A Wakeup Call to Itex's Stockholders, Brokers, and Members:
Steven White, CEO of Itex Corporation, should be fired!
Steven White, stop hiding and have the courage to address my complaints against you.
I am a former preferred member of Itex Corporation ("Itex"). I'm in a situation that I never expected to be in. I am not an attorney. The following are my beliefs and opinions about this situation:
Itex is a barter exchange company with approximately 22,000 members. The Tax Equity and Fiscal Responsibility Act of 1982 ("TEFRA") requires Itex to handle all transactions "on par with banks" and also requires Itex to act in a fiduciary capacity. Itex ignores both responsibilities.
If you've followed this thread, you know Les French. A gutsy former Vice President of Itex with the balls to stand up against Itex's wrongdoing. If there were more people like him, this would be a better country.
Itex tried to intimidate Les French by hiring lawyers to sue him. That backfired on Itex big time. Les French fought back. Itex had to pay $50,000 to settle the lawsuit that they started against Les French. If that wasn't a wakeup call that something is wrong at Itex, my situation should be.
As some of you know, in addition to the Les French revelations, Itex was prosecuted multiple times by the U.S. Securities and Exchange Commission ("SEC") for defrauding stockholders and for filing fraudulent statements. Itex's former CEO was arrested as a result of the SEC's investigations (search "Itex Corporation" at sec.gov).
It's a no-brainer. Itex needs a CEO that can rebuild stockholders', brokers', and members' trust. Steven White is not that person. His actions and inactions reveal, for apparently personal reasons, that he is sabotaging Itex's reputation and integrity - not rebuilding trust.
I believe in barter. I believe that nearly every Itex Broker conducts business ethically. I believe that Itex members are a honorable and valuable part of the business community. I also believe that Steven White, Robert Benson ("Rob Benson"), Itex's current Vice President, and John Castoro ("Castoro"), Itex's former Vice President and current Itex Broker for New York and New Jersey, should not be a part of Itex.
During my membership, I discovered that Castoro embezzled $56,650 from my trading account. My monthly statements clearly show unauthorized withdrawals from my trading account being transferred into Castoro's account. It's also likely he forged a signature on an Itex trade draft to steal my funds . I twice reported Castoro's theft to Steven White. Steven White did nothing. Subsequent to reporting the theft, Castoro maliciously froze my trading account and put me out of business. Again, Steven White did nothing.
To date, my funds have not been returned, my trading account is still frozen, and I remain out of business. Steven White's inaction has harmed me as much as Castoro's theft. Recently, the New York State Supreme Court (New York County Index No. 07/601777) ordered Itex and Castoro to answer embezzlement charges.
Steven White has not been totally inactive. Prior to the Supreme Court's order, this matter was before the American Arbitration Association. During the arbitration, Steven White improperly sent Lawrence Mills, the Arbitrator, a $1,650 check to settle this matter in favor of Itex. The arbitrator returned the check with an admonishment. Castoro, who publicly states that he makes $200 million of transactions a year, refused to participate in the arbitration and claimed that he was too poor to pay his portion of the arbitration fees.
Steven White has a professional responsibility and a fiduciary duty to safeguard the funds of Itex members. Because of Itex's lax procedures, what happened to me could happen again to another Itex member. Steven White had an opportunity to show leadership and demonstrate that thefts from members' trading accounts will not be tolerated. Instead, Steven White apparently had Rob Benson submit a fraudulent accounting statement and a fraudulent contract to the Supreme Court to cover up Castoro's theft. I know, it seems almost implausible to me too!
If you're wondering what the heck is going on, so am I. In business, a company's reputation and integrity is one of its most valuable assets. Steven White is recklessly sabotaging Itex's reputation and harm its brokers and members.
In an email forwarded to me, an Itex member asked that Itex's abuse of a "Spend Down" policy be exposed. According to the member, without just cause, Itex demanded that he spend the $30,000 trade dollars in his account or lose it. "Lose it" means that Itex (or the Broker) would take ownership of the member's $30,000. If this occurred, it would be a conflict of interest, a breach of a fiduciary duty, and a theft. Members in this situation should seek legal advice.
When Itex places a member in a Spend Down status or when a member justifiably wants to cancel his membership, the balance in the member's trading account becomes an issue. Itex (or the Broker), of course, prefers the member to spend down the account balance and go away. However, if litigated, the court may order Itex (or the Broker) to pay the account balance in USD not trading dollars. Depending on the number of members seeking the court to award USD and the amount of the awards, this may dramatically impact the income of Itex (or the Broker).
The Supreme Court scheduled a conference for March 23, 2012. Because Castoro embezzled $56,650 from my trading account, froze the remaining balance in my account, and put me out of business, I am humbled. I cannot afford an attorney and must represent myself in court. If you will, please provide me with any information you think may help me. Considering Steven White's use of Itex's funds to hire an attorney and his willingness to stoop to trickery, in spite of the facts, I can lose this lawsuit. That would be unfortunate for me.
Business Watchdog, a consumer advocacy organization, is tracking this situation. For additional information see: businesswatchdog.info
John Bal
nycjohn123@msn.com |
