Solomon Yarmak, The Tail that Tried to Wag the Dog -- A Cautionary "Tail"
The following is a note from Oilex's 8/5/97 10SB12G:
NOTE 5 - SIGNIFICANT SUBSEQUENT EVENTS On February 20, 1997, the holders of the 15.0% ConvertibleSubordinated Bonds elected to convert their bonds into 238,000 shares of Oilex common stock, par value $0.001 per share, at$0.28 per share. Additionally, on February 20, 1997, the Company issued 198,000shares of Oilex common stock, par value $0.001 per share, tothree individual investors.In January, 1997, the Board of Directors approved the acquisition from a related party of a 20% interest it owned in Oil RetrievalSystems, Inc. ("ORS") an Arizona corporation. ORS designs,engineers, produces and sells portable swabbing units to the oil and gas industry. ORS is a development stage company. Oilex issued 3,000,000 shares of common stock to the related party inexchange for its ownership of 1,205,420 common shares of ORS. In May, 1997, Funscape Corp. (formerly Imperial Energy Corp.), a Colorado corporation, acquired ORS. Funscape Corp. issued 2.5million shares of its common stock in exchange for all of the outstanding shares of ORS. Funscape Corp. has stockholders and management who are also stockholders and have management responsibilities in Oilex and ORS.
If you notice above, part of Oilex's 8/5/97 10SB12G, you will notice the sentence, "Funscape Corp. issued 2.5 million shares of its common stock in exchange for all of the outstanding shares of ORS." Why didn't the savvy Allen Burditt convert those shares of ORS into Funscape shares but leave them in certificate form for 13 months if they were really shares in ORS Texas? It was because the company acquired by Funscape was ORS a Texas Corporation not ORS an Arizona corporation. Clearly, further on in this NOTE 5, Mr. Burditt (the presumed author of this filing) is misrepresenting Oilex's ownership in ORS Arizona as Oilex ownership in ORS Texas when he states, "Funscape Corp. has stockholders and management who are also stockholders and have management responsibilities in Oilex and ORS". That statement is meant to deliberately mislead the reader into thinking that Oilex, because of incommon managements and shareholders with Funscape and ORS, now owned 20% of the newly issued shares of 2.5 million of the entity, Funscape Corp a Colorado corporation. But this was simply not the case as the June 1998 unwinding of Oilex ownership of ORS an Arizona corporation bears witness. This is consistent with what Solomon Yarmak has contended, that Mr. Burditt did, time and time again, misrepresent the facts.
Does anyone now doubt that Mr. Burditt if he could have at that time received 500,000 free trading shares in Funscape, later known as TANC, (especially since it was Mr. Burditt who brought Funscape to ORS Texas), that he would have passed up such a golden opportunity, especially when just 3 months later on August 11, 1997 TANC was trading at over $3.5 a share representing over $1.5 million to Oilex. It just does not make any sense at all. That is why we must conclude that the certifacte was for ORS Arizona and not ORS Texas.
In fact, Mr. Zouvas, CFO of Power Exploration has encouraged Mr. Yarmak to ask the transfer agent for Sawyer-Adecor to confirm receipt of said certificate and its acceptance of said certificate as authentic and as proof that the unwinding completed this June was in fact an unwinding of Oilex's ownership in ORS an Arizona corporation and not ORS a Texas corporation. As we all know the transfer of stock certificates always is accomplished through a 3rd party transfer agent to prevent manipulation and provide an unbiased record. If Mr. Yarmak wishes to broaden his theories of conspiracy to now include the transfer agent I am sure that the court might allow him to spin any tales he wishes but it is certain that this "tail" won't wag the dog.
It seems that Mr. Yarmak selectively anoints Mr. Burditt as either saint or sinner as it suits his whim. If it is too difficult for Mr. Yarmak to understand the complexity of corporate transactions then perhaps he should be advised by his lawyers not to speak so openly on the internet. Many times in the past month Mr. Yarmak has revealed a shocking lack of understanding of basic issues.
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