Starnet sued by another licensee who claims their software had a virus and Starnet refused to fix it!
Gambling Magazine has uncovered yet more damaging material of interest,
relating to Starnet Communications International, Inc. (SNMM).
Earlier this year on June 10, 1999 a Writ of Summons was filed in the Supreme Court of British Columbia, Vancouver Registry No. C992955. The Writ of Summons (ELIZABETH THE SECOND, by the Grace of God, of the United Kingdom, Canada and Her other Realms and Territories, Queen, Head of the Commonwealth, Defender of the faith) gives the name and address of the Plaintiff and the name and address of the Defendants (Starnet Communications Canada, Inc., Starnet Communications International, Inc., and Softec Systems Caribbean, Inc.).
The Writ of Summons goes on in the usual way:
TAKE NOTICE that this action has been commenced against you by the Plaintiff for the claims set out in this Writ....
JUDGMENT MAY BE TAKEN AGAINST YOU IF
(a) YOU FAIL to file the appearance within the Time for Appearance...
(b) YOU FAIL to file the Statement of Defence within the Time for Defence...
(The Plaintiff's solicitors are listed as Lindsay Kenny, Barristers and Solicitors, 17th Floor, 700 West Pender Street, Vancouver, B.C.)
The Statement of Claim (abridged here) states inter alia that:
7. On or about August 6th, 1998 the Plaintiff entered into a software license agreement with the defendants. Persuant to the agreement, the Defendants would provide the Plaintiff with a license to the Softec internet casino software for a one year period, which license agreement would be automatically renewed for one year terms indefinitely...
8. It was a term of the license agreement, express or implied, that the Defendants would make the software available to the Plaintiff. It was a further term of the agreement, express or implied, that the software provided by the Defendants to the Plaintiffs would be reasonably fit for the purpose for which it would be used and (be) free of computer viruses.
9. Upon entering into the license agreement aforesaid, the Plaintiff used the software and there was a virus in it. As such the Plaintiff could not make use of the software and its use was discontinued.
Many other paragraphs follow. The Plaintiff (a Vancouver businessman) asked that the software virus be cured, but Starnet either refused or failed to do so. The Plaintiff had apparently conducted "much work, service and expertise" for Starnet, and had also been promised 20,000 options to purchase Starnet's shares. Starnet had refused or neglected to provide the Vancouver businessman with these options, which were exercisable at $0.73 per share.
As a result, the Plaintiff (whose name is only withheld here for reasons of privacy) is
claiming General damages, Special damages, Interest and Costs, as well as "Such further and other relief as this Honourable Court may deem just."
NB: Place for Trial is fixed as: Vancouver, British Columbia.
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According to a reliable source in Nevada, the Department of Justice is after Starnet, and the SEC is investigating them.
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Starnet also sued by ex president who claims the company owes him 250.000 shares!
The case is already before the Court in Vancouver, we will give you more details in a moment!
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More trouble for Starnet
Right now, Starnet is embroiled in another lawsuit, brought by Home Gambling Network. Home Gambling is suing the company for infringing on its method patent. The patented technology enables Internet gaming from a remote location in a live casino game, involving on-line debiting and the crediting of wins and losses directly to a player's financial institution.
The discovery portion of the proceedings is set to begin next week, and Starnet will be forced to open its books. Deedee Molnick, president of Home Gambling, says that Starnet will have to reveal a number of pieces of information, such as a complete list of its licensees, where wagering is taking place and where its gamblers are located. (There is US legislation that makes online gambling illegal in its borders.)
Home Gambling cannot put an exact price on the damages it is seeking while the case is in court, but according to Mel Molnick, the company's secretary treasurer, a rough estimate for the federal court's award in damages would be between $150 and $200 million.
-- StockHouse News Desk, 27 July 1999 stockhouse.com
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Interesting question for Claude Levy and Las Vegas Casino Inc.
Did you ever buy or sell shares in Starnet?
"I have never, ever, directly or indirectly, bought or sold a single share in
Starnet (SNMM) either personally or through any company, or third party,
and I challenge anyone to prove the opposite"
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LAS VEGAS CASINO, INC. ANNOUNCES WARNING TO INVESTORS
Vancouver, British Columbia, July 28 / -- Las Vegas Casino, Inc. announced that Starnet International Communications (OTC Bulletin Board: SNMM) (Berlin: SNM) "(Starnet") has underway a private placement offer in the US which is believed may involve an attempt to raise substantial funds believed to be in excess of $ 25 million.
According to Las Vegas Casino, Inc., the figures and projections being used for this placement offer are misleading; incorrect figures about Las Vegas Casino's revenue status are being used "in order to impress investors."
Las Vegas Casino, Inc. wishes to state that permission to use its name to raise funds in such a manner has never been granted, and even less so for the publication of misleading information to the public.
Las Vegas Casino, Inc. wishes therefore to warn potential investors of these facts and to advise that Las Vegas Casino, Inc. is not in any way associated with any such offer or placement. Furthermore, Las Vegas Casino, Inc. has requested the removal of its name from any such offer.
For more information about Las Vegas Casino, Inc. visit the company's Web site at lasvegascasino.com
or e-mail: legal@LasVegasCasino.com
SOURCE: Las Vegas Casino, Inc.
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LAS VEGAS CASINO, INC. ANNOUNCES FURTHER CLARIFICATION WITH RESPECT TO ARTICLE REFERENCE USED BY STARNET COMMUNICATIONS INTERNATIONAL; COMPANIES INVOLVED SHUT DOWN BY POLICE IN THREE COUNTRIES, MANAGEMENT ARRESTED
Vancouver, British Columbia, July 28 / -- Las Vegas Casino, Inc. would like to confirm that an article reference in a press release from Starnet Communications International, Inc. (OTC-BB: "SNMM") ("Starnet"), issued July 27 (http://www.rgtonline.com/newspage/artlisting.cfm/2733), did not make clear that HLI was also the name used as a previous reference by Starnet in a misleading and fraudulent e-mail sent to thousands of clients by Starnet.
HLI was later to be shut down by police in three countries: Vancouver, Canada; California; and Australia. The management were arrested and their servers seized. This group of companies, comprised of Funscape.com, CasinoSoft.com the game developer, Handa Lopez, Inc. (HLI) acting as the e-cash company, World Wide Multimedia, and Scylinx Corporation were involved in such massive frauds to the extent that the operators of the 29 online casinos had no option but to terminate all agreements and/or contracts with them.
This and other related information can be read at the following sites:
gamblingmagazine.com
gamblingmagazine.com
gamblingmagazine.com
Both HLI and Starnet are companies that never let their licensees handle the financial transactions associated with online casinos, as they control all such operations. In the case of HLI, the online casino operators never had access to funds coming in, so it is evidently hypocritical in the extreme to expect the casino operators to be responsible for account balances.
Las Vegas Casino, Inc. is also owed a substantial amount of money, for funds collected on behalf of Las Vegas Casino through Secure Bank and the Bank of Nevis, and possibly other banks that Las Vegas Casino is unaware of. Only EFS Caribbean (Starnet) handled the funds for Las Vegas Casino, Inc, and it is the former which is responsible for account balances, as Las Vegas Casino never had access to their systems.
All Las Vegas Casino clients should contact Jack Carley at Starnet 1 (604) 685 7619
SOURCE: Las Vegas Casino, Inc.
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