Robert: I don't have the papers in front of me, and the official charge was something like "possession of narcotics in the something-or-other degree" but, translated into English, a drug dealer. He had a bunch of other arrests for various things in NY and CT, but I was never able to find out the disposition of those cases.
The conviction was in March 1990, I recollect. SEC rules say you have to talk about your history for the last 5 years; DHMG filed its papers to go public 5 years and a few weeks later.
He was in the investments business in the early 1980's and ran into some trouble there, the details of which I wasn't able to get. I suppose I could with more work, but I don't care that much.
I believe that people can make mistakes with their lives, but are capable of change. Hagen could have done a million things wrong ten years ago, but if he were running the company honestly none of that would have bothered me. In fact, I found out this information last summer, but you didn't see it in any of my public notes because it was not relevant to the issue of the company's crooked accounting.
It is only of interest now because the SEC is bearing down on the company, is almost certain to bring formal charges, and often refers cases to federal prosecutors for criminal charges, if the situation looks bad enough, as this one sure looks. Hagen's previous conviction will set him up for some serious jail time if convicted, not just a long probation as he was able to plea bargain last time. This possibility must be occurring to him, and may affect the precise manner in which this story plays out.
You may have noted the large number of 144 sellers that are entities that are domiciled in various Caribbean islands. My hunch (no evidence, just a hunch) is that these offshore holders may actually be owned by Hagen and/or his buddies. It is reputed that drug dealers have many contacts in that area. Given the forces that are going to be brought to bear on him, and given the various alternatives, would I be surprised and stunned to discover that Hagen resigns his position, dumps a bunch of stock before it goes to zero, and decides to take an extended vacation out of the country? No.
Of course, this is just idle conjecture on my part; no one should give it any credence. |
