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lol...the fraud case against Schadel was laid out in detail on the lawsuit. It has been covered many times on this board by me and others for months BEFORE the lawsuit. It was just a matter of time before someone who has the resources decided to take action specifically targeting fraud.
I wonder how much the "legal team" is costing Schadel for the two current lawsuits and however many more are on the way.
More toxic notes on the way!
The lawsuit makes it abundantly clear that the TA didn't "deny the shares". The TA couldn't issue the shares because they are unavailable after Schadel's stunt with reducing the AS without noteholder authorization. Hence, the TA referred back to Schadel for issuance.
Funny how note holders that Schadel is supposedly paying off are selling their debt for a discount.
For crying out loud, your statement contradicted...
wait for it...
ITSELF!
I believe there were TWO sentences. Safe Harbor "doesn't allow" reasonable verification, then allows. C'mon, this isn't hard.
lol...so many attorneys, so little pps.
I'll post your contradiction again:
I am not Maese, so how the hell should I be able to speak on the details of what Maese has or hasn't done? Ask him. According to his fraud suit against LTNC, he has met all the accreditation verification requirements.
With a fraud suit against LTNC all we can do is wait and see what a judge says once the evidence is reviewed. I don't know why anyone would initiate such a suit if they hadn't done their homework. Schadel, on the other hand, has repeatedly put himself/shareholders in compromising positions so I'm siding with the plaintiff until a judge says otherwise.
Because business is "extortion"...ROTFLMAO!
Maese didn't change his story at all. The lawsuit specifically mentions the fact that shares were made unavailable to convert, which was a WILLFUL breach of contract due to Schadel quite openly defying the share reserve requirements of ALL the notes. Oh, I know..."but, but, but the amendments"...show me ANY amendment to the notes. In fact, I'll make it easy: show me any note that has simply had the share reserve requirement amended.
It can't be done because Schadel has NEVER released the details of what exactly the "cash agreements" are.
As for what you said, it completely contradicts itself (and the law):
lol...every lawsuit goes for maximum damage with the understaning that it will get negotiated. Let's not get giddy over a technicality that will get ironed out in court for the total calculated damages. I wonder how the judge will factor Schadel's fraudulent behavior in the ruling regarding reasonable damages.
I love it!!!
Command Center sent one letter and is winning their suit. Note how Schadel has already acknowledged that he is hoping for reasonable payment arrangements with them and, more recently, won't even comment on the case. Prometheus at least tried to reason with Schadel, but Schadel had a hissy fit and is now being sued for FRAUD!
This is fun to watch!!!
That's funny considering that this is now the second lawsuit against Schadel under similar premise. Except, Prometheus appears to have offered much more communication to Schadel before initiating a lawsuit than Command Center did and we see from the last few Periscopes that Schadel is increasingly on the defensive regarding CC. Schadel is toast!
Ryan Schadel has NEVER definitively laid out what the "cash agreements" have been with all of the late notes he has. He has only alluded to what note holders "might" accept as settlement and has been calling it "cash agreements" and forbearance agreements interchangeably. Considering how many "promises" have been broken with regard to conversions in the past 6 months, Schadel is either officially in default or misrepresented or both.
Actually...fraud it is
The judge will have to decide if the terms of the note REQUIRE that the 3rd party note holder furnish proof of accreditation to the company as opposed to the original note holder who would be held liable. The key here is "required" to furnish proof to the CEO as a third party. If that is the only reason that this case supposedly has no merit, I'd say try reading the ENTIRE complaint instead of picking out one thing. Lots of juicy details in there about Schadel's fraudulent activity as has been detailed on this board for months. Lawsuits are a great way to get SEC attention on this snake for a CEO and I fully expect more juicy developments leading toward Schadel's incarceration, or at least being kicked out of securities. Then, there's the IRS...lol
LABOR SMART SUED FOR FRAUD!
Here is the story that includes a link to the lawsuit:
http://www.wrcbtv.com/story/31638574/labor-smart-inc-sued-for-fraud ;
There has been a lot of speculation about the character of "S. Steven Maese", the manager of Prometheus, and it's fair speculation. However, Schadel has a long history of being associated with shady characters from toxic lenders with SEC troubles to a shell company he now owns that was under SEC investigationto even posting personal correspondence on Twitter with Martin Shkrelli, the infamous CEO of a pharmaceutical company who was recently arrested on fraud charges.
Besides that, Ryan Schadel opened the door WIDE open to litigation as I have posted numerous times when he thought he'd get cute and stop conversions in February by reducing the authorized share count. When he did that, he was in breach of contract with every single note for failing to maintain a share reserve for potential conversions and it is specifically cited as one of the reasons for the most recent suit.
There are now TWO active lawsuits against Schadel because he couldn't manage his money and AT LEAST three note holders who have attempted to convert this year alone despite so-called "agreements" that they "couldn't".
Here's a question that all the "longs" are failing ask: why are the original note holders selling their debt to third parties? That happens only when the notes are in default. So...it doesn't matter what Maese may or may not have done in the past (besides, his prostitution case was from 2009 and it's been repeated over and over that anything over 6 months old is "old news"...lol), the fact of the matter is that there is another lawsuit and there is merit to the case.
What's really stupid about the whole thing is that in the 3rd quarter of last year Schadel gave himself a $220,000 bonus AND borrowed $175,000 at 59% interest that required immediate daily payments. There was ample opportunity to take care of this lawsuit and protect shareholder value that Schadel thumbed his nose at. LTNC is just Schadel's ATM, but the fees are steep as he is now beginning to find out.
Schadel is done and now that fraud is finally and rightfully a term used with his name in a court proceeding we can rest assured that the SEC will be involved before long.
You bet it's the real picture! lol
I am not dazzled by the sparkly rainbow unicorns, so we can stop with that nonsense. I've been around since 2013 and seen it all here. Pinky games are the reason this stock went from .80 to no bid and now back to no bid as the CEO tries to double down on the games with shell companies and money musical chairs.
Schadel still can't pay off debt. $1 million does not cover even 1/3 of what's owed and that doesn't include $2 million to the IRS. Anyone have a link to the so-called cash agreements yet?
lol...that's exactly what people were hoping for when Schadel got a million dollars from the first 5 branches sold. Instead, debt increased $500,000 and cash on hand ended up being just $130,000. However, the CEO gave himself a handsome $220,000 bonus and got a $175,000 loan at 59% simple interest.
Say, it's been a month now. Where, oh where is this mysterious billion share certificate?
An NT10K (still missing the report even though Schadel has lots of time for Twitter and Periscope) does not speak well of the likelihood that Schadel hasn't gotten more atrocious debt. And when a company grows to 32 branches, then suddenly contracts to 13 within a year amid millions in late payroll taxes, millions in late toxic debt, and fighting lawsuit after lawsuit there is no argument for consolidation: only liquidation.
So what? Schadel blew through $1 million like it was nothing when he sold the first 5 branches and total debt still increased by over $500,000 in the same quarter. All that deposit means, assuming it's legitimate, is that Schadel's money games continue. Hell, he couldn't even pay $15,000 on time and now has a lawsuit for fraud! lololol
Schadel owes $142,000 per month in cash agreements on the forbearance terms that he has never actually disclosed. This is just estimating $1.7 million over 12 months starting in November. How much has he posted in payments? Here's a hint: Not $710,000.
And then there's
$10,000 per month to the IRS on $1 million in late 2013 payroll taxes (soon to be $15,000)
$40,000 per month for the newest loan at 59% interest requiring daily payments
I wonder how much he has arranged to pay on the additional $1 million in payroll taxes he accrued in 2015.
And now TWO lawsuits against him for failing to pay notes...attorneys ain't cheap especially when they have to cover a CEO's stupidity.
Cash flowing down the LTNC drain to bankruptcy.
lol...the emotion...the drama!
Schadel is getting sued right and left now. I wonder how he pays for his attorneys when he can't pay his notes or the IRS....lol
Oh, the soap opera that is LTNC just took a wicked twist tonight! It's this sort of drama that I stick around for!
The way some people are going on and on about how "one-sided" the note is that you are suing over it would seem that not a single toxic note was understood that Ryan Schadel has used. ALL toxic notes are one-sided and the penalties for defaulting on them make the ridiculous original terms look tame. Even when paying them on time through conversions we have seen some notes approach 3x principal, so to be outraged that penalties would be DOUBLED in default is just silly!
To be honest, I don't know how wise it is to post on this sort of forum with pending litigation. I suppose if shares aren't owned in any way there may not be risk, but wouldn't there be a case for damaging the share price? I realize how ridiculous that is with a trip 5 stock, but the theoretical basis would seem to be there.
Anyway, assuming you are who you say you are I can't begin to express how ecstatic I am that Schadel is finally having to come to terms with his stupidity. I love it that "fraud" is now connected to his name even if it's just a pending lawsuit. I wonder if Schadel will use this development as an excuse to further delay the 10K... *gets popcorn*
According to Schadel in last Friday's Periscope, an SEC investigation into a CEO is an "arbitrary" reason for the company stock to crumble. I wonder if he considers a fraud suit equally arbitrary.
LOL!!!!
Conversions have dipped into .00004 if you look at other notes and many of those notes are still outstanding.
Yeah. I love the hypocrisy of Schadel whining about Prometheus blacking out the amount they paid for the note (why would someone reveal their negotiated cost?) yet he has consistently blacked out who he is making cash payments to in his supposed cash agreements. Speaking of which, does ANYONE have a link to the so-called agreements that we now see are complete bunk?
ROTFLMAO! PPS has plunged 50% since the failed certificate promo scheme.
Confirming what? Dilution?
6.6 billion OS in November
7.41 billion OS in January
7.47 billion now
Billions more to go with no share reserve and forbearance agreements obvioulsy going into default. AS increase is coming, or RS, or bankruptcy, or prison...what'll it be?
60 million shares were recently diluted according to that report. The last known OS count was 7.41 billion. There most certainly is dilution.
Ryan Schadel said this yesterday about conversion:
LIVE on #Periscope: LTNC CEO Addresses Fraud Claim https://t.co/L35dBzU5eY
— Ryan Schadel - CEO of $MVCO (@CRyanSchadel) April 4, 2016
Notice in Schadel's Periscope rebuttal to the fraud charges that he didn't once say the note holder couldn't convert...not once.
Stop. I'm not going to humor senseless hypotheticals. There is no positive cash flow. There has never been positive cash flow except for the very first quarter in 2012 when there was hardly any debt. There wasn't positive cash flow even when the 15 strongest branches were on their own in 2013 and that is evidenced by the fact that Schadel has sold 2 of those 15.
The fraud suit against Schadel is the chickens finally coming home to roost.
There is no positive cash flow, so your question is pointless. There was no positive cash flow with 32 branches, 25, 20 and now we can certainly expect to see no positive cash flow with 13 branches because if 32 branches couldn't pay the bills, then 13 certainly won't either.
$4 million in losses expected for 2015 alone...pathetic.
Maybe you should read the complaint filed before posting about it.
Are you f*ng joking??? "Rising from the ashes"?????
32 branches down to 13 and this company is "rising from the ashes"???
$24 million revenue in 2014 (was supposed to be "at least" $30 million) to $20 million in 2015 and this company is "rising from the ashes"???
TWO active lawsuits for failure to settle debt and this company is "rising from the ashes"???
Payroll taxes payable DOUBLED to $2 million in 2015 and this company is "rising from the ashes"?
Oh, Lord have mercy....
Oh, right, the "amendments" that NOBODY has seen. Let's assume there are amendments: why are note holders selling their debt at a deep discount?
Default, that's why.
WAAAY more than $15,000 with conversion discount and damages: $2,000 per day damages for every day that the note holder can't convert on the defaulted debt. And that is per the note agreement. lol
LABOR SMART SUED FOR FRAUD!
Here is the story that includes a link to the lawsuit:
http://www.wrcbtv.com/story/31638574/labor-smart-inc-sued-for-fraud
There has been a lot of speculation over the past 24 hours about the character of "S. Steven Maese", the manager of Prometheus, and it's fair speculation. However, Schadel has a long history of being associated with shady characters from toxic lenders with SEC troubles to a shell company he now owns that was under SEC investigation to even posting personal correspondence on Twitter with Martin Shkrelli, the infamous CEO of a pharmaceutical company who was recently arrested on fraud charges.
Besides that, Ryan Schadel opened the door WIDE open to litigation as I have posted numerous times when he thought he'd get cute and stop conversions in February by reducing the authorized share count. When he did that, he was in breach of contract with every single note for failing to maintain a share reserve for potential conversions and it is specifically cited as one of the reasons for the most recent suit.
There are now TWO active lawsuits against Schadel because he couldn't manage his money and AT LEAST three note holders who have attempted to convert this year alone despite so-called "agreements" that they "couldn't".
Here's a question that all the "longs" are failing ask: why are the original note holders selling their debt to third parties? That happens only when the notes are in default. So...it doesn't matter what Maese may or may not have done in the past (besides, his prostitution case was from 2009 and it's been repeated over and over that anything over 6 months old is "old news"...lol), the fact of the matter is that there is another lawsuit and there is merit to the case.
What's really stupid about the whole thing is that in the 3rd quarter of last year Schadel gave himself a $220,000 bonus AND borrowed $175,000 at 59% interest that required immediate daily payments. There was ample opportunity to take care of this lawsuit and protect shareholder value that Schadel thumbed his nose at. LTNC is just Schadel's ATM, but the fees are steep as he is now beginning to find out.
Schadel is done and now that fraud is finally and rightfully a term used with his name in a court proceeding we can rest assured that the SEC will be involved before long.
I'm still trying to get a solid bead on the number of branches left. I think it's 14, but someone said 13 and the website hasn't been consistent between its listing and mapped locations (still shows 19 on the map, but 20 in the listing).
Undervalued based on what? The CEO just sold off a branch that generated $2,000,000 per year for $300,000. Considering the value of all sales (minus accounts receivable), he has sold 10 branches for a total of $4,500,000 including the 4 he "sold" to his puppet CEO/LTNC COO running his shell company TSGLD (down 6% today and, strangely, no filing about a purchase last week...hmmmm....).
There are now 14 branches left...13 according to some.
If LTNC was "undervalued" when it was .0007 with 25 branches, then CONGRATULATIONS! It is now .0007 with 13 branches...the CEO has effectively doubled the value of the stock relative to the remaining branch count!
And THAT is a pretty damn good deal.....for Schady!
lol