Court rules Stella Bella in criminal contempt; Prison next for Zubkis?
Since this hasn't been posted yet, here is the latest installment by Don Bauder in the saga of Stella-Bella, that sexi coffee company:
(These and other columns by Don Bauder about Stella Bella are available at www.uniontribune.com; see also posts #29 and #31 on this thread.)
DON BAUDER, San Diego Union-Tribune, 03-May-1997 Saturday
ZUBKIS CONTEMPT
"Ailing Stella Bella and the telemarketing firm that hawks its stock, Z-3 Capital, along with key executives of the companies, have been found in criminal contempt of court in New York.
The executives are Steven (Vladislav) Zubkis, his sister Elena Kozik, her husband, Bruno Kozik, and the Koziks' son Henry.
New York's Attorney General's Office has been investigating the coffee
operation and imposed a stock trading ban in that state. The office filed the motion for criminal contempt, alleging refusal to hand over key documents, and a judge granted it, said Andrew Kandel, chief of the attorney general's securities bureau.
"The next phase is the judge's decision on the penalty," says Kandel.
"After the ruling, they (Zubkis, etc.) will have 30 days to purge the contempt or produce the documents." The individuals "could get up to 30 days in prison, and/or a fine," says Kandel.
Zubkis, meanwhile, has taken his typical route: He has filed three suits for $2 billion in U.S. District Court here, charging the Attorney General's Office with libel, misrepresentation and lying to the judge.
Zubkis is already suing the National Association of Securities Dealers, Securities and Exchange Commission, Federal Bureau of Investigation, Internal Revenue Service and San Diego Police Department -- all of which have been investigating his operation.
That is in addition to a number of civil suits against him, Stella Bella, Z-3 and brokerage houses that have been entwined with the operation.
Zubkis says the New York attorney general is trying to link him to the
Russian mafia, but the agency will not comment on that.
Regarding the criminal contempt ruling, "we are looking at four options," and one of them is an appeal, says Zubkis.
Stella Bella and Z-3 checks have been bouncing -- both to vendors and employees. "It happens," says Zubkis, adding that all checks have eventually been covered.
Suppliers, investors and employees who say they have been shortchanged by the company complain that Zubkis still zips around in his yacht. It was decked out with a Stella Bella sign during last year's Republican Convention, they add.
But Zubkis says: "It is a broken-down 30-foot yacht. Nobody will give me more than $6,000 for it."
Meanwhile, stock of Stella Bella, which recently went through a severe reverse split, was trading yesterday at a stupefying bid-asked spread of $8.50-$45. Yes, $8.50-$45.
Zubkis did not have an explanation for that. Prior to the reverse split, the stock had been trading at 16 cents a share."
I suppose Stella Bella investors can now only hope that Zubkis wins his 3 lawsuits for $2,000,000,000 - and shares it with them!
The rhyme for "SBAM" was too obvious; who has a rhyme for "AMSB"?
Peace,
Droog
P.S. to Evie Ryanti: Luckily, I have not invested money in Stella Bella nor other penny stocks. I hope only to contribute to education about the proliferation of penny stock scams, and how to spot them. |
