Norodnik on the RB board posted a copy of a post beatenvalue (Yahoo! moniker), also known as beone on RB, posted on his Yahoo! board about his latest conversation with RA, as well as his personal opinions about it. For those who don't know beatenvalue/beone, he's been long since the first default judgement award, and has reportedly sunk over 250K into this stock, and supposedly convinced his family to invest heavily.
Here's the info:
"As one might expect of most long-standing shareholders at this
juncture in the game, I had determined I was not going to yield to another round of smooth-talking by the chairman this time around...I just felt I needed to dig a bit deeper, although I was fully aware this guy goes into a shell when you do that and also that in all likelihood the SEC had harmed this company, this man and the many shareholders in regard to the NSS thing greatly and thus his mental state might be a bit on the edge...quite frankly, this guy loves to hear his own voice and dominate any conversation, and unless you shout back and drown out his voice, I doubt he ever listens to what you are saying, unless it is in response to one of his comments or jokes...
In any case, he appears to be of the opinion that it is extremely
important for the company to get a jury trial at this stage in the game...no word on when the appeal will be filed...I think he said an appeal to stay Judge Lynch's order and ruling will be filed soon...if this were granted, it should stop the goons chomping at his door...he cannot raise funds the old way (by issuing any more shares)...I asked him if there was an injunction by the judge towards this...he said "No, but everybody is sufficiently scared", possibly implying the transfer agent is spooked enough that he does not want to test that route...but he said he never has had and never will have any trouble raising funds to keep the operation going, but the SEC has made it tough...he has lost a few folks...some young ones whose mothers read the stories and decided to get their children out...some who moved to safer places to work...all affected by the SEC receivership thing...as I was talking he got a call on his cell...he excused himself and took that call, but I could hear
this conversation...he thanked the other person for sending some
document the previous day and said he has it in his briefcase and
will go over it during the weekend...some more information exchanged and then he got back to my call and said that was somebody who had promised him a million $ !!! It was clear that guy sent something (or was going to send something) that RA was grateful for...
First, about the story in the SF Biz paper and the controversy about the eviction and landlord, etc., he told me about the same thing he told Toka...the landlord had been negligent on many things...the building had issues...repair going on...non-responsive landlord...the company had put two months rent in an account at the court...I am assuming USXP has also sued the landlord to rectify certain things...he said in Florida you cannot evict anybody if the rent has already been paid to the court where the case stands...he said the reporter who wrote the piece in the SF paper is the same guy who wrote negative stuff about Eagletech Communications...whether he is a paid hand or a two-bit reporter
remains to be seen...if the landlord does not accommodate (reduce
rent, etc.), he would be looking for another location...the building they have used to be the best in Boca...35 k/mo rent...
I told him there are a lot of shareholders who are unhappy about all the promises and forward-looking statements he had made that never came to fruition...he challenged me to name just three...I told him I could name a hundred...how about I write him a list ?...he started getting defensive...I said I know what you are going through...he immediately shot back "you have no idea"...I said, fair enough...I have an inkling, but let me tell you a lot of shareholders are quite tired about the promises made or rosy pictures painted that never materialize...he said name just one...then I let it out...I told him "you said during the webcast you were meeting with some record company folks about some lucrative deals with the MJ records...ypo said you were meeting with some hedge funds to perhaps buy back a bunch of stock...you told me an O&G company had asked for more up-front funds for closing and you were arranging for that and the closing would happen weeks ago...none of that ever transpired and there was no further word on these things from the company since the
webcast...then I said obviously you are strapped for cash, otherwise you could have closed these O&G acquisitions...he said yes...I asked him "what happened to the Saudis ?"...he said rather nonchalantly "they are gone"...that shocked me...not sure if he said that because everyone was bugging him about it or that was the plain fact...he said they can choose not to be involved with a company with a 20 million $ judgment against them...I said but don't they have a ton of shares that they purchased ? he said as far as he knew that was still the case...I got the impression the Saudis have stiffed him, either because he did stuff he was not supposed to do (they hate being dragged into any controversy) or that they decided this company had too many skeletons in its closet...
I asked him to look into his crystal ball and tell me where he sees the company in a few months...he said he did not know but he will still be around...I said what about the GF clause being lifted ? is that going to affect the SP ? Are we looking forward to a great Xmas or is it going to be one long drawn out struggle with the SEC, etc...he said he had no idea...I told him how he told the shareholders last December it was going to be a great Xmas...then this spring it was going to be a great summer...he said something sarcastic...I am having a great summer, aren’t you ? I told him "not w.r.t. my investment in USXP"...I could sense I was getting under his skin...I told him I doubt I would call him again as I seem to be irritating him...he said "no, no, it was not that but that I was asking him too many soul searching questions and he might have to block me from that"...I thanked him and hung up...not a good feeling after that call...not a bad one either, but certainly not a good one...
I feel the SEC has made life miserable for this company, rightfully or wrongfully is yet to be seen, but in an ineffective and unprofessional manner for sure...earlier, he insisted a jury trial was extremely important for the company because in that trial, since USXP had already won a judgment on some naked shorts, the company does not have to prove anything...it will be for the SEC to prove what they were doing when this thing ws going on right under their noses...that is why the SEC is scared of a jury trial...he said if they had come to him and said you owe us 20 million, but tell you what, you give us 200 million and we will help you collect the 600 million, we would have agreed to that...he also said for some reason the SEC is scared of him and he has never been scared of the SEC..."not sure what it is about me but I was never scared about these guys"...I tried to coax his ego saying "it must be because of your marine background and the fact you are a NYker !!!"
Bottom line...I suppose Tifford will file a stay in the 2nd circuit court for Lynch's judgment, followed by an appeal of that judgment pretty soon...I feel unless the appellate court judge acts expeditiously and grants a jury trial, we are screwed big time...of course, RA will drag this out into the Supreme Court, etc...but no body is going to come on board to really help this company unless this SEC cloud hanging over its head is lifted...
Right after RA said the Saudis are gone, he also said who can blame them for not being involved with a company with over 20 million in fines, etc...he also said, at this time every year these guys are somewhere in the south of France anyway (in their yachts ?)..
Another thing...about the one imminent O&G closing...he said he was trying to get the seller to bear the extra 800k the banks were asking for as a result of the pressure arising from the SEC filings...
He also said the judge had imposed a 2 million $ fine on him...it
would be nice if the judge could prove he took 2 million...same with Gundie...I get the feeling that the SEC has no evidence any funds received by selling shares were directed to personal accounts of RA and family...if this is true, all funds raised by RA by selling shares were used either for meeting payroll, expenses for advertising, his salary, expenses incurred by him and other executives on behalf of USXP, etc...clearly, the SEC would have a weak case to prove he sold for personal benefit, except to maintain his ego of remaining as a CEO of a potential billion $ company !!! the SEC's position that he put out misleading PRs is 100% valid...except, his motivation for this can only be to trap the naked shorts and to keep his bloated ego fully bloated...personal enrichment has not been proven as of yet..."
