IMP boss expects to be cleared
This is an article in today's Akron Beacon Journal
Vertucci to cooperate with SEC inquiry into accuracy of disclosures
Interactive Multimedia Publishers Inc. President P. Joseph Vertucci plans to cooperate with a Securities and Exchange Commission investigation of his company and expects to be cleared of any wrongdoing, his attorney said yesterday.
"There are a a lot of sharks in the water ready to capitalize on a new public company, " said Tom Furth, Vertucci's Cleveland-based attorney.
"Joe Vertucci was concentrating on business development and new ideas and working 24 hours a day on building a business, "he said". "He may have been careless from time to time on some things, but he was following the advice of people who had taken a company public before. And I'm not sure that was always good advice."
On Wednesday, the SEC halted trading on stock from IMP, the Akron-based developer of interactive kiosks and CD-ROMS, because of questions about the accuracy of information company officials give investors about its finances and stock.
The stock is scheduled to resume trading on the Nasdaq bulletin board on Dec. 17.
The SEC ordered the halt "because of questions that have been raised regarding the accuracy of disclosures concerning IMP's corporate history and the tradability of its shares."
"The commission cautions broker-dealers, shareholders and prospective purchasers that they should carefully consider the foregoing information and any information subsequently issued by the company , "wrote the SEC in its order.
SEC officials would not comment on the specifics of the case.
However, in August, IMP said the value of copyrights written by Vertucci were worth only $7 million, not $82 million as cited in an industry newsletter and the company's World Wide Web site, nor the $37 million cited in an SEC filing last summer, which was later amended.
When trading was suspended, the company's shares, which hit $8 in Feb, were priced at .38 cents.
Furth said IMP would seek a meeting with the SEC next week to discuss the commissions about the company.
"We intend to cooperate fully with the SEC and we recognize their obligation to protect the publics interest and any individaul's interest
said Furth. "We are going to approach this with vigor. And the facts are going to reveal that Mr. Vertucci has done nothing improper.
The SEC order comes at a time when Imp was moving ahead, said Furth. It recently acquired International Satellite Communications Corp. of Chicago and has established a new sports division, called World Wide Sports Marketing , which has introduced a line of kiosks to be placed at golf courses and sporting arenas.
"This could be one of the great success stories in Ohio business, "said Furth. "Its products could be soon exploding into the marketplace. In a way, we are glad this came now instead of later. We are anxious for the SEC to finish this so we can move forward."
Furth said some of the problems the SEC is investigating could have come from others at IMP.
"There are a lot of people who have taken advantage of this guy, people who prey on individuals who are very, very creative, but may not be that familiar with the workings of a public company, "said Furth. "There are people who stand to benefit from this type of action against him."
A former employee has filed suit in Summit County Common Pleas Court against Vertucci for alleged breach of contract and securities fraud. And Vertucci has filed a countersuit against the employee.
Furth said the SEC may be basing its investigation based on back channel communication from former employees of Vertuccii.
"This is an innocent guy here in a vise grip right now, " said Furth. "He's just trying to move an innovative company forward. He's innocent . If he's guilty of anything, it's trusting the wrong people." |
