The Weiss/Yourman complaint, although factual in historical events, seems to be a little inaccurate in some of the fine points.
For example, the complaint states the following:
"Moreover, defendants failed to disclose that Reed has been a defendant in two prior civil fraud actions, had been convicted of wire fraud, and had served ten months in a federal prison camp, until May 26, 1999 when Hitsgalore filed its amended 1998 10-K."
The above statement is quite true, except the first mention in any SEC filing of his criminal conviction that I can find is in a 10K/A for fiscal year 1997 dated 7/2/99.
"In 1992, Mr. Reed was convicted at trial of wire fraud and unlawful
use of access device and served a 10 month sentence in a federal prison camp
and successfully completed the rest of his term on supervised release. There
were several counts amounting to approximately $2,800.00 in losses, plus court
and other costs, which all have been paid."
sec.gov
These guys are attorneys and I assume that they are quite aware that words "mean things". I don't doubt that Mr. Reed appealed his criminal conviction and that the appeal failed, but I've got my doubts that Weiss/Yourman got date of the related 11th Circuit Court of Appeals opinion correct.
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