It appears some have yet to learn from the mistakes of fraudster Barry Minkow. While Barry is preparing to head off for several years of federally-sponsored vacation time, all the while wondering how he will pay down his $583 million judgment won by Lennar earlier this year, a rookie “researcher,” Matt Wiechert, has for some reason decided to follow Barry’s playbook.
For those that may not be up to speed on Barry and his shenanigans, his most recent run-in with the law was prompted by his “… making false and misleading statements alleging wide-spread improprieties in Lennar Corporation’s financial reporting and business structure, and attacking the personal character of Lennar’s management.”
On August 2nd Wiechert’s Glaucus Research, a self-admitted short-selling outfit, published a report on L & L Energy, Inc. (NASDAQ: LLEN) laced with the same type of innuendo and material misrepresentations used by Minkow against Lennar (NYSE: LEN). Maybe someone should have pointed out the Department of Justice’s recent stance on these types of criminal actions:
“When false statements are disseminated to deceive the investing public, whether they’re designed to prop up a company or tear it down, the FBI will dedicate all available resources to bring disseminators of such falsehoods to justice.”
While attempting to provide proof of his allegations, Wiechert fills the pages of his report with apples-and-oranges comparisons, using outdated documents and false translations. Anyone with rudimentary Mandarin language skills will quickly find the egregious misrepresentations peddled by Wiechert.
This type of behavior should come as no surprise to anyone that does even a modest level of digging into Wiechert’s background. Shortly after leaving school, Wiechert started an online payday loan racket that appears to excel at taking advantage of the less fortunate.
The business in question is Icashdirect, Inc., of which Wiechert is President, Director, Chairman, Secretary and Treasurer. To obfuscate the swindle, Wiechert uses a d/b/a filed in Orange County, CA called MyQuickCashOnline. MyQuickCashOnline offers payday loans to those in need, but what his victims don’t realize, until it’s too late, is as soon as they submit their application for a loan he in turn auto-enrolls them into a $24.95 identity theft protection program – debiting their account on the spot for this unwanted and undisclosed service. There is no shortage of victim stories documenting this theft:
Bottom line, Wiechert is in over his head on LLEN. His attempt to manipulate the stock using sloppy research has already proven easy for LLEN to refute.
Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.