Ann: Suspension from Quotation, page-42

How the scheme worked .Many buyers were tricked , For example , many buyers bought a million shares post the consolidations, for $1,000 . That is a million shares times a tenth of a cent equals $1,000. As a consequence of the consolidations , they actually paid 7,500 times more than pre-consolidation buyers paid. It is the equivalent of you paying $7,500,000 for your $1000 of shares., that is , Seven and a half million for you shares. That is how much the dilution effect of the consolidations.

150 /1 consolidation times 50 /1 consolidation equals 7,500 times $1,000 equals $7,500,000.

Effectively everybody had their money ripped off them by the consolidations . Or post -consolidation holders , bought their shares for Seven thousand five hundred times more, that pre-consolidation holders paid .
This is why the insiders held the convertable notes, because the company knew they were going to undertake this strategy of these massive consolidations.
This is how the original holders had these shareholdings reduced to the value of a few dollars.
So those in the know were made aware of the massive dilution that the company was going to undertake.
But while ripping off the original holders, they encouraged the convertable note takers , to lend them money and they would eventally make money , by converting to shares and selling them on market to new buyers . I think these Comvertabe Notes were for the insiders , because remember , they were paid 33 per cent interest for years . Some of therse convertable note holders , would have got their total amount loaned to the company , back in interest at 33 per cent cumulative. Shareholders paid for these massive returns .
But in the end , the company wouldn't pay these loans out. Rather these convertable notes, would be converted to shares , at incredible favorable terms and then sold to new buyers on the share market .So the company didn't even pay this loan money back !
This is how they were able to pay their CEO and board rediculous amounts of money , while the company had almost no income .
In this way , it resembled a pyramid scheme . That is you had a whole lot of people paying vastly different prices for the shares. But it wasn,t what they paid that was the problem , it was what they were actually buying , that is a vastly depreciating asset , a CLZ share or a derivitive of a CLZ share , a Convertable Note. These derivitive Convertable Notes should be outlawed . And the Circus rolls on .