I will have to restate the facts at this point:
1. The wrongdoing--according to the SEC (will we take their word for this?) ended in May 1994.
2. Mr. Raabe joined the company in March 1995, 10 months later.
3. Mr. Raabe stayed 11 months with--yes--a CPA and two stockbrokers who had the gumption to oust the prior allegedly corrupt board. This was an interim team; 11 months later turnaround expert Bruce Weaver cameon, and Mr. Raabe let him do his work while remaining a director.
4. No one can point to any wrongdoing that occurred DURING Mr. Raabe's tenure--the fact that the company still had problems while Mr. Raabe was briefly there relates back to what previous mmanagement was up--Raabe came in TO CLEAN UP.
The Lakeland, Florida Ledger reported on March 31, 1995:
"The chief executive and entire board of directors of Lakeland-based Quality Products Inc. have resigned after a stockholders group threatened to oust them in a proxy fight."
" 'A group of shareholders were disappointed about the company's performance and the drop in the stock", said Kyle Kennedy, senior vice president of Quality Products. They negotiated an agreement with (JamesS.) Renaldo that he would resign as CEO. He left on March 23'"
"In 1994, the comapny lost an estimated $7.4 million, according to its year-end financial report."
"As part of that settlement, Thomas P. Raabe has been named Chairman and CEO of the company. Raabe, a securities lawyer from Boulder, Colo., served as the stockholder"s committee representative."
Three other board members--Steven L. Durket, Thomas F. Keefe, and Gregory J. Tamborello--also have resigned."
"Raabe has initiated an investigation into the company's financial and legal dealings, Kennedy said. He wouldn't comment on whether any unlawful activity is suspected." [Remainder of article discusses possible lay offs at company, product line cutbacks, and trading halt pending Raabe's investigation."]
I don't see any wrongdoing by Mr. Raabe here. Indeed just the opposite. |
