Re: 11/30/01 - [VLPI] Integrity Capital claims "legal actions in process" against David Evans of Bloomberg for his recent reports on Vital Living Products
Vital Living's North Carolina Headquarters Searched by FBI
By David Evans
Matthews, North Carolina, Nov. 29 (Bloomberg) -- Vital Living Products Inc. had its North Carolina headquarters searched by FBI agents, indicating the developer of an anthrax test kit may be the target of a criminal probe.
About 10 agents from the Federal Bureau of Investigation's Charlotte office conducted the search beginning at about 12:20 p.m. local time, said agent Joanne Morley. She said the search at Vital Living's office in Matthews, 25 miles south of Charlotte, was expected to last about five hours.
The Securities and Exchange Commission already is investigating Vital Living. Its shares soared 40-fold last month as the company issued press releases announcing the anthrax kit, and a distribution agreement with Ace Hardware Corp., based in Oak Brook, Illinois. Ace, the No. 2 U.S. hardware store cooperative, said it didn't agree to carry the kits.
Vital Living shares, which rose from 5 cents on Oct. 1 to $2.03 on Oct. 23, gained 8 cents to 44 cents today.
The search warrant was signed by a federal judge in the Southern District of New York, and filed under seal, Morley said. Vital Living President Donald Podrebarac declined to comment on the search warrant. Yesterday, he said he wasn't aware of an SEC investigation.
Sani-Pure Food Laboratories, an independent company hired by Vital Living to study the anthrax test, said it received a subpoena from the SEC Tuesday for a copy of its report on the test.
SEC Probe
The SEC issues subpoenas only after approving a formal order of investigation. An SEC spokesman declined to confirm or deny the existence of an investigation, citing agency policy.
Vital Living rose 61 percent Tuesday after announcing its anthrax test was ``certified'' by the laboratory. Ronald Schnitzer, director of Sani-Pure, said the lab didn't certify the test and didn't approve Vital Living's announcement.
Meijer Inc., a Grand Rapids, Michigan-based supermarket chain, also denied it plans to carry the anthrax test, as was claimed in a Vital Living press release on Oct. 25.
Two weeks ago, Vital Living, which has lost money every year since it was founded in 1990, said its net worth was negative $2.4 million on Sept. 30. It repeated a statement saying it had ``substantial doubt about the company's ability to continue as a going concern.''
bloomberg.com
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Vital Living Halts Anthrax Test Sales After FBI Raid (Update1)
By David Evans
Matthews, North Carolina, Nov. 30 (Bloomberg) -- Vital Living Products Inc. said it stopped selling its anthrax test kit the day after its main offices were raided by FBI agents executing a search warrant.
Vital Living shares fell 54 percent to 20 cents.
``In light of the concerns raised regarding PurTest anthrax test kit, we are suspending any efforts to market the product,'' said Donald Podrebarac in a statement. He declined to be interviewed.
About 10 agents from the Federal Bureau of Investigation's Charlotte office conducted the search beginning at about 12:20 p.m. local time, said agent Joanne Morley. She said the search at Vital Living's office in Matthews, 25 miles south of Charlotte, took about five hours.
The Securities and Exchange Commission already is investigating Vital Living. Its shares soared 40-fold last month as the company issued press releases announcing the anthrax kit, and a distribution agreement with Ace Hardware Corp., based in Oak Brook, Illinois. Ace, the No. 2 U.S. hardware store cooperative, said it didn't agree to carry the kits.
Vital Living shares rose from 5 cents on Oct. 1 to $2.03 on Oct. 23.
The search warrant was signed by a federal judge in the Southern District of New York and filed under seal, Morley said. Sani-Pure Food Laboratories, an independent company hired by Vital Living to study the anthrax test, said it received a subpoena from the SEC Tuesday for a copy of its report on the test.
SEC Probe
The SEC issues subpoenas only after approving a formal order of investigation. An SEC spokesman declined to confirm or deny the existence of an investigation, citing agency policy.
Vital Living rose 61 percent Tuesday after announcing its anthrax test kit was ``certified'' by the laboratory. Ronald Schnitzer, director of Sani-Pure, said the lab didn't certify the test, didn't approve Vital Living's announcement and didn't use anthrax for its testing of the kit, as claimed in the company's press release.
Today, Vital Living said it incorrectly announced the kits were tested with anthrax because of a mistake in Sani-Pure's written report. Schnitzer wasn't available for further comment.
Meijer Inc., a Grand Rapids, Michigan-based supermarket chain, also denied it plans to carry the anthrax test, as Vital Living said in a press release on Oct. 25.
Two weeks ago, Vital Living, which has lost money every year since it was founded in 1990, said its net worth was negative $2.4 million on Sept. 30. It repeated a statement saying it had ``substantial doubt about the company's ability to continue as a going concern.
bloomberg.com
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By: zyllof $$$
Reply To: None Friday, 30 Nov 2001 at 1:04 PM EST
Post # of 25731
** MESSAGE FROM INTEGRITY CAPITAL **
Dear VLPI Shareholders and Interested Persons,
The current situation with VLPI has left many of you wondering what is going on with the Company and I felt it prudent to address the issue personally.
I feel that it is equally important to say first of all that Integrity Capital, Inc. still stands behind Vital Living Products and Don Podrebarac personally. We are as frustrated as you are with the state of affairs and are looking for many of the same answers you are. We are dedicated to communicate to the shareholders all information as it comes available to us.
For now this is what we know:
1. Yesterday afternoon, the offices of VLPI were visited by the authorities looking for evidence of wrong doing.
A. This is part of an overall probe by the FBI looking to make sure that people that stand to benefit from the unfortunate events of Sept. 11 and the anthrax scare are acting in good faith.
B. There had to be a search warrant issued to conduct the investigation, but that is not surprising with all of the press this company received in the recent weeks. This is not an uncommon occurence, other companies making similar claims with regard to anthrax have been subject to the same pressure.
C. There were no arrests and no charges made, verifying that this is just an investigation to verify statements made.
D. This was an investigation to make sure that the company's claims were valid and we believe they were.
We believe that the company will receive from the authorities clearance to continue and that the company will once and for all be able to prove with great clarity, that they have been honest and forthright since the beginning. Maybe this situation, however frustrating for all of us, will be a blessing in disguise. When the company is exonerated, it will finally silence David Evans and other people like him.
2. David Evans from Bloomberg has made some strong statements that we believe are untrue.
A. He did in fact talk to the labs, and there is much being done right now to get to the bottom of that situation. The labs are being asked to verify their information, and will refute the statements of David Evans in short order. I have no more on that as I am sure there are some legal actions in process to remedy that situation and am not privy to those conversations.
B. We also understand that Mr. Evans takes bits and pieces of conversations from past and present and combines them to get the spin he wants to communicate. If that is true, I personally dont understand how that can be even legal.
Again, I want to reiterate, Integrity Capital Inc. stands behind the company and will continue to do so. We believe Mr. Podrebarac to be honest and his company to be dynamic. All companies have struggles when introducing cutting edge products and services and we believe that in the end, Vital Living will be vindicated.
Please remember we only have limited information, and will do our best to communicate when we have answers. Please feel free to call Paula Kane at 757-627-0325, and Jim Bouker at 360-318-1819 for updates. They only know as much as I am telling you now, and again please understand that they won't have answers to many questions you may be asking until they come available to us.
Thank you for your patience.
Robert J. Pratt Jr.
President
Integrity Capital Inc.
(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy)
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