FW: Leps Dplex List
Hugh McGuinness
hmcguinness at ross.org
Mon Sep 11 15:28:57 EDT 2006
Mark Walker has indeed read this post and sent the following message to
me.
Hugh
Hugh McGuinness
The Ross School
18 Goodfriend Dr.
East Hampton, NY 11963
631-907-5229 (no messages)
631-697-2099 (cell)
-----Original Message-----
From: Mark Walker [mailto:xvermontrz at cox.net]
Sent: Monday, September 11, 2006 10:09 AM
To: Hugh McGuinness
Subject: RE: Leps Dplex List
Hugh,
This is a most bizarre post, and furthermore - I think whoever it came
from
confused me with somebody else.
I do remember some of the events described in the post. Of course, I
have
nothing to do with Oxford or anything else mentioned in the post.
Perhaps
they're talking about another Mark Walker, but that is unlikely,
especially
since they seem to be addressing the LEPS-L people (and I was quite
active
on the listserve back in the late 90's).
I haven't configured this email address to post there, otherwise I would
have made this response public. Feel free to forward it.
Mark.
-----Original Message-----
From: owner-leps-l at lists.yale.edu [mailto:owner-leps-l at lists.yale.edu]On
Behalf Of Hugh McGuinness
Sent: Monday, September 11, 2006 5:38 AM
To: jewguy at gmail.com; leps-l at lists.yale.edu
Subject: RE: Leps Dplex List
Does anybody on the list know the background of this post, or what the
heck it means? Anybody care to explain?
And aren't posters on the list supposed to sign their posts with name
and location?
Hugh
Hugh McGuinness
The Ross School
18 Goodfriend Dr.
East Hampton, NY 11963
631-907-5229 (no messages)
631-697-2099 (cell)
-----Original Message-----
From: owner-leps-l at lists.yale.edu [mailto:owner-leps-l at lists.yale.edu]
On Behalf Of jewguy at gmail.com
Sent: Sunday, September 10, 2006 10:11 PM
To: leps-l at lists.yale.edu
Subject: Leps Dplex List
Leps Dplex List
Email sent to: Leps Dplex List
IFBE Destroys Reputation of Mark Walker
I hope Mark Walker representing Oxford University enjoys the outcome
of IFBE negotiations with the State of Oregon. I believe it looks like
Mark Walker was the fool... and I hope the attorney that started NABA
is paying attention... I believe being a traitor is a high crime and
misdemeanor even for a New York attorney.
Can you hear him now?
May tens of thousands of butterflies be relesased throughout the
world....and may the ravens of england continue to scare the chickens
in the British Isle....
_____________________________________________________________________
Outcome of State of Oregon versus IFBE
_____________________________________________________________________
STATE OF OREGON
DEPARTMENT OF CONSUMER AND BUSINESS SERVICES
DIVISION OF FINANCE AND CORPORATE SECURITIES
ENFORCEMENT SECTION
BEFORE THE DIRECTOR OF THE DEPARTMENT
OF CONSUMER AND BUSINESS SERVICES
In the Matter of
HANS WAYNE SCHNAUBER, an individual, KATHY CHARLEE, an individual, and
HORACE T. JOHNSON, an individual, Respondents. S-05-0056
ORDER TO CEASE AND DESIST, ORDER ASSESSING CIVIL PENALTY AND CONSENT TO
ENTRY OF ORDER AGAINST HANS WAYNE SCHNAUBER
WHEREAS the Director of the State of Oregon, Department of Consumer and
Business Services ("the Director") has conducted an investigation of
certain business activities conducted by Hans Wayne Schnauber and has
concluded that he has violated provisions of the Oregon Securities Law,
ORS 59.005 to 59.451, and 59.991; and WHEREAS Hans Wayne Schnauber
wishes to resolve and settle this matter with the Director; NOW
THEREFORE, as evidenced by the authorized signatures subscribed on this
Order, Hans Wayne Schnauber hereby CONSENTS to entry of this Order to
Cease and Desist upon the Director's Findings of Fact and Conclusions
of Law as stated hereinafter.
FINDINGS OF FACT
The Director FINDS that:
1. International Federation of Butterfly Enthusiasts, Inc ("IFBE")
is a Washington corporation that incorporated on August 29, 1997. The
corporation's business license expired on August 31, 2000.
2. Hans Wayne Schnauber (hereinafter "Schnauber"), age 46, founder
of the IFBE, is an individual residing in the state of Washington.
3. Kathy Charlee ("Charlee"), age 51, is an individual residing in
Washington State.
4. Horace T. Johnson ("Johnson"), age 70, is an individual
residing in Portland, Oregon.
5. In or about July 1998, Schnauber retained the Portland Oregon
law firm of Dunn, Carney, Allen Higgins & Tongue to represent the IFBE
to insure that it operated in full legal compliance with all applicable
Federal and State law. On March 30, 1999, attorney Jon R. Summers
("Summers") of Dunn, Carney, Allen Higgins & Tongue, wrote a letter to
Schnauber and the IFBE through attorney and IFBE legal representative
Jay Fountain of Portland, Oregon. The letter was intended as "an update
regarding our investigation and assessment of the possible securities
law implications associated with the sale of the licensesby IFBE."
Summers correctly concluded that from early 1998 to March 30, 1999,
IFBE sold 2112 affiliate licenses at a cost of $495/affiliate license
to approximately 500 individuals and/or businesses, most of which were
located in Oregon or Washington. Licenses were sold for $495 per
affiliate license and license sales totaled approximately
$1,045,440.00. IFBE allowed persons visiting the company's primary
Internet website, IFBE.org, to access information about affiliate
licenses and to apply to purchase an affiliate license. The licenses,
which were classified by IFBE as "A", "B" and "C", entitled the
purchaser to receive a percentage share of the gross revenue received
through IFBE's marketing program, usually between three percent (3%)
and eighteen percent (18%).
A. Series A Affiliate Licenses: In his letter, Summers concluded
that approximately 214 Series A affiliate licenses were sold to 74
individuals, mostly Oregon and Washington residents, earning
approximately $105,930.00 for IFBE. For the license fee, the Series A
licensee received the right to open a website and utilize IFBE's web
portal (the "web wheel"), with the opportunity to share in three
percent (3%) of the gross revenue received from the IFBE affiliate
marketing program, and the right to an equal share of the monies
collected from advertising revenue based on the number of "Affiliates"
within the marketing program. Licensees within this group received most
of their money back based upon the licensee's right to earn commissions
within the marketing program, however, Summers could not make an
accurate estimate of the total amount paid.
B. Series B Affiliate Licenses: In his letter, Summers concluded
that approximately 398 Series B affiliate licenses were sold by IFBE to
148 licensees, primarily in Oregon and Washington, earning
approximately $197,000.00 for IFBE. Some of these licensees also
purchased Series A licenses. The Series B license was similar to the
Series A license, however, it did not refer to "joint venture" and it
allowed the licensee to share in eighteen percent of the gross revenue
from the IFBE affiliate marketing program. The exact dates of the sales
of the Series B licenses is not known, and Summers did not know the
extent to which revenue sharing monies were paid to licensees.
C. Series C Affiliate Licenses: In his letter, Summers concluded
that approximately 1,500 Series C affiliate licenses were sold to 310
licensees earning approximately $742,500 for IFBE. Some of the Series C
licensees also purchased Series A and/or Series B licenses. Summers was
not provided with a detailed list of licensees, however, Schnauber
informed Summers that the majority of licensees were from Oregon and
Washington. The Series C license was similar to the Series B license;
however, it allowed participants to share in .00012 percent of revenue
generated from the services sold over the IFBE network. As with the
other licenses, Summers stated he was unable to generate an exact list
of Series C licenses sold and he did not know the extent to which
revenue sharing monies were paid to licensees.
6. Summers also concluded that prior to March 30, 1999, IFBE sold
$695,000 of voting and nonvoting common stock to 29 individuals, 12 of
whom paid no monetary consideration. The majority of the purchasers
were from Oregon (15 purchasers), but sales were also made to
purchasers in Washington (11), New Jersey, Florida and Missouri.
7. In his letter, Summers noted that he did not receive all of the
documents requested from Schnauber and IFBE, but he concluded "that
additional documentation will not materially change our initial
conclusions." Summers opined that the licenses were a type of
investment contract and therefore were considered securities under
Oregon law. Summers noted that the licenses were not registered as
securities for sale in Oregon and that therefore those sales may be
unlawful. IFBE and Schnauber were cautioned not to "sell any securities
(stock or licenses of any kind) until the contingent liability of the
affiliate licensees' rescission rights are addressed and steps are
taken to comply with Oregon securities laws", which was complied with
by Schnauber.
8. In or about August 1998, Tom Souther ("Souther") of St. Helens,
Oregon purchased from Brian Richards of Scappoose, Oregon an IFBE
affiliate license in the amount of $495. He understood from Brian
Richards that his purchase was a passive investment and that he owned a
"license" issued by IFBE. He subsequently received approximately $60 in
sales commissions ("returns") by the end of 1999. It has yet to be
determined if Souther has received any additional returns on his
purchase of an IFBE affiliate license.
9. At least 193 Oregon residents purchased IFBE affiliate licenses
totaling as much as $417,780 in documented sales. A list of these
purchasers is attached to this Order as Exhibit A. Schnauber directly
or indirectly sold stock and licenses to Oregon residents or aided and
abetted in their sale without a broker-dealers license.
10. The IFBE stock and affiliate licenses sold by IFBE and
Schnauber were not registered with the Director for sale in Oregon.
11. Schnauber was not licensed by the Director to sell securities
in Oregon.
CONCLUSIONS OF LAW
The Director CONCLUDES that:
12. Schnauber directly or indirectly sold or aided and abetted in
the sale of unregistered securities in violation of ORS 59.055.
13. Schnauber directly or indirectly sold or aided and abetted in
the unlicensed sale of securities in violation of ORS 59.165.
ORDER
The Director, pursuant to ORS 59.245, hereby ORDERS that Respondent
Hans Wayne Schnauber, and any successor business entity owned, operated
or under the control of Respondent Hans Wayne Schnauber, shall CEASE
and DESIST from:
14. Selling securities without a license in violation of Oregon
Securities Laws;
15. Selling unregistered securities in the State of Oregon in
violation of Oregon Securities Laws; and
16. Violating any provision of the Oregon Securities Laws,
including ORS Chapter 59 and OAR Chapter 441.
The Director, pursuant to ORS 59.995, HEREBY ORDERS assessment of the
following CIVIL PENALTIES:
17. Respondent Hans Wayne Schnauber, and any successor business
entity owned, operated or under the control of Respondent Hans Wayne
Schnauber, shall be denied the use of any registration exemptions
contained in the Oregon Securities Laws, including ORS Chapter 59 and
OAR Chapter 441.
18. Respondent Hans Wayne Schnauber shall pay CIVIL PENALTIES in
the following amounts, due upon execution of this Order:
A. $214,100.00 (two hundred fourteen thousand, one hundred
dollars) for 2141 violations of ORS 59.055 (sale of unregistered
securities), and
B. $5,000.00 (five thousand dollars) for violation of ORS 59.165
(sale of securities by unlicensed person), for a TOTAL CIVIL PENALTY
ASSESSED against Respondent Hans Wayne Schnauber in the amount of
$219,100.00 (two hundred nineteen thousand, one hundred dollars).
19. The Director assesses a civil penalty of $3,500.00 (three
thousand five hundred dollars) against Respondent Hans Wayne Schnauber
for violations of ORS 59.165, and SUSPENDS the remaining $215,600.00
(two hundred fifteen thousand, six hundred dollars) PROVIDED HOWEVER
that if during the three-year period from the date of the Order,
Respondent Hans Wayne Schnauber violates any provision of this Order,
the Oregon Securities Law, ORS Chapter 59, OAR Chapter 441, or any
rule, order, or policy issued by the Division, the suspended portion of
the assessed civil penalties will become immediately due and payable.
If Respondent Hans Wayne Schnauber does not violate this Order or
commit any violations of the aforementioned laws and rules within three
years from the date of the Order, the suspended portion of the civil
penalty is waived.
20. Schnauber shall make payments of a minimum of $100 (one hundred
dollars) per month until the entire assessed penalty is paid. The first
payment is due no later than September 10, 2006. Payments shall be
received by the Department of Consumer and Business Services no later
than the tenth calendar day of each month. Payments shall be made by
check or money order paid to the order of the Department of Consumer
and Business Services and mailed to: "Fiscal Services Section, DCBS,
PO Box 14610, Salem OR 97309-0445." Each check or money order shall
bear the following identification: "DFCS # S-05--0056-62120/0500."
Schnauber may pay off the balance of the assessed penalty at any time.
21. If Respondent Schnauber fails to comply with the terms of this
Order, the entire suspended civil penalty in the amount of $215,600.00
(two hundred fifteen thousand, six hundred dollars), plus interest at
the statutory interest rate of nine percent (9%) simple per annum from
the date of default, will become immediately due and payable.
22. The entry of this Order in no way limits further remedies that
may be available to the Director under Oregon law for future violations
of law or to enforce this Order.
Dated this day of , 2006 at Salem, Oregon.
CORY STREISINGER, Director
Department of Consumer and Business Services
David C. Tatman, Administrator
Division of Finance and Corporate Securities
CONSENT TO ENTRY OF ORDER
I, Hans Wayne Schnauber, state that I am a resident of the State of
Washington, that I have read the foregoing Order and that I know and
fully understand the contents hereof; that I make no admission of
liability with respect to the Findings of Fact in the foregoing Order;
that I execute this consent in settlement of the matter referred to in
the Order; that I have been advised of my right to a hearing, and that
I have represented myself in this matter; that I voluntarily consent
to the entry of this Order without any force or duress, expressly
waiving any right to a hearing in this matter; that I understand that
the Director reserves the right to take further actions against me to
enforce this Order or to take appropriate action upon discovery of any
future violations of the Oregon Securities Law by me; and that I will
fully comply with the terms and conditions stated herein.
I further assure the Director that I will not engage in the activities
of a broker dealer, broker dealer salesperson, or investment adviser
within the state of Oregon unless such activities are in full
compliance with Chapter 59 of the Oregon Revised Statutes and Chapter
441 of the Oregon Administrative Rules.
I understand that this Order is a public document.
Hans Wayne Schnauber
SUBSCRIBED AND SWORN to before me this day of , 2006.
Notary Public
Notary Public for the State of
My commission expires:
///
///
///
_____________________________________________________________________
IFBE BUTTERFLY REFERENCE LINKS:
Hans Schnauber / Founder and Chief Visionary and Battle Tested Brainiac
International Federation of Butterfly Enthusiasts
http://www.ifbe.blogspot.com/
Dr. Robert Flanders / APHIS Senior Administrator
United States Deptartment of Agriculture
http://www.aphis.usda.gov/
USDA Authorized agent for the first permit issued to 'The Butterfly
Guy' Hans Schnauber in 1997
Jeffrey Glassberg / Founder, President and Attorney at Law
North American Butthead Association
http://www.naba.org/
Robert Pyle / Past President, Founder and Book Peddler
Xerces Society
http://www.xerces.org/
Mark Wallker / Possible Butterfly Conman and FOOL to BOOT
Believe to be founded as the British Butterfly Conman Society
http://www.butterfly-conservation.org/index.php
Leps Dplex List
by Jew Guy
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