"On February 2, 1999, we issued to EBI Securities Corporation a warrant to purchase 500,000 shares of our common stock with an exercise price of $.10 per share as payment for professional services performed in the first quarter of 1999."
WorldTeq CEO Indicted
Bruce Bertman has been accused of illegally trading in his company's stock, but says he plans to vigorously contest the charges. His first court appearance will be on Wednesday, August 21, 2002.
by Roy Mark
of dc.internet.com
[August 15, 2002]
Bruce Bertman, president and chief executive officer of Rockville, Md.-based WorldTeq Group International, Inc., has been indicted in the Southern District of Florida for wire, mail, and securities fraud as well as conspiracy in connection with the sale of WorldTeq Group International common stock.
WorldTeq offers a wide range of telecommunications and Internet services along with related products via independent agents, associations, sales organizations, and affiliate marketing companies. The company's common stock is qualified for quotation on the over the counter bulletin board under the symbol WTEQ.
Bertman has advised the company that he intends to vigorously contest the allegations of the indictment. He has been ordered to appear in Miami, Fla., on Aug. 21.
WorldTeq authorized agents are provided their own personalized Web site, which allows them to work directly with their own customer base. All agents receive regular recurring revenue as long as the end user remains a customer of WorldTeq Group International or its affiliated companies.
WorldTeq utilizes the services of companies such as Qwest, Touch America, WorldCom, UUNET, Global Crossing, and Broadwing. The company operates several wholly owned subsidiaries, including a wholesale company, an Internet provider, and a billing services company.
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Related articles:
[June 28, 2002] SEC Levels Fraud Charges at WorldCom
[April 22, 2002] WorldTeq Rolls Out VoIP Services
[April 1, 2002] WorldTeq Increases National Network
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BRUCE BERTMAN
On February 1, 1999, we entered into an Exchange Agreement with Bruce Bertman, our present Chief Executive Officer, President, Treasurer and Chairman of the Board, pursuant to which we purchased 100% of the outstanding common stock of Virtual Information Express from Mr. Bertman in exchange for 300,000 shares of our restricted common stock, valued at $2 per share. Our Board of Directors valued our common stock at $2 per share based upon its determination that the market would not support a higher valuation. Our common stock was quoted on the OTC Bulletin Board at approximately $5.50 per share from January to March, 1999. However, there was minimal trading volume during this period. In addition, in December 1998 we undertook a private offering of our common stock at $2 per share which was completed in April 1999. The Board determined that the price of $2 per share used in the offering was an accurate indicator of what investors were willing to pay for our common stock at the time.
On March 24, 1999, we entered into an Exchange Agreement with the members of Computer Ease, pursuant to which we purchased 100% of the membership units of Computer Ease, in exchange for 4,000,000 shares of our restricted common stock and our agreement to provide Computer Ease with $500,000 in working capital. At the time of the transaction, Mr. Bertman was the majority owner of Computer Ease. Computer Ease has since merged with our wholly-owned subsidiary, Al Internet Services, Inc.(SM). Computer Ease's purchase price was determined by
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using a multiple of 1 times Computer Ease's gross revenues. In connection with this transaction, we valued our stock at $2 per share on the basis of an analysis similar to that used in the Virtual Information Express transaction.
On April 20, 1999, we issued 120,000 shares of our common stock to Bruce Bertman in full payment for the $372,692 owed to Mr. Bertman by Computer Ease and Virtual Information Express.
During 1997 and 1998, Computer Ease borrowed various amounts from Bruce Bertman and Mr. Bertman incurred $62,292 in reimbursable business expenses on behalf of that company. Some of these amounts were repaid. Upon our acquisition of Computer Ease, we became responsible for the balance owed to Mr. Bertman. As of September 30, 1999, the outstanding balance was $370,649.
When we acquired Computer Ease, we assumed the rights and obligations of Computer Ease, LLC with regard to the accounts receivable and accounts payable.
On September 30, 1999, we purchased from Bruce Bertman computer hardware and equipment valued at $558,020. In consideration for Mr. Bertman's contribution of this hardware and equipment, we paid the purchase price by offsetting accounts payable to Stockmaker.com, Inc. and Cyber Realm Inc., in the amounts of $304,875 and $248,623, respectively.
LEONARD J. TAMBASCO
On March 9, 1999, we issued 250,000 shares of our common stock to Leonard J. Tambasco, Jr. in exchange for his agreement to serve as our President.
On February 2, 1999, we issued to EBI Securities Corporation a warrant to purchase 500,000 shares of our common stock with an exercise price of $.10 per share as payment for professional services performed in the first quarter of 1999. |
