Golf Entertainment Threatens Lawsuit After Unfavorable Article
Tuesday, August 27, 2002
By Ethan C. Nobles
The Morning News/NWAonline.net • enobles@nwaonline.net
SPRINGDALE -- An article last week accusing Golf Entertainment Inc. of violating federal Securities and Exchange Commission laws has riled the firm's senior management to the point where they say a suit against the Northwest Arkansas Business Journal is a certainty.
"It's being drafted. There's no question we're suing," said Jim Bolt, Golf's vice president. "We're really upset about the story."
Bolt said his company is still working on finding which Arkansas court will be the proper venue for the suit. Northwest Arkansas Business Journal has denied any wrongdoing, claiming the article is accurate and Golf is in the habit of filing lawsuits.
Golf Entertainment operates Springdale's KVAQ, an affiliate of Fort Worth's Hispanic Television Network Inc. The firm is doing business as Sienna Broadcasting.
In the Aug. 19 edition of Fayetteville's Northwest Arkansas Business Journal, a report generated through a five-month investigation of Golf appeared. According to the article, the investigation was prompted after questions arose over "odd filings with the U.S. Securities and Exchange Commission."
The article also questioned the manner in which Golf, a former golf course management firm in Alpharetta, Ga., was purchased in December after a series of transactions begun by Bolt and Tim Brooker, chief executive officer of the firm.
In Form 8-K filing with the SEC on Friday, Golf accused both Northwest Arkansas Business Journal and its editor, Jeffrey Wood, of engaging in a stock-bashing scheme against Golf.
Golf, in June, filed a federal Racketeer Influenced and Corrupt Organizations Act action against in the Fayetteville Division of the Western District of Arkansas against a group of defendants allegedly involved in a scheme to deflate the value of the firm's stock.
The lawsuit states the defendants, for the most part, circulated false and misleading information about Golf through e-mail and Internet chat rooms frequented by investors.
Bolt accused Wood of getting the majority of his information from the defendants in the RICO suit.
"We've got proof he wrote the story before he even contacted us," Bolt said.
That accusation, however, has been denied by Jeff Hankins, president of the periodical's parent, Arkansas Business Publishing Group.
"We stand by Jeffrey Wood and the story and reporting he did," Hankins said. "It was interesting to us that our attempts to obtain comments for a story was met with a subpoena for our records."
Hankins denied either Woods or Northwest Arkansas Business Journal set out to engage in an alleged stock-bashing scheme against Golf.
"We just put forth a story that we believe to be truthful," he said, adding the facts in the article were primarily pulled from public records. "The story is very straightforward in that regard."
Golf's business dealings have also bought attention from the Benton County Prosecuting Attorney's office and U.S. Sen. Tim Hutchinson (R-Ark.). D.J. O'Brien III, communications director for Hutchinson's office, confirmed the senator had sent a letter to the SEC asking for an investigation into Golf.
Benton County Prosecutor Bob Balfe said his office has been conducting an investigation, too, but wouldn't comment further on the matter.
In other business, the firm announced Brooker had resigned as CEO and will remain as a director of Golf. Michael F. Daniels replaces Brooker as CEO.
Shares of Golf Entertainment (OTC Bulletin Board: GECC) closed Monday at 0.9 cents, down 0.2 cents. For the past 52 weeks, the stock has ranged from a 0.8 cents low to a 30 cents high. |
