Stocklemon is calling for the immediate resignation of the auditors of YP.NET as of March 3, 2003.
Epstein Weber and Conover have been violating many accounting standards and have been assisting upper management in the fleecing of the shareholders. To read the whole letter directed at the auditors go to
www.stocklemon.com
Cautious Investing To All
Stocklemon.com
TRADING
RESEARCH
March 2, 2004
Stocklemon Update on YP.net (YPNT)
“I never give them hell. I just tell the truth and they think it's hell.”
--Harry S. Truman
The past month has been quite eventful for Stocklemon. Last month alone, two companies that were subjects of previous articles (RTNH/SAFS and SJCK)were forced to disclose that the SEC had opened formal investigations into their business practices. In the past 2 ½ years, subjects of Stocklemon articles have been the targets of over 8 formal SEC Investigations and 3 trading suspensions. Our record on spotting fraud and irregularities in the public filings speaks for itself.
Last week, YP.Net sent two “goons” to the house of the webmaster of Stocklemon.com (The webmaster is just that…he is uninvolved in our research). Unfortunately for them, we will not be silenced until justice is served. We have contacted the FBI and will not be intimidated by strong arm tactics intended to suppress the truth
With over 30 reports written to date, Stocklemon finds it ironic that the only time we have ever been sued is by YPNT, a company that we have called in previous reports, “the dirtiest company to date”. Stocklemon looks forward to defending our statements in a court of law.
If any of the officers or directors of the company control the offshore “M&M” corps, than the company is guilty of
Tax Fraud
Securities Fraud
Wire Fraud
Money Laundering
Violation of RICO Act
The offshore trusts in question were established by Michael Bloomquist, or as he is currently known as inmate # 45413-008, as he is incarcerated for tax fraud(see previous Stocklemon article for details). YP.net claims that they no longer have business dealings, but you may judge for yourself. According to the 8/13/03 10Q, the company paid Commercial Finance Services d/b/a/ HR Management ("CFS") $528,630 during the 9 months to date. Who owns Commercial Finance Services?
MICHAEL BLOOMQUIST
starpas.cc.state.az.us
And just in case you are curious to how recent the filing is,, scroll to the bottom of the page to click on the 2003 link just to see Michael Bloomquist’s signature.
Attention Crane and Tullo
A quick check on the Bureau of Prisons website and phone call shows that Mr. Bloomquist has just been put in transit with the Federal Marshals. Is he now being possible being charged in a case involving YP.Net? Is he turning states’ evidence as you are reading this? Only time will tell.
Is Greg Crane the mysterious Offshore Corps?
According to the company’s 10k, “Greg Crane was also the creator of the Yellow-Page.Net concept.” Yet, at the same time we are supposed to believe that the URL’s were registered by the same unknown investors who owned the shell company?
YP.Net made a $3,000,000 cash payment and issued a note payable for $2,000,000 to acquire the licensing rights of the URL. Wouldn’t this go to the person who created the concept? After all, Greg Crane does have a history of registering many URL’s for business. Are we to believe this is the one he did not register?
Yp.Net has sent more than $10 million to the M&M’s over 4 years. Are we supposed to believe that Greg Crane does not know who received the money?
Greg Crane transferred a deed of trust of his house to the M&M corp.? Are we supposed to turn our head? stocklemon.com
So How Good Was Last Quarter Really?
It does not make a difference on how much money you take in….what makes a difference is how much you keep and how much you owe. At the end of the quarter, THE COMPANY DID NOT HAVE ENOUGH CASH TO EVEN PAY ITS TAXES OWED.
Cash and equivalents $ 1,156,158
Income taxes payable $ 3,431,333
Guess where all the money went? Offshore to Antigua. The most startling number on the balance sheet is:
ADVANCES TO AFFILIATES $4,197,460
Since the inception of YP.Net, the company has sent well over $10 million to the mysterious offshore shareholders better knows as the “M&Ms”.
WHAT ARE THE AUDITORS THINKING?
Mark Weber is the current auditor for YPNT. Mr. Weber’s former partner while he was the auditor of YPNT is a gentleman named James Marshall. Last month, Mr. Marshall was expelled from the SEC Practice Session for not complying with membership requirements and peer review committee. Are these the same practices that Mark Weber has employed when dealing with YPNT?
aicpa.org (page 7)
Stocklemon believes that when all the dust settles, it will be the auditors who get sued by the shareholders of the company for malpractice. It is the opinion of Stocklemon that Epstein, Weber, and Conover has failed to detect or ignored a scheme by the directors of YP.Net to transfer funds from the company to unknown offshore entities that are controlled by the company’s directors.
We believe that YP.Net’s long time auditor Mark Weber is turning a blind eye to the many violations of YPNT. It should be the responsibility of his partners Sheldon Epstein and Glenn Conover to ensure that one allegedly rogue accountant will not bring down their practice. Again, we believe that YP.Net will never be able to pass an audit from any other auditing firm than that associated with Mark Weber.
It is not the responsibility of an auditor to protect the officers and directors. It is the responsibility of an auditor to protect the truth. In this case, we believe that Mark Weber has not protected the truth nor has he protected the shareholders.
Angelo Tullo
For those of you who are not familiar with the wonderful CEO of YPNT, please read the two court documents below. This first one is the document that
TULLO DOES NOT WANT YOU TO READ.
Tullo tries hard to hide this document from the public, but thanks to our hard work we can share it with you.
stocklemon.com
Here is another nice read
216.239.53.104
Money Laundering
The signers for these mysterious M&M Corp’s is Ilse Cooper and was William Cooper. These people are wanted by the US Government for money laundering. The first Stocklemon report outlines the details. YPNT might contend they have nothing to do with the Coopers, but signatures do not lie. The Coopers are fugitives in Antigua.
The Future of YPNT
YPNT has built their business on the ability to bill a customer's phone bill directly and therefore allow their charges to “slide by”. Stocklemon believes that once the house of cards comes tumbling down on the principals of YPNT, the billing companies will drop them as a client and thereby destroy the current business. Dick Oxler, director of billing and collections for SBC Communications has been quite vocal in his crusade against cramming and we do not believe that he will approve of the practices of YPNT.
Conclusion
It is the opinion of Stocklemon that YPNT is a ticking time bomb. At any time, one of MANY government agencies can put an end to their practices. Furthermore, the strong-arm tactics of YPNT speak volumes. When the music stops will you have a seat? Cautious Investing To All.
Copies of this report have been sent to:
IRS Criminal Investigation Unit
Criminal Investigations Section
P.O. Box 25248, Phoenix, Arizona 85038-5248
George Beard
Arizona State Board of Accountancy
100 North 15th Avenue
Suite 165
Phoenix, AZ 85007
Securities and Exchange Commission
5670 Wilshire Blvd. #1100
Los Angeles, CA 90036
Attorney General
Terry Goddard
Office of the Attorney General Department of Law
1275 West Washington Street Phoenix, AZ 85007
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