PowerLinx Inc (PWNX)

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Good recent article on RLM & SEVU:

http://tampabay.bcentral.com/tampabay/stories/2001/03/26/story3.html

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From the March 23, 2001 print edition

SeaView founder at center of company's storm
Pamela Griner Leavy Staff Writer

ST. PETERSBURG -- A stormy technology business story that arose in a southern Pinellas County beach community continues to evolve but in a different location.

At its center is Rich McBride, founder and former chief executive officer at SeaView Video Technology Inc., an underwater camera design and manufacturing firm headquartered -- until last week -- on Tierra Verde.

SeaView relocated last week to the Republic Bank building in downtown St. Petersburg. At press time, McBride, who resigned his CEO post in February, was still connected to the company, serving as a marketing and research consultant under a three-year contract, he said.

While McBride agreed to telephone interviews, he canceled two face-to-face appointments with The Business Journal Serving Greater Tampa Bay and declined to be photographed. He has received "death threats" and wants to protect his family, McBride said.

"I don't want to have my photo used at all," he said. "Life is getting to be unbearable here in the community with these things."

These "things" are many.

SeaView currently is under investigation by the Securities and Exchange Commission and continues to deal with controversy involving former employees.

0n March 19, the company reported to the SEC that while preparing its annual report for the fiscal year ending Dec. 23, 2000, it found inaccuracies in its unaudited financial statements for the quarters ending June 30 and Sept. 30. Those statements, prepared under McBride's watch, had been filed previously with the SEC.

The inaccuracies were found during a review undertaken by SeaView's new chief financial officer, Douglas Bauer.

The inaccuracies involve revenue as related to certain purchase orders received by the company, stated the SeaView report sent to the SEC.

The report stated it is believed the inaccuracies are likely to materially affect the company's revenues ... income, assets and equity for the reported periods and subsequent year-end statement.

McBride has faced accusations by former employees of hyping SeaView sales projections in news releases, a practice frowned on by the SEC under Regulation FD (fair disclosure).

But he and SeaView have followed all SEC "safe harbor" disclaimer regulations, said McBride.

In February, George Bernardich III succeeded McBride as SeaView CEO.

The SEC investigation, although it is not open to the public, revolves around "massive" stock shorting at the end of 2000 of the over-the-counter traded SeaView stock, said McBride.

People who "short" stock bank on the price of the stock dropping through increased trading. Stock certificates are then available for purchase at a lower price.

What makes the SEC stand at attention is dramatic changes in the way a stock is traded, said Pam Lagano, president of Lagano & Associates Inc., a Clearwater-based investor relations firm.

"People short all the time, but the SEC looks at trends," said Lagano. "They have ways of tracking to see if company management and relatives are buying and selling stock from inside information."

As for SeaView, the SEC will make no statements about the company being involved in stock manipulation or fraud, said McBride.

McBride said he welcomes the investigation.

Meanwhile, public criticism of McBride and SeaView on some online message boards and stock information sites such as http://ragingbull.com and http://insidetruth.com dates back to the end of 2000 and continues.

Posting information about McBride and the SeaView company is online stock guru Anthony Elgindy, better known as Anthony@pacific of Pacific Equity Investigations.

On the insidetruth.com site -- called an investigative stock information site -- Elgindy posts stocks he claims to have helped short.

Ragingbull.com is an online message board accessible to anyone, and while it is owned by the Lycos Corp., Lycos does not take responsibility for its content.

While SeaView continues to operate, former employees with concerns about falling stocks have taken to posting complaints on online bulletin boards and going on SeaView property.

The Pinellas County Sheriff's Department was called to the Tierra Verde location on more than one occasion about trespassing, including responding to an incident on SeaView property by former staff members at a recent stockholders' open house, department reports show.

Also included on the online sites were reports that McBride is a convicted "con man," charged in Pinellas County in 1996 with felony -- forging sales reports for broadcast advertising videos that did not air.

While McBride was charged with the crimes, he entered a plea of no contest. Adjudication was withheld and he remains on probation.

"Adjudication was withheld," said Nancy Ham, deputy regional director for the Florida Department of Corrections.

As for SeaView's continuing support of its founder McBride, Bernardich did not return calls seeking comment.

SeaView traded at $1.06 this week.

To reach Pamela Griner Leavy, call [phone], or send your e-mail to [e-mail].




Copyright 2001 American City Business Journals Inc.
Click for permission to reprint (PRC# 1.1665.409760)