** Open letter to ABFG Management **
I call on ABFG management to respond to these very serious allegations on their live webcast today -- directly, not through a third party.
1. The Malagasy government says ABFG "does not have any perimeter in Madagascar, directly or indirectly". Zippo. Nada. Nothing. Here's the full statement:
"World Gem Corporation - The Ministry (of Energy & Mines) decree No. 1945/99 dated 24 February 1999, decreed that 34 perimeters in the name of World Gem Corporation has been cancelled from date hereof.
Saowani Development - does not have any perimeter registered in their name. Saowani used to have a joint venture with a company called Madagascar Primary Sector (MAPS) and MAPS had a joint venture with another company. The Minister has never approved any of the ventures.
Furthermore, MAPS perimeters were cancelled by the Ministry a few months ago, thus MAPS does not own any perimeters in Madagascar.
In conclusion, ABFG does not have any perimeter in Madagascar, directly or indirectly."
--> This can be verified by calling the Minister of Energy & Mines at 011-261-2022-25515. Does ABFG contend that the Malagasy government is lying? Is decree No. 1945/99 fraudulent?
2. On 6/23/98, ABFG issued a press release (http://www.abfg.com/home/p_r2.htm) saying ABFG issued three million shares (pre split) for Saowani Developments s.a.r.l. A Stockwatch article on 2/27/98 by Brent Mudry indicates this transaction had been attempted once before:
In mid-July, Trump trumpeted a proposed reverse takeover of Saowani Development, a company based in the Democratic Republic of Madagascar. Mr Sklar was named a director of Trump, along with a man named Dror Morodov. In the proposed deal, Mr Morodov and Ms Saowani Chuaiphan planned to sell Saowani Development for three million shares of Trump.
This clearly shows Morodov, a director of ABFG, is an owner of Saowani. My records indicate the paperwork is in Chuaiphan's name, and that Chuaiphan is or was allegedly Morodov's Thai girlfriend. Either way, this completed transaction would then be considered "related-party".
--> As the Malagasy government has clearly indicated the Saowani claim is now totally worthless, are any steps being taken to reclaim the six million (post split) shares given to ABFG Director Morodov (now worth appox. $7,500,000)? Have many have already been sold?
3. On 7/10/98, ABFG issued a press release (http://www.abfg.com/p_r.htm) saying that "the Board of Directors of American Benefits Group, Inc. (ABFG) approved the proposed acquisition of 70% of the issued and outstanding shares of World Gems Corporation Import Export s.a.r.l., a Malagasy Company (WGC). WGC is the holder of 34 mining perimeters all in the Republic of Madagascar."
--> As the Malagasy government has clearly indicated these claims are now worthless, has ABFG taken any steps to reclaim the 1,000,000 shares issued for it? If the $100,000 was ever paid, is ABFG seeking a refund? How many shares have already been sold?
4. If ABFG claims they own "other" mining properties in Madagascar, where -- exactly -- are they?
--> If direct, what is the name of the mine, the town, the name of the manager, and the GPS coordinates? If indirect, same questions plus what the arrangement is and who also owns related parties.
5. On 3/29/99, in #reply-8592032, Dan Glover quotes Kelly Kellner as admitting the web site photos were doctored:
In regards to the minning site, I varified that the ABFG logos
were superimposed over the photos, not to deceive anyone, but
because the equipment they were using were rentals, and they asked
the rental company if they could display thier own logo. BTW,
last week, two fulled loaded F180s deposited minning equipment, camping gear, supplies ect. at the site in Madagasgar, in an effort
to step up minning operations there. Mr Kellner is setting up
a time for me and Kowboy to have a conference call with the manager
at the site, hopefully sometime tomarrow.
--> a) What was the name of the rental company you asked for permission? My records indicate the company that owned the wash plant was Andover and never gave you permission; b) Where was the mining equipment delivered to exactly, and what was it. My records indicate you own no mining sites; c) What is the name of the manager on the site, and d) Why was the conference call never done?
6. There used to be photos on your web site of people working in "your" mines. My records show these pictures were taken more than a year and a half ago from a geologic study done by Ronald Stokes for a Riosun prospectus.
--> Can you verify or dispute this and explain why those pictures have since been removed from your site?
7. Alberta labour court records show that ABFG has been sued by a Mr. Michael Robson over ABFG's failure to pay fees for consulting engineering work. What is the status of this lawsuit?
8. According to public records kept by your transfer agent, Florida Atlantic Stock Transfer (954-726-4954), the total number of shares outstanding for ABFG is 32,549,000. You web site says there are 29,900,000 shares out: abfg.com, which is my understanding was accurate until very recently.
--> Where did the 2,649,000 additional shares come from?
9. A poster by the name of Brett1980 on the Raging Bull web site has been attributing information to Kelly Kellner that, if true, must be considered blatantly false and misleading.
For example, on April 10, Brett1980 tried to claim the Morodov and Sklar at ABFG were not the same ones sanctioned by the VSE:
Kelly assured me that in no way are these individuals associated with ABFG and that the company is taking action to stop and fraudulent attacks against the company. There may be some Morodov or Sklar that has been terrible in business; however, they are not at ABFG (according to Kelly). ragingbull.com
--> Does Kellner acknowledge making those claims or does he contend Brett1980 fabricated them?
10. On Monday Brett1980 further stated "I have heard that an ABFG representative will be at the White House this Wednesday, April 14. My understanding is that they are going to meet with Clinton and Gore." (http://www.ragingbull.com/mboard/boards.pl?read=1313+board=ABFG) On Tuesday he confirms that his source is Kelly Kellner, Director of IR for ABFG. We also learn that the representative is director Gerald Sklar: "Kelly also told me that Sklar from ABFG would be at the White House tomorrow night for an event at 8pm and would be doing something with Clinton and Gore." (http://www.ragingbull.com/mboard/boards.pl?read=1614+board=ABFG)
--> Does Kellner acknowledge making those claims or does he contend Brett1980 fabricated them?
11. A poster by the name of Kowboy wrote "ABFG is expecting an endorsement from Al Gore after tonight's dinner and conference. This is due to the fact that all other mining companies have been kicked out of Madagascar except ABFG and they have now been granted ALL rights to mining within the country." (#reply-8922432)
--> a) Does Kellner acknowledge making the claim that ABFG was expecting an endorsement from Al Gore after a dinner conference on Wednesday, April 14, or did Kowboy fabricate that?; b) Did Kellner say he expects ABFG will get an endorsement from Al Gore in the near future for any reason, and, if so, for what reason?; c) Does Kellner acknowledge telling Kowboy that all other mining companies have been kicked out of Madagascar except ABFG and that ABFG have now been granted all mining rights there, or did Kowboy fabricate that?
12. Two of three of ABFG's international offices have other occupants. The Florida "suite" seems to be shared with another company, who, if you call, answers the phone as "Campus Management", not ABFG. As for the New York "office", the message says you've reached GG Hart, an executive search firm."
--> a) Which ABFG director works in the Florida office? From calling, it appears to be just rented space; b) Why does the person at GG Hart claim absolutely no relationship to ABFG?
13. An individual under the alias "Kowboy" appears to have doubts Mr. Gerald Sklar has ever been found guilty of a securities violation. Could you please set the record straight?
For example, on 9/19/89, Intercontinental Ventures Ltd issued a press release entitled "Securities commission releases Sklar decision" This press release very clearly states that "Mr D. M. Thompson of the BC securities commission reports the BC securities commission has released its decision in the matter of Gerald Emile Sklar. Sklar was a director and officer of Intercontinental and Max Minerals."
"... the commission found the news releases to be false and misleading. Since Sklar had directed their release without taking adequate precautions to ensure they were true, the commission determined that he did not exercise the care, diligence and skill of a reasonably prudent person. Later, after he knew the information was false, he failed to act honestly..."
Upon being found guilty: "The commission found Sklar's behaviour to be prejudicial to the public interest and ordered the removal of his trading exemptions for three years. Sklar is also prohibited from acting as a director or officer of a public company for three years and will be required to pay costs of the hearing.
Source: wwwf.canada-stockwatch.com
--> Does ABFG deny such a decision was rendered by the BCSC for securities violations against Gerald E. Sklar?
14. In March of '97, another of Sklar's companies, Riosun, was halted by the VSE. On March 27, Riosun issued a press release saying: "It will not allow the unacceptable individuals identified by the VSE to interfere or be involved with the company, directly or indirectly and is to provide the undertakings to this effect to the VSE". According to the aforementioned Stockwatch article: "This pair of undesirables, whose identities were never officially disclosed, were Lucky Janda and Gerald Sklar."
In talking with the VSE, I was told that Gerald E. Sklar is still considered an "undesirable individual" and as such may not be involved directly or indirectly with any VSE regulated company. It is my understanding that this status is limited only to a very select few individuals who have "earned" this distinction.
--> a) Does Gerald Sklar contend he can indeed now be a director of a VSE regulated company? b) If so, is he saying the VSE lied to me? c) If not, does he have an explanation for this?
15. According to a published report (see #reply-8992910), the Alberta Corporate Registry shows that Gerald E. Sklar and Thomas P. Devlin are principals of a company called Stock Watch, Inc. "Mr Devlin is named on company documents as Bre-X's manager of special projects... Mr Devlin requested that the trades -- involving 487,500 shares [of Interlock Consolidated Enterprises Inc
ILSS] -- be jitneyed through other brokerage firms so the sale of the Interlock shares would appear to be widespread... Mr Sklar, who thinks he is quite desirable, has been in trouble in BC for issuing misleading press releases. He did not explain how the long defunct company happened to be selling hundreds of thousands of Interlock shares in 1994."
Riosun's phone number prior to its trading halt for being involved with Gerald Sklar, whom the VSE labled as an "unacceptable individual", was (403) 777-1800, and the office was at 734 7 Ave SW. The Calgary phone book last year listed Stock Watch Inc. at that same address and phone number, and now American Benefits Group is listed in the Calgary phone book under that number and address. So, clearly, we're talking about the same Gerald Sklar.
--> a) Is it true that Devlin and Sklar are still business partners? b) A lawsuit and countersuit appeared to have been filed about this; what is the status or what was the outcome of this lawsuit?
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