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Thursday, 02/04/2010 6:15:44 PM

Thursday, February 04, 2010 6:15:44 PM

Post# of 27745
Gentlemen:

I appreciate the goodwill that you have thrown my way over the last two days. But I would be a total hypocrite if I did not bring some new information to light. All to further a point I made earlier about how professional investors think and operate, especially in these lean times.

It has come to my attention (and not through my own research, mind you), that 2 more actions have been filed that have been heretofore gone unreported.

The first is a Confession of Judgment for $280,000 and can be found here: http://iapps.courts.state.ny.us/iscroll/C_PDF?CatID=557350&CID=100863-2010&FName=0
For this of you who are not familiar with this particular instrument, as I understand it, it is a total admission of debt and can be enforced using the full weight of the courts, including, but not limited to, asset seizure and even jailing for contempt of court.

The second is a fairly new action brought by the Gross Foundation, a non-profit based in Brooklyn. That suit is pending response from the defendant and the plaintiff is seeking over $680,000 plus interest for unpaid loans. http://iapps.courts.state.ny.us/iscroll/C_PDF?CatID=550925&CID=603628-2009&FName=0

I'm sorry if this upsets you, but it is indisputable fact--public record. I am not in any way responsible for the filing of any of these actions let alone the multiple entries of confessions of judgment and court ordered judgments. I never did anything to force AK into signing anything, taking any loans, or writing bad checks. This too is fact. This is informed speculation, but these actions would have to be disclosed in any SEC filings which may account for the lack of said filings.

Also, to be totally fair and candid, there is no way that I can stop or undermine Qtrax, its funding, or its launch. I appreciate the fact that some may assign that power and influence to me, but it simply is not the case.

Getting back to the original point, these are even more reasons why funding will be nearly impossible. (By the way, all of these actions are in NY State Court. We don't know how many others are in other stat courts and federal court. I know of one default judgment in Phoenix AZ, and Oracle is in CA court, and I know of one other action is Federal Court). But I assure you that VC's will not touch any company that is involved in litigation. Before they invest they will insist that all outstanding matters be resolved and the books wiped clean. Now that figure is nearly $5 million including Oracle, and that's only the ones we know about.

Just stop and ask yourself what you would think if you were a VC, responsible for other peoples' money, and were approached with this investment. What would you do? There are so many deals out there now, why take such a huge risk? And any VC would want to know how much money they have burned through already and why so much and no revenues let alone a launch. This is how they think. And remember, no one ever lost their job for saying "no".
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