Sunday, February 03, 2008

Mark Brecher Joins David Hagen in Jail

Mark Brecher, the former secretary and tresurer of Vision Technology Corp (VSTC, aka GTXC, GTX Global, Gatelinx) is latest to fall. With Judge Currin, Howell Woltz, David Hagen, and now Brecher, this leaves only Edward "Ed" Ovsenik, Ivan Ivanov, Keri Keenan-Hagen and Curtis Garth as the remaining main co-conspirators. Trent Green, Leonard Martin (of Yadio fame) and the other "executives" who joined VSTC and said nothing as they walked away with cash for silence payments are also in the cross hairs of the feds. It is only a matter of time. Hagen is singing, the Fed's have reams of data and the dominos are falling left and right.

Ivan, call Gretchen and cut a deal, unless you're already running to Bulgaria. Annette Hagen nee DeFusco, call the US Attorney and save yourself and your kids from tax evasion and bankruptcy fraud charges. Curtis, just remember what it felt like to file chapter 13. You don't want that to happen to your family again, do you? When you're in jail they'll have nothing after the feds seize all your assets. Call the US Attorney.

Criminal Probe Into GTX Global Leads To New Arrest

By Carol S. Remond

Of DOW JONES NEWSWIRES

1 February 2008

Dow Jones News Service

(c) 2008 Dow Jones & Company, Inc.

A four-year-old securities fraud investigation into four heavily promoted companies continues to spell trouble for those involved.

Parallel investigations by the Securities and Exchange Commission in Florida and the Federal Bureau of Investigation in Charlotte, N.C., already led to several arrests, including that of former U.S. attorney Sam Currin who pleaded guilty to money laundering and obstruction charges. Currin was sentenced to spend 70 months in jail last year. The four companies are Absolute Health and Fitness Inc. (AHFI), Concorde America Inc. (CNDD) and Bio-Heal Laboratories (BHLL) and GTX Global Corp. (GTX).

One of Currin's accomplices, Howell Woltz, an officer of several financial firms used to transfer offshore millions in illegal gains, also pleaded guilty last year to a tax fraud and money laundering scheme.

Earlier this month, Mark Brecher, secretary and treasurer of GTX Global, was the latest to fall victim of the criminal probe. He was arrested in Florida and removed to North Carolina where he remains incarcerated.

Brecher's arrest comes three months after that of David Hagen, former CEO of GTX Global, who was apprehended last October after returning to the U.S. from the Bahamas where he had been hiding.

According to a court affidavit by FBI special agent Doug Curran, the government investigation was helped by a cooperating witness who took part in all four securities fraud schemes.

According to the affidavit, Brecher and others controlled several offshore corporations, including Laureate's Way Inc., Walcott Indies Ltd., Toubetskoy & Co. Ltd., Toussaint Liberte SA, Valcien SA and Intelligy Corp.

By using these entities, Brecher and others were able to move millions of GTX Global shares to Canadian brokerage firms, including Global Securities Corp., Union Securities Ltd. and Blackmonth Capital Inc.

Then with the help of misleading press releases and several promotional Web sites, Brecher and others were able to pump GTX Global's share price.

The FBI affidavit details how after the stock price rose in response to the fraudulent promotional activity, Brecher and others sold shares held in Canadian accounts for "tens of millions of dollars."

Brecher, Hagen and others then laundered their profits by transferring the funds to accounts at First Caribbean International bank in the Bahamas. These funds were then wired to other destinations, including accounts controlled by Hagen in the Netherlands Antilles and ultimately accounts controlled by others in the U.S.

According to SEC calculations, the pump and dump of GTX Global shares was extremely lucrative.

Based on available records, the SEC estimated that between Oct. 3, 2005, and May 17, 2006, Canadian brokerage firm Global Securities alone cleared sales for about 5.6 million shares of GTX stock with total proceeds of about $32 million.

According to the FBI affidavit filed in the U.S. District court for the Western District of North Carolina, Brecher received between $6 million and $9 million as a result of sales of fraudulently promoted shares of GTX Global. He held a majority of its profits in accounts in Switzerland, Panama and the Bahamas.

The North Carolina criminal case against Brecher, Hagen, Woltz, Currin and others followed on the heel of a civil case filed by the Securities and Exchange Commission in the U.S. District Court for the Southern District of Florida in 2004.

In that original case, the SEC accused two stock promoters - Donald Oehmke and Bryan Kos - and related companies of having pumped the stocks of the two companies. Jeremy Jaynes, a man convicted of spamming and sentenced to a nine-year jail term in Virginia, was also at the center of the SEC case, although he was not charged in that case.

Without denying or admitting the charges, Kos, Oemke settled with the SEC. Under their respective deals with the SEC, both promoters agreed not to violate securities laws, they are barred from participating in penny stock offerings and enjoined from participating in unregistered stock offerings. As part of their respective settlements, Oehmke agreed to disgorgement and civil penalties of $1,454,484, while Kos agreed to repay $499,573.

It's unclear how many more people are in the FBI's sight.

Court documents have indicated in the past that Kos, a U.S. citizen living in Canada, and Jere Ross, a Florida lawyer who facilitated some of the money transfers, might be likely targets.

Dow Jones was first to raise questions about trading in the shares of Concorde America in August 2004. The SEC began its investigation a few days later. Investigative columns revealing problems at Absolute Health and GTX Global were published in December 2004 and December 2005.

-By Carol S. Remond, Dow Jones Newswires; 303-997-5783; carol.remond@dowjones.com

18 Comments:

Blogger ex-GTX said...

on a more local, timely and personal note. Nice to see the Pat's get gunned down at the last moment this time. Ever since they beat our Panthers in SB XXXVIII on a last minute deal, I've been waiting for this day. Now if Fox can get the team healthy and back to winning again my world would be complete. At least despite a 7-9 season last year we still have the best looking cheerleaders in the NFL.

7:51 AM  
Anonymous Anonymous said...

Good thing I have other East Coast business as HAGEN has been continued to MARCH 17, 2008
at 9:00am. The motion was filed on the 29th and signed either then or 30th. The Motion and Order to Continue probably came about as a result of the Brecher arrest AND THE ONLINE THREATS made by the Hagenite. If proved, the threat can/will result in a SEVERE sentence AND another charge. So you "piece of work" who threatens online, you might have added another 10 years to the sentence! Thanks for your input. LOL~!!!!YUK YUK!! Yea, a Yuk-Yuk from Dr. Dick to anonyMOUSE!!Hope he is NOT counting on the "Luck of the Irish"!!! Oh well, a balmy 70+ here today! Bet the temp is rising in other places!!

Dr. Dick...thanks for the "tag" oh dickless one!! What would you call Dr. Phil?

Richard Bennett MD PhD

4:05 AM  
Anonymous Anonymous said...

The one who tagged you dr. dick was a poster in response to the ludicrous threats.

And I think most would agree dr. phil is also a joke.

3:41 PM  
Anonymous Anonymous said...

What's with the "Luck of the Irish" slur?

3:49 PM  
Anonymous Anonymous said...

Thanks for the response. Even though you(?)missed the levity in the post, I will offer to you 2--yes two-- things:
1: I am here going after the Bastard,
2. You are NOT!!!

And as to the slur? What planet do you live on that has Internet? SLUR? Like who doesn't get that one?
000PS. YOU, dummy!

Erin Go Braugh!!

DON"T FORGET THE CHAPTER 7 PROCEEDING!!!There are some of you that have a legitimate claim!!! Anonymouse.... WILL NOT BE ACCEPTED!!!!

Richard Bennett

6:11 AM  
Anonymous Anonymous said...

You have no choice in accepting anonymouse. Do you? BTW, since you do not have a log in, every post you make starts with "anonymous said...". That is kind of funny in itself.

DICK

7:43 AM  
Anonymous Anonymous said...

BTW:

Phil makes about/around 10+THOUSAND A DAY, Putz. Book and appearance(s) add up. Nice joke!

I heard that March 17 is also going to be continued based upon someone else rolling over? Ed, more likely. Jeez, imagine Ed in prison! Pillsbury Dough Boy as a treat! That is where he will REALLY make money. Rumor or not, this is heating up and we will see the reality of the 'Scam' in the next few weeks.

Dr. Dick............dunna ya justa luv it!!!!!!!!!! And where is the "Keyboard" tough guy? I am in Charlotte sonny. Where are you?

Richard Bennett

8:45 AM  
Anonymous Anonymous said...

Richard-

Because I'm an idiot and didn't get your reference to what would be Keri, I suppose, I was looking into the Irish thing (first thinking Brecher and found this on Origin of Surnames. Note the last line, thought you would enjoy.

brecher
English: variant of Brach 2, the -er suffix denoting an inhabitant.
German and Jewish (Ashkenazic): from an agent derivative of German brechen ‘to break’, an occupational name for someone who crushed hemp or flax, or possibly a nickname for a lawbreaker.

12:53 PM  
Anonymous mickey said...

talk about over-looking the obvious. OOOPS.

Dr.Phil is still a joke to the profession no matter how much money he makes. Money does not define worth -- look at most politicians

2:20 PM  
Anonymous Anonymous said...

"the government investigation was helped by a cooperating witness who took part in all four securities fraud schemes."

OK, who is the witness?

4:04 PM  
Anonymous Mickey said...

Wow, HAVEN'T BEEN HERE FOR A WHILE, IT'S GOOD TO SEE.

Richard-I agree with you, these DAMN anony- MICES need to take roll call.

SO,
ex-gtx? Name, rank and serial number?

DD? Please come forard. Name and phone number please.

Carl? e-mail address?

ANOMYMOUSE #1:

ANONYMOUSE #2:

ANONYMOUSE #3:....

or however many there realy are...

Richard is right.

Names please.

4:38 PM  
Anonymous Anony- MOUSE! said...

The witness?

Probably Annette, or whoever is left un-arrested (without true jail time).

4:40 PM  
Anonymous Anonymous said...

Yup, you're right I really should stand and be accounted for. I mean, it's not like there have been any death threats on this blog... or any evidence of the Hagen's (and their cronies) using the legal system to harass people they saw as enemies.

So, sure here is my full name, address, phone number and social security number:

Seriously, it can't possibly be that you are stupid enough to think a trick like that would work. No, the clear intent is either 1) yet another attempt to intimidate any readers/potential witnesses or 2) a really sad attempt to try and convince new readers that there was some kind of anti-Hagen conspiracy.

Neither will work of course. And just like the yahoo in the last thread, I strongly suggest that you talk to your lawyers before continuing in the vein. The Feds are not fans of people trying to mess with their court cases. They get all pissy about it.

10:13 AM  
Anonymous Anonymous said...

I am an ex-gtx employee and I like to read this blog every couple of months. I'd just like to say that all this bickering is pathetic and you should all get a life.

6:23 PM  
Anonymous Anonymous said...

Ditto. Some people who post here frequently have lost sight of what this blog is all about.

7:26 PM  
Anonymous Anonymous said...

I think that I have only met one person who is a arrogant as Dr Bennett. Wow!! An ego to rival Dave Hagen. You must be proud!

11:54 AM  
Blogger Justice Be Served said...

pro sat was writing checks to USA global, dynacorp, and GTX cab someone help me put this together with David

11:38 AM  
Blogger Justice Be Served said...

also mark hagen has ties to butterfield did they get davids accounts there i am working to get the fbi in davids case to start looking at mark, can you help me get the agents name abd number

11:40 AM  

Post a Comment

<< Home