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Haha! Take a look at what Schadel did with the $1 million he got from the 5 branch liquidation last year...
DEBT INCREASED!
First of all, $1 million in payroll taxes is INARGUABLY delinquent. Second, when the liability DOUBLES to $2 million in one quarter there is a far more serious issue at hand. Either there is more late taxes or the cost of the original delinquency is sky rocketing. Considering what being delinquent with payroll taxes cost TSGL per their last financial filing and standard IRS collection practices on delinquent taxes there is exactly zero doubt that either scenario constitutes an increase in liabilities due to delinquent taxes that is 100% verifiable.
2014 1Q, 2Q, and 3Q. The delinquent IRS debt disappears from reporting in 2015, but in the second half of the year the liability doubled to $2 million. Schadel has acknowledged on Twitter this year that there is still an outstanding delinquent debt, but that there is "nothing to report", which is why he stopped reporting...because clearly there was nothing to report in the first place...I guess. What a friggin' scam.
Taking the word of a trip 5 CEO who is behind on millions of dollars to the IRS for payroll taxes and millions of dollars in toxic loans while playing pinky shell games. Now there's investment advice.
Uhhhh...are we talking about the same Ryan Schadel who is now fighting 3 lawsuits related to not paying his notes? What's to spin? CCNI contacted Schadel to convert and, yes, they leveraged the delinquent note they purchased to gain an advantage over LTNC using Schadel's stupidity against him. Isn't it laughable how CCNI is somehow so bad for doing that, but when Schadel decided to breach all of his forbearance contracts by virtually eliminating the share reserve without note holder approval it was somehow "smart"?
lol...what's Schadel supposed to say?
"I also believe that the judge will rule that I pay x fees and penalties along with x default interest. And, oh by the way, the note will convert due to default. Whoopsie! Sorry about those "promises"!"
Yeah right! We know that is what he's facing, but even I would admit he'd be a bigger fool than he's made himself out to be if he were to speculate on looming penalties. Nah, he kept it to the point with regard to the debt. Smart investors can interpret beyond the marketing with the facts at hand.
You must have missed the part where 30 branches generated LESS THAN 15 branches YOY for two consecutive quarters in 2015 before Schadel began liquidating and closing them.
"I do believe that a judge is gonna' say we pay them $5,000 a month..."
"That's what I think will happen."
Not much of a "tortious interference" suit there. And now we know that numerous note holders are trying to convert despite so-called cash payment arrangements. Gemini would not likely have sold the note unless one condition had occurred: default. And with default comes conversions per the publicly released forbearance agreements. However, Schadel is now not only in default, but also in breach of contract with allegations of fraud for reducing the AS. He's got a world of hurt ahead of him.
CPW is 100% correct with his response to your post. In addition, 30 branches (one was closed and another was "consolidated") did less revenue in the first two quarters of 2015 than 15 branches did in the first two quarters of 2014 and now there are reportedly only 13 left. Revenue is tanking hard and that's WITHOUT looking at the outlandish projected revenue by this incompetent CEO as seen in this presentation that USED to be part of the investor package on the company website (see slide 10):
https://docs.google.com/gview?url=http://www.laborsmart.com/wp-content/uploads/2014/02/NIBA-PRESENTATION.pptm
Nope...Schadel quite clearly said he expects the judge to rule in favor of full repayment and then went on about how his feelings are hurt and he's gonna' get them back, those big bullies! Hardly the "millions in damages" that people were somehow thinking CCNI was going to have to pay.
No, but thanks for pointing me to Youtube. I forgot that videos are posted there. Here is the correct video in which Schadel says (despite all his ridiculous bluster about how "piss poor" CCNI is operated) that he expects the judge to rule in CCNI's favor so much that Schadel venomously makes reference to "looking for an opportunity to revisit" the action against CCNI (would that not be what a successful lawsuit for "tortious interference" is supposed to do?). It starts at about 28:35 followed by a remark about Schadel's "giant ego".
It's funny, though, how he was following the lawsuit so closely in January, then hardly had a word to say about it in April because he's "not intricately involved".
Good luck with that. The January Periscope appears to have been deleted and Schadel never released a transcript like he did in December. In fact, there were no transcripts released of any Periscope video after December (3 total).
Watch on #Periscope: yes the office is real https://t.co/f1NSH40Lkr
— Ryan Schadel - CEO of $MVCO (@CRyanSchadel) January 14, 2016
Schadel pretty much conceded a loss to Command Center in his January Periscope conference call. He is now just hoping for a reasonable payment arrangement. What reasonable is with less revenue than when the note went delinquent is certainly a mystery..
Suffice it to say that I fully expect to see details of 3 lawsuits against LTNC in the 10K under "subsequent events" if it should be released. Possibly more.
And if Schadel continues down the path he is currently going, he is facing a lot more trouble than has been currently revealed and that's just the litigation by private parties. The SEC and IRS are entirely different matters that Schadel will have to deal with.
I don't expect LTNC to last through the year. At least, not with any of the current leadership and not without an RS to restructure under new leadership/owners.
The expectation of a reduced award is typical in legal proceedings, so any claim that an "excessive" claim to damages is somehow merit to throw out a case is pure bunk. I wish you the best with your collection efforts against LTNC and thanks for the additional PM communication.
Or "invest" in LTNC and lose everything.
.80 to .0005...how many investment "opportunities" were there during that time? None. This stock has become pinky flipping trash and nothing more.
It's a losing battle. Schadel has already conceded that the suit from Command Center is not going in his favor and the most recent fraud suit is very specific and comprehensive in what it alleges.
If Schadel is actually trying to fight both suits, then he is burning right through what's left of that million dollar shell game.
However, it's just as likely that Schadel is orchestrating an escape plan.
40 million, flat pps, maybe another EOD paint.
I wonder how Ryan Schadel feels about Kimberly Thompson being CEO of Labor Smart.
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11087020
I wonder how TCA will react to the news that on Decemebr 31st, TSGL sold all assets and liabilities to the outgoing CEO. I also wonder how they'll receive the news that Kimberly Thompson is also COO of Labor Smart. in fact, she is so confused at her dual status that she signed the December 31st 8k as CEO of Labor Smart.
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11087020
Hence, the late 10K. Tough to spin a scam.
Although, that would really matter most with the 10Q, but "subsequent events" should be revealing.
5 ticks above no bid: doom wins.
$3.5 million in late toxic financing: doom wins.
$2 million owed to the IRS: doom wins
Shell games involving more toxic financing: doom wins
Late 10k: doom wins
60% reduction in branches: doom wins
Loans at awful interest rates requiring immediate daily payments: doom wins
Revenue falling millions short of projections: doom wins
Two lawsuits including allegations of fraud: doom wins
CEO said no dilution and buyback authorized, but dilution confirmed as recently as last week to 7.47 billion OS: doom wins
CEO who recently said an SEC investigation is an "arbitrary" reason for pps plummeting: doom wins
The list goes on and on and on
It's been 2 months since the so-called buyback was authorized, yet just last week we got confirmation that there has been more dilution and the PPS is steadily dropping back to no bid. That's not a buyback. That's a scam.
If you seriously think that is what the terms are meant for in the revolving account....well, lol back atcha'.
You mean the "ridiculous" fraud suit against LTNC, right?
Soooo "ridiculous" that this trip 5 stock is dealing with two lawsuits including fraud.
5 ticks from no bid and that's supposed to be something to get excited over while a nonexistent buyback is countered with more dilution during shell games involving offshore loan sharks.
Yeah...THAT doesn't look like fraud.
BACK to no bid where this turd belongs.
NEVER happens with pinkies. Such a shocker!
ROTFLMAO!!! Good luck with that. Schadel has McLaren payments to make, late payroll taxes, late toxic notes, daily payments on $175,000 loan at 59% interest, and he has to make payroll on what is confirmably a declining factoring credit line while already losing $2.5 million this year per the last report that he bothered to release.
All with only 40% of the branches he started this mess with.
Where's that 10K?
lol
That's right...NO BUYBACK. Where's the volume with increasing pps instead of a dropping pps? And why has there been dilution confirmed as recently as last week?
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=121690786
Nearly 1 billion shares diluted since November and 60 million of it last week.
Some buyback. lol!!!!
Great points...there is no buyback. Only CEO ATM.
Really? The loan is toxic as hell! You don't see the default condition if $1.5 million isn't repaid by October 5th????
18% interest PLUS conversion at 85% of the VWAP plus $750,000 "advisory fee" that has already been paid to a Cayman Islands loan shark...how much more toxic do you need?
And where is that $1.5 million going to come from? The 4 branches "purchased" from LTNC that TSGL is going 45/55 on revenue???
Have you seen the losses by LTNC for 2015???
Shareholders here are going to get crushed and very soon.
Schadel is probably THE majority shareholder in TSGL:
Funny how Schadel sold his controlling interest right as his COO was getting ready to sign a deal with the devil as CEO of TSGL. I wonder if that dual relationship of an executive officer is enough for TCA to litigate against LTNC in the event of default on October 6th? If there is a way, TCL will do it with a vengeance. I'd venture to say that the additional fact that LTNC is a major shareholder in TSGL will be a contributing factor.
Nearly 1 BILLION shares diluted since November.
Don't you know? 4 weeks is "old news" here...lol
You forgot about the recent dilution.
The OS is now 7.472 billion shares.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=121690786
And where, oh where, is that 10K?
Can't wait for the NT10Q while Schadel continues with shell games to distract from the millions of dollars in late toxic debt and taxes.
lol
Week, after week, after week, except now it's more like month, after month after month as the pps tests closer and closer back to no bid.
$3M toxic credit line from....CAYMAN ISLANDS!
Everyone might want to cool their jets and take a look at how many companies TCA Global Credit Master Fund, LP has in bankruptcy proceedings with such claims as FRAUD in the mix. You might also want to look at how penny stocks have done when they start doing business with this offshore establishment. It isn't pretty.
TSGL may be the one on the hook for the loan, but rest assured that TCA Global will not hesitate to crush Schadel for being part of this scheme if/when the millions of dollars in this new toxic debt is not paid on time.
Just think: $160,000 of the new loan is going toward paying the $2 million Schadel owes the IRS and another $30,000 is going toward $3.5 million in delinquent toxic debt.
Cayman Island loan sharks.
Can it get any more desperate? Let's find out....
Bear in mind that the most recent filing does note reflect that ALL assests and liabilities were sold on December 31st to the outgoing CEO. LTNC COO Kimberly Thompson is now also CEO of TSGL, which is just a shell company.
I don't hate anyone. I don't like Ryan Schadel and I have no particular regard for anyone who supports Ryan Schadel. I expect anyone who practices business ethics shares my feeling.
Labor Smart is being sued for fraud, that's the problem.
The details of why are laid out plain as day. None of it should be a surprise to anyone here because most of it has been covered many times on this very board.
http://www.fox14tv.com/story/31638574/labor-smart-inc-sued-for-fraud
SALT LAKE CITY, UT / ACCESSWIRE / April 4, 2016 / Labor SMART, Inc. (OTCMKTS: LTNC) was sued today for defaulting on contractual debt. The lawsuit alleges that Labor Smart, and its CEO, C. Ryan Schadel, committed breach of contract, and fraud. The suit also seeks a preliminary injunction to prevent Labor SMART from selling its branches and completing its stock buyback.
In March, Prometheus Capital Solutions, LLC, a finance company in Utah, purchased debt owed by Labor Smart. According to court documents, Prometheus demanded payment of the debt and Labor Smart refused. “Labor Smart knows they owe this debt; they just don’t want to pay it. They have no excuse. It’s deceptive, fraudulent, maybe even criminal,” said Steven Maese, Prometheus’s Manager.
The case was filed in Utah District Court (Case # 160902181). A copy of the lawsuit can be found at http://www.procapsolutions.com/ltnc/lawsuit.pdf. The lawsuit asks for actual damages, liquidated damages of $4,000 per day, as well as costs and attorney’s fees.