The same insider stock, one step closer to a tradeable, liquidatable asset at every hop — while the controlling identity stays concealed. The reporting CIK travels intact from MW Medical (CIK 1059577) through Davi Skin. Scroll to walk the chain (the diagram tracks each step); on a phone it shows the full chain at once.
Static companion: the complaint's scheme diagram (Figure 1–2) maps the three CIK-coded chains — CIK 878146 · CIK 1059577 · CIK 13156.71 open scheme diagram (PDF)
Tele-Lawyer, Inc. was Kyleen Cane's private Nevada corporation — the origin point of the scheme. It had no public market and its shares had no liquidity.
By merging it into the already-public Dynamic Associates on 12 Jun 2001, Cane converted worthless private stock into a publicly registered position with a CUSIP, without an IPO. Dynamic itself (incorporated 20 Jul 1989, SIC 6770 blank-check) claimed $30M raised but documented only $8.6M, and filed 134 SEC documents while running no commercial operations — a parking structure awaiting a reverse merger.
MW Medical, Inc. (CIK 1059577) was incorporated 4 Dec 1997 and spun out of Dynamic on 11 Mar 1998 by a 1:1 distribution14. CEO Jan Wallace; counsel signed as "Michael A. Cane."
Its commercial veneer was real federal money: Genesis Health Management ran up to 26 geropsychiatric hospital units across four states (LA, AR, MS, TN), billing roughly $2M/quarter — about $49.3M in Medicare, ~100% of operating revenue6. Management fees flowed to Cane-affiliated structuring entities. Other subsidiaries: P&H Industries (sold ~$5M) and Microthermia Inc.
The 12 Jun 2001 reverse merger renamed Dynamic to Legal Access Technologies, Inc. (LATI)2. A 153:1 reverse split wiped out 99.35% of the public float4.
The split was calibrated to produce exact family-bloc percentages: 5,354,997 shares (91.6%) landed with the Tele-Lawyer holders. CIK 878146 carries the predecessor shell forward intact.
After the merger, five "independent" reporting persons filed for LATI within 24 hours — Kyleen/Michael Cane 48.7%, mother Shirley Cane, and the Mekelburg holders — a coordinated bloc reaching 85.7% that was never aggregated or disclosed as a group.
Each filing sat below a disclosure line; three "unrelated" holders reported the identical 312,500-share block; all five were submitted by one EDGAR filer (0001075793, Cane Clark) on the same 18 Jun 2001 event date5. See the evidence table in this section.
On 22 Jan 2002 MW Medical filed a Chapter 11 voluntary petition13 (In re MW Medical, Inc., No. 2:02-bk-01090-RTB, Bankr. D. Ariz.)11. Wallace manufactured a $615,871 secured promissory note to become sole secured creditor18.
Under the confirmed Joint Plan of Reorganization12 she converted $375,000 of the note to 74,000,000 shares at $0.005 (74.1%), extinguishing outside equity19. The §1145 exemption then let subsidiary shells (MW Asia/Europe/South America/Fitness) be distributed to insiders without registration — later sold for $250K–$500K each.
MW Medical was rebranded Davi Skin, Inc. with outside investors Parrish Medley and Carlo Mondavi as cover; the CIK carries straight through. A 1-for-500 reverse split concentrated the float.
Wallace then asserted a fictitious $200,000 promissory note — already resolved in the bankruptcy — and on 3 Apr 2007 converted it into 2,295,388 shares routed to four Bermuda nominees, which the 10-KSB described as "unrelated third parties."20
Cane's shares — traced from Dynamic through MW Medical to Davi Skin via the 1:1 spin-off — were placed into CEDE & Co. / DTC street name.
Between Jun 2004 and Jun 2007, 36 sequential certificates (Nos. 2029–5323, 2,249,825 shares) were deposited — 3 certs in 2004, 9 in 2005, 14 in 2006, 10 in 2007. A single certificate, No. 5304, deposited 5 Mar 2007, moved 946,085 shares — 16% of the float in one deposit.
The sequential numbering proves a single controlled source; Wallace showed only 100 shares (cert 5064) on the register, concealing the true position.38
A separate operation, structuring different stock. Wallace asserted a fictitious $200,000 Davi Skin promissory note — already resolved in the bankruptcy — and on 3 Apr 2007 Cane converted it into 2,295,388 shares34, issued as four certificates, 573,847 sh (3.97%) each, to The LOM Building, 27 Reid Street, Hamilton:
Combined 15.88% beneficial ownership, zero Schedule 13D filed. Proceeds (~$6,385,033) settled into the LOM entities' own offshore accounts — Bank of Bermuda 1010-956504 (Arch Ltd.) and N.T. Butterfield 20.006.840.351501.100 (Hepburn Holdings Ltd.).38