BXI Trade Exchange Inc. files seven-count complaint against ITEX Corp.BURBANK, Calif.--(BUSINESS WIRE)--Feb. 14, 1997--ITEX Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ITEX ITEX International Tundra Experiment ITEX Interactive TTCN Editor and Executor ), an Oregon-based barter company, is charged with Conspiracy to Defraud To make a Misrepresentation of an existing material fact, knowing it to be false or making it recklessly without regard to whether it is true or false, intending for someone to rely on the misrepresentation and under circumstances in which such person does rely on it to his or and Unlawful Trade Practices in a seven-count complaint filed Thursday by BXI BXI Business Exchange International BXI Buffalo Xerographix Incorporated (Tonawanda, New York) Trade Exchange Inc. of Burbank and Business Exchange International Corp., a Nevada corporation A Nevada Corporation is a corporation chartered under the laws of the U.S. state of Nevada. Nevada, like the state of Delaware (See Delaware corporation), is well known as a corporate haven. . Publicly traded ITEX is named defendant in counts seeking a minimum of $6 million, plus attorneys' fees and costs. ITEX, a small-cap NASDAQ listing, is also currently under investigation by the enforcement division of the Securities & Exchange Commission and the U.S. Internal Revenue Service. The SEC has already uncovered insider trading violations, and ITEX has reserved $1.2 million in taxes on profits ITEX previously reported as non-taxable. Both investigations continue. Company stock prices have fallen from a high of over 12-1/2 last February to a current trading range Trading Range The spread between the high and low prices traded during a period of time. Notes: When a stock breaks through or falls below its trading range after several days of trading in a range, it usually means there is momentum (positive or negative) building. of 3-1/2 to 4. In the suit filed in Multnomah County (Portland), Ore., ITEX itself; the founder of ITEX, Terry L. Neal, currently a major shareholder and paid consultant to ITEX; Michael T. Baer, formerly president and member of ITEX's board of directors, and currently an employee; and ITEX officer and corporate attorney Donovan Snyder, an Oregon and Utah Bar member, are all named defendants. Joel P. Sens, a consultant to ITEX, and David Lawson You may be looking for David J. Lawson, American pastor. David Lawson, (c. 1720 – c. 1803), was a Scottish immigrant who settled on Prince Edward Island. He was, at various times and circumstances, a farmer, a land agent and a politician. , an East Coast associate of Sens, are named in all seven counts of the suit, with damages of $3 million, plus unspecified amounts for Breach of Fiduciary Relationship fiduciary relationship n. where one person places complete confidence in another in regard to a particular transaction or one's general affairs or business. The relationship is not necessarily formally or legally established as in a declaration of trust, but can be , Breach of Contract, contractual indemnification, attorneys' fees and costs. In short, ITEX and its consultant and employees, together with Sens and Lawson, are charged with conspiring to secretly gain control of BXI and its trade exchange, ITEX's main competitor in an industry characterized by small, local exchanges, and violating Unfair Trade Practice Laws in the effort. After numerous attempts, from 1991 to mid-1995, when ITEX tried to buy or merge with BXI, it was plain that BXI would not be acquired by or merge with ITEX. "We looked at it, but BXI has much stronger currency and significantly more clients and a much better reputation in the barter economy than ITEX," said BXI President Saul N. Yarmak. "There was simply no advantage, whatsoever, to BXI associating with ITEX." Having been rebuffed, directly, ITEX and its associates joined with Sens and Lawson and conspired to secretly acquire 50% of BXI. They openly bragged of having duped Yarmak and BXI, even planning to attempt to acquire majority control of BXI. During depositions being taken in the lawsuit first arising out of the acts of the conspirators CONSPIRATORS. Persons guilty of a conspiracy. See 3 Bl. Com. 126-71 Wils. Rep. 210-11. See Conspiracy. , filed by a shell company called SLI (Scalable Link Interface) A multi-GPU interface from NVIDIA for connecting two or four NVIDIA display adapters together for faster graphics rendering on one monitor or two monitors. Inc., but fully sponsored and financed by ITEX, BXI learned of the plan and the participants. Only then did the conspiracy, fraud and violation of Oregon Statutes against Unfair Trade Practices, ORS ORS oral rehydration salts. Oral Rehydration Solution (ORS) A liquid preparation developed by the World Health Organization that can decrease fluid loss in persons with diarrhea. 646.608(c) and (k), become apparent. "The mere possibility that BXI might be associated with ITEX has decreased the value of BXI and caused loss of business and clients," said Yarmak. "BXI, now recognizing it has been threatened by conspiracy, fraud and Unlawful Trade Practices, intends to pursue every legal remedy A legal remedy is the means by which a court of law, usually in the exercise of civil law jurisdiction, enforces a right, imposes a penalty, or makes some other court order to impose its will. In Commonwealth common law jurisdictions and related jurisdictions (e.g. open to us," he said. "For years, ITEX has intentionally represented that its trade credits and assets purchased in trade credits are as valuable as an equal amount of U.S. currency, to build up its assets and attract investors," said Yarmak, "even when they knew many holders of ITEX credits would gladly exchange them for half as many BXI credits and often as little as $0.20 in U.S. currency." "Apparently they decided the prize (owning at least part of BXI) was worth the risk of sneaking around and violating common law and statutes. We'll know soon whether they were right," said Yarmak. Interestingly, Sens and Lawson are charged with violations of the very contract they drew up to purchase the BXI interest. They are charged with various breaches of that contact and procuring the contract by fraudulent representations. Additionally, Sens, who was a member of the BXI board of directors and an executive vice president of the company during much of the period of the fraud and conspiracy, is called to answer for his Breach of Fiduciary Responsibility to the company he supposedly served, and for Usurpation Usurpation Adonijah presumptuously assumed David’s throne before Solomon’s investiture. [O.T.: I Kings 1:5–10] Anschluss Nazi takeover of Austria (1938). [Eur. Hist. of Corporate Opportunity (basically earning a profit that should have gone to the company). "Perhaps ITEX was in such bad condition, they had to have us to keep their boat on the water. Who knows? But we do not intend to be used to bail the deepening water in their hull," said Yarmak. -0- Note to Editors: Copies of the lawsuit as filed are available via fax by calling Norma Heberer, named below as the contact for this news release. CONTACT: BXI Trade Exchange Inc., Burbank Norma Heberer, 818/563-4966 818/563-4965 (fax) |
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