Cindy:
Nice to hear from you again. Your message to John suggesting NVID is a "speculative" investment was very kind. In our opinion it is a ridiculous investment. With all due respect, anyone who would consider it has not and is not paying attention.
NVID is apparently now an organization of two, Mr. Larson and Mr. Redden. They have no available assets other than what may be left from the sale of Arata's house. We doubt if there is much after paying creditors including themselves and lawyers. They have no income stream. They have no products to market other than those produced by others for which they are now attempting to be a distributor. One need not look much further than Klenovic's guilty plea accepted by the Court on August 28, 1997. Page 16 of the Plea Agreement states:
"Between November 1994 and March 1997, Klenovic and others conspired to defraud investors by offering as investments shares of stock in NVID with the victims investing generally in the range of $100 to in excess of $90,000. The defendant disseminated false and fraudulent information regarding the value of the shares of NVID on the Internet, through the public media and through stockbrokers. Klenovic falsely represented that the investors would be purchasing shares in a business which was RESEARCHING, DEVELOPING AND MARKETING PRODUCTS RELATING TO PURIFICATION AND DISINFECTION WITH APPLICATION IN A MULTITUDE OF INDUSTRIES, INCLUDING HEALTH CARE. IN REALITY, THE INVESTORS WERE TURNING THEIR MONEY OVER TO KLENOVIC AND OTHERS WHO PLACED IT INTO CLEARING ACCOUNTS AND THEN CONVERTED TO THEIR OWN PURPOSES. IN ADDITION, THE PRODUCTS THEY WERE TOUTING WERE NOT AVAILABLE FOR MARKETING AND WOULD NOT BE AVAILABLE FOR SEVERAL YEARS, IF EVER."
"NVID had its own investment web site on the Internet and was touting the value of its stock. Investors would be attracted to the stock purchase and call a number provided on the Internet. These false statements were also disseminated in other public media. Upon contacting NVID, Klenovic would provide them with a packet of materials, including a business plan which set forth the false statements referred to above. NVID NOT ONLY WAS NOT DEVELOPING THE PRODUCTS IT WAS TOUTING, KLENOVIC AND OTHERS WERE LOOTING THE INVESTORS' FUNDS FOR THEIR OWN PURPOSES. There are approximately 1,000 victims of this fraud."
Particular attention should be given the area we put in all caps. Remember, these are not allegations. These are facts to which Klenovic pleaded guilty.
What has changed in the last several months that would make this fiasco worthy of someone's investment dollars? Although we did recently hear Arata is now part of another company attempting to pass itself off as something it is not from which Larson and Redden can buy product to sell. Maybe that will help. Our only question is, "under which shell is the pea?"
Best regards,
Derek |
