Jack Fletcher Prather – From a Withdrawn US Commodity Brokerage Registration to

Boiler Room Management in Southeast Asia

The US-citizen, Jack Fletcher Prather, was born on May 31, 1969.

He is registered, according to public records, with historic residencies at the following US residential addresses:

- Dallas, TX- Alpharetta, GA- Duluth, GA- Atlanta, GA- Daytona Beach, FL- Neptune Beach, FL

He is indicated to presently reside part-time in Phuket, Thailand.

Prather is, among others, recorded as company executive of the now inactive (involuntarily dissolved) Florida-based company, Precepts Inc. He is also a registered agent of the Georgia-based company, Woodstone Investment Inc.

The FTC charged in June, 1992, by a complaint, that International Assets Trading Co., Inc.; a California corporation, with company officers Garry Schaeffer (a/k/a. Michael Taylor) and Thomas V. Lopes (a/k/a. Jack Prather); misrepresented the market value of their gem stones, falsely represented that they were excellent, low-risk investments likely to yield substantial profits upon resale, and that they were sold at or close to the

prices at which consumers could liquidate them through a market sale.

The FTC's complaint also alleged that they made the following false statements: blue bullet point gemstones comparable to those the defendants sell have experienced substantial price appreciation in the recent past (when, in fact, they have not); blue bullet point the gemstones they offer for sale are rare or are in short supply (when, in fact, they are not); blue bullet point gemstones purchased from them are excellent, low-risk investments and that customers can reasonably expect to resell the gemstones at a substantial profit within astated time, e.g. 18 months; (when, in fact, the prices charged by the defendants for the gemstones make it virtually impossible to realize a profit within the 18 months) and; blue bullet point that they have been in business for seven to 15 years and that they operate under guidelines of the California Attorney General.

In 1994, the Federal Trade Commission settled upon the case vs. International Assets Trading Company Inc., with the following statement:

“The Commission obtained a settlement with International Assets, an investment telemarketer, to settle allegations that it falsely represented the market value and risks of its gemstone investments. The settlementprohibits similar deceptive conduct in the future and requires, in any future marketing of gemstone investments, that the company make certain disclosures to inform consumers of the risks involved.”

Schaeffer and Lopes have agreed to refrain, in marketing gemstones or any other investments in the future, from falsely representing any factor likely to affect a consumer's decision to invest. Schaeffer was also a defendant in another FTC case involving a similar scheme; thus, his settlement with would prohibit him from marketing any investment product by telephone in the future.”

Lopes a/k/a Prather would be required to post a $50,000 bond before marketing investment products by telephone in the future and if he went into business with another defendant in this case to telemarket investments, the bond requirement would increase to $100,000. The charges against International Assets Trading still were at that point in time pending.

Jack Fletcher Prather acted as Associated Person, Lynch & Company Inc. in 1995. His registrations as Associated Person and NFA Associate Membership were withdrawn in September the same year.

Mr. Prather also registered as Associated Person with Dunhill Financial Inc. In 1995. Three years later, in 1998, his registrations as Associated Person and NFA Associate Membership were withdrawn. During this period of time he met with Mark Stephen Hutcherson, with whom he was going to re-join with later on concerning boiler room operations out of Southeast Asia.

In 1998 he both registered as Associated Person with American Research & Trading Inc. and had his registration and NFA Associated membership withdrawn before the end of the year.

In 2005, Messrs. Hutcherson and Prather were tied to a fraud scheme involving an Internet technology company, Netspan International, whose shares were sold to foreign investors by a boiler room calling itself The Roth Group. Michael Lee Port, an American who was charged and convicted in Singapore in connection with the stock sales, told investigators that Hutcherson was involved in the operation.

Netspan said it had been approached by Jack Prather, who offered to help raise money for international expansion. Under the deal, the shares were to be marketed by The Roth Group.

Intel received from the London Police investigation of the Netspan-The Roth Group case demonstrate that Jack Prather, together with a US investor, Kurt Kaiser, were identified as the person(s) who introduced Netspan executives to The Roth Group. In April 2005 an officer of the Singapore Police Fraud Squad contacted the City of London Police concerning large money transfers received by DBS Bank in Singapore, in an account in the name of The Roth Group. The account holder, a US citizen Michael Lee Port, male, and50 yrs old at that point in time, was arrested and received a 24 m sentence. Once released from Singapore jail he is confirmed to have travelled to Bangkok and been immediately appointed a position to manage boilerroom operations in the Philippines on behalf of the US citizen, Glendon Richard Bullard.

Prather was identified by the Netspan executive, Moradi-Garakani, to have stated to live in Asia and that the company, Premium Placements Management, was referred to as his company. Premium Placements Management is verified to be a boiler room with Account Openers' located at office space in Kuala Lumpur rented from the Malaysian-registered company, Tlway SDN. BHD. The loader's department was located in Bangkok.

The first contact between Moradi-Garakani and Prather occurred in October/November 2004, and the former party believed The Roth Group had offices in London, and Ireland, because they were getting so many Irish investors, although The Roth Group always called them, not the other way round. The Netspan executives never met anyone from the The Roth Group, but did sign a contract with Premium Placement Management. Although The Roth Group said they wanted to raise $5million, Moradi-Garakani stated that Netspan only needed to raise $250,000-$500,000 for marketing. He was told The Roth Group had a database of existing clients who had already invested with them, and they would call these and introduce a new technology, which was Netspan.

It was put to Moradi-Garakani that The Roth Group were selling shares at £1.60 each (it had though been publicly stated that Netspan received 33 cents per share), but he stated he had no knowledge of that nor hadheard of receiving accounts registered with DBS Bank in Singapore or the Spanish banks receiving funds. More than 80 percent of the investor money traced by investigators went to The Roth Group bank accounts in Spain and Singapore, an investigator said. A lesser amount, roughly $175,000, went to a Netspan's account in Atlanta (US).

The Netspan executives, Samuel Wood and Hijat Moradi-Garakani, were given six month prison sentences, in combination with being suspended for 12 months, and fined 5,000 after pleading guilty to deceiving investors, at the Southwark Crown Court (London) in 2007.

Indeed, Prather, internally referred to as “6 pack jack”, was at that point in time residing in Asia. To be more specific, he is confirmed by witness reports independent from one another to have acted on full-time basis asthe Floor Manager of the fraud syndicate's boiler room operations out of office space in Kuala Lumpur.

The boiler rooms with Account Openers' offices located in Kuala Lumpur and Pilau Penang included the following:

- Premium Placements Management (active in 2003-2005; co-managed in partnership with the US-citizens,Mark Stephen Hutcherson, Jack Fletcher Prather, Paul Richard Bell, and Glendon Richard Bullard). Duringthis period of time, Paul John Hayward, is observed by several witnesses to arrive to the boiler room officesin Kuala Lumpur at regular intervals.

- Warner Beck Inc., Emmerson-Bennett Trading Group Ltd., Jameson West Associates Ltd., Carver Brooksand Associates Ltd., Cahill and Audleman, McBain Baxter Holdings Ltd.,The Stockton Group Ltd., The RothGroup Ltd., The Danier Group, Leberman & Steine Ltd., Montesiore & Lutz (active in 2004-2006).During this period of time, Account Openers were working out of office space rented from the Malaysiancompany, Tlway Texco, in Kuala Lumpur (Menara TA One, Wisma Goldhill, Phileo Promenade) and in PilauPenang. The US-citizen, Mark Stephen Hutcherson a/k/a Hutch, entered into the boiler room scene in KualaLumpur with financial resources in 2004 and made a deal with the Tlway Texco company executive, TabarrukAbdullaev. A split occurred between the boiler room principals, Hutch-Hayward, and the US-citizen, PaulRichard Bell, whereby the latter party proceeded on his own and continued to sell the inflated object,SouthFork Development.

Witnesses confirm that Prather was co-responsible for the training and sales manuscripts used by the boiler room's Account Openers. A manual has been captured from within the boiler room administration, stated by informants to have been produced by Prather, “Dialing for Dollars – Handbook for Executives”:

These excerpts from the manuscript include a number of obvious misrepresentations as well as plain lies to be communicated to the investors: (1) the company had no valid licenses in any jurisdiction to trade and sell stocks and securities, (2) the company was never represented in Hong Kong or the Wall Street (the Admin Staff were rather instructed to gather weather forecast reports from Hong Kong every day to pretend to be located in Hong Kong), and (3) there are no verifiable records that the company yielded any returns at any time to any investor (it is estimated, based on examined cases of reconstructed loss data, that the investors have collectively lost many hundred million US dollars through these companies).

The handbook (p. 32) also includes detailed information about the commission rates per calendar month:- up to 50K posted = 10% commission- up to 75K posted = 15% commission- over 75K posted = 20% commission

The lay-out of the Menara TA One boiler room office is presented below:

One of of the boiler-room employees at the Menara TA One office in Kuala Lumpur in 2004-2005 was “Alex” from Romania:

He is stated to be one of of few Account Openers, under management by Prather, who made good incomes. He is rumoured to have been hard-working and was later upgraded to have responsibility for a boiler room office in the Philippines.

In 2001 it is indicated that “Alex” was trapped by a set up conducted by Prather and Associates. The end result was that “Alex” was thrown out on the street without belongings. The fraud syndicate is confirmed to have arranged with similar set up versus employees who become too literate of what is actually going on and/or actively become a nuisance to continuous and secret boiler room operations.

Jack F Prather is recorded with a recent job as Sales Agent/Director of land holdings and properties in Phuket through the company BluePrint Unique (http://www.blueprint-unique.com/Agent-Properties/Jack-Prather).

This company is using the following address according to a hotfrog press release: 73/50 M. 3 Kamala Kathu, Phuket, MA 83150; p: +66 (0) 76 - 385 - 964 f: +66 (0) 076 - 385 – 965

When checking this link, http://www.blueprint-unique.com/Company-Agents/BluePrint-Unique, it is seen that a reference is made to a female property sales agent, Trisha Miller. This lady is linked to Internet reports & accusations indicating a social security and property fraud case spanning from Malaga (Spain) to Thailand and elsewhere, including the "Architect", Michael Earle.

Trisha Miller is further recorded as registrant (WhoIs data) of the website, www.blueprint-unique.com, using an address in Malaga, Spain. She is also listed as registrant of the domain, moder-design-magazine.com, using the email address tmiller@blueprint-unique.com (demonstrating the connectivity to Prather and BluePrint) and then recorded with the address: 18/39 Moo 6 Layi-Nakalay Road, Kamala, Kathu, Phuket, NA 83150 TH, which is close to the address used by blueprint-unique.com.

It has been verified that Mark Hutcherson and Jack F Prather are (were) involved in the boiler room promotion and sales of the US-company, Energy Exploration International, Inc. (www.eei-inc.com) incorporated in Texas in Dec., 2006. The company actively promotes sales of rights to oil and gas wells and stated future profits. The company has detailed information on its web page about its stated drilling and exploration activities in Texas US. The original CEO of EEI, Inc. was the US-citizen, Curtis A. Best, and the company's original business address was: 9330 Amberton Parkway, Suite 1275, Dallas, TX 75243 USA. INTEL received from State Federal Authorities in Texas informs that Mr. Best stayed in Thailand during a 6-months period in 2004. It is hypothesized that his partnership with Mark Hutcherson and Jack F. Prather originates from this time.

Here is an extract of one of the emails (June, 2006) that the US investigative journalist, Chris Carey, receivedfrom a tipster anonymously, which reveals internal discussion about how to respond to the EEI Inc. case story put up on sharesleauth.com. Note that in the first email, EEI's director, Curtis Best, acknowledged that Hutcherson ("H") and Prather were owners of EEI.

-- On Sun, 6/22/08, Curtis Best<cbest@eei-inc.com> wrote:From: Curtis Best <cbest@eei-inc.com>Subject: FW: ArticlesTo: jackprather1@yahoo.comCc: shutch540@gmail.comDate: Sunday, June 22, 2008, 5:22 AMWe all need to get together and come up with the best scenario for all involved. I think we need toall call the attorney while I am here and all three talk to him get his opinion and make the neededchanges before this article comes out. Jack H and I have already spoke about all of us becomingequal partners and we also need to figure out the best situation with paying the money back to the2 of you. We all need to get together on this asap.Curtis

From: John Phillips [mailto:jphillips@eei-inc.com]Sent: Saturday, June 21, 2008 8:29 PMTo: 'Curtis Best'Cc: 'Curtis Best'Subject: ArticlesCurtis,As best as I recall in our talks with Bruce and Michael is:1) Disclosure of Mark's Commodity Future Trading Commission charges MUST BE MADE to allinvestors while he is a stockholder. If he is not a stockholder in the future you will not have to disclosethat in future PPM's. Carey will undoubtably use this information against us. Our options are: try to buyhim out and go forward with past disclosures, Put the company into a bancruptcy/recievership stagewhere you are no longer the President and move forward with a new company or just resign outright.2) Along with the above, Carey will undoubtably make the claim that we have been running aboilerroom in Thailand - the PRIMARY focus of his past articles. See attached mentions highlighted inyellow - but read the whole articles. Both Mark and Jack are mentioned in those articles and they canbe tied to the investment together. Carey will make the connection of the 2 of them going back foryears. Least impact is to try and maintain the relationship through Pace but to be able to say we sawthe problem and took action by buying them out. Bruce gave this a slight chance of redemption so thatwe could continue our business. But he seems to want you to abondon EEI and make a fresh start byyourself.3) Carey will probably also make allegations of name changing and illegal activity. That could involveothers from the past in Thailand .jppJohn P.PhillipsEnergy Exploration International, Inc.Phone: (214) 570-0280 x102

CONFIDENTIAL/RESTRICTED INTEL:The information in this document contains strictly confidential information intended only for the use by legalauthorities. If the reader of this document is not the intended recipient, you are hereby notified that anydissemination, distribution, or copy is strictly prohibited. If you have received this document in error, please notify usby email.Cell: (214) 334-1279Fax: (214) 233-0402eMail: jphillips@eei-inc.com

Here is another set of extracts (Sept. -Nov., 2007) that indicate that Prather not only had hidden his ownership in EEI, but that EEI's income tax returns falsely listed him as a shipping consultant. Unfortunately, they're in reverse order, so it's best to start reading from the bottom:

WALKER MILLER CPA <cpa4046@bellsouth.net> wrote:From: "WALKER MILLER CPA" <cpa4046@bellsouth.net>To: "'jack prather'" <jackprather1@yahoo.com>Subject: Walker Miller CPA response===>RE: 1040 2006Date: Wed, 28 Nov 2007 22:37:49 -0500That is a difficult question to answer. There is a multitude of things that affect the ability to deduct a loss.· What type of entity generated this loss? S Corp, Partnership, Corporation, LLC, etc.· What is your basis in this entity?· Are you “at risk” for this business?

· Are you actively working in this business or passive in your work efforts for it?· Is the entity reporting you flow thru on form “K-1”?Let me know above and I can tell you whether or not it would be OK to amend?Hope you had a great Thanksgiving.Walker

From: jack prather [mailto:jackprather1@yahoo.com]Sent: 11/28/2007 11:36 AMTo: cpa4046@bellsouth.netSubject: RE: 1040 2006Walker - I was talking with Hutch the other day and we just got our year-end back on EEI our companywith a 600k operating loss- so he was saying as 45% owner - i should redo my taxes and not pay thatbill - and refigure - I do not want to set off a personal audit though - your thoughts"WALKER MILLER, CPA" <walkermiller@bellsouth.net> wrote:If you sold stock/investment in the Corp, then the gain would be taxed at 15% now, and since you are aresident of FL, there would be no state income taxes.At 15%, you would be looking at $120K in tax. The alt min tax may apply but most likely not. Wouldneed to do a "model" to calculate. Can it wait til after 10/15/07?I'm facing that deadline.I would not do a house in name of corp. Never good to have appreciating assets in a corp (C) name.double taxation.WFax me the 8879 at your first opportunity so I can efile.Thanks

From: jack prather [mailto:jackprather1@yahoo.com]Sent: 09/29/2007 12:44 AMTo: cpa4046@bellsouth.netSubject: RE: 1040 2006Will confirm all details ref. EEI - sure C corp - showing no profits - would be just what paid out in salary.50k last year and 120k this year = no wells hit yet - so no profits.16CONFIDENTIAL/RESTRICTED INTEL:The information in this document contains strictly confidential information intended only for the use by legalauthorities. If the reader of this document is not the intended recipient, you are hereby notified that anydissemination, distribution, or copy is strictly prohibited. If you have received this document in error, please notify usby email.If I was to have a BVI corp - which I sold - and wanted to bring funds to USA (say total around 800K)¨-what would be my best route - as far as tax liabilities?- Should I seperate - for instance have anotherBVI purchase a house - keep it in the BVI's name - then bring in balance into bank accct. - payingtaxes? and what tax rate could i get away with ?ThanksJ

"WALKER MILLER, CPA" <walkermiller@bellsouth.net> wrote:Has EEI filed a tax return? If so what type? That would be the only thing to be concerned about.If it is an S Corp with a profit, then you would have to pickup your prorata portion of income flowing outof it. If it a C Corp, then not applicable to you.Is this a US based corporation?WNeed you to fax me a signed form 8879 from your packet of items in the pdf I sent to you.

From: jack prather [mailto:jackprather1@yahoo.com]Sent: 09/28/2007 12:29 AMTo: cpa4046@bellsouth.netSubject: Re: 1040 2006Walker-Hey great thanks - my only question is - me being down as an "import consultant/shipping services" -since am actually an owner of EEI - could/would that be questioned or is irrelevant? but expensescorrect and are all on my american express credit card - travel etc. as biz expenseall the best,Jack

A US lawsuit case from 2006 against EEI, Inc. includes information that a company, Asia Communication Group, was supposed to finance oil and gas drilling explorations. The company, Asia Communication Group Limited, is registered under Hong Kong jurisdiction, incorporated on January 20, 2003. The two company directors are:- Paul Richard Bell, with stated address: 97/12, Mahogany Tower, Room 15A, Sukhumvit Soi24, Khlong Tang, Khlong Toey, Bangkok 10110. Mr. Bell has been using the same USpassport as referred to above.- Christina Lynn Bell, with stated address: 97/12, Mahogany Tower, Room 15A, SukhumvitSoi 24, Khlong Tang, Khlong Toey, Bangkok 10110. Mrs. Bell has been using a US passport046448263.

The company formation is registered via the company agent, Popular Registration Limited, inHK, used by a quartet of signing company directors