January 7, 2014: Source Gold Corp. (
SRGL) is back in Pump & Dump form, after a 14 month hiatus from its previous fleecing of the public. This is the 5th campaign in the last 2 1/2 years.
Not much has changed here, operations wise. The company still does nothing, as is evidenced by its recently filed
Form 10-K, for the year ending July 31, 2013 and it's latest financials,
Form 10-Q for the quarter ending October 31, 2013. Neither filing shows any significant exploration expenditures, in spite of several promising press releases issued in 2012, like
this one,
this one,
this one and
this one. It should come as no surprise that each of these press releases coincided with promotional newsletters that appeared in the Inboxes of obliging penny stock players. And of course, not one of the press releases was worth spit.
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| Dhugald Pinchin |
What we do see in the filings is the accumulation of a lot of debt and creation of oodles of new stock. In fact, the number of shares outstanding has doubled in the last quarter alone to almost 135 million.
The debt creation is disturbing, aside from the fact that we can't reconcile it. In 2013 alone, we see $95,000 in Promissory Notes issued to recently appointed,
SRGL President, Dhugald Pinchin, $99,978.26 to Syndication Capital, LLC and $27,500 to an unknown party, for a total of $222,478.26. Here is an excerpt from of one of the notes to Syndication Capital, LLC:
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| Jody Pinchin |
Notice how the note identifies that Syndication Capital, LLC is a Nevada Corporation. The problem is that there is no such entity registered with the Nevada Secretary of State's office. In fact, after extensive research, we did come up with a Syndication Capital, LLC registered in Pennsylvania. A call to the Department of State revealed that the company has a listed address in Del Mar, California, the same city in which
SRGL is located, and that the founding member of Syndication Capital, LLC is Jody Pinchin, sister-in-law of
SRGL President, Dhugald Pinchin. Jody is known as a professional photographer in Del Mar.
The required disclosures about a non-arms length agreement with Syndication Capital is not provided, nor can we find the required Form 4 disclosures regarding
SRGL holdings by the Pinchins. Effectively, what we have here, is a set up to gut the Pinchins' own company by converting debt and selling stock, which would be a violation of insider "dribble out" requirements.
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| Tim Pinchin |
The Pinchins' connections to penny stock schemes schemes run deep. Relationships have been established between Syndication Capital, LLC and multiple Pump & Dump subjects,
Force Minerals Corp. (
FORC) and
Grid Petroleum Corp. (
GRPR). Brother, Tim Pinchin, is a long time schemer, who has been cited several times, including by
the SEC and the
British Columbia Securities Commission, both of whom have barred Tim from participating in public companies. It seems likely that Tim Pinchin, Jody's husband, is working together with
former SRGL President, Jon Fullenkamp, and they are really pulling the strings on the scheme. Click
here to view the house that Tim and Jody share, courtesy of the ill-gotten booty gained from Tim's criminal activities. Back in the late 1990s, Tim and Jody ran some sort of an operation called
Shareholder Communications Group, LLC.
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| Jon Fullenkamp |
Tim Pinchin and Fullenkamp, both Del Mar area residents,
were partners-in-crime in the old Victory Energy Corp (
VYEY) fraud, where Fullenkamp was the President and Tim was his trusted adviser. Fullenkamp reportedly used
VYEY as his personal ATM, misappropriating funds from the company that he solicited from outside sources including current members of the Board. One reported incident has Fullenkamp paying hush money to his former wife, Candace, after he physically assaulted her during a Hawaiian vacation. That one cost the
VYEY coffers $10,000 a month.
After the
VYEY Board of Directors removed Fullenkamp as an officer and director, the company sued him (Midland County, Texas Case No. CV-47230O) and criminal associate, Jim Dial, for fraud, breach of fiduciary duty, and other claims, seeking to recover damages in excess of $10.0 million, plus punitive damages. Dial is
currently serving time for his part in the Grifco International (
GFCI) penny stock fraud. While a settlement agreement agreement resulted in the dismissal of Fullenkamp from the Victory Energy lawsuit, the funds lost to his schemes by the company and shareholders were gone forever.
With Tim Pinchin unable to visibly run the show and Jon Fullenkamp's dubious past likely to be a reason for his short term at the helm of
SRGL, it is not difficult to imagine that Dhugald and Jody Pinchin are risking any credibility that their names may still retain by continuing to be mixed up in the schemes of these boys.
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| Andrew Coldicutt |
That San Diego's attorney-of-choice to the Pump & Dump crowd, Andrew Colidcutt, is listed as legal counsel, shouldn't given anybody a warm fuzzy feeling either. Coldicutt comes from a long line of penny stock schemers. In a textbook example of the old adage, "the apple doesn't fall far from the tree", both of Andrew's parents, attorney's Thomas and Elizabeth Coldicutt, have been previously
cited by the SEC. Andrew's wife, attorney Abby Ertz has also done work for companies subjected to Pump & Dump schemes.
Those buying into the
SRGL Pump & Dump look to be waving goodbye to their money.
