CAPS' Favorite Stock Fraudster...
Rufus Harris, of Conversion Solutions Holdings -- who had a supporter (or sockpuppet?) here in CAPS, got what was coming to him last week.
Remember, one of this guy's whines was that illegal shorting was holding him back. What was actually holding old Rufus back was that he's nearly illiterate and his scams were too easy to see through. Still, he managed to fleece legions of investors, which just goes to show you how many people should not be placing their own stock market bets.
Court Renders Final Judgment Assessing Civil Penalties of $1,170,000 Against Harris and $250,000 Against Conversion, Barring Harris From Serving as an Officer or Director of a Public Company for Seven Years, and Enjoining Further Violations
And what about those dastardly shorts
The Court's September 17, 2008 decision followed a live remedies hearing on September 10, 2008, at which the Commission presented evidence that short-selling had no meaningful effect on Conversion's share price from September 26 through October 23, 2006, as only approximately 250,000 shares of Conversion were sold short short out of a total of over 62,000,000 shares traded during that period.
And don't miss this:
On the basis of the evidence presented at the hearing, the Court found that Conversion never had any business-related revenue, and that its only source of funds was an ongoing offering of convertible notes and/or stock that began before the time period charged in the Complaint. The Court also found that Conversion had not paid any money for any of the purported assets carried on its books, which consisted of various series of bonds, uncollected interest due on the purported bonds, and a document called the UCC-1 Note. The Court found that the UCC-1 Note is not a standard piece of commercial paper, but an eight-page document signed by an individual named David Hawkins, which purports to be an "Affidavit of Obligation" in favor of Mad Dog Builders, Inc. and Mr. Hawkins, and which contains references to purported legal concepts including the "individual energy protection maxim," the "social cooperation protection maxim," and the "Hebrew/Jewish Commercial Code."
The Court found that, through three relatives, Harris attempted, unsuccessfully, to sell up to 1.6 million shares of Conversion into the public market during the time period alleged in the complaint, while the stock was trading at dramatically inflated prices as a result of his fraudulent misstatements about Conversion's purported assets in Conversion's press releases and SEC filings. The Court found that the scheme caused tremendous harm to the investing public, resulting in many millions of dollars of losses to thousands of innocent investors.
I sincerely hope a criminal case throws this crook into jail, where he belongs.