stock ticker: UMSY

US Medsys Corp. (OTCBB:UMSY): Truth is Their Kryptonite

Shares Outstanding:     28,115,546

Market Capitalization: $163,070,160* 

Total revenues to date:  $ 0

*based on $5.80 stock price

Superman’s greatest challenge was the Legion of Doom, assembled by evil mastermind Lex Luthor, to challenge the combined strengths of Superman and his band of superheroes.  The Legion of Doom was constantly contriving villainous plots to take over take over the world..only to be foiled by Superman and his Superfriends.

If the OTCBB had a Legion of Doom, its lair would be US Medsys Corp. (UMSY).  Stocklemon contends that this stock is merely a trading vehicle for the Legion to separate the good people of Metropolis from their hard earned money. 

Let’s review from the top down:

Peter Futro:  CEO and Chairman of the Board

Not one mention in Mr. Futro’s bio of medical devices - not even a nod to healthcare.  Just a securities attorney who has represented - you guessed it — a myriad of OTCBB stock promotions.  Our favorite is when Mr. Futro assembled a private placement for career criminal and prison escape artist Christopher Harper.  http://www.westword.com/issues/1996-11-28/feature2.html

George Anagnost:  VP, Secretary and Director

Anagnost was listed as a shareholder of International Group Holdings Inc., when it merged with Energy Producers Inc.(OTCBB:EGPI), currently $0.15.  http://profiles.shaazamstocks.com/egpi/index.htmGeorge Anagnost is also listed as Secretary of Achieva Development Corp.  AHE trades on the TSX Venture exchange at $.11.  (Achevia is part of the Chris Harper Scam)George Anagnost was a board member of Environmental Construction Products International, it now trades on the Pink Sheets at .005. George Anagnost was the President of a shell corporation called Roosevelt Capital Corporation, which ultimately merged with an Alberta company called Sulphur Corporation of Canada Ltd.  Sulphur Corp. was controlled by James D. Yamada. Yamada was fined by the British Columbia Securites Commission in November, 1995, for persuading “an individual of ‘no fixed address’ to invest his life savings of $12,500 in shares of TTC Truck Tech Corp.”  http://www.bcsc.bc.ca/Enforcement/eol/yamada_daiji.htm 

Michael Fuoco:  VP of Corporate Development

UMSY’s most recent press release (6/9/04) proclaims Michael Fuoco as the new Head of Corporate Development.  Not much is known about Fuoco and his “consulting company”, but what we do know is that he was BARRED by the NASD and banned from association with any member firm.  http://216.239.57.104/search?q=cache:brJfYd9WS1gJ:www.nasdr.com/pdf-text/9612dis.pdf+%22MICHAEL+F.+FUOCO%22&hl=en

 

 

UMSY claims just one line of business:  rights to distribute a medical scanner manufactured by Longport, Inc.  (OTCBB:LPTI)

 

Michie Proctor: Chairman of the Board, Longport Inc.

(You have to read it to believe it — be sure to catch the part about the emus.)  http://www.upc-online.org/summer97/su97preacher.html 

 FALSE AND MISLEADING CLAIMS

Stocklemon alleges that UMSY’s SEC registration statement makes false and misleading claims about the one product it claims its entire current business is built around, the Longport Model LDS-1. UMSY’s SEC registration statement describes the LDS-1 as a “unique, portable, high resolution ultrasound imaging device which is patented and has FDA marketing clearance“.

The problem with this disclosure is that Longport explicitly stated in its 1999 Food and Drug Administration (FDA) 510(k) application that the LDS-1 is not “unique.”    Rather it is a “me-too” product.  Apparently, the FDA agreed, issuing a Determination of Substantial Equivalence approval:  http://www.fda.gov/cdrh/pdf/k990238.pdf

For more information on Substantial Equivalence, see: http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfCFR/CFRSearch.cfm?FR=807.92

According to Longport’s filings, UMSY is hardly the first company they have had distribution agreements with for their scanner.  In fact, since 1998 Longport has previously signed up “exclusive” licensing agreements for the scanner with at least 6 entities:

·                    United Medical Schools of St. Guy’s

·                    St. Thomas’s Hospitals

·                    Square Wave Systems,  Ltd.

·                    RD Bowers Associates

·                    Austin Medical

·                    Roomberg Consulting Group

How many Longport scanners have been sold during the past 5 years by these 6 distributors?

Longport’s SEC filings state:

“From 1999 through 2003, we sold a negligible number of scanners.”

According to Webster’s:

neg·li·gi·ble   adj. :  Not significant or important enough to be worth considering; trifling.

So now UMSY proudly adds themselves to the long list of insignificant entities who are unable to sell any of these scanners.

Finally, the math that just doesn’t work:  UMSY has only one line of business: its distribution agreement for the Longport scanner, which is five years post-FDA approval and has a track record of negligible sales.  UMSY has a market cap of $163 million while Longport has a market cap of less than $21 million.  How can this be? 

Anthony Altavilla: The Stock Promoter

Anthony Altavilla, of Summit Financial Partners, seems to be one of the main culprits here, as he has more than 500,000 shares of stock.not including the shares held by his partners.  http://www.summitfinancialpartners.com/biographies.html

In 1999, Altavilla was a Senior VP of Liviakis Financial Communications, Inc.  For those of you who do not follow The Lemon, Liviakis was the promoter in charge of Verdisys earlier this year until it was HALTED BY THE SEC.  Previously, he was notorious for masterminding the fraud cancer cure clinic in Tijuana / stock promotion known as BioPulse (OTCBB:BIOP) which was raided by Mexican health authorities, and last traded at .002.

Mr. Altavilla has been associated with Swissray International, Inc. (SRMI) from May 17, 1999 until August 5, 1999. Shares were delisted from the OTCBB in Nov. 2002 for failure to file financials. Last trade on the OTC was $.05.

Altavilla moved on to help in the EAutoclaims.com Liviakis promotion (pr, Oct. 31, 2000) (EACC). Currently it is in the .30 cent range

Altavilla was mentioned as being the Managing Director at Redwood Consultants in 2002. Redwood promoted Innovative Gaming Corporation of America (IGCA) which made its way from the NASDAQ to the pinks, last seen at $.02.

Redwood also promoted Hypertension Diagnostics (HDII $.16), Vizaro (VZRO), from $2 on the OTCBB in 2001, last traded on the pinks at $.0001), Make Your Move, Inc. (was MKMV), from $3 in 2002 to a last trade before a recent 150 for 1 reverse split of $.05)

No scanners, but lots of paper!  Look at all the cheap stock issued in UMSY:

(these are all direct quotes from UMSY’s SEC filings)

“During July, 2003, the Company issued 700,000 shares of common stock to

consultants in payment of services. The shares were recorded at an estimated

fair value of $46,200 ($.07 per share)”

“During November, 2003, the Company issued 2,620,000 shares of common stock to

consultants in payment of services. The shares were recorded at an estimated

fair value of $655,000 (weighted average $.25 per share)”

“During November, 2003, the Company exchanged one of its outstanding debentures,

including accrued interest, for 44,747 shares of common stock valued at $12,638.”

“During November, 2003, the Company issued 1,023,000 shares of common stock in

settlement of accounts payable of $287,730 to related parties.”

“During the six months ending December 31, 2003 the Company sold 3,290,000 shares

of common stock for $169,000, which was an average of $.05 per share.”

Conclusion

It is the opinion of Stocklemon that UMSY is not a company - it is just an idea wrapped around a shell.  After all, it doesn’t take X-ray Vision to see this is a stock promotion.  Cautious Investing To All.