Renee...this will be the final nail in Brown's coffin. You have to begin to wonder about the guy's sanity at this point. He still has these people who believe in him despite all this criminal activity and he chooses to rob the US Government? I have been filing and making payments on 941s, 940s, state and local tax witholding for well over 25 years and my accountant always advised me that no matter how bad things ever got, ALWAYS pay your taxes, your accountant and your attorney in that order. The attorney always reversed the accountant and himself in the order but the advice was always PAY TAXES FIRST.
Brown and Harrs may have mental problems beyond their obvious Messianic tendencies and sociopathic levels of avarice. They have zero perspective of priorities even when it comes down to something as basic as common sense. They had to have been planning to do a reverse merger or bankrupty filing. Something that could have bailed them out of Expo, deep sixed the (likely) Form 3 problems and let them either write off the tax liens in a BK or pay them off with new stock sales in an RM. The fact they have been stealing their employee's witholding taxes explains a load of things:
1) How they have managed to keep the scam running when they should have been out of money June 15th 2011.
2) Why they haven't filed any of their 10Qs...the only one they can release now is 1Q 2010....it was the only quarter where the witholding taxes might show up on the balance sheet as paid.
3) Might explain why they took on BC's employees but didn't buy the company outright. They could steal 19 more tax witholding amounts every week without taking on the liens that the government probably filed against BC. Hell...they probably got the idea from BC.
4) Where the $50K in "debt" went to in June? Did they hold off the IRS from shutting them down then by making a $50K payment?
There's probably a lot more, but two things will be forthcoming. Expo Holdings will be shut down if the taxes aren't deposited. And the employees will be credited with their federal and state witholdings as long as they got a paycheck stub. They will have to file a truckload of paperwork with Social Security Administration and the Medicare people to get their proper credit for those funds. Now, one can probably assume since D&D and Expo made no federal deposits, they very likely failed to make state and/or local deposits as well. The employees may get credit for the state tax witholding. The trouble might really come in if and when Expo is shut down and their assets are seized and the employees are suddenly out of work. Because the employees don't contribute to the state and federal unemployment assessments (only the employer does) there may be no deposits shown as being made by their employer during the period they will attempt to collect on (the last 52 weeks of Expo Holdings deposits). I am not sure what happens in that case, but I am betting in this current climate they will be denied U/C claims due to D&D Displays failure to make the deposits. Meaning Brown and Harrs will have just effectively set all their employees out on the street with zero means of support. Gawd, what a GREAT dynamic duo of sleaze.
It will take some time for this all to become clear and I am certain at this point having taken on stealing from the Feds that Brown and Harrs won't hesitate to lie about anything or to anybody. Their credibility has to be taken as absolute ZERO at this point. Nothing they say while not under oath with penalty of incarceration can possibly be considered truthful or accurate. If the fed lien is genuine, Expo Holdings will quite probably be barred from any reverse merger or further A/S count increases and they will be finished barring some miracle.
The thing that kills me is these SOBs are very, VERY likely to just walk. I don't know if the government can pierce the corporate veil and get hold of Brown and Harr's personal assets but you can rest assured whatever they haven't transferred offshore or hidden with friends or relatives will be entirely consumed by Uncle Sam if they can. Then they both can always declare personal bankruptcy. Of course eventually they will have to come out into the open to buy plane tickets for the Caymans and I wonder how safe the streets of North Wilkesboro will be for the Messianic Kings of Sleaze after all this comes down, LOL? All of the above IMHO.
**Edited for content and punctuation
AI
