Seventy two pages seems like a lot to hide. Read it here:
Is Eric Noveshen still denying that he has ever been involved with microcap stock fraud? -Noveshen keeps insisting he was never involved in a pump-and-dump stock scam. Did he forget about Itronics? It was a long time ago but he can’t even remember that he’s involved with Pure Hospitality Solutions, as of, when was the last deposit he got from selling shares of PNOW? Likely within the last couple months. Investors pay consultants of penny stocks, get no return and are forgotten – quickly. Don’t be a victim.
Why did Daryl Dworkin have to pay back the $375,000 kick back money and fines but Noveshen didn’t have to pay a dime of restitution?
Why are two men guilty of the same securities crimes but only one is sentenced and fined?
Why was Eric Noveshen’s cut of the Medgen money laundered “consulting fees” left for him to enjoy? Did he even pay taxes on that money? Probably not, he’s allowed to commit tax evasion too? Noveshen has some serious power with the SEC and IRS, not even an hand slap.
Does the SEC and Dept. of Justice know or care how many investors have been hurt in six years since they let Eric Noveshen walk away from his criminal acts? Check with investors in these microcap stocks ….EDWY, SMEV, SLGS, PNOW (formerly OTHM), HIMR, GAHC, BMIN and more.
Transcript from United States of America v. Daryl Dworkin
Yesterday’s blog, “Eric Noveshen’s Biggest Financial Scam Money Laundering Through Consulting Fees” generated a lot of emails. One claimed to have been a victim of the NIR, Daryl Dworkin, Eric Noveshen, Medgen PR scam. Almost any email of relevance said look at the pattern of shorting.
This is what Pdgood said on http://www.investorshub.com too, “You up ta speed on shorting? Eric wants no part of the questions that would be asked about Medgen, Robins as CEO of ECMH…Eric was front and center in all these scams.”
As explained, Noveshen was a PIPE deal finder for a New York hedge fund NIR. Noveshen found small or struggling companies that needed funding. He would offer funding from NIR, with a catch. The company had to pay large fees for PR, to a PR company chosen by NIR. That company was Boca Raton based Medgen, a money laundering factory disguised as a producer of holistic health products.
The PR money was and split between Dworkin of NIR, Noveshen of Envision Capital, and Paul Kravitz head of Medgen.
From the affidavit of the CEO of the Juniper Group, an NIR (AJW Funds) funded company confirmed that the funded companies were required to pay money to Medgen (Paul Kravitz) for “PR” and “Consulting”.
AJW QUALIFIED PARTNERS, AJW MASTER FUND… v. JUNIPER GROUP, INC.
NIR illegally shorted a long list of stocks of the companies it funded. The pattern of shorting and other securities frauds committed by NIR is spelled out in many lawsuits against NIR and its AJW Funds. Note* it fits the same pattern of stock manipulation that Ajene Watson and Eric Noveshen are accused of in the Simulated Technologies/Licht v. Watson lawsuit.
More details of this case found here:
More information on stock shorting:
“Look at the Medgen connection. Funds were laundered through Medgen via consulting fees..Drill inta those underlyin docs that support the 800k…at least a small portion.”
Source – http://www.investorshub.com
If you want to understand a story you have to start at the beginning. Why was Eric Noveshen issued a federal indictment in 2010? How did Eric Noveshen get in a position to loan Automatic Slims over $1-million dollars in 2006? How did Noveshen get so tight with Arthur Robbins? How did Noveshen get in a position to pay Cosi $400,000 for the franchise rights to open shops in South Florida? – Medgen.
We love Investorshub.com – its essential if you want to learn about penny land. In particular these screen names share a wealth of knowledge -Janice Shell, cyberbullymouse, nodummy and renee are just some who post essential information.
We can’t forget pdgood, who once said his info might be early, but it’s never off topic. We should have looked into his advice regarding the Eric Noveshen scam story long ago.
Here’s how Noveshen ended up with all that money. Noveshen was a PIPE deal finder for a New York hedge fund called NIR – that was sued and shut down by the SEC for many securities violations in 2011. Noveshen found small or struggling companies that needed funding. The white knight would offer funding from NIR, with a catch. The company had to pay large fees for PR, to a PR company chosen by NIR.
Here’s where it gets twisted. Boca Raton based company Medgen supposedly was “establised to manufacture, sell and license healthcare products” according to a company report below. But they didn’t make money doing that so “management started a Financial Consulting service.” – The PR service NIR required companies they funded to use.
The consulting fees show up in the financial reports that PD said to drill into. He was point on, 100% correct.
Source – http://www.investorshub.com
In the end of 2007, Medgen reported a 191% increase in YTD revenue. What? Sounds like those impossible Madoff numbers. But it wasn’t from their BS snoring solution it was from consulting fees laundered through an alternative health product company.
In one quarter there were near $800,000 in consulting fees buried in the report. Noveshen had to kicks some of that back to Daryl Dworkin who was Noveshen’s insider at NIR. In 2010 Dworkin pleaded guilty to taking kickback money from two PIPE deal finders, Eric Noveshen was one of them.
What a scam huh? We told you Noveshen was a great financial scam artist. Read em for yourselves here:
2nd quarter ended 3/31/08, Product sales: $72,937 Fees Consulting Services: $419,411 ??
As pd said, “THE OCTOPUS HAS MANY TENTICLES” – Noveshen’s financial scams are still going on, this very day in June 2016. Don’t get played by this financial playa!
In the microcap world, consultants or people who lend money to micro companies who then can’t pay the debts back then have to pay in large blocks of stock, which they usually sell off fast and drive the price of the stock to nothing. Often, the same consultants and lenders go from company to company repeating the same frauds. Investors have a right to know the history of an individual in control of their money. If an individual has any ties to past scam companies, this information is either totally concealed or hard to find.
“Of potentially greater concern is that the lack of reliable, readily available information about some microcap companies can open the door to fraud. It’s easier for fraudsters to manipulate a stock when there’s little or no information available about the company.”
“Publicly-available information about microcap stocks, including penny stocks often is scarce. This makes it easier for fraudsters to spread false information. In addition, it is often easier for fraudsters to manipulate the price of microcap stocks because microcap stocks historically have been less liquid than the stock of larger companies.”
Before investing in a microcap, the SEC advises:
Who pulling the strings inside a company is a significant information that investors in all types of publicly traded companies should have the right to. But often if you read the fine print of a financial report you will find a statement like these: (pulled from real reports)
“On September 4, 2015, the Company entered into a consulting agreement, effective October 1, 2015, for an initial term of three months”
“the Company entered into consulting agreements with four sons of its President, for their respective consulting services at a rate of $29,000, respectively.”
With Who? Or the consulting agreement will be with a company, you have no idea who the actual people are you’re giving your money to. If you look up the company it can be some ambiguous company registered to another company.
Information is investors best weapon against fraud. Fraudsters don’t want their information public.
This is why we support reporters like Teri Buhl, be thank ful for her trademark “Smashmouth Investigative Journalism” probing and asking the questions and reporting stories fraudsters don’t want told. She dug deep into the NIR debocal that caused investors to lose millions that the government could never recover. All this is relevant to this site because of NIRs storied PIPE deal finder Eric Noveshen – knowing the players is important when thousands of people have their money on the line.http://www.teribuhl.com/2011/11/23/pwc-says-nir-group-doesnt-have-access-to-dealer-market/
Some of the comments posted on her reports:
I have lost a huge portion of my retirement in the NIR fund, AJW Offshore. Corey Ribotsky seems to be doing well and I need to contact him regarding my losses. I need Corey’s phone or email address. Help!
December 9, 2011 at 1:06 pm
Can you please look into the NIR payment arrangement with the Itronics settlement.
I think you’ll be startled at what you uncover. In a nutshell, Itronics has been committing fraud on multiple levels. They agreed to settle with NIR for $8M+ payable in shares or cash. The company has zero cash yet they only added about $600k worth of shares to their outstanding share count since the May 4, 2011 payout commencement date. This means NIR is being paid in something other than just shares. It’s widely speculated that ITRO is grossly understating revenues and selling silver off the books to pay this settlement or some other nefarious scheme. Perhaps they have a deal with silver? Nobody knows for sure but I’d bet my bottom dollar that NIR is receiving dirty money from ITRO and may very well be complicit in the scheme.
Itronics the good ole fertilizer company, Eric Noveshen had his hand in that cookie jar. Last year he claimed he wasn’t connected to NIR, for good reason, but don’t investors have the right to know? https://www.sec.gov/litigation/litreleases/2011/lr22106.htm
From a 2009 deposition of Corey Ribotsky:
Curt Kramer? Connect the dots again…Noveshen worked with Kramer in a pump and dump of a Florida based company, SMEV that resulted in a federal lawsuit in 2012, Allen Licht v. Ajene Watson et. al (Noveshen was a defendant). Bet Allen Licht wish he knew this information prior to signing a deal with him.
Curt Kramer was blacklisted by FINRA in 2013.
EDWY, edoorways – another pump and dump Noveshen benefited from in 2009-10, as noted in Allen Licht v. Ajene Watson et. al. Warning: the circle isn’t too big folks.
A recent blog sited a 2011 SEC complaint against the NIR Group and Corey Ribotsky. Part of the complaint stated Ribotsky “entered into a multi-million dollar transaction with the Purchaser and his entities that was clearly not in the best interest of the AJW Funds.” The complaint further states, “Prior to entering into the debenture transactions in November and December 2008, Ribotsky knew and in fact told others the Purchaser’s character and reputation for honesty were suspect.”
There was much speculation on several investment boards that “the Purchaser” was Eric Noveshen. Ribotsky commissioned an investigation into the Purchaser’s financial condition, part of the report summary:
We wondered why would Ribotsky enter into a multi-million-dollar transaction for AJW Funds with a “Purchaser” he clearly knew was not financially sound enough to pay his own credit cards?
The SEC summed it up simply, the transaction, that was sure to fail, allowed Ribotsky to report “a “realized” gain at a critical time without his funds actually receiving any money.” In other words it allowed him to defraud AJW investors longer. We don’t know if “the Purchaser” was compensated for assisting in this act of fraud.
Speculation that the “Purchaser” was Eric Noveshen was not limited to the timing of his Edooorways deal with NIR. The SEC complaint says the Purchaser had many debts. Court records show many lawsuits were filed against Novehsen, his companies and straw buyers, for failure to pay credit cards and other obligations in 2008 and 2009, below are just a few.
The home he resided in went into foreclosure in 2008 as well. And his Former Wife found document’s apparently showing “clear wrong doing in the nature of mortgage fraud” likely occurred in Noveshen’s obtaining the use of that property.
A handful of Eric Noveshen’s current and past business partners. Some are on the up and up, fraudsters often ride the coattails of solid business people. Others are not so trustworthy it’s for investors to decide.
With Jeffrey Rubin, former partner Automatic Slims
Stock consulting team, Simulated Enviornment Concepts: Israel Bornstein, Eric Noveshen, Ajene Watson. And Edoorways:
Christina Kitterman, former attorney at Scott Rothstein’s law firm. Kitterman is serving a five year jail sentence for fraud. Kitterman was the business attorney for Noveshen and listed as the registered agent for two of Noveshen’s companies, Envision Foods and Envision London Square. Both companies are now defunct.
Corey Ribotsky, former head of NIR
“The case was a complete failure by Loretta Lynch’s office,” this quote from financial reporter Teri Buhl on the case US v. NIR Group might be the understatement of the decade.
From Reporter Teri Buhl’s “SEC Knew Collecting $14.5 Million would Fail”
“At Dworkin’s sentencing hearing in Brooklyn, NY I got to see how the DOJ and SEC lawyers acted in this case. I was surprised by their egos given how little they accomplished. Government lawyers told Judge Dearie they were working hard to recover money for investors but they simply haven’t been able to do it. After the hearing I cornered SEC attorney Kenneth Byrne and a little man with horn rimmed glasses who was running the DOJ case to ask them face to face how they felt about their inability to get justice for investors and collect any money. DOJ attorney Daniel A. Spector scowled at my question and instead of answering it demanded to know my name and who I report for. I said my name was Teri Buhl and you should clearly know who I report for now. (Spector’s predecessor who started the NIR Group case had interviewed me in 2009 to get help finding NIR investors Ribotsky had lied to so I know the DOJ had been reading my reporting.) Attorney Spector’s ego kicked in and gave me a smug look saying they can’t comment on the case except what I heard them say in court. Now after a case is over the DOJ can comment and usually issues a press release. But in this case the PR girl for the DOJ admitted since there was no jail time for Dworkin there wouldn’t be a public comment. Meaning they didn’t want to promote a case that got so little for investors.
As I watched the SEC attorney and the DOJ boys leave the court room and slink into the elevator I did something I rarely do when asking subjects of a story questions. I asserted my opinion. I looked them both in the eye and said, “You should be ashamed of yourself for not doing more for the defrauded investors. You had this case handed to you an a platter.”
This blog relates mostly to the injustice of the financial fraud committed by Eric Lance Novesehen of Fort Lauderdale, Florida. Where does he fit into this SEC / DOJ colossal failure to protect investors? EVERYWHERE.
The complaint against Daryl Dworkin was filed in 2010 – US v. Daryl Dworkin. The nine page complaint makes reference to Eric Noveshen, though not by name.
“One corrupt PIPE Deal Finder paid approximately $375,000 in kickbacks to defendant DARYL DWORKIN in cash”
It goes on to say “whose identity is known to the United States Attorney.” That’s why Eric Noveshen received a federal indictment and was deposed in this case. What is fishy, shady, questionable is why the SEC /DOJ never prosecuted Eric Noveshen and even sealed his indictment.
Now approaching 2016, the SEC /DOJ can pat themselves on the back. Their failure to indict, fine or somehow penalize Noveshen for kickbacks and his role in stealing from NIR investors has allowed him scam and steal from investors, businesses and others for another six years! Time to take a second look at the web of fraud Eric Noveshen is still free to weave down there in Florida guys & gals at the SEC & DOJ, and Loretta Lynch too.