Here is a late-filed SEC Form 4, to get things started. AEHI CEO Don Gillispie was awarded 3,000,000 shares of stock for services.
"Stock is not salary...there is no W-2 or withholding. Also, his stock is restricted and he can only sell limited amounts...looking at the AEHI situation doubt he could live on it if he had too."
On June 24, 2010, the closing price of AEHI stock was .50, making this stock award worth $1.5 million. It would not be until this SEC Form 4 was filed on Sept. 29, 2010, three months after the fact, that shareholders would learn about this lavish executive compensation.
Another point to remember is that stock is not always a fungible good- these three million shares all have a specific acquisition date- and they were restricted. But the 39 million he had before the award all had different acquisition dates also- and many were eligible for the restriction to be lifted. Thus, Don would, through this award, be able to dump 3M shares without affecting the total amount of his holdings- he's awarded 3M, then files to sell 3M- no change.
Let's take a closer look at what happened before and after those three months, now that we have some emails to help illuminate our perspective. And sunshine is a great disinfectant, is it not?
May 20, 2010: AEHI issues this odd-sounding press release:
AEHI Provides Update to Investors on Trading Status
Remains in Full Compliance with All SEC Reporting Requirements
BOISE, IDAHO - May 20, 2010 - Alternate Energy Holdings, Inc. (OTCQB: AEHI) today announced that its common stock temporarily ceased quotation on the Over-the-Counter Bulletin Board (OTC BB), but continues to quote on the OTCQB. AEHI has been, and remains, in full compliance with all SEC reporting and filing requirements. The Company believes the change in status with regard to the OTC BB was due to the actions of a small Idaho market maker (Pennaluna), who had initially filed the Form 15C-211 on behalf of the Company, and decided to no longer provide a 'bid/ask' quote on the OTCBB platform. Unfortunately, Pennaluna did not notify the company as would be expected. "It is unfortunate we did not have prior notice to this market maker's decision, however, due to our listing on the OTCQB, we do not anticipate this change will have an effect on our investors' ability to buy or sell shares. In addition, there are numerous market makers currently making markets in AEHI stock on the OTCQB, and we are in discussions with several of these larger firms to submit the required regulatory filings in order to resume dual quotation on the OTC BB," said Don Gillispie, AEHI CEO. "One of our near term goals is to list on a senior national exchange, and this development will not affect our pursuit of this goal." |
May 21 2010: Key Senior Executive Vice President Jennifer Ransom emails broker to initiate sale of stock, with intriguing reference to "a big mess" and "innocent but big mistakes":
June 5, 2010: Don presses broker to expedite the sale of Jennie's shares, stating "...it has an impact on the company if delayed....not to be repeated"
June 14, 2010: Presses lawyer for paperwork on Jennie's apparently still incomplete stock sale, referring to an "urgent need for the funds.":
June 24, 2010: Gillispie awarded 3 million shares (worth on that date $1.5 million) , bringing total stake to 42.6M shares.
June 28, 2010: Four days after getting his own 3 million shares, Gillispie directs broker to "reactivate" Ransom's sale, with "careful instructions not to drop the price (selling near the ask)" Shades of the 2007 emails.
July 1, 2010: Six days after awarding AEHI CEO Don Gillispie $1.5 million worth of AEHI stock, the company approves his new salary: $40,000 per month, or $480,000 per year. Undisclosed to (the likely to whine about such things) stockholders until revealed in SEC complaint filed in December.
July 14, 2010: In an email with the subject "Selling Jennie's stock," Don mentions a need to "give you [his broker] my stock soon..."
July 18, 2010: Don directs broker to stop selling Jennie's stock and start on Brian Webb's:
August 9, 2010: AEHI share price hits $0.90 for the first time since the May price spike brought about by Nick Hodge's infamous May 2010 "unauthorized photo" pump piece.
August 10, 2010: Gillispie files to move from restriction 3M shares a planned sale, of 7% of his holdings.
Share price hits $1.00 that day, but closes at .78. A 3M share stake over those two days fluctuates in value from $2.3 to $3 million.
August 13, 2010: AEHI CFO Rick Bucci writes letter to UBS Mortgage verifying CEO Don Gillispie's new salary:
August 23, 2010: Ransom files yet another planned sale, 500,000 shares.
September 3, 2010: Clearly in response to reactions to the filing of his planned sale, Gillispie directs broker to "Please return all to restricted. The stockholders are whining."
September 8, 2010: Despite his recognition of "whininng" stockholders, AEHI CEO Don Gillispie gives his broker another nudge, hoping the broker is "selling Jennie's shares in this hot market period...thanks":
September 29, 2010: AEHI finally files the SEC Form 4 covering Don's 3M share award of June 24, as well as his eyewash stunt purchase of 37,500 shares at 80 cents.
September 30, 2010: Company issues infamous press release:
BOISE, Idaho, September 30, 2010 - Alternate Energy Holdings, Inc. (OTCBB: AEHI; OTCQB: AEHI) (www.aehipower.com), a developer and marketer of innovative clean energy sources based in Eagle, ID today noted that several members of the board and the senior management team recently purchased shares of AEHI, including Don Gillispie, CEO.
"Recent insider purchases and the fact that neither I, our CFO, board members, nor any officers who have day-to-day line responsibilities for running the company have sold a single share since the Company's inception speak to our strong confidence in the outlook for the business," said Don Gillispie, CEO of Alternate Energy Holdings. "Near-term, we anticipate two important catalysts for our business: the anticipated final local approval of our nuclear power plant site in Payette County; and the potential sale of a nuclear desalination plant to one or more overseas buyers."
December 14, 2010: SEC Suspends trading of AEHI Stock.
December 16, 2010: Send Lawers, Guns, and Money: The Shit Has Hit the Fan
February 22, 2011: Investor and AEHI Facebook Page fan expresses concern about lack of recent company info. In response to another's suggestion that he call the company, he reports,
"down another .2 cents today. No news,no nothing. Very frustrating in my opinion. I guess there waiting till it goes to 0 to shed some news. This is not right to us investors. Will be selling my 50,000 shares ASAP. Good luck to the rest of you. And Mike, I got the run around when I called." Current screenshot below, as the company is notorious for removing any posts that dare to question, or sound like "the shareholders are whining." Ha.
The Dude nails it!!!
ReplyDeleteWhat was the judge thinking to lift the asset freeze?!! Live and learn. One would think a man at his age would have already learned. Hell, it's not his money and only the investors will loose.
Excellent job of explaining to all of us how bad Gillispie was screwing us. Lets not forget this is what Gillispie and Ransom were willing to put in writing. One can only imagine what was going on behind closed doors! No wonder the SEC put a halt to this. I just wish they had waited until I got out.
ReplyDeleteI am thinking the board of directors better have some really good insurance. They have some explaining to do.
Now I understand why Gillispie tried so hard to blame all his problems on Joe Weatherby, you and "Joe Lucid". Sounds just like the tobacco companies.
We all owe you an apology and a thank you. Too bad we didn't know this stuff a few months earlier.
Tar and Feathers anyone?
Amazing job, Dude!