Ongoing lies with GFET

elmoscuba · Guest

[note: due to spam feature on this site, I have truncated the websites referenced - simply cut and paste, then edit in your browser to remove extra spaces, add in the w w w's if you wish to view]

From the corporate web site: . gulfethanolcorp. com

"Gulf Ethanol delivers high-quality, cost-effective fuel-ethanol to
North American marketplaces." - FALSE

See company financials at . pinksheets. com - they have no sales, no
assets, no production facilities.

"Reducing customer cost and risk means utilizing the highest net-
energy-efficient processes; streamlining delivery methods by
exploiting water-going barges; and maintaining key relationships with
established suppliers and transportation companies." - FALSE.

Company has no water-going barges, has no business relationships with
established suppliers and transport companies.

"Gulf Ethanol Corp. guarantees a high quality product to its customers. All of our fuel-ethanol meets or exceeds ASTM designation D4806 specifications and our continued efforts aimed at quality
assurance include regular product testing in addition to world class
customer service and reliability." - FALSE

Complete fantasy - the company has no production facilities nor any
personnel to actually do the testing had they actually produced
ethanol. NOTE: ASTM D4806 is the incorrect designtion for E-85 fuels that GFET refers to. The correct standard is ASTM D5798

. gulfethanolcorp. com/gulf_ethanol_corporation. htm

"Our home office is in Houston, Texas where we maintain a state of the
art facility in support of our sales, marketing and logistics activities. Here we provide ethanol users with a reliable stream of supply at the greatest economic advantage, while responding attentively to our customers' demand schedules and logistics requirements." - FALSE.

The small office suite on Blalock Road has none of the above.

"Gulf Ethanol Corp. was founded by a team of professionals with a
proven track record of success. Our team brings to the ethanol
industry talents acquired through a long history of experience in the
petroleum industry, trading and exchange industries, and wholesale
marketing and international trade." - MOSTLY FALSE

Ex-employee, Mark Schillar was reportedly a CPA who had previously
worked in the oil & gas industry. The rest of the above is complete
fantasy.

"Our strong emphasis on customer service and attention to detail
guarantees Gulf Ethanol its place among the top US ethanol marketing
companies" - FALSE

The company has no employees, nor will they ever find themselves among the top, middle, or even bottom of the ethanol marketing business.

"We primarily market sugarcane-based ethanol from locally owned
refining plants in nations of the CAFTA and CBI trade initiatives. Our
efforts are simultaneously working to fulfill the growing US ethanol
demand, which has not yet been fully met by domestic supply, and
helping to support the economies of developing countries through our
contracts with locally owned and operated facilities in CAFTA and CBI
countries." - FALSE

Company financials say otherwise. It has never happened. The Company
has no contracts.

. gulfethanolcorp. com/gulf_ethanol_environment. htm
"Gulf Ethanol primarily sources ethanol from sugary crops, such as
sugarcane. Many recent studies have noted the high net-energy output
generated from sugary crops such as sugarcane and sugar beets over
other production methods." - FALSE.

The company has no production facilities.

. gulfethanolcorp. com/gulf_ethanol_markets. htm
"Gulf Ethanol's energy-marketing team has a combined 80 years of
experience in the petroleum industry, international logistics and
trade" - MAYBE FALSE

Only if you account for Jack Uselton's time with MTEI:
. sec. gov/litigation/litreleases/lr17787. htm

http://www. gulfethanolcorp. com/GFET_Analyst_Report_090707. pdf
"Chet Gutowsky - Independent Chartered Financial Analyst favors GFET
outlook" - FALSE.

Chet is an employee of John Gilchrist's Southfield Energy, a sister
company to GFET officed in the same office suite on Blalock Road. Mr.
Gilchrist is hardly independent to the share price of GFET as his
company, Hepplewhite, was issued 2 million shares!
. southfieldenergy. com/our_team. html

. gulfethanolcorp. com/gulf_ethanol_careers. htm
"Gulf Ethanol, Corp. is an aggressive international ethanol marketing
and distribution company." - FALSE

The company has done none of the above by its own admission of being a
"developmental" company in its financial filings.

Press Releases for deals that never happened:

East Texas Plant - China, Texas: NEVER HAPPENED
. accessmylibrary. com/coms2/summary_0286-32508493_ITM

LOI to purchase GALCO Plant: NEVER HAPPENED

. gulfethanolcorp. com/gulf_ethanol_press. htm
Trinidad Business relationships: NEVER HAPPENED

. gulfethanolinc. com/gulf_ethanol_press. htm
Gulf Ethanol expands into Brazil: NEVER HAPPENED

. accessmylibrary. com/coms2/summary_0286-31299679_ITM
Gulf Ethanol explores Uruguay: NEVER HAPPENED

Company engages DM Energy....well, this is actually true - DM Energy
is David Mordekhay - just not sure what actually they engaged him to
do.

. accessmylibrary. com/coms2/summary_0286-32808946_ITM
GFET announces plans to develop other alternative energy plans - NEVER
HAPPENED

. accessmylibrary. com/coms2/summary_0286-25711248_ITM
GFET announces imminent deal with Poland - NEVER HAPPENED

. accessmylibrary. com/coms2/summary_0286-24602593_ITM
Gulf Ethanol Corporation Negotiates Marketing Agreement with a Leading
American Ethanol Provider - NEVER HAPPENED

. accessmylibrary. com/coms2/summary_0286-17445908_ITM
Gulf Ethanol Corporation Expands South American Business Markets -
NEVER HAPPENED

One would get the impression from GFET's web site links (see below)
that they actually own/operate ethanol facilities (see photos in
links below):
. gulfethanolcorp. com/gulf_ethanol_corporation. htm
. gulfethanolcorp. com/gulf_ethanol_investors. htm

However, these photos are deceptive, and obviously none of these are
actual GFET's facilities - here is the real location of a few:

Leo Foundation: Wexport (Dublin) Plant - Ethanol Tank Farm (page 12
photo)
. cleanerproduction. ie/results/Companies/Wexport%20CGPP%202004-29. PDF

No credit given to the Ford Motor Company:
. eere. energy. gov/news/news_detail.cfm?news_id=9695

High Plains Corporation, York, Nebraska - ethanol plant:
. calepa. ca. gov/PressRoom/Releases/2001/C0106. htm

Michael Hall · Guest

I'm the Hotstocked.com renewable energy writer. That's a lot of information above. I don't have the ability to verify all of it, but I'm pleased that mentioned one of the points listed above in the hotstocked article, "Gulf Ethanol Stock (GFET) Sinks" - There I pointed to the discrepency between their website, which says:

"Gulf Ethanol delivers high-quality, cost-effective fuel-ethanol to North American marketplaces."

And their accounting, which says:

"We do not currently produce any ethanol."

And the accounting also says that they had ZERO sales.

It's not an issue of timing, because the website said that even BEFORE the end date of the accounting.

Cory Kammerdiener · Guest

They just released the statement which was audited. Looks like they are still trying to make something out of this company.

elmoscuba@yahoo.com · Guest

Cory...well... not exactly....the only thing "they are making of this company" is creating a bloat load of shares to themselves...check this out:

GFET Financials out - http://www.pinksheets.com/otciq/ajax/showFinancialReportById?id=14317

A few highlights for ya:

Total Assets = $13,140

Total Liabilities = $279,839

Working Capital Deficit = $266,699

G&A expenses = $4,154,833 (OMG!!! How is this possible with no
employees & no operations?!?!)

Stocked Based Compensation = $3,899,430 (JT and William must be SO
happy!! UGGGH!!)

20 Million Shares issued to 10 accredited investors for an
unbelievable bargain of receiving only $2,000 in cash (YIKES!!!
W.T.F.!!) plus options on another 6 million offered to two investors
which were apparently exercised and the company received a whopping
$600 (OMG!!!! what a complete rip off!!!). What is worse is the list
of those 10 "accredited investors" are 100% insiders & friends:
2,000,000 shares to Cloud Management (JT Cloud Company!)
2,000,000 shares National Health Alliance, Inc. (William Carmichael
Company!)
2,000,000 shares to Oxford Funding Corp. (JT and Carmichael Company!)
2,000,000 shares to Galleria Securities Corp. (JT's Company!)
2,000,000 shares to The Internet Business Factory, Inc. (a John
Gilchrist Company!)
2,000,000 shares to Hepplewhite Corporation (a Gilchrist and
Carmichael Company!)
2,000,000 shares to Tejas Capital, Inc. (Jack Uselton/William
Carmichael related Company!)
2,000,000 shares to Accelerator Partners, Inc. (Darrel Uselton
Company!)
2,000,000 to Valores Fund, L.P. (Uselton/Marc Schillar Company!)
2,000,000 to Brazos Capital, Inc (Uselton Company!)

Regarding the 2 investors who got 6 million shares, we know at least 2
million went to Oxford funding.

The deal with Meridian Biorefining involved giving them $50,000 in
cash on Dec. 11th. The deal fell apart and was officially dissolved on
Jan. 14th. - how convenient as the company was still touting the deal
the same day with their issuance of a press release bragging about the
technology!: http://www.reuters.com/article/pressRelease/idUS140428+14-Jan-2008+BW20080114

brucerobbins · Guest

I can only hope some of this pseudo-bookkeeping comes to light after I reported to them that these crooks ripped me off.
Hopefully they follow up on their investigation. I think if more people complained directly to the SEC they may take more notice.
Thanks for your due diligence. Great job of investigation.

elmoscuba@yahoo.com · Guest

Noticeably absent from the financials of their sister company, Oxford Funding (OXFD) is any mention of their ownership and/or revenue recognized for the millions of shares in GFET, TMDI and other related companies.

condor1016 · Guest

I read through all of their financials, it doesn't appear to me that they are trying to hide anything. They very clearly state that they are borrowing money from stocks to pay for the deficit. If you actually go in and read all the details of the financials, as opposed to the summary highlight given previously it may make better sense. But that's just me. I'm no accountant or anything.

elmoscuba · Guest

What the financials show is that in addition to 20 Million shares issued at par value to 10 entities (controlled primarily by Jack and Darrel Uselton, Jonathan Gilchrist, and JT Cloud/Carmicahel). In other words, the company only received $2k for these 20 million shares according to the financials!!!

They issued an additional 6 million options for more shares for roughly $3.9 million in additional paid in capital to two accredited investors (believed to be either Gilchrist, Uselton, Carmichael, or Cloud) at roughly $0.65/share (this was in line with the then current market value of $0.70). These company insiders made a nice windfall of roughly 456% as the stock skyrocketed in the ensuing 5 months, conspicuously pumped by Chet Gutowski's independent analyst report, and numerous press releases put out by Mordekhay, Uselton, Cloud, and Carmichael touting imminent deals that to no one's surprise, in hindsight, never happened.

Unfortuneately for the Company's shareholders, the capital received for the 6 million shares was the entire amount was squandered away, racking up $4.2 million in expenses, primarily in 10 months worth of G&A. A good question for the company is what services did the company receive for this G&A, since they only had about 4 employees for this time period ($1 million each for 10 months??!). The company has no assets to show for that time period.

Currently, the company has roughly $56k in assets for another round of financing completed through another share offering as well as loans to company insiders to purchase the pre-processing unit. So to date, we have 41 million shares issued for only $56k in assets, and an accumulated working capital deficit of $468k. Not exactly prudent money management in my opinion, but am in agreement with you that they are not exactly hiding their incapabilities either....

....Except....the company has issued yet another 5 million shares to an accredited shareholder (believed to be either Gilchrist or Cloud) - the financials do not indicate what value these were issued at, but presummed to yet again be issued at par value to cover more "G&A" expenses....