Can one of you guys comment on this:
Last month, Rich McBride, along with our Company, was named in a civil action that was filed in the United States District Court for the Middle District of Florida by one of our shareholders. The case was filed as a "class action" suit and alleges violations of Sections 10 (b) and 20 (a) of the Securities Act of
1934 and Rule 10b-5, thereunder. The Company's legal counsel is currently assessing the allegations of the complaint and is unable at this time to provide an opinion regarding the merits of the suit, its likely outcome and/or its likely effect on the Company. However, if the Company were unsuccessful in defending this lawsuit, this matter would have a material adverse effect on our financial condition and operations. Presently, Mr. McBride does not have a material interest adverse to the Company with respect to the suit; however, it is possible that a conflict of interest between Mr. McBride and the Company
could develop in the future.
"Possible conflict of interest" Please advise?
Now after the 8k debacle what does this tell you?
Independent Public Accountants.
Selection of the independent auditor for the Company is made by the Board of Directors. During the fiscal year ending December 31, 2000, the Board of Directors served as the Company's Audit Committee with regard to audit and accounting issues in the absence of a formal committee. Accounting Consultants,
Inc.; Carol L. McAtee, CPA, currently serves as the Company's independent auditor. Representatives of Accounting Consultants, Inc. will be present at the annual meeting and will have an opportunity to make a statement or respond to
appropriate questions. The Board of Directors has not yet selected the auditors
for fiscal 2001.
Now this group of directors were directly responsible for the fraudulent filings? Rich said he would not vote his shares. Then why o why are they still the directors? Is this a red flag or what?
"The affirmative vote of a plurality of the shares represented at the Annual Meeting will be necessary for the election of directors. Abstentions will be treated as negative votes cast on a particular matter as well as shares present and represented for purposes of establishing a quorum."
To me this is this same old SEVU just some new names on the business cards.
Again, I digress.....
How many red flags does it take!
Happy Posting!-----
