Thomson Kernaghan & Company Announces That LifeOne, Inc., Has Been Held
In Contempt By The New York Supreme Court
Business Wire - April 15, 1999 09:00
NEW YORK--(BUSINESS WIRE)--April 15, 1999--
Contempt Order Filed in Conjunction With The Company's Pending
Suit Against LifeOne For Failure To Deposit 4 Million Shares
Court Intends to Incarcerate LifeOne's CEO
Thomson Kernaghan & Company, Ltd., a Toronto-based brokerage firm,
announced today that in conjunction with its pending case against
LifeOne, Inc., formerly known as National Affiliated Corporation, (OTC
BB: LONE), the New York State Supreme Court has declared LifeOne in
contempt of Court. On March 16, 1999, New York Supreme Court Justice
Charles E. Ramos charged LifeOne in contempt for refusing to obey the
Court's Order on August 27, 1998 to deposit four million unrestricted
shares into an escrow account of Thomson Kernaghan & Company, Ltd.
LifeOne has again been ordered to place the shares in escrow and will
now be fined $10,000 by the Court for each day since August 27, 1998 in
conjunction with its previous failure to comply with the Court's Order.
The Company will also be fined $20,000 for every day it flouts the
Court's March 16, 1999 contempt Order. LifeOne will be responsible for
all attorneys' fees and expenses incurred by Thomson Kernaghan &
Company, Ltd. The payment of monetary fines and attorneys fees may be
delayed until the bankruptcy filing against LifeOne is dismissed.
Subsequently, in connection with ongoing arbitration in New York,
Thomson Kernaghan filed for emergency relief to prohibit LifeOne from
carrying out its recently announced plan to place all of its assets in
subsidiaries which would be spun off to existing shareholders. On April
12, 1999, New York Supreme Court Justice Ramos granted Thomson
Kernaghan's motion. Justice Ramos also stated that it was his intent to
order LifeOne's CEO, T. Brent Chapell, to be incarcerated until LifeOne
complied with the Court's March 16 Order to deposit four million shares.
CONTACT: The MWW Group
Robert Ferris
Tel. (201) 507-9500
rferris@mww.com
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