The Incredible $640 Million 2TheMart Web Site
Released May 25, 1999
2themart.com (TMRT)
18301 Von Karman Avenue, 7th Floor
Irvine, CA 92612
949-757-1630
949-477-1200
CEO Dominic Magliarditi
Shares Outstanding: 20 million
Market Cap (Using a price of $32): $640 million
While researching 2themart.com (TMRT), a non-reporting OTCBB company, several disturbing facts have come to light, which may warrant further investigation. The company claims to be developing an auction website, and compares itself to Ebay (Nasdaq: EBAY), Amazon (Nasdaq: AMZN), and Yahoo! (Nasdaq: YHOO) (See Attachment 1, Press Release of May 10, 1999).
The company claims the website will be "operational" during the second quarter of 1999, according to press releases dated January 22, 1999 (Attachment 2) and March 1, 1999 (Attachment 3). This gives the company 5 more weeks, to meet their target date.
However, the company's CEO, in a post on Silicon Investor dated February 11, 1999, (Attachment 4), stated that the company was "in the process of preparing our Form 10, which we hope to have completed within the next for weeks." Well, it's now late May, and according to Bloomberg there are no EDGAR filings for 2themart.com (TMRT).
According to Internic records the domain name 2themart.com is owned by BLI Enterprises (See Attachment 5). BLI Enterprises is located at this address:
BLI Enterprises, Ltd. (2THEMART-DOM)
135 E. Reno Avenue, Ste. F-7
Las Vegas, NV 89119
Administrative Contact: Magliarditi, Dominic J (DJM218) nicmags@AOL.COM 702-795-8664 (FAX) 702-795-8691
Billing Contact: Magliarditi, Dominic J (DJM218) nicmags@AOL.COM
According to the State of Nevada, BLI Enterprises is an LLC, with members Magliarditi and Rebeil (See Attachment 6).
The company, according to its lawyer, Richard Cutler, in an interview given to the LA Times (Attachment 7) there are 20 million shares outstanding, and 19 million of those are owned by Dominic Magliarditi and Steve Rebeil. A quick background check on Magliarditi and Rebeil reveals some disturbing facts.
Dominic Magliarditi, according to the Nevada State Bar, is an active attorney in Nevada with the following address:
135 East Reno Ave Ste F7
Las Vegas, NV 89119
702-795-8664
State of Nevada records (Attachment 8) show Rebeil residing at:
98 Spanish Trails
Las Vegas, NV 89113
The Las Vegas Review Journal has written several articles about Mr. Rebeil and Mr. Magliarditi. In an article dated April 16, 1997 (Attachment 9), it is revealed that IRS Criminal Investigation Division agents raided the offices of Rebeil and Magliarditi.
Nevada State Gaming authorities believe that Reveil siphoned off as much as $8 million from customers, and used the proceeds to build his home on Spanish Trails in Las Vegas. He also did not report this $8 million to the IRS.
Magliarditi and Rebeil were both denied gaming licenses by the State of Nevada, which was chronicled in an article in the Las Vegas Review Journal on January 24, 1997 (Attachment 10). According to the article, a former Rebeil partner, Marvin Lipschultz (See Attachment 11), told the Gaming Commission about Rebeil's overbillings. Magliarditi underreported his own 1994 taxes by $70,000-80,000, as well as favorable adjusting (downwards) billings by his law firm to Rebeil, then his client at the firm of Vargas & Bartlett.
Magliarditi appears as a defendant, along with BLI Enterprises, in a suit brought in New Mexico for nonpayment of debts (Attachment 12).
Prior to being 2themart.com, the company was called CD-ROM Yearbook (Ticker CDRH). CD-ROM Yearbook was located at (Attachment 13):
CD-ROM Yearbook Co. Inc.
30100 Towncenter Dr., Suite 0-422
Laguna Niguel, Calif. 92677
714-488-8567
714-488-8192
CEO: Daniel J. McClory
CFO: Keith C. Moore
cdromyearbook.com
The company was sponsored by a market maker called National Capital.
In short, in TMRT this is what we have:
A) The company is a non-reporting, OTCBB, reverse-merger company that on paper is worth $640 million.
B) The company, with offices in Irvine, California is run by a still-practicing Las Vegas lawyer and a Vegas construction company owner, who appears to spend a lot of time in Florida racing cars.
C) The company has no operational website.
D) The company has not met its target date for filing with the SEC.
E) The company's principals have been in serious trouble with the IRS, requiring CID raids.
F) The company's principals have no background in the high-tech industry.
G) The company's principals have no background in the auction industry.
H) The company's principals have been denied gaming licenses.
I) The company's CEO, Magliarditi, has defrauded employers in the past.
J) The company's other large shareholder, Rebeil, defrauded customers in the past.
K) The company is in default with the Nevada Secretary of State (See Attachment 14). |
