That's right everyone, Preposterous should is comparing TMRT to HITT and I have to agree with him for once in my life that he is correct. I even thing TMRT is a better story then Hitsgalore.com. Cast your vote right here. You be the judge; HITsgalore in "Security in food stamps" and TMRT in "Truthseeker crusader of justice" . Someone should fax that Evans guy this post, TMRT is much better then HITT's.
Hitsgalorecom Falls on Word of Founder's Past Crime
Rancho Cucamonga, California, May 27 (Bloomberg) -- Hitsgalore.com Inc. shares fell 17 percent after the Internet advertising company said its founder and majority shareholder spent 10 months in a federal prison after being convicted of wire fraud in 1992.
It's the second disclosure of a brush with the law by Dorian Reed this month. On May 11, it was reported that a federal judge ordered Reed and his wife, Audrey, to pay $613,110 to 100 customers they defrauded at another Internet company two years ago. The Reeds were sued by the Federal Trade Commission.
Reed quit as director and chief technology officer of Hitsgalore.com on May 13 after the revelation of the FTC suit. He remains ''a key person who provides services to the company,'' according to a 10-K filing with the Securities and Exchange Commission yesterday that disclosed his criminal conviction.
The company said in a press release it disclosed Reed's conviction voluntarily. It said Reed is exploring his legal options in the FTC matter and that his departure from management is temporary while the board investigates.
Hitsgalore.com shares have slumped 75 percent since the FTC action against Reed was reported on May 11. They fell 1 1/16 to 5 1/16 today. Earlier they touched 4 9/16. The stock traded as high as 20 11/16 on May 10, giving the company a market value of about $1 billion. It's worth $248 million now, with Reed's 28.15 million shares worth $158 million.
The filing disclosed for the first time that the company's $10 million private sale of two million shares announced on April 21 doesn't require the buyer to give the company any cash for 12 months. When it announced the investment, Hitsgalore.com said it would use the proceeds to fund a national radio advertising campaign. It said today the campaign was paid for and would begin Tuesday. It declined to say how much it's spending on the ads.
Security in Stamps
The investor, Life Foundation Trust of Scottsdale, Arizona, secured its investment with a stamp collection it valued at $50 million, according to the filing.
The 10-K filing said Life Foundation Trust also agreed to spend another $10 million to buy web sites from Hitsgalore.com that contain local content, called Local City Editions, over the next 12 months. The second $10 million, not previously announced, was also secured by the stamp collection, the 10-K said.
On May 10, Hitsgalore.com's shares soared 30 percent after the Life Foundation Trust said it would invest $100 million in Hitsgalore.com stock. Three days later, the trust said it would pay for the shares with interests in Texas oil and gas wells.
Neither the company nor the trust would provide details about the stamps or oil wells.
Life Foundation claims to have charitable goals, including feeding the hungry, providing clothing and shelter to the needy, education to the uneducated and ministering to spiritual needs. Its trustee, Jeanette Wilcher, has declined requests for interviews.
Hitsgalore.com's web site claims customers of its services can earn 400 percent returns. It says by paying it $99 to sponsor banner ads on the Internet, investors can earn $495 if they get 20 more investors to also pay $99 each to Hitsgalore.com.
Share Disclosure
Until its 10-K annual report for 1998 was filed with the SEC after the close of trading yesterday, the company had refused to say how many shares Reed owned. Steve Bradford, chief executive, owns 6.1 million shares, according to the document.
Hitsgalore.com, founded by Reed in July, had revenue of $17,800 in 1998. In March, Reed and minority shareholders merged it with Systems Communications Inc., a Florida-based shell company, in exchange for 37.7 million Systems Communications shares. The surviving company is called Hitsgalore.com.
The merger was described as ''de facto'' because neither of two shareholder meetings called to approve the merger gave proper notice to shareholders. The company described them as a ''non- binding straw poll'' of shareholders. It said it plans to call a special shareholder meeting to properly approve the merger.
The 10-K said Reed was unaware of the FTC's judgment against him until he learned about it through news reports. Reed maintains he filed an answer to the FTC's complaint in April 1998 and assumed the matter was over.
The report said Hitsgalore.com had a negative net worth of $4.8 million on Dec. 31, prompting its outside auditor to warn of ''substantial doubt about the company's ability to continue as a going concern.''
May/27/1999 18:11
For more stories from Bloomberg News, click here.
(C) Copyright 1999 Bloomberg L.P.
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Lets go over it on more time tout. Maybe you missed it. Sorry I do not have the attachments handy. You must be insane!!!!
2themart.com (TMRT)
18301 Von Karman Avenue, 7th Floor
Irvine, CA 92612
949-757-1630
949-477-1200
CEO Dominic Magliarditi
Shares Outstanding: 20 million
Market Cap (Using a price of $32): $640 million
While researching 2themart.com (TMRT), a non-reporting OTCBB company, several disturbing facts have come to light, which may warrant further investigation.
The company claims to be developing an auction website, and compares itself to Ebay (EBAY) Amazon (AMZN) and Yahoo! (YHOO) (See Attachment 1, Press Release of May 10, 1999). The company claims the website will be "operational" during the second quarter of 1999, according to press releases dated January 22, 1999 (Attachment 2) and March 1, 1999
(Attachment 3). This gives the company 5 more weeks, to meet their target date.
However, the company's CEO, in a post on Silicon Investor dated February 11, 1999, (Attachment 4), stated that the company was "in the process of preparing our Form 10, which we hope to have completed within the next for weeks." Well, it's now late May, and according to Bloomberg there are no EDGAR filings for 2themart.com (TMRT).
According to Internic records the domain name 2themart.com is owned by BLI Enterprises (See Attachment 5). BLI Enterprises is located at this address:
BLI Enterprises, Ltd. (2THEMART-DOM)
135 E. Reno Avenue, Ste. F-7
Las Vegas, NV 89119
Administrative Contact:
Magliarditi, Dominic J (DJM218) nicmags@AOL.COM
702-795-8664 (FAX) 702-795-8691
Billing Contact:
Magliarditi, Dominic J (DJM218) nicmags@AOL.COM
According to the State of Nevada, BLI Enterprises is an LLC, with members Magliarditi and Rebeil (See Attachment 6).
The company, according to its lawyer, Richard Cutler, in an interview given to the LA Times (Attachment 7) there are 20 million shares outstanding, and 19 million of those are owned by Dominic Magliarditi and Steve Rebeil.
A quick background check on Magliarditi and Rebeil reveals some disturbing facts.
Dominic Magliarditi, according to the Nevada State Bar, is an active attorney in Nevada with the following address:
135 East Reno Ave Ste F7
Las Vegas, NV 89119
702-795-8664
State of Nevada records (Attachment 8) show Rebeil residing at:
98 Spanish Trails
Las Vegas, NV 89113
The Las Vegas Review Journal has written several articles about Mr. Rebeil and Mr. Magliarditi. In an article dated April 16, 1997 (Attachment 9), it is revealed that IRS Criminal Investigation Division agents raided the offices of Rebeil and Magliarditi.
Nevada State Gaming authorities believe that Reveil siphoned off as much as $8 million from customers, and used the proceeds to build his home on Spanish Trails in Las Vegas. He also did not report this $8 million to the IRS.
Magliarditi and Rebeil were both denied gaming licenses by the State of Nevada, which was chronicled in an article in the Las Vegas Review Journal on January 24, 1997 (Attachment 10). According to the article, a former Rebeil partner, Marvin Lipschultz (See Attachment 11), told the Gaming Commission about Rebeil's overbillings. Magliarditi underreported his own 1994 taxes by $70,000-80,000, as well as favorable adjusting (downwards) billings by his law firm to Rebeil, then his client at the firm of Vargas & Bartlett.
Magliarditi appears as a defendant, along with BLI Enterprises, in a suit brought in New Mexico for nonpayment of debts (Attachment 12).
Prior to being 2themart.com, the company was called CD-ROM Yearbook (Ticker CDRH). CD-ROM Yearbook was located at (Attachment 13):
CD-ROM Yearbook Co. Inc.
30100 Towncenter Dr., Suite 0-422
Laguna Niguel, Calif. 92677
714-488-8567
714-488-8192
CEO: Daniel J. McClory
CFO: Keith C. Moore
cdromyearbook.com
The company was sponsored by a market maker called National Capital.
In short, in TMRT this is what we have:
A) The company is a non-reporting, OTCBB, reverse-merger company that on paper is worth $640 million.
B) The company, with offices in Irvine, California is run by a still-practicing Las Vegas lawyer and a Vegas construction company owner, who appears to spend a lot of time in Florida racing cars.
C) The company has no operational website.
D) The company has not met its target date for filing with the SEC.
E) The company's principals have been in serious trouble with the IRS, requiring CID raids.
F) The company's principals have no background in the high-tech industry.
G) The company's principals have no background in the auction industry.
H) The company's principals have been denied gaming licenses.
I) The company's CEO, Magliarditi, has defrauded employers in the past.
J) The company's other large shareholder, Rebeil, defrauded customers in the past.
K) The company is in default with the Nevada Secretary of State (See Attachment 14). |
