Mats and Palmi Email

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

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

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

hide details 11:20 AM (0 minutes ago)

Dear Mr Sigmarsson,

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

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

Yours Sincerely,

John Prescott.

Mats Spanks Palmi.

What lovely company xG Technology seems to keep.

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

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

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

Victor Suno: Manipulated/lapped xG shares for ACH

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Déjà Vu all over again

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

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

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

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

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

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

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

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

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

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

Real Life Performance Data

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

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

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

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

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

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

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

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

Dealer Program PPT

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

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

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

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

Cease and Desist

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

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

Treco / Bohman

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

"Bohman is a pathetic figure.

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

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

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

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

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