Sector 10 (SECI) has had nothing less an amazing past couple of days as the share price has risen from $0.084 on Tuesday (2/6/18) to a whopping high of $3.35 on Friday (2/9/2018) and closed at $3.10 on 51,010 shares traded. I had to break out the calculator and sure enough, SECI was up a jaw dropping 4,000% at its peak today over the last 3 days of trading.
SECI is currently in a 9 year court battle against Dutro Company and its affiliated persons/parties
New evidence to be released Monday, will be a dagger to the defendant
In January of 2009, SECI was nearly $440/share
Company may only have just 305,778 Outstanding Shares!
It all started back in 2007 when Sector 10 went public via “reverse merger” and soon after made one of the biggest mistakes of their lives by getting in bed with Dutro Company and offering them a manufacturing agreement. Dutro brings on Reality Engineering and over the next year or so an additional affiliate or two come into play and are all brought in by Dutro. Later, they propose a merger or acquisition with Reality Engineering and Red Rover. (Red Rover later becomes Incisive and part of Valley Inception). By mid 2008, Section 10 has done a thorough review and decides NOT to pursue a merger with Reality Engineering,
Time passes. It’s business as usual with the group until later in the year SECI starts getting delays in production from Dutro and related partners. The company decides to seek financing with Bank Of America and work the San Francisco Fire Department in preparation of the 2009 launch of their PLX-3D System.
Reality Engineering again offers its assistance and SECI gives them a limited agreement. Here is where things get interesting as the limited engagement is capped at $50,000 and approved by the Sector 10 Board. As part of this engagement, Lee Allen (runs Reality Engineering) receives further access to the PLX-3D system and other confidential Sector 10 information. Lee Allen invoices Sector 10 for $180,000 and refuses to provide any record of Reality Engineering’s alleged enhancements to the software. Sector 10 intellectual property and equipment was NOT returned after the engagement ends.
As 2009 continued, apparently Mr. Allen was working negotiations with other investors including Bank of America, and even stated he was the Sector 10 COO. If that wasn’t enough, SECI claims Lee Allen told Bank of America the PLX-3D software was now in control by Dutro and affiliates. SECI had no idea this was going on behind the scenes.
It gets uglier, as Dutro and Reality Engineering were producing similar products, possibly enhanced versions of Sector 10’s products. After failed negotiations and cease and desist requests for product, tooling and data, the manufacturing stopped, and what little product was returned was found damaged and unusable.
Discovery Of The Technology Theft Migration
Investigations by Sector 10 has to led to some interesting findings. During the early years, it reads as if the failed merger with Lee Allen’s Reality Engineering led to two years moving equipment and proprietary information, unauthorized, from the Dutro manufacturing plant in Logan, Utah to their offices in Camas, Washington, and shared info with Rex and Jack Smith.
Now the Smith’s (father and son) are linked to such companies and accomplishments such as co-founder of Hotmail, Valley Inception, Proximex, Oregon State University and an associate of tech analyst David Bunzel.In 2008, Bunzel founds PSIA (Physical Security Interoperability Alliance) which leaks Sector 10 proprietary information as an open source tool to the market. Now, PSIA served as the perfect umbrella to give the ILLUSION of an open source tool. Evidence shows that PSIA carefully selected the shared/leaked information to shift an entire market, while parties behind the scene worked vigorously on rewriting the original copy under the expert guidance of Silicon Valley patent lawyer Raj Abhyanker.
“The leaks were carefully orchestrated to hide the core technology and its theft, while presenting it as a wide-spread market shift.”
By late 2009, evidence shows that with the support of Jack’s father Rex Smith, Valley Inception and Incisive (lead by Jack Smith’s Hotmail colleague Richard Burright) spring into operation, effectively changing the direction of Proximex from a video server business to being the self-proclaimed leader in the PSIM market after integrating Sector 10 technology. Armed with years of Sector 10 research, trade secrets and extensive data, Dutro affiliates—later joined by John Gargett (now with Trusys)—move to create and lead PSIM Systems and related operating standards.
By 2010, multiple affiliated companies were using Sector 10’s technology and multiple lawsuits start.
In 2010, Sector 10 found themselves under an avalanche of lawsuits designed to distract the company with hopes the company would fail and allow the affiliates to continue on with the technology. To make things worse, the assigned judge in Logan, Utah is related to the Dutro family and is advised and proceeds to move things to court in Salt Lake City.
In 2011, with the help of a Texas law firm and later a NY one, they go after Bank of America in San Francisco who later in 2012 fire everyone who was involved with Sector 10 dealings including vice -president Jason Meyers.
In 2013, a couple firms together convince Sector 10 to move the case forward on a contingency basis in Salt Lake, and this goes on until 2015 when Sector 10’s lawyers abruptly abandon the lawsuit, leaving it in shambles.
Interestingly enough, one day before abandoning the case, the exiting Sector 10 lawyers remove several key Dutro affiliates from the lawsuit (with prejudice), including John Gargett and Trusys. This move was NOT authorized by Sector 10 and possibly had direct dealings with the defendants.
For years Sector 10 tries to get things going but Dutro and affiliates keep pushing for dismissals until a break in October of 2017, where Whistleblowers uncover new evidence on how the defendants strategized to monetize and globalize the stolen technology. As of December of 2017, hundreds of new documents where in the hands of their attornies along with State and Federal agencies.
To summarize, evidence shows a publicly traded company (Sector 10) was defrauded and its technology illegally laundered before passing it on to another publicly traded company, then ADT/TYCO. All parties involved accumulated wealth, while thousands of Sector 10 investors lost everything, and yet others invested in the lie.
Social media has created a wonderful platform that now allows companies and persons to keep eager follows updated with the latest news and happenings without having to do an official press release or old fashion email alerts. We touch on 2 accounts on Twitter in particular.
First mention, applauds a small cap financial related account by the name of “SHORT SQUEEZED” @ShortSqueezed1 who alerted its follower base of 6300 at just $.0875 a share, giving his loyal investors a possible 3600% winner. Their bio claims they scan the market for potential movement, and admirably found Sector 10 early! Through private message, the account owner added,
” I found the SECI play because of a filing that had hit, their sc 13ga filing that hit on 2/07/18. I looked at the company’s profile, the share structure and from what I seen seen… I liked. I then shared it with a couple of traders that did some due diligence on the stock for me, as we began to discuss SECI, it wasn’t until later that we felt like this could be a stock with real potential — I owe the dd credit to the traders Lee. Papa and Jenny for uncovering the catalysts for this trading opportunity.”
The other account, is PSIM Tech Fraud @exposedfacades whom are helping expose this fraud to the world. Look to them to stay abreast on up-to-date info about SECI via twitter. They commend everyone via a recent tweet, acknowledging their gratitude for over 10,200 people learned of their story.
From Pennies to Dollars in 48 hours$SECI > 36 BAGGER, Up +3,602.85% so far
This one is a head scratcher for me. I’m torn between a few things both good and bad. I will do the bad first. One, the fact that court has been dragging on for 8-9 years? Will investors and the company have their day? If so, when? Another personal red flag is whether to “chase” a company that is already up 3-4000%? I am not trying to be negative and am just speaking out loud as I write this article. All I can think of is “wow”, this has enough drama for a movie script. So, now moving on to the stuff I like. The outstanding share count is so small–only a few hundred thousand! The float has to be even smaller. Now, yes, the company is up thousands of percentage points but even at $3.50 a share the market cap is less than $1 million. What are they worth? Valuation is always a challenge, and is their technology no longer relevant, or will expanded tech come back to them. Will a payday from ill gotten gains from would be technology thieves be the pay day? So many questions, but this company could have lost out on hundreds of millions if not billions of dollars after going through this mess. I feel it is safe to say, that a winning judgement against multiple affiliated parties whom have benefited and still benefit from this technology, could result in millions, tens of millions or even 100 million dollars. With an OS of 305,778 according to the most recent 10Q… you do the math! These guys were $440 a share in 2009 and $1000 in 2006. We will continue to cover SECI as things develop.
In 2010 they were working with Apple, yes APPLE, to develop Sector 10 technology in their iPhones and iPads. (read below)
Disclosure: PSInvestor has NOT been compensated for this article, as our goal is to cover the hottest penny stocks at the moment in the OTC Markets. Also, we do NOT have a position in the company. To read our FULL DISCLAIMER, click here.