Okay, here we go. It's really hilarious stuff:
10 Q. So you sent a letter on May 4th, 1998 to First Concorde,
11 no?
12 A. Okay.
13 Q. Look, this letter. This is attached to your --
14 A. Okay. Right.
15 Q. -- complaint.
16 A. Right.
17 Q. That's your signature.
18 A. That's correct.
19 Q. And you wrote it to First Concorde.
20 A. No, I didn't. Andy Mann wrote it, sent it to us, and said
21 please transfer this on to this because your money's on the
22 way.
23 Then he called Tree Story (phonetic) at US Bank, send him
24 the wire, and Tree said the wire's on its way. The $1,000,000
25 is on its way. Okay.
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1 So then the $1,000,000 didn't show up. Immediately, we
2 retracted this, sent him a letter that said that, no, that you
3 didn't get the money. The shares are not in good standing.
4 We sent a copy to J.B. Oxford, sent a copy to everybody
5 else immediately right after because the money didn't come. He
6 told Tree Story. He faxed Tree Story at the bank, a wire
7 thing. He's at US Bank. And we never got the money. He said
8 the money was on the way, and we didn't get it.
9 Q. What is the date of the letter?
10 A. May 4th.
11 Q. Who is it to?
12 A. First Concorde.
13 Q. And is it addressed to Mr. Mann?
14 A. Yes.
15 Q. Will you read it, please, for the Court.
16 A. At your request, this is to inform you that Amazon Natural
17 Treasures' Certificate No. 112119 --
18 THE COURT: Is this an exhibit that you've --
19 MR. JI3DD: It's to their complaint. That I guess that
20 it's part of their motion for this preliminary injunction
21 temporary restraining order.
22 THE WITNESS: Okay. Okay. In the amount of 2,000,000
23 shares is in good standing and not subject to any hold.
24 Sincerely --
25 BY MR. JUDD:
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1 Q. And who signed it?
2 A. I did.
3 Q. So May 4th, you had not received any money.
4 A. Correct.
5 Q. You knew that the shares had been issued six weeks before
6 this letter, May 4th.
7 A. The restricted shares, yes. And they cannot be transferred
8 until -- unless Sherwood Cook writes an opinion letter.
9 Q. Now, those were shares to who in your May 4th letter?
10 A. Joseph, Joseph Mann.
11 Q. But you hadn't issued any shares to Joseph Mann, had you?
12 A. We just copied his letter. We just recopied his letter
13 that he faxed us.
14 Q. So it didn't make any difference what he said. You just
15 signed it.
16 A. Correct.
17 Q. Didn't read it.
18 A. I read it. That's what it said, yeah.
19 Q. But it said you had issued unto Joseph Mann?
20 A. I didn't -- he just said to do that. And that's what we
21 did. But you see, we found out subsequent to that he had gone
22 to the transfer agent and had transferred the stock to his
23 name, but we don't know about those transfers.
24 If you -- if you buy a certificate -- have a certificate
25 for 100 shares and you send it to the transfer agent and say
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1 issue 100 shares to different people, they do it, but they
2 don't tell us that. We don't know when other shares are
3 issued.
4 Q. Four days later, you issued --
5 A. No. We didn't issue. The transfer agent issued. You've
6 got to remember that.
7 Q. This is --
8 A. We don't issue these shares. The transfer agent --
9 THE COURT: Let him finish his question, please.
10 THE WITNESS: Okay.
11 BY MR. JUDD:
12 Q. I am showing you a document you attached to your complaint,
13 your verified complaint.
14 A. Right.
15 Q. Tell the Judge what it is.
16 A. It's a certificate that was issued by the transfer agent,
17 Fidelity Transfer, in the amount of 2,000,000 shares to First
18 Concorde Securities, Limited.
19 Q. Whose signature?
20 A. And it has a facsimile signature of myself and Robert
21 Qualey that is put on there in 1996.
22 Q. What is the date?
23 A. And he -- Andy Mann had the transfer agent do this on
24 May 8th, 1998.
25 Q. So you have, what, all sorts of certificates spread out all
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1 over the country or the world?
2 A. Do you -- can you imagine how many shares in IBM are traded
3 every day? Can you -- how many -- you know, certificates --
4 THE COURT: Listen to the question, please, and
5 respond to the question.
6 BY MR. JUDD:
7 Q. You knew this was issued.
8 A. No. We don't know it's issued. We knew it was issued --
9 when we get a transaction report.
10 Q. So you give shares of Amazon to all sorts of people signed.
11 A. No, no, no, no, no, no, no. A transfer agent holds all the
12 certificates. Every transfer agent in this country holds
13 facsimile signature certificates, blank.
14 The transfer agent, a neutral agent, is supposed to
15 transfer the stock for brokers, for individuals. The company
16 that relies on the transfer agent is their individual. We
17 don't --
18 Q. Who was the transfer agent that had the original of this
19 certificate which you attached to your complaint?
20 A. A company called Fidelity Transfer.
21 Q. Who sent the original certificate with the signatures on it
22 to First Fidelity?
23 A. Attorney by a h- a gentleman by the name of Attorney
24 Leonard Burningham (phonetic) at the closing of the Amazon
25 Natural Treasures' merger with Concorde Capital on March 27th
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1 of 1996.
2 We signed those certificates in his office, and he took
3 it -- we didn't even sign those certificates. We signed the
4 SCC document that is supposed to be signed by the president and
5 secretary of the company for the transfer agent.
6 The transfer agent then in turn took that signature and
7 placed it on the certificate as they are supposed to do by law.
8 Q. So almost two months after you signed your subscription
9 agreement with Whitecliffe and Shoreline where they were
10 supposed to pay you $1,000,000, two months later, you hadn't
11 been paid a dime according to your testimony.
12 A. Correct.
13 Q. Hadn't received 200,000 shares.
14 A. No. Did not receive 200,000 shares.
15 Q. Didn't sell any of those 200,000 shares.
16 A. I don't know what you're talking about those 200,000
17 shares.
18 Q. Didn't send any notes marked paid.
19 A. Yeah. I never sent any notes marked paid. You're right.
20 Q. But you did send a letter that Mr. Mann had prepared for
21 you that referred to a particular share, 2,000,000 shares, to
22 him individually. You didn't read that. You just signed it.
23 A. No. We read that. We checked with Tree Story. Tree said
24 the $1,000,000 is on its way.
25 Q. But you knew that you had only issued 4,000,000 shares, and
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1 they were to Whitecliffe and Shoreline.
2 A. No. No. You're missing the point. We don't know who
3 issues stock. We don't know what stock is issued to who. No
4 company does because they keep changing.
5 When you -- every month or every quarter when you get a
6 list from the transfer agent, it's a big huge list, and it's
7 got names of people and what they transferred. They transfer
8 hundreds of thousands of shares in these companies every day,
9 but the companies don't know who they transfer stock to.
10 Q. So you have all these original shares out there with
11 various transfer agents.
12 A. No, no. One transfer agent.
13 Q. Just Fidelity.
14 A. Just Fidelity. Every company only has one transfer agent.
15 Q. So you knew where all your shares were.
16 A. All the blank certificates.
17 Q. Fidelity was your agent.
18 A. Fidelity was our neutral agents.
19 Q. Your transfer agent.
20 A. Our transfer agent.
21 Q. It could only do what you authorized it to do.
22 A. No. It does what the law says. Okay. And --
23 Q. You authorized Fidelity to issue shares.
24 A. The first 4,000,000 shares restricted, correct. We did.
25 That's the only shares that we authorized with this whole Andy
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1 Mann situation is the restricted shares.
2 Q. So the shares that were issued by First Fidelity that you
3 attached which are unrestricted without legend, you're saying
4 now First Fidelity was not authorized to issue those?
5 A. First Fidelity is not authorized to do anything for us
6 whatsoever. I don't know who First Fidelity is.
7 Q. Who's your transfer agent?
8 A. Fidelity Transfer.
9 Q. Excuse me. I misspoke. Fidelity Transfer.
10 A. Right.
11 Q. So Fidelity Transfer according to your testimony was
12 authorized or unauthorized to issue the two shares, one to
13 Joseph Mann and one to First Concorde.
14 A. They were authorized by the SCC if they receive an opinion
15 letter from counsel that states that all the agreements have
16 been met on the reg S situation or subscription agreement, that
17 the money has been paid, we are current in our filings, and it
18 is an attorney that -- yes. They will transfer stock.
19 Q. so when your authorized agent had issued these shares, do
20 you ever get information from your authorized agent on what it
21 is doing on your behalf?
22 A. Once -- you can order transfer records from your transfer
23 agent once a month, once a quarter, or semi every six months.
24 Q. When you sent a letter May 4th saying 2,000,000 shares to
25 Joseph Mann, Certificate No. 2119, is in good standing and not
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1 subject to any hold restrictions, did you first call up your
2 agent, Fidelity Transfer, and find out what they had been
3 doing?
4 A. It's not necessary.
5 Q. You hadn't been paid a dime where you were owed $1,000,000
6 bucks, and you never called your transfer agent; is that true?
7 A. You don't -- we call our transfer agent for many reasons,
8 yes. The -- when that letter was written, the money was
9 en route. We had the bank wiring number. We had all the
10 information. We had his fax going to Tree Story at US Bank
11 that the money is on its way. The Fed reference number is
12 this, $1,000,000. Then he sent that -- then he sent that
13 letter......
And so on...
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