Borrowed from Yahoo #6723
Francois Loriot, Esq. 27 August, 1998
Officer in Charge, Legal Section
Office of Human Resources
United Nations Development Programme
One United Nations Plaza
New York, NY 10017
Re: Asensio & Company Inquiry: VIA FACSIMILE ONLY
Dear Mr. Loriot:
We are counsel to Dr. Joseph Ben-Dak, former Principal Advisor, United Nations Development Programme and Director United Nations Global Technology & Business Group. We strongly object to your 19 August 1993 letter to Charles L. Stewart, an associate of Asensio
& Company ("Asensio"). Our objection is grounded in (i) your failure to disclose the nature of the work of the Global Technology Group and (ii) your failure to explain the purpose and
anticipated impact of the Flag Technology Program developed and administered by Dr. Ben-Dak and (iii) your failure to consult with Dr. Ben-Dak and Turbodyne Technologies Inc.("Turbodyne") prior to preparing and transmitting your letter to Asensio. Because of yourinadequate and inappropriate responses, in our opinion, you have aided Asensio to defame Dr. Ben-Dak and fraudulently manipulate the value of securities traded in the United States market.
Moreover, you have demeaned the earlier UNDP efforts led by Dr. Ben-Dak efforts to promote sustainable development using unique and appropriate technologies to catalyze and foster environmentally sound development in emerging economics and Southern countries.
Asensio is engaged in the business of disparaging publicly traded companies for profit. With outright lies, half truths, and distortions, Asensio attempts to drive down the share price of
securities it has sold without owning. Asensio then "covers" its sale by purchasing the securities at a still lower price. With the apparent full cooperation of UNDP, Asensio has dramatically
reduced the publicly traded abate price of Turbodyne causing the loss of marc than $450,000,000 to investors. Asensio has defamed Or. Joseph Ben-Dak, one of the worlds leading figures in the
identification and implementation of technology to catalyze sustainable development in emerging economies and Southern countries. Your actions also endanger the ability of emerging economics to realize the benefits to environmental air quality by the reduction of air pollution using Turbodyne's designated Flag Technology, thus further delaying the mandates of the United Nations 1992 Conference on Environment and Development
Turbodyne Technologies is the developer and international patent holder of a new method of reducing polluting vehicular emissions. Because of the uniqueness of the technology and its obvious compatibility with the United Nations' notion of sustainable development and the compelling mandate of the Rio Conference referred to above, Dr. Ben-Oak's Global Technology' Group undertook a rigorous evaluation of the technology prior to November 1996. A determination was made that the Turbodyne technology met the requirements for Flag Technology designation prior to January, 1997. In March 1997, the Flag Technology Designation was issued. These facts are documented in the files of UNDP. These flies should have been consulted along with Dr. Ben-Dak and Turbodyne before your 19 August letter was sent to Asensio.
UNDP records are replete with the information about what a Flag Technol9gy is and what it is not To refresh your recollection, A Flag Technology designation arose from an environmental program of UNDP. A Flag Technology is an indication that after rigorous
examination, a technology has been found unique and appropriate as a catalyst for development in emerging economies or Southern countries. A Flag Technology designation was never intended to be an endorsement of a company, or to he used to promote the sale of securities.
More than 2,500 technologies sought the Flag Technology designation. Fewer than 25 met the rigid requirements. Those few companies that owned qualifying technologies well understand
what the Flag Technology designation means and how it can become useful in assisting those countries requiring catalysis for sustainable development Moreover, we have no reason to
believe that Turbodyne or any other entity owning a Flag Technolo8y has ever used tint
designation as a tool for the promotion or sale of securities If you have any evidence to the
contrary please provide it to us immediately or issue a correction to your 19 August letter Dr. Ben-Dak served UNDP for five years under three separate contracts and was presented with a certificate of appreciation for dedicated service to "peace and development" on
31 December 1997. During his service to UNDP, the work of the Global Technology Group and the experimental Flag Technology Program was well known, well documented, publicly presented at various international conferences and was the subject of a variety of publications. Dr. Ben-Dak has spent more than 25 years in public and academic service around the world. As you know, he is a leading expert in file identification and use of technology as a catalyst for
sustainable development. Your failure to accurately and truthfully describe Dr. Ben-Dak and his work or to consult with him or Turbodyne prior to the issuance of your 19 August letter is
reprehensible. In our view you are aiding and abetting Asensio's defamation of Dr. Ben-Dak.
We have demanded a retraction from Asensio and instead received a press release attacking Dr.
Ben-Dak and UNDP. We believe your letter precipitated this attack.
So that your information will be complete, please be advised we have investigated each of the allegations made by Asensio concerning Dr. Ben-Dak. Each of the allegations is false or contains half-truths intended to mislead. For Example, Dr. Ben-Dak has never been a "stock
promoter" and has never attempted to influence anyone to acquire any economic interest in any Flag Technology or company owning a Flag Technology. Dr. Ben-Dak has received no compensation from Turbodyne but has been reimbursed for expenses incurred in his efforts to
introduce the Turbodyne technology to emerging economies and Southern countries after he departed UNDP. Dr. Ben-Dak does not now and never has owned any securities or options to acquire any securities of Turbodyne or any other company owning a Flag Technology except GK
Intelligent Systems ("GK"). As of March 31, 1998, when GK determined that it would not be in a position to use its technology to catalyze sustainab1e development in emerging economies, Dr. Ben-Dak resigned from the board and sold his stock, stock that he purchased from GK
Moreover, Dr. Ben-Dak is not now and never has been a director of Greystone Financial Services, Inc and has no relationship whatsoever with Thomas V. Ackerly or any entity he owns or controls. Dr. Ben-Dak has no relationship with InvestAmerica. Although a technology owned
by Capella Computers Ltd earned a Flag Technology designation prior to January 1997, Capella is a privately held non-US company and its shares are not traded in the United States. Moreover, since April 1, 1997, Dr. Ben-Dak has not represented himself other than as a former official of UNDP.
We have assumed that your failure to review the records of the Global Technology Group, contact Dr. Ben-Dak or Turbodyne and your inappropriate, incomplete and misleading lettr to Asensio were inadvertent lapses and not intended to harm Dr. Ben-Dak, the Flag
Technology Program, Turbodyne or UNDP. To provide us with the comfort that our assumption is correct, we must insist that you send a revised letter to Asensio (after immediate consultation
with Dr. Ben-Dak and his counsel and Turbodyne) as wail as a latter of apology to Dr. Ben-Dak.
Please be aware that your correspondences will likely be seen by various official investigators
concerned with securities fraud as well as UNDP's commitment to sustainable development
Very truly yours
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