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Biotech / Medical : SABRATEK CORP (SBTK) -- Ignore unavailable to you. Want to Upgrade?

To: Swanny who wrote (114)	6/15/1999 9:28:00 AM
From: JPE	Respond to of 487

Going back to post # 40 on this thread, wherein Pluvia is soliciting for people interested in suing the company,etc. might give one an insight into his motives. This was in Nov.1998.

To: Swanny who wrote (114)	6/15/1999 11:36:00 AM
From: Pluvia	Read Replies (1) \| Respond to of 487

SBTK ACCOUNTING FRAUD REPORT - PREVIEW Following you will find a short excerpt from Information that will be included in the full SBTK ACCOUNTING FRAUD report which will follow in the next 48 hours... This is just the tip of the iceberg, the full report includes a GREAT deal of additional detailed information concerning; Sabratek's Fictitious Sales, Inventory Parking, Channel Stuffing and Other Improper Revenue-Inflating Activities. We believe this information will cause SBTK's Auditor - KPMG - to pull their opinion on the 1998 10k, which will likely cause a lengthy trading halt in the shares of SBTK. For these reasons we strongly suggest shareholder sell their stock in SBTK and move capital to safer havens... You may recall when we uncovered accounting fraud on PLSIA, the shares were halted for approximately 6 months when their auditor pulled their Opinion on the previous years 10K. We expect a similar situation with SBTK. ****************************** ... Sabratek also engaged in accounting machinations to manipulate its reported inventory. (a) For example, at the end of the third quarter of 1998, in an apparent effort to deceive certain analysts who had expressed concerns relating to Sabratek's high inventory levels, senior Sabratek management implemented a scheme to reduce Sabratek's reported inventory of raw materials and component parts, (such as motors and frames), by temporarily shipping these materials back to its vendors. To induce its vendors to participate in this scheme, Sabratek agreed to pay the costs of shipping these materials both ways (i.e. it paid to ship the goods back to the vendors just prior to the close of the quarter, and it paid for the cost of shipping them back to Sabratek immediately after the quarter had ended). To evade detection of this blatant accounting manipulation, the “returns” of these component parts were made without the standard paperwork and documents itemizing the contents of the returns; however, to prevent the vendor from cheating the Company by returning fewer goods than had been “returned,” Sabratek sealed the containers of “returned” products with special tape to prevent tampering and to assure that the identical product would be coming back after the quarter ended and the goods were shipped back. Pursuant to this multi-million dollar inventory manipulation scheme, at the instigation of Vincent Capponi (Sabratek's Chief Operating Officer), Sabratek vendor Bull Electronics was persuaded to temporarily take back approximately $1 million of materials, and Scientific Molding Corporating (of Someret, Wisconsin) was persuaded to temporarily take back 30 or 40 boxes of component parts worth $200,000 to $300,000. Other vendors who were persuaded to take back comparable amounts of inventory included PTI (of Clinton Township, Michigan) and Schultes Precision Manufacturing (of Buffalo Grove, Illinois). ****************************

To: Swanny who wrote (114)	6/15/1999 12:49:00 PM
From: Pluvia	Respond to of 487

Fraud Is Not Good Business.. <<I think that you should consider Mr. Capponi a good businessman for talking Bull and Scientific Molding into taking back excess inventory, rather than consider this to be part of a great plot to defraud>> There is a big difference between returning unneeded inventory and using a scheme to temporarily return inventory at the end of a financial quarter, to produce fraudulent financial statements which are then used to bolster a stock price. Particularly when you break a whole pile of GAAP (accounting standards), in the process. If you don't understand this difference, I suggest you leave your investing to others. Cheers St@v@

To: Swanny who wrote (114)	6/15/1999 2:56:00 PM
From: Pluvia	Read Replies (1) \| Respond to of 487

FRAUD REPORT PREVIEW #2 Will be released at 11:30 EST Tomorrow (Wednesday 6/16/1999)...

To: Swanny who wrote (114)	6/15/1999 4:22:00 PM
From: Pluvia	Read Replies (2) \| Respond to of 487

The Alleged Accounting Fraud At SBTK Is Alarming. post.messages.yahoo.com We Believe this fraud is MORE than enough to cause the SBTK Auditor - KPMG - to rescind their Opinion Letter on their audit of the 1998 SBTK Annual report. Should that occur, the SBTK financials would not be current and the NASD would likely HALT trading in SBTK shares. See PLSIA history for an example of this action. BUYER BEWARE. This Stock should be sold - move money to a safe haven. Stay away from companies who have a history of fraudulent activities. Good Luck $t@ve