Dmitri (aka Dimitriy, Dimitry Demitry, et al.) Nikitin has a rather checkered past. It appears as if this stock was set up as just another scheme to fund the Nikitin's lavish lifestyle. An "Instant Cash" machine much like their previous businesses.....
From the Orlando Busines Journal
LAKE MARY -- A Russian-born businessman is under fire by the Lake Mary laser-cutting company he co-founded, charged with funneling hundreds of thousands of investor dollars into luxury homes and an affluent lifestyle.
Precision Technology Group is suing ousted President and CEO Dmitri Nikitin and his wife, Svetlana, alleging that Nikitin "engaged in a pattern of self-dealing, diversion of company funds, property and resources, and other acts of corporate looting."
Undocumented Loans
Advantage Capital invested $2 million in PTG. That's roughly where the lawsuit picks up on Nikitin's alleged pillaging of the young company, according to the lawsuit.
For example, the same month Advantage Capital made its investment, PTG authorized a house loan of up to $261,000 in company funds to Nikitin. Former PTG employees say Nikitin demanded the $261,000 loan as a condition of PTG taking funding from Advantage Capital.
The lawsuit further states he used the money to purchase a 5,759-square-foot home in Alaqua, a luxury golf course community in Seminole County, for $595,000. On a life insurance application obtained by the Orlando Business Journal, Nikitin listed his salary at $150,000 a year.
Nikitin and his wife, Svetlana, also own a beach house in Daytona Beach, which the lawsuit contends the Nikitins purchased with unauthorized PTG funds. PTG does not have a record of the home loan, the lawsuit says. The company claims Nikitin acknowledged he owed the money, but could not produce a promissory note.
Other Acts Described As, "Corporate Looting"
Nor is the financial dispute limited to the purchase of the home. The company contends Nikitin illicitly received more than $119,993 from company coffers since June. He received payment for items listed in company registers as "work on Nikitin house," the cost of shipping a Porsche from Austria to Florida and $10,000 denoted first as "tradeshow" and then changed to "executive salaries."
In October, Nikitin submitted a request and received more than $10,000 for meals, entertainment and travel expenses in 1997 and 1998.
Nikitin also is charged with taking more than $22,300 from PTG bank accounts, including $7,000 he withdrew from an account on Dec. 19 -- more than a week after he was fired from the company.
The lawsuit states the company hasn't ascertained the full impact of Nikitin's activities. Former employees contacted independently by the Orlando Business Journal say that extravagant purchases by Nikitin following cash infusions at PTG were commonplace.
When the company received a payment from German semiconductor maker Heraeus Quartz Glass about three years ago to develop a laser machine for welding quartz, Nikitin bought a $27,000 boat with the money, they say.
When he discovered his Mercedes Benz sedan couldn't tow the boat, he dipped into the same pot to buy a Mercedes sport utility vehicle.
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More to follow......
Let the buyer BEWARE!
Good DD IS NOT just reciting the PRs and company handouts and looking for the good. Those things are never hard to find.
Good DD IS finding out what the company and CEO do NOT want you to know.
