Michelex Corp (fka MLXO)

[sawdin]

From: Brian Serotta [mailto:XXXX]
Sent: Friday, December 23, 2011 8:17 AM
To: [e-mail]; Fran Decker; Joel Paritz
Subject: RE: Question about financials

Mr. Kakani:

Please be informed that we never finished the audit of the financial statements of Michelex and accordingly never signed an opinion

Brian A. Serotta, CPA

One of the main issues that concerns Michelex shareholders is the lack of ‘transparency’. The most important example of this revolves around the repeated claims that United Mortgage Bankers provided Michelex with $3,000,000 of ‘paid up capital’ and $10,500,000 of ‘investable funds’. The existence of these funds has never been indepentendly verified. Additionally, if the funds actually do exist, it is critical that ownership of the alleged funds be established. For example, if the funds do exisit, are they held in the name of Michelex corporation and are they legally a proper asset of Michelex, or are they in the name of other individuals or entities?

Many shareholders were informed by Mr. Saleem, Michelex’ CEO and Chairman, that all we had to do was ‘look at the audit’, as the audit provided verification of Michelex’ assets. As many shareholders noted, a draft audit is worthless as a means of providing independent verification of a company’s financials. That is why it is called a draft. In addition, the draft audit that shareholders were told to accept as independent verification was not even signed.

I was told by a shareholder who claimed to have called Paritz & Company that he was informed that the audit was not signed and never completed. In addition, he was informed that Paritz & Company did not know that it had been released. I then contacted Mr. Kakani, who is a member of Michelex’ Board of Directors, and requested that he contact Paritz & Company and attempt to verify if the information that I was told was in fact correct. He contacted Paritz & Company and received a rather terse reply from them. I requested that Mr. Kakani attempt to get more clarification, but it appears that Paritz & Company believes it is in their best interest to not provide any additional information.

I asked Mr. Kakani for permission to reproduce the relevant email and he informed me that I could. Most shareholders know that a ‘draft’ audit means ‘incomplete’ or not verified. Hopefully, having something directly from the company that was involved will reinforce that in this case, ‘draft’ means incomplete, as in ‘we are not willing to verify that the information in this draft is accurate.’

I apologize for not releasing this sooner, but I was hoping that Paritz & Company would provide answers to specific questions that were submitted to them. As noted, I guess they believe it best to not provide any additional guidance.

Please contact me if you have any questions.

Sincerely,
Dino A. Sawyer
[e-mail]