Expo Holdings Inc. (EXPH)

[Santa Barbara Broker]

Expo Holdings, Inc and JD Brown SPENDING THEIR OWN EMPLOYEE'S TAXES, SS and MC PAYMENTS!

Astounding. Here is a company who, according to the lien filed on the NC SOS site, is literally taking money out of employee checks that is OWED TO THE US TREASURY and pocketing it to keep their scam company going. So far they have stolen $127K but that is only through March 31, 2011. Since one can assume they have continued to rob their employees through the second quarter of 2011 as well, one can estimate from the figures shown on the lien that total is now probably MUCH closer to $160K:

http://www.secretary.state.nc.us/taxliens/Taxlien.aspx?EventLogId=19777626

You can bet if they aren't paying the federal witholding they are probably not paying the state payroll taxes, FUTA and state unemployment tax which could be another $75-$100K easy. It should be noted for those who have never filed a 941 that while the federal witholding is a straight amount witheld from the employee, the SS (12.4%) and MC (2.9%) are witheld with 7.65% (6.2% SS and 1.45% MC respectively) coming out of the employee's check with a 7.65% match from the employer. So Expo is only robbing their employees of the 941 federal witholding and the FICA and MC they took from their checks. They are robbing the government of the ENTIRE amount which represents all 941, FICA, MC and penalties/interest owed. I just want to be fair about all this...I wouldn't want to unfairly cast a pall of criminality over JD Brown and D&D where it wasn't warranted, LMAO! Of course the employees won't ever get credit for their SS and MC in their retirement accounts without filing a whole litany of paperwork. If they aren't aware of what they need to do, they could lose that credit. Even worse, their unemployment is figured on what was paid into the account. So if Expo closes down and they go to collect, there may be nothing there for them to collect from. That is all speculation of course and subject to verification from data I simply do not have access to.

OK so THAT explains where the extra money is coming from...NOW I get it. Still, even with the potential high of $260K or so they've stolen, they should STILL have been out of cash near the end of July. I am sticking with my earlier statements that they are currently diluting in some form or another. All a moot point however since the government WILL come in and seize their assets soon if they don't make an effort to pay. Yeah...great "break even". All IMHO.