This time it is probably over for Richard. If you can't get to a place where you are profitable after 23 years, it is time to do something else. I really hope he doesn't get put away. I do know that it isn't nice to sell unauthorized shares.
Posts: 196 | From: Tampa, FL | Registered: Mar 2006
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The Justice Department appears to have taken a renewed interest in the case against Universal Express, a package and luggage delivery company that has been the target of a civil suit by the Securities and Exchange Commission since 2004.
Judge Gerard E. Lynch of Federal District Court in Manhattan was told of the new interest yesterday as he considered whether to hold the company’s chief executive in contempt of court for defying an order to stop illegally selling shares and to step down from his post.
The chief, Richard A. Altomare, delayed a finding of contempt by agreeing to resign immediately and to pay $30,000 toward the $1.4 million Judge Gerard ordered him to pay in March in restitution for repeated violation of securities laws.
A lawyer for Mr. Altomare, Arthur W. Tifford, told the judge that he had been advised that Tarun Mendiratta, another defendant who is scheduled to go on trial later this year, had agreed to become an informant for the United States attorney in Manhattan and was seeking to settle the civil case.
John A. Hutchings, a lawyer for Mr. Mendiratta, told the judge, “There appears to be a revived U.S. attorney interest in this matter.”
It also appeared possible that Chris Gunderson, who was Universal Express’s corporate counsel, had turned against Mr. Altomare. Mr. Tifford was allowed to step aside as Mr. Gunderson’s lawyer because of a conflict of interest that was not disclosed.
In its civil suit, the S.E.C. contended that Universal Express had violated securities laws by selling hundreds of millions of unregistered shares.
Discovery in the case was briefly delayed two years ago at the request of federal prosecutors, but they appeared to lose interest until after the company ignored the judge’s order to stop selling stock.
The company continued to finance itself that way through this year, selling billions of shares even after Judge Lynch granted summary judgment against the company, Mr. Altomare and Mr. Gunderson.
While losing money on operations, Universal paid Mr. Altomare more than $1 million a year, plus expenses.
-------------------- The difference between genius and stupidity is that genius has its limits Posts: 10204 | From: NYC | Registered: Mar 2006
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