AbsoluteSKY (fka ABSY)

[Jubu Buntu]

A little bit of history: John Frabasile - AbsoluteSKY

Well, I decided to do some googling tonight and see if I can trace some history of John Frabasile and AbsoulteSKY. Man, I was in for a surprise.

Googling John Frabasile name and getting the oldest occurrence (http://www.thefreelibrary.com/Tandem+and+Mitech+to+Partner+in+a+Specialty+Retailing+and+General...-a017441927 ) for it, I found out that he was the CEO of a Montreal based company called Mitech Computer Solutions. I found 2 press releases, one from 1995 and another from 1999.

Curiously enough I wasn't able to find much more references on Mitech to see how the company worked, and if it was profitable and by how much, and if it is still operational.

So by luck really, I stumble on this website. https://ssl.req.gouv.qc.ca/slc0110_eng.html . It is the canadian (quebecer) website for companies that are registered in quebec, and a bit of history on them! It was a god send!

So I punch in "Mitech" and started going through each and every one of them, until I came across #1142890582. The lucky number. Here is the ref: https://ssl.req.gouv.qc.ca/igif-bin/isl08tr1/cidreq/**URL**?matricule=1142890582&banque=C&action=ETAT_CIDREQ§ion1=O§ion2=O§ion3=O§ion4=O

So I scroll down that french document, not really understanding much, but some souvenirs from my french classes started to surface.

According to this document. Mitech was a company of between 50 and 99 employees. Started in 1983, and "ended" in 2000. FRABASILE, JOHN was the majority shareholder, the president and the administrator. It was in 1998 apparently that things started going wrong.

If you read at the bottom of the document, it says that a notice of defaulting was issued. I am guessing that they defaulted on paying something serious, maybe like the income taxes collected from employees. They defaulted again in 1999, and it seems that it got so serious, that they were radiated from the "office"!!! They did not dissolve it, the company got radiated!

So that's the end of Mitech, let's continue John's "un-authorized and unwanted biography".

John resurfaces 2 years later in 2002, to be appointed President of a company called "island pacific". Here is the blurb from google finance:

"Island Pacific, Inc. provides software solutions and services to the retail industry. The Company provides solutions that help retailers understand, create, manage and fulfill consumer demand. It is organized in three strategic business units: retail management solutions, store solutions and multi-channel retail solutions."

Sounds nice on paper, the reality though is that Island pacific is a company that was trading at 15$ back in 1999 that is trading at 0.08c now.

Anyways, searching for John Frabsile and Island Pacific yielded in a lot of these articles where John is quoted saying something, of the same nature that he gets "quoted" in the current asbolutesky press releases.

Here is one such example: http://www.thefreelibrary.com/Island+Pacific+to+Showcase+Two+New+Offerings+at+Retail+Solutions%3B...-a0102598704

"There is tremendous opportunity for these new offerings as well as our entire solutions set in Europe," said John Frabasile, president of Island Pacific International. "We can feel the momentum building. We have made announcements with numerous European retailers including Retail Variations, The Entertainer, Center Parcs and Shoefayre, in just the past few months."

Does that remind you of anything?

He was saying this while the stock price has tumbled from over 10$ to 1.50$ in less then 3 years.

So a little more digging in the time contium, and brace yourself gents!

A FRAUD Law suit against him...by who? None other than Island Pacific!

I will let you savor this bit: http://sec.edgar-online.com/2004/06/29/0001019687-04-001444/Section4.asp

"On April 2, 2004, we filed a federal court action in the Southern District of California against 5R Online, Inc. ("5R"), John Frabasile, Randy Pagnotta, and Terry Buckley for fraud, breach of fiduciary duty, breach of contract, and unfair business practice arising from their evaluation of, recommendation for, and ultimately engagement in a development arrangement between IPI and 5R. Pursuant to the development agreement entered into in June 2003 upon reliance of the representations of the individual defendants that product development was progressing, **we paid $640,000 in development payments but received no product**.

Responsive pleadings will be served shortly, and the parties are exploring a business solution to the dispute. For fiscal year ended March 31, 2004, we have expensed payments of $640,000 and shown as other expense.
"

Ouch! John along with his partners seemed to have frauded Island Pacific out of 640,000$! Way to go johnny boy!

So curious I was to find out what exactly was or is "5R Online Inc", I continued my googling.

Here is the first instance I found:

"In June 2003, we entered into a development and marketing license agreement with 5R Online, Inc., a software and services company affiliated with John Frabasile and Randy Pagnotta, our two former officers (the "Former Officers"). Under this agreement, we obtain an exclusive right to sell and distribute this company's software. In return, we committed to fund $1.2 million toward development of this product. We also agreed to pay a royalty of 30% of the software license sales up until we have recuperated all the development funding, at which point the royalty will increase to 50% thereafter. We paid $640,000 toward this development but received no product. In April 2004, we filed a federal court action against 5R Online, Inc. and the Former officers.

For further discussion, see Item 3 under the heading "Legal Proceedings" above.
"

So apparently John decided to "re-start" a mitech type of company and to abuse of his former position as an officer at Island Pacific to sway them into a 1.2M$ contract, which apparently they never seen the color of any code whatsoever.

Wait, it gets even more interesting...

"Defendants Pagnotta and Buckley have counterclaimed against defendant Frabasile, who has moved to dismiss in light of a parallel action pending in Canada. Frabasile's and 5R Online, Inc.'s response to our complaint was due on August 9, 2004. A
settlement was entered, which was conditioned upon payment by the defendants of a first installment of $50,000. The defendants failed to pay the first installment and the litigation is therefore proceeding."

So not only did John screw Island Pacific, he apparently screwed his partners as well!

And now this is where it _really_ gets interesting. The next occurrence was this one: http://cocanada.com/Canadian/Computer%20Software/1/ which is nothing more than a listing of a bunch of companies.

"Company Name :
5R Online Inc
Address : 1375 Rte Transcanadienne,
Dorval, QC
H9P 2W8
"

Now, does this adress remind you of something?

It is the absolutesky address!!

So quickly I did a search for "5R absolutesky", and to my disappointment nothing came through.

So I remembered the good ol' government of quebec website with the search on the registered companies.

I started searching for 5R Online.

https://ssl.req.gouv.qc.ca/igif-bin/isl08tr1/cidreq/**URL**?matricule=1161907671&banque=C&action=ETAT_CIDREQ§ion1=O§ion2=O§ion3=O§ion4=O

Apparently it started in 2001, so that is while (or just a bit before) John was at Island pacific! Very weird.

It then goes to cite John and the secondary shareholder, and some other australian company as the primary one. The interesting aspect is that the company still an active status, but declares 0 employees.

The other thing to notice is that john is not the president but some other guy "BENJAMIN, ELGRESSY". Googling his name did not yield anything significant. The other thing to notice is that Tery Buckly, the guy that was sued by Island Pacific and that counter suing John is not on that list. Unless he represents the major shareholder company somehow. I will not dig deeper on that path.

So I remembered a while back reading something about another company getting acquired under John's Frabasile profile on absolutesky website: http://www.absolutesky.ca/leadership.shtml?currentMenu=Menu2_2

"In 2003, Mr. Frabasile combined his retail and software expertise with evolving RFID technologies and founded JavaPRO Solutions who's assets were acquired by AbsoluteSKY, Inc. in November 2005"

So I went on the government website again to fetch Javapro: https://ssl.req.gouv.qc.ca/igif-bin/isl08tr1/cidreq/**URL**?matricule=1162658869&banque=C&action=ETAT_CIDREQ§ion1=O§ion2=O§ion3=O§ion4=O

Nothing really exceptional except the fact that it was constituted in 2004 sometime near the Island Pacific lawsuit, and his partners counter suing. It might have been a way to escape some "assets" quickly from Island Pacific or said partners, frankly, I don't know, it is just speculation.

We also notice that the "JOHN FRABASILE FAMILY TRUST" is the majority owner in the company. Probably a tax evasion manoeuvre.

Nothing more down that path. Now let's search for absolutesky in that register. We come up with 6 different instances!!

There is a version where an absolutesky "nevada" is the majority owner, and other instances where absolutesky montreal is...really confusing, looks like some sort of camouflage operation to me.

I will let you have fun exploring this precious site.

So where does that leave us? Well, you can see from past and present history that not everything is kosher in this company, especially not the CEO.

I would like to know what happened with the lawsuit by the ex-partners of Frabasile, if it got resolved, and if it didn't how that will affect absolutesky in any way.

I tried to see if I can access the court documents of the canadian court to see the details, but it seems hard for me with all that french. If someone can pickup the job from here, I, and I am sure lot of others, would appreciate it.

OK, I'm out.