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EVLI: Act Two; Scheme Two

After several Pump & Dump campaigns fail to generate any interest in the stock, Everlert reboots with a new con

October 7, 2014: Immediately upon the launch of Everlert's (EVLI) inaugural Pump & Dump campaign back in February, we issued our report which revealed the crooked connections behind the penny stock scam, including then President Robert Hymers' involvement in a credit fraud scheme headed up by former baseball great, Lenny Dykstra.  As we explained in that report, Dykstra was sentenced to a three year prison stint, while Robert Hymers snitched his way to a reduced charge. The revelation had the expected effect and penny stock pigeons stayed away from the stock in droves. It also brought us empty threats of litigation from an attorney who habitually represents these kind of schemes.

Apparently, the added exposure prompted the removal of Robert as President in a proverbial sweeping of the dirt under the rug. Alas, the dirt is still there. Make no mistake about it, Robert is still in full charge. One only needs to call the company as an investor at which point the call is transferred to him.

The effort to defraud the public was begat from the Los Angeles area postal service business (think UPS store) founded and run by Robert's kin, David Hymers. Over the course of the stock promotions, other fly-by-night augmentations to the business have been claimed, all in the interest of getting someone to buy this pitiful stock. The most recent out-of-left-field throw-in is an involvement in forensic x-ray scanner supposedly intended to aid coroners. We expect that to be forgotten in short order.

With each new announcment, came a new Pump & Dump campaign, but nothing could create any real interest in the stock. Even the phony paid prognostications of popular penny stock fraud augmenters BUYINS.NET and WealthMakers.com couldn't draw much more than a yawn from a leery public. Share prices sank from the git go and continue to languish in the doldrums.

EVLI Stock Performance Since the Pump & Dump Scam Began

With dreams of EVLI stock providing the Hymers' and their partners with financial rewards quickly dissipating, the scam required a rethink. They needed only to look as far as their Board of Directors to concoct a new con.

That new farce was announced on Monday. The launch of Everlert Entertainment, LLC, "a newly formed, Limited Liability Company", is supposedly a new division of EVLI. According to the press release, "Everlert Entertainment will be seeking Investment Capital in the amount of Twenty-Five Million United States Dollars ($25,000,000.00) to produce several 'world class' entertainment projects that Everlert Entertainment expects will generate substantial revenue."  This announcement has more holes in it than a block of Swiss cheese.  For one thing, there is no registered LLC with the name "Everlert Entertainment", at least not yet. So right off the bat, we have a lie. And of course, there will never be any $25 million investment.  Who the hell would actually give these con artists $25 million? The entire enterprise is a fairy tale.

Mark Blankenship
To further the ruse, EVLI announced that newly appointed Director and Executive Vice President of Mergers and Acquisitions, Mark Blankenship, would be the new LLC's President.  Blankenship's appointment to the Board was announced on June 16, 2014 to much fanfare, touting a legal career of over 30 years, after which he supposedly retired a prominent civil rights attorney. His role as "Impresario for the artistically influential Blankenship Ballet and Blankenship Cabaret Theater", was also prominently featured and, one would assume, supposedly his qualification as head of an entertainment company. Within that press release, EVLI Director, John Taylor, boasted that, "Under the competent and insightful leadership of Mark Blankenship together with his numerous celebrity relationships, we are confident that our pipeline of opportunities will help bolster our financial position," We'd bet that he has no celebrity relationships.

The entire announcement is a pack of lies concocted in what is sure to be yet another futile attempt to dump insider stock. We are already seeing evidence of that, as new promotional emails began hitting our Inboxes last night.

For one thing, the Blankenship Ballet and Blankenship Cabaret Theater were little more than traveling shows, setting up shop where ever they could, such as a church and a broken down hotel in downtown Los Angeles. The enterprises haven't existed for the past two years, according to a couple of former performers with the group. This 2008 Los Angeles Times article seems to appreciate the efforts of this "self-described controversial Riverside attorney whom the local press dubbed 'lawyer for the underdogs' and who abandoned the profession in 2006, six months into a nine-month suspension from the practice of law." and that "sports a braid that reaches to his mid-back" together with his middle-aged ballerina wife. Perhaps the The Times is right to do so. But so what?  We hardly see anything that makes us think we are talking about the next head of MGM here.

Where the company's laudatory announcements fail badly (read: lie) is in the analysis of Blankenship's legal career. He did not have a 30 year legal career. As Blankenship is only 54 years old now and gave up practicing law in 2006, when he was 46, that would be impossible. Furthermore, he did not abandon the profession nor did he retire. At least not without controversy. He was forced out in the face of disbarment. Blankenship was never a "prominent civil rights attorney". He was little more than a crook. At least that is what one can glean from his record with the California State Bar.

Mark Blankenship's legal career was hodgepodge of malpractice, In April of 2000, he was suspended from the practice of law for ten counts of misconduct in three cases, where among other things, he effectively abandoned clients and misappropriated assets. According to the record, "Blankenship purchased property from a client’s son, signed four promissory notes in favor of the client, but did not make the payments. He also asked the client for a personal loan of $115,000, was to record two deeds of trust but never did, and when he obtained $273,000 for the same client in another matter, he asked for and received a $273,000 loan from the client. No payments were made." In other words he screwed his clients.

In February of 2006, Blankenship was suspended for three years and ordered to make restitution to his clients after he agreed that he was guilty of another 17 counts of misconduct.  It was during that suspension, when he was facing even more charges of misconduct, that he "voluntarily" resigned, knowing full well that disbarment was a real possibility.

Our SEC attorney informs us that placing a disgraced attorney on the Board of a public company could subject that company to a suspension, especially if the admonishments by the State Bar are not disclosed, as they have not been in this case. That fear should be secondary to what is the reality here. An investment in a company that already has management with a criminal past and now adds a disgraced lawyer who consistently displays a disregard for his sworn responsibilities, is a bad bet. The previous Pump & Dump campaigns have already revealed the agenda here.  The addition of Mark Blankenship to the team could not possibly mean that there is any change to that agenda.