April 12, 2007
More to come Christopher Cox the flood gates are gonna open up now You had your chance Say hello to bubba
April 5, 2007 EAGLETEC Open Letter to DTCC
Open Letter to Depository Trust and Clearing Corporation First Deputy General Counsel Larry Thompson on the Largest Breach of Public Trust in History
PLANTATION, FLORIDA, April 5, 2005, /PRNewswire-FirstCall/ -- Eagletech Communications Inc. (OTCPK: EATC), today released its response to the Depository Trust and Clearing Corporation First Deputy General Counsel Larry Thompsons recent postings at http://www.dtcc.com/ seeking to mislead the public about the DTCCs role in the largest breach of public trust in history.
Dear Mr. Thompson:
I wish to remind you that on March 4, 2005 Eagletech Communications, Inc.s Attorneys announced the ruling of the Supreme Court of the State of New York, wherein the DTCC was compelled to produce the Companys trading records
Today, more than one month later, the records have not been forthcoming as ordered by the court. Instead, as First Deputy General Counsel for the DTCC, I believe you have undertaken a campaign to disseminate misinformation, lies, and half-truths when confronted with facts made public by your detractors.
On March 5, 2005 one day after the announcement of the aforementioned court ruling, your interview @dtcc.com, entitled Naked Short Selling and the Stock Borrow Program, stated: One of these companies has been cited for failing to file financial statements since 2001. Congratulations You did get one right. On February 15, 2005, the Securities and Exchange Commission deemed it necessary for the protection of investors to institute proceedings pursuant to Section 12(j) of the Securities Exchange Act of 1934 In the Matter of Eagletech Communications, Inc., Respondent.
On the same day The SEC also filed an Enforcement Action against 17 Defendants, all associated with the Companys first Investment Banking firm, for manipulation of the Companys stock. Also on that day, a New Jersey Grand Jury unsealed an Indictment charging 4 of the 17 with criminal charges. I was not surprised since the evidence used by the SEC and the Justice Department in both investigations was obtained from discovery in the Companys 2001 civil lawsuit against several of the same perpetrators. The evidence was obtained from defendants residing in the Bahamas, outside both of the agencies jurisdictions. Plaintiffs Attorneys shared the discovery evidence freely with the investigative agencies.
What was surprising was that the Companys three official complaints of naked short selling, counterfeiting of the Companys stock, and other criminal misconduct made in 2002 to the SEC were to my knowledge ignored. The first complaint to the SEC transmitted the Companys civil lawsuit alleging that 5 of the managing directors of Salomon Smith Barney along with other SSB employees worked in concert with criminal securities manipulators.
Three years of evidence gathering implicates now convicted securities manipulator Anthony Elgindy, his associate Peter Michaelson, members of organized crime, manipulator Jonathan Curshen, his Offshore Management Company Red Sea Management, Market Makers WIEN Securities, Knight Securities, and scores of Wall Street professionals. Additional evidence obtained from the SECs own website contributes to the description of a scheme to destroy the value of the Companys stock and ultimately the Company for the profit of the perpetrators. A second complaint to the SEC resulted in the presentation of pattern of evidence of naked short selling and counterfeiting of securities in 200 companies, to SEC Enforcement Attorney Justin Arnold at a meeting in the SECs Miami office. The third complaint submitted by U.S. Congressman Peter Deutsch on the Companys behalf received no acknowledgement from the SEC at all.
Mr. Thompson, in your interview you state (referring to Eagletech): Frankly we believe that the allegations are an attempt to purposely mislead those who are not familiar with this program. Consider this. Forensic Economist and Professor of Finance at Fordham University Graduate School of Business, John D. Finnerty after four years of research in March 2005 released what will likely become the definitive work on this subject for Juries across America. In his 73 page Treatise entitled, Short Selling, Death Spiral Convertibles, and the Profitability of Stock Manipulation, Professor Finnerty on page 37 has this to say about the Stock Borrow program:
The stock borrow program can facilitate naked shorting in two ways. First, sellers can continue to fail to deliver because the NSCC can borrow the shares it needs to meet its clearing obligations through the stock borrow program. It does not have to force the seller who fails to deliver to buy in shares, nor does it have to go into the market to buy in the shares. It simply borrows them from another member firm to effect the buy-in. Since the NSCC covers the short position, the buyer of the stock also never has to buy them in. Second, the stock borrow program allows the shares to be recycled. Each stock loan gives rise to another stock futures contract. Any single share could actually be relent multiple times, giving rise to multiple futures contracts. Each futures contract credited to a broker-dealers sub-account at the DTC continues to be reported on the broker-dealers books as a share held either in its proprietary account or in a customer account. In either case, the account holder believes he owns a real share with all the rights attached to it. Consequently, the stock borrow program effectively creates additional unauthorized shares of the issuers stock. These undated stock futures contracts, which the financial press has referred to as phantom shares, inflate the amount of stock that is available for trading and also increase the amount of stock that is available for lending to short sellers The entire text is available for download at:
Mr. Thompson maybe you dont realize that just as it is against the law to counterfeit United States currency it is also a Class B Federal felony punishable by up to 25 years in prison to create counterfeit corporate securities. The law makes no distinction between the counterfeiting of a development stage startup public company and for example, Microsoft Corporation. By the way, while listed on the Pink Sheets in 1975 Microsoft reported three employees and income of $16,000 for the period. Lucky for Microsoft that the Stock Borrow program wasnt created until 1981 Lucky for me, I could be typing this letter on a typewriter Ive included this link to United States Code, Title 18, Chapter 25, Section 514, also refer to Section 513 for definitions:
Eagletech Communications, Inc. representing itself Pro Se has answered the charges of the SEC with the Affirmative Defense that grandfathering all pre-Regulation SHO delivery failures and that seeking to de-register the Companys stock in order to protect future shareholders is a subterfuge to misrepresent its real intentions. In my opinion this action against the Company is designed to conceal its own culpability in, using the SECs own words, delivery failures greater than a companys total public float. De-registration of the Companys shares stands to reward manipulators just as a bankruptcy would, since the manipulators would never have to purchase the stock to close out delivery failures still on the DTCCs books. In my opinion the SECs decision to grandfather known criminal securities manipulation has violated the Constitutional 5th Amendment rights of Eagletech shareholders by an inverse taking of their property without due process and without compensation.
In a motion to SEC Administrative Law Judge William T. Kelley filed on March 22, 2005, I have asked that the approximately 100 pages of evidence of criminals in the act of manipulating the Companys stock filed with the Companys answer, and by reference Eagletechs trading records ordered to be produced by the DTCC, be referred to the U.S. Secret Service, the U.S. Justice department and as 18-USC-514 states any other such agency having such authority.
Since the DTCC is incorporated as a State of New York Special Purpose Trust Banking Organization I believe Elliot Spitzer, New Yorks Attorney General, would have that authority. It would also appear that the SECs Congressional Oversight Committees, the Senate Banking Committee and the House Financial Services Committee would have such authority to investigate these crimes. Since viewing Senator Robert Bennetts impassioned admonition to SEC Chairman William Donaldson in a Senate Banking Committee hearing that Regulation SHO in not working I have hope that other members of the SECs Oversight Committees can be convinced to take a serious look at this issue.
For your convenience I have included a link to the video record of the hearing: After installing Real Player navigate to 1:19:30 for video of the Senators admonishment,
The appropriate response to this letter would be with facts not rhetoric. In the @dtcc interview you ask yourself the question does the Stock Borrow program counterfeit shares? Only by producing Eagletechs court ordered trading records will the real answer be known
In addition, would you please include with any response to this letter, (1) your Bar number and (2) the State in which you are admitted to practice law. And just so there is no confusion about the authenticity of my allegations I will be posting the evidence of the alleged criminal misconduct on the Companys website at
Rodney E. Young
Eagletech Communications, Inc.
Founder, President, CEO, and Sole Protector of Existing Shareholder Property Rights
This press release may contain forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, governmental regulation, competition, and other material risks.
Eagletech Communications, Inc.
Rodney E. Young
This is the first lawsuit Eagletech filed. We wont give up
Eagletech Communications Sues 40 - Financial Firms, Market Makers, Brokers, Individuals Charging Fraud Conspiracy - Common Law Fraud, Civil Conspiracy, Conversion and Violation of the Rico Act Are Alleged in a Scheme to Manipulate the Company's Stock
November 13, 2001 9:46 AM
FORT LAUDERDALE, Fla.--Eagletech Communications Inc. (OTC Bulletin Board: EATC - news) a wholesale provider of next generation enhanced telecom services to carriers today announced that it has filed suit in the Florida 11th Circuit Court against a total of over 40 defendants, including: Salomon Smith Barney, and six of its present or former NY-Wall Street area office high level executives, certain market makers, including Knight Securities, Schwab Capital Markets, and Thompson Kernaghan, certain broker/dealers including, Oscar Gruss Son, Liss Financial, and National Securities, certain investment banking firms including, The Paradigm Group, Valley Forge Securities (formerly Bryn Mawr Investment Group), alter- ego corporations, Trinity Technology Management Incorporated, Lloyds Bahamas Securities LTD., former Eagletech CEO Robert Dobbs, and key individuals, Randall S. Goulding, John P. Dorocki, and John Serubo, among others.
Eagletech is represented in this action by attorney firms O'Quinn,
Laminack Pirtle, of Houston, Texas, Christian Wukoson Smith
Jewell, also of Houston, Texas, and Arthur W. Tifford P.A., of Miami, Florida. The suit alleges among other things, that during the period from February 1999 through the present, the defendants, working in concert, orchestrated Pump Dump'' then Toxic Convertible or Death Spiral'' schemes, reneged on subsequent funding commitments,
and illegally manipulated the stock by an organized campaign of short
selling to depress the price. This has resulted in the alleged
bilking of at least $100 million dollars in market capitalization
from the company's stock and ultimately from the pockets of its
common shareholders, the attempted takeover'' of 95% of the
company's stock and the attempted stealing'' of its valuable
patented technology. The suit asks for compensatory damages,
rescission of agreements, the return of millions of dollars in
illegally converted property, treble damages, attorneys' fees,
establishment of a constructive trust, and the right to plead
punitive damages. A separate action against these defendants by the
common shareholders is also contemplated.
"Most companies that have suffered this fate, are so financially
weakened by the organized attacks on their stock, that they have
little choice but to turn their companies over to these people, who
after the takeover offer jobs and new funding, usually the same
funding they once denied the company," stated Rod Young, Co-founder,
President and CEO of Eagletech. "We are the exception. We will not
accept this brand of financial terrorism. We will rebuild this
According to Young, "Timely, best describes Eagletech's patented
technology that delivers next-gen enhanced services to carriers
without having to purchase next-gen switches. With the current
telecom capital implosion well under way, billions in redundant
capital expenditures could be preserved, by extending the function of
existing switches with Eagletech's technology. The company's mission
is to forge ahead, re-capitalize, establish new strategic
relationships, and return the value that has been stolen from the
shareholders. Eagletech is open for business"
Lead council for Eagletech is John O'Quinn of O'Quinn, Laminack
Pirtle. Mr. O'Quinn was also the lead counsel for the State of Texas
in the $16.5 billion settlement against the tobacco industry and is
rated as one of the top ten plaintiffs counsel in the United States.
He has obtained verdicts and settlements exceeding $25 billion in his
career. Florida counsel, Arthur Tifford recently won a judgment in a
similar "Toxic Convertible" - "Death Spiral" case totaling $389
million. ITIS dba Litidex, a wholly owned subsidiary of ITIS, Inc.,
formerly Internet Law Library (OTC Bulletin Board: ITII - news) has
been retained by the law firms to handle litigation support.
Mr. O'Quinn stated, "We filed this lawsuit based upon an
investigation of the financing and of the principals and associates
involved. It is our opinion that our client and its shareholders,
like many others, have been victimized and damaged by predatory
financing schemes involving numerous market makers and others
designed to enrich the financiers to the ruination of the companies
financed. When the financiers recognize tremendous potential in a
company the scheme also includes the takeover of those companies. Our
firm is committed to litigate this matter to a successful conclusion,
regardless of the number of parties ultimately named, the time
involved or the expenses we must incur or advance, for our clients."
Gary M. Riebschalger of the firm said, "The damage done to small
companies and the people who work for them is outrageous. These
arrogant, selfish financiers who use offshore devices and fraudulent
schemes to enrich themselves at the expense of the people must stop.
We will expose them and their 'fat cat' buddies to the bright light
Eagletech Communications, Inc. is traded on the (OTC Bulletin Board:
EATC - news). Eagletech owns two patents on technology which allows
its Unified Communications/Virtual PBX product to enhance the service
offering of the existing installed base of billions of dollars worth
of carrier telephone switches without carriers having to invest in
next- generation switching platforms. The Eagletech UC/VPBX with a
low barrier to entry, when coupled with a smart-build strategy, and
utilizing next-gen MPLS broadband technology will permit future
product offerings such as pure-play ASP services, and strategic
partnering in both voice services and data services. For more
information visit www.eagletech1.com for a test drive.
This press release contains forward-looking statements. The
words "estimate", "possible" and "seeking" and similar expressions
identify forward-looking statements, which speak only as to the date
of the statement was made. The Company undertakes no obligation to
publicly update or revise any forward- looking statements, whether
because of new information, future events, or otherwise. Forward-
looking statements are inherently subject to risks and uncertainties,
some of which cannot be predicted, or quantified. Future events and
actual results could differ materially from those set forth
in,contemplated by, or underlying the forward-looking statements. The
risks and uncertainties to which forward-looking statements are
subject include, but are not limited to, the effect of government
regulation, competition and other material risks.