DADDY and ALL,
Here is Mork's response to your questions....................
Date: 1-9-98
To: DADDY BIGS
From: Dempsey Mork
Regarding: answers to your questions
The short position.
1a. How did you come into your short position?
Answer: Mike Zapara, who was a friend of mine from polo, asked me to sell OVIS shares in my account so that Olympus would not know Zapara was the seller. Zapara agreed to deliver however many shares I was able to sell to my broker. Based on my belief that Zapara would deliver the OVIS shares, I sold 100,000 shares of OVIS "long for late delivery".
1b. If you sold these shares for Zapara through your account, isn't that illegal (free riding). It is my understanding you cannot trade shares for someone else in your account.
Answer: Free riding is when a market maker executes a trade for his own account while holding back a customer trade that guarantees the market maker a profit. Free Riding is illegal. If I was selling Zapara's shared in my account I wouldn't had had a problem with delivery. I don't know if its illegal to trade shares for someone else in your account. I have never done that. I know its legal for brokers, fund managers, trustees, and investment advisors. I don't know if it's legal without a license.
1c. Was the stock at a price for it to be legally shorted?
Answer: Investors can't short Bulletin Board stocks no matter what the price. I did not short the stock. I sold "long for late delivery" which is not uncommon. When you sell stock that is in your desk drawer, not in your brokerage account, you are not selling short, you are selling long for later delivery. If for any reason you were unable to make delivery to your broker you would be short, regardless of your original intent.
1d. What was the price of the stock when you sold it for Zapara?
Answer: The average price was $0.20 per share.
1e. Have you shorted any OVIS-RMIL through Canada?
Answer: No, I only sold OVIS-RMIL long for late delivery. Zapara opened an account with the same broker so he could transfer the shares to my account without a market trade. When Zapara broke his promise and failed to deliver, I ended up short.
2. MAWORK1-PMT (PTM inc) PHURTY
2a. Per our phone conversation on 1/5/98 you stated you had great influence over MAWORK1 and PMT INC. are they paid or employed by you for any reason.
Answer: MAWORK1 is Randy Baker who works for me. Most of the posts under MAWORK1 are from Randy. I don't pay Randy to post. He is paid for other work. There have been times when he has allowed others to use his password. I have great influence over Randy but have not asked him to surrender his Constitutional right to free speech as a condition of employment.
PTM INC is an internet consultant who I hired to produce Olympic Adventures. I controlled the content shown on Olympic Adventures but not the PTM INC posts. PTM.INC is being paid to record posts and the authors of posts relative to insider trading and false statements.
2b. Do you exert this same influence over PUHRTY and is this person paid or employed by you for any reason?
Answer: PUHRTY is an acquaintance of mine who is very knowledgeable in NASD and SEC matters. I don't pay him even though I seek his advice often. I don't know if I influence him or not.
3. Olympus Adventures WEB SITE
3a. Again per our phone conversation of 1/5/98, you stated this site was yours. What was your purpose for constructing this site?
Answer: I hired PTM to build the Olympus Adventure site to bring attention to the lies being told by Morgan and Breton. Olympus had failed and was closed when Morgan and Breton issued press releases to the effect that business was booming and profitable.
3b. Why was the site taken down when it was linked to Magellan Capital?
Answer: The site was taken down after some hacked their way in and sabotaged the site. The hacker knocked out the entire server along with many other company web sites.
4. Olympus Ventures
4a. Why did you attempt to take the name Olympus?
Answer: Olympus Ventures, Inc., was dissolved by the State of Washington on June 23,1997. The reason was that Olympus Ventures refused to disclose the names of its officers and directors to the State of Washington. Olympus Ventures, in their last 10-K told the SEC and their investors that they didn't know who their officers and directors were.
My lawyers applied for and were granted a Washington Corporation and the name Olympus Ventures. After Washington State incorporated our company as Olympus Ventures and after a press release, the State of Washington wrote us a letter informing us they had made a mistake and reinstated Olympus Ventures at about the same time. The State of Washington has asked me to change the name. I have refused.
At the time I incorporated the name Olympus Ventures I had no idea what Morgan and Breton were up to. Olympus Ventures no longer existed. It had been dead for about 75 days. I couldn't figure out why they would tell investors on the OVIS web site that they were the officers and directors, tell the SEC they didn't know who their officers and directors were, and refuse to tell the State of Washington anything.
One thing I learned from the reinstatement request is that Joel Marcus is a Olympus/Rocky Mountain director. His address is listed as 767 West Prospect Road Fort Lauderdale, Florida 33304.
The reason for taking the name was to draw attention to the dissolution and the fact that Olympus Ventures was not in the garment business. Lawyers can debate who owns the name Olympus Ventures but no matter who owns the name the truth is that Olympus Ventures is not in the garment business.
5 MORGAN, BRETON, and PUHR
5a. Have you ever in the past has business dealings with MR> Morgan or Mr. Breton or Mike Puhr? If so what were they?
Answer:I have never had any business dealing with Morgan, Breton, Puhr, or any of the companies.
I will be happy to answer any additional questions you or any other shareholder would like to ask. My office telephone number is 760-776-9331. It is better to call me or send a fax (760-776-9332) because I son't se the message if you post it on SI.
Mike Kugler faxed me your post. I am sending you these answers through Mr. Kugler's email because I don't know your email address.
Warm Regards
Dempsey Mork |
