Well done, Rick C.! Thanks for digging this up. This must be the smoking gun referred to in Campbell's suit against Paracelsian. Richard., It's good to see you back. It seems like you were the smartest of us all in bailing out early. I've posted a lot of information about what's been going on, but if you have limited
time and can only read one document, please read a letter drafted by Colin Campbell's lawyer for his suit against PRLN:
techstocks.com
He mentioned a smoking gun, which is apparently what Rick's good work
uncovered:
On December 4, 1996, Keith Rhodes admitted in writing to Dr. Campbell that there was no completed research study for Indian-sourced herbs. Neither were there protocols for the collection, screening and reporting of the data regarding the Indian herb extracts that were to
have been studied. Mr. Rhodes would not disclose the name and address of the entity which supposedly conducted this study. The Board never authorized any agreement for this study and the nonexistent written report was not invoiced. There was no screening and there were no
results. Mr. Rhodes further admitted to Drs. Campbell and Babish and Mr. Koch that there was no evidence any Board member approved his issuing the 200,000 shares of Paracelsian's Common Stock.
Posts 3156 - 3160, 3162, and 3164 - 3166 covers the record of Paracelsian's lawsuit against Babish and an abbreviated response by Babish.
Posts 3088 - 3093 gives the record of Babish's defense in more detail. I spent many hours reading through both sides of the lawsuit and looking for flaws in the logic or facts of both sides. Babish's testimony held up well. PRLN's case against Babish was as solid as the Wicked Witch of the West taking a shower. I am convinced beyond a shadow of a doubt that PRLN's lawsuit against Babish is a nuisance suit. It's purpose is to gag him so he can't tell us investors what
really happened with our money. Rick M., there is a lot of material to read here, and I can't imagine you would have time to read it all, but if you do have some spare time I think you will find it fascinating reading. My analysis of all this can be found in posts 3202 - 3204 and 3206.
I know that the stockholders meeting in August was forced on the company. It was held 3 months after the bylaws required it to be held and it was only held because Colin Campbell had filed a lawsuit and a judge was about to force them to have a meeting. I am convinced that Rhodes did not want to let the stockholders question him about what he's done with their money. See posts 3067, 3069, and 3072 - 3074 for my report on the meeting. The following is from
post 3069:
5) A questioner asked Mr. Nikolis (A board member up for reelection) a very simple question: The company had issued 200,000 shares worth $375,000 to consultants in order to screen Indian herbal extracts. The 1995 Annual report said that they found nothing of interest in these compounds. Dr. Campbell's suit alleges that no
such screenings took place. The question posed was simple: Either "yes" or "no". Were any Indian compounds screened? Mr. Nikolis refused to answer this question because it was under litigation. He also said that the company was investigating what had happened. Mr. Nikolis was then asked how long the company's investigation into what happened has been going on. Nikolis replied that he wasn't sure, but he thought about 5 months.
This is mind boggling to me. If they had screened any Indian herbs and if Mr. Nikolis was positive of this fact, I don't see how he could get into legal troubles by answering the question "yes". And I have no idea why an investigation into whether or not screenings took place should take 5 months.
Forest Gump may not have been the brightest guy in the world, but even he could have unconvered evidence within a day or two of a screening of Indian herbs if one had been performed as stated in the Annual report. Heck, even the Three Stooges were better detectives than the folks at PRLN who are searching for evidence of a screening of Indian herbs. This all reminds me of OJ's pledge to spend the rest of his life trying to find the real killers of Nicole Brown Simpson.
I believe Rhodes is guilty of destroying this company. Babish may have made some mistakes, and he is certainly guilty of bad judgement for bringing Rhodes into the company. But I would place 95% of the responsability for the company's downfall on Rhodes' head. I agree with you Hank. Rhodes should spend the rest of his life in jail.
Robin Messing |
