The Art of Being A Dober Dog

I'm sorry. But this is exactly

what I'm talking about. When you said "raised money,"
Mitchell Stein always said he had 100, 200, 500
million dollars. He may not have said "raised money."
He may have said "I will finance the company. We
don't need to raise money."




I was told that he contributed to

the company. I could tell you that it seemed like
some months was 20, $30,000, other months it was
$100,000, but it was never the millions that he
promised.


There were some months

that it was around 50,000 a month. There were then
extraordinary items sometimes that -- things that
Budimir needed and those guys, so sometimes it would
jump up to a hundred or so.




There was a strange arrangement with Legends
FinanciaBoldl, or Legends Advisers, or whatever their
entities may be involved there


And there was, I believe, some

funding done by Legends because Legends ended up with
some Recom stock.



............... because we were told we had a

lease with Legends and we were paying them with, I
believe, S-8 stock, and there was a very confusing
situation there, and I thought there was a conflict of
interest there and I think Legends ended up with a lot
of stock.




Well, along these same lines, there was a

loan of some kind that was given to Recom either by
Legends or Mitch Stein or both or maybe -- I always
thought Mitch Stein was Legends.



I assumed there were going to be

deficiencies because that's the way he does it.
That's what his tool, his weapon is, to make the stock
options very difficult to register, which in fact
makes them


There's a considerable amount of restricted
stock being registered, and sometimes I have no idea

what the name means or who it is. Sometimes it's a
religious organization or a university or some name
I've never heard. There's no -- I don't know where
all these people got 144 stock.



you state that you're

informed and believe and thereon allege that Mr. Stein
has manipulated or attempted to manipulate Recom stock
price by, among other things, point A, offering
promises or compensation to persons or companies in
order to induce such persons or companies to buy Recom
stock.



You state here that Mr. Stein ordered

or directed -- and directed Recom's officers and
members of its board of directors to buy and/or sell
Recom stock at particular times and in particular
amounts. Okay. What do you base that on?
A voice message from Mr. Stein and
instructions from Mr. Stein that the voice message
says essentially "I want you to buy 7,500 shares of
Recom at 31 minutes after the opening, and no excuses.
I'm going to be taking over as president. Tracy and I
have decided. And I don't like your strategies. And
I don't like your ideas. And you're to buy 7,500
shares of Recom stock at 31 minutes after the opening.
Call and confirm that you are. You will then file a
form 4, .................



"Directing persons or companies to buy and/or

sell Recom stock between such persons or companies
thereby artificially inflating the trading volume
while simultaneously keeping such shares off the free
market since those shares would merely be passing the
stock back and forth between the persons or companies
under Stein's control."


"Mitch made us buy stock today" or "I had to

be in the market buying today."


......... made phone calls to ..... -- when we see

his phone records, we'll see this -- many, many, many
times a week, sometimes 10, 15 times a week. And it
was usually early in the morning and he'd call and
he'd say "Watch this. ...... in there. Watch, it's
going to go up. It will be 2.40." I'd say "Geez,
what are you guys doing?" "Don't worry about it.
Everything's cool."



Okay. Have you seen any documents which

reflect that Mr. Stein was directing persons or
companies to buy Recom stock to artificial apply
inflate the trading volume?
Mr. Stein's very careful about not creating
documents, but he runs the entire company, and that's
obvious.



Okay. Has anybody ever told you that

Mr. Stein has directed persons or companies to buy
Recom stock shortly before the closing of the market
at higher prices in order to artificially paint the
tape and increase the stock price?
As I just said, that comes from his
history --


you state there that Mr. Stein induced

persons or companies to buy Recom stock by
disseminating fictitious or unrealistic positive
information about Recom as if such information were
inside information when, in fact, such information is
false in significant part and is disseminated solely
to induce such persons or companies to buy stock.
What's your basis for making that assertion?
Some of the news releases seemed unrealistic
to me and were overstated, which again is part of his
behavior, Mr. Stein's behavior.


Well, what did Mitchell Stein tell you about
Legends' involvement with Recom?
There's certain documents. It was a way --
I do believe Legends got stock from Recom, and since
Stein owned Legends, I always thought, hmm, there's a
way to cash some S-8 stock. Recom pays Legends,
Legends sells the stock, and Stein owns Legends;
therefore, he gets the money.

No comments:

Post a Comment