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Tim Huff's Life Gets Tougher

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September 10, 2009 – Comments (3)

Interesting new news here.

On September 8, 2009, the Securities and Exchange Commission ("SEC") filed a civil action against Timothy J. Huff ("Huff"), the former chief executive officer ("CEO") of GlobeTel Communications Corp. ("GlobeTel" or the "company"), a publicly-traded company headquartered in Fort Lauderdale, Florida, now known as Sanswire Corp.

According to the complaint, which was filed in the United States District Court for the Southern District of Florida, Huff participated in a scheme to fraudulently inflate GlobeTel's revenue from approximately May 2002 through October 2004. The complaint alleges that Huff's scheme involved the creation of millions of dollars in fake invoices and call detail records that appeared to reflect transactions between GlobeTel and telecommunications companies in Mexico, Brazil and the Philippines. The complaint further alleges that, as a result of Huff's scheme, GlobeTel issued materially false and misleading periodic reports, registration statements and press releases. Huff allegedly received compensation from the company of about $4.9 million and exercised stock options with a value of more than $1.5 million.

I was originally brought to this story by Globetel's outlandish claims of a major deal to provide wireless services to Russia. From there, it only got worse. We were among the people who pointed out at the time that this looked like an enormous scam, and that the story only got worse as Huff's excuses kept coming.

Full SEC complaint is here.

Sorry about this link spaghetti. There's no easy way for me to clean this all up.

The End of an Ugly Story ... . GlobeTel Communications (OTC BB: GTEM.PK) has finally gotten its Wells Notice from the Securities and Exchange Commission ... Published by Seth Jayson | October 12, 2007 Foolish Interview: CAPS Star Seth Jayson ... superstar stock-picker and Foolish senior analyst Seth "TMF Bent" Jayson ... Published by Dan Rubin (TMF El Capitan) | April 30, 2007 World's Worst Corporate PR ... . It's free. At the time of publication, Seth Jayson had shares of Intel, but no positions in any other company mentioned here ... Published by Seth Jayson | November 10, 2006 GlobeTel: Back to the Minors ... of investing newsletters with a 30-day free trial . Seth Jayson would still LOVE to see those Russian-Brazilian bank wires ... Published by Seth Jayson | October 09, 2006 You're Full of It ... . At the time of publication, Seth Jayson had no positions in any company mentioned here ... Published by Seth Jayson | October 04, 2006 Be the Sith Lord ... .50, or market caps below $100 million. So folks interested in the likes of GlobeTel (AMEX: GTE ) or Xethanol (AMEX: XNL ... Published by Seth Jayson | September 21, 2006 Don't Pity Vonage ... . At the time of publication, Seth Jayson had no positions in any company mentioned here ... Published by Seth Jayson | September 06, 2006 Amex Rings GlobeTel Again ... 's Australian Odyssey Seth Jayson would still LOVE to see those Russian-Brazilian bank wires ... Published by Seth Jayson | August 28, 2006 GlobeTel: Feel the (Cash)Burn ... . Seth Jayson thinks a WiMAX blimp would be way cool, but he knows the difference between dreams and reality ... Published by Seth Jayson | August 16, 2006 Same Sad Story at GlobeTel: Fool by Numbers ... &T was a former Motley Fool Stock Advisor pick. At the time of publication, Seth Jayson had no positions in any company mentioned ... Published by Seth Jayson | August 16, 2006 Amex Lets Air Out of GlobeTel ... . As the Fool's Seth Jayson has pointed out here , here , and here , and the Amex seemingly has ... Published by Rich Duprey | July 21, 2006 GlobeTel's Dow Jones Enabler ... . Seth Jayson is flattered to star in GlobeTel zealots' latest conspiratorial delusions, but at the time ... Published by Seth Jayson | July 19, 2006 A Random Walk Down Penny Lane ... looking for with a free 30-day trial to Rule Breakers . Seth Jayson is always rummaging through the junk pile to see what's interesting ... Published by Seth Jayson | July 18, 2006 Just Say "Nyet" ... : GOVERN YOURSELF ACCORDINGLY. Seth Jayson knows it takes time, but he really does think investors ought to pay attention to minor details like SEC filings ... Published by Seth Jayson | May 01, 2006 The GlobeTel Silent Treatment ... GOVERN YOURSELF ACCORDINGLY. At the time of publication, Seth Jayson had no positions in any company mentioned here ... Published by Seth Jayson | April 11, 2006 GlobeTel Still on Hold ... publication, Seth Jayson had no position in any firm mentioned here ... Published by Seth Jayson | March 13, 2006 GlobeTel's Australian Odyssey ... , another ATC, or something even worse. At the time of publication, Seth Jayson had no positions in any ... Published by Seth Jayson | January 23, 2006 Making Peace With Ponzi ... . Seth Jayson is a great fan of paying less than retail ... Published by Seth Jayson | January 19, 2006 More Hot Air From GlobeTel ... . Seth Jayson is always on the lookout for the next big thing, because it's usually a great big bust ... Published by Seth Jayson | January 06, 2006 Investing in a Crooked Market ... . Byrne "Others" Aren't to Blame At the time of publication, Seth Jayson had no positions in any company mentioned here ... Published by Seth Jayson | September 02, 2005

3 Comments – Post Your Own

#1) On September 10, 2009 at 10:06 AM, TMFBent (99.81) wrote:

Wow, do read the whole complaint, where the SEC alleges that Tim Huff was the originator of the entire fake revenue scheme, not the innocent victim he's tried to play for the media, such as the brain-dead St. Louis Post Dispatch, which did a puff piece on him a while back..

I think this guy is a serial con-man, and I really hope the SEC gets a pound of flesh or more. Actually, I think he deserves to do a bit of time in prison, but with all the higher-profile financial criminals out there, I doubt we'll see any action there.

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#2) On September 10, 2009 at 10:28 AM, ByrneShill (73.78) wrote:

The sad thig is that even if Huff was tar and featered, then sent to the gulag, the events happened 5 years ago, so no matter what happens next, nobody who's been defrauded in this story will ever see their money again.

Weren't they the guys who bought a ship or something to try and find pirates treasures in the Carribean?

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#3) On September 10, 2009 at 10:36 AM, TMFBent (99.81) wrote:

Naw, the guys who claimed to be making blimps to give everyone wifi phone, tv, internet.

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