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Pastimes : Investment Chat Board Lawsuits -- Ignore unavailable to you. Want to Upgrade?

To: heronwater who wrote (5562)	1/15/2004 7:07:41 PM
From: Jeffrey S. Mitchell	Read Replies (3) \| Respond to of 12465

Note: The following story on Michael Zwebner comes from a post on RB. Based on errors, I am assuming the article was transcribed from paper. Until such time as I have a link to confirm its authentication, reader be warned. ----- From the January 5, 1997 “The Mail on Sunday” News: BOSS IN £15M DEAL MADE THREATS TO RIVALS Mafia link of the bankrupt about to make millions from Lottery deal. Michael Zwebner, founder of Cardcall (UK) won a contract to distribute five million National Lottery branded phone cards, Camelot's biggest marketing deal to date. Astonishingly, Camelot revealed it knew he was an un-discharged bankrupt and said this was "no reason to rule out doing business with and individual." But last night Camelot said it would launch an investigation and asked The Mail on Sunday for a full dossier of evidence about Mr. Zwebner's business affairs. The disclosures follow rows over excessive profits and directors bonuses at Camelot. Zwebner, 44, has massive debts on both sides of the Atlantic and has been accused of threatening business rivals with violence. His former girlfriend Gia, who died from a Cocaine overdose following a row with him, was the daughter of John "Sonny" Franzese a former boss of the Colombo crime family. Her brother Michael, often called the "Yuppie Don" has admitted being behind tax fraud, loan sharking, illegal gambling, racketeering and extortion as a leading member of the mob. Zwebner's UK company Cardcall buys telephone time from British Telecom, Mercury and other line operators and then sells phonecards through Lottery outlets. The disabled British born businessman, a polio victim, fled Britain 6 years ago leaving his wife behind after the collapse of his Land Development Corporation with debts between £600,000 and £1.5 million. The firm was behind a scheme to build a £18 million golden city outside Oldham including offices, hotel and conference center and creating 2,000 jobs. Zwebner moved to Miami with Gia, who was pregnant. In his absence the company was struck off and Zwebner made personally bankrupt. He now claims he has repaid his creditors and is seeking to have his bankruptcy annulled, but according to Insolvency service records he is a current bankrupt with personal debts of £48,000. The record prevents Zwebner from running a company in the UK and he claims to be only a paid employee of Cardcall (UK). But Zwebner controls the British Company - in breach of company law - as the only named director of its American parent from Cardcall International Holdings of Delaware. In Miami, Zwebner established several businesses including the GiaMic Corporation - the names based on his and his girlfriends' Christian names. But in October 1990, while he was on a business trip to Israel, Gia checked into a motel and took an overdose of Cocaine. Near to her body police found a fax from Zwebner professing his love and repeating a request that she convert from Catholicism to Orthodox Judaism - the subject of a heated telephone row between them the night before. Homicide police concluded her heath was an accident. Following Gia's death, Zwebner moved to New York where with his brother Charles, also a director of the British operation, he opened two companies selling pre-paid phonecards similar to those in the Camelot deal. The firms failed to pay rent for luxury offices in the World Trade Center and the landlord began court proceedings to recover $127,000 (£75,000). Zwebner's firms owe more than £150,000 to telephone companies in unpaid court judgments from AT&T, Sprint Communications and Allnet. They also owe £112,500 to the printers of US phonecards and almost £6,000 in New York State taxes. Plunged into debt, Zwebner's business dealings became bitter and sometimes sinister. Late in 1993, a New York Court issued a permanent injunction against him after hearing evidence of threats against a lawyer acting for a rival firm. In Court Zwebner was accused of phoning James McGovern's house and telling his wife he wanted to send people there and that she should "obtain personal security because you will need personal security very soon." Zwebner also began circulating letters to clients accusing his rivals of corruption and criminal activities. Facing Court actions and mounting debts he closed down his New York companies moving back to Britain. His brother Charles established Cardcaller Canada, Inc., in Toronto, which also faces huge debts. Meanwhile the British operation is struggling. Despite a distribution contract with W.H. Smith, Cardcall made a loss of more than £600,000 last year. At his flat in Golders Green Zwebner said, "I told Camelot I was a bankrupt and made full disclosures of my business history." He claims his business problems in America were part of a dispute with another company, which he says did not honor a deal. "The threats I made were not real. You must understand I was the victim of a bad business deal. My remarks and letters were made in the heat of the moment and I never sent people round to anyone's house." He added, "None of these things has anything to do with my relationship with Gia Franzese or her family. I have met Gia's family including her brother Michael, but they had nothing to do with my business now or in the past." Camelot said, "We are grateful to The Mail on Sunday for drawing to our attention these allegations which we were not aware of. We will now carry out a thorough investigation or our own to determine if any contracts need to be reassessed." ragingbull.lycos.com