stock ticker: LFSI

Stocklemon Tastes Something Sour in Lifestyle Innovations.

Once Stocklemon compiled all of the research on Lifestyle Innovations, Inc. (“Lifestyle Innovations”) we realized that it was more than enough to fill up a book, thus deciding what to write and when was an editorial decision. This is the first of a two part report in which we intend to discuss the potential SEC violations of Lifestyle Innovations Inc. (otcbb: LFSI) and its placement agent Richmark Capital Corporation.

Richmark Capital

Lifestyle Innovations is currently raising funds through the placement agent of Richmark Capital Corporation (“Richmark Capital” or “Richmark“). Richmark Capital is a broker dealer out of Texas whose founder is a gentleman by the name of Doyle Mark White. Not only is Richmark the placement agent, but they also have been the most active market maker in this security.
http://www.otcbb.com/asp/tradeact_mv.asp?Issue=lfsi&searchby=issue&sortby=volume&Month=8-1-2002&downloadname=mv200208.exe

Richamrk and Mark Doyle White have had their problems with the SEC in the past. Just earlier this year Mr. Whites served a 90 day suspension from the SEC for violations of securities law. The gist of the violation was the selling of securities to clients without the proper disclosure of the relationship between Richmark and the company. The attached link gives a detailed description of the infractions made by Richamrk and Mr. White. http://www.sec.gov/litigation/aljdec/id201rgm.htm

Has Richmark learned their lesson?

What is the true relationship between Richmark and Lifestyle? Is Richmark only an investment banker for Lifestyle, or does it run deeper? Here is what Stocklemon has discovered.

In the Private Placement Memorandum put towards potential investors, it is stated that the only current shareholder with more than 10% is a gentleman by the name of Randy Howell who currently owns 2,571,428 shares of Lifestyle Innovations. Randy Howell received his stock as his company Brittany Enterprises was sold to Princeton Mining (the original shell of LFSI), over a year ago. But who is Randy Howell and what is Brittany Enterprises?

Brittany Enterprises is a Nevada Corporation registered to the name Diane Golightly.
http://sos.state.nv.us/corp_nme.asp

Diane Golightly is the sister of Mark Doyle White
Randy Howell is the brother-in law of Mark Doyle White

Doyle Mark White’s family currently owns almost $10 million dollar in stock for nothing but the marginal leases on 2 apartments in Dallas.
Therefore, we now realize that the company is actually controlled by related parties to the founder of Richmark Capital. Where is the disclosure? Don’t the investors have a right to know this information

Is Richmark one of America’s Weakest Brokerage Firms?

Before anyone accuses Stocklemon of slander, we refer to the Weiss Ratings. Every quarter, Weiss evaluates the financial strength of more than 15,000 institutions, including stocks, brokerage firms, insurance companies, mutual funds and HMO’s. According to Weiss Ratings’ last report dated as of September 13, 2002, Richmark Capital is one of America’s WEAKEST BROKERAGE FIRMS.

http://www.weissratings.com/HL_broker.asp

According to Weiss, “A weak brokerage firm represents a potential for financial loss to its clients, as well as a number of headaches and hassles. After all, a financially desperate broker is more concerned about staying afloat today then he is about your financial well-being tomorrow.”
http://www.weissratings.com/HL_broker.asp 

Conclusion

The majority shareholder in Lifestyle is a direct related party and has not been disclosed by the underwriter. Furthermore, the underwriter is a company with a history of violations and the dubious ranking as one of America’s weakest brokerage firms. Stocklemon believes that this is a true caveat emptor situation. Stay tuned for Part II in which we intend to disclose even more related party transactions as well as the business and cash flow issues of Lifestyle Innovations.