March 26, 2011: Seems that Milton "Todd" Ault III aka Milton "Charles" Ault III has regurgitated his ZLUS into a scheme designed to sucker the investing public into believing that, this time, he actually has a winning idea. We've heard this before. In this latest reinvention of his expertise, Uncle Miltie is now an oil and gas man and it seems that somebody is believing it. Well at least they are believing the spam emails being disseminated touting this latest turn of events. Twice in the last year, the price per share of ZLUS has spiked to about 6 tenths of a penny only to fall back to its more proper neighborhood of the .000s.
The purported oil and gas schemes are obviously an attempt to take advantage of the surging commodity prices and the appetite the penny market has for wishful thinking plays that will make good on promises of finding oil and gas where others have failed.
In the just past 3 1/2 years, Ault has morphed ZLUS into the financial services business with wholly owned subsidiaries including an investment banking firm, an asset management company, and an Alternative Trading System" as well as "majority and significant minority investments in real estate, healthcare, energy, consumer products and services, media and insurance" (you mean all these businesses and investments failed?); then the Adult Entertainment business (i.e. porn production); then back to a trading firm with a 10,000 sq. ft. trading floor; a distributor of energy drinks; an online retailer; before most recently settling into the oil and gas business. Talk about ADD.
The truth is that everything Ault touches turns to crap. He is always looking for the sizzle of the day even though he has no idea what he is getting into. A recent investigation shows that not only has he been found liable for fraudulently using funds obtained by an outside investor, but has had at least two Unlawful Detainer actions filed against him for not paying rent on his homes. Ault has filed for personal bankruptcy because of the millions of dollars in judgments on file against him for his fraudulent schemes. The dischargeability of his bankruptcy is being challenged by several of his victims on the grounds that his debts were accrued through the use of fraud, breach of fiduciary duty, larceny and embezzlement.
Hard to imagine making an investment that depends on the performance of this guy.