Citron Reports on Lithium Exploration (OTCBB:LEXG) – A nostalgic piece for the “Old Lemon”.

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  Citron Revisits "Old School"

For this story, Citron is going “old school”.   But we just had to “keep it real” … as you will read below.   It is not a surprise to anyone that Lithium Exploration (LEXG) is a scam.  www.thestreetsweeper.org   

Streetsweeper did a nice job profiling the lack of underlying business at LEXG: 

http://www.stockhaven.com/how-the-ceo-of-lexg-alexander-richard-walshs-pay-is-potentially-8x-more-than-the-ceo-of-goldman-sachs/

OK, so we know there is no business, and for a CEO they put in the resident “patsy”.    Sadly enough the CEO of this high flier just got foreclosed on his house 6 months ago.

Foreclosure doc

But who is really behind this stock?  For that we read the disclaimers in these egregious stock promotional pieces that will one day serve as evidence in the promoters’ trials.

http://www.smauthority.com/report/

http://www.thestockdetective.com/lexg/

In the disclaimers we read that this stock promotion was paid for by Gekko Industries, Inc.

With a simple search through the Nevada Corporate Registry (a favorite place for Vancouver Stock Promoters) we read that Gekko, a defunct corporation, was controlled by William C Robertson and Robert Rosner.

http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=R3re88sIG49XfPy%252bU1Mdpw%253d%253d&nt7=0

These two have collaborated many times in the past on numerous now defunct public companies throughout the US and Canada.  One of their stocks, Wataire International (WTAR) trades for fractions of a penny after a 2008 SEC inquiry into the use of spam in stock promotion.

http://www.stockpatrol.com/article/key/secstyle_spamalot

But this is where it gets all nostalgic for Citron.  The President of Gekko, William C. Robertson was the subject of a Citron article 10 years ago (yes we have been at this for a long time) while he was involved with Burrard Technologies.  http://citronresearch.com/index.php/2001/11/19/stocklemoncom-reports-on-burrard-technologies-otb-btgs/

Robert Rosner was also a major investor in Burrard as evidenced by this SEC filing:

http://webcache.googleusercontent.com/search?q=cache:gTUCeDCwy7IJ:google.brand.edgar-online.com/EFX_dll/EDGARpro.dll%3FFetchFilingHtmlSection1%3FSectionID%3D1461742-28493-39594%26SessionID%3DbF4HHFiYveOe4P7+robert+rosner+pegasus&cd=1&hl=en&ct=clnk&gl=us&source=www.google.com

So what ever happened to Burrard?  It became Pegasus Wireless, and as expected< they were sued by the SEC for fraud:

http://www.cellular-news.com/story/37701.php

But here is where the story gets real interesting …so read up, promoters.   The CEO of LEXG, we are told, is Alexander Walsh.  But not according to the Nevada Corporate Records.  They have the president of Litihium Exploration as Nanuk Warman.

http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=j%252bUP1uB8FfcsK6MnhBOCUw%253d%253d&nt7=0

Why Citron finds Mr. Warman so interesting is that he was the President of a company called Neutron Enterprises.http://www.zoominfo.com/people/Warman_Nanuk_324182954.aspx

Most recently Nuetron’s claim to fame is that it was one of the 4 stocks manipulated by stock promoter George Georgiou who just received a 25 year sentence…yes that is right no typo….for Stock Promotion.

http://regulatorycomplianceblog.com/tag/neutron-enterprises/

In the government’s case against Georgiou it says the following statements about Neutron   …  does it sound just way too similar to LEXG???

“In the spring or summer of 2004, Georgiou told the CW about his plans to manipulate Neutron. Georgiou told the CW that they could make a lot of money by illegally pumping up the value of Neutron stock through manipulative devices such as match trades, wash sales (or “crosses”), and e-mail blasts (electronic mailings sent to induce purchases

Georgiou also told him that he controlled the company and that he and his group were buying up the entire float. He further stated that he planned to run promotional campaigns to increase the volume and price of the stock. Based on Georgiou’s promises to the CW to issue non¬restricted shares and to provide him with a discount in a private placement, the CW agreed to participate in the manipulation, to get others involved, to have them buy and “park” the stock, and then to sell when directed to do so.”

http://www.sec.gov/litigation/litreleases/2010/lr21751.htm

So a question for the promoters:  are you the guy more likely to do the 25 years or the guy who becomes the CW (cooperating witness)?  A copy of this report has been sent to the SEC attorneys on the Georgiou case. 

Citron can write pages on how this is not a real company with no real operating but we are not going to insult our readers.  You know that.  What we cannot figure out is why in an age where a stock promoter can get 25 years in jail, would people actually let the Lithium Exploration promo happen?  I guess you can never underestimate the other guy’s greed or stupidity.

Citron has done its best to ascertain the identity of Gekko Industries.  If it is not in fact the same Gekko Industries referenced above, then please share with us which one it is.

Cautious Investing To All