Beverlee Kamerling ltr to US Attorney's Office
Case 2:07-cr-00410-RAJ Document 399-2 Filed 06/25/2009 Page 1 of 8
April 6, 2009
I 1111111 1111111111IIIII111111 m1111 Jill
JUN 2 5 1nn DJ
To: US Attorney's Office
Attn: James Lord & Robert Kondrat
W CLERK U.S. DISTRICT COURT
ESrFqN DISTRICT o, WASHINGTON
From: Beverlee Kamerling
Re: Defendant's Conduct and the "Policing" of Client's Company Activities of Proposed Alleged Securities Fraud
Note: In going through the materials that have been mailed to me to date by the public defender's office, I have a file on SIPP Industries, Inc. and the FBI investigation of that company.I have
requested that Peter Avenia's office forward me all of their disclosure statements from my computer so that I can remember the names of the parties for a memorandum. As of this date, I do
not have the disclosure file and cannot insert the parties' names. In that event, I will list as ''NTBP" for name to be provided.
Further, I am submitting a "broadbrush" summation of the activities as I do not have any documents for reference. Once those documents are received, I will update this Overview of Activities. This investigation of SIPP brought to mind all of the other companies whereby I have acted as "policeman" and "whistle blower" pursuant to proposed alleged violations of securities rules and regulations. Enclosed please find a summary of the activity on three of suchcompanies.
SIPP INDUSTRIES, INC.
Overview of Activities
In reading over the materials collected by Agent Quinn of the FBI, I find that there are several significant errors and the "re-directing of blame" inmy direction as it is a convenient way to
cover the wrongdoing of those parties. I believed that Roger NTBP and Kelli Austin and other were trying to suppress their egregious alleged securities violations which were discovered by myself
and reported to the company's board of directors by myself, prior to any completion of financial statements.
SIPP International Industries, Inc. was a company that was brokered by my office, purchased from a securities lawyer in California, with debt being converted from fees owed to that attorney over 2 years ago, etc. The corporate vehicle was a "pristine company". The public company became known as
Sipp International Industries, Inc. (the proposed "parent"), a Nevada corporation publicly traded and the proposed parent that was postured to acquired an operating company, Sipp, Inc., a Nevada corporation, as a wholly owned subsidiary. In the process of obtaining the documents to assist in the acquisition of the proposed wholly owned subsidiary,
Case 2:07-cr-00410-RAJ Document 399-2 Filed 06/25/2009 Page 2 of 8
Sipp Industries, Inc. (''sub"), a Nevada corporation, I became very alarmed that the proposed subsidiary, Sipp, Inc., had an audited $8.5 million dollar balance sheet. As in any acquisition of two corporations, two independent auditors have to be retained, one for each corporation, the parent and the proposed subsidiary. I referred Stan Lee, CPA of Southern California, the existing
auditor of the public vehicle, and Madsen & Company, CPA's, Inc. as the auditor for the sub.Lee Dana was President of the "public" parent and I cannot remember who was the President of the
subsidiary as I do not have access to my files.
By being very alarmed at this large amount ($8.5 million) to be merged onto the public company's balance sheet, I started challenging the amounts submitted on the sub's audited financial
statements. These challenges were not well accepted by Kelli Austin or Roger NTBP. I challenged the method by which the sub's current account or auditor, Kelli Austin's father arrived at these
figures. I also questioned Arthur DeJoya, CPA, board member extensively as to how whether he reviewed the audit file and concurred with the amounts reflected on the sub's balance sheets, etc. Every member of management of the sub was hostile to my questioning or their financial statements. This hostility made me suspicious and I began making anonymous calls to the subs' equipment locations and packagers. I discovered that the expensive equipment reflected as an assets on the audited balance sheet was not owned by the sub, the inventory was not owned by the sub, the sales were not owned by the sub, nor were any other posted assets. When I alerted Lee Dana, President of the public parent and the board of directors, the board berated me considerably and I told them that at least 1 of them, Arthur DeJoya, was a CPA and bad his license to protect. I warned them all about publishing false financial statements. Additionally, I told them that the 2 new auditors would not accept their fraudulent financial statement on the face of it and that the auditors would conduct their own, independent investigation as to the $8.5million in assets. I abruptly told all involved on a conference call that the sub, Sipp, Inc's audited financial statements were fraudulent and the financial information could not and would not be part of the merger and that our office would not be involved.
It was later discovered that Roger NTBP coerced the owners of the packaging plant and equipment owners to confinn that the sub was the owner of the equipment, inventory, etc. The accountant
and/or auditor was the father of Kelly Austin, the person and partner of Roger NTBP. who tried to re direct their alleged securities violations with the FBI to me. Kelly Austin told the FBI that she was glad that I was in jail, etc. I am not the one who should be incarcerated.
Additionally, further to the fabrication of assets, Roger NTBP and Kelli Austin opened an illegal bank account under the parent's name (names are similar), placed themselves as officers and
directors of that parent company and sold shares (presumably in the public parent) to several police personnel employed by the Las Vegas Police Department. Neither Roger NTBP nor Kelli were officers of directors of the parent company and had no authority to conduct any business on behalf of the parent. Roger NTBP and Kelli Austin still had authority to act on behalf of the sub prior to the merger, but not the parent, ever. This event was discovered by the share purchasers when Roger NTBP couldn't deliver shares that the purchasers thought to be issued by the parent. Roger NTBP and Kelli Austin could have issued shares from the sub. Both Roger and Kelly Austin used the funds derived from the illegal sale of securities, deposited illegally into the new bank account as their
own "personal bank account", including gas purchase, clothing, sundries and grocery purchases.
Case 2:07-cr-00410-RAJ · Document 399-2 Filed 06/25/2009 Page 3 of 8
I later learned that Roger NTBP was a former building contractor in California who had a number of complaints of non completion of paid contracted construction work and left California and
settled in Nevada. Roger NTBP has also placed all of his assets into the accounts owned by his wife. Once I obtain the disclosure statements, I will have the legal names and activities of all
the players. I will then be able to expand upon the above, augment the activities once I can remember the sequence of events and persons, etc.
THE POINT IS THAT I WAS THE ONE PERSON WHO TRIED TO STOP ANY POTENTIAL SECURITIES FRAUD ON SHARE PURCHASES AND OTHER CORPORATE ACTIVITIES.THE US ATTORNEY'S OFFICE SHOULD BE AWARE OF THIS AND OTHER ACTIVITIES WHERE I WAS INSTRUMENTAL IN THE HALTING OF ANY
PROPOSED FRAUD TO THE PUBLIC. EVERYTHING THAT WAS COMPLETED BY OUR
OFFICE WAS PURSUANT TO CORPORATE AND SECURITIES RULES & REGULATIONS.