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)"

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....

Mats Spanks Palmi.

What lovely company xG Technology seems to keep.

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

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

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

Victor Suno: Manipulated/lapped xG shares for ACH

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Final Results - '08

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Bank Hapoalim Story

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

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

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

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

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

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

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.