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March 28, 2023


Investment information for the new generation

MyECheck (MYEC) is overpriced and legal action alleges massive fraud

If you’ve been investing in MyECheck (MYEC) over the last year because you think it’s going to revolutionise the electronic payment industry, you’re the one they’re referring to in ‘a fool and his money are soon parted’..

And if you’ve been in it because you think it’s going to revolutionise the marijuana payment industry, let’s just take a moment to give you a collective head shake.


MyECheck is not healthy. A look at its just released financials shows a company that has lost plenty of cash while doing negligible business, putting out news releases about ‘new deals’ with banks and businesses that rarely poke their head above four-figures in revenues.

The company has a $25 million market cap which, even if you could wipe out its $5 million annual loss, would take well over a quarter of a century to be covered by revenues at the current trajectory.

But you can’t wipe out that loss because it’s real, and it’s made of executive salaries and massive stock giveaways. How massive?

Ah, therein lies the rub.

Papers were filed in a lawsuit less than a month ago that accuse the company’s auditors of, and I quote, “securities fraud, negligence, aiding and abetting money laundering, aiding and abetting wire fraud, and aiding and abetting breach of fiduciary duty,” among other things.

And it’s a real page turner!

Among the things this civil suit alleges, there’s an accusation that the MYEC CEO got a friend to start Greenpay LLC, personally wiring it 5k of opening funds, then pushing MYEC funds offshore into the company from where it bought up a bunch of luxury real estate, before then buying Greenpay as a subsidiary of MYEC.

Heady allegations. Also alleged, that the company gave the CEO a ton of stock and undervalued it by about $180 million, and that it has deprived the claimant of stock certificates and all manner of merry weirdness.

Page 24 is a beauty, where it alleges MYEC posted an explanation of the Greenpay purchase on Facebook, claiming another company, Sierra Global, had actually started Greenpay and “created a plan for a payment app for the MJ industry,” duly bringing MYEC $1m in sales, when, in actual fact, the CEO’s buddy had started the company with cash from said CEO, and it owned little more than a condo in Vegas and some beachfront in Hawaii.

I don’t know how valid the claims in the legal filings are, but they’re damning as hell and suggest a boat load of financial fuckery in the company and, worse, at its auditors.

In conclusion, the filing accuses MyECheck of being run like the frat in Animal House, with the CEO signing fake, backdated stock agreements, and the action seeks $3.5 million in reparations from the auditors.

Why the auditors and not the company itself? Presumably because the company doesn’t have enough money to cover $3.5 million.

The company has lost 60% of its value over the last year, and the most recent financials show a drop in annual revenues, even as expenses are blowing out like crazy.

Cash used in operating activities

Net cash used by operating activities for the year ended December 31, 2015 amounted to $1,106,172, which mainly consisted of the following: a decrease in accounts receivable of $55,984, an increase in payroll expense of $81,100, an increase of accounts payable and accrued expenses of $88,183, an increase in depreciation and amortization of $203,062, an increase of stock issued for services of $31,600, an increase of stock compensation of $1,810,783, an increase in loss on debt conversion of $1,198,100, an increase in bad debt expense of $202,200, an increase in amortization of IP of $431,426, a decrease in deferred revenue of $24,275 and a decrease of fair value of derivative liabilities of $903,798.

MYEC’s Executive Vice President and COO bailed this week, just before the financials landed, with the reason being, “due to the Company and Mr. [James T.] Fancher’s inability to reach a mutually acceptable agreement concerning Mr. Fancher’s compensation after the expiration of his employment agreement. The resignation is not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.”

My ass, it isn’t.

Meanwhile, MYEC which continues to call itself “the leader in electronic check solutions for Internet and mobile payments” despite not doing a whole lot of business on that front, is suing four companies for the return of a boatload of stock it says were fraudulently given out.

How much? Oh, only more than half of the public float.



Ugh. This thing is a trainwreck the likes of which can only be got away with on the OTC, home of the unaudited and the overpromising. If you like fintech stocks, there are many that have more upside without the swamp crotch that is this company’s downside, and if you like weed companies, maybe try one that’s actually doing business.

Just not this one. MYEC is geared to fail, and is succeeding wildly on that front.

But if you’re looking for a Waikiki AirBNB option this summer, contact the CEO and do a deal.

–Chris Parry

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