Brad Rinehart discusses Universal Express, Inc.

Who is Brian William Conklin & EuroCapital BanCorp and what are they up to with USXP?

2009-10-31T18:04:00.000-07:00

On October 21st, 2009 a gentleman by the name of Brian William Conklin made a post on Investorshub.com (click here to read the post) stating he is working with Richard Altomare and EuroCapital BanCorp to raise USXP from the ashes. He asks people to contact him at the following email address if they are interested in resurrecting their investment in USXP: brian_conklin2002@yahoo.com.

I wonder if Bryan got that Yahoo! address last month and threw 2002 behind his name to fool people into thinking he's been around awhile. Real high rollers these guys.

Nothing like trusting people with your money who use Yahoo! email addresses and look for investors on discussion forums. Richard Altomare must of told them how gullible USXP investors are.Can you spell N-I-G-E-R-I-A?

Can you believe it? I guess it is a given that someone would come along sooner or later trying to find a way to profit off the poor saps that fell for Altomare's original scam. But Altomare himself? Can you believe how full of himself this scam artist is? I guess it is true that criminals often return to the scene of the crime and my guess is many of his old investors will too. Is it going to be with the lure "Just give me some more money and I'll get your old money back"?

Not a whole lot to be found on EuroCapital BanCorp. I found some of their press releases on web sites that publish stuff like that for free. EuroCapital's main web site is down because the domain name was not renewed. A brochure on the company can be found here and here is a video of Steve Bryant, president of EuroCapital, touting his firm. You don't need to watch more then a few seconds of the video to get the idea of what is going on. In addition, a company by the name of Atlantic Bancorporation and Atlantic Financial Holding occupies the same address in New Zealand. Atlantic has an address also in Panama and advertises off-shore banking. Another company using the same address is Atlantic Savings and Loan (you can learn more about Atlantic here).

One more thing you can't miss here is the fax number being used by Steve Bryant's firm which can be found on their contact page here: http://marketstrategiescorp.com/994/index.html (the address you see is a mail drop, one which a not so savory guy is also using). Click on the following link to see complaints people have about recorded and live phone calls coming from the line they use now as their fax number: http://800notes.com/Phone.aspx/1-800-501-6340

Ironic isn't it that Altomare (the king of pump-n-dump) is now promoting a new connection he has with off-shore yahoo's after blaming his downfall on off-shore shorts? No surpise, Altomare's greed seems to know no boundaries. The real questions is: Is this where Altomare stashed his haul from USXP? Has Altomare done business with these guys before? I guess time will tell because one thing is for sure with Richard Altomare aka Commander Fluffy, he will slip up.

Did Altomare Avoid Paying Sales Tax on a $485,000 Diamond?

2008-02-10T05:48:00.001-08:00

If there is one person that simply can't stay out of trouble it is Richard Altomare, the notorious former CEO of Universal Express, Inc. (USXP.PK).

Not long after the SEC seized his company and appointed a receiver (click here to read about the case) it was discovered that $558,900 had been wired from the company bank account to Les Bijoux, a retail jeweler located in Boca Raton, FL. The money was used by Altomare to purchase various pieces of jewelry. Later it was learned that Altomare had taken the jewelry purchased at Les Bijoux and sold it to The Estate Department, Inc., a second hand jewelry dealer, where Altomare obtained $500,000 in cash for the jewelry. All of this was done while Altomare was failing to make court ordered payments on a judgment obtained by the SEC.

After reading the above you might say "stick a fork in Altomare, he's done". Probably so but unfortunately for Altomare he has a following in a discussion group that likes their meat very well done.

Click on the thumbnail of the receipt they found in the court filings. Notice where it says "Out-of-State sale, exempt from sales tax" and then look at the addresses given for both the buyer and the seller. How is it they can claim the item was exempt from Florida sales tax when it's obvious the sale was in State?

You can bet the farm Altomare's detractors will make sure that question gets answered.

Information regarding the laws and regulations governing the collection of the sales tax in Florida can be found in the following links:

Annual Resale Certificate for Sales Tax

Internet and out-of-state purchases

Methods for Documenting Sales for Resale

Contact information:

Florida Department of Revenue
104 Carlton Building
5050 W Tennessee St
Tallahassee, FL 32399-0100
EMailDOR@dor.state.fl

Former USXP Employee Claims She was Made to Work Overtime Without Compensation

2008-02-09T07:21:00.000-08:00

Richard Altomare & USXP sued for back wages. I recently discovered a lawsuit that was filed in United States District Court, Southern District of Florida (Moulton v. Universal Express,Inc. et al) against Universal Express, Inc. (USXP.PK) for back wages allegedly owed a former employee. The suit also names Richard Altomare, the former CEO (also known as "Commander Fluffy" in investor discussion forums) as a defendant.

What comes next is of no surprise to anyone following the saga of Altomare's penny stock scam-a-thon: the plaintiff alleges she was made to work overtime without compensation.

Previously, we learned from documents filed by the court appointed receiver that USXP employees charged tens of thousands of dollars in company expenses on their personal credit cards in an effort to keep the company afloat, charges Altomare never reimbursed.

Where is Richard Altomare?

Last month the attorney for the plaintiff in the case for back wages submitted a motion for a default judgment which was apparently denied by the court for lack of service on one or all of the defendants. Maybe they can catch the defendants in Florida now.

Altomare was recently in New York answering questions about his finances in respect to the $21.9 million judgment the S.E.C. obtained against them. Had Altomare not shown up for that hearing judge Lynch, in no uncertain terms, assured Altomare he would go to jail. The Judge & the S.E.C. would like to know where all the money went.

As Gary Weiss said in another article published on 2-8-08, it's: "Universal Express, Again and Again and Again".

Let them eat cake?

While Richard Altomare and his wife Barbara were living it up, their employees, shareholders and vendors were being told Universal Express was the victim of an imaginary offshore shorting scheme our government helped enable. Altomare even went so far as to take out a full page ad in the New York Times and publish a press release that said his firm has "Declared War on Naked Shorts".

Yet take a look at where they were living: here is a $1,195,000, 4396 sq ft 4 bedroom home they are trying to sell "furnished": http://www.palmbeachflorida.com/mls_listings/R2845377

The asking price on the other home they have listed with MLS is $3,900,000: http://www.joanirichter.com/idx/residential/R2854757/details.html

Is Altomare Going to be Moving Out of Dodge?

While his employees were minding the store it looks like Altomare was busy taking some mortgages out on his homes before the S.E.C.'s hammer came down hard on him: http://tinyurl.com/26rkmu http://tinyurl.com/24ndp8 http://tinyurl.com/394xk7 & http://tinyurl.com/2ht6yk

Although the S.E.C. has obtained a judgment against Altomare and his scam company has been seized it appears USXP continues to be the gift that keeps on giving, if you are Richard Altomare.

Brad Rinehart can be reached at brad.rinehart@yahoo.com

Richard Altomare Testifies in Court

2008-02-05T17:03:00.001-08:00

I'm Flat Broke Your Honor

After two days of testimony, Richard Altomare, the notorious former CEO of Universal Express, Inc. (USXP.PK), has once again dodged a bullet in court. According to what appear to be eyewitness reports posted in a discussion forum called Raging Bull Altomare finally complied with the court's order to take the stand. Previously, Judge Lynch had warned Altomare that if he didn't come prepared to discuss his assets he had better bring a toothbrush. What came from his testimony can be found in bits-n-pieces on the Raging Bull forum from users named "ct_outdoorsman" and "xrayviscion". The point of Altomare's testimony is to show the judge why he has not made payments on fines handed down by the court.

It looks like Altomare is doing everything he can to convince the court he is flat broke, not a hard task for a penny stock scam artist to do, most are quite capable of spending beyond their means. Like the $300,000 in cash he spent on everyday bills, the payment on the Bentley (something no penny stock CEO should be without), another $600,000 spent renovating his $4,000,000 condo, $98,000 or so spent on flat screen TV's and a stereo system, - you know, all the normal stuff but he did charge a few things, like when he wined and dined "the contacts he needs to maintain" (future pen pals?). Then there is the $150,000 he gave to his attorney but he's not sure what it was for.

The Touts Come Out and About

Seeing this as a victory of sorts, the fact that Altomare is not in jail, the touts were quick to jump on the message boards and pump the stock they so desperately want to dump. thinktank7777, a poster on Raging Bull, writes "NOW MIGHT BE A GOOD TIME TO BUY USXP STOCK". Never mind the fact the SEC has seized the company, removed Altomare, and begun the process of liquidating the company. thinktank7777 writes with desperation and can often be found rambling on and on about all the bizarre reasons he thinks people should hang on to their shares of stock in USXP.

Not to be outdone, there is a self-employed photographer using the alias mekay who spends his days attacking without remorse anyone that has anything adverse to say. mekay's efforts to squeeze something out of this horrible mistake he thought was an investment probably crossed the line when he started trying to convince people he has inside information.

In another forum... one of our favorite stock touting scamsters, Doogrof, has returned with a piece warning people that " Universal Express will rise again and the SEC and its minions will pay for it". Your's truly believes the only thing Altomare will rise to in the future is the sound of the prison dinner bell.

This Doesn't Look Good on My Resume your Honor

It has been reported that at one point during his testimony Richard Altomare stated that his effort to find a job has been hampered by all of the publicity surrounding this case. No surprise here. How many companies are looking for a former CEO nicknamed "Commander Fluffy" and "Altofraud" that has sold billions of shares illegally into the market while absconding with millions of dollars? Maybe Altomare could be a real catch if you need a guy that can run a company for 15 years without ever making a profit, and do it while living like a king. Problem is, if you hire him now it's quite probable he will have to run your company from a jail cell.

The Threats Continue

ct_outdoorsman, the user posting eyewitness accounts of the court hearings on Raging Bull, was recently threatened:

"Due to some recent threats by a yahoo board member, my hearing notes will only be available via email. I will mail them to ezspence and he can disseminate only to those he deems appropriate, not the kool-aid gang. Notes should be ready tonight, if not enjoy them with morning coffee."

Another user sent me a copy of a threat they received regarding this blog:

Sent By: virginian To: xxxxxxx Date:1/22/2008 2:37:11 PM

That was a Fucking bullshit blog. DO NOT FUCKING POST IT AGAIN!!!!!!!!I will deal with that asswipe!!!!!!!!

"It's against my principles to kill anything, unless I absolutely have to"

virginian can be found on Investor's Hub, I included virginian in a piece I wrote back in January about the touts on that forum. Maybe virginian's signature line, as seen in the above threat, tells you something about the man. This is the person that was moderating the USXP forum on Investor's Hub, believe it or not.

USXP: THE PENNY STOCK SCAM THAT WON'T DIE

2008-01-25T08:59:00.000-08:00

The case of Universal Express and their die-hard message board touts

This blog was last updated on 1/25/08 and is maintained by Brad Rinehart. Click here to leave a comment. This article is about Microcap Stock Fraud.

Universal Express, Inc. (OTCBB: USXP) is a public company trading at around $ 0.0001 per share that was controlled and operated by Chairman and CEO, Richard A Altomare. To make a long story short the SEC filed suit against Universal, a company with no profitable operations and millions of dollars in debt, in 2004, but the company continued funding itself by illegally issuing billions of unregistered shares. During this time Altomare bilked the company out of hundreds of thousands of dollars in salary, bonuses, private jet charters and jewelry purchased with company funds.

On August 31, 2007, Federal District Judge Gerard E. Lynch of the Southern District of New York, appointed a Receiver, Jane W. Moscowitz, over the operations of Universal Express, Inc.

Judge Lynch has also warned former Universal Express CEO Richard Altomare that if he doesn't show whether he has assets to start paying a judgment, he had better bring his toothbrush to court next time.

The Threats Begin

An excerpt from Jane W. Moscowitz's account of her first day on the job as the court appointed receiver gives you an idea of what she was walking into:

I first visited the Boca Raton premises on Friday, September 7,2007. Because Mr. Altomare had told a local newspaper reporter that there would be a "corporate Waco" if anyone took his business from him, I engaged a former federal agent to accompany me to the premises. After we entered and determined that there was no danger, the ex-agent photographed the premises and interviewed some of the employees.

Here is an excerpt from one of the emails Moscowitz received:

If you think for one second you can come barge into a company that is only trying to stay alive because of the ramped naked short selling and shut it down, think again. If you try to hide the truth behind this huge short position and how corrupt the SEC really is you are going to be hit with a … load of lawsuits, and if justice doesn’t prevail the good old American way, then I will make it my personal duty to enforce the justice and I along with others will come and beat your … to a bloody pulp . . .

Moscowitz's reports to the court can be read in their entirety here: http://www.usxp.com/ The SEC complaint against Universal Express, Richard Altomare and others can be found here: http://sec.gov/litigation/complaints/comp18636.htm

Meet the USXP Trailer Park Touts

From a USXP discussion forum I found here .

The moderator of the forum, "Virginian" (an alias) and an assistant using another alias "Doogrof", apparently want to convince shareholders and potential investors that USXP is still a good trade and that the company is not yet cooked. One begins to wonder what they are smoking because the receiver has shut down company operations, vacated the office USXP was using and is in the process of selling off all of the assets of the company. If that's not enough they make every effort to convince people that the SEC might be held accountable some day for harassing what they call "a viable ongoing operation". An ongoing criminal operation would be a more accurate description. Check out this comical post from InvestorsHub.

"Virginian" and "Doogrof" troll their discussion forum 7 days a week looking for any post that might warrant a quick response or deletion (you'll come across a lot of posts that have been deleted). Both admit to owning millions of shares and "Virginian" seems quite proud of the fact that she has made over $100,000 trading this scam with buyers who had no clue what Altomare was up to, many probably drawn in by his misleading press releases. "Doogrof" makes it clear he's there to pump and dump his stock but wants you to believe he is a man of integrity because he's announced what price he will not sell under.

In this post "Virginian" calls Richard Altomare a "Pioneer" and goes on and on, as he usually does everyday, about the so-called naked short position (the same bullshit story Altomare used as the reason his stock price kept falling).

Here is what the judge had to say about Virginian's "Pioneer" hero:

As CEO of a publicly held company, Altomare occupied and continues to occupy a position of significant power, which he abused by repeatedly and brazenly committing fraud and flouting investor-protecting registration requirements. He has not only opposed the SEC’s request for summary judgment without pointing to a single piece of evidence sufficient to create a genuine issue as to any material fact of his liability, but he has also had the chutzpah on an overwhelming unfavorable record to seek summary judgment himself. The defendant’s professional position and apparent refusal to acknowledge the types of conduct that violate securities laws raise serious concerns that he will engage in such misconduct in the future. For these reasons, the Court, applying the multi-factor inquiry typically employed on such requests, Patel, 61 F.3d at 141, concludes that Altomare should be barred from serving as a company officer or director within the meaning of 15 U.S.C. § 78u(d)(2).

After reading some of their daily babble one has to wonder just how involved Virginian and Doogrof are in this whole mess. Are they paid touts? Have they received stock at discount? In my opinion, they are just a couple of bagholders that were truly fooled into thinking Richard Altomare and his company were the real deal. No doubt they now find themselves in a mess either with the losses they've incurred or because they recommended this stock to everyone in their trailer park.

New 1-24-08: It looks like "Virginian" has either removed himself as moderator of the USXP board on InvestorsHub or was removed by the administrator. Hard to tell but it came a day after someone posted a link to this blog in that forum. It also looks like Virginian was busy deleting some of his posts before vacating the position.

Universal Express Discussion Forums

Raging Bull - over 500,000 messages have been posted here

InvestorsHub - currently a very active group. Over 14,000 posts

Silicon Investor - a user named "scion" is keeping everyone up to date on the court filings

Miscellaneous and less active USXP forums:
Yahoo! Investor Village Equity Group Board Reader

Watch Richard Altomare in action

Here you can see the King of Penny Stock Cons promoting a racing team he sponsored with illegal proceeds from the sale of stock that was not registered with the SEC. I am sure the mayor of Boca Raton regrets getting out of bed for this event (he gives a short speech in this video).

From our "Live Scammer Feed".

Barbara Altomare's Deposition

Another great piece of entertainment is the deposition conducted on Richard Altomare's wife, Barbara Altomare. Apparently Barbara knows that she was an employee at Universal Express but she's not sure what her exact position was. However, she does recall getting a $900,000 advance on her salary. THIS IS A MUST READ: http://www.proseresource.com/ma1.pdf

If you have information that could aid the SEC or the DOJ in their investigation into Universal Express, Inc., Richard Altomare or any of their cohorts please contact one of the following:

Robert M. Fusfeld
Attorney for Plaintiff
Securities and Exchange Commission, Central Regional Office
1801 California Street, Suite 1500
Denver, Colorado 80202
303.844.1080
303.844.1068 (facsimile)

Robert B. Blackburn (RB 1545)
Local Counsel for Plaintiff
Securities and Exchange Commission, Northeast Regional Office
233 Broadway, 11th Floor
New York, NY 10279
646.428.1610
646.428.1979 (facsimile)

If you believe a message has been intentionally posted in a discussion forum in violation of securities laws you should contact the Securities and Exchange Commission (SEC). The SEC's e-mail address for complaints is enforcement@sec.gov. Their mailing address is: SEC Division of Enforcement Complaint Center Mail Stop 7-10 450 Fifth St., NW Washington, D.C. 20549 1-800-SEC-0330 (toll free) 202-942-9570

More to come soon... Brad Rinehart

USXP Post deleted by Virginian

2008-01-20T19:31:00.000-08:00

The following paragraph, written by me on the front page, was founded on material contained in a post located here (which has since been deleted by the author "Virginian"):

"Both admit to owning millions of shares and "Virginian" seems quite proud of the fact that she has made over $100,000 trading this scam with buyers who had no clue what Altomare was up to, many probably drawn in by his misleading press releases."

Because I anticipated the evidence I reference here will be deleted I saved a copy of that post on my local machine (click on the image below to see it clearly):