Someone that seems to be getting a pass with the whole LJC situation is Phipps. According to the documents in the LJC litigation, "After WSG’s SEC counsel recommended that WSG work with La Jolla, the parties negotiated several contracts." WSGI's SEC counsel was Stephen M. Fleming who has represented Phipps and his various nominee entities for years.
I've previously discussed Phipps' involvement with another questionable penny stock called GlobalNet Corporation (GLBT). Fleming's name appears alongside Phipps in all those filings. I beat that horse years ago, but have included a quote from GLBT's financials at the end of this post that summarizes their experience with Phipps and GTC for the newbies here.
I don't dispute that the buck stops with Clark and Estrella in regards to the LJC funding. They were in charge with a purported background of being financial geniuses. They also had a full time lawyer on staff in Barb Johnson to review the agreements. I'm just a dumb ole country boy that Ren correctly points out has no legal training, but the heavily diluting clauses and true-up provisions contained in the LJC agreements appeared quite obvious to me when they were released. The ignorance claimed by the company is either disingenuous or an example of extreme incompetence. Others here have a different opinion of Phipps, but his crew's involvement in bringing La Jolla into the fold comes as no surprise to me. I've been suspicious of his string-pulling shenanigans for years.
"On January 5, 2004, the Company secured a contract with Global Telesat Corp., a wholly owned subsidiary of GEF, for worldwide termination of voice and data mobile satellite telecommunications traffic originating in Iraq. In conjunction with securing this contract, the Company issued 300,000,000 shares of common stock to International consultants valued at $21,000,000. The Company did not derive significant revenues from the Global Telesat Corp contract, the consultants failed to fully perform the contractually required consulting services. . .The Consultants performed some services in the first quarter of 2004, but little, if any, thereafter. Accordingly, the Company wrote-off a related entity receivable of $21 million in the first quarter of 2004."
