LSR PROFILES
Golf Entertainment, Inc.
(OTCBB:  GECC)

This Edition Of Profile Is An Ongoing Series Which Uncovers Indications of Fraud At GECC.

For Photos of GECC headquarters and principle players detailed in this story, click here:

Golf Entertainment Update

Dateline-Wonderland
Friday, January 03, 2003
By:  Dr. Robert Church, LSR Investigative Journalist

Sienna Broadcasting, formerly Golf Entertainment, had just about faded away to nothing but a grin.  The company, featured in a LSR profiles series failed to meet its payment deadline for its flagship Hispanic language broadcast station, was evicted from its headquarters for non-payment of rent, and was barred by the Arkansas Securities Department from selling its stock. The company's most recent SEC filing revealed a cash strapped company whose assets consisted primarily of broadcast equipment acquired at "auction" and valued using a smelly stock valuation methodology reported in our earlier series.

But the Cat is back. On December 27, 2002 Sienna and the Genesis Trust filed suit against the Arkansas Department of Securities in the Pulaski County, Arkansas Circuit Court. The suit alleges that the ASD used its statuatory enforcement authority against Sienna as part of a concerted and deliberate effort to manipulate the price of Sienna stock.

Genesis Trust-an allegedly charitable organization that has not filed for IRS exemption-has now morphed into an organization that claims to be concerned with assisting Hispanic immigrants adjust to Arkansas. Genesis claims injury because the ASD cease and desist order prevents Sienna from meeting the settlement terms of what appears to us to be a sham suit brought by Genesis against Sienna and settled without a timely SEC filing for fifteen million free trading shares of Sienna stock.

The ASD is the latest in a long line of individuals and organizations that Sienna's Jim Bolt and John Dodge claim have engaged in a vast conspiracy to manipulate the price of Sienna's stock-currently trading at three tenths of a penny.  Co-conspirators alleged by Sienna include Sienna's former landlord,  Benton County, Arkansas' Prosecuting Attorney Bob Balfe, the Arkansas Business Journal, LSR, Lycos, a South Florida ISP, a hired stock promoter, and approximately a hundred "John Does" named in an abortive Lycos subpoena. We suspect that the Trilateral Commission, FreeMasons, and the United Nations will be added shortly.

Sienna's implosion has nothing to do with securities law violations, false SEC filings, massive secret dilution of its stock and failure to pay its bills. Nope.  It's "Them".

And up is down.

Jabberwock 1, GECC 0

--GECC Saying Goodbye To KVAQ-LP?
Wednesday Evening, September 18, 2002

By:  Dr. Robert Church, LSR Investigative Journalist

In what looks like the final chapter of Arkansas based Golf Entertainment's brief story, Christians Incorporated for Christ spokesperson Keith O'Neil confirmed today that CIFC was taking possession of  station KVAQ-LP, Golf's flagship Spanish language broadcasting station in Springdale, Arkansas. The repossession was brought about by GECC's failure to make a $300,000.00 payment due on August 31, 2002.  This note payable was listed in several GECC SEC filings as having "no payments due until 2003," a claim disputed by Mr. O'Neil and reported in previous LSR coverage of the GECC story.

O'Neil reported that the station would change it's format to Spanish language Gospel programming.  GECC will have no ongoing role in the station's activities.

LSR was told by local sources that KVAQ changed its broadcast format last week from HTVN Spanish content to broadcasting Canadian Football League sports and classic comedy movies.  HTVN would not comment on whether GECC was current in their payment for HTVN programming.

Other LSR sources indicated that Michael Daniels, current CEO of GECC and its spun off subsidiary LEC Leasing has resigned his CEO positions and his GECC Board Membership.  Those sources also told LSR that GECC has outstanding financial obligations to Daniels. Neither corporation has a current charter.

GECC currently has no operating business and faces a full investigation into possible stock fraud by the Arkansas Department of Securities. US  Senator Hutchinson (R-ARK) has personally requested that the SEC investigate possible fraudlent activity by GECC and Genesis Trust officials.

This story relied in part on materials published by www.arkansasbusiness.com.

Reeling and Writhing

-ASD Issues Cease and Desist Order Against GECC
Wednesday Evening, September 11, 2002

By:  Dr. Robert Church, LSR Investigative Journalist

In describing his education to Alice, the Mock Turtle claims extensive training in reeling and writhing.  Recent events in the ongoing saga of Golf Entertainment (OTCBB-GECC) indicate that GECC management and board members may have attended the same school.

On September 11, 2002 the Arkansas Securities Department released notice of a cease and desist order against all GECC and Genesis Trust Officers and Directors prohibiting their sale of GECC shares in Arkansas.  The order's Conclusion of Law stated that the shares received by Genesis Trust in the questionable "stock fraud" lawsuit described earlier in the LSR profile of GECC were not lawfully registered in Arkansas.  The order did not address the status of shares described as being personally transferred to Genesis trustees Robinson and Rusk and "transferred to affiliates of Golf and Genesis," nor did it address why shares of GECC had been transferred to GECC affiliates. The order describes The Genesis Trust as an organization that "purports to be a non-profit association".

Although the immediate effect of the order is to prohibit GECC share sales only in Arkansas, the ruling is not good news for the hapless penny stock.  On August 29, 2002 the Director of ASD ordered a full investigation into GECC, stating that "certain evidence, if true" would constitute criminal violations under Arkansas law.  We imagine that the cease and desist order is the first of many actions in Arkansas, and that the SEC as requested by U.S. Senator Tim Hutchinson will look closely at all GECC actions during the past nine months. As documented in previous LSR reports, many of those actions seem to violate a variety of SEC regulations.

GECC still faces eviction from its offices for failure to pay rent.  Although Jim Bolt of GECC claimed in earlier statements to the press that the overdue rent had been "tendered", County officials confirmed that the eviction suit is an open case.  In typical Wonderland fashion, John Dodge, GECC Vice President and General Counsel, has filed a motion to transfer the eviction proceeding to Federal court, claiming that GECC's status as a public company gives the Federal court jurisdiction over a simple landlord/tenant case.  We are certain that subsequent filings will claim the landlord to be part of the vast conspiracy GECC claims was organized to destroy the company.

It is also continues to be unclear whether GECC exists as a legal entity.  Earlier calls to Delaware confirmed that GECC's corporate charter had expired as of March 1, 2002 and there are reports that another party has reserved the right to the corporate name "Golf Entertainment" in Delaware.  GECC's very tardy filing as a foreign corporation doing business in Arkansas is still listed as "pending".  According to Arkansas Secretary of State officials that status means that GECC has not presented evidence of their Delaware Incorporation to Arkansas.  The Arkansas registration was dated August 21, 2002.  LEC Leasing, of which "gratuity shares" were to be distributed to GECC shareholders on September 1, 2002, still has a revoked Nevada charter.

Questions of existence aside, LSR sources indicate that GECC may soon not have a business.  The August 31, 2002 payment of approximately $300,000 due Christians Incorporated for Christ for the purchase of station KVAQ-LP, the "flagship" station of GECC's proposed nationwide network of Spanish language broadcast facilities has not been received as of September 10, 2002.  Given the company's pending eviction over the non-payment of two months rent, it is difficult to imagine their obtaining $300,000 to pay the CIFC debt. That debt was listed in GECC financial statements filed with the SEC as having "no payments due until 2003". Hispanic Television Network officials have refused to return numerous calls asking if GECC is current on payments to HTVN for rebroadcast rights.

Other than that, it's a lovely day for a beachside chat with the Mock Turtle in Wonderland.  The Company formerly known as Golf Entertainment continues to amaze and amuse and they reel and writhe. GECC shareholders reviewing their portfolios will also no doubt understand the branch of arithmetic described by the Turtle as "uglification."

Through the Looking Glass

--Arkansas Securities Commissioner Orders Probe of Golf/Genesis
Friday, August 30, 2002

By:  Dr. Robert Church, LSR Investigative Journalist

LSR has obtained a copy of a public document issued by Michael Johnson, Arkansas Securities Commissioner on August 29, 2002.  In the document, Commissioner Johnson orders an investigation into "certain evidence which, if true, indicates that Golf Entertainment, Inc., D/B/A Sienna Broadcasting, Inc." Golf Officers and Directors, and The Genesis Trust and trustees Rusk and Robinson "have violated various sections of the Arkansas Securities Act."  Possible violations cited by the Commissioner include the sale of unregistered securities, fraud by artifice, making untrue statements of a material fact in conjunction with the sale of a security in Arkansas.

Commissioner Johnson named two officers of his Department to conduct the investigation, and by order empowered them with full investigative authority, including obtaining sworn testimony from relevant witnesses, subpoena, and the production of books, records and other documentary evidence. The proceedings of the investigation will not be public information until its conclusion.

Who knows what a team with full investigative and enforcement authority will find in Wonderland?  LSR suspects that they will turn up a structure as flimsy as the Red Queen's playing card soldiers.

Alice In Wonderland, Part Three
Thursday Evening, August 23, 2002

By:  Dr. Robert Church, LSR Investigative Journalist

LSR has confirmed that Golf Entertainment, of Delaware, or Georgia, or Arkansas depending on the day, has been ordered to vacate its Springdale, Arkansas headquarters for non-payment of rent.  This turn of events brings into question the ability of the OTC-BB traded company to survive, since the leased headquarters served as the broadcast hub for the company's rebroadcast of  the bankrupt, Texas based, HTVN's Spanish language content programming.  Golf officials referred all calls to John Dodge, the company's Corporate Counsel, who was unavailable for comment.

At least the Mad Hatter had a house for his tea party.  Golf appears to be getting ready to join the ranks of the homeless.

Alice In Wonderland, Part Two
Tuesday Evening, August 20, 2002

By:  Dr. Robert Church, LSR Investigative Journalist

Today, LSR  has confirmed that Golf Entertainment, Inc., formerly a Delaware Corporation "went to void status on 03-01-2002 for failure to pay corporate fanchise tax."  Golf Entertainment, a company that issued fifteen million new free trading shares in May, 2002 does not seem to have a legal existence as required by NASD and the SEC.  Research has also confirmed that Golf has no corporate existence in the State or Arkansas and that its Georgia foreign corporation status is impaired.

So we seem to have non-existent corporation issuing and selling shares, filing and resolving lawsuits in a matter of days, and an Auditor who fails to take the basic step of verifying the legal existence of the corporation? 

Only in Wonderland.  Only in Wonderland.

ALICE IN WONDERLAND
(Alicia in el Pais de las Maravillas)

--Magic Mushrooms and Hispanic Fishermen
Monday, August 19, 2002

By:  Dr. Robert Church, LSR Investigative Journalist

Long and Short Reports had never heard of Golf Entertainment of Springdale, Arkansas (OTCBB-GECC) before June 13, 2002.  On that date an alert reader, mindful of our love of OTC madness, alerted us to a PR Newswire announcement by the company of a proposed "criminal and civil action" against message board participants who were posting "false information" about the company. Company CEO Tim Brooker claimed to be requesting the assistance of Federal criminal authorities and the SEC in countering the effects of what he claimed was an organized conspiracy to short the stock of GECC and drive the price down. The company subsequently filed a "Civil RICO" complaint in the Western Arkansas Federal Court alleging an organized conspiracy to manipulate their stock price and seeking the identity of seven "John Does" posting on the Lycos site, Raging Bull.  A review of the posts cited as pointing to a conspiracy reveals that they consisted of documented facts obtained from the public domain, albeit expressed in the colorful style typical of message board culture. RB was subsequently served with a subpoena seeking the identities of approximately 90 RB aliases.  Lycos declined to respond to the subpoena.

Once alerted, we moved quickly to conduct a preliminary investigation to see if the GECC story warranted follow-up.  Speed is imperative when researching the wonderland world of BB companies threatening basher suits. Such companies usually quickly proceed to declare bankruptcy or announce an indictment of management. Attempting to silence critics by threats of legal action rather than refuting them with facts is almost always a sure sign of a company with something-or perhaps a lot-to hide.

LSR contacted Golf officials regarding one of the more contentious message board claims; that company officials and affiliates had a background of major felony conviction and imprisonment. Company spokespersons denied that this was true.  When LSR subsequently obtained official confirmation that the criminal background claims were indeed accurate, Golf officials were re-contacted. The officials declined further comment. We decided it was time to jump headfirst down the rabbit hole.

And one of our first discoveries was that the staff of the NW Arkansas Business Journal was following the same story.  They agreed to collaborate with LSR's staff. This story, released simultaneously with the NWABJ story published today at http://www.arkansasbusiness.com , owes much to their generous assistance, open sharing of information, and  intimate knowledge of local players and personalities. LSR also extends its thanks to many anonymous Internet volunteers who provided significant assistance in the research leading to this story. 

Our joint investigation has led to the following major findings regarding Golf Entertainment dba Sienna Broadcasting.

* The Company engaged in a series of what seems to be sham asset transactions that served no purpose other than to inflate the value of balance sheet assets.
* Although the company denies a "material relationship" with Genesis Trust, a non-profit trust involved in the asset transactions and the current majority shareholder of Golf stock, there are in fact so many personal and business overlaps between the two as to make them indistinguishable.
* The company announced a "fully subscribed" $5 million stock placement with a non-existent organization.
* Officers and Directors of both the company and of the Genesis trust have a history of multiple felony convictions involving, among other things, mail fraud and wire fraud.
* What appears to be a very friendly "fraud" lawsuit brought by the Genesis Trust against the company resulted in the transfer of fifteen million free trading shares-two thirds of the company's outstanding shares after the transfer- to the Genesis Trust. The suit and its settlement by the company were not announced until months after the fact.
* The company issued multiple press releases that we have found to be significantly at variance with fact.
* Immediately upon settlement of the suit, Genesis hired multiple promoters and appears to have begun disposing of shares on the open market.
* The Company employed an accountant who at the time of his engagement was charged by the SEC with two counts of accounting irregularity, including overvaluing assets obtained through stock purchase agreements.  The accountant has subsequently been prohibited from participating in SEC filings.

LSR and NWABJ staffs are apparently not the only parties concerned about the circumstances surrounding Golf Entertainment.   LSR has obtained a copy of an August 13, 2002 letter written by US Senator Tim Hutchinson of Arkansas to SEC Chairman Harvey Pitt. In the letter, Senator Hutchinson specifically requests that Chairman Pitt carefully review questions regarding Golf Entertainment submitted to the SEC by Benton County Prosecutor Robert Balfe. Senator Hutchinson's staff have verified that the letter is genuine. We are not privy to the questions raised by Prosecutor Balfe, but we would be quite surprised if his concerns and ours do not overlap.

As of the publication of this LSR feature article,  GECC has made another futile attempt to silence its critics by filing an amended "RICO" complaint naming this reporter, other staff and principals of LSR, NWABJ editor Jeff Wood, Benton County Prosecutor Robert Balfe, an unnamed, but "corruptly influenced" SEC official, and a variety of other "John Does" as conspirators in a scheme to sell GECC shares short and then profit by driving down the stock price of this deeply and deservedly obscure company. The bizarre allegations of the complaint do not merit a response beyond a statement that discovering the truth and publishing it are the core responsibilities of the North American free press.

Because of the volume of information discovered in this investigation and the complexity of the GECC story, LSR will publish this report in much more detail than usual. We feel that the information is important not only because it reveals the convoluted inner workings of an attempted pump and dump scheme, but also because it shows that public information publicly expressed can play a major role in policing the capital markets. Or, as one waggish message board poster put it: "It illustrates why it is unwise to use four oafs and one dead fish in an attempt to bleed the multitudes." Mirabilis dictu!

Following the March Hare

On April 6, 2001 the Morning News of Northwest Arkansas reported that Multicom Media Group of Springdale, Arkansas had reached an agreement with Missouri officials of Christians Incorporated for Christ to purchase television station K20CT, a low power station in Springdale, Arkansas.  Multicom spokesperson Tim Brooker, a former ultra-conservative radio talk show host in Northwest Arkansas, stated to the Morning News that the station's Christian broadcast format would be changed to an all-Spanish language format to reach the rapidly growing Hispanic population in the area. CIFC Vice President Keith O'Neil confirmed that his organization had agreed upon sales terms with Multicom. CIFC transferred operational control of the station to Multicom on a lease basis pending the close of the sale and Federal Communications Commission approval of the license transfer. A subsequent Morning News article identified a James Bolt as a Multicom spokesperson and as managing director of the station. Bolt previously headed Utica Publishing, producing an on line newspaper covering NW Arkansas news and politics.

The announced plan might have produced a successful small business.  Census data show that about 24,000 persons in the stations viewer area identified themselves as Hispanic and that the area Hispanic population had grown significantly since the last census. The station planned to produce some local content, but was to serve primarily as a rebroadcaster of the now bankrupt but still operating Hispanic Television Network programming.

There were some significant challenges facing the station.  Cox Communications, the dominant local CATV provider, did not and still does not carry the station in its core or premium channel selection.  Cox could, if it determined that the Hispanic market demand justified the expense, add the dominant Telemundo Hispanic content channel to its offerings in NW Arkansas.   Ozark Wireless, a small regional provider with a subscriber base of 350 persons, does carry the station's programming, but the bulk of the target market would have to receive the signal through an external antenna, limiting the station's market share and its advertising rates. 

Multicom, Brooker, and Bolt re-emerged as Golf Entertainment, dba Sienna Broadcasting in a January 8, 2002 8-k filing by Golf, an inactive but fully reporting OTC-BB shell formerly in the business of managing golf courses.  No longer content to operate a local station, Brooker-now CEO of Golf-announced plans to acquire multiple existing stations or new broadcast licenses and to become a major producer and broadcaster of Spanish language programming in secondary markets. Over the next several months the company announced additional plans, including hiring a Spanish speaking newscaster for local news reporting and producing specialty series such as "Hispanic Fisherman" (how would the fish know?) and children's programming.

Despite this announcement and subsequent press releases and filings describing Golf as the station owner, FCC freedom of information inquiries reveal that ownership of the station has not changed hands as of this date. The FCC has received neither a notice of a broadcast format change nor an application for license transfer. 

Going Twice, Going Once-A Private Public Auction in Wonderland

The January 8-k outlines a series of events of Byzantine complexity leading to the transformation from Multicom to Golf. According to the SEC filing, on December 31, 2001 and subsequent documents Golf acquired-through submission of a "sealed bid"- assets consisting of unspecified broadcast equipment and the right to purchase the license for low power television station KVAQ from The Genesis Trust. The assets and station license purchase were obtained in exchange for 3.75 million restricted shares of Golf stock. Genesis, described as a non-profit tax-exempt community trust, supposedly had acquired the assets through a "public auction" held on December 25 or 26, 2001. The filing makes no mention of Multicom. A search of local news publications finds no notice of a "public auction" of broadcast assets.

Golf Shares were illiquid at the time of the sale with a last recorded sales price of $.04 per share. This share price would value the assets acquired at  $150,000.00.  Taking a clue from Alice, perhaps, and nibbling on the side of the mushroom that makes you grow, the sales agreement valued the shares at $.27 per share, contingent on the shares of Golf attaining that market price within 30 days of the transaction. This stipulation valued the assets at $1,012,500.00. 

Perhaps CEO Brooker, a fundamentalist Christian (think Cotton Mather on steroids) and part time professor of business at Oral Roberts University of Tulsa, Oklahoma has special influence with higher powers.  Although Golf's share price did not budge during most of January including a number of days of zero volume, the price miraculously rocketed to $.30 per share in a three-day period in late January on total volume of approximately 300,000 shares.  Although the share price just as promptly collapsed, Golf's new auditor booked the assets acquired at $1,012,500 per the agreement.

Christians Incorporated for Christ Vice President Keith O'Neil has a different recollection of events. In interviews with LSR and NWABJ staff O'Neil stated that CIFC had never transferred assets or the right to purchase the station license to the Genesis Trust through auction or by any other means.  O'Neil reported that he was approached by Brooker and Bolt in December and told that they wished to re-negotiate the sales agreement and make Golf the purchaser.  O'Neil agreed, and a revised sales document was executed in April, 2002 with  final payment due in August, 2002.  Although O'Neil would not identify the total purchase price-described as substantial- he did state that it was significantly less than one million dollars. O'Neil also denied the existence of a $290,000 Golf note payable to CIFC that was stated  in Golf SEC filings as having "no payments due until 2003". O'Neil insisted that the sales agreement required full and final payment in August, 2002.

Who sold what to whom and why? The Genesis Trust could only have acquired the "assets" and station purchase right from Multicom. Did Multicom principals Brooker and Bolt conduct a sham "public auction" to Genesis Trust and then repurchase the assets and license rights as Golf principals?  Was this a series of "flips" of property conducted solely to achieve an inflated asset value? We think so.

Genesis Trust "Senior Trustee" Charles Rusk of Rogers Arkansas corroborates this view.  Rusk stated in a tape recorded interview that these were "paper transactions" with no assets actually transferred.  Rusk, ironically, was formerly in the auction business.

Exactly what is the Genesis Trust and why did they become involved in this transaction?  The 8-k states specifically that there is "no material relationship between the Genesis Trust and the registrant" (Golf), implying that the purchase by Golf was an arm's length transaction. As it turns out it was about as arm's length as a joint checking account with a spouse.

Zero Degrees of Separation Between Mi Casa y Su Casa 

A search of State incorporation databases and the complete IRS online database of exempt organizations have as yet found no evidence of a corporate existence of the Genesis Trust or of its claimed tax-exempt status.  LSR has not yet received a response to a  request to the IRS for an copy of an exemption application under the name The Genesis Trust.  Perhaps Genesis nibbled the side of the mushroom that makes you very, very small.

The address provided for the Genesis Trust is 2104 S. Walton Blvd, Suite 5, Bentonville, Arkansas, an address shared by Genesis Senior Trustee Charles Rusk's mortgage business. In his recorded interview Rusk reported that attorney John Dodge of Springdale, Arkansas "drew up the papers creating the trust".  Mr. Dodge is corporate counsel and Vice President of Golf Entertainment. Dodge also represented the trust in previous litigation against AARO Broadband. Golf's Bolt was party to AARO litigation arising out of his sale of Utica Publishing to AARO.

Genesis Trustee Mel Robinson was personally represented by Dodge as recently as October 2001 in litigation against AARO.  A Robinson deposition obtained from public case records also reveals that Robinson's acquaintance with Golf's Bolt was more than casual.  Bolt and Robinson were in fact business partners in Bolt's Utica Publishing business. They may have first become acquainted at the El Reno Federal Correctional Facility during overlapping terms of imprisonment for mail and wire fraud charges. 

"No Material Relationship?" The information obtained by LSR and NWABJ points to there being no material difference between Golf and Genesis!  The Golf SEC filings regarding GECC's relationship to the Trust seem to be, plainly speaking, a lie. Given the additional information obtained by LSR and NWABJ about the principals of Golf Entertainment, that is not surprising.

The Mad Hatter's Tea Party Guests

Officers and Directors of public companies are public figures. As such, questions of their personal character and past behavior are legitimate concerns of potential investors in the company stock. Our investigation has uncovered information about the Golf and Genesis principals that should make potential GECC investors think more than twice before transmitting a GECC buy order to their broker.

Tim Brooker, CEO and Chairman of Golf Entertainment is somewhat unusual among the group of persons associated with Golf or the Genesis trust in that he does not seem to have a criminal record. Brooker does, however, have an interesting and colorful personal history.

According to internet postings and local sources Brooker was formerly active in the Washington County Militia, a self-styled right wing paramilitary group inclined to see UN troops and other sinister threats behind each of the numerous trees of NW Arkansas. Brooker expressed his extreme political and religious views publicly through a now discontinued ratio talk show.

Brooker participated in several lawsuits against Sheriff Andy Lee of Benton County, one alleging improper disposal of county property, another alleging that the Sheriff improperly received a disability pension from his former employer.  Both suits were ultimately dismissed.  Brooker is also reported to have been involved in a virulently racist public campaign protesting Lee's decision to house predominantly African American state prisoners in Washington County jail facilities.

According to Federal court and Bureau of Prison records James Bolt, COO of Golf Entertainment has a criminal history of conviction for mail and wire fraud and making material false statements to a Federally insured bank.  The activities leading to these charges were described in 1985 by the 10th Circuit Court of appeals as involving "an enterprise which included a group of imaginary employees, engaged in developing imaginary products and services, located in various imaginary locations." The court further stated "central to Bolts business operations was the use of fictitious checks drawn by Bolt on a non-existent bank account at the National Bank of Liberia." Bolt was sentenced to forty months imprisonment at the El Reno FCF.  During his imprisonment his unending Habeus Corpus petitions filed pro se earned him a nomination as the poster child of those wishing to limit Federal inmate Habeus Corpus rights. 

Bolt was released from Federal prison on parole, but was returned to El Reno to serve the remainder of his original sentence following his conviction of Arkansas theft of property charges resulting from his stealing computer equipment from his employer.

While publishing his on-line newspaper Bolt's company also hosted a web site entitled www.theauthorities.com. The site held itself out as a for-hire "dirty tricks" service and included a how to manual for right wing groups to use in harassing their real and perceived enemies through the legal system. Prominent on the site was a page featuring a "Judge Budd Bewee."  Bewee was listed as the "wire editor" of Bolt's on-line newspaper and as registered agent for Bolt's Chronicle Media Group. Bewee, who seems to be a fictitious person, is also listed as the registered agent for a defunct Arkansas corporation located at trustee Rusk's address.

Genesis Trustee Melvin Robinson was imprisoned after being convicted of Federal conspiracy, mail, and wire fraud charges resulting from a multi-state scheme to sell phony insurance to trucking companies. His prison term at El Reno overlapped Bolt's term and they subsequently became business partners. Robinson was also arrested in Washington County Arkansas on bad check charges from neighboring Ft. Smith.

Charles Rusk, Senior Genesis Trustee has a number of felony bad check convictions-although for small amounts-and has filed for personal bankruptcy.

On April 8, 2002 Golf filed an 8-k announcing that they had decided on April 5, 2002 to replace their previous auditor and retain James Slayton, C.P.A. of Las Vegas Nevada to conduct their 2001 audit. With speed rivaling that of the Road Runner, Mr. Slayton was able to complete and file his audit-including review of the December asset transfers-by April 15, 2002.

Mr. Slayton had reason to work quickly.  In January the SEC charged him with materially misstating the financial reports of a company for whom he served as auditor. In March 2002 the SEC charged him with additional auditing violations concerning another company. Ominously, the March charges included inappropriately valuing Costa Rican assets acquired by a start up company through a stock purchase.  In June Mr. Slayton was fined and banned from future SEC work.  Golf chose to remain silent about this event even after it was disclosed on public message boards.

John Dodge, Golf Corporate Counsel and Vice President, has no recorded criminal history.  However, the concept of conflict of interest seems foreign to him. Dodge has recently represented the Genesis Trust and trustees individually in suits against AARO Broadband. He subsequently defended Golf Entertainment from a securities fraud suit filed by Genesis against Golf.  Although the nominal attorney for Genesis in this action was a Richard Hardwicke of Bentonville Arkansas, Genesis Trustee Rusk stated in a recorded interview that Dodge drew up both the suit and the subsequent settlement papers.  Mr. Hardwicke declined to comment when asked if he had merely lent his name to the action and settlement.

Michael Daniels of Las Vegas Nevada is a Golf Board member.  He previously served as CEO of Golf when it operated as LEC Leasing.

In June 2000, the US Department of Justice released an indictment in conjunction with "Operation Uptick", a multi-year stock fraud investigation involving all five of New York City's organized crime families.  LEC leasing was specifically named in the indictment as an organization that had entered into "corrupt agreements" with the indicted organized crime figures during Daniels' tenure as CEO. When contacted by LSR, Daniels denied any knowledge of or involvement with the DOJ indictment, claiming that the FBI had never contacted him and that he heard of the indictments and subsequent convictions of the crime family figures only after the fact.

Stock promoter Scott Wilding of Pembroke Pines, Florida, hired by Genesis in May, 2002 reports that Director Daniels was given 50,000 shares of Golf Entertainment stock as a "finders fee" and that he had discussed paying Daniels a finders fee for bringing him the promotional campaign. Wilding reported that those negotiations broke down.  Daniels  denied receiving any GECC shares.LSR  has  in its possession an e-mail from Daniels providing Wilding with his account wire transfer instructions.Daniels, currently serving as President of Golf's partially owned "leasing division" and the head of its Audit Committee states that he has never met any of the Golf principals or his fellow board members. LEC Leasing's Nevada charter has been revoked. 

Director Daniels filed for personal bankruptcy in 2001.   Arkansas Real Estate agent Annette Gore, who also serves on the Golf Board, filed personal bankruptcy in August 2002.  

In addition to illustrating a pattern of criminality and financial irresponsibility among many key persons involved with Golf, these facts make in unlikely that the FCC could ever approve Golf as a broadcast license holder.  FCC regulations prohibit issuing a broadcast license to a company in which significant shareholders or officers have felony histories. As stated in Golf filings, the FCC also considers the "character" of corporate Officers and Board members in making a license grant decision.

A Very Merry Fraud Suit Day To You

Brooker and Bolt seem to have been somewhat casual in their approach to due diligence prior to the transaction leading to their acquisition of Golf Entertainment. Golf's Annual Report filed April 15, 2002 disclosed as a "material subsequent event" that failure to comply with Delaware filing requirements had led to potential Delaware franchise tax liabilities of approximately $300, 000. The company dismissed this liability in the report, stating that the amount it believed it owed was approximately $500

Further disclosed under "legal proceedings" was that the company, through its ownership of improperly dissolved subsidiary LEC Leasing, was subject to sales tax judgments in the States of New Jersey, Oklahoma, and Kentucky. These judgments totaled approximately $225,000 with accruing interest.  The company vigorously asserted that it did not believe it owed these taxes, even obtaining an opinion from the former auditors that prior period earnings did not need to be restated to reflect this liability. The company stated that it would vigorously defend itself against such claims. The $185,000 New Jersey liability was listed as a particular concern, however, since its execution would require the company to seek injunctive relief from the attachment of its assets while the liability issue was resolved.

The Genesis Trust did not seem to take these disclosures so lightly. On April 30, 2002 the trust filed a complaint against Golf in the Western District Court of Arkansas alleging that Golf had violated federal anti-fraud provisions by not disclosing these liabilities on December 31, 2001 when the trust accepted a "sealed bid" from Golf for the assets allegedly owned by the trust.   (We will leave to the reader's imagination the New Year's Eve sealed bid process)

The trust further alleged that previous reporting deficiencies of Golf resulted in the trust having an impaired title to 1.375 million unrestricted common shares of Golf. The trust disclosed that they had obtained these shares by the conversion of an $85,000 face value convertible debenture that they had agreed to purchase from former Golf CEO Farrell for $150,000. Farrell-presumably the prime offending party through his failure to disclose these liabilities- was not named as party to the complaint, which demanded $1.678 million in actual damages as well as punitive damages. Attorney of record for the Genesis suit was Richard Hardwicke of Bentonville, Arkansas.

While Golf CEO Brooker may have influence with higher powers, Genesis Trustee Robinson seems to have the power of divination.  On May 2, 2002, two days after the suit was filed, Robinson signed a document waiving a fairness hearing on a settlement of the suit.  A settlement was in fact filed on May 6, 2002 and approved by Judge Larry Hendron. In the settlement Golf awarded The Genesis Trust fifteen million free trading shares in exchange for Genesis vacating their claim on the 3.75 million restricted shares owed them from the December 2001 sale and the trust's other claims for damages. This award approximately tripled the outstanding shares of GECC and made Genesis the effective owner of Golf. Neither the filing of the suit nor its prompt settlement led to a Golf 8-k filing, although most investors would consider this information material to a decision to purchase the company stock.

The discovery of this suit and its settlement terms resolved the issue of a June 2002 inquiry to Golf's Transfer Agent that revealed that Golf had approximately twenty two million shares outstanding rather than the previously reported seven to nine million shares. What remains unresolved is why Golf would so quickly settle a complaint based on Golf Annual Report liabilities that the company asserted were non-existent or grossly overstated.  Director Mike Daniels, for example, told LSR staff that the New Jersey issue "could be settled for $15,000."

NWABJ staff asked Genesis Trustee Rusk about his understanding of the complaint.  His response was that "John (Dodge) drew up the suit." Genesis attorney of record, Richard Hardwicke declined to comment on his role in the suit and its settlement.

Was the suit simply a sham transaction designed to transfer free trading shares to Genesis and allow their sale into a promotional campaign? If the Trust is truly an IRS tax-exempt organization, was this series of events also intended to avoid taxes on proceeds from the sale of shares?  Those questions remain unanswered but in Wonderland you never know what to expect.

Painting the Roses Red

In the Disney interpretation of Alice in Wonderland the Red Queen's subjects knew that a failure to fashion the environment to her liking could lead to dire consequences. Perhaps taking a clue from the Lewis Carol tale, Genesis wasted no time in using its newfound stock currency to spiff up the image of a cash-strapped company with limited revenues and a questionable business plan.

If Golf was bitter about the suit and settlement, they did not show it.  On May 14 CEO Brooker issued an announcement that the company had been approached by "a group of shareholders" and offered 750,000 shares of stock and $60,000 in cash in exchange for Golf's producing a Hispanic audience targeted video entitled "Welcome to America."  Brooker stated that the cash would be used to retire debt and that the shares would be returned to the treasury. Brooker further stated that the transaction's revenue value to the company would be reflected in the second quarter of operations and determined " at the time of the tender". GECC is delinquent in its second quarterly filing, so the actual value assigned to the transaction is unknown.

A "group of shareholders"?  We would give long odds that the group consisted of Genesis trustees Rusk and Robinson. This appears to be another artificial transaction designed to allow Golf to show substantial revenue growth (Brooker estimated the value of the contract at $250,000) based on the receipt of Golf shares during a time when they were being promoted and were expected to increase significantly in value. Golf issued subsequent promotional releases announcing the repayment of a $60,000 convertible debenture held by former CEO Farrell and the beginning of production of the video.

On June 6, 2002 CEO Brooker made the dramatic announcement that it had completed a "fully subscribed" five million dollar stock offering consisting of five million units at $1.00 per unit. Each unit consisted of one GECC share and a warrant to purchase an additional GECC share for $0.05. This placement, described by Brooker as "inked", would have required GECC to approve an increase in its last reported twenty five million authorized shares. 

According to Brooker, a $2.5 million dollar escrow deposit secured the funding. Brooker also stated that an additional private placement that would close later in June would allow "GECC to activate its step by step blueprint to span the nation with Spanish language TV stations." Not bad for a six-month-old company with a single unpaid-for low power TV station in Springdale, Arkansas. 

LSR attempted to locate the group behind the private placement announcement, "O. Burce (sic) Mikell and Associates" of Warrior, Alabama. No business listing was found for the group, and a search of the Alabama corporate database revealed no corporation, partnership, LLC, or fictitious name registration for such an entity.  The Warrior telephone directory did contain a listing for an Oscar B. (Bruce) Mikell, whom LSR contacted.

Mr. Mikell was summoned to the telephone by his mother.  He confirmed that he was the Mikell listed in the press release. Mickell stated that he was a real estate agent who had done some "offshore" deals for companies in the past.  He could not explain why he was willing to pay one dollar per share for GECC at a time when it was trading for approximately ten cents on the open market.  When asked who held the supposed $2.5 million escrow claimed by Brooker, Mikell stated that he could not remember.  Golf has made no further comment on the completed or pending private placements.

LSR has subsequently learned that an  "interim funding" loan announced by the company in February 2002 was a similarly unsupported claim.  The funds were to have come from 1st Metropolitan Mortgage of Bentonville, Arkansas, which was headed by Genesis Trustee Charles Rusk.  A 1st Metropolitan corporate spokesperson contacted this month regarding the loan replied, "ask them to show you the non-existent paperwork for the non-existent loan," and stated that such a loan "was never discussed or considered."  We have since confirmed that Mr. Rusk is no longer affiliated with 1st Metropolitan, a mortgage lending company. He is also reported to have subsequently resigned as a Genesis trustee.

On June 14, Golf issued an additional release trumpeting its reactivation of the LEC leasing division and naming Daniels as President.  The stated business plan was to lease digital broadcast equipment to television stations attempting to comply with FCC digital broadcast signal requirements.  Brooker stated that the division would be capitalized through a planned $10 million "private stock placement." LEC President Daniels, who revealed to LSR staff that he was to receive a significant ownership stake in LEC, stated in the release that he hoped to rapidly grow the division to its former sales level of $30 million in annual leases. No mention was made as to whether LEC's sales tax liability issues had been resolved. GECC then announced that shareholders would receive "gratuity" shares of LEC resulting from a spin off of the corporation. GECC has made no subsequent comments on the private placements that would supposedly capitalize LEC. LEC's Nevada charter continues in "revoked" status.

GECC's promotional campaign bore fruit.  Golf shares soared from $.03 to as high as $.145 and almost nineteen million shares changed hands in May and June. By contrast, shares traded up until May totaled approximately two million. Traffic on the major stock Internet boards increased dramatically, with a number of posters aggressively promoting the company as the "next big thing."  Some of the posters seemed quite intimately aware of internal company information.

Alas, the paint was not to stay on the rose. Starting in June a number of public revelations made the effort to "tell GECC's story" look more like putting lipstick on a pig.

Off With Their Heads!

Relations between promoter Wilding and the trust soured rather quickly.  On May 15, 2002 Genesis sent Wilding a letter announcing that his contract was terminated because his sale of shares received in exchange for his promotion activity had caused a precipitous share drop. The trust further accused him of defrauding the trust and demanded that he return all unsold shares and pay the trust $.12 for shares sold.  Golf's John Dodge also wrote a letter to Wilding on that date accusing him of damaging the trust. Wilding told LSR that he felt he had honored his contract and did not comply with the demands.

Wilding reported that Dodge and Bolt called him on several occasions in July threatening to name him in a stock fraud complaint unless he contacted John Dodge of GECC and made arrangements to immediately pay Genesis Trust $100,000 and purchase one million shares of Golf on the open market . LSR asked Wilding how Bolt and Dodge of GECC could negotiate with him on behalf of an entity with which GECC had previously claimed "no material relationship." He stated that he did not know. Wilding was subsequently named as a conspirator in the amended "RICO" suit filed on August 16, 2002.

Golf message board postings took a decidedly negative turn in early June 2002.  Internet posters, particularly after Golf announced and filed its "Civil RICO Suit", discovered and publicized numerous facts about COO Bolt's criminal history.  The posters also discovered and revealed that the company's outstanding shares had increased to twenty two million, and that the Genesis Trust, supposedly the holder of only 3.75 million restricted shares, had in fact paid over two million free trading shares for promotional services. Other revelations included the close ties between Genesis and GECC, and details of the suit and settlement between Genesis and Golf.  Company supporters-many of whom we suspect were company officers, directors and employees-declared an Internet version of total war, threatening "bashers" with lawsuits, imminent arrest, and likely imprisonment. The company issued a gag order to their transfer agent, preventing investors from discovering additional dilution of their equity.

Golf's shares began declining in value in mid-June and continued a slide through July and August.  Volume declined precipitously with the exception of brief increases related to company press releases, including an August announcement that the now spun off LEC was "expanding its vision"-although not apparently to the point of paying its still delinquent Nevada filing fees. As of this writing the stock is trading at $.014 per share on almost no volume. The company has missed its deadline for filing its Q2 financial results. 

Despite the company's fanciful claims of a "conspiracy" to short their stock and drive the price down, we believe that objective and documented information of corporate chicanery, the company's ill advised legal threats and actions, and a trust with fifteen million newly minted shares to sell are more likely explanations of the current share price. Golf Entertainment is in our opinion a company far more concerned with selling shares than with building a business. The techniques used by Golf to develop a market for their shares went far beyond hype and puffery. They demonstrate to us a clear intent to mislead and defraud shareholders.

Perhaps Golf's business plan was in reality similar to the one described by one of the felonious brothers in the movie, Raising Arizona.  The escaped convict outlines a planned series of bank robberies from Arizona to Texas and an escape into Mexico "or until we get caught.  Either way, we're set for life!" he concludes.

Like the Cheshire Cat, most OTC-BB stocks simply fade away.  We predict this one will have a rather more dramatic ending.