Digital Brand Media and Marketing Group Inc (DBMM)

[Jetmek_03052]

Dude, wrong, wrong wrong and wrong.

The Asher CDs were from 2012. Never another to Asher.

I think the testimony provided shows differently:


Testimony from the Administrative Proceeding hearing held on 08/09/2017 - MY Bolds.

Page 113

Q Digital Brand has been sued a while ago by Asher
9 Enterprises over promissory notes that Digital Brand have
1 O voluntarily entered into with Asher Enterprises. Correct?
11 A Yes.
12 Q And you borrowed money from Asher Enterprises with your
13 eyes wide open, but -
14 A And everything was going along -
15 Q Let me finish my question. Let me finish my question.
16 With eyes wide open, and then you defaulted and were
17 sued. Correct?
18 A Yes.
19 Q And nothing is surprising about that, that if you
20 borrow money and you don't comply with your obligation and you
21 get sued. Correct?
22 A It didn't quite work that way.
23 Q Now, you borrowed the money when it was - strike thal
24 I'll start that over again.
25 At the time that you borrowed the money, you knew that (Continued on page 114)

Page 114 -

1 Asher Enterprises was known as lender of last resort?

2 A No, not at the time. We had been borrowing money from
3 Asher. Keep in mind we acquired Digital Clarity in 2010, 2011
4 at the top of the worst financial recessions we ever had. IBM
5 couldn't even borrow money, let alone us.
6 So yes and begrudgingly egregious terms. We were fine.
7 We borrowed over a half a million dollar from Asher starting in
8 2010. And they were paid back fine and dandy until we got to
9 2013, and then can I -

1 O Q Let do this in order. How about this: My question
11 that you knew at the time you borrowed money that they were
12 known
13 A No.

14 Q They were known as a lender of last resort?

15 A No, I didn't.

16 Q You went to them because you couldn't get money from
17 anyone else. Correct?

18 A I think that is a fallacious conclusion
.
19 You went to [the] well to borrow from them three times in
20 2013. Correct?

21 A Yes. We did.

22 Q A February note of 42,500?
23 A Yes, and we had 75,000 remaining on the note. Yes.
24 Q Let's get it straight. The February note of 42,500,
25 you went and borrowed that? (Continued on Page 115)

Page 115

1 A And we paid back all by 5,000 of that. So let's just
2 get the right position her.
3 Q One thing at a time. Let's get it straight. A
4 February note of 42,500. Correct?
5 A Yes.
6 a An April note of 37,500. Correct?
7 A Correct.
8 Q A June note of 32,500?
9 A Yes.
1 O Q And these things are laid out in the complaint against
11 you and in your counterclaim against Asher Enterprises. Right?
12 A Yes.
13 Q The notes have been submitted by your counsel and were
14 included as your Respondent exhibits -
15 A Yes.
16 Q - that reflected those figures. Right?
17 A Yes.
18 Q And then you chose to not make your periodic - wait.
19 Sorry.
20 You decided not to make your periodic filings because
21 you knew - you knew of your periodic filings, but you chose not
22 to make them because you wanted to fight this with Asher
23 Enterprises. Correct?
24 A You are making - the timeline doesn't work. Let's go
25 back. You brought the notes up. So if I may respond to the (Continued on page 116)


Page 116


1 notes.
2 Q Let's go back to those notes, but maybe we can start
3 with what happened after they sued you. Okay. Let's start witt
4 thal
5 A You can't do that without going back to - well, just
6 pre them suing us. So it's proper to just get that little bit
7 before.
8 It was November 15th of 2013. I received a letter from
9 the SEC which stated that the auditor that we had been using,
10 Sherb & Co., had been decertified and could no longer provide
11 public audits, which meant I had to re-audit 2012 now. I was
12 two weeks from filing my -
13 MR. O'ROURKE: Your Honor, if I could interrupt, this
14 is not a time for their whole defense.

===================================================

Those notes outlined - they were convertible debentures. Taken out in 2013.