I suspect the reason that they are acting this way is because they think there is still money there. They are wrong and this is why. Morton and Carole Salkind had lent NCT $38.4 million dollars (Morton later went to prison for one of New Jersey’s largest individual tax frauds.) In 2004, NCT was being sued in Delaware by PRG and in CT by Metcoff and Wilson. In the Delaware case the CFO admitted that funds were being deposited into subsidiaries to keep them out of reach. That case was settled out of court. In the CT case, both Michael Parrella and NCT were sued and lost. There are outstanding judgments against Parrella for over $2 million and separately against NCT for over $2 million all earning interest since 2011. The question everyone is asking is, “Where is the money?” The Salkinds filed for bankruptcy and the trustee is still trying to find it.
I believe the money was being held in Pro Tech Communications, a subsidiary of NCT. The problem Parrella had was getting it out and cleaning it up so he could use it. This is how he did it. In 2008, Augustin-Mokrane Belmadi-Berkaine (an alleged international criminal), the Vatican and others obtained over $14 billion in Mexican Sovereign bonds. Belmadi-Berkaine then approached Michael Parrella to monetize them (use them as a way to launder money). Together they started a company called Four Crystal Funding. Four Crystal then purchased 85% of Pro Tech Communications, which immediately invested it in GTherm. (The Mexican government said the bonds are real, but because they are so old and there is no market for them, the value could not be determined.) So Parrella, through Four Crystal, picks up the money stashed in Pro Tech and starts a new company GTherm. And that is where it is today.
Michael Parrella abandoned 931,175,126 shares of NCT. He took the shareholders money and ran, and so far has gotten away with it.
