Auri Inc (AURI)

[Kool Aid Man]

Legal deposition by "Sky Jones"

A total of 180 pages. Words can't begin to explain what a flim-flamming hustler character this guy is. Apparently he lives a virtually homeless vagabond life while operating a high volume traveling circus-type painting factory with thousands of paintings created under his name by homeless people. >>HE<< promotes himself using various alias.' He also "appraises" his paintings himself --under another alias-- in the million of dollars yet he never personally insures them. It seems these "artworks" were/are used primarily for barter, tax and insurance scams.

I first tried to select some excerpts to post but there are simply far far too many and most are astoundingly bizarre.
http://www.bankersart.com/about/newsandpress/news/sec/secdeposition2001.pdf

Topics include-->

Banker Art Museum Authenticity
Banker Art Museum List of Paintings
Compilation of Appiraisals
Mid-Nevada Art, Inc. Provenance
Pheonix Art Capital Corp
Pheonix Art Capital Corp

SEC ActionFor example, a large and material portion of Itex's barter-derived assets and revenues during the period of Andersen's audits involved the artwork of an artist named Sky Jones. In auditing these transactions, Andersen relied on appraisals that he understood were based on a barter situation, some of which even expressly assigned a barter value for each piece of artwork. Since Itex considered a barter credit to equal one US dollar, Andersen considered any distinction between cash and barter value to be irrelevant. He did not know whether the appraisers ever relied on any cash sales in valuing the Sky Jones artwork. The presumed equal status of cash and barter transactions precluded the skeptical inquiry required of Andersen and led to his failure to question certain red flags in the appraisals. Many of the appraisals, none of which referred to Sky Jones, gave the same value to numerous pieces of artwork. For example, fourteen Sky Jones paintings were carried on Itex's books at an arbitrary discount to an appraised barter value of $62,500 each. In another example, 29 Sky Jones sculptures were carried at an arbitrary discount to an appraised value of $110,000 each. Moreover, Andersen's failure to conduct the assessment required by GAAS prevented him from learning that these appraisals were based on information that should have caused him to reject them as unreliable.
http://www.sec.gov/litigation/admin/34-45502.htm

Pheonix Art Capital Corp (Interesting coincidence in light of today's PR regarding "Phoenix Fulfillment")-->

2012 Bankruptcy by Scott N. Weinert (debtor)- President XEBEX Corp
http://bankrupt.com/misc/txnb12-36773.pdf
A revoked Nevada corp
http://nvsos.gov/SOSEntitySearch/CorpDetails.aspx?lx8nvq=Gt72dxUjXtYPBcr4brdKIA%253d%253d&nt7=0

Weinert is now Phoenix Fulfillment-- a company with a 1 page website, no address and a cell phone.