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To: Jeffrey S. Mitchell who wrote (3547)	8/19/2002 12:36:40 PM
From: Jeffrey S. Mitchell	Read Replies (1) \| Respond to of 12465

Re: 8/19/02 - [GECC] NW Arkansas Bus Jrnl: Transactions Inflate Value of Golf Assets Transactions Inflate Value of Golf Assets By Jeffrey Wood Arkansas Business - 8/19/02 Christmas Day — or the day after, depending on which official corporate document one consults — marked a supposed public auction that transferred assets from an entity called the Genesis Trust to Golf Entertainment Inc. It was the third in a series of transactions that resulted in Golf’s ownership of some television broadcasting equipment and “the right to purchase” a broadcast license from the Federal Communications Commission. Over the course of the transactions, the value of the assets more than tripled. Most of that is detailed by Golf, a penny-stock company based in Springdale, in a Dec. 31 filing with the Securities and Exchange Commission. But exactly what the assets consisted of and exactly how they wound up in the possession of Genesis is still fuzzy. Golf Entertainment executives declined to comment by not responding to requests for information and by cutting off an in-person interview after about one minute. The core of the assets apparently came from a nonprofit organization, Christians Incorporated for Christ Inc. of Bloomington, Calif. CIFC owned the equipment and broadcast license for low-power TV station KVAQ-LP, Channels 20/71, in Springdale. Kevin O’Neil Smith, CIFC’s executive vice president, is based in Branson, Mo. Smith said no assets of CIFC were assigned to the Genesis Trust “at auction or by any other means.” But Smith did say that a deal was struck in March 2001 with Multicom Group — a company consisting of Golf CEO Tim Brooker and Jim Bolt, Golf’s vice president and chief operating officer. CIFC agreed to allow Multicom to begin using its equipment and license in exchange for a payment of about $300,000. That payment, Smith said, is due at the end of this month, although that contradicts Golf filings with the SEC that say it’s not due until 2003. Golf began leasing 24-hour-per-day air time from CIFC in December for $1,000 per month. At some point before December, Bolt and Brooker bought the old Golf Entertainment company shell from former CEO Ronald G. Farrell. All of the details of the payment made to Farrell were not disclosed, but in an unusual lawsuit filed by Genesis against Golf (see related story, Page 1) it was revealed that Genesis agreed to pay Farrell $150,000 for a convertible debenture involving 1.375 million shares. At some point, the TV broadcast assets loaned to Multicom by CIFC were apparently transferred or sold to the Genesis Trust before the trust then sold them to the penny stock company. But there is no record of that step in the relay of the property. Golf’s bid at auction was $1 million, paid to Genesis as 3.25 million shares of stock, and the assets were later booked at $1.028 million in Golf’s financials filed with the SEC. Charles Rusk, senior trustee of the Genesis Trust, said that the auction of assets to Golf was “a paper transaction only.” When asked what the assets consisted of, and if Genesis actually had possession of any TV equipment, Rusk became visibly upset. “I have no idea,” Rusk said. “That has nothing to do with me.” Smith said that if Brooker and Bolt are unable to make their August payment, he will consider selling the station to another buyer. © 2002 Northwest Arkansas Business Journal arkansasbusiness.com