorised Icelandic shares...a Dominion Group court-case (Ricks previous company)...Chimay's being sued by the world...xG's original share cert to Falt (and the underhand cancellation of the company to make it invalid)...
But most, most, fascinating of all is to read the original court docs of the iDigi affair. xG really is just a continuation of the last scam. Incompetence. Overstated performance. Proprietary equipment that wasn't. Same old, same new, shit that they try to pull on investors.
If anyone's got some documents they want put on the archive drop me a line.
Monday, 21 June 2010
Tidying up Townes
Just a quick one on why the Townes deal fell through. In essence Rick happened. He made unrealistic demands, and when Mr Townes did his homework and called Rick a Crook the deal was off. Makes one wonder: Three people have independently said that Rick has an account with shareholder monies in it. Kromka says that he was open to “obscene liability” (possibly falsifying accounts? Consistent with his behaviour at iDigi...), and Mr Townes discovers he's a crook. Rick is a moron, mad, unstable, and a thief.
Court Case One: Kromka and the “Two Crazies”
The Bohman v Kromka /Rodrigue case is a gift that keeps on giving.
Email excerpt:
Most interesting for me in the court documents (aside from 100% conformation of the information from my sources) is the mental state of both Rick Mooers and Bohman. They both seem utterly mad. At one stage Rick confesses to Kromka that he had “always been sad and wanted to kill himself every day,” and pours out his personal problems to him time after time. He says the directors want rid of him but do not have the “balls to fire him.” Wanting to merge with Treco, then not.
Bohman is equally irrational. Hiring Kromka, firing him, hiring him again. Paying him at irregular intervals. Agreeing to him having 8% of Treco, then changing his mind. Worse for xG, Bohman assures Kromka that the scheme is fully funded, then leaves it to Kromka to discover the truth...
Kromkas relationship with xG began at the infamous meeting in Twin Palms Hotel in Phuket Thailand on November 28, 2008. Present were Kromka, his partner Vincent Ronquillo, Bohman, Lloyd and of course our Fredrick “Paradigmshift” Wahlman and his girlfriend Karolina Purar. (So confirmation It WAS Frederick Wahlman who was working behind the scenes who brought in both Bohman and Kromka to xG.) Wahlman was to be Kromkas immediate superior at Treco. However as we all know, subsequently he was thrown out, leaving Kromka dealing with Bohman direct.
The things he was promised at the meeting persuaded him to turn down a highly lucrative broking offer in Chicago and join Treco. Within a short time he was also invited to the board of xG. Thereafter he learned the shocking truth that
Kromka and Rodrigue did pretty well in the circumstances. Using their contacts to obtain two very hot leads for funding. One for a network in Panama, the other for the US (Beechtree). However Kromka obviously has done his research and acknowledges that there were
If it wasn't difficult enough trying to assure potential investors it soon became clear that Rick and Johan were as crazy as each other.
Meanwhile
Reading the updates of the case it seems as if Treco/xG will fail. :-D. Their main argument is that Kromka is in possession of some secret information – but are unable to specify exactly what the information is, or even what format the information is in. I suspect that the info they were trying to protect is that both Mooers and Bohman are mad as hatters, and that neither has the cash they claim they do. The good news is that Kromka has now counter sued for the money he gave up from the other broking offer, and for the shares he was promised in Treco and xG (don't bother Richard they're worthless). My feeling is that if he can prove the offer existed he will win, and it will cost Bohman $3+M.
Email excerpt:
“From: Richard Kromka
To: Francois Rodrigue:
Sent: Friday, September 18th 2009. 4:42 am
I think the hornets nest has gotten too messy. I think Rick is dangerously out of control and could open up the company and the board to obscene liability – if he hasn't already. As for Treco – I feel the same way although our attendant risk there is not so much explicit as profound distrust. I'm literally loosing sleep about having to deal with either one of them or alternatively having to go forward in good faith and represent them to a third party......
I can't stand thinking, plotting or frankly worrying about how we are about to get hurt (or not paid) any longer....I don't want any more of the same shit – always worrying that we are going to be sued by either one or both of the crazy people (Treco and xG).”
Most interesting for me in the court documents (aside from 100% conformation of the information from my sources) is the mental state of both Rick Mooers and Bohman. They both seem utterly mad. At one stage Rick confesses to Kromka that he had “always been sad and wanted to kill himself every day,” and pours out his personal problems to him time after time. He says the directors want rid of him but do not have the “balls to fire him.” Wanting to merge with Treco, then not.
Bohman is equally irrational. Hiring Kromka, firing him, hiring him again. Paying him at irregular intervals. Agreeing to him having 8% of Treco, then changing his mind. Worse for xG, Bohman assures Kromka that the scheme is fully funded, then leaves it to Kromka to discover the truth...
Kromkas relationship with xG began at the infamous meeting in Twin Palms Hotel in Phuket Thailand on November 28, 2008. Present were Kromka, his partner Vincent Ronquillo, Bohman, Lloyd and of course our Fredrick “Paradigmshift” Wahlman and his girlfriend Karolina Purar. (So confirmation It WAS Frederick Wahlman who was working behind the scenes who brought in both Bohman and Kromka to xG.) Wahlman was to be Kromkas immediate superior at Treco. However as we all know, subsequently he was thrown out, leaving Kromka dealing with Bohman direct.
The things he was promised at the meeting persuaded him to turn down a highly lucrative broking offer in Chicago and join Treco. Within a short time he was also invited to the board of xG. Thereafter he learned the shocking truth that
“xG and Treco were soon facing cash shortages and urgently needed further infusions of outside capital. Despite his earlier insistence that he would not have to raise capital and the assurances from Lloyd and Bohman that Treco would assure xG’s liquidity, Kromka was suddenly drafted for the task of seeking outside investors for xG and Treco. He, along with co-defendant, Francois Rodrigue, then set about trying to generate interest from venture capital firms and other respected funding sources.
Kromka and Rodrigue did pretty well in the circumstances. Using their contacts to obtain two very hot leads for funding. One for a network in Panama, the other for the US (Beechtree). However Kromka obviously has done his research and acknowledges that there were
“two main difficulties in utilizing venture capital firms and other funding sources were Treco’s and xG’s reputations (as well as the reputations of their owners), and uncertainty that Treco would make the necessary payments pursuant to the Infrastructure Agreement on time, or indeed at all. Furthermore, xG’s product roll-out was constantly being postponed and the word in that sector of the business world was that xG had nothing to offer.”Obviously Beechtree would want conformation that everything was Kosher with regards to the technology, but the Due Dilligence they planned was the last straw for Rick – the reason? They'd find out the tech was nothing special.......
If it wasn't difficult enough trying to assure potential investors it soon became clear that Rick and Johan were as crazy as each other.
“Dealing with Treco’s and xG’s management presented an even more challenging scenario. Neither would communicate with the other, so Kromka many times had to serve as the go-between, which placed him in untenable situations.... Bohman and Lloyd avoided speaking directly to Mooers and told Kromka that the reason for this was to increase Mooers’ “insecurity” in their relationship and that they will only talk to Mooers when 'he ran out of cash' and they constantly discussed with Kromka the idea of suing Mooers and taking over xG”. Then when critical descisions had to be made they would “be out of communication with Kromka” entirely, leaving him hanging.
Meanwhile
“Mooers did not communicate with Lloyd and Bohman because, among other things, xG continually underperformed” and even though more and more “desperate to obtain financing for xG” would not follow any advice Kromka and others gave him. “In addition to all of these distractions and irrational behavior, xG was nowhere closer to producing a market-ready product, which made raising capital even more difficult.” xG were “inable to put together a coherent plan to monetize the xMax system.”
Reading the updates of the case it seems as if Treco/xG will fail. :-D. Their main argument is that Kromka is in possession of some secret information – but are unable to specify exactly what the information is, or even what format the information is in. I suspect that the info they were trying to protect is that both Mooers and Bohman are mad as hatters, and that neither has the cash they claim they do. The good news is that Kromka has now counter sued for the money he gave up from the other broking offer, and for the shares he was promised in Treco and xG (don't bother Richard they're worthless). My feeling is that if he can prove the offer existed he will win, and it will cost Bohman $3+M.
Monday, 15 March 2010
Getting Interesting.
My apologies for lack of action on the blog, I’ve been involved in quite a few other projects.
Finally, some interesting news, and like waiting for busses you wait for one, then several come along at once. Victor out! Manipulating stock! Wow!
Here’s the inside line to recent developments:
1. Victor Suno, and James Woodyatt (until last week both xG Directors) according to a source close to the Swiss Police, have both got warrants out for their arrests. They have been wanted for questioning by them for quite some time in connection with xG securities fraud following from the case of Bank Hapoalim.
2. Woodyatt, who used to work for one of Maddoff’s feeder funds, left for Miami without informing the Swiss authorities of his whereabouts. Maybe the Rick could help them by dropping them a line on ++41 (0)31 323 11 23? You know it makes sense Rick. They are looking for Victor in Spain...
3. The FSA have been investigating xG for at least 6 months. I know of several Swiss lawyers who have been contacted by the FSA with regards to securities trading via ACH, and for other matters. It seems like this investigation has prompted the recent expulsion of Victor who, as we know, was also an employee of ACH.
4. Some of the former investors of iDigi (xG’s previous incarnation) are in the process of suing the xG directors in a class action suit. An estimated 30 million USD was lost in iDigi…Seems like some people want their money back.
5. Rick and Roger have both have been taken by the FBI to a Grand Jury questioning in Washington DC into investigations regarding the iDigi fraud.
6. Just to confirm the sort of people we are dealing with, Kevin Flessner, the former CEO if iDigi has recently been prosecuted for ‘Flipping’ fraud. A story about is says “he was sued in October 2001 along with his former partners, Richard Mooers and Roger Branton, for allegedly participating in a scheme to "siphon off" and "pirate away" iDigi's assets for their own benefit.”
7. The Bohman v Kromka is old news but further enquiries suggest that the deal for extra investment that Kromka secured was dependent into a specialist team at General Dynamics doing a thorough investigation of the technology. Rick couldn’t let that happen, for fear that as we all know, xG have nothing special, so he shopped Kromka to Bohman.
The interesting thing is – why admit it now? They’ve known for years that there have been ‘issues’ surrounding ACH’s share trading. (Not to mention sales of restricted stock.) They knew that ACH was dodgy, must have (I said it here several times), and yet they still invite an ACH employee to become a board member. Evidently it stinks. The difference is, now to then, that the FSA’s investigation is closing around the necks of Rick and Roger. So they give Victor as a scapegoat, and claim they knew nothing about any share manipulation. Well, back in iDigi days they knew their financing partners were a boiler room, and in the xG days they also knew that ACH were a near-boiler room. The funny thing is, they didn’t complain when the shares got lapped all the way up to $15. You can’t have it both ways boys.
Update: Ian Hammar is following the story over here. With some extra juicy detail. I tried to post this on iii.co.uk, but got immediately banned. How childish. Someone doesn't want this info out there....
Finally, some interesting news, and like waiting for busses you wait for one, then several come along at once. Victor out! Manipulating stock! Wow!
Here’s the inside line to recent developments:
1. Victor Suno, and James Woodyatt (until last week both xG Directors) according to a source close to the Swiss Police, have both got warrants out for their arrests. They have been wanted for questioning by them for quite some time in connection with xG securities fraud following from the case of Bank Hapoalim.
2. Woodyatt, who used to work for one of Maddoff’s feeder funds, left for Miami without informing the Swiss authorities of his whereabouts. Maybe the Rick could help them by dropping them a line on ++41 (0)31 323 11 23? You know it makes sense Rick. They are looking for Victor in Spain...
3. The FSA have been investigating xG for at least 6 months. I know of several Swiss lawyers who have been contacted by the FSA with regards to securities trading via ACH, and for other matters. It seems like this investigation has prompted the recent expulsion of Victor who, as we know, was also an employee of ACH.
4. Some of the former investors of iDigi (xG’s previous incarnation) are in the process of suing the xG directors in a class action suit. An estimated 30 million USD was lost in iDigi…Seems like some people want their money back.
5. Rick and Roger have both have been taken by the FBI to a Grand Jury questioning in Washington DC into investigations regarding the iDigi fraud.
6. Just to confirm the sort of people we are dealing with, Kevin Flessner, the former CEO if iDigi has recently been prosecuted for ‘Flipping’ fraud. A story about is says “he was sued in October 2001 along with his former partners, Richard Mooers and Roger Branton, for allegedly participating in a scheme to "siphon off" and "pirate away" iDigi's assets for their own benefit.”
7. The Bohman v Kromka is old news but further enquiries suggest that the deal for extra investment that Kromka secured was dependent into a specialist team at General Dynamics doing a thorough investigation of the technology. Rick couldn’t let that happen, for fear that as we all know, xG have nothing special, so he shopped Kromka to Bohman.
The interesting thing is – why admit it now? They’ve known for years that there have been ‘issues’ surrounding ACH’s share trading. (Not to mention sales of restricted stock.) They knew that ACH was dodgy, must have (I said it here several times), and yet they still invite an ACH employee to become a board member. Evidently it stinks. The difference is, now to then, that the FSA’s investigation is closing around the necks of Rick and Roger. So they give Victor as a scapegoat, and claim they knew nothing about any share manipulation. Well, back in iDigi days they knew their financing partners were a boiler room, and in the xG days they also knew that ACH were a near-boiler room. The funny thing is, they didn’t complain when the shares got lapped all the way up to $15. You can’t have it both ways boys.
Update: Ian Hammar is following the story over here. With some extra juicy detail. I tried to post this on iii.co.uk, but got immediately banned. How childish. Someone doesn't want this info out there....
Thursday, 3 September 2009
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?
[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.
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.
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.
Sunday, 5 April 2009
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.
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.
Tuesday, 31 March 2009
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.
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.
Friday, 27 March 2009
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....
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....
Wednesday, 25 March 2009
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.
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.
Thursday, 12 March 2009
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.
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.
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