Trussnet USA Inc. (a Delaware corp.) went out of business in approximately December of 2009 (Although it should be noted that attorney Ken Waggoner represented to collection agents at 4:46 PM on 10-26-10, that Trussnet that it had been out of business for two years, which would put the date mysteriously at 10-26-08). Mr. Waggoner even went so far as to threaten to sue one of the agents for a former employee, whose sole offense appears to have been to attempt to collect employee wages owed on an employee of Trussnet USA Inc. (Delaware) from China Tel Group Inc. Trussnet USA Inc. and China Tel Group Inc. had the same offices in the same suite at the time.
When Trussnet went out of business, it failed to pay its employees. At the time of "going out of business" the president of Trussnet USA Inc. was Chris Young, and the directors were Jose Arana and Richard Guiterrez (names you may recognize from China Tel's SEC filings).
The following employees of Trussent USA Inc. were not paid for several months and ended up obtaining judgments against Trussnet USA Inc. (Delaware) in April of 2010. To date, these employees have not been paid:
Danielle Mann v. Trussnet
Orange County Superior Court Case No. 30-2010-00363999-CL-EN-HLH
Archimedes Cruz v. Trussnet
Orange County Superior Court Case No. 30-2010-00347375CL-EN-HLH
Benito Cruz v. Trussnet
Orange County Superior Court Case No. 30-2010-00347324-CL-EN-HLH
Juan L. Orellano v. Trussnet
Orange County Superior Court Case No. 30-2010-00347386-CL-EN-HLH
Genaro Cruz v. Trussnet
Orange County Superior Court Case No. 30-2010-00347368-CL-EN-HLH
Jose Rodriguez v. Trussnet
Orange County Superior Court Case No. 30-2010-003-CL-EN-HLH
Hoshiar Haghani v. Trussnet
Orange County Superior Court Case No. 30-2010-00363999-CU-BC-CJC
These cases can be viewed at the Orange County Superior Court website, Further, according to China Tel Group Inc.'s SEC filings, China Tel Group Inc., "issued to Trussnet Delaware 90,890,639 shares of the Company's Series A Common Stock in lieu of a $47 million cash payment.". These share were issued to Trussnet USA Inc. even though, according to Ken Waggoner (Trussnet and China Tel Group's general counsel), Trussnet was already out of business at the times the shares were issued.
Further, China Tel Group SEC filing on September 10, 2010, states, "On October 1, 2009, Trussnet Nevada and Trussnet Delaware entered into a First Amendment of the Agreement for Professional Services ("First Amendment to Professional Services Agreement")".
Why would Trussnet USA Inc. Nevada enter into an agreement with a company that, according to Ken Waggoner, had been out of business for a year?
Even more important, where did these 90,890,639 shares go to after they issued to Trussnet USA Inc. (Del.)? This researcher has been unable to find any record that Trussnet USA Inc. has paid any of the judgments against it by various creditors, or has Trussnet paid any of its employees that sued for unpaid wages and obtained judgments, or has it paid any of the dozens of IRS liens against it. In truth, over 38,000,000 of the aforesaid shares were issued to Trussnet after aforesaid employees had obtained judgments, yet not a single one of them have benefitted to date.
Where did these shares go to?
Putting things in perspective on the "reputation" of George Alvarez and Mario Alvarez, this researcher would suggest contacting former employees and business associates of George and Mario Alvarez to get an idea of what their "reputation" is and how it would possibly benefit China Tel Group Inc.. In April of 2010, these Trussnet USA employees were fighting for wages owed to them and were obviously not millionaires or world travelers. During this same time period, in July of 2010, Mario Alvarez was relaxing in Hawaii and George Alvarez was doing the same in Europe. They returned to the mainland/USA at the end of July for a couple days and then they both spent the next month on a Mediterranean Cruise and vacationing in the mideast. This researcher will leave it up to the reader to evaluate whether or not they should be allowed to hide behind the difference between Trussnet USA Inc. (a Delaware corp.) and Trussnet USA Inc. (a Nevada corp.), especially when both entities were located at the same address and phone number (which is also where these employees went to work).
For verification of the above referenced stock issuances to Trussnet USA Inc. (Delaware) by China Tel Group Inc., see THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS filed by China Tel Group with the SEC, dated September 30, 2010 (UNAUDITED) under NOTE 17 – RELATED PARTY TRANSACTIONS and under heading "Professional Services Agreement Between Trussnet Nevada and Trussnet Delaware" and ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
All China Tel Group Inc. SEC filings can be viewed at the SEC website, www.sec.gov
And finally, while not directly applicable to the "expertise and reputation" issue, the next lawsuit should draw serious questions and concern from both MKA Real Estate Opportunity Fund investors and China Tel Group investors:
Orange County Superior Court
Lawsuit filed September 22, 2008-Case no. 30-2008-00116368 (lead case)
MKA Real Estate Opportunity Fund v. George Alvarez, Mario Alvarez, Luis Trujillo, Chris Young, et. al.
Complaint that consolidated 10 other complaints file by MKA REOF against the above referenced defendants, for a total of $48,236,733.00. Complaints were for monies loaned to real estate developer California Cove Communities Inc., wherein George Alvarez, Mario Alvarez, Luis Trujillo and Chris Young (and all their spouses) had personally guaranteed said loans All complaints were inexplicably filed by MKA long after monies were owed, in some cases years after monies were owed, and only after all the assets of California Cove Communities Inc. had been bled off or transferred.
After the cases were consolidated, a stipulated judgment was entered wherein all the parties with personal guarantees were dismissed except one, Luis Trujillo, who agreed to have a $48,236,733.00 judgment entered against him. Almost immediately thereafter, Luis Trujillo filed Chapter 7 bankruptcy.
The question is-Why would MKA (or the attorney for MKA) waive personal guarantees against six other individuals (who had money to go after) and enter into a stipulated judgment against the one person who did not have money? Now… there could have been a settlement with the other parties that does not reflect on the court's docket, but this would normally require some kind of application to the court to approve a "good faith settlement". Based upon the record, there does not appear to be any consideration for the dropping by MKA of all personal guarantees against George Alvarez, Mario Alvarez or Chris Young (and their spouses) in this consolidated lawsuit.
Please note:
Jason Sugarman is the president/managing member of MKA Capital Group and MKA Real Estate Opportunity Fund.
Jason Sugarman's Dad was on the board of directors for China Tel Group Inc. when it was initially formed. His Dad is a medical doctor in Fullerton, CA, not a telecommunications expert.
MKA's attorney on the above referenced consolidated lawsuits was Dan White.
MKA's attorney, Dan White, is the authorized agent for service of process for Gulfstream Capital LLC.
Gulfstream Capital Partners LTD., are partners/investors in China Tel Group's Peru operations (Perusat).
These consolidated cases can be viewed at the Orange County Superior Court website, www.occourts.org
Additional sites that will assist readers/researchers in evaluating the "expertise and reputation" of George Alvarez and Mario Alvarez are listed below. Many of these websites do charge for access, thus in two to three weeks, this researcher will be forming a website wherein all the foregoing documents will be accessible free of charge.
Also available on the website will be internal documents and statements provided by former MKA employees and former Trussnet USA Inc. (Delaware) and Mobile Truss employees, regarding the ethics (or the lack thereof) of individuals associated with these entities.
Also available will be the expert witness report referenced hereinabove, and letters, emails and communications related to various court proceedings from Ken Waggoner and other attorneys associated for both Plaintiffs and Defendants on the above referenced lawsuits.
Also available will be updates and documents on the SEC Westmoore "Ponzi scheme" lawsuit along with other private party lawsuit filed against Westmoore Holdings, et. al., in various federal courts making similar allegations of a Ponzi scheme (These lawsuits are relevant only in that George Alvarez was on the board of Westmoore at the time of the subject matter of these lawsuits, and also that China Tel Group is mentioned prominently in aforesaid lawsuits. It should be noted that, to date, neither George Alvarez nor China Tel Group Inc. have been accused of any wrong doing in these lawsuits.
The website will also allow any potential or previous investors with The Alvarezs', MKA, California Cove, China Tel Group, etc., to upload documents and post statements without fear of reprisal.
