Complaint Review: David Scott Watkins - Ft. Lauderdale Florida

David Scott Watkins (“Watkins”) is a con man who induced numerous people to lend money to a Company he controlled, CCMC.PK, and to invest in its common shares based on false and misleading information, deception and fraud.  We supply you the following information to assist you in evaluating your dealings with him. 

Watkins, SSN (((redacted))), born July 4, 1960 in Little Falls, New York is President, Chief Executive Officer, Chief Financial Officer and a Director of CruiseCam International, Inc. (Securities & Exchange Commission File Number: 000-13846), EIN 75 1433 000 and former Stock Market Symbol – CCMC.PK (currently delisted).  He is also President & CEO of Mobile Data Holdings, Ltd, Hong Kong and Mobile Data Trust, LLC, USVI, among other companies, which utilize the technology developed by CruiseCam International, Inc. with money obtained from defrauded investors.

Mr. Watkins is divorced, but he occasionally resides with his parents Charles S. and Donna Watkins (((redacted)) at (((redacted))) Stuart FL 33499.  His Company mailing address was the office of Driver’s Alert, 5340 N. Federal Highway, #100, Lighthouse Point, FL 33064, Tel: 800 443 9600.  The Company’s attorney, Scott A. Koerner (((redacted))), told me that Watkins is the Registered Agent even though he does not live in Florida.   The address for the registered agent is 901 S Federal Highway, Suite 300, Ft. Lauderdale, FL 33316.  Watkins’ cell phone number is (((redacted))).  His e-mail was (((redacted))) and is currently scott@sakpllc.  His former home address was (((redacted)))) Bloomfield MI 48323.  I was told he recently moved, but I do not know his current address.  It can be found through North West Airlines where he is a frequent flier (((redacted))).

History - On March 10, 2004, Watkins acquired Strategic Alliance Group (STGE) as part of a reverse merger and received 23,000,000 common shares of the newly named company, CruiseCam International, Inc., in return for merging an insolvent company he controlled, GRP, Inc. and its subsidiaries into STGE.  Certified financial statements for the merged company were prepared as of September 30, 2004 and 2005 and filed with the SEC.  These statements showed that on 9/30/04 Watkins owed the Company $342,490.  By September 30, 2005, the certified financial statements reported that he then owed the Company $432,907.  Thereafter, Watkins issued himself interest bearing Convertible Promissory Notes dated September 30, 1998 ($129,176.71), September 30, 2004 ($28,510) and September 30, 2005 ($84,333) for what he called past due salaries from GRP, Inc.  He subsequently issued himself two additional back dated promissory notes.  Watkins then began marketing unregistered securities to investors, mostly senior citizens like Mr. Herbert Stein (97), Burt Jacknow (82), Stanley Fisher (84+), Carl Kruse (75) and many others. 

By July 28, 2008, Watkins had reversed all the debt he owed the Company through accounting entries and claimed the Company owed him $267,000.  These amounts were impossible to verify since accounting files for GRP, Inc. did not exist.  The Notes to Watkins had not recorded as outstanding liabilities in the consolidated 9/30/04 and 9/30/05 audited financial statements, which Watkins attested to and submitted to the SEC. 

Beginning on 1/30/06 Rick Risinger (((redacted))) wired $125,000, $3,600 and $8,193.60 to CruiseCam International, Inc.’s bank account. Mr. Risinger also wired the following amounts personally to Watkins for unregistered shares:

10/27/06 –$ 3,200

10/30/06 –   1,800

10/31/06 – 25,000

11/10/06 – 20,000

               $50,000

All of the above was lost by Risinger.

In October of 2006, Watkins met with and gave numerous unsophisticated Florida residents, mostly senior citizens, a Business Plan describing “an array of CruiseCam International, Inc. investment opportunities for qualified investors or institutions”.  All information including the statement “we have invested $750,000 in a multinational, multimedia advertising campaign” was false.  At the time Watkins stated he owned 23,940,000 restricted shares of the Company and that only 57 million shares were issued, of which 49,000,000 were restricted. He promised large returns and raised hundreds of thousands of dollars from this group.  Each year thereafter, Watkins continued to issue himself as many as 36 million shares at a time for no consideration and then sold the shares to third parties.  He ultimately issued himself over 15 billion shares while wiping out all other shareholders through reverse stock splits.  See attached Shareholder list showing 900 registered investors wiped out. In addition, see the CEDE reference on this listing that represents thousands more investors.

On 12/19/06, Stanley Fischer wired $20,000 to Watkins personally for 1,000,000 unregistered shares of common stock.  Fisher’s 1,000,000 shares are now worthless as is the other $30,000 in shares he and his children subsequently purchased.  See his postings on Investors Hub to get a real feel for what Mr. Watkins did to the 80+ year old and others.

On 5/9 and 5/17/2007, Henry Zemia wired to Watkins personally $6,500, $33,333 and $10,117 for unregistered shares.

Many unsophisticated people invested in unregistered restricted shares and the number of outstanding shares rose to over 492,000,000 by February 2008.  A 40 to 1 reverse split on October 8, 2008 wiped out much of the investment of these shareholders. A second 100 to 1 reverse split on January 19, 2010 further reduced their investment and the final 900 to 1 reverse, declared on May 28, 2010, wiped everyone out except Watkins, his attorney, Mark Solomon, the Secretary of the Company ([email protected]), Kevin Blain ([email protected]) and his investors at the Q Group in Vancouver, Canada.  Q Group gave Watkins $122,000 in return for convertible preferred shares and directed his activities for some time. On June 7, 2010, Watkins issued himself 15 billion common shares (per current Island Stock Transfer, Inc. CCMC Shareholder List) and substantial amounts of convertible Preferred Shares for which he has not paid one cent.  Nor did he pay income taxes on the transaction. 

Watkins also disseminated false and misleading information about the Company, through press releases, in an effort to increase the price of the stock and then sold the overpriced stock to unsuspecting investors in the public market place. Florida shareholders defrauded directly by Watkins, who hold worthless shares in CruiseCam International, Inc., include Richard Altomare (((redacted))), Herbert Stein (((redacted))), Michael Schneider (((redacted))), Stanley Fisher, his son and daughter (((redacted))), Adrienne Josephson (((redacted))), Ardis Heiman and Burton Jacknow (((redacted))), Heidi Maso (((redacted))), Abel DeAnna, Celeste P. Cohen, Carl Kruse, Randy Grover (((redacted))), Miami Beach, FL 33140), Dr. Herman DeAnna (((redacted))), Douglas Isenberg (((redacted))), Lance Rader (((redacted))), Hollywood, Florida 33019), Olga Ortega, Denisse Quinones, Marilyn Charles (also lent money to company which remains unpaid), Mary Cerciello (((redacted))) - She lent money to company, sued and got a judgment and still has not been paid), Dr. Wayne Evancho, Cynthia Kruse, Joel Levy (((redacted))), Starburst Innovations LLC, Tachion Projects, Inc, LF Technologies, Warrior Girl Corp., X Finance Limited Partnership, Peter Anderson,  Christine Kruse and the estates of Silvia Kwasha, Marvin Ribotsky, Eugene Kaletsky, Michael Schneider and Alan Rader.  Those still alive will testify how Watkins presented to them a business opportunity that he said would make lots of money. They all lost their entire investments while Watkins drove a Porsche, wore a Rolex watch and boasted of having a 38-foot Bertram.  In addition, thousands of others who purchased shares in the market lost their entire investment in CruiseCam International, Inc. (CCMC.PK) while Watkins pocketed unreported income from the sale of unregistered shares.

Watkins sold hundreds of millions of unregistered shares of CruiseCam International, Inc. to unsophisticated investors.  His attorneys, Burce M. Prichett (((redacted))) and Scott A. Koerner assisted him in these matters and they have details of all the transactions where Mr. Watkins converted “debt” he claimed was owed to him by the Company to unregistered free-trading shares, and then marketed the shares for his own benefit through Hope Capital, Inc., 1 Linden Place, Suite 207, Great Neck, NY 11021 (516 498 9890) - $35,000, T. J. Management Group LLC - $154,999, Parker Anderson Investment LLC (Todd Violett, President), Source Capital Group, Inc. (Ted Flomenhaft - (((redacted))) Mazuma Holding Corp., Great Neck, NY (Curt Kramer 516 498 9890) - $15,000, Barclay-Omnia - $66,026.53, Sirocco Enterprises LTD, 8047 Heather St., Vancouver BC V6P 3R9, 604 565 1312 - $122,000 and to dozens of unsophisticated investors.  Prichett wired $40,650 and $19,400 to Watkins’ personal account (BofA #xx63) during July 2008 for “repayment of debt”.

In fact, Watkins owed the Company $432,907 as reported in CruiseCam’s 2005 financial statements certified by David Hall, CPA on April 7, 2006 (100 Crescent Court, Suite 700, Dallas, TX 75201, Tel. 972.315.1315), attested to by Watkins, and submitted on Form 10-KSB to the SEC.  The Company has not filed any periodic reports since it filed a Form 10-QSB for the period ended December 31, 2005 in June 2006.  As of June 21, 2010, the company’s stock was quoted on the Pink Sheets but got delisted because Watkins failed to meet the SEC’s filing requirements.  It now trades on the Grey Market.

Watkins, who originally received 23 million shares of CruiseCam for “past due expenses and salaries” from the reverse merger of GRP, Inc. and its subsidiaries into Strategic Alliance Corp. in July 2004, issued himself 70,000,000 shares during 2006, 11,000,000 on 8/24/07, 36,000,000 on 10/11/07, 10,000,000 on 11/21/07, 65,652,000 during 2008 and billions of shares thereafter.  Watkins has sold tens of millions of CruiseCam International, Inc. shares for his own account and still had 62,462,000 shares before issuing himself preferred shares convertible into 2,400,000,000 more common shares at the end of 2008.  His method was to convert past due debt he claimed was owed him by the Company for salaries into free trading common shares and preferred shares.  As of the latest stockholders list available from Island Stock Transfer (islandstocktransfer.com, 727 289 0010), Mr. Watkins has 15,001,667,004 common shares and many convertible preferred shares.  Not bad for someone who never put a penny into the Company and who has not filed income tax returns on his ill-gotten gains.

Watkins was working full time for Drivers Alert in Lighthouse Point, Florida for a period of time, drawing a salary from them and doing nothing for CruiseCam except selling shares for his own benefit, pocketing the proceeds and accruing his salary from CruiseCam.  He continues to associate the Company with Drivers Alert as can be seen by reviewing his Business Plan on cruisecam.com.   He currently has started a new company to work with Delphi, ATT and others, but keeps CruiseCam registered.

In another transaction, Watkins issued himself 1,287,000 Preferred shares convertible into 2,059,200,000 common shares.  The average market price on the days of issue was $.025 per share.  He planned to sell 1,600,000,000 shares to a merger partner who agreed to give him a long-term employment contract and keep him on as the President of CruiseCam International, Inc.  He received $60,000 for shares during 2008 from Starr Consulting, Inc., much of which he deposited into his personal account.  The merger partner’s associates also received 9.5 million free trading shares from CruiseCam International, Inc. and immediately began selling them in the open market, further depressing shareholder value.  The merger then fell apart.

During November 2009 Watkins issued himself 1,250,000 Preferred “A” – Voting rights 1600/1, Preferred “B” – Infinite voting rights shares, and Preferred “C” - $5/share certificates.  None of these shares were paid for by Watkins.

Needless to say, Watkins has received money from the sale of unregistered securities to unsophisticated investors; from shares he has given to himself and resold and from loans he and the company received from people like Herb Stein, Mary Cerciello, Carl Kruse, Marilyn Charles, etc. that he never repaid.  Proof of this can be found in bank statements with Bank of America. Watkins personally has accounts at Bank of America (aba # xx593) a/c # xx863 ($19,400 + $40,600 wired to him personally at the end of July 2008 by Bruce Pritchett, Esq. for “repayment of debt” and $1,000, $2,200 and $1,000 deposited by Carl Kruse on 6/18/08, 8/7/09 and 8/19/09 respectively) and had a/c xx523 at First Place Bank, aba # xx957  (Kruse, who originally invested $174,000 in the Company, also wired $6,000 to Watkins on 3/30/07 for additional shares).  Kruse has tens of thousands of additional expenditures for shares he purchased from the Company.  Kruse also lent the Company funds and is currently owed $200,000. 

The Company has two BofA accounts under CruiseCam International, Inc. (((redacted))).  CruiseCam also had accounts at First Place Bank a/c# xx395, aba# xx57), where substantial funds from investors were sent and withdrawn by Watkins for his personal use.  

Watkins changed CruiseCam’s transfer agent from Executive Registrar & Transfer, Inc. of Englewood, CO (303 783 9055) because the President of that company, Jack Donnelly, advised him he was going to go to jail for his illegal acts.  His new transfer agent is Island Stock Transfer, 100 Second Avenue South, Suite 705 S, St. Petersburg FL (727 289 0010).  It is run by one of his close friends, Carl Dilley. 

Robert A. Buono (((redacted))) was the former Secretary of CruiseCam International, Inc.  He signed what Watkins put in front of him until he realized what was going on and resigned.  His reason, e-mailed to Watkins on April 17, 2009, was “”I can no longer continue to support your position and the direction that you are and have taken the Company.”  The new Secretary is Kevin Lee Blain (((redacted))) who remains loyal to Watkins after receiving 200,000,000 common shares and an unknown number of preferred shares for his services. 

On December 16, 2009, Watkins increased the number of authorized common shares to 5,000,000,000 and Preferred stock to 515,000,000 and began his dealings with the Q Group of Vancouver, Canada.  Watkins issued approximately 180,000,000 free trading common shares and had them marketed through The Q Group.  He received approximately $122,000 from Q Group and issued himself more common and preferred shares, which assured that he remained in complete control of the Company, without ever making an investment.  Q Group subsequently got billions of free trading shares and Preferred “C” shares convertible into billions more common shares.  Needless to say all original shareholders from 1984 to the present have been wiped out except Watkins (who now owns 15,001,667,004 common shares) and his close associates.  His personal attorney is Mark Solomon, (((redacted))) of Ft. Lauderdale, who remains in the background while advising Watkins and who received 200,000,000 common shares and numerous Preferred Shares for his services.

As shareholders complained and threatened to take legal action against Watkins, he agreed to issue many who lost their investment Preferred “D” shares.  On August 14, 2010, he issued a “Modified Shareholder List” itemizing how many dollars of Convertible Preferred Shares each was to get.  No one received any shares as of this writing.  On June 24, 2011, I asked him if he was going to honor his previous promise and he told me his attorney had advised him not to.

CCMC also borrowed money from shareholders and issued Promissory Notes to numerous shareholders in 2007, 2008 and 2009.  All of these Notes, totaling over $100,000, are past due and the Company has not even paid the annual interest payments on the principal.  Note holders include Marilyn Charles, 75-year old Carl Kruse, Mary Cerciello (((redacted))), 97-year-old Herbert Stein (((redacted))), and 75-year among many others others. 

Watkins refuses to answer e-mails or phone calls and rejects certified mail from these people.

The story for the common shareholder is simple.  If you purchased 3,600,000 shares of CCMC.PK during 2008, you now have 1 worthless share.  People who invested $10,000 prior to 2008 also have 1 worthless share.  Watkins received much of the money from the sale of unregistered securities and failed to pay income taxes or even file income tax returns on his ill-gotten gains.

To the best of my knowledge, Watkins has never held a shareholders’ meeting and probably has not filed corporate income tax returns during the last eight years.  

The above information was summarized from documentation received from former bookkeepers, the former Secretary of CruiseCam International, Inc. and personal knowledge.  We will be pleased to furnish any or all of the documentation to you, if and when it will be helpful.