HIGHLIGHTS OF THE CLASSACTION LAWSUIT:
1) MICHAELS is running World Wide Exhange, which is a lottery
syndication out of the WWWC offices, funded solely by WWWC, and
owned and controlled by MICHAELS.
2) MICHAELS has been involved in a number of fraudualent real
estate schemes during the 1980's and early 1990's, defruading
real estate investors out of millions in San Bernardino and
Riverside counties.
3) MICHAELS and his cohorts, persuaded Peter Demos to serve as
"president" because his name was very successful in attracting
investors, who placed their trust in DEMOS' thirty four years
of expewrience in the casino business. DEMOS left in December,
1997, out of frustration with MICHAELS.
4) MICHAELS would hire CFO's shortly before a private placement was
made to investors, in order to represent in the offering
materials that the company had a CFO. However, each resigned
after a few weeks because of MICHAELS domineering style.
5) BINKI ROO, in particular, has no existence separate and apart
of WWWC. BINKI ROO allegedly develops and licenses software
to WWWC. Although it represented to investors that BINKI ROO
was "very experienced" in the area of software developement
, BINKI ROO was formed on the same date as WWWC and had no
employees or prior operating history as of August 1995. BINKI
ROO was formed for the sole purpose of siphoning monies to
MICHAELS while continuing to represent falsely to investors that
he was "not being paid any money" by WWWC.
6) Enormous sums of money have been misused and wasted for the
personal benefit of MICHAELS and some of the other defendants.
MICHAELS leased five luxury automobiles for himself and his
family, a large home in Ritz Cove (with monthly payments in
excess of $8,000), a second home for his family in Nellie Gail
Ranch, a "Scarab racing boat worth $125,000 or more paid with
WWWC funds. During the time, MICHAELS routinely flew first class
and always carried extravagant wads of cash misappropriated from
WWWC> He also made frequent trips to Las Vegas, Nevada and "
a lot" of checks were drawn on the accounts of WWWC and its
affiliated companies to pay MICHAELS gambling debts, drugs, and related personal expenses. MICHAELS girlfriend-who lives in LAS
Vegas and is apparently assisting MICHAELS in funneling monies
out of WWWC through a bank account held in her name-was regularely
flown to Orange County for visits with MICHAELS, at company
expense. Defendant MICHAELS personal offices is opulently
furnished and is larger than most board rooms.
MORE TO COME!!!!!!!
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