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Technology Stocks : IDT *(idtc) following this new issue?* -- Ignore unavailable to you. Want to Upgrade?

To: mark garner who wrote (11159)	7/11/1999 3:03:00 PM
From: vinod Khurana	Read Replies (3) \| Respond to of 30916

Interesting article from THE STREET.COM and one that could prove to be disasterous for the company and its shareholders if found to be true. But first my opinion: While no investor likes to hear bad news about any company they have invested in, one MUST at ALL times keep an open mind to information coming from all sources (and especially popular Financial sources i.e CBS, Wall street journal, Barrons, CNNfN, Street.com etc.. )...whether good or bad. If Herb Greenberg is right and IDTC did loan out $25 million to a one man company that refuses to answer such basic questions as to how many people it employs and reasons for the loan etc..., then we could have a management team at IDTC that is quietly siphoning of shareholders money and what could amount to theft of corporate assets. What we need is a response from IDTC and to which my surprise they have not yet responded back denying any wrongdoing.....proving only that they are a shameful bunch of B***** "giving" money to a single entity that is un-responsible in business practices. IDTC management in my opinion is up to no good. I believe that the $25 million was used not to purchase a stake in a one man company but a payment of some sort that Simon Lermer will eventually split with IDTC management. IDTC management should be aware that stealing corporate assets that rightfully belong to shareholders to satify their own greed is a felony under U.S law and that could result in fines and prisonment and potential death of a company. Folks, the bottom line is that something fishy is happening at IDTC. IDTC is in trouble and management knows it. Management is siphoning of money the best way it knows how and very secretly before they announce the bad news to shareholders...that Lermer Overseas telecom is unable to pay back the loan. Read on (from Herbs article)..... Finally talked yesterday with Simon Lermer, the sole shareholder in Lermer Overseas Telecommunications, which as this column pointed out Wednesday failed to technically exist in New York before it received a $25 million loan from IDT (IDTC:Nasdaq). Also on the call were Michael Partem, an attorney for Lermer Overseas, and Lermer CEO Nissan Crespi. Partem first wanted to make it clear that contrary to Thursday morning's article, they did return my call. (Indeed he did: At 7:14 p.m. Wednesday night -- after the column was written and after I had left the office.) Partem also wanted to emphasize that contrary to this column's suggestion, "Lermer overseas does indeed exist." He added (the obvious) that it's a private company and as such has a policy of nondisclosure. He said Lermer Overseas does have a contract with IDT, but that it includes a confidentiality agreement, which means it's not at liberty to disclose the details of its relationship with IDT. He added that Lermer "is expanding from self-generated income." What about the $25 million loan? "There is a loan," he said, "and it's being paid off." What was the loan for? "That's not a matter of public record," Lermer said. Why did Lermer Overseas allow its incorporation in New York to lapse two years ago by not paying its franchise tax? "The franchise tax situation with the State of New York is an unfortunate oversight," Partem said. "It is being acted on; it is being taken care of." Lermer added: "Taxwise, I leave that to my legal staff, and they didn't do a good job on that. They messed up." As this column reported, Partem says Lermer has received an ultimatum from IDT to either reincorporate in New York or have its loan immediately called. "However," he added, "from what I understand, reinstatement is fairly routine matter and will take place automatically when we file and pay our delinquent fees." One other thing, Partem said: "Nobody from IDT is an officer or executive of Lermer," including Howard Balter, the CEO of IDT's soon-to-be-public Net2Phone subsidiary. (Balter -- actually someone named Howard Bolter, with an "o" -- was listed as Lermer's president on a recent Dun & Bradstreet report.) How many employees work for Lermer? "That's privileged information," Lermer said. Does he have an office at IDT, given that his name is included in the company's dial-by-name directory? "No." How about Jonas Publishing, whose phone number is one digit away from IDT's? Lermer didn't answer directly other than to say, "I am a self-employed businessman and I may use their facilities." IDT President James Courter actually told me that Lermer had "a desk" at Jonas. Go figure. Outta control This column's Hostile React-O-Meter has never spun this much out of control. (Of course, the posting of my email address by some IDT-iot added to the fury.) Historically, the faster the react-o-meter spins and the greater the attempt at intimidation, the more cultish a company's following and the more something is amiss. Will that be the case this time? Hard to say, but you gotta see what some of these IDT-iots -- most of whom apparently have never read this column -- are saying. A real eye-opener. Some of my favorites (not to mention the ones posted on the site Thursday) include this one, from Harry Kranick, who writes: "I hope you sleep well tonight, knowing that you have destroyed my children's education fund. I will not forget this!" From Avi Gross: "You certainly picked on the wrong target and made many enemies. I pity you." And from John Toth: "I hope the fn SEC fries your short a. No articles on IDT for six months, then two weeks before the IPO -- this s**t. How come no reputable news agency went along with this? How much were you paid to do this?" Al Diesz adds: "Without a doubt you are a scuzzwad and I now understand why Cramer encourages you to wear that coat of slime when he picks a company to crucify! Water always seeks its own level and now I understand your association with 'yellow journalism.' By the way, I hope you get your 'more attractive' end burned shorting." But my favorite is from Sukhu George, who writes: "You are a SOB and I hope you go to hell for your short interest in a company and trying to bring it down by playing dirty tricks. I will be praying very hard that bad things will happen to you. Bad karma is very bad." Thanks, I'll remember that. And I'll say it again, for the umpteenth time. I don't hold positions in individual stocks, other than that of TheStreet.com Inc. (TSCM:Nasdaq), publisher of this Web site. Which means derogatory statements to the contrary reek of libel. Suit yourself.