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Global 8 Environmental Technologies Inc GBLE



GREY:GBLE - Post by User

Comment by Tiktackon Mar 26, 2010 11:02pm
450 Views
Post# 16930828

RE: Silencing Rene #2

RE: Silencing Rene #2Unreasonable?

David Baines,Vancouver Sun
Published: Friday, November 03, 2006


B.C. chartered Wayne Hansen is very bullish onBurnaby-based Organic Recycling Technologies Inc. I'm bullish, too, butfor a different reason. I think people who buy this stock will almostcertainly get gored.

In May,Hansen talked up Organic Recycling in a paid interview with WallSt.net, aU.S. stock promotion service. He claimed the company has a "multitudeof technologies" for converting organic waste and sewage into useableproducts, such as fertilizer.

"I'moff to China this Sunday, the 7th [of May] and I fully expect to bringback contracts signed for the construction of a series of plants," hetold the interviewer.

"I suspectperhaps two months after that we will have confirmed financing in place.. . . The next milestone will be turning the sod for the first plant.

"Once that's done, we anticipateconstruction will take four to six months. We will have an operatingplant in China that will be used as a template for many more. InChongqing alone, there are 42 districts. Each district would like tohave a plant. That's 42 plants right there."

What a crock. The company doesn't have anywhere near theability to finance such an ambitious undertaking. As of June 30, 2005,it was insolvent. Total assets were only $543,590 -- all of it cash --against current liabilities of $3.9 million.

During the nine months ending June 30, 2005, the companyhadn't generated a cent of revenue, and it was burning cash at analarming rate. Cash expenses totalled $2.8 million US, and another$729,439 in expenses were satisfied by issuing stock, for a net loss of$2.9 million US.

For the past 16months, the company has not provided any financial statements. As aresult, trading in the company's shares has been relegated from the OTC Bulletin in the United States to the "pinksheets," a trading forum that is populated with useless stock deals.

Another reason I'm wary of Hansen isthat he is a stock offender. From 1997 to 1999, he served as chief financial of a private B.C. company calledSpecialized Surgical Services Inc., which planned to open a privatehospital in Coquitlam.

Duringthis period, the company raised $1.3 million from public investors onthe basis of offering documents that omitted several material facts,including the fact that the company had defaulted on its mortgagepayments and judgment had been entered against the property.

The company also filed forms withthe commission certifying it had raised the money from people whoqualified as "sophisticated investors." In fact, several of theseinvestors did not meet that definition.

The B.C. Securities Commission began an investigationand in May, 2002, Hansen settled the matter by admitting that, "withoutany fraudulent intent," he "authorized, permitted or acquiesced" inthese misrepresentations. He agreed not to serve as an officer ordirector or to conduct investor relations for any issuer in B.C. for thenext eight years. He also agreed not to trade stock for an identicalperiod.

Even if he didn't intendto defraud anybody, you have to wonder how a chartered accountant couldget tangled up in a mess like that. Hansen has been a CA for more than30 years and he is a former partner of BDO Dunwoody in Vancouver.

But the Institute of CharteredAccountants of B.C. didn't even refer the matter to a disciplinarytribunal. Instead, it employed a diversionary process whereby themembers go behind closed doors and negotiate a settlement that nobody istold about, but in no case involves a suspension or a fine in excess of$10,000.

Meanwhile, it is clearthat Hansen -- in apparent violation of his suspension -- has beennegotiating contracts for Organic Recycling and promoting the company.How can he get away with this?

Theanswer may be that Hansen lives out of province. When he signed hissettlement agreement with the commission, he was residing in England,which put him beyond the reach of B.C. regulators. Also, he isofficially listed as a consultant, which means that -- at leasttechnically -- he is not breaching the prohibition against serving as anofficer or director.

Anotherreason I don't trust Hansen is his prior involvement with Thermo TechTechnologies Inc., one of the most scurrilous promotions in VancouverStock Exchange history.

UnderLangley promoter Rene Branconnier, the company misrepresented itsaffairs, exaggerated its business prospects, associated withdisreputable people and companies, engaged in questionable accountingpractices, and lost millions of dollars of shareholders' money.Meanwhile, Branconnier paid himself and family members hundreds ofthousands of dollars per year in salaries, and reaped millions throughvarious private business deals with the company.
In1995, VSE officials squeezed Thermo Tech off the exchange and itmigrated to the OTC Bulletin Board. Despite the company's abysmal recordof corporate governance, Hansen joined as CFO in 1997 and served inthat position until 2000. During this period, cumulative lossesspiralled to $80.4 million.

InJuly 1999, the B.C. Securities Commission found that Thermo Tech hadpaid $11.5 million for a 50 per-cent interest in two Ontario transferand waste management facilities that were valued at only $5.9 million.It issued a cease-trade order until the company explained itself, but anexplanation was never provided. The cease-trade order has been partlylifted, but is still in effect for Branconnier and his associates,including Hansen.

By 2001, withthe heat on, Branconnier spun off another waste conversion companycalled Duro Enzyme Products Ltd., which eventually changed its name toEAPI Entertainment Inc., and finally Organic Recycling.

Branconnier does not serve as anofficer or director of Organic Recycling, but it is clear that he ispulling the strings. The company has featured many family members(including son Dean) and former associates (including Hansen). Don Dyer,who handled investor relations for Thermo Tech, is performing the samefunction at Organic Recycling.

Meanwhile,the casualties are mounting. Surrey resident Brian Syntak told me thisweek that, in late 2004 and early 2005, Dyer and Branconnier persuadedhim to lend $70,000 US to help finance Organic Recycling. Interest wouldbe paid at the rate of 2.5 per cent per month and principal wasrepayable upon demand.

But Syntakdidn't get paid a cent. Instead, Branconnier tried to persuade him toaccept shares of Organic Recycling, but he refused. He figures theshares, which are now trading on the pink sheets, are essentiallyworthless. I think that's a fair assessment.
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