Stocklemon Updates on YP.net
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YP CORP (YPNT) COMMITS FRAUD…AND THE AUDITOR ADMITS IT
Stocklemon has thoroughly gone through YPNT’s last quarterly SEC filing and was it ever entertaining. We had already spotted one glaring misstatement: the company had attempted to distance itself from the fraudulent mess known as American Business Funding (ABF). Understandably so: ABF was run by former YPNT CEO Angelo Tullo, and he was just indicted on 29 counts of money laundering and fraud.
The offshore corporations (M&Ms) that hold most of the stock and the money of YPNT were significantly involved with ABF, even to the point of suing for complete control of ABF. After Stocklemon presented overwhelming evidence to support this crucial fact http://www.stocklemon.com/articles/09_14_04.html
YP. Corp. was forced to restate its filing, admitting the relationship existed. Why lie if you have nothing to cover up?
…but, meanwhile, that is just child’s play compared to what we just discovered.
YPNT has been campaigning for investors’ confidence in its improving fortunes. One indicator is that the M&M’s are hastily “repaying” millions of dollars “loaned” to them under dubious sweetheart circumstances. In fact, in two PR’s released just weeks apart, the company proclaimed the M&M’s repaid 1.6 million in loans.
http://www.yp.com/press_release.php?releaseid=2004051901
http://www.yp.com/press_release.php?releaseid=2004060201
Moreover, the recent 10Q states in 5 different places that the M&Ms have repaid $1.6 million in loans to the company:
“Although the loans to Morris & Miller and Mathew and Markson do not mature and require repayment until April 2007, they made accelerated prepayments totaling $1,600,000 in the three months ended June 30, 2004”
Then we looked at the Cash Flow Statement where it says:
Repayments of amounts advanced to affiliates and related parties: 1,175,000
Where is the missing $425,000? For an answer we emailed Mark Weber of Epstein Weber and Conover (YPNT Auditors) and you will NEVER believe his response.
From: “Mark Weber” <mweber@ewccpa.com>
Date: Tue, 21 Sep 2004 10:49:43
To:”’stocklemon’” <stocklemon@stocklemon.com>
Subject: RE: it just doesnt stop
I actually made them change that in the statement of cash flows. They
advanced funds to the M&Ms and two days later they get a repayment. I
told them that was an old trick the S&Ls use to pull. Lend enough money
to the borrower so the borrower has funds to keep the loan current. They
actually received $1.6 million from the M&Ms. However, I suggested that
the substance of those repayments was less than that because they
advanced funds to M&M and then 2 days later got it back.
Epstein, Weber & Conover, PLC
8950 E. Raintree, Suite 200
Scottsdale, AZ 85260
(480) 444-3424
mweber@ewccpa.com
GO TO JAIL…GO DIRECTLY TO JAIL, DO NOT PASS GO, DO NOT COLLECT YOUR MEASLY DIVIDEND.
However, you cannot erase the past with wishful thinking. It does not matter if His Holiness the Dalai Lama became the CEO of YPNT, the company would still be civilly and criminally liable for the misdeeds of prior management. Bergmann is no Lama and he is still covering up for management’s lies. Let us not forget that Peter Bergmann was appointed by Angelo Tullo and was on the Board of Directors for the past 3 years while this company has been looted.
Conclusion
Over the past 8 months, Stocklemon has proven fraud in every aspect of this company. They tried to sue The Lemon, but they dropped it after being forced to confront the fact that they had no case. It is our opinion that their customer numbers are just as fudged as their repayment numbers. How can any investor trust anything this company states as their track record of lies speak for itself? Cautious investing to all.
Stocklemon Reports on Concorde America
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“I know nothing! I see nothing!”
Sergeant Schultz (Hogan’s Heroes 1965-1971)
This is the first of three reports on three different stocks that all have one underlying theme: The companies state that they do not know who is behind the promotion. All of the three companies have recidivists as their CEO’s yet they claim that the promotion on their company is being perpetrated by a person or entity who is a mystery to them……………YA RIGHT.
First up to bat:
Concorde America (Pink Sheets: CNDD)
CURRENT SEC INVESTIGATION