Replies to post #237839 on NanoTech Entertainment Inc (NTEK)

[ChitownMike]

That I don't know. Maybe he stole from a former employer?

[DangFool]

No, no relation to current products, except maybe the casino pinball game.

Stole something proprietary? Is what he stole used in the NP- 1 or the supposed ultraflix?

Foley ran Ultracade, a maker of video games. These video games ran a variety of classic games (titles you'd recognize instantly), and there was a substantial customer base, and games were provided via subscriptions to "game packs", which had to be periodically supplied (I might be iffy on the details).

So he sold this company to GlobalVR, who immediately found out that the books were a shambles and the company was a financial disaster area. Part of the deal was that he got a high-up job with them.

He claims the deal was never consummated, which somehow translated into his retaining the right to continue to sell game packs under the table to his former customers, completely eclipsing GlobalVR's (his current employer) attempts to sell the same thing, that they were under the impression they had a perfect right to do. He did this completely in secret, using eBay, a confederate in, I believe, Rhode Island. That confederate was already convicted and is probably in jail now, presumably because he doesn't have Foley's resources to hire fancy lawyers.

Something like $1.5 million overall in sales. A civil suit in the late 2000's recovered something like $675K to GlobalVR, and Foley thought that was the end of it until the feds decided to slap him with an enormous indictment for the fraud involved in that activity, and also for lying to a bank to get a mortgage loan the day after he was fired from GlobalVR when theyh discovered what he'd done. After plea bargains, it was winnowed down to one count of fraud for selling game packs and one count of mortgage fraud.

They sentenced him to 2 years, finally, after he tried running out the clock for years after he made the plea bargain. Then he took it to the Ninth Circuit to appeal his sentence, which is where the case is now.