From AOL(CALFTALK) Subj: Re:vital data from ongoing lawsuits (first half)
Date: 99-01-13 03:07:52 EST
From: califtalk@aol.com (CALIFTALK)
Subj: Re: Discovery answers TO REQUEST FOR ADMISSIONS
Yarmak has stated in a posted message on the internet that in his opinion Burditt made false and misleading statements and has taken property that does not belong to him.
. Yarmak further objects that the request violates the attorney client privilege and work product doctrine. Without waiving said objections, Yarmak in an attempt to reasonably respond submits the following: Oilex's bank records reveal that between July 18, 1997 and February 23, 1998, $2,105,600 proceeds of debenture sales were deposited in its account. During the period that funds were received by Oilex, Burditt caused the majority of those funds
to be moved to his company, Phoenix Reserves with no benefit to Oilex. These transfers were not approved by the Board of Directors or officers of Oilex and Oilex has no records indicating any basis for transferring said funds to Phoenix Reserves.
Burditt told Yarmak and others that there was a large short position in Oilex and the market makers were shorting Oilex. These statements were confirmed by Oilex's attorney, Warren Soloski. These statements were made in response to inquiries by Yarmak and others to explain the unusually large volumes of Oilex stock being sold which had the effect of depressing the stock price during the time in which Oilex was releasing positive news releases.
Later Yarmak discovered that there was no short position in Oilex stock and in fact Burditt, Phoenix Reserves and others had been selling large blocks of Oilex stock, through Cancord a Canadian broker, which they acquired from Oilex without paying Oilex adequate consideration. Furthermore, the sales were not reported to the Securities and Exchange Commission as required since Burditt and Phoenix Reserves were part of an affiliate group owning more
than ten percent (10%) of Oilex's issued and outstanding stock.
Oliver Timmins, the prior president of Oilex and an attorney licensed in Texas, issued letters instructing Oilex's transfer agent to accept the Cancord transfers stating that Burditt and Phoenix Reserves were not affiliates and the stock was unrestricted.
In or about July 1998, Burditt and Omar Ahmed removed and/or destroyed computer records and documents of Oilex which support the claims in the litigation.
Clifford Budd admitted the statements in Exhibit "A" to Yarmak.
Yarmak further objects that the request violates the attorney client privilege and work product doctrine. Without waiving said objections, Yarmak in an attempt to reasonably respond submits the following: Yarmak incorporates his response to interrogatory 24 as if stated in full herein. The board of directors of Oilex, Richard Clark, Deborah Sacrey, Oliver Timmins, Cynthia Timmins, has confirmed that they did not authorize 1) Burditt's transfer of
stock to himself and Phoenix Reserves; 2) Burditt's publication of alleged new releases to various business reporting agencies, news agencies, etc.; 3) Burditt giving false and misleading information to Oilex's auditors; 4) causing Oilex to purchase $200,000 of Funscope ("Titan") restricted stock at inflated prices without disclosing that he was the seller of the stock; 5) caused Oilex to pay to drill a well on BT Energy's leased property without
disclosing that BT Energy is a alter ego of Timmins and Burditt; 6) using BT Energy to defraud Oilex by acting as a middelman in Oilex's purchases with undisclosed profits accruing to BT Energy.
Burditt had issued news releases indicating that Oilex would be merged into or taken over by Caye Chapel and that Caye Chapel had substantial assets which would benefit the Oilex shareholders. In fact, Caye Chapel was an empty shell company controlled by Burditt and his alter ego Churchill.
In July 1998, Burditt improperly caused Oilex to issue 2,550,000 shares to Churchill Resources (his alias) and the other board of directors members. Upon Yarmak confronting these parties, the board of directors at a formal board of directors meeting on July 21, 1998 at Ft. Worth Texas, rescinded the stock issuance and confirmed that the purported June 1998 meeting authorizing issuance of the shares in fact did not occur. All shares have been
returned and cancelled with the exception of the 1,000,000 shares held by Burditt in Churchill Resources.
Documents 35. Yarmak objects that the request is overbroad, vague and ambiguous and therefore unintelligible as it does not relate to specific facts. Yarmak further objects that the request is burdensome and oppressive as Burditt has the bank statements, broker statements, SEC reports and corporate minutes and those documents will not be re-produced. Oilex checks bouncing are based on bank statement and employees statements to Yarmak.
Additionally, Omar was on the web page for Caye Chapel and was a signatory for H. Patten Holdings
Yarmak further objects that the request is burdensome and oppressive as Burditt has the bank statements, broker statements, SEC reports and corporate minutes and all documents for Caye Chapel, Churchill Resources and Phoenix Reserves and those documents will not be re-produced. Yarmak further objects that the request violates the attorney client privilege and work product doctrine.
Burditt's 1996 tax return shows modest income yet his lifestyle included occupying a $550,000+ residence, a $160,000+ yacht, numerous automobiles, $100,000+ travel and entertainment expenses, expensive wedding and honeymoon vacation, expensive jewelry, etc. M. Patten Holdings in the Bahamas held title to many of these assets was really a alter ego of Burditt. This is determined by the authority of Phoenix Reserves to use M. Patten Holdings to hold
its assets and Burditt's instructions to Omar and others with respect to the activities of M. Patten Holdings. The money movements are the series of transfers from Oilex to Burditt's companies M. Patten Holdings, Phoenix Reserves, Caye Chapel, Churchill Resources, Wainee, SA, BT Energy, including transfers to and from Canada. In addition, the Internal Revenue Service has filed tax liens against Burditt.
Yarmak further objects that the request is burdensome and oppressive as Burditt has the bank statements, tax returns for himself and his alter egos, broker statements, SEC reports and corporate minutes and all documents for Caye Chapel, Churchill Resources and Phoenix Reserves and those documents will not be re-produced. Yarmak further objects that the request violates the attorney client privilege and work product doctrine. |
