Michael J. Scaglione acts as the Secretary for Marine Explorations Inc (MEXP). Robert Stevens who was a key player in the disastrous APS promotion - Vision Plasma Systems Inc (VLNX) was a major shareholder in MEXP. See our VLNX report for more details.
Michael J. Scaglione was fired as legal counsel for Freedom Environmental Services Inc (FRDM) on April 4, 2012 for issuing a letter threatening a lawsuit again the company auditor without the company's knowledge and for not disclosing to FRDM that his partner, Michael Darren Bonn, had been indefinitely suspended by the Florida state bar in October of 2011. See this 8K for more details.
The Company became aware that SEC counsel, Michael J. Scaglione, along with Corporate Counsel Gary Goldstein sent a letter to GBH threatening to file a lawsuit against GBH if they did not reissue their audit report on the December 31, 2010 financial statements when the Company filed the December 31, 2011 10-K. GBH was not paid in full for their outstanding audit fees for the December 31, 2010 audit as required and therefore could not issue their report until the payment issue was resolved. The Company was aware of these issues and had agreed to resolve the outstanding payment so GBH so they could reissue their report for December 31, 2010.
The Company was not aware that the letter was sent to GBH and immediately withdrew the letter and any idea of filing a lawsuit against GBH.
The Company immediately dismissed Michael J. Scaglione of the Scaglione Law Firm, P.A. and Gary Goldstein immediately resigned on April 4, 2012 as corporate counsel for the Company within hours of Mr. Scaglione's termination.
The Company has resolved all issues with GBH related to unpaid accounting fees and GBH has agreed to reissue their audit report on the December 31, 2010 financial statements.
Item 8.01 Other Events.
The Company also became aware SEC counsel, the law firm of Scaglione Law firm, P.A. did not disclose that his partner/employee Michael Bon was indefinitely suspended by the State Bar of Florida and the Company further dismissed SEC counsel Mr. Scaglione for failing to disclose this matter to the Company on April 4, 2012 for the following:
Michael Darren Bonn, 2600 S. Douglas Road, Ph. 10, Coral Gables, Suspended until further order, following an Oct. 19 court order. (Admitted to practice: 1997) According to a petition for emergency suspension, Bon appeared to be causing great public harm by engaging in a pattern of fraud, misrepresentation and theft. Bon submitted fraudulent bills to his firm and clients in excess of $50,000 over a two-year period. In 86 instances, he submitted reimbursement request for travel or expense for events that did not occur and billed for hours he did not work (Case No. SC11-2000) (Press release from the Florida Bar dated November 20, 2011).”
The Company learned further that Mr. Bon’s suspension order required him to fully disclose his suspension and to not take on any new clients as follows:
“a. to accept no new clients from the date of this Court's order and to cease representing any clients after thirty days of this Court's order. In addition, Respondent shall cease acting as personal representative for any estate, as guardian for any ward, and as trustee for any trust and will seek to withdraw from said representation within thirty days from the date of this Court's order and will immediately turn over to any successor the complete financial records of any estate, guardianship or trust upon the successor's appointment;
b. to immediately furnish a copy of Respondent's suspension order to all clients, opposing counsel and courts before which Respondent is counsel of record and to furnish Staff Counsel of The Florida Bar with the requisite affidavit listing all clients, opposing counsel and courts so informed within thirty days of this Court's order; (See, Supreme Court of Florida Case NO. SC11-2000 Lower Tribunal No. 20152-701,263(11G-MES)”.
Neither Mr. Scaglione nor Mr. Bon disclosed this matter to the Company and they were immediately dismissed as counsel for the Company. The Company learned of these matters by doing a background check of Mr. Scaglione and Mr. Bon and contacting the State Bar of Florida.