BS Neswire FEb.19,1999
CEO Rumberger described as a "manager" though he is listed in corporate documents as president of the company (WRLB) has been detained and charged with money laundering, mail fraud, and securities fraud. In a brief appearance in court, Rumberger displayed little of the flash that has previously characterized his extravagant lifestyle. Rumberger told Federal magistrate Donald Thompson that his funds were limited to a couple hundred dollars and that he could not afford to pay for an attorney. According to an affidavit WRLB holding made an offering of $5 million worth of unregistered stock in the company. But according to the affidavit only about $10 of the money raised would be contributed to company business with the remaining 99% of the proceeds going toward "beer, girls, and parties" it was learned in court documents. The affidavit said investors were misled by company agents posing as non-biased posters on an internet message board, claiming a 450% rate of return. El Bee, who was held without bond pending the hearing on Thursday is accused of helping Rumberger launder the profits, based on interviews with former employees of the company and victims of the alleged scam. Rumberger, who was in charge of day-to-day operations at WRLB, would issue company checks to various individuals and have those individuals cash the checks and then turn the proceeds over to him immediately prior to any planned company recreation (party). He in turn would turn over the cash to Dusty who would hand it to Lance who would hand it back to Rumberger, leaving no trace of who had what, according to court documents. Outside of the courtroom on Thursday, Rumberger who was described as "an economic danger to the community," appeared disheveled and incoherent. At one point CEO Rumberger was seen pulling up the plants in the courthouse atrium and then stomping on them in a bizarre and paranoid manner. According to court documents the scheme started to unravel following an undercover investigation in which a security official posing as a potential investor discovered that WRLB insiders had bought floorless convertibles and were dragging up and down the streets outside of his suburban townhome while in a drunken stupor. Further investigations involving subpoenaed e-mails from company insiders revealed a convoluted plot to mislead the investment community in a blatant attempt to acquire free beer and wild sexual encounters in return for what court records deemed highly overvalued company stock. |
