BBNS promoted NVID prior to the discovery that they had no product, their chemist had no formal education and had served prison time Three of their officers sold stock directly to shareholders and built expensive homes with the proceeds, additionally it seems they used shareholder money for decorating, dental bills and the formation of a private club. BBNS obiviously does not research their recommendations.
To: +Cindy Powell (2381 )
From: +Derek Allen Thursday, Feb 5 1998 5:14PM EST
Reply # of 2457
Cindy:
I just finished reading the SEC's Motion for Summary Judgement dated January 30, 1998, Re:
SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,
v.
NVID INTERNATIONAL, INC.,
MATTHEW E. KLENOVIC, and
ROBERT F. BUNTS,
Defendants,
MARILEE S. KLENOVIC,
ANDREW ARATA, THOMAS R. YEARMS, and
COMPANIES UNLIMITED, INC.,
Relief
Defendants
Even I am amazed. According to the SEC filing, investor money not only paid for houses and other personal expenses, but things such as:
* $92,500 to Arata for use in paying off debt and decorating and refurnishing his home.
* $155,455 to furnish and decorate the Klenovic home.
* $14,500 for Bunte's dental work.
And finally, and I quote:
"In addition to diverting investor funds to NVID employees, from August 1996 through December 1996, NVID transferred approximately $45,000 to Companies Unlimited, whose bank account was controlled by [Thomas] Yearms. In return, NVID received three promissory notes totalling $45,000, each signed both by Companies Unlimited and by Yearms personally. Companies Unlimited, whose sole director was Bunte, was created by Klenovic and Yearms to establish a private gentlemen's club in Connecticut."
Incidentally, anyone who thinks Microsafe is a viable product should obtain a copy of this Motion for Summary Judgement and review the SEC's findings. |
