Echo Therapeutics Inc. – Platinum’s Modus Operandi, Beechwood, Black Elk, and the List 

Goes On and On, Saving Echo, Case Dismissed?

Taking Echo Therapeutics, Inc. Out of the Vacuum and Placing it Into the Continuum of Platinum’s Piracy

Our goal in that article was to tell the Platinum story as it is told by some of its victims. While the case cited was indeed dismissed, the narrative encapsulates an algorithm of sorts for serial fraud. We feel the Platinum Partners’ many frauds mirror Madoff’s uncanny ability to remain under the radar or escape attention. We contend that when taken as a whole, the amount of money funneled through the Platinum funds, the charities that have received money and laundered the reputations of Platinum’s partners, and the friends and family still defending people like Mark Nordlicht, Bernard Fuchs and Murray Huberfeld, the fraud is comparable to that of Madoff.

Echo Therapeutics

Echo Therapeutics

Unlike Madoff, Platinum’s schematic and far-reaching history is simply spread out over years and years, across continents, hedged among a multitude of investments, divestments and corporate raids, hidden under what appeared and continues to appear to be legitimate enterprises and cleansed by very public and theoretically “philanthropic” charitable endeavors. In the Mark Nordlicht case, we would argue that the Westchester Torah Academy is one such charitable endeavor.

When carefully scrutinized, the Platinum story has resulted in family, friends, and investors receiving extraordinary profit, “too good to be true,” but enticing. It has also resulted in loss and despair for the visionaries who believed in the companies in which Platinum invested. Nearly all of the Platinum schemes have inevitably lead to corporate decimation for the companies involved.

While the profit and loss side may for many readers feel like a clouded review of the nature of the investment beast, it may very well be. The corresponding fraud is not. The pattern followed by Platinum in its corporate savagery is laced with a certain elegance, joie de vivre, that is hard to miss. Platinum Partners has destroyed tens if not hundreds of small companies over the years. They have profited in “investment situations” based upon the death of patients in healthcare and nursing centers, facilitated by information provided by the owners of those centers. They have profited from insolvency of sports figures using a system of nearly impossible to repay loans on future earnings. They have called promissory notes and shamed payments out of people vulnerable to enticement. In our view such is true of Mark Nordlicht’s current actions with regard to the Westchester Torah Academy. They have created alternative classes of stock to funnel assets and then destroyed the corresponding remaining class value. In sum, Platinum Partners’ partners have profited on death, whether it means corporate decimation, human mortality or football players’ inability to return their loans.

For the purposes of the information that follows, Mark Nordlicht, Bernard Fuchs, Platinum Montaur, Platinum Partners and their related funds and the various people and affiliates involved will be referred to as “Platinum Affiliates.” For the purposes of Echo in particular, Medical Technologies Innovation Asia, Ltd. will be referred to as “MTIA” or the “Strategic Partner”. Echo Therapeutics, Inc. will be referred to as “Echo,” or the “Target.”

For the purposes of legal disclosures, the information found and the resulting opinions and conclusions are based upon publicly available documents and sources. We did nothing more than piece together a puzzle, conduct interviews with people, review Court documents and submissions, review public information related to companies like Black Elk, Echo, Cellceutix and others. If we have uncovered non-public information it is by accident and we do not offer any advice nor do we seek to profit from that information.

As an investment matter, we make no statements herein about the validity or viability of investments, though it is obvious that we take the position that any investor who invests in Platinum Partners or any of its related funds is, at this point in time either unskilled or ultra-savvy, depending upon the nature of the investment. The Platinum Affiliates on the corporate side, in our view, are insolvent and will ultimately bleed every investor dry through multiple bankruptcy proceedings. The Platinum Affiliates on the partners’ side are in our view extraordinarily wealthy holding assets in the many millions, if not billions, hidden in family trusts, endowments, charitable donations (which are then miraculously converted into loans), other collateral investments or trusts for children. The Platinum affiliates, bar none, are pirates. They will ultimately bring financial ruin to each and every company, investment, strategy and fund with which they come in contact, at great financial profit, leaving destruction in their wake.

Very specifically, we make no recommendations about the investments related to Echo Therapeutics; though this article will illustrate that there are those hoping to save the company. We make no judgment on that count. We are only providing information as it was provided to us through an anonymous party.

The only thing we believe without a doubt as to certainty, is that the dismissal of the case cited in our earlier article exemplifies the savvy of the players. As we see it, the dismissal is in its very essence another elegantly staged road an pony show aimed at giving the Platinum Affiliates legitimacy, case dismissed. We are hoping those readers who have followed us on our Platinum undertaking, get a clear picture of the Platinum Affiliates for what they are, serial corporate raiders, savage fraudsters and elegantly connected profiteers. We hope to help those who have lost money see some returns.

In essence, we are attempting to clear the smoke and the mirrors to encourage law enforcement to stay alert, pay attention, the patterns are staring you in the face.

We will begin with the following premise: The Patterns for each example of the Platinum Affiliates’ strategy are exactly and precisely the same; and Platinum Partners, through Principles Mark Nordlicht, Bernard Fuchs and related Platinum Affiliates, have hollowed out the same path as they always follow when targeting a public company:

Employing deception and questionable trading practices to take categorical control of Company operations and decision-making, misleading shareholders into believing that their interests are aligned, and strategically divesting Target Company of its assets, moving those assets into remarkably well concealed Platinum related entities, and walking away with Target Company assets, leaving all remaining shareholders with nothing but the shell of a company that once represented and strived to achieve what these shareholders envisioned.

Here’s how it all works:

Platinum Affiliates’ (“Corporate Raiders”) invest in Target, demand a Board Seat and subsequently – either outrightly deceive public shareholders while leveraging their existing investment in Target.

They dump blocks of stock into the market while simultaneously making public statements about the existing Board and Management members whom they want to remove or whom they ultimately hope will take the fall for their own practices.

Once completed, Corporate Raiders claim to save Target from an impending liquidity crisis, either by investing more equity (think Black Elk tender offer) or by creating a new tranche of shares, all contingent upon obtaining additional Platinum-imposed Board Seats and/or a Platinum-imposed strategic partner (usually in China).

Platinum simultaneously takes effective ownership of the Board and over time hires Executives who take direct

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