Printer Friendly

CONSOLIDATED AMERICAN INDUSTRIES, INC. CONTINUES PURSUIT OF FRAUD ACTION AGAINST BANK AFTER FAVORABLE PARTIAL SETTLEMENT

      CONSOLIDATED AMERICAN INDUSTRIES, INC. CONTINUES PURSUIT OF
     FRAUD ACTION AGAINST BANK AFTER FAVORABLE PARTIAL SETTLEMENT
    TAMPA, Fla., Nov. 4 /PRNewswire/ -- Consolidated American Industries, Inc. (NASDAQ: COAM) today announced a third quarter 1991 net loss of ($3,427,426), or ($.61) per share, down from a third quarter 1990 net loss of ($34,151), or ($.01).  The earnings per share include a ($3,257,613), or ($.58) per share, asset writeoff which was reported in the company's Form 8K filed Sept. 14, 1991.  Company management felt the write down of assets was appropriate to more accurately reflect the assets value in light of the recent discovery of fraud on the part of Multipress, Incorporated from whom the Multipress division was purchased.  This fraud is the basis for Count II of a complaint filed in Federal Court against Industrial Investments, Inc. f/k/a Multi-Press, Incorporated; American Bank Securities, Inc.; and Huntington National Bank.
    Operating results for the nine months ended Sept. 30, 1991 and 1990 were ($2,863,345) or ($.56) per share, and ($659,487) or ($.14) per share, respectively.  Year-to-date operating earnings before asset writeoff and depreciation was $925,448 on revenue of $2,743,738, compared with an operating earnings before depreciation of $232,364 on revenue of $3,569,796 in the prior year period.  COAM management sighted optimism noting a 16 percent increase in sales from the prior quarter, and a partial settlement of the fraud action with American Bank Securities, Inc. whereby 19.8 percent of the common shares of COAM will be surrendered (10.6 percent fully diluted) to COAM, and American Bank Securities, Inc. will provide full and complete cooperation in assisting COAM's continued prosecution of Huntington National Bank in the federal fraud action.
    -0-                      11/4/91
    /CONTACT: Stephen A. Springer of Consolidated American Industries, 614-228-8120/ CO:  Consolidated American Industries, Inc. ST:  Florida, Ohio IN:  MTC SU: CG -- CL020 -- 0895 11/04/91 16:31 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 4, 1991
Words:324
Previous Article:FANNIE MAE REPORTS POSTED YIELDS
Next Article:AMERICAN SAVINGS BRINGS SUIT AGAINST FORMER OFFICERS, DIRECTORS AND OTHERS


Related Articles
CONSOLIDATED AMERICAN INDUSTRIES, INC. PREVAILS
COAM-HUNTINGTON-ACTION CL005 /From PR Newswire in Cleveland at 216-566-7777/
CONSOLIDATED AMERICAN INDUSTRIES, INC. RECEIVES ENTRY OF DEFAULT IN $30 MILLION FEDERAL FRAUD ACTION AGAINST HUNTINGTON BANK
BARNETT BANK AGREES TO SETTLE CONSUMER CLASS ACTION ALLEGING AUTOMOBILE INSURANCE OVERCHARGES
BARR LABORATORIES SETTLES 1992 SHAREHOLDER ACTION
AMERICAN MEDICAL TECHNOLOGIES SETTLES MAJOR LITIGATION
Health Management Inc. Reports Rescheduling of Court Hearing Involving Class Action Lawsuit
Goodkind, Labaton, Rudoff & Sucharow, LLP and Zwerling, Schachter & Zwerling, LLP Issue Summary Notice.
Hagens Berman Sobol Shapiro Controller Earns Certified Fraud Examiner Designation.
Consumers File Consolidated Complaint Against LifeLock, Hagens Berman Announces.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters