Wednesday, April 26, 2006

GTXC update

David is still at the helm of the SS Gatelinx in Southern Pines. I wonder if his office is still festooned with his collection of swords and armaments? When the vultures started to circle David in Late 04 and early 05, he moved all of his museum quality collection out. He said to move it to the new house in the Bahamas, or was it to his sons condo. If he did, in fact, move the collection all to the Bahamas that might be a problem....
Ya see... in the divorce settlement between David and Annette Hagen, SHE got the house in Southern Pines, the house in the Bahamas, and the house in San Diego (La Jolla) that Andrea has been living in during school.
What's more, is that David promised Annette all kinds of stock and has delivered nothing to her. Now, I believe that Annette is up to her eyeballs in this scam, but if what she say's is true... That she got nothing... I'm guessing that this is not a person (annette) that David is gonna want pissed off at him.
She knows where all the bodies are buried (heck, she helped to put them there) and now that the "marital exclusion" for not being required to testify against her husband is gone, I wonder when the SEC/FBI are going to subpoena her?
Now, new rumors abound as to some new equity investment coming into Southern Pines. Besides the obvious questions as to "where from" and "why?".... Questions remain as to whether or not the code base is recovered which would warrant any investment (interesting if this is "legitimate" investors and if they are, have they read this blog?)... and whether David is going to pay off all the debts, liens, judgments and obligations to his debtors, investors and (mostly) former employees.

Thursday, April 20, 2006

Unsealed Indictment For the GTXC Co-conspirators

A couple of key players, that are more than connected to the Hagen SS Gatelinx, are Howell Woltz and Ricky Graves. Graves is Hagen's former tax attorney with the firm Webb and Graves. Woltz (same guy mentioned in the post and post's here in this blog) was involved in some false and shady valuations from Sterling Group to and for Gatelinx as they tried to raise investment moneys in 04. Read the post from the North Carolina US District Courts.
As you read this filing, ask yourself... who is "Mr. H" the "unindicted co-conspirator"? No way of telling, yet. And it may not be David Hagen.
But, any doubts about how and what these guys are?

Wednesday, April 19, 2006

GTXC, The end is nearer than we thought

See the GTXC reference below from Dow Jones, notice the same cast of characters (Wolz, Kos, Oemke) that are the "experts" David Hagen has embraced.
Also, here's another update on Annette Hagen. She's in the bahamas with Chuck Manning, former lead developer and the architect of the beta level code... and Leland Parker (heir to the parker pen fortune). "Her Highness" (as she is referred to down there) must be having quite the time. Enough of idol gossip and speculation, now to the Dow Jones story...
=DJ IN THE MONEY: Criminal Probe Into Absolute Health Expands By Carol S. Remond A Dow Jones Newswires Column NEW YORK (Dow Jones)--
A criminal investigation into penny stock companyAbsolute Health and Fitness Inc. (AHFI), and people alleged to havemanipulated its stock, has expanded. The U.S. Attorney's Office for the U.S. District Court for the WesternDistrict in North Carolina began looking into possible criminal violations surrounding Absolute Health stock late last year after the gym company attracted scrutiny and its stock collapsed. Last month, the criminal prosecutor in charge of the investigation sentout a new round of subpoenas in connection with a grand jury investigation.
One subpoena reviewed by Dow Jones Newswires shows that the federal government is now looking for information about more than 100 people and entities, including another small cap company with ties in North Carolina, GTX Global Corp. (GTXC).
According to people familiar with the matter, persons who had already testified have been recalled for further testimony and asked to provide a much greater number of documents to the grand jury. Although it appears to be still ongoing, the criminal investigation into Absolute Health and related entities has already led to indictments in a separate but related case.
Among those subpoenaed to testify in front of a grand jury last December were several lawyers representing people and entities involvedwith Absolute Health and the attempt to take the company public through a reverse merger with a corporate shell in 2004. Two of these lawyers, Samuel Currin and Robert Wellon, have now been charged in an indictment unsealed Tuesday in the same district court.Wellon pleaded guilty to conspiracy to obstruct justice. Currin is charged with tax fraud conspiracy, obstruction of justice, witness tampering and perjury.
According to that indictment, Currin and Wellons, among other things, conspired to withhold documents from the grand jury looking into market manipulation related to Absolute Health. Alleged Role Of Rohm Those documents included a 27 million stock certificate purported to have been issued to Randall Rohm, the owner and operator of the gyms that were supposed to have been merged into the shell company that ultimately became Absolute Health.
Rohm has denied receiving the stock certificate and has claimed that asigned merger agreement bearing his signature is a fake. Also charged Tuesday with tax fraud and obstruction of justice were Howell Woltz and Vernice Woltz, both officers of offshore firms dubbedt he Sterling entities. According to court documents, Currin was also a Sterling officer.
The criminal investigation into Absolute Health appears to followclosely in the footsteps of a civil suit filed by the Securities andExchange Commission a year ago. In that case, the SEC charged two promoters, Donald Oehmke and Bryan Kos, and related companies of having pumped the stocks of AbsoluteHealth.
The SEC said the promoters planned to merge gyms owned and operated by Rohm into a shell to form Absolute Health and profit by pumping the stock. The merger never occurred, but several promotional reports nonetheless boosted the stock more than $5 a share before the SEC halted trading in December 2004. Kos and Oehmke have denied the SEC claims and the case is ongoing inthe U.S. District Court for the Southern District of Florida.
AbsoluteHealth stock is now trading around 1 cent a share. Rohm claimed in a document filed with the Florida court last year thathe was duped by business partner Jeremy Jaynes and stock promoter Kos who tried to entice him to sign a deal to merge his company Double R Enterprise Inc. into a corporate shell called Ornate Holdings Inc.
Currin and Wellons have in the past acted as lawyers for Jaynes who wasindicted in an unrelated case in Virginia in 2003 for violating thestate's new anti-spam law. Jaynes was sentenced to nine years in jail last year and is out on bail pending his appeal of the law's constitutionality.
(Carol S. Remond is an award-winning columnist and one of four whowrite the "In The Money" feature. Most recently, she won a 2005 GeraldLoeb Award for best news service content with "Exposing Small-Capfraud," a series of articles that described how three small companiesunscrupulously pumped up their stocks.)
-By Carol S. Remond; Dow Jones Newswires; 201 938 2074; Dow Jones Newswires April 19, 2006 12:38 ET (16:38 GMT) Copyright (c) 2006 Dow Jones & Company, Inc.

GTXC Gatelinx GTX Global, How much longer for the Hagen's?

Gatelinx Legal Woes Continue
BY JOHN CHAPPELL: Staff Writer ( <-- local NC newspaper
The parking lot outside Gatelinx looks deserted now. Once a small tide of local people came to work at the former Winn-Dixie store on Poplar Street near U.S. 1. There were so many employees that Annette Hagen — wife of founder David Hagen — designed a New York style delicatessen to service lunch breaks. It was to attract the public as well — part of a prandial package to include Grey Ghost and a gourmet restaurant in a lavishly restored Jefferson Inn.
The deli never opened. Work on the Jefferson ground to a halt. Grey Ghost returned to its original owners and its original name. Now only a few cars dot the Gatelinx lot. The Hagens recently divorced, according to their son, Derek Allen Hagen. But the Hagens and their former companies faced and still face a series of lawsuits.
Rick Stefanik sued over issues related to ownership involving shares of stock — in this case based on software he said he had written relating to artificial intelligence and high speed voice and video communication over the Internet. That suit was settled in a confidential agreement in December.
Both Hagens served time in federal prison for bankruptcy fraud convictions under the name DeFusco. Last year, David Hagen resigned as CEO and director of Gatelinx Global “for the good of the company,” and Gatelinx Global changed its name to GTX Global, according to a statement by the company.
Last month, in a case brought in San Diego, Calif., opponents won a $1.5 million judgment against David Hagen, and others involved with him.
In January, Superior Court Judge Michael B. Orfield directed he pay Euro RSCG Direct Response (“Euro”) in the amount of $1,673,425.69 plus interest, accruing at $340.99 per day. On March 30, that judgment was filed with the office of the Moore County Clerk of Court.
In Texas, a judge in Collin County ordered Gatelinx pay $150,000 in principal damages to Parago Inc. That court also ordered the company to pay attorney’s fees in the amount of $4,933.26 in addition to the principal judgment.
In neither case did Gatelinx or the Hagens appear to defend against the claims. Both judgments were rendered by default. When one party to a suit fails to show up in court, the other side automatically wins, in most cases.
“The plaintiff ‘Parago’ came on to be heard,” Texas court records show. “Parago appeared by its attorney of record and announced ready for trial. The defendant, Gatelinx Corp. (‘Gatelinx’), although having been duly and legally cited to appear and answer, failed to appear and answer and wholly made default.”
After the time required by law passed with no answer, the judge read all the filed papers and decided that the allegations against Gatelinx had — by default — been admitted. It was as if the company had pleaded guilty as charged to claims against them in the lawsuit by not responding or showing up for court.
An issue in the Stefanik action had been the failure of Annette and David Hagen to come to court-ordered mediation. There had been a motion for sanctions that could have meant jail, but Stefanik withdrew that motion when the case was settled.
The court then found Gatelinx liable for damages, attorney fees and court costs. Much the same thing had happened in California, where Euro’s lawyers filed “ex parte” — that is, without Hagen or his lawyers present — for entry of judgment, again “upon default.”
On Monday, in Moore County Superior Court, attorneys for David Brady will bring the latest motion in their suit against the Hagens and two companies with which they have been associated, Hauge, LLC and Grey Ghost, LLC. A previous claim of more than a half-million dollars was settled a year ago, with Hauge and Grey Ghost agreeing to pay $552,000 plus 6 percent interest in 24 installments.
Anyone STILL wondering whether or not these guys are crooks?

Tuesday, April 18, 2006


Annette isn't driving around Southern Pines in the Carerra GT. David had that shipped to London, with an eye towards shipping it to the Bahamas (remember, they have established residency there).. but the import duties (equal to the price of the car+) and the recent lawsuit by their (the Hagen's) former "partner" (Howell Wolz.. and read more about him in the link in this blog) put a kybosh on that scheme. <-- read more about the GTX Global "Team"

The balance sheets, see previous post for the link, also include this dubious statement.... "management believes that a majority of the receivables are doubtful"
SO, the whole thing about $10 MILLION PLUS dollars being receivables, and the only tangible/fungible asset on the balance sheet is bunk.

Last, here's the language on the Howell Wolz lawsuit. "On February 21, 2006 the Company was served with a Summons and Complaint styledSteward Trust Limited and Sterling Trust Limited v. GTX Global Corporation a.k.a. Gatelinx Global Corporation 6CVS00211. The suit seeks resolution of a dispute related to company shares that were to have been issued to Sterling Trust under a subscription agreement." Clearly, there's been a falling out amongst the thieves and this might be but one reason why Annette's car can't get to the Bahamas, and why David can't run there with the ill gotten gains. Howell is VERY connected in the Bahamas (despite being a crook)

More Smoke and Mirrors from GTXC

the recent "re-listing" on pink, as David Hagen, er... Defusco..whatever, tries to keep the SS Gatelinx afloat, has 2 filings.
First, look up Robert Von Briessen and there are no cert's, filings etc. He's a CFO, who lives and has a personal e-mail address for pinewild country club, and there is no trail. Hmmmm...
Second, in the filings, they now disclose what you heard here first, that the facilities and operations that they have around the world, weren't real. Quote, from the filing...
The Company leases rack space in four server co-location facilities s as follows:
1380 Kifer Road, in Sunnyvale, CA 94086 @ $270.00/month;
111 North Canal Street, Suite 200, Chicago, IL 60606 @ $275.00/month;
300 Bent Street, Cambridge, MA 02141 @$200.00/month; and
5821 Fairview Road, Suite 103, Charlotte, NC 28209 @ $1,913.85/month.
No other facilities were listed (save the mail drop in Nevada, and the Gatelinx homestead in Southern Pines, NC). Where's Bulgaria? Where's London England? Where's the "sales, marketing and operations" offices in San Francisco?
There's more.. read the filings, compare them with other filings and with their own website, press releases and (yes) even this blog.
Read the bio of the esteemed CEO, Curtis Garth. Now there's a leader. Where the bio for Ivan? Where's the bio's for the sales and marketing? (oh wait, they don't have any) Where's the bios for the CFO?

Notice in the financial filings it doesn't say where the revenue came from. Cause it ALL came from DishTV Now. Not one penny came from Gatelinx, er.. GTX GTXC. And, since they sold Dish, where are ANY revenues gonna come from? They're "working through licensing and marketing agreements to develop a customer base with the resultant income stream. Management is also attempting to arrange further equity financing..." SCARY. No revenue, no technology, BS partnerships (yadio, govalin, heelstrike) and they are attempting to get further financing? How about taking some of the money from the stock scheme to fund it?

Last, 3,000,000 share to hagen (does that include the 1,000,000 share of preferred he was issued?) Do a level II search and find out how many they've been dumping.


Monday, April 17, 2006

GTXC GTX Global Gatelinx

well folks, it must be getting lonely for David Hagen, er... DeFusco, at the ole Gatelinx homestead. Word is that only 3 folks (not counting David's yoga instructor girlfriend occupying an "office" next door to David's ) are around. David, Ed Ovsenik, and Curtis Garth comes by every now and then. Developers, such as they were, are all gone. They haven't had any sales, marketing, customer service, support or anything else for ages. Product management, the one guy left, is gone too.
So what does all this mean? Well, back in summer of 05, when Chuck Manning ran off to Europe with Annette Hagen, er.. DeFusco, he erased all the source code out of the development server. So, when Annette and David "patched things up" (read: "we're better partners in crime") a couple of the developers got the code back, but it never went back on the development servers.
Now, Hagen, is desparately trying to solidify some kind of deal with Yadio to get a press release and pump some life out of the stock scam. Problem is, that since nothing ever past beta code got delivered by Chuck (well, if you were getting treated to a high life in France and banging the wife of your boss, would you ever produce anything?) and the code they are trying to patch up won't scale past maybe 200 users (and won't stay up long enough for even that number to be useable), well David got a mighty big problem. 'Cept, he don't know what a big problem he has. See, it's a fact that not one of the remaining developers will either turn over the code, or work with him anymore.
And, Ivan, who is nothing more than a co-lo network administrator who was a consultant (now on the masthead as CTO), is going to be able to unravel the old code (from which all the screen shots in their literature are taken) to update and fix the scale and operability issue, and deploying on the old code is just gonna p-o Yadio.
Last, wonder what the "due diligence" is going like with Govalin and Heelstrike. Oh wait, those aren't real companies (Yadio is suspect at best) so it doesn't matter. But, the investment community, as the GTXC press and stock manipulation machine grinds to a halt, will see through this. Wonder when the SEC and/or FBI will?

Friday, April 14, 2006

GTXC Managed Pump...

the restricted period clears and, amazingly coincidental to a price drop, the share volume triples. The stock price is managed up to $5 (the magic price point for short selling as everyone knows) and volume drops back to previous levels. These guys are good, I'll give you that. They have managed this POS flawlessly. Now, watch for volume and managed price up (cause, it's clear that with no revenue and the gaping holes in their story the price won't go up on merit) and then... dump dump dump

Tuesday, April 11, 2006

GTXC GTX Global Gatelinx
I'm not one to tout any stock or company. Heck, after buying into David and Annette Hagen's BS (and now Ed Ovsenik acting as a schill as well) I'm loathe to even think about this kind of technology. iPhone is only put here as an example to the people looking to invest in the POS called GTXC, GTX Global, Gatelinx... whatever.
Notice the difference between any of GTXC's web sites and Iphones, not on the positioning or even the product stuff... but on the information that investors care about.
  • Management Team Bio's. They have them, where are GTXC's? (do even a google search on any of the so-called GTXC exec's and find nothing) I know Christine Roget from a past life, she's a stud.
  • Press releases that go beyond "marketing alliances" and "licensing" to actual releae of beta product etc. that show they are (at least appearing to) manage the process
  • Clear strategy AND execution that fits with the strategy. (GTXC has one strategy and a different execution)
  • Real revenue, that although it's small, they document it, file it and talk about it. (GTXC talks about the revenue to come, but folks, there aint nothing there)
  • Legitimate corporate addresses and contact info. (GTXC, etc., has generic e-mails, a foney phone system, a BS Vegas address and false company offices and facilities.

Investors beware. GTXC IS A SCAM

Monday, April 10, 2006

GTXC Gatelinx GTX Global

a rose by any other name.... Clearly, basic 1+1 math is escaping people. SO, let's review...
1. They have no sales and marketing. Ever hear of a technology that was a "licenseable" suite but has no actual installations, beyond some (that would only qualify as proof-of-concept) from 2 years ago... and even those aren't active anymore?
2. A search of Heelstrike, Govalin and Yadio yield NOTHING. So let's say that this technology is all that the claims are.. trust me, it isn't.. but lets say it is. You can't find anything about these "customers", the due diligence period for their (Govalin, et al) continues to be "extended" (What? Either it works and you can prove it, or it doesn't and you have a roadmap for development, or it doesn't and this is a scam... it can only be one of the three)
And finally, since no one can tell what these guys (Yadio, etc) actually do, it's impossible to figure out how it fits with GTXC's stated channel strategy. Which one of the 5 channels do they fit in?
3. Remember the shareholders meeting in January? NO reports, re-caps, announcments etc.
4. The sign on the building in Southern Pines still says GATELINX
5. Read page 4. "
five co-locations in Los Angeles, California; Chicago, Illinois; Boston, Massachusetts; and Charlotte, North Carolina, in the United States and London, England"
The co-lo facilities were (emphasize WERE, past tense) soft-switch locations of 2 servers for the GNE (a global softswitch and routing network). They're not "co-lo" like everyone would think (i.e. data centers, racks of gear, etc).
"20 employees" HUH? no way.. not even at the height was it 20. "also an office in Sofia Bulgaria". Ivan Ivanov, listed as CTO, was a contractor in a co-lo facility in Charlotte, after the facility in Raliegh kicked them out for non-payment in mid-04, that Gatelinx used. Ivan was responsible for the turn-up and maintenance of the servers after Rick Stefanik (original CTO) "moved on to better opportunities".
The 6 "employees" listed in Sofia, were Ivan's guys (he's Bulgarian) but were never employees and did no work on anything Gatelinx/GTXC/GTX Global related.
They say they have "business development, marketing and operations in San Francisco" NOPE.. no way. No employees, no operations and certainly no facilities. Don't believe me? ASK THEM? (I did, 3 times... with offers of business and wanting to meet with them in SF and got NO RESPONSE)
6. Look at the documents... they buy and license back their own technology and yet everyone of their documents on the web site(s) use old naming conventions (simply global search and replace for GTX Global versus Gatelinx) and aren't even updated.
Folks, if it quacks like a duck, etc. Annette is driving around in a new Porsche Carerra GT, David in a new Bentley. Their kids, one in school in San Diego, were on the payroll of Gatelinx for years (hiding income and taxes). They've ducked out of numerous obligations, signed the same promosory notes (against the same assets) to stay afloat in 04 and early 05 (after the Prime TV debacle) and haven't yet been able to quantify what it is they actually do, who's bought it, how much revenue they have, and what are their prospects. Now that the restricted period has passed, they've dumped shares all over the place and are preparing to ride off into the sunset (David and Annette established residency in Bermuda so guess where they'd like to run off to?) with investors money, and former employees, vendors and investors left high and dry.

Thursday, April 06, 2006

GTXC nee Gatelinx

Despite the claims that David Hagen has "resigned his positions as an officer and director of Gatelinx Corporation in contemplation of GTX Global Corporation going public. Mr. Hagen is not an officer or director of GTX Global Corporation."... he still has an office in the only facility they occupy (despite the claims of Bulgaria and the like) still has a direct dial line and still is the only person pulling the day to day strings.

The call center (formerly "DishTV Now" and "Prime TV" satellite sales for Dish Networks and DirecTV) is empty, but he's thinking about starting (and this is ironic to the extreme) a SMS (short message service) PRAYER LINE.

Additionally, and probably more importantly if you want to really know who these guys are....David Hagen personally, and Gatelinx as a corporation, have 2 default judgments against them for non-payment of wages in California. They never responded to any of the subpoenas nor did they show up at the hearings.


There was a time when the technology they tout had promise. It never got past beta-level code and a proof of concept demo. The competitive advantage was a first mover, but because it wasn't based on any "standard" there was a competitive window. Well folks, that darn window just started to slam shut a little more. When a little tiny company, that no one has ever heard of and clearly doesn't have the claims that GTXC is making can actually generate revenue (which GTXC has yet to do despite 2+ years of an "available" product and the "growing demand" they say) then you know that the scam, formerly know as GTXC has jumped the shark big time. Hagen, Ovsenik, Brecher and the cabal, rather than capitalize on the opportunity back in 04, decided that scamming investors was a better play. To quote the great movie "dodgeball"... "interesting strategy, lets see how that plays out"

Tuesday, April 04, 2006

GTXC dump dump dump

2+ times the normal volume over the last couple of days and a MASSIVE sell off. But no real surprise here.

  • There hasn't been any sales and marketing staff or activity there since (effectively since 11/04) but technically since 2/05.
  • No Customer service/support since 12/04
  • The product management function hung on for a while, but, when Chuck Manning (former lead developer) ran off early in 05 with Annette Hagen (David Hagen's wife... er.. soon-to-be-ex-wife I guess now) to Europe and never delivered anything other than beta level code no one ever produced anything.
  • The demo's they ran at "VoiceCon 06" were less than what was demo'd and showed in March of 04 (at VoiceCon) , and again at N+I in May of 04.
  • The literature touting the "products" have old "product design spec" UI designs and badly kluged up screen shots.