same Evans? Wade Cook Issues Statement about Bloomberg Reporter David Evans
Business Wire, August 8, 2002
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Posted on Thu, Dec. 01, 2005
Financial guru charged with tax fraud
Associated Press
SEATTLE - A financial guru whose own business went bust was charged along with his wife Thursday with eight counts of tax fraud, conspiracy and obstruction of justice.
Federal prosecutors accuse Wade B. Cook, 56, and his wife Laura of concealing nearly $8.9 million in seminar fees and book royalties from 1998 to 2000.
Wade Cook conducted hundreds of the seminars on asset protection, stock investing, real estate acquisition and avoidance of income tax, the U.S. attorney's office said in a statement. His books include "Wall Street Money Machine," "Wealth 101" and "Business by the Bible."
In tax returns filed for 1998, 1999 and 2000, the couple reported adjusted gross incomes of about $350,000 annually while concealing the additional millions, prosecutors contend.
According to court papers, the Cooks created a phony tax-exempt entity that purportedly was to benefit the Mormon Church but did not. In fact, documents said, the Cooks were concealing royalty income they spent on such things as show horses, his-and-hers Cadillacs and a $20,000 baby grand piano for an associate.
They also used the money to make "imprudent business loans to prop up struggling business ventures into which Wade B. Cook had already poured large sums of money," the documents said.
A call for comment to Cook's lawyer was not immediately returned late Thursday. The Cooks' telephone number in Fall City, about 25 miles east of Seattle, is not listed.
Cook, a former cab driver, shut down his operations in February 2003, a month after his company went into Chapter 11 bankruptcy. Creditors alleged the company made dubious loans to executives and failed to pay for employees' health-insurance coverage.
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Wade Cook Issues Statement about Bloomberg Reporter David Evans
Business Wire, August 8, 2002
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Business Editors
SEATTLE--(BUSINESS WIRE)--Aug. 8, 2002
Wade Cook, President and CEO, Wade Cook Financial Corporation (OTCBB:WADE) is issuing a statement concerning the repeated half-truths, omissions, misrepresentations, and exclusively negative reporting perpetrated by Bloomberg Reporter David Evans, as particularly evidenced in his articles of August 7th and 8th, 2002.
In these articles, David Evans referred to a recent Form 8-K filed by the company wherein it was reported that members of its board had resigned. Cook's statements were clear, "Responsible reporting would have included the fact that in the same recent filing he referred to, the company '...denies the allegations made in the attached letter of resignation and disagrees with many of the views expressed in Ms. Leysath's letter....' Even in a cursory read of Ms. Leysath's letter, the name-calling, and lack of professionalism or constructive input, would cause any reader to seriously question the veracity of her allegations."
Cook continued indicating, "Mr. Evans cites that resignations of Board Members '...follow the resignation of Chief Financial Officer Cynthia Britten in March....' This is an incredible stretch to even suggest any connection; there were THREE MONTHS between these unrelated events. Ms. Britten resigned for personal reasons and even cited physical health as her reason, as previously reported by Mr. Evans himself on March 25, 2002. Mr. Evans also makes a gross miscalculation in attempting to connect Ms. Britten's resignation with a totally unrelated inquiry."
A company spokesperson stated, "Ms. Leysath's resignation letter made no reference to her not having a college degree, and contained no comment that she therefore '...had no business being on that board.' Even though these comments were not in her letter of resignation, executive management cannot agree with the notion that all Board Members of any publicly traded company must have college degrees. To so disallow any and all persons to become Board Members of publicly traded companies is incredibly short-sighted, and would result in a disastrous blow to the effective running of corporate America."
"Unfortunately for the truth-seeking public, Mr. Evans refuses to provide readers with current information about many a company's situation," says Robert Hondel, WCFC, COO. "As in this instance, he only makes a reference to 2001 information concerning the company's stock portfolio value. Had he sought out company officials, he would have learned the current and ACCURATE information that, even by using the FTC's standards, the company's stock portfolio value had INCREASED. As long as we're setting the record straight, we must correct the misstatement made by Mr. Evans that Ken Roberts was '...a former CFO of Wade Cook.' This is another flat out lie espoused by David Evans. Kenneth Roberts has never been the CFO, of WCFC or any of its subsidiaries. This is indicative of the kind of false information he is constantly disseminating about our company."
Cook concluded: "Our company has indeed suffered its share of challenges over the last year. The earthquake and resultant flooding of February 2001 caused major damage to the building and business operations; the public's perception of the current stock market has definitely reduced customers' willingness to invest in financial education; and the September 11, 2001 terrorist attack -- have all been outside the control of the company yet impacted business. Executive management has, nevertheless, demonstrated fiscal responsibility by initiating dramatic steps to streamline expenses, discontinue unprofitable subsidiaries, and continue its concerted emphasis on our core business. We are confident that we can continue to make a profit at this income level, and expect to do so as we grow into the future. We remain committed to enhance shareholder value."
For additional information about Wade Cook Financial Corporation visit Investor Relations at www.wadecook.com, or contact Carl Sanders at 206/901-3161.
This press release contains statements that may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. For factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, please see the "Risk Factors" described in Exhibit 99.2 to the company's 10-Q Quarterly Report for March 2002, and in other filings on file with the SEC, which Risk Factors are incorporated herein as though fully set forth. The Company undertakes no obligation to update or revise forward-looking statements to reflect changes assumptions, the occurrence of unanticipated events or changes to future operating results.
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