GMC Holding Corp
			Symbol			GMCC

GMC Holding discloses continuing SEC investigation

2006-04-10 20:35 ET - Street Wire

Also Street Wire (U-*SEC) U.S. Securities and Exchange Commission

by Lee M. Webb

GMC Holding Corp., a retooled perpetual motion promotion that had its stock registration yanked by the U.S. Securities and Exchange Commission (SEC) on April 5, has disclosed that it is still being investigated by the U.S. regulator. Notwithstanding the revocation and continuing SEC probe, the company says it is business as usual.

As previously reported by Stockwatch, the U.S. regulator launched an administrative proceeding against GMC Holding one month after the pink sheet promotion spun out a nebulous tale about the pending sale of the rights to its ballyhooed "cold motor" technology.

The company's touted "cold motor" technology as well as its former perpetual motion promotion is reportedly underpinned by REMAT, an acronym for GMC Holding's esoteric Rare Earth Magnetic Amplification Technology.

In a fluffy Feb. 8 news release that waved vaguely at negotiations with unidentified "multiple corporate entities," GMC Holding suggested that the purported cold motor deal could be worth as much as $500-million, 96 per cent of which the company said it planned to allocate directly to shareholders. (All amounts are in U.S. dollars.)

On March 8, the SEC issued a 10-day trading suspension against GMC Holding because of questions regarding the accuracy and adequacy of the company's claims about the proposed sale, among other things.

At the same time, the U.S. regulator initiated an administrative proceeding against the company to determine whether it would be in the public interest to revoke GMC Holding's stock registration for not filing required periodic reports since 1998.

In response to the administrative proceedings, GMC Holding quietly submitted an offer of settlement, effectively yielding to the revocation of its stock registration.

On April 5, after reviewing and accepting the settlement offer, the SEC issued an order finding that GMC Holding had not filed any annual reports or any periodic or quarterly reports since 1998.

The U.S. regulator also found it "necessary and appropriate for the protection of investors" to revoke the registration of GMC Holding's securities.

Continuing investigation

On April 7, GMC Holding posted a shareholder update on its website, offering its spin on recent developments under the guise of a so-called "press release" that does not appear to have been distributed by any wire service or otherwise picked up by the media.

Among other things, the April 7 update indicates that the SEC is still investigating the company's management, financial reporting and touted technology.

"We are fully complying with the Securities and Exchange Commission in the attempt to assist them with this investigation to accelerate a conclusion," the company's postrevocation update states. "We are confident that our complete disclosure of all information regarding our business practices, financial condition and current R&D progress will facilitate this result."

Strange protection

In a rather peculiar claim of protecting its investors, the Florida-based company appears to take some credit for the revocation of the registration of its securities.

"In order to protect our shareholders, we requested an expedited delisting at this juncture," the company claims in its April 7 update.

Given that GMC Holding has only been quoted on the lowly pink sheets and has never been listed on any exchange, the so-called "expedited delisting" presumably refers to the SEC sanction of revoking the company's stock registration.

While the SEC invokes the protection of investors generally in revoking the registration of companies that are securities violators, GMC Holding does not explain just how the company's existing shareholders in particular are protected by the revocation that effectively wipes out the market value of their shares.

Business as usual

"We wish to assure our stockholders that even though we are not trading, it is business as usual for the company," the GMC Holding's management adds in the curious update.

Given that the company's business practices led to it running afoul of regulators and having its stock registration revoked, it is not clear just how much comfort, if any at all, investors stuck with GMC Holding shares should take from that "business as usual" claim.

"Business as usual" at the Florida-based company has resulted in a situation in which investors were left in the dark about GMC Holding's financial condition because the former pink sheet outfit did not bother filing any financial statements or any other periodic reports.

Among other things, the public record indicates that GMC Holding's "business as usual" has consisted of a great deal of promotional puffery including claims about a "'great than unity performance' device," otherwise known as a perpetual motion machine.

A review of the company's promotional news releases also indicates that "business as usual" includes touted initiatives about which little or nothing is subsequently heard.

For example, last August GMC Holding rather grandly announced that it had engaged an accounting firm "to complete its audits and reviews to facilitate compliance for application to one of the national exchanges."

Nothing more was heard about the touted audit, let alone an application to a national exchange, until Stockwatch asked GMC Holding president Bruce McKenzie about the status of the audit in February of this year.

"Well, that auditing firm has been tied up with a lot of other large business firms here and we are in negotiations with them to pass it off to another firm that can give it more time," Mr. McKenzie, who is not heading a large business firm, said on Feb. 13.

"We're trying to accelerate that picture more than we are to dead-end the picture," Mr. McKenzie told Stockwatch. "We've interviewed two other firms already and we're thinking about transferring the work to these other two firms.

"Hopefully we'll have all our auditing done in the next three to four weeks."

Under the company's "business as usual" approach, the auditing clearly was not completed within three to four weeks of Feb. 13; nor has the company offered any indication that the auditing will ever be completed.

In a similar "business as usual" vein, on Aug. 2, 2005, GMC Holding announced that "a prominent New York legal firm will shortly complete multiple patent filings of the company's 'REMAT(TM)' technology."

That announcement was made more than eight months ago, but nothing further has been heard of the "multiple patent filings" that were to be shortly completed.

"We are dedicated to providing shareholders necessary information for making stock purchasing decisions," Mr. McKenzie proclaimed last August.

"This is important to meet the company's immediate goal in becoming fully reporting and moving to a national exchange," GMC Holding's president went on to add in that fluffy news release last summer.

Given that the company is still under an SEC investigation and its shares cannot even be traded on the lowly pink sheets any longer, some investors might well wonder whether GMC Holding's "business as usual" approach is such a prudent strategy.

In any event, "business as usual" is GMC Holding's declared and demonstrated approach in its April 7 website update masquerading as a press release.

"We continue our efforts to improve our Cold Motor and other complimentary (sic) technologies," the company claims. "Negotiations continue with parties interested in purchasing a portion, or all of our technology.

"Once we have reached a resolution with the Securities and Exchange Commission, we have identified plans to move the company forward assuring that our bona fide stockholders will benefit and share in any sale of our REMAT technologies."

While it is far from clear whether GMC Holding is attempting to draw a distinction between "bona fide stockholders" and some other type of stockholders, there is little doubt that investors who paid as much as $2.30 per share before the SEC yanked the company's stock registration would welcome some benefit from what understandably appears to be a dud investment.

GMC Holding registered its last pink sheet trade on April 3 when 1,500 shares changed hands in a matched trade at $1.75 per share.

Comments regarding this article may be sent to lwebb@stockwatch.com.

(More information regarding GMC Holding Corp. is available in a Stockwatch article published on Feb. 14; March 8; and April 7, 2006.)

Reader Comments - Comments are open and unmoderated, although libelous remarks, including names, may be deleted. Opinions expressed do not necessarily reflect the views of Stockwatch.
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Looks like we were played the fools. BUT THE FAT LADY HASNT SANG YET!!!!! YOU CROOKS

Posted by silent investor @ 2006-04-11 00:06

stick a fork in this one Lee; She's cooked!

Posted by mythbuster @ 2006-04-11 00:34

Once again Lee Webb, you show your colorful hatchet job feathers. I can't wait until the moment you are plucked clean and fried in a nice batter!

This company is going to make your head spin .....endlessly!

lmfao......

still freddo.....still cazzo......

Posted by Freddo Cazzo @ 2006-04-11 00:41

silent investor, the fat lady has sung and left the building. All that is left is to see how far law enforcement will go. The crooks are the people selling paper dreams for cash.

35 years later, it still rings true

"The percentage you're paying is too high-priced While you're living beyond all your means And the man in the suit has just bought a new car From the profit he's made on your dreams"

Posted by Penny Gruber @ 2006-04-11 07:59

A perpetual motion machine? There are people out there stupid enough to buy into that? Did you people flunk grade 8 science? I gotta get into the stock promotion biz! There are obviously thousands born every minute!!!

Posted by ray @ 2006-04-11 14:28

Ray, yes there are. Just go to Free Energy News and you will find a lot of them. You will even find some pandering for cash, like Mark Goldes.

Posted by Penny Gruber @ 2006-04-12 00:16

And there are plenty of free energy through chemistry schemes from humble private ventures like Shec Labs and meagre OTC companies like Alternate Energy Corp to billion dollar national initiatives like ethanol from maize. Perpetual motion is public policy.

Posted by john lichtenstein @ 2006-04-12 02:24

Maze is good. You can eat it. The indians like it. They showed me. I can use it to fill my truck. I wont get lost in it because when my truck burns it up it is all gone. The mean old oily people dont want you to have maize because they are all mean old arabs who dont like the indians. My sister doesnt like maze. She says it gets stuck in her teeth. I wont let her drive in my truck when I fill it with maze. That is why.

Posted by energy doggie @ 2006-04-12 03:22

And there are plenty of free energy through chemistry schemes from humble private ventures like Shec Labs and meagre OTC companies like Alternate Energy Corp to billion dollar national initiatives like ethanol from maize. Perpetual motion is public policy.

Posted by john lichtenstein @ 2006-04-12 20:58

Penny Gruber's comment just came to my attention. Ours are development stage companies with breakthrough technology. In addition to the parent firm, we have a subsidiary, Room Temperature Superconductors Inc., which has completed four Small Business Innovation Contracts for the Department of Defense. Open minded individuals can see both the parent firm website: magneticpowerinc.com and that of the subsidiary: www.ultraconductors.com

Only Accredited ($1 million net worth, etc.) investors can participate in these companies. They are invited to perform Due Diligence.

See the article: Ticking Time Bomb, by John Atcheson, readily available on the web. Then consider the comments in the article I have placed on our website as to: How We Might Increase the Odds of Human Survival beyond 2050.

As the bumper sticker says: A mind is like a parachute. It only functions when it is open.

New science is the only hope for human survival. It is usual for it to be ridiculed, until the scientific establishment changes its mind about what might be possible.

The Wright Brothers flew in 1903, as everyone knows. However, scientists did not believe it until a 1908 Demonstration, for then President Teddy Roosevelt, made it impossible to deny. The New York Times, Scientific American and the Smithsonian, were among those who did not believe a couple of bicycle mechanics had proven the scientific establishment was wrong, and that heavier than air flight was possible.

Posted by Mark Goldes @ 2006-05-03 20:17

Could someone give me their opinion of Shec Labs,they've been around awhile and they seem to be convincing some fairly high profile people of their technoligy

Posted by Rick Strueby @ 2006-05-06 14:14

Mark, do you have your perpetual motion motor working? What did you say the efficiency was 700% was it? How about your room temperature superconductors you said "consider it done" months ago? Is it done now?

When I last saw you, you were pleading for money to pay the rent in WA. If: the promise is so great, your team so skilled, and your science so sound, why can't you find enough money to keep the doors open? Aren't you located in a ritzy part of cash rich California? Don't all those tree hugging celebrities with plenty of cash to burn want to help you save the planet?

The Wright Brothers managed to get their contraption off the ground. What has yours done?

Posted by Penny Gruber @ 2006-05-23 20:58

Magnetic generators such as we are developing are converting an energy source that can eventually power vehicles and exists everywhere in space. We have had good results in our labs and expect to obtain independent validation of the work this summer.

Ultraconductors are well proven by independent reproduction for the United States Air Force, as well as by distinguished labs in Russia and Israel.

Since the dot.com crash high-tech companies without revenue have had a difficult time finding capital. Several, even some profitable firms, have been forced to close.

Magnetic Power has large financings in process. All we have been seeking is a handful of additional Accredited Angel invesotrs to help bridge the gap.

Today we had a conversation, at their request, with a leading computer chip manufacturer, interested in using our Magnetic Power Modules(tm) to replace batteries in laptop computers. This appears feasible and is covered by a pending patent. That patent application will be published late next month, as it will be 18 months since filing. The prototype on which it is based produced an output of more than 100 times the input.

This type of breakthrough new science is needed to sustain human life past the middle of this century. See our website for details. And you might read Ticking Time Bomb, by John Atcheson, a DOE geologist. It is readily available on the web.

The real tragedy is the perpetual commotion which sustains dogma. Our work is based on lab experiments and will result in Demonstration Devices, possibly by the end of this year, and later toys. These will help closed minds puzzle over working devices that generate elctricity without any apparent source of power.

Posted by Mark Goldes @ 2006-06-05 20:33

Mark, you haven't gotten additional funding from the US gov't since 2000 have you? If the USAF validated your claims, why haven't they showered you in cash? It's been eight years since your SBIR contract. Where are the working devices?

There is lots of VC money out there. The VCs are just picky about who they give it to. The last report I saw indicated at least $70 billion of VC cash looking for a good home.

If I troll through your postings of the past decade how many times will I find claims to "big financing right around the corner" all you need is some local millionaires to "bridge the gap"?

Ah, this is one of those battery-gizmo-battery things is it? How many times have those gizmos proven to be shams and/or measurement errors? At last count it was 100%

You claim energy from the vacuum. Where is your evidence Mark? If the vacuum can spontaneously dump energy into our world can't it also spontaneously suck it out?

Scaring people with concerns about global warming is a poor substitute for science with respect to your claims. Just how is it that virtual photons do your dirty work? You do understand that virtual photons have NO DETECTABLE interaction with matter in our frame of reference, don't you?

I don't subscribe to dogma anymore than I purchase snake oil. Real science is all that I ask. Real science is all that I am interested in. When some nimrod comes along spewing the utter BS about how Lentz's Law and conservation of energy are somehow suspended because electronic commutation is used in place of mechanical the way that you do I treat it as the effluent that it is. The next time one of those tin foil helmet nuts dons their head gear you might ask them how it is that a non-ferrous material blocks out radio waves. It will put a real damper on your theories about "reverse torque".

Since 6/29/06 you claim a working device I am certain that you are seeking all of the press coverage that you can get. No doubt you welcome propagation of your claims by any and all. You are on record stating that your prototype was working prior to filing a patent application. Berkeley, Stanford, the LLNL and other prestigious institutions are within a couple of hours of your location. Who from any of those institutions has validated your claims?

For your sake I hope you can show your device works as claimed. Otherwise you might want to shift your legal resources from intellectual property protection to criminal defense. Fraud is a serious crime.

Posted by Penny Gruber @ 2006-07-03 20:11

PenniesEverywhere you and your criminal friends will soon be put to justice. You are one pathetic fat sea hag. What are you going to do when everything you believe is so is proven wrong?

What nuke company is paying you to defame any company that presents new energy? Your intent is transparent and your game is over. You too Lee Webb, you should have been a little more intelligent than hooking up with miscreants such as these.

Posted by Orpei @ 2006-08-14 20:33

Mr Goldes, congrats on your recent pat. app. and I wish you nothing but success in your future. Screw these criminals like pennies and her cronies. How much do you want to bet Mr Lee Ahole would be all over you if you were a publicy trading company

Posted by Orpei @ 2006-08-14 20:35

Whether you agree with Lee Webb or not is irrelevant.What we should focus on is that GMCC made many promises and has deliviered no SEC filings,revenues,or a working device since they made a breakthrough announcement in November 2004. Its just delays and delays,changes in plans,leading investors on about patents and commercially available devices. I really doubt that the people at GMCC could take another company public or that their technology is still progressing. If they can't even get a company audit completed and shown to investors then they can't do anything.

Posted by Naysayer @ 2006-09-06 09:37

Laws of conservation of energy are violated according to the explanation given. The energy comes from " no apparent source ". If the source is EM energy then its just a larger gas tank to draw from, not something out of thin air. eom

Posted by D Wilde @ 2006-11-02 14:21

Laws of conservation of energy are violated according to the explanation given. The energy comes from " no apparent source ". If the source is EM energy then its just a larger gas tank to draw from, not something out of thin air. eom

Posted by D Wilde @ 2006-11-02 14:22

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