World Surveillance Group Inc (fka WSGI)

[vkoenig]

On Friday, I received an email from [e-mail]. It posed 7 questions pertaining to GTEM and its' management. I tried to verify the email, but it bounced back to me as undeliverable.

I then forwarded that email to Joe Monterosso for his critique and comments. His reply to me is as follows:


Vern,

Thank you for the email from netgirl. I do not know this person and I have also tried to email her only to receive a bounce back. Apparently she doesn't want to be contacted. As I explained to you on the phone I find this email very strange.
How ever I will answer the questions. I have included my answers under each of the posed questions below in order:


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Is it true that Khoury stays at Le Meridien in South Beach? Pretty fancy for a company that can't pay hanger rent.

-Khoury stays at the Meridien in Sunny Isles Beach, not South Beach.


Is it true that GTEL cell phones were turned in May off for non-payment and they acquired new cells from another carrier without paying the former bill?

- Yes, this is true, my former assistant Kate was instructed by Leinwand to secure a new credit account with an new cellular provider. Which she in fact did, new phones were purchased and distributed.


Is it true that the VozBrasil network went down and subscribers were disconnected without notice or refunds? Why? Were the carriers paid?

- My understanding of the VB situation was that the company did not have the funds to continue the operation.


Is it true that Khoury couldn't raise the money to to fund GTEL's portion of the Mexico JV and that GTEL borrowed the funds from former employees? Who? Have they been paid?

- Yes, this is true. The JV was signed in January. GTEL's responsibility at that point was to fund it's portion of the JV. After many weeks of excuses it came down to they did not have the money or the wherewithal to fund their portion of the JV. I personally loaned the company well over $100k so it could fund it's portion. Furthermore I negotiated with a friend in Mexico to loan GTEL over $200k. I think it important for you to realize at this point that the JV was introduced to GTEL by me through my friends in Mexico and the Peralta family. I oversaw the installation and the successful acceptance of the network in Pachuca. This is the only reason that I was willing to put my own money at risk along with my friends. The Mexico JV project was the only viable project with substantial partners that GTEL has, signed,sealed and delivered in it's entire history. The current GTEL management had nothing to do with this project whatsoever.

No, in respect to being repaid. I have recieved the bulk of my money back in exchange for the 83 radios but I have not received the balance owing to me by the company. My friend in Mexico has not been repaid.


Is it true that GTEL was served notice of default for non-payment of the Centerline purchase agreement in June and UCC filings have been made against the switching equipment GTEL is abandoning in LA? Is that not a "material event"?

- As you know the telecom equipment located at 611 Wilshire will be sold by public auction on behalf of the landlord on Aug 1st. Khoury decided that the company should not be in the telecom business even though Centerline made profit for the first two quarters in 2006 and GTEL had recently purchased state-of-the-art VOIP equipment in excess of $500k. This profit was generated on the equipment at Wilshire. Anyone interested can look it up in the Q's. Don't let this confused you with the revenue that may be restated.

UCC filings have been made on the equipment, furthermore GTEL has been called in default for non-payment of the Asset Purchase Agreement I& II and they have been served notice. I cannot say what the company considers to be material or not.


Is it true that GTEL has not paid employee State & Federal withholding, CA SDI and SSI contributions/taxes since November 2006?

- In respect to this question I can only state that when I left the company on April 27th approx $200k was owed on behalf of employees for federal and state payroll withholding dating back to Nov 2006. This does not include back pay owed to employees that have either been terminated or left the company voluntarily.


Is it true that GTEL paid hundreds of thousands of dollars to DeCarlo in 2006 to bring the financials current? Where are those financials?

- This is true, DeCarlo is a personal friend of Jon Leinwand's and Khoury executed an agreement to pay DeCarlo to prepare the company records and sign off on the 2006 Q & K. Mr. DeCarlo billed the company in excess of $500k. The financials were to be completed and filed last year with the K being filed this year. Your guess is as good as mine as to how much he actually received in toto and how much actual work he did.


Vern, in my opinion the company is desperately trying to push blame for all of current managements mis steps on former management and specific individuals. As I said to you I believe they will try to use the SEC investigation to their PR advantage. Which is solely intended to discredit anyone who challenges their management and actions. There is only one employee left who was intimately involved of all aspects of the company's business now in dispute and specifically all of the SEC matters: Jon Leinwand.

It is easy for them to cast the blame through innunedo. The major difference is Vern that I have emails, promissary notes, asset purchase agreements, JV agreements signed and executed by Khoury, Leinwand, and Huff to substaniate every word I have said.

The bottom line Vern is that until a court rules on any act or behavior all parties are innocent. This country was founded on that concept

By the Way- you can't believe a word my dog says.