And the saga continues..
There Goes Uncle Allen!
CyberAmerica has a fancy sounding high-tech name, but it's really an old-school business: they buy and manage real estate. And they were getting better at it, improving their net profit last year after some troubled early years. Plus they'd just put some legal hassles behind them, and even asked the American Stock Exchange to consider listing their stock.
And then uncle Allen, who happens to be a major shareholder and apparent boardmember, goes and gets himself indicted and then arrested in the biggest securities fraud bust in history. Wolfson, you see, is CEO Richard Surber's uncle, and has a lot of pull in the company - their website even says he has "potential control over CYAA's ongoing operations." Even from inside the big house?
CyberAmerica Corp. Makes Announcement
SALT LAKE CITY--June 19, 2000--CyberAmerica Corp. (OTC BB: CYAA) ("CYAA") was served with a search warrant on June 14, 2000, in apparent reference to the arrest and indictment of Allen Wolfson in the United States District Court for the Southern District of New York.
CYAA has not been informed that it is, in any fashion, a target of the investigation and is not aware of any relationship it might have to any of the defendants named in the indictment other than with Wolfson.
CYAA has reviewed the allegations made in the complaint and is in the process of determining what appropriate actions should be taken regarding its relationship with Wolfson. Upon obtaining the necessary information to make an informed decision, CYAA will make a determination regarding the best course of action to be taken. At this stage, there is insufficient information to make such a determination.
In the event CYAA determines that it is in the best interest of CYAA to terminate its business relationship with Wolfson, CYAA's management is confident that it can continue to grow CYAA's business.
If the business relationship with Wolfson is terminated, CYAA may consider buying out Wolfson's direct and indirect shareholdings in exchange for debt owed to CYAA from Wolfson or entities controlled by Wolfson.
Wolfson is disclosed as a control person in CYAA's SEC filings based upon his stock ownership interests in CYAA, his familial relationship to the president of CYAA and that he has acted as a consultant to CYAA on numerous matters.
CYAA is a diversified holding company that specializes in investing and developing undervalued real estate and provides financial consulting services to public and private companies. These operations are expected to continue in a normal fashion for the foreseeable future.
For more information on CyberAmerica's real estate holdings please visit www.cyaa.com. For more information on the CyberAmerica's consulting service please visit www.hudsonconsult.com.
CyberAmerica strongly suggests that the above information be read in conjunction with its Form 10-KSB for Dec. 31, 1999 and Form 10-QSB for the quarter ended March 31, 2000. The above documents can be viewed at www.sec.gov.
A number of statements contained in this press release are forward-looking statements which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements involve a number of risks and uncertainties, including the timely development, and market acceptance of products and technologies, competitive market conditions, successful integration of acquisitions and the ability to secure additional sources of financing.
The actual results that CYAA may achieve may differ materially from any forward-looking statements due to such risks and uncertainties.
CONTACT: CyberAmerica Corp., Salt Lake City
Richard Surber, 801/575-8073
Fax: 801/575-8092
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