HLNT/NIR/Walters Law Suits update:
Today, Walters lawyers filed a Motion to stay the 3rd Party Action
for the following reasons, 1) to allow for the process of Humphries
bankruptcy to be completed, and 2) because Humphries is in jail,
he cannot be tried for the 3rd Party Claims.
(Brief break to think very hard about this one, okay break is over.)
Can anybody see a problem with this motion? Anybody at all? Okay,
besides everybody. Duh!!! The bankruptcy has already been dismissed.
(Okay, another brief break to think about the second reason. Yep, breaks
over on that one too!)
Humphries is in Jail? Why, what did he do wrong? Oh yeah, Ribotsky
wouldn't continue to fund him so he took the bait on an FBI sting. One
thing is for certain, he's not going anywhere. Does this stop the case?
Let's see, can he be questioned while in jail? Yes! Can he be part of a
trial, while in jail? Yes, again! Can there be another reason that Walter's
lawyers filed this Motion? You betcha!!!
First, consider Ribotsky's position. The man is having lots of financial
difficulties. He is having to sell some of his personal stock holdings to
come up with cash to pay his attorneys that are to defend him in the
SEC case that has been filed against him and his company, NIR. His
position, and that of NIR, seems to be deteriorating much quicker than
everyone thought, or at least, that Ribotsky would have everyone believe.
Desperate enough to try to sell the convertible notes that NIR holds at
a deep discount to raise money. Now, he is stuck between the rock and
the hard place, doesn't have enough money to continue, can't draw
management fees, as there isn't enough left to manage, can't file bank-
ruptcy (he would have to open the NIR books to the bankruptcy trustee
and the courts, which the SEC, FBI, and DOJ would just truly love).
Another law suit or two, and he will implode like a house of cards in a
gust of wind. You will see him representing himself and his company
like Humphries did, by Ribotsky himself.
With Ribotsky holding on by his fingernails, what does this mean for
Walters? Ah, this is the second part. In the latest filings on the HLNT
case in New York, Ribotsky and NIR has pretty much taken a back
seat to Walters. Where Walters had hoped that NIR could beat down
HLNT in the early part of the year, he is now faced with the reality
that he is going to have to fight for each of them now, Ribotsky,
Humprhies and himself. So what is Walters strategy? We saw the
strategy develop during the summer, open up as many actions
against HLNT as possible in order to run HLNT out of money. From
what Walters has seen of the financial statements, he believes he
can do it, but he has to rely on his belief, and doesn't really know
what is going on at HLNT or whether or not they will have the money.
As is evident by now, Walters is relying on court tactics to delay the
outcome of the case, or derail it if he can. But as with the latest tactic,
it will not prevent his having to testify, nor will it stop the progression
of the case as inevitably, HLNT will succeed in the end.
The opinions expressed in this post are my own and all investors
should conduct their own due diligence and make their own deci-
sions appropriately.
