And here is a follow up from the same fellow after further DD:

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Some Due Diligence Findings

I wanted to look into the background of the management team. A web search pulled up a few items relating to the CEO of Silver Falcon, Pierre Quilliam. Not much pulled up for Alan Breitkreuz. One 2004 article I found was concerning the sale of a San Diego sports team called the Sockers. The link is below but here’s an excerpt of the part of the article relating to Pierre Quilliam:

Kalra and his partner, Pierre Quilliam, put the Sockers up for sale last week, Willmott said.

It's the latest in a string of troubled deals for Kalra and Quilliam. In December 2001, Kalra took over DICUT Inc., a security company in Georgia. Early in his tenure as CEO, the company accumulated net losses of $54,000, according to filings with the Securities and Exchange Commission. By September 2003, the company's operating net losses had grown to $7.75 million.

DICUT also was hit with a series of lawsuits and judgments, including payroll issues in small claims court and two breach of contract judgments of at least $400,000, according to court records. In 2002, DICUT was sued for $556,000 by Fifth Third Bank, which claimed the company made an improper business transaction to meet payroll, according to SEC filings. In December 2002, DICUT owed about $432,000 in delinquent payroll taxes

, only about half of which was paid nine months later.

Link: http://legacy.signonsandiego.com/sports/soccer/20041202-9999-1s2sockers.html

What it tells us is more about Dicut: it was a failed business run by Kalra who appears to have questionable integrity. Nothing is directly tied to Pierre but Dicut ended losing several million dollars while Quilliam was director and later CEO.

I wanted to investigate why Pierre and Allan formed Goldcorp Holdings and how it relates to Silver Falcon. In a 2003 10K report, there was something very interesting. Here’s the legal proceeding section:

March 6, 2003 10KSB/A

ITEM 3. LEGAL PROCEEDINGS.

On November 19, 2001, a legal proceeding was commenced in United States District Court, Southern New York, against the Company and Pierre Quilliam, President of the Company by Deborah Donoghue. Ms. Donoghue alleges that she is a shareholder in the Company, and seeks recovery on behalf of the Company of short swing profits allegedly realized by Mr. Quilliam from purchases and sales of common stock in the Company by a company that Mr. Quilliam controls. Ms. Donoghue also asserts a claim against the Company for attorney's fees incurred in the case. The Company elected not to respond to appear in the case on the grounds that applicable law indicated that the Company was not subject to the jurisdiction of the court in which the case was filed.

Link: http://www.secinfo.com/d13hfj.2e.htm

I did not find out the conclusion of the suit. However, the accusations can give us a clue to why Goldcorp Holdings was formed: for Quilliam to use it as platform to trade against Silver Falcon stock?

Other filings by Dicut can be found via this link:
Dicut SEC Filings: http://www.secinfo.com/$/SEC/Registrant.asp?CIK=1110505

From the Goldcorp Holdings website (http://www.goldcorpholdings.com/) we see their executive team is exactly the same as Silver Falcon’s:

Executive Team
Pierre Quilliam
Chief Executive Officer

GoldCorp Holdings, Co.
Allan Breitkreuz
Vice President Finance & Development
GoldCorp Holdings, Co.

After plenty of time to consider my questions, neither Pierre Quilliam or Investor Relations have responded. Phone calls relating to the type of questions I posed are rather worthless, IMO. You can be told anything on the phone that can be denied later.

My biggest concern was the nature of Goldcorp Holdings relative to Silver Falcon. Many OTC listed stocks that I have found to be scams involve two separate companies with officers/major shareholders involved with and controlling both.

Since there has been no response by Pierre Quilliam to my questions to say otherwise, I have no other information but what’s available on the web. What Goldcorp Holdings sounds like is a great way for Pierre and Allan to earn $1 million per year at the expense of Silver Falcon. Basically, the left hand (Goldcorp) tells the right hand (Silver Falcon), “you owe me $1 million”. The left hand also has the power to enforce default of the right hand. In a worst case scenario, Pierre and Allan, don’t pay the left hand therefore, the left hand takes back the right hand’s mining rights and Silver Falcon assets for pennies on the dollar.

There is nothing in the public record that proves to me that Pierre has run a successful public company that I have found. According to pinksheets.com Silver Falcon was formerly Dicut. Silver Falcon’s inability for over two years to move from the pink to the OTC market is a yellow flag. Fortunately, they are now reporting enough to have earned an OTC listing. Pierre is paying himself $125,000 per year to run Silver Falcon, which is on the high end of being acceptable, IMO. However, why is he paying his wife (or daughter) $85,000 per year? That kind of salary is on the level of a seasoned professional engineer. What value is she adding to Silver Falcon to earn this high level of salary?

I see no other solid purpose for Goldcorp Holdings to exist separately from Silver Falcon except to extract $1 million per year for the owners of Goldcorp. More than likely Pierre and Allan are paying themselves handsomely for their “service” to Goldcorp; I have not checked what their salary is. If Pierre and Allan wanted to bring value for shareholders, Goldcorp would not exist and all assets would be owned by Silver Falcon. This would make Silver Falcon more than a one trick pony and keep $1 million in cash flow to pay debt or grow production instead of going into a black hole for property “rent”.

For me, I will not be investing in or recommending Silver Falcon mainly because of Pierre and Allan being senior management of Silver Falcon and Goldcorp Holdings. I wish the best of luck to longs here; please only put at risk capital in Silver Falcon. Many investors get caught up in these types of stocks thinking they are going to retire early and ignore warning signs. Unfortunately, all too often the investment goes south and end up wiping out the investor who put his last dollar into the stock.