Replies to post #153540 on World Surveillance Group Inc (fka WSGI)

[rwehapi2003]

I agree that the LJC funding was a big contribution to our current problems. Share dilution, legal fees, and if we lose the case, we owe a sizable "true up" payment. The LJC was piled onto the Brio mess and all the other legacy problems. Glenn was responsible for engaging LJC, gambling that the worst case scenario would not happen - which it did, and allowing it to go on for so long before acting to stop the bleeding.

I can't necessarily fault him for the Argus not being commercialized yet. He at least gave it a chance and those connections led to another possible win with LTAS. Based on the DRNE PR, I cannot tell whether WASP orders are coming or not and whether orders of size are anticipated, but WSGI could not sustain the LTAS relationship long enough during the wait to keep the Hess's happy so he had to let it go it would seem.

The share price decline happened under Glenn's watch and he has had a number of years to make a positive difference without success. But, have his latest moves put us in a position to realize a future increase in shareholder value and how long before we see if that happens?

Also, what of the BOD? Are they not somewhat responsible for putting us into the position we are in and allowing Glenn to make the moves he has made? With Drew West as COB, maybe we will see some difference in company direction, urgency, and eventual success.

[coastiretired]

Someone that seems to be getting a pass with the whole LJC situation is Phipps. According to the documents in the LJC litigation, "After WSG’s SEC counsel recommended that WSG work with La Jolla, the parties negotiated several contracts." WSGI's SEC counsel was Stephen M. Fleming who has represented Phipps and his various nominee entities for years.

I've previously discussed Phipps' involvement with another questionable penny stock called GlobalNet Corporation (GLBT). Fleming's name appears alongside Phipps in all those filings. I beat that horse years ago, but have included a quote from GLBT's financials at the end of this post that summarizes their experience with Phipps and GTC for the newbies here.

I don't dispute that the buck stops with Clark and Estrella in regards to the LJC funding. They were in charge with a purported background of being financial geniuses. They also had a full time lawyer on staff in Barb Johnson to review the agreements. I'm just a dumb ole country boy that Ren correctly points out has no legal training, but the heavily diluting clauses and true-up provisions contained in the LJC agreements appeared quite obvious to me when they were released. The ignorance claimed by the company is either disingenuous or an example of extreme incompetence. Others here have a different opinion of Phipps, but his crew's involvement in bringing La Jolla into the fold comes as no surprise to me. I've been suspicious of his string-pulling shenanigans for years.

"On January 5, 2004, the Company secured a contract with Global Telesat Corp., a wholly owned subsidiary of GEF, for worldwide termination of voice and data mobile satellite telecommunications traffic originating in Iraq. In conjunction with securing this contract, the Company issued 300,000,000 shares of common stock to International consultants valued at $21,000,000. The Company did not derive significant revenues from the Global Telesat Corp contract, the consultants failed to fully perform the contractually required consulting services. . .The Consultants performed some services in the first quarter of 2004, but little, if any, thereafter. Accordingly, the Company wrote-off a related entity receivable of $21 million in the first quarter of 2004."

[indyjonesohio]

Just want to say there is a big difference between a lynching and just accountability IMO. A lynching always includes inflammatory language and unproven passion-inflaming accusations/insinuations. Accountability at its best involves objective facts and respectful, careful conclusions IMO. Every community is strengthened by firm and just accountability IMO. Any community that gets caught up in a lynching is damaged by the very nature of that act IMO. HOW we do things is very important IMO.

I might well sit on a jury that would sentence someone to death and vote for that (although I have my problems with how capital punishment is carried out in our country as well). At the same time, I might be willing to die to defend that same "guilty" person from a lynch mob. I am confident that you and I are on the same page about just and objective accountability. I merely want to say HOW we do things, the character of our conversation and conduct when we do accountability, is important.

I believe any CEO of WSGI, present or future, would be served well by the Board and the SHs expecting objective milestones (including SP if desired). JMO Anyone who reads my posts should see my obsession with such milestones IMO. The weakness of my suggested milestones IMO is that they lack time targets/deadlines. Executives execute so that is the place of those who actually execute to set such targets. I am just the armchair quarterback. With such tools IMO accountability becomes easier and less subjective.

Yes, yes, there have been missed targets ("champagne at the next SHM") but I wouldn't call the few milestones we have had as a company laser-focused. JMO. I am always glad to participate in just accountability but I hope I always resist a lynch mob mindset. We end up living in the community we build by what we tolerate IMO. Best regards, IJO