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Author Topic: QBID XV
OilMan
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TBS, TNN, MTV are all paid as well they are just in a package, so is Playboy TV and the ads there are HUGE.
quote:
Originally posted by penguinking:
this brings a few questions to mind..... I AM NOT BASHING I JUST WANT ANSWERS.....

Qbid is going to be a pay channel correct?
HBO
Showtime
TMC
cinemax
Do you ever see commercial on those stations.. people pay for a channel they dont normally want commercials.. now i could see this if they were on extended cable commercials would make sense. PLEASE EXPLAIN



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penguinking
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Look guys i really need your input on this... it just doesnt make sense to me...
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Penny-Trader
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Looks like Frank has a guy that knows how to embeszel funds check this out
http://www.ftc.gov/os/1998/08/compla.ptv.htm


UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA

FEDERAL TRADE COMMISSION,

Plaintiff,

v.

MICHAEL MARCOVSKY, SHELDON ALTFELD, CABLE MARKETING AND MANAGEMENT, INC., MY PET TELEVISION NETWORK, INC., and THE PET CHANNEL, Defendants

CIV. NO. 98-___-____

COMPLAINT FOR INJUNCTION AND OTHER RELIEF

Plaintiff, the Federal Trade Commission (“Commission”), by its undersigned attorneys, alleges as follows:

1. The Commission brings this action under Section 13(b) of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. § 53(b), to secure a permanent injunction and other equitable relief, including rescission, restitution, and disgorgement, against defendants for engaging in unfair and deceptive acts or practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a).

JURISDICTION AND VENUE

2. This Court has subject matter jurisdiction over this matter pursuant to 28 U.S.C. §§ 1331, 1337(a), and 1345, and 15 U.S.C. §§ 45(a) and 53(b).

3. Venue in this district is proper under 28 U.S.C. § 1391(b) and (c), and 15 U.S.C. § 53(b).

THE PARTIES

4. The Commission is an independent agency of the United States government created by the FTC Act, 15 U.S.C. §§ 41-58. The Commission enforces Section 5(a) the FTC Act, 15 U.S.C. §45(a), which prohibits unfair and deceptive acts or practices in commerce. The Commission may initiate federal district court proceedings to enjoin violations of the FTC Act and to secure such equitable relief as is appropriate in each case, including redress for injured consumers. 15 U.S.C. § 53(b).

5. Defendant Michael Marcovsky is the President, Chairman of the Board and the Chief Executive Officer of My Pet Television Network, and was until mid-1997, the President of Olympic Entertainment Group, d/b/a Children’s Cable Network. Individually or in concert with others, defendant Marcovsky directed, controlled, formulated, or participated in the acts and practices complained of below. He resides, transacts or has transacted business in this District.

6. Defendant Sheldon Altfeld is the President and Chief Executive Officer of defendant Cable Marketing and Management, Inc., and Vice President of Network Operations for My Pet TV. Individually or in concert with others, defendant Altfeld directed, controlled, formulated, or participated in the acts and practices complained of below. He resides, transacts or has transacted business in this District.

7. Defendant Cable Marketing & Management, Inc. (“CMMI”) is a corporation with its principal place of business at 11500 West Olympic Boulevard, Suite 400, Los Angeles, California. CMMI is a “cable marketing and management company” allegedly hired by investors in Children’s Cable Network to manage their investment. CMMI transacts or has transacted business in this District.

8. Defendant My Pet Television Network, Inc. (“My Pet TV”) is a Nevada corporation with its principal places of business at 11500 West Olympic Boulevard, Suite 400, Los Angeles, California; 7115 Macapa Drive, Los Angeles, California; and 11288 Ventura Boulevard, Suite 811, Studio City, California. My Pet TV is “a new television network dedicated to providing pet and animal themed programming.” My Pet TV has received funds from investors as a consequence of the acts and practices complained of below. My Pet TV transacts or has transacted business in this District.

9. Defendant The Pet Channel (“TPC”) is a Delaware corporation with its principal places of business at 11500 West Olympic Boulevard, Suite 400, Los Angeles, California and 7115 Macapa Drive, Los Angeles, California. TPC owns 80% of defendant My Pet TV. TPC has received funds from investors as a consequence of the acts and practices complained of below. TPC transacts or has transacted business in this District.

DEFENDANTS’ COURSE OF CONDUCT

10. Since at least 1996 and continuing thereafter, defendant Marcovsky and his agents maintained a substantial course of trade in the offering and sale to consumers of investments in cable television networks. Initially, defendant Marcovsky and his agents sold, via telemarketing, an investment in general partnerships, or “affiliates”, which were to own and operate a cable television network named Children’s Cable Network (“Children’s Cable”), which was to broadcast non-violent, educational children’s programs.

11. Children’s Cable’s agents sold interests in 33 separate general partnerships, raising at least $16.5 million from investors. Of that $16.5 million, Children’s Cable took a total of $3.3 million in license fees and their telemarketing agents received $10.7 million. The remaining $2.5 million was allocated as “working capital” for the general partnerships.

12. Each general partnership consisted of 50 members; each partnership unit cost $10,000. According to the general partnership agreement, of the $500,000 raised through the sale of partnership units, Children’s Cable’s telemarketing agents took $325,000 for sales commissions and promotional fees and Children’s Cable retained an additional $100,000 for television program licensing fees. The remaining $75,000 was designated as working capital for the general partnerships. The investors who purchased general partnership interests believed that all these funds were to be used for the operations of their general partnership.

13. Pursuant to the general partnership agreement, each general partnership had “exclusive” rights to a Children’s Cable “territory.” The general partnerships were expected to purchase broadcast time on “leased access” cable channels to show Children’s Cable programs. The general partnerships were obligated to pay Children’s Cable for the rights to show these programs. The general partnerships were to obtain revenue, and thus a return on their investment, solely through the sale of advertising to be shown during the programs.

14. Pursuant to the general partnership agreement, the general partnerships selected defendant CMMI to manage the day- to-day operations of the general partnerships. CMMI received $70,000 of the working capital for each general partnership (a total of $2.3 million), with the remaining $5,000 staying with the individual general partnerships. As the general partnerships’ manager, CMMI was supposed to arrange for airtime, sell advertising, and perform routine administrative functions. Pursuant to the general partnership agreement, all matters which were not ministerial functions were to be submitted to the partners for a vote, including “transferring an equity interest owned by the partnership (majority vote required)”.

15. The general partnership agreement further stated that each partner had the right to vote on all matters concerning the partnership. In addition, each general partnership was to designate two investors, called “Managing Partners” who would act as a liaison with the management company. In many cases, managing partners had no meaningful role, if any, in managing their partnerships, and were not consulted on management decisions as required by the general partnership agreement.

16. Starting in or about April 1997 and continuing throughout 1997, defendants Altfeld and CMMI transferred working capital obtained from the general partnerships to defendant Marcovsky and defendants My Pet TV and TPC to purchase 51% of My Pet TV for the general partnerships. In total, at least $650,000 was transferred by defendants Altfeld and CMMI.

17. Starting in or about June 1997, defendants Altfeld and CMMI represented to the general partners that all general partnerships, through their Managing Partners, agreed to this transfer, and that the transfer would benefit each general partnership.

18. Starting in or about July 1997, defendants Altfeld and CMMI justified the transfer of the working capital to My Pet TV as a way to salvage the money the investors had put into Children’s Cable. In November 1997, defendants Altfeld and CMMI admitted that “(b)y the end of June (1997)it became apparent that the original concept was seriously flawed and simply did not work” because advertising was impossible to sell for leased access channels.

19. In December 1997, defendant Marcovsky represented that four hours per week of My Pet TV programs would be broadcast starting February 1998 on Oasis TV, a cable television network.

20. In March and May 1998, defendant My Pet TV represented that it “currently airs select programming” on Oasis TV.

21. Defendants’ course of trade is in or affecting commerce, within the meaning of Section 4 of the FTC Act, 15 U.S.C. § 44.

DEFENDANTS’ VIOLATIONS OF THE FTC ACT

COUNT I

22. Defendants falsely represented, expressly or by implication, that all of the general partnerships’ working capital would be used for Children’s Cable Network. In fact, all of the general partnerships’ working capital was not used for Children’s Cable Network. Indeed, defendants transferred at least $650,000 of the general partnerships’ working capital to defendant My Pet TV.

23. Defendants falsely represented, expressly or by implication, that each general partnership approved the transfer of its working capital for a 51% interest in My Pet TV. In fact, each general partnership did not approve the transfer of its working capital for a 51% interest in My Pet TV.

24. Defendants falsely represented, expressly or by implication, in December 1997 that My Pet TV planned to broadcast its programming on Oasis TV in February 1998. In fact, in December 1997, My Pet TV did not plan to broadcast its programming on Oasis TV in February 1998.

25. Defendants falsely represented, expressly or by implication, in March 1998 and again in May 1998, that My Pet TV was broadcasting its programming on Oasis TV. In fact, My Pet TV was not broadcasting its programming on Oasis TV in March 1998 or May 1998. Further, My Pet TV never broadcast its programming on Oasis TV.

26. Therefore, defendants’ representations as set forth in paragraphs 22-25, constitute deceptive acts or practices in violation of the FTC Act, 15 U.S.C. § 45(a).

COUNT II

27. Defendants transferred at least $650,000 of the general partnerships’ working capital to My Pet TV without the authorization or consent of the investors, in contravention of the general partnership agreement.

28. This transfer caused substantial injury to the general partnerships that could not have reasonably been avoided and is not outweighed by countervailing benefits to consumers or to competition.

29. Therefore, defendants’ practice, as alleged above, constitutes an unfair act or practice in violation of the FTC Act, 15 U.S.C. § 45(a).

COMMON ENTERPRISE

30. Defendants Marcovsky, Altfeld, CMMI, My Pet TV and TPC have operated a common business enterprise while engaging in the unfair or deceptive acts and practices alleged above and are therefore jointly and severally liable for said acts and practices.

CONSUMER INJURY

31. Defendants’ violations of Section 5(a) of the FTC Act have injured and will continue to injure consumers. Because of defendants’ unfair and deceptive acts and practices, consumers are likely to lose money and suffer substantial financial injury, absent injunctive relief.

THIS COURT’S POWER TO GRANT RELIEF

32. Section 13(b) of the FTC Act empowers this Court to issue injunctive and other relief against violations of the FTC Act and, in the exercise of its equitable jurisdiction, to award redress to remedy the injury to consumers, to order disgorgement of monies resulting from defendants’ unlawful acts or practices, and to order other ancillary equitable relief.

PRAYER FOR RELIEF

WHEREFORE, plaintiff requests that this Court:

(1) Award the Commission all temporary and preliminary injunctive and ancillary relief that may be necessary to avert the likelihood of consumer injury during the pendency of this action and to preserve the possibility of effective, final relief, including, but not limited to, temporary and preliminary injunctions, appointment of a receiver, and an order freezing each defendant’s assets;

(2) Enjoin defendants permanently from violating Section 5(a) of the FTC Act;

(3) Award such relief as the Court finds necessary to redress injury to consumers resulting from defendants' violations of Section 5(a) of the FTC Act, including, but not limited to, the rescission of contracts or refund of money, and the disgorgement of unlawfully obtained monies; and

(4) Award plaintiff the cost of bringing this action as well as such other and additional equitable relief as the Court may determine to be just and proper.
DATED:

Respectfully submitted,

DEBRA A. VALENTINE
General Counsel

STEPHEN GURWITZ
DANA J. LESEMANN
CONNIE WAGNER
Federal Trade Commission
Sixth Street & Pennsylvania Avenue, N.W.
Washington, DC 20580
(202) 326-3272; 3146; 3309

JOHN JACOBS
Federal Trade Commission
10877 Wilshire Boulevard, Suite 700
Los Angeles, CA 90024
(310) 824-4360
Attorneys for Plaintiff


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penguinking
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Oil, i see where you are coming from but those channels you mention are on my extended cable channels... if qbid is going to be on extended hey great lets sign up GM and all the big names but playboy is a pay channel and the only commercials i know of on their is for playboy mag or something that they sell their self..
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kbpkt
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quote:
Originally posted by penguinking:
Look guys i really need your input on this... it just doesnt make sense to me...

I understand all the enthusiasm about a PR tomorrow, and this bio posted on the website adds to that rumor, but do you really want a guy like this representing Q with such a checkered past? There is already a lot of people that think this company is a scam (not bashing, just pointing this out), why would you want someone working for Q that has already been accused of scamming others in the past. Hiring this guy was a bad move.


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OilMan
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If you put a GBLTV channel up today in the clear without a subscription the bible belt and the Republicans will dance all over your head. By request is the only way to get it in the currnet market, OilMan said it here first, "When LOGO tries to launch Jerry Farewell and every other thumper will be lined up accross America to say NO NO NO!" It will not work unless it is by invitation and anyone who thinks it will does not watch the news or read the news papers.
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penguinking
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Look guys this does not need to turn into a war, im just trying to bring out all the pro's and cons for future investors of qbid.. if all we do is post good stuff and future investors find the bad stuff they wont invest because we did not address this issue they may just look at us like we are pumpers..
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firefly
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Should be a hell of a day tommorow.
"all we have to do is launch"!!!!!!!!!!!!
(and not get sued hehe)

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OilMan
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DUDE! I watch Playboy every night! And yes alot of commercials are on Playboy and yes they are industry related. Why would I want to advertise my new Ford truck to some Joe lieng in bed ..... well you get the picture... ROFLMAO! People think it through, to get to this audience you need a delivery system and Qtelevision will be just that. Say 8 million subs and no doubt what so ever about who they are. Think that might be worth a penny or two if you in an industry that caters to the GBL community? Yes is the answer....
quote:
Originally posted by penguinking:
Oil, i see where you are coming from but those channels you mention are on my extended cable channels... if qbid is going to be on extended hey great lets sign up GM and all the big names but playboy is a pay channel and the only commercials i know of on their is for playboy mag or something that they sell their self..


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Penny-Trader
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http://www.multichannel.com/article/CA63810?display=Top+Stories

Fourteen Indicted in Kids' TV Scheme


By LINDA HAUGSTED -- Multichannel News, 2/26/2001

Abstract: A Colorado grand jury has indicted 14 individuals for securities fraud and other alleged crimes related to the promotion of children's programming network KidZtime to small-scale investors.


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StonedPigeon
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quote:
Originally posted by penguinking:
this brings a few questions to mind..... I AM NOT BASHING I JUST WANT ANSWERS.....

Qbid is going to be a pay channel correct?
HBO
Showtime
TMC
cinemax
Do you ever see commercial on those stations.. people pay for a channel they dont normally want commercials.. now i could see this if they were on extended cable commercials would make sense. PLEASE EXPLAIN


---------------------------------------------

Pay for basic no Q

Pay for Premium get Q and a Pickle
Still get commercials!

Pay for Premium Plus get Q a Pickle and a
Turkey Baster!


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EDDIE138301
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To all the people that are bashing the new CEO. Look at the dates and take a look at the past 2 years and see what he has been doing. All in all, Frank has been true to his word so far. QBID is going to rock this week.



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penguinking
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So OIL so your saying you have to subscribe to it like a pay channel... go back to what i posted earlier
because advertising was impossible to sell for leased access channels.

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Penny-Trader
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http://print.google.com/print/doc?articleid=ReeXmRTryyD

Nostalgia axes CEO Marcovsky
Jay Greene
Jan 31, 1994

Nostalgia Network Inc., in the midst of a takeover fight, fired its chairman and chief executive late Thursday.

Michael Marcovsky was removed after a lengthy board meeting in New York, where company directors effectively ceded control of Nostalgia to a special committee of directors established to sell the company.

Marcovsky was replaced as CEO by Frank Jett, Nostalgia's president, and as chairman by Gerald P. Carmen, a director and one-time U.S. ambassador to the United Nations in Geneva. Jett and Carmen are both on the special committee and are the directors working most closely with the New York investment bank Allen & Co. to find a buyer.

In a press release issued from his lawyer's officer, Marcovsky blasted the board's move, saying he is "profoundly concerned" about the ability to get the highest possible price for the company.

Nostalgia, a money-losing cable channel, went on the market last fall, when Pat Robertson's Intl. Family Entertainment Inc. bid $ 2 a share, or roughly $ 41 million, for the company. That pits the televangelist against Rev. Sun Myung Moon's Unification Church, whose Concept Communications is a large Nostalgia shareholder and also has designs on controlling Nostalgia.

Supported meeting

Marcovsky said he was "sacked" because he supported a shareholder's demand for a special shareholder meeting to elect new directors. Though the release did not name the shareholder, sources said the request was made by Tiger Communications Co., which committed its shares to IFE's bid. A Tiger exec did not return calls Friday.

Marcovsky also criticized the special committee's "complete lack of progress" in selling the company and called the process "little more than a charade."

Nostalgia declined to respond to Marcovsky or explain its reasons for firing him. But sources said Marcovsky's ties to Tiger was a conflict of interest that hindered the company's ability to field bids from other suitors.

Nevertheless, Marcovsky, who is a large Nostalgia shareholder, remains on the company's board.


Copyright © 1994 Reed Business Information


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kbpkt
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quote:
Originally posted by penny-trader:
http://www.multichannel.com/article/CA63810?display=Top+Stories

Fourteen Indicted in Kids' TV Scheme


By LINDA HAUGSTED -- Multichannel News, 2/26/2001

Abstract: A Colorado grand jury has indicted 14 individuals for securities fraud and other alleged crimes related to the promotion of children's programming network KidZtime to small-scale investors.


Small-scale investors? I know a T.V. network that is "suppose" to launch soon that has a lot of small investors. I heard a rumor they just hired a guy that has been accused of securities fraud related to launching a network in the past. It was a kids network he scammed. Wait, his bio just showed up on the Q website. Uh-oh!


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penguinking
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ok stoned i appreciate the input, so qtelevision will be availible to everyone with extended cable that is great...
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sharkus
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quote:
Originally posted by EDDIE138301:
To all the people that are bashing the new CEO. Look at the dates and take a look at the past 2 years and see what he has been doing. All in all, Frank has been true to his word so far. QBID is going to rock this week.


Where is the audit for the number of shares?

I still remember that day when they had the O/S number on the hotline and then removed it as soon as people started to post messages about it. That still bothers me.


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penguinking
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ok im getting 2 different things here Q IS availibe by subscription only and or it comes with extended cable wich is it...
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OilMan
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I agree his past is shaddy but he knows alot of people according to more recent news.... he is not an employee, simply a consultant.
Also check out another friend we all know http://search.ftc.gov/query.html?qt=gates&col=hsr&col=news&col=full

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StonedPigeon
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Thats the way I understand it! But don't
quote me on it.

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firefly
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Am learning about the BIZ. Big business, airwaves. This is still speculative but has a huge market potential. If this is done correctly and above board it will be a great ride. Message to the CEO. Think it is a great opportunity. Launch hard and right.
Will buy you a drink in Vegas!

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sharkus
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quote:
Originally posted by kbpkt:
Maybe I'm not understanding his bio correctly, but does this mean he is the new CEO and Frank is out? I'm confused about this because it states CEO on the bio.

Hmm .. but it states Advisor as well and then a slew of other positions ... I do not think he is the new CEO.


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OilMan
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No it's not.
quote:
Originally posted by penguinking:
So OIL so your saying you have to subscribe to it like a pay channel... go back to what i posted earlier
[b]because advertising was impossible to sell for leased access channels.
[/B]


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casico
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You know this is like the game you played when you were a kid telling someone something and have them tell the next person and so on until it gets to the end..First it does not say he will be the CEO of this company.2nd it does not say they HIRED him..he is only an advisor..probably with money getting connections..Bashers and doubters are everywhere...If you want to sell just do it and leave if not like my girl friend says hang on and enjoy the ride....
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StonedPigeon
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I know the cable people have been kicking
around the idea of ala-cart programing but
I don't think it's something we would see
for a few years.

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sharkus
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quote:
Originally posted by OilMan:
I agree his past is shaddy but he knows alot of people according to more recent news.... he is not an employee, simply a consultant.
Also check out another friend we all know http://search.ftc.gov/query.html?qt=gates&col=hsr&col=news&col=full


Will he be paid for his "work" at Q ? If so he is an employee in my opinion that is working on behalf of QTV.

Also are you serious in comparing this guy to Bill Gates? Tell me that is just tongue in cheek ...


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penguinking
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ummm Bill Gates had / has a product currently out on the market when all those charges came out... (that has no bearing on the Q so we will not get into that) but im not argueing with you but why have a guy consult us that was affiliated with another company that said they would air at one time and had no intensions of doing so? oil I appreciate you taking the time to help me sort this out.
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kbpkt
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quote:
Originally posted by casico:
You know this is like the game you played when you were a kid telling someone something and have them tell the next person and so on until it gets to the end..First it does not say he will be the CEO of this company.2nd it does not say they HIRED him..he is only an advisor..probably with money getting connections..Bashers and doubters are everywhere...If you want to sell just do it and leave if not like my girl friend says hang on and enjoy the ride....

I didn't think he was a new CEO, but the bio is a bit misleading. I was just asking. If he is not being put on the Q payroll, then why post anything about him on the compnay website. Obviously, he is receiving some sort of compensation (stock, cash, future earnings) which does put him on the Q payroll.


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OilMan
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I am saying they are all crooks if you do not control them, and I do mean all of them.
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penguinking
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CASICO, appreciate the info but umm we are having a peacful discussion if you want to try and start a war let me know we can take this off board.
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CouchP
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Hey all you bashing and ranting and crying little girls. Go sell crazy somewhere else, we're all full up here!

All the bitching and moaning is for not, PPS is green today, and will be green tommorow!


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OilMan
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If you knew the history of Gates you would see he was charged with stealing the very system that started the Microsoft Empire LOL! Read up on the man he is a natural borne crook.........
quote:
Originally posted by penguinking:
ummm Bill Gates had / has a product currently out on the market when all those charges came out... (that has no bearing on the Q so we will not get into that) but im not argueing with you but why have a guy consult us that was affiliated with another company that said they would air at one time and had no intensions of doing so? oil I appreciate you taking the time to help me sort this out.


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whizknock
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quote:
Originally posted by anonymous_lurker:
I do think the same OilMan.
But good dd requires to strip him deeply!
Besides it is 6 years old matter.
Look at the news sector of his company website. A lot of stuff completed within short margin of time.
Either guy is well connected or he has tons of money to back him up.


Both!

Connections & big backing!

Something told me to buy some trading shares today.

As allways,,,

"All we have to do is launch!"

------------------
whizknock


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penguinking
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OILMAN LOL I see your point very well... and all of those calling me a basher i am ps1terry@yahoo.com download messenger we can take this off board oilman seems to be the only one willing to help me out.;.
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firefly
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feel i am getting greener.
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