Here's the latest in a long line of scams that have the scamster John Myers at the centre of the promo. Allied American Steel (AAST.ob) is the name and the modus operandi being used to pump this worthless hulk of crap is uncannily similar to the way John Myers pumped American Power (AMPW.ob) back in January. Then it was coal that Rio Tinto was going to buy, now with AAST.ob it's iron ore that BHP is going to buy.
It's a complete and utter scam, ladies and gentlemen, and as AAST.ob is currently trading at $1.70 a share, there's an awful lot of room for shorters to move in and make a pile on the back of any idiots that decide to buy into this bullshit. I'd catalog it all, but fortunately Len Boselovic of Pittsburg's Post-Gazette has already done a great job of exposing the main points of the scam in his report out yesterday Sunday. Entitled "Reports of takeovers may be greatly exaggerated", it's a very good report and recommended reading. Go now.
However, this morning we had a further development at AAST.ob that's worthy of special note, because Allied American Steel has decided to employ a corrupt and criminal geologist as its expert in all matters mineral. Here's the link to this morning's NR that talks in glowing terms about the appointment of Richard Tschauder as Senior Geologist and here's a few excerpts from the purple prose:
Allied American Steel Corp is pleased to announce the appointment of Senior Geologist, Richard Tschauder, to the Company's management team.
Mr. Tschauder is a senior geologist with over thirty years of experience in the mineral exploration and mining industry. Since 1996, he has drawn on that experience while acting as an independent consultant, concentrating on the identification and exploration of mining projects....
For 15 years, Rick was chief geologist for Hecla Mining Company...
Rick has over 25 publications in mining and economic geology...
His technical and field work experience will prove vital to Allied American...
"Rick is the perfect addition to our management team at this point of our development," commented Jes Black, Chief Executive Officer & Chairman of Allied American....
All very nice I'm sure, but what AAST.ob misses out about Richard Tschauder is that he doesn't have 25 publications about geology, but at least 26. That's because there's this little publication on the dude that comes from class action and documents his deep involvement in a previous criminal scam. Here we go with the relevant passages, 7 and 8, of the full Class Action complaint linked here and your humble scribe highlights the moneylines:
7. Contrary to their pubic representations, the Atlas Defendants knew that the halloysite at the Dragon Mine was not of the quality represented. Prior to making these public representations, Atlas was aware of reputable reports regarding the quality of halloysite at the Dragon Mine, which reports noted significant impurities (including alunite and iron minerals) and contaminants in the Dragon Mine that would prevent the halloysite from being used in high-end production. To perpetrate fraud on its shareholders, Atlas retained Richard Tschauder to publish findings contrary to these reports. Mr. Tschauder’s findings were false and were tainted with conflicts as he was not independent and had a financial stake in providing misleading information concerning the Dragon Mine’s prospects.
8. While touting the quality and quantity of the halloysite purportedly in its possession based on the conflict-tainted findings of Tschauder, Atlas fraudulently represented to the market that it was already selling halloysite to customers and had bright prospects of selling even more halloysite. In a January 19, 2005 press release, Atlas first claimed to have sold halloysite to a customer, NaturalNano, Inc. This purported sale never occurred and Atlas’ public representations were the result of collusion between Atlas and NaturalNano. Specifically, for no valid business purpose other than NaturalNano’s cooperation in creating the appearance that NaturalNano was purchasing halloysite from Atlas, and for no consideration, Atlas issued warrants to NaturalNano to acquire 750,000 shares of Atlas stock at $0.40 a share. As of August 9, 2006, those warrants were sold for $562,500 yielding to NaturalNano stockholders net cash proceeds after legal fees of $506,250.00, at the expense of Atlas shareholders. Tschauder, who authored the false reports for Atlas, was a shareholder of NaturalNano.
In other words, professional scam runner, scumball and general piece of shit Richard Tschauder was hired by another scam runner, paid off with shares and then lied about the geological attributes of the deposit in order to push the share price up and cash in. That's the type of geologist this pump and dump scam run by another total shit bag called Jes Black, chairman of AAST.ob, thinks is "perfect" to employ, ladies and gentlemen readers of this humble corner of cyberspace. DYODD.