The judgment for Laser Engineering is at odds with the claims of wrongdoing made in the Bankruptcy Disclosure of James N. Turek, "Filed & Entered: 02/23/2005 Amended Disclosure Statement".
September 24, 2002 Laser Engineering received a legal judgement, case No. 01-2209-BKC-RBR-A, against the Company debt owed by the Company to Laser Engineering in the amount of $625,000 During the quarter ended June 30, 2005 the Company entered into a settlement agreement with Laser Engineering whereby the Company recognized an income as a result of forgiveness of debt by Laser Engineering in the amount of $440,000. As of June 30, 2005 and December 31, 2004 the Company was still liable to Laser Engineering in the amount of $185,000 and $625,000, respectfully.
.....
From Turek's Banruptcy Disclosure -
IV. SOURCE OF FINANCIAL INFORMATION
The source of financial information for this Disclosure Statement and Plan is the Debtor.
The disclosure is available on Pacer as "Doc. No. 285 Filed & Entered: 02/23/2005 Amended Disclosure Statement".
II. HISTORY OF THE DEBTOR AND REASONS FOR FILING PETITION
International Plastic Corporation, Inc. (IPC) was a privately held Kentucky corporation formed by Debtor in 1988 and Wicklund Holding Company (WHC) is a Delaware corporation created by the Wicklund family and went public in 1981.
In June 1997, WHC, although a non reporting NASDAQ shell name, was dormant, merged into IPC and the Wicklund name was retained. As a result of this merger, IPC’s shareholders ended up with 80% of the shell stock as IPC had assets valued by appraisal at nearly $15,000.000.00 (molds and patents). At the time, IPC had 124 shareholders and Wicklund had approximately 800 shareholders. After the merger, Wicklund issued approximately 5.6 million of its 20 million shares of Treasury Stock.
On June 30, 1997, WHC looked to acquire or merge with other companies, as it only required sales and SEC approved audits to again be trading on NASDAQ and initiated negotiations in 1998 for the acquisition of Florida Curbing, Inc. (FC) and LASER Engineering, Inc. (LE) (sister companies with same owners) and acquired these companies in 1998.
The acquisition occurred through a reverse triangle “A” merger in which a company is created to put the acquired companies into so that they supposedly cannot carry “baggage” with them into the merger (i.e., back taxes, payables, fraudulent transactions, etc), and in the event that fraud was subsequently discovered. To accomplish this merger Wicklund’s lawyers created Wasalooski Inc., which merged with FC and LE in December 1998, at which time Wasalooski ceased to exist by operation of law with the survivor being Wicklund with FC and LE as its two subsidiaries.
In order to be trading in NASDAQ, WHC was required to have Securities and Exchange Commission (SEC) audits covering three years (2 years prior to the merger, and 1 year after the
merger) and initial audits of FC and LE were started in early 1999. WHC with its assets arranged for funding against FC & LE receivables.
During the period December 1998 through Wicklund’s recission of the merger in November of 2000, at various times, Town Finance, Wicklund, through First National Bank of Barnesville, Emerald Coast Bank and Export Finance Network served as factors for FC & LE receivables.
Upon the initiation of the audits, LE’s CFO disappeared. The auditors told WHC and Debtor that LE and FC were not auditable as their books were loaded with fraud (un-reported receivables and receivables reported current that in some case were 6 months old), just to start.
FC had the same problems as LE but much worse and included fraud related to a clandestine and fraudulent relationship between the original owner of FC (who remained as its operations officer and president by contract) with an unknown minority contractor and operated out of the offices of FC.
Three SEC approved and insured Auditing firms concluded that LE & FC were not auditable. Letters from the various auditing firms are attached as Composite Exhibit “A.”
During this relationship with FC, Debtor’s signature stamp was stolen from his accounting and bookkeeping firm in Florida. Turek’s signature card at Nations Bank/Bank of America was changed without his permission resulting in $1,500,000.00, plus, being drained, WHC and Debtor believe, by the original owner of FC & LE Rudy Poselli. Payroll checks normally signed by him as President of FC were stamped with Debtor’s stamped signature beginning in May of 2000.
WHC and Debtor did file a criminal Complaint in Broward County, Florida in June 2000, which is still pending. The Broward County Sheriff’s Department also suggested Debtor file a lawsuit as it would help them. Unfortunately, Debtor had used all his means to continue moving forward and subsequently filed to reorganize under Chapter 11. As a result of this fraud, Debtor lost valuable real property in Bay County, Florida, as well as his significant equity in his pleasure boat and fishing boat. Wicklund is now known as Plasticon International, LLC.
...
Source:
02-20411-LMK JAMES N. TUREK
Case type: bk Chapter: 11 Asset: Yes Vol: v Judge: Lewis M. Killian Jr.
Date filed: 05/14/2002 Plan confirmed: 04/12/2005 Date of last filing: 03/31/2006
History
ecf.flnb.uscourts.gov |
