Don't mess with Thompson Kernaghan is the message in the following news release. All of this concerns CDs. This poor CEO is paying for trying to defy TK.
Business Wire - April 15, 1999 09:00
> 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 |
