stock ticker: GTXC.PK

GTX Global (GTXC.pk) : Convicted Felons, Pink Sheets, and Stock Promotion Websites go together like Thanksgiving Turkey, stuffing, and a stomach ache.

GTX Global is supposed to be a VOIP technology business that began operations in 2005. According to the pink sheet website, GTX was established in 2005. Yet, on their website and in their promotional material we read that they have been in business since 1997.

In order to find out who GTX Global really is, just look at the pinksheet.com website and read that until October of 2005, the name of the company was Gatelinx. Well, maybe this is why the company suddenly decided to change its name before it went public.

The former CEO  of Gatelinx, until the company decided to go public was convicted felon David Hagen.

http://www.on2.com/company/news-room/press-releases/?id=141

It appears as if Mr. Hagen has been running a “rebate” scheme through Gatelinx that seemed to have caught up to him.

Mr. Hagen previously served time in “club fed” for mail and bankruptcy fraud.

http://www.wral.com/news/2968622/detail.html

http://www.ripoffreport.com/results.asp?q1=ALL&q4=&q6=&q3=&q2=&q7=&searchtype=0&submit2=Search%21&q5=gatelinx

One of his subsidiaries had to file bankruptcy just two months ago after many run-ins with the North Carolina Attorney General’ office

The Stock Promotion

In the past year, the SEC has halted trading in two stocks that had identical stock promotions and web design layout as the promotion behind GTX Global. Stocklemon was privileged to have reported on both of them Bio Heal (BHLL) and Abolute Health and Fittness (AHFI). Absolute Health and Fitness is based out of North Carolina, just like GTX Global.

http://www.sec.gov/litigation/litreleases/lr19085.htm

http://www.ironinvesting.com/

http://www.freshstockpicks.com/

This organized promotion shows all the same key characteristics as a group of other pink sheet stocks that have all been either halted or investigated including AHFI and BHLL.

Stocklemon is confident that just like AHFI and BHLL, this one will meet a similar fate, and within 30 days, the above page will disappear from the internet.

The anatomy of the stock fraud perpetrated by the above companies was best exposed on Steve Kirsch’s Junk Fax.org website.

( http://www.junkfax.org/fax/profiles/wsp/wsp.htm

All of the above companies promoted their stocks through the same “pay for clicks” Google search terms. Just go to Google and type in the phrases “hot stocks” or “penny stocks”:

http://www.google.com/search?hl=en&q=hot+stocks

http://www.google.com/search?hl=en&lr=&q=penny+stocks

Note the blatantly illegal tag line in the blue shaded “paid links” area: “Stock Pick: 650% return Expected - Currently $4 Rapidly Headed to $26″

GTX Global has issued two press releases over the past 2 weeks and Stocklemon believes are both laughable. The first one discusses the acquisition of Vizual Corp.

http://biz.yahoo.com/prnews/051107/clm054.html?.v=25

A simple check in Google will show that Vizual Corp has 0 mentions on the entire web except those which discuss the acquisition by GTX Global. There are only two things Stocklemon was able to verify about Vizual :

1. They operate out of an executive suite in Los Angeles

http://www.vizualcom.com/contacts.html

2. The corporation was just established in May of 2005

https://esos.state.nv.us/SOSServices/AnonymousAccess/CorpSearch/CorpDetails.aspx?CorpID=593938

3. The Chairman is a vocal advocate of financial privacy in the Bahamas and offshore banking. Here is an article in which Gilbert Morris is mentioned alongside Lines Overseas Management.

http://jonesbahamas.com/?c=47&a=2028&sid=4ec3f0c63f02e5ca24560d5e2f3ea3b2

Out of fear of being sued, we will not attempt to explain the connection here, you might just have to figure that one out for yourself.

In a more recent press release, we read how GTX has sold the license for all Canadian Territories to a company named Heel Strike

http://biz.yahoo.com/prnews/051110/clth044.html?.v=32

Stocklemon as been unable to find one piece of information anywhere that might even verify that Heel Strike exists. http://ca.yp.yahoo.com/ysp?C=&N=Heel+Strike&yloc=nrl&T=Toronto&S=ON&R=N&SRC=yahoo&STYPE=S&PG=L&Search=Find+It

Interestingly enough, GTX does not put a link or any background information on Heel Strike in the press release. Not a single reference in any SEC filings or their Canadian counterpart SEDAR.

It is the belief of Stocklemon that GTX Global is nothing but an ole fashioned stock promotion that will soon meet its fate at the hand of regulators. Cautious Investing To All.

Update

Yesterday Stocklemon issued a report on GTXC, as we commented that it is the same group or promoters that were beind AHFI and BHLL (both halted and sued by the SEC).  Since that report was issued 3 interesting events occured.

1. The company put out another press release that discusses an arrangement with another company that seems to have no operating history. This is the 3rd “mysterious” company that GTXC is supposed to have a contract.  This time it is Govalin Corp out of Lugano Switzerland.
   http://biz.yahoo.com/prnews/051114/clm060.html?.v=28
2. The company put out a press release refuting Stocklemon stating,
   ¼br /> “Mr. Curtis Garth, President of GTX Global, stated, “I have never heard of the two companies named in news release - Absolute Health and Fitness and Bioheal, before seeing them on the website. Neither of these companies is affiliated in any way with GTX Global.”
   http://biz.yahoo.com/prnews/051114/clm543.html?.v=3
3. Stocklemon received this email from the GTXC attorney yesterday

Gentlemen:

I act for GTX Corporation, the subject of your web site.  The information you set forth is false.  David Hagen is not CEO of the company. Indeed, he is not an officer, director or shareholder.  The false information you are displaying on your site is detrimental to the company as well as shareholders and prospective investors.  I therefore demand that you cease and desist from continuing to keep the false report on your web site.  Unless it is taken down immediately, I will recommend that the company pursue its available rights and remedies against you.

David J. Levenson
Law Offices of David J. Levenson
7947 Turncrest Drive
Potomac, Maryland 20854
Tel: 301-299-8092
Fax: 301-299-8093
E-mail: levensonfam@msn.com

Here is where it gets GREAT……all you have to do is see who David J.Levenson is….He is longtime council for Brian Kos, the same guy who had his assests frozen and is being charged by the SEC with the pump and dump promotion of Absolute Health and Fitness and Concorde America.

http://www.sec.gov/litigation/litreleases/lr19085.htm
http://www.junkfax.org/fax/profiles/wsp/wsp.htm
Stocklemon believes that this stock will get halted and someone will get charged in these doings. 

Cautious Investing To All.