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Posts with tag UniversalExpress

Is Overstock CEO Patrick Byrne defending the Universal Express fraud?

Posted Mar 4th 2008 6:21PM by Zac Bissonnette
Filed under: Law, Scandals

If you've read my posts on Overstock.com, Inc. (NASDAQ: OSTK) CEO Patrick Byrne's allegations of a vast conspiracy of market manipulation involving a character from Star Wars and crooked reporters, you know that I'm a bit skeptical. But for this post, let's put all that aside and assume that Patrick Byrne's whacked out conspiracy theory is right on: there is indeed a cabal of hedge fund managers and "captured journalists" working overtime to drive down his company's stock price.

In the comments section of his latest blog post accusing Gary Weiss of being a Scaramouch, someone identifying himself or herself as "The Good Samaritan" posted the following (edited for rambling):
Patrick...been following your yeoman work in this area ... I must say it mirrors my own experience over the past several years with Universal Express, Inc. and Richard Altomare ... you should know that Altomare and his general counsel are about to rain on their parade in the 2nd circuit court very shortly...since USXP is so far along in their particular battle (having already won two judgments against the naked shorts), and most who follow this area admire you for your fearless position against the entrenched low-lives operating this scandal for the misguided forces on wallstreet ... do not forget the small but equally worthy fights also going on in this vast battlefield...
A little bit of background on Universal Express and Richard Altomare: The company has massively diluted shareholders while dumping unregistered securities on the market -- and has racked up an accumulated deficit of nearly $100 million in the process. Remarkably, all that dilution and all those losses have come on paltry revenue -- just over $1 million in 2006.

Continue reading Is Overstock CEO Patrick Byrne defending the Universal Express fraud?

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Former Universal Express CEO Richard Altomare defends his compensation

Posted Jan 29th 2008 5:14PM by Zac Bissonnette
Filed under: Law, Scandals

Universal Express, Inc. (OTC: USXP), a poster child of the naked short selling conspiracy theorists, is the gift that just keeps on giving for those of us who like to write about Wall Street's seedy underbelly.

Now in court facing SEC charges that he looted the company, former CEO Richard Altomare has been asked to return corporate money he used to buy $558,900 in jewelry, $30,000 in gambling markers, along with a $200,000 bonus.

Altomare decided to pull a Dick Grasso, claiming that the company's board had approved all the payments/bonuses.

But there's just one problem: Mr. Altomare was the only member of the company's board, so the argument is a little bit circular.

According to the South Florida Business Journal, Judge Gerard Lynch told Altomare that if he doesn't cooperate he should "bring his toothbrush" next time. Oh snap!

For more on this bizarre case, visit Gary Weiss' blog.
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Universal Express: The goofy lil' stock promotion that gets more outrageous each month

Posted Nov 20th 2007 1:40PM by Zac Bissonnette
Filed under: SEC filings, Law, Newspapers

Universal Express certainly wasn't the biggest promotional pump and dump of all time, but it's definitely one of the most brazen. Much of former CEO Richard Altomare's looting of shareholders through the sale of unregistered securities took place after the SEC had told him to stop and ordered him to resign as CEO. Then there was the company's crusade against the evil naked short sellers, its acquisition of the Jackson family memorabilia collection, and the seemingly endless press releases.

A federal judge called Altomare a "repeated and remorseless" violator of the securities laws.

The New York Times' Floyd Norris has been covering this travesty, as has Gary Weiss.

Norris offers some interesting tidbits from the latest receiver's report:

From April 2006 to May 2007 - the latter date after the judge had ordered him to stop running the company - Mr. Altomare had the company spend $558,900 at a retail jewelry store in Boca Raton, Fla. In October, he pawned the jewelry for $500,000 ...

In July - after my column, and after the Securities and Exchange Commission asked a judge to hold him in contempt for failing to obey the earlier order - Universal Express paid $30,000 "to cover Altomare's marker at the Wynn Las Vegas," a casino.

Oh, and Mr. Altomare may have absconded with unreleased Jackson family master tapes.

But amazingly, the naked short selling conspiracy theory Kool-Aid drinkers will not be dissuaded from their belief that Universal Express was the victim of a concerted campaign involving the SEC to destroy the company for blowing the whistle on naked short selling. Check out this comical post from InvestorsHub.
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New York Times (NYT) pays for bad karma over fraudulent ad

Posted Oct 5th 2007 5:05PM by Zac Bissonnette
Filed under: SEC filings, Bad news, Rumors, Newspapers, Scandals

When The New York Times ran an ad by corporate sleaze-ball/naked shorting poster child Universal Express in June, the paper came under harsh scrutiny from Gary Weiss (here and here) and even its own chief financial correspondent, Floyd Norris.

The ad, a self-serving rant about the evils of the imaginary naked short selling scandal, had no particular connection to reality and, as Weiss reported, contained at least one complete lie. The ad made a reference to Universal Express's "hundreds of employees." But according to its last 10-K, the company only has 37 employees.

Fast forward to September. After a long legal battle with the SEC, which had charged the company with selling unregistered stock and issuing false and misleading press releases, CEO Richard Altomare has been tossed and a court-appointed receiver has shut down the company's operations.

And The Times got stiffed for the ad -- In the receiver's report, the newspaper is listed as a creditor in the amount of $173,416.32.

The New York Times compromised its integrity to run an ad it never got paid for. Karma's a bitch.
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