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JJslammer.. tell us know how much you lost
We're anonymous here afterall. I think it's most helpful for people to say how much ARTS has cost them. That is the sort of info that needs to be on the record.
Who's sucking in these new suckers?
Is it penny stock brokers or some other hustlers? My AT&T technician told me he was installing a DSL line at some guy's house last year and the dude was hustling him about ARTS. He said the guy claimed he just got off the phone with Ed "Too Tall" Jones ..that Jones and the Cowboys were jumping on board... that ARTS was about to skyrocket ..and told him a $5k investment could set him up for life.
Is this how it's done?
StarfestOverview.com "page suspended"
A "Whois" search reveals the 'registrant' of this domain to be one Dmitriy Kozlov in Framingham, Mass. This is a 23 year old who has a website called http://www.freedompassionpurpose.com/ (which is also currently "suspended") and this blog http://dmitriykozlov.com/
Then there's this (only available as a cached page from Yahoo Finance)
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Re: Thanksgiving Card for ARTS? 7-Nov-10 02:48 pm
maybe these can be added:
Lawrence Castro SVP Sports/Education
Jack Weis Dir Film/Television
Dmitriy Kozlov Starfest Overview Business Opportunity TeamKit Carlson StarfestDirect Business Opportunity Team
Buu Huynh starfest benefits
http://webcache.googleusercontent.com/search?q=cache:sIR3N0D6QYEJ:messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview%3Fm%3Dmm%26bn%3D64639%26tof%3D15%26rt%3D2%26frt%3D2%26dir%3Df%26ri%3D25333%26t%3Dc+Dmitriy+Kozlov+artfest&cd=8&hl=en&ct=clnk&gl=us&source=www.google.com
So where did all the money go...really?
I'm talking CASH Mr. Vakser took in from investors and CASH payments paid out>>>
I assume some went for salaries (first, last and always), rents (at least until evictions) and repeated moving expenses, utilities, legal defense fees (lawyers know better than to take Monopoly Money stock for payment), an accountant to rubber-stamp his financials, a bit of equipment, vehicles perhaps(?), a bit of picture framing, party expenses, signs & banners, website domain fees and hosting (negligible), travel expesnses (including "working vacations" I'm sure), buying your own personal companies(?), loan payments, bank wire transfers to god knows where, some CSD expenses...
So what else... $3 million in "goodwill"?
So how does what the CEO took in balance with legitimate cash expenses? I still think a serious, independent audit is called for.. the sort provided for free by the IRS.
And some people were saying that same this time LAST year. Does anyone have the stock price from a year ago (and how many of you would love to unload your shares at that price)? This would be right about the time the CEO announced his big 'Pee-casso" deal. One would think that snagging an asset worth "$5-$150 million" ..for a mere $2.5 million... would be a financial windfall for any small company like ARTS (by "small" I mean 'microscopic').
TRON:
This time next year it is my opinion based on my DD ARTS will hit $$$'s not Cents. Once EV does what I think he has planned The outside manipulation will have to ride another wagon train. jajaja
SEC rules state that "A related party means any of the following:
*A Director
*An Executive officer
*A 'beneficial owner' of 5% or more of the company
*A person known by the Company to be an immediate family member of any of the foregoing.
An "Immediate Family Member" includes siblings, spouses, in-laws, children, parents, step-parents or live-in lovers (sharing the same house) with any officer, director or beneficial owner.
http://www.docstoc.com/docs/3390441/related-party-transaction-definition
This is worth a bit more DD
So is ARTS essentially a "family business?"
If so, can anyone confirm or deny whether Vladimir and/or Boris Vakser are also involved in any way whatsoever? Just curious.
So let me understand...
Say I own (or control) a penny stock and its' board of directors.. and then I create multiple other companies that I personally own, and then I assign an arbitrary market value to my personal companies (such as saying their 'brands' or 'goodwill' are worth millions.. even though they have no sales, no tangible assets etc), and then I purchase my companies from myself with cash proceeds raised from investors in the penny stock I control, and I'm able to do this without the consent of the investors?
How is that even possible?
What the hell is an "RM"?
"Reverse Merger?" So what.. is Mr. Vakser planning to buy Artfest with one of his new worthless shell penny stocks? If so, then where's the money for this transaction coming from... a secret stash offshore perhaps? Just askin' because the esteemed CEO can't seem to lift ARTS out of sub/ micro-penny oblivion. And investors don't exactly seem to be flocking to his amazing, money making 'opportunities.' Can someone enlighten me?
But to sell them you have to find someone who believes they'll eventually be worth more than you currently do. While I understand your plight, can you honestly say you expect this stock to ever rise very much?
http://en.wikipedia.org/wiki/Greater_fool_theory
So is ARTS a video production company now?
Is that to be their primary business now? One has to assume so inasmuch as (a) this has apparently been the 'business of choice' of the Vakser siblings over the years and (b) they reportedly have a 10 year lease on 33,000 square foot facility (4,200-4,700 square feet of which is comprised of an indoor basketball court --not including boundaries, seating areas, changing rooms etc. Or maybe that explains the 4k foot discrepency between the size of the MAXIMEDIA property and the amount of space ARTS has reportedly leased). One also might assume so since little that ARTS has done (aside from CSD) has produced any measurable sales.
Video production is what the Vaksers supposedly know ..but are they any good at it? If so, then why have their TNT Media Productions (the address is now that of a storage facility), Revolve Communications, ArtChannelTV and other similar ventures apparently fizzled? Have you seen any of their videos on YouTube? Yikes!
TRON wrote...
The cost of a 22 min show to produce for a 30 min seg depending on the graphics and talent is around 50k low end and up too 150k. Hopefully there would be a client out there that would pay that for the Arts and their work. No one that owns a Production studio would even consider doing a show without sponsorship.
How "Soldnet" became "Artfest" plus Picasso question
You are correct. Larry D. Ditto is a boardmenber and officer of Artfest International (see his bio on the IHubs page). Artfest was originally a company called "Soldnet" which was (I think) somehow involved in the nursing home industry. On February 28, 2002 Soldnet had "ZERO assets".. "ZERO liabilities" ..and 40,000 shares of stock they valued at $200 total.
http://yahoo.brand.edgar-online.com/EFX_dll/EDGARpro.dll?FetchFilingHTML1?ID=1789105&SessionID=C--eHC33MvdCE47
On November 19, 2002, Soldnet reorganized as "Artfest" and Ditto received $1 million shares.
http://edgar.brand.edgar-online.com/EFX_dll/EDGARpro.dll?FetchFilingHTML1?ID=2063856&SessionID=RRKjHWRH7jeYcl7
They were apparently operating out of a small strip-center storefront in Grand Rapids, MI.
Apparently Artfest didn't prove profitable either. Artfest bombed too and Ditto was essentially the 'last man standing' at Artfest when Eddie Vakser came calling.
At that point, Artfest was a basically a company in name only.. with its' main appeal being that of a penny stock shell. As I understand it, Vakser struck a deal to trade his companies for controlling interest in Artfest. With that he appointed himself CEO, president and principal financial officer.
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Q: Is Artfest still maintaining that (a) their 'Picasso' sculpture is legitimate/ authentic, (b) are they actively attempting to sell it and (c) are they still planning to publish reproductions of this piece --and if so, when?
In other words, is Artfest still standing by all of the claims they have published?
---------------
Here Lord: One Night In February 2000 Changed My Life Forever [Hardcover] Larry D. Ditto PH. D. (Author)
"I was indifferent and distrusting of God, religions and churches for 59 years, but because of the Holy Spirit I awoke one morning believing in God, Christianity and the Catholic Church. When God called my name I answered, "Here Lord"."
http://www.amazon.com/Here-Lord-February-Changed-Forever/dp/1410742652/ref=sr_1_1?s=books&ie=UTF8&qid=1303768977&sr=1-1
More lawsuits?
Are we, therefore, to believe that these two single cases represent the sum total of ALL legal proceedings --since the end of the 4th quarter 2010 ..AS WELL AS any others currently actively underway-- involving this company and it's CEO? If so personally find that very, VERY hard to believe.
ITEM 3. LEGAL PROCEEDINGS
On July 23, 2010, Mr. Steven Rash, filed a lawsuit in the State of Texas against Artfest International seeking monies owed for services rendered while employed at Artfest from 2008 to 2009. As of the date of this report, Artfest has retained counsel and is working with them to investigate the matter and develop a plan to remedy the issue.
On August 6, 2010, Parker Midway, LP, Artfest’s former landlord (“Parker”), filed suit in the District Court of Dallas County, Texas against Artfest for its alleged breach of its Lease Contract.
On February 24 th a mutual settlement was agreed upon, between Parker Midway and Artfest. The suit against Mr. Vakser was dismissed and the company agreed to pay $ 150,000 dollars to settle the case.
--------------------------------------------------------------------------------
More on Artfest's Amazing Facility
Apparently it's not 37,000 square feet... or even 33,000. According to the Dallas Appraisal district the property measures as follows:
"Total Area: 29,676 sqft/ Year Built: 1972." It's a perfect, one story rectangle measuring 96' x 262'. It has been owned for years by a couple living in Plano, TX. There is no "multi owner" listed.
Click the "View Photos" link for pictures.
http://www.dallascad.org/AcctDetailCom.aspx?ID=24184500010050000
This place is located in "Farmers Branch" (not Dallas) between an Econo Lodge, Days Inn and LaQuinta. It appears to be in a distinctly industrial area with a number of semi-trucks parked in the area. IMO, not exactly the sort of place serious art collectors and investors would find all that impressive.
Someone explain this to me...
From the Maximedia Studios website:
"Maximedia Studios is a 37,000 square foot facility, making it the largest of its kind in the Southwest." http://maximediastudios.com/about.htm
Maximedia Studios
13300 Branch View Lane
Dallas, Texas 75234
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From the Artfest 10-K (Page 13)
ITEM 2. DESCRIPTION OF PROPERTY
Artfest currently leases 33,000 square feet of office and gallery space that houses the Company’s art gallery, production studio, distributor call center area and offices for the Company’s five (5) employees. The Company’s headquarters is located at 13300 Branch View Lane, Dallas, Texas 75234. The Company negotiated a ten-year lease term for the Starfest Expo Center on August 1, 2010, and leased its new studio and production facilities located at 13300 Branch View Lane in Dallas, Texas.
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7865371
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So do I understand that Artfest has taken over all but 4,000 square feet of Maximedia Studios? For real? I take the word "lease" to mean that Artfest enjoys complete and exclusive use of these premises 100% of the time. If true, just what in heaven's name do they need with all that space? As far as I can tell they have no direct selling operation underway, no need to store mountains of unsold inventory.. this is a real head scratcher. Can anyone confirm the truth of this statement?
UTTERLY MIND BOGGLING!!!
(The following statements represent my own personal opinion and DD. Whenever possible, I will provide links to back up any statements of fact)
Again I just can't get over this….
In a “Letter to Shareholders” dated June 25, 2010 the CEO stated “Artfest Direct is projecting to increase its [direct sales force] Membership base to over 300,000 over the next three years.”
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That was TEN MONTHS AGO!!! So by now Artfest should be closing in on 100,000 members, right? So let me guess… what exactly could have prompted such a delusion. Oh wait… this was smack-dab during the middle of the PICASSO HYPE! Does that make sense? Read on…
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“In April of 2010, Artfest International announced that the Company agreed to purchase an original Picasso Sculpture art piece directly from the artist's personal collection. The wooden sixty inch-by-twenty-seven inch Picasso sculpture was completed in 1949 and is titled "Rendering of Francoise Gilot," which is independently valued between $50-$70 Million. Artfest International announced on June 10, 2010 that the Company has signed an addendum to the agreement for the purchase of the statue, allowing the Company up to 180 days to complete the sale and purchase of the sculpture. The purchase price for the Picasso Art Piece is $2,500,000.00 in cash and 50 million warrants at $1.00 per share from Artfest International….”
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(Note the CEO says he "agreed to purchase... directly from the artist's personal collection".. not "agreed to purchase directly from some guy in Chicago who claims he traded a porcelain pot to a dead doctor who supposedly got it directly from Picasso for "services rendered" when he (the doctor) was really young and Picasso was REALLY old" but has no provenance watsoever, no authentication that it's legit --just hearsay and TALL tales. Also note the PR statement does not use the "safe harbor" disclaimers and quaifiers such as ""may," "will," "should," "plans," "expects," "anticipates," "continue," "estimate," "project," "intend," and similar expressions."
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This really is an amazing PR blast. Note his "Number One" priority...
“As CEO, I want to reinforce that I have prioritized two key initiatives for Artfest. Number one is to continue with our plans to grow revenues through marketing and selling limited edition, signed and numbered fine art and collectibles to collectors, dealers, artists, decorators, designers, private collectors and investors….
Best Regards,
Edward Vakser, CEO
Artfest International, Inc.”
http://www.artfestinternational.com/index.php/about-artfest/158-letter-to-shareholders-june-25-2010
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As far as the CEO providing information, assurances and rose-colored projections to certain posters on certain message boards, it’s no mystery as to why he’d favor those who support him. Otherwise, he would likely be spending 24 hours a day fending off angry shareholders. However, (IMO) the CEO knows damn well that what REALLY matters is what HE HIMSELF PERSONALLY SAYS ON THE RECORD… especially in official filings with the SEC. However, I believe he must be held accountable for what is said in press releases or in any other communication he leaks --directly or indirectly-- here or anywhere else. It’s obvious why he chooses not to stand behind his own, vague statement of “pie-in-the-sky-by-and-by.”
(The above statements are my personal opinion and DD. Whenever possible I will provide links to back up any statements of fact)
Re Re Re the 10-K Redux
(The following statements are my personal opinion and DD. Whenever possibleI will provide links to back up any statements of fact)
Re. “Eugene Egeberg, CPA” –according to MANTA it seems this operation consists of one guy and a secretary. Do a Google Maps ‘’street view’ for a look at this place (yikes). IMO I think he looks over the numbers the CEO feeds him, fills in the tax forms and collects his $5k. Still it seems CPA Egeberg is doing everything he can to raise red flags without losing a client. Just sayin’
Re. “33,000 sq foot studio & 6,000 sq foot sound stage—VERIFIED.” IMO, such statements are intended to make it sound like ARTS either 'owns' these facilities rather than just renting all or part of the place. Moreover, what does an art & sports collectibles company need with such a place? IMO this is either some sort of schizophrenic business plan --OR-- someone could be using this facility to serve other clients at investors expense. If I were running an art & collectibles company it would seem more logical to rent a much cheaper warehouse/ production facility with some other venue for any public events and exhibitions. Is the CEO planning to manufacture and sell art.. or be in the TV/ music business?
Re. ARTS “assets”… IMO they need to start SELLING ASAP!!! Problem is the CEO has tried selling art under his various companies with no luck. Remember this?>>>
January 22, 2008: Artfest Outlines Aggressive Goals for Q1 2008: “Artfest currently serves approximately a 500 plus growing membership base comprised of Dealers and Collectors. Artfest is projecting membership to increase by approximately 2,000 new members by the end of the first quarter 2008. The Company forecasts each new member revenue impact to be approximately $6,700 per year...” That comes to $13,400,000 (that’s thirteen MILLION four HUNDRED THOUSAND). Then, in a “Letter to Shareholders” dated June 25, 2010 the company “Artfest Direct is projecting to increase its Membership base to over 300,000 over the next three years.” It’s 10 months later… so what’s the active membership count now? 300,000 x $6,700 per= $2,010,000,000...OVER $2 BILLION DOLLARS!!
In 2008 the CEO announced they had “hired David Sage, the "Billion Dollar Man" as Senior Vice President of the Company's Direct Sales Division.” Sage was touted as “a veteran in the network marketing industry, and was responsible for generating One Billion Dollar in Gross Revenue for a former DSA Organization, NSA.” The PR said “as Senior Vice President of Art Channel Galleries, Sage will cultivate the relationship with current and future Members and distributors so they reach the highest level of success with their own fine art and collectibles business.” http://arti-ob.blogspot.com/2008/02/arti-hires-david-sage.html
This was in February 2008.. it is three years later… where is the army of distributors? Where are the sales? IMO it’s obvious that either (a) there simply is very little market for this stuff and this business model or (b) the CEO is clueless or incompetent or (c) running a scam or (d) any or all of the above.
Re. “Dividends Cancelled” –uhhh..don’t you need to show some sort of profit from legitimate business activity to issue dividends? Some people maintain that earlier announcements of forthcoming dividends which investors believed were to be paid in cash --not with more shares of common stock-- was just a PR ploy to attract new investors. JMO. But it’s good to know the CEO is monitoring this board!
Re. the latest 10-K.. IMO it’s the most honest I’ve seen.. which means it’s an utter disaster. I have to believe the CEO put the best spin possible on it –positive enough to avoid even more legal consequences. JMO… anyone agree?
10-K Observations & Commentary
(The following statements are my personal opinion and DD. Whenever possibleI will provide links to back up any statements of fact)
Under LEGAL PROCEEDINGS Artfest “Agreed to pay $150,000 settlement.” This is proof that the CEO did indeed breach the contract of his lease with his former landlord (some reported ARTS was 'evicted' for continual use of common areas, etc). One assumes the CEO did not agree to pay this amount of money --an amount equivalent to that of his sister’s annual salary-- out of the goodness of his heart. Based on the dire financial statements made in the recent 10-K, it’s highly unlikely it will ever be paid. IMO, it will be discharged thru bankruptcy. However, if not, any cash payment in this matter should show up on the next 10-K. (Too bad this former landlord won’t accept “Goodwill” or common stock in lieu of payment.. I’m sure the CEO tried the latter!)
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To quote Keyscruiser:
"Total Current Assets $ 1,714,167
TOTAL LIABILITIES $ 3,135,641
Net Income (Loss). The Company recorded a net loss from operations of $3,637,411"
But if you remove the $3,798,667 listed as “Goodwill” total liabilities= $6,934,300!!! Add to that any other overstatements of assets, and understatements in liabilities, and you’re well over $7 million in the red, right?
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To quote TRON, I too "think EV has tried to build a company." The problem is he has tried and tried to build a company based on a dubious business model and a dying sector of consumer goods. The art & collectibles industry has been 'on the ropes' for years now and is still in decline.
The CEO states he is using a direct sales model akin to that of "Home Interiors & Gifts." While it's true that HI&G was wildly profitable for many many years, it --and several huge subsidiaries (one Dallas area framing operation that was the size of 5 Home Depot stores!)-- went went belly up in 2008. And this despite the best efforts of billionaire owner Tom Hicks (ClearChannel Advertising, owner of the Dallas Stars & Texas Rangers and more).
http://en.wikipedia.org/wiki/Home_Interiors_and_Gifts
http://en.wikipedia.org/wiki/Tom_Hicks
http://en.wikipedia.org/wiki/HM_Capital_Partners
Now if a guy like Hicks --with all his money, connections and business acumen-- couldn't make it work.. what makes ARTS CEO think he has a better mousetrap?
The other problem (IMO) is the CEO is excellent at "signing agreements" and making grandiose announcements... but he's lousy at focusing and following through with anything. He is (IMO) in way over his head here.
“REVELATIONS: 10-K” –THUS SPAKE EV
(Any comments that follow represent my own personal opinion)
1) The 10-K just filed (woefully late I might add) is for the quarter ending December 31, 2010 –a mere 44 days after the infamous 24,000/1 reverse split. A ton of damage to the average shareholder has taken place in the 3-1/2 months since then. IMO, this filing does not accurately reflect the sorry state of affairs that exists today.
2) All directors collectively hold 295,001,300 shares of common stock (28.82%) which, at Fridays price of .0002, equals a whopping $59,000 –COMBINED. Does that mean the 71.18% of shares remaining are worth (roughly) a paltry $150k?
3) “Goodwill” is STILL listed on the books as being worth $ 3,798,667!!! This accounts for all but 1,831,052 of all assets. Does anyone honestly believe that “goodwill” is worth DOUBLE everything else ARTS owns?
4) “Inventory” is valued at 1,248,357. But is this retail price? Actual cost of goods? What? Who did the 'valuing?'
5) “Accounts Receivables” plummeted from $513,556 to $101,579 –a drop of FIVE FOLD. And this during the ‘high season’ for art & collectibles/ Christmas gift buying.
6)Artfest cannot afford to purchase "key man" life insurance on the CEO or any other officers vital to the survival of this company? That speaks volumes and shows just how vulnerable this company is.
7) Why were investors not notified that Christopher Miner stepped down as CFO in November? The company posted several other announcements since then. Was this not worthy of a mention? And can anyone produce a single document or filing that Miner has signed as CFO? Why has there been no announcement regarding his successor --Ahmad Abdul-Qadir-- who, according to LinkedIn, is reportedly a CPA/ MBA who resides in the Dallas/Fort Worth area?
8) Besides that of former Artfest officer Steven Rash, I know of at least one other lawsuit (this one by an irate investor) that is currently active. I am not at liberty to provide the name of the individual or details (of which I know precious little) at this time so take that for what it’s worth --heresay.
9) “Picasso”: The 10-K finally admits ‘possession’ but not ‘ownership’ of this wooden statue. However, they still insist on referring to it as being a work by Pablo Picasso (IMO it is not). They have still not provided any evidence that ‘authenticates’ this piece as being legitimate. Nor have they produced any documentation or assurances from the Picasso estate or their licensing agent (www.arsny.com) granting Artfest permission to make derivative works (i.e. giclees) based on this piece or to use the name, image and likeness of the artist in promotional efforts. Based on the date carved into this wooden log, it is NOT in the public domain regardless of who produced it.
Despite these red flags, Artfest published promotional announcements which stated:
--“Images of Francoise Gilot are in high demand in the market and have constantly proven to yield top dollar.”
--“This piece will significantly increase Artfest International's assets and add value to the Company's bottom line.”
--“The purchase of this original Picasso art piece will increase Artfest International's asset base as we continue to meet the requirements of becoming listed on a higher exchange such as the NASDAQ or the AMEX," stated Edward Vakser, CEO of Artfest International, Inc.
--“Artfest is raising additional capital to finance the Picasso acquisition, as well as several other investments for the company. In order to fulfill these investments, Artfest Board of Directors elected to increase its authorized shares."
(If I had purchased stock based on these statements which were published beginning almost a year ago, I would be livid!)
As shown above, Artfest lists its’ “Inventory” as being worth $1,248.357. A $2.5 million payment to Barry Wicker… or any significant payment whatsoever.. is nowhere to be found since this announcement nearly a year ago.
10) FINALLY.. ask yourself this:
How much money has Artfest taken in from investors since it’s inception? Was this money used for legitimate business purposes and can it be proven? If not, then where has it gone? As investors you have every right to know.
"Pee-casso" Fiasco
(What follows is my personal ‘due diligence’ and personal opinion)
First of all, I am personally convinced Artfest's "Picasso" is 100% fake. IMO it's a ham-handed monstrosity designed to deceive (with it's forged signature and date.. Picasso wasn't a wood carver and he NEVER dated anything with the MONTH and a specific DAY). Now whether or not the CEO knew this --or had the intelligence to know the difference-- is another matter. However, I happen to know a thing or three about art and I'll stake my reputation on my assertion. IF this thing is EVER 'authenticated' as being legitimate I'll recant everything negative I've ever said and cease all postings.
Regardless, Mr. Vakser and Mr. Barry Wicker --the seller of the sculpture-- entered into a buy/ sell agreement (not a consignment agreement) on 3-31-2010 and filed documents with the SEC stating as such. Mr. Vakser filed a subsequent document and posted a statement (still on the Artfest website) stating "June 10, 2010 that the Company has signed an addendum to the agreement for the purchase of the statue, allowing the Company up to 180 days to complete the sale and purchase of the sculpture." That time has long since expired. Since there is no evidence of Artfest ever paying Mr. Wicker the $2.5 million in cash as announced --and the 'appraised value' of the sculpture not showing up on the books-- one must assume the deal ultimately fell through.
Based on their mutual agreement, Mr. Vakser issued a barrage of press releases wherein he claimed Artfest's “ownership” of the piece, announcements of his intention to sell the piece and announced plans to produce $2 million worth of illegal, unlicensed canvas reproductions based on the piece (those announcements have since been removed from the Artfest website but they still exist elsewhere online). These were supposedly to be sold via his "network marketers" (few, if any of whom exist to my knowledge).
IMO, Barry Wicker lied to the SEC when he stated that he possessed "all rights of ownership to include all copyrights, rights to duplicate, and Seller warrants all legal right thereto with full authority to transfer said rights to Artfest" (Exhibit 2.1 line 4 --see below). Without written proof of such authority granted to Mr Wicker by the Picasso estate or his licensing agent http://arsny.com/ Mr. Vakser --a self described 'art expert'-- had to know this was a lie. Mr. Vakser claims copyright on various music and video creations he has created --and has ample access to legal counsel-- so he cannot claim ignorance of the law. IMO, Mr. Vakser simply cannot pass blame any of this on Barry Wicker.
CONCLUSION:
I personally doubt that Mr. Vakser ever had any real intention of paying $2.5 million in cash for this thing. I think what mattered most was the PR value of this item in attracting new investors.
Buy/ Sell + copyright claims
http://secwatch.com/arti/8k/events-or-changes-between-quar/2010/5/11/7200105
180 day addendum:
http://finance.yahoo.com/news/Artfest-International-Inc-and-iw-2911816207.html?mod=pf-family-home
I agree! TGIF :)
Picasso- Real or FAKE?
This question can quickly and easily be answered by people who truly know about such things and put their reputations and fortunes on the line. Go to Sothebys.com, click 'Departments and Services,' click 'Services' then 'Valuations' and 'Auction Estimates.' You'll see where they state "Sotheby's specialists can easily provide you with gratis auction estimates based on photographs. To request estimates please click here to print Sotheby's Auction Estimate Form." They will provide a FREE estimate for any work they deem to be worth more than $5k.
http://www.sothebys.com/about/contact/estimate_form.pdf
If the 'appraisal' by Veritas (not "Eritas") is even remotely accurate I can assure you Sotheby's, Christie's and every other legitimate auction house and dealer would fly into Dallas within 24 hours for further inspection and to strike a consignment deal.
Verification and authentication of this piece by Sotheby's would be a literal gold mine for Artfest. Yet after a year of promotion the question remains --"why has this not yet been done?" IMO the answer is obvious.
More Picasso DD
Artfest filed the following statements with the SEC:
"On March 31, 2010, Artfest International, Inc.. (the "Company") entered into an Sell/Purchase Agreement with Barry Wicker whereby Barry Wicker agreed to sell a sculpture attributed to Pablo Picasso.The value of this art piece at current time is unknown and could be worth between $10Millions and $70Millions and the company will be getting an independent appraisal in the near future."
http://secwatch.com/arti/8k/events-or-changes-between-quar/2010/5/11/7200105
HOWEVER... they subsequently published the following appraisal... dated February 23, 2009.. a document created over a year earlier. So were the SEC statements a lie?http://sites.google.com/site/wickarte/francoise-gilot-by-picasso
To my knowledge, no other "appraisal" was ever produced. Nor has the sculpture ever been "authenticated" (i.e. proven to be legitimate and not a forgery).
Comments?
I agree
<eom>
Ditto (ps: I'm banned from the other board.)
Ehhhhhhhhhhhhh
just doin my time
I agree
I'm curious too
Eddie evicted in 2009 by WAMU
Go here and search for VAKSER. Aside from all the traffic tickets, failures to pay his vehicle registration, car tags, tolls etc (some of which show his address as being that of an "Ike Vakser" as well as Vladimir) you'll find the following eviction:
Case Number 02-EV-09-00363
Date Filed: 12/07/2009
Case Type: CV - Evictions
Style: Washington Mutual Bank vs. Edward Vakser
Judicial Officer: Douglas, Terry L. in Precinct 2
Defendant: Vakser, Edward 16160 Cr 635, Blue Ridge, TX 75424
Plaintiff Washington Mutual Bank Atty: Chance L Oliver
Cause of Action: See Washington mutual Bank's Original Petition for Forcible Detainer
http://apps.collincountytx.gov/cccasesearch/Search.aspx
Pardon me if I'm wrong but wasn't EV raking it in as CEO of Artfest in 2009.. yet he couldn't make his house payment? Enquiring minds wanna know
NEWS ALERT>> ARTS is making people SUPER RICH!!!
Those people are Eddie, Angie, Vladimir, Larry, ex-con Beryl Zyskind and a handfull of other loyal insiders... the rest of you are screwed.
From what I gather it's THEY who are doing all of the selling. At these prices they ought to be buying like crazy and trying to take this 'cash cow' private. Oh wait, that'd mean they'd have to actually sell something other than stock.. like art and collectibles.
PS: The Picasso is AWOL. It doesn't appear as an asset on the financials, no art prints published as promised, the PR claims removed from the Artfest website. Can anyone explain?
911 didn't happen here Chas.. the Vakser scam machine did. There's a big difference.
Is Eddie soon to be homeless again?
10-Q, Page F-15
"On August 1, 2010, the Company entered into a ten (10) year Sublease Agreement and leased its new studio and production facilities located at 13300 Branch View Lane in Dallas, TX. Concurrently, the Company executed and issued to the Lessor a convertible promissory note in the amount of $272,396 in order to cover the first six (6) months of rent, the security deposit, and to allow for a budget for leasehold improvements. The convertible promissory note is made payable six months from the date of issue and bearing an interest rate of 10% per annum. On or before the maturity date, upon written notice to the Company, the Lessor may elect to convert the principal amount of this Note into Common shares at a conversion price determined and pursuant to the average trading volume of the Company’s shares at the time of conversion."
http://www.sec.gov/Archives/edgar/data/1168738/000143209310000865/artfest10q093010.htm
Well, 6 months was up February 1st. So does anybody think Eddie made good on his 'promissory note' and paid Maximedia $272,396 in CASH? Does anyone think Maximedia instead elected to accept shares of ARTS stock instead? I'm betting eviction proceedings will be forthcoming soon. Anyone care to take me up on that?
Btw: I hear that Eddie's former landlord at Midway Rd (whose photos STILL appear on the Artfest website) agreed to settle their lawsuit against Eddie. I'll post the terms of the agreement if I find out.
"What are the ASSETS" you ask?
Well here's a copy (see link below) of the fiction Eddie Vakser submitted as of September 30, 2010. He lists total assets of 5,721,801 (a small drop from the previous year) of which two items stand out:
1) "INVENTORY" --$1,351,397 (a tiny increase of $11,147 over the previous year --apparently the stuff is unsellable). Oddly enough, the much ballyhooed and hyped "Picasso" sculpture appraised at between $50-70 million is nowhere to be found!!!
But by far, the largest "asset" on the books is (hold onto your shorts)...
2) "GOODWILL" --$3,637,706!!!! Seroiusly? Eddie thinks the warm, fuzzy, positive, confidence inspiring power of his 'brand' is worth over $3.6 million? In another head-scratcher, Eddie dropped the value of his "goodwill" $141,794 over the previous year at a time when his hype machine was working non-stop.
SO when you add unsold INVENTORY (1,351,397) + GOODWILL (3,637,706) you have a grand total of $4,989,103!!! So take those two items out of the equation and Artfest has assets (according to Eddie) of::
$732,698 .. and I personally think that's WAY too high! Afterall, he's booking $187,089 as depreciation of "Property, Plant and Equipment."
Again.. Eddie generates these figures himself and sends them to his accountant for rubber-stamping. The accountant's disclaimers give him a giant hole to jump through to avoid any liability so what does that tell ya?
http://www.faqs.org/sec-filings/101122/ARTFEST-INTERNATIONAL-INC_10-Q/
Eddie took 24,000 shares from you and gave you 1 valued at $2.40. That one share is now valued at $.0004.
So who is responsible for this-- all the big, bad bashers-- or the person who has an endless supply of stock to keep diluting to infinity? ARTS is the investment equivalent of homeopathy.. sheer financial quackery.
Great post
You sum up Eddie and Vladimir perfectly. They sold their souls to the "root of all evil" years ago.
Eddie touts himself as being a "Christian" but --as with most con men-- that's merely a marketing ploy. Saying you're a 'Christian' gains you instant access and credibility to a huge number of gullible saps. Politicians know this and repeatedly manipulate and exploit these people.
Eddie has repeatedly tried to replicate a bankrupt 'product based pyramid scheme' disguised as a network marketing MLM that sells canvas art prints. The company he worshipped (and was a member of)was International Galleries, Inc. (The President and CEO dropped dead about 6 months ago while attempting a comeback called Art Reach Worldwide). IGI was founded by a guy who's currently rotting in prison for also running a Ponzi scheme called MEGAFUND that targeted and defrauded pastors. Both scams were later revealed to be the "assets" of a much larger 'prime bank' scam that ran into the hundreds of millions.
These are Eddie's heros, models and mentors. He brings those same ethics to Artfest.
http://www.justice.gov/usao/txn/PressRel08/leitner_sen_pr.html
http://www.bizjournals.com/dallas/stories/2006/02/20/story7.html
http://www.haysconsulting.net/correllhorizon/01-23-06%201st%20Interim%20Report.pdf (see page 26)
Eddie is AWOL.. ARTS is DOA
Email exchange withing the past 24 hours:
In a message dated 3/9/2011 3:40:19 P.M. Central Standard Time, fasteddiesux2945@yahoo.com writes:
Any news? I'm still curious to know if Eddie's a tennant at Maximedia as claimed.. or if he's just using it as a maildrop.
its hard to get these guys on the phone....very strange....
IS EDDIE EVEN AT MAXIMEDIA STUDIOS?
Or is it little more than a glorified mail-drop?
2/17/11
A guy I know relayed the following attempt to reach Eddie/ Artfest:
"I called [Maximedia Studios] and they said in a stumbling voice that said "uh.. yes they are here... but hold on and I will try to get you a number." 5 minutes later I hung up. What a bunch of russian cons!!!"
Doesn't exactly sound like Eddie is very important around there --his supposed 'international headquarters.'
Try it yourself:
http://www.maximedia.us
What percentage increase is needed to hit $2.40?
It's $.0022 as I type. And even if it ever did hit the R/S price of $2.40 it still has light years to go for most people to break even.
This stock SUCKS because EDDIE SUCKS
SUCKS as a CEO and SUCKS as a human being. It is where it is --in sub penny land-- because of him, his actions and incompetence.
No PR since December 8th tells me either his back is against the wall or he's under official scrutiny of some sort.
Artfest continues to bleed red ink. However, his December 10-Q/A states "The increase [in revenues] is primarily due to expenses attributed to the Company's wholly owned subsidiary CSD." Eddie should cast off all his other wet dreams (girlie football, TV programs, audio/ visual plans, RFID etc) and concentrate on CSD and art sales. That's a no brainer.. but Eddie is the 'Scarecrow' of Sub-Penny Land... he's stupid, made of straw and has no brain.
http://biz.yahoo.com/e/101223/artsd.ob10-q_a.html
WHAT SAY YE ALL??
Eddie's salary just the tip of the iceberg
Your kidding right??? Just add up Eddies salary for the past 9 yrs if you want to come up with millions. That doesn't include all he has raised for all the failed ideas.