MMEX Resources Corp (MMEX)

[shajandr]

Can't spin this:

http://www.deseretnews.com/article/7873/US-MULLS-FRAUD-SUIT-AGAINST-LAW-FIRM-LINKED-TO-STT.html?pg=all

"The U.S. Justice Department is considering charging a well-known Texas law firm with offices in Washington, D.C., with fraud in a civil action linked to a $4.2 million federal grant for Select Telephone Technologies Inc.

The government's action was discussed in depositions taken in a case Salt Lake City filed in February 1986 against Jack W. Hanks, a partner in the Washington office of the Dallas law firm of Akin, Gump, Strauss, Hauer & Feld; and Michael S. Mandel, an associate of the firm, alleging they defrauded the city and the U.S. Department of Housing and Urban Development under the federal false claims act. The city alleges the attorneys helped set up a corporation that was no more than a shell, then used that shell to secure the government grant - of which the first 10 percent went to pay their own legal bills.

In its lawsuit, the city charges other conflict of interest violations, as well. Both attorneys and their law firm were investors in STT, the telephone refurbishing company they represented in order to secure the federal grant, while Hanks was at one time listed as a company officer and personally guaranteed a $525,000 loan for STT.

City Attorney Roger Cutler said he believes the strength of the city's case can stand on its own, but agreed a Justice Department suit will help the city's cause.

"They are obviously a very heavy-hitter, and they will bring a very important dimension to the lawsuit."

The STT grant fraud is an issue that continues to follow Ted Wilson, who as mayor helped the company obtain the grant and is now running a Democratic candidate for governor. Wilson's opponents have brought up the STT grant scandal during the campaign in an attempt to show Wilson is a poor manager.

"If the Justice Department does go after Akin, Gump, it begins to prove that Salt Lake City wasn't alone in being hoodwinked in some way," Wilson said.

At the taking of depositions for the Salt Lake City case, William W. Taylor, Hanks' attorney, noted that Marlene Gibbons, an attorney for the U.S. Justice Department, was in attendance. "She has advised us that the Department of Justice has under serious consideration, if it has not indeed made a determination, that it will file an action against some or all of the parties defendant in this case," Taylor said.

"There has been no secret that the city of Salt Lake City and the U.S. Department of Justice are cooperating in the sharing of information, sharing of documentation and in discussions of the facts of this case."

...

Assistant Salt Lake City Attorney Bruce Baird released the transcripts to the Deseret News only after allowing the defendants' attorneys a 10-day period to file protective orders, of which none was filed.

In 1,800 pages, the transcripts detail a complex web of failed financial deals - which weren't disclosed to city and HUD officials - in order that the grant would be approved, and the law firm would receive its payments.

In October 1984, then Mayor Wilson announced that an FBI probe was being conducted of alleged misuse of federal Urban Development Action Grant funds. The city helped STT founder, Robert Gyemant, who has now declared bankruptcy, obtain the grant. The money was to have been repaid to the city, setting up a revolving business incentive fund."

So, if that's how you define 'stellar reputation' - then LOL!!

As I've said here several times, Jack is a crook and his schemes and his pennyscams and other unsavory dealing go back decades. The most recent two pennyscams, in 2003 and 2010, are nott his first dance in the pennyscam arenas. He's been grifting investors and others for DECADES.

MMEX is just his LATEST pennyscam swindle.