Part 2 of Fax:
' Additionally, Lis demonstrated that Trooper did not wholly own IEWS, but that he &
Kosak and three other individuals had held one share each, "on behalf of Trooper," to
get around Polish law governing joint stock corporations. He hastened to add that
Price Waterhouse said it was okay nevertheless to sayTrooper wholly-owned IEWS
(it apparently owned 95%) at the time.
Ed Bowes was able to show that Lis' claims to "contracts" for raw material were not
contracts at all, that Lis had prevented BDO from due diligence on this score; Lis did
not help his position - that he could not have firm, enforceable contracts -- by
defending himself and his secrecy and obstruction of BDO's due diligence on the
ground that his "partners" were defrauding Polish authorities about how much waste
they had so they could avoid making payments required under the new environmental
laws.
Trooper's engineer, Harlan Kelly, admitted that he had received a letter from Lunny
which told Kelly what conclusion he was being hired to reach, and which he reached.
He had never been shown the License Agreement, nor the court Order; he had no idea
what Trooper acquired under the Agreement, nor whether there were any limitations
on it. He was directed simply to find that no one could build a plant based only on our
Design Criteria Manual. He admitted, however, that a talented engineer, such as
himself, could prepare construction plans, for a specific locale, from our Manual. he
also admitted that a patent would not be granted unless the new learning was "unique;"
he did not know anything about TTRIF's new patents.
Kelly had not been shown Trooper's press releases before today in court. He seemed
suprised to read that Korbud had been hired to prepare all drawings necessary for
permitting, and that all of the steps necessary for permitting, except the last piece of
environmental approval, had been achieved by early 1997, according to Lis' "true"
press releases.
At the end of the day, Justice Cohen adjourned the matter to the week of June 8th,
with both sides to submit written argument by that date, based on actual transcripts of
today's proceedings. He deferred a ruling on the corporate contempt issue before him,
and took my affidavit subject to a later ruling on whether he'll let Lunny cross-examine
me on it, which Lunny said wouldn't take very long.
The Bottom Line: Rene is out of it; there will be no contempt findings or sanctions
against him. Dan and Ross were strong, persuasive, honest in their presentations of a
company that dealt in good faith with a somewhat unclear Order that differed from the
Reasons for Judgment; they showed that TTRIF produced exactly what was required
by the inclusion and exclusion provisions of the order, and indeed by the License
Agreement.
On Trooper's side, Kelly's testimony should be thrown out for having had the
conclusion imposed by Lunny, and Lis was stuck in the quite obviously uncomfortable
position of having to convince someone that his Press Release & website were truthful
while claiming that he had no "blueprints" and thus got all of his much-heralded
permitting and opportunities done without submitting a single piece of paper. It goes
without saying that he failed in this effort, just as he failed in his efforts to get permits to
build anything in Poland, through no fault of TTRIF.
End of Fax transmission. |
