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WALL STREET MISLEAD: PETER HALMOS, CO-FOUNDER OF SAFECARD SERVICES, INC., DID NOT QUIT

 LARAMIE, Wio., Dec. 18 /PRNewswire/ -- High Plains Capital Corporation announced today that on Dec. 16, 1992 it terminated its long-standing management contract with SafeCard because SafeCard terminated without notice its consulting relationship with Peter Halmos, SafeCard's co-founder. "I did not quit," said Peter Halmos. "I've never quit at anything and I'm not about to start now," he said.
 On Oct. 23, 1992 Peter Halmos gave notice to SafeCard's Board of Directors of certain activities which he believed constituted management misconduct by certain of SafeCard's officers. Halmos informed the Board that such conduct has made it impossible for him to continue receiving compensation from SafeCard. Halmos refused to accept compensation subsequent to Oct. 23, 1992, but he did not quit. "I continue providing services to SafeCard until Dec. 16, 1992," he said.
 A series of discussions were held with SafeCard's board subsequent to Oct. 23, 1992 which included requests Halmos desired to submit pursuant to SafeCard's indemnification policy and promises made to him each year to induce him to continue providing services to SafeCard. Also discussed were various proposals created by Halmos for the purpose of increasing stockholder value. These proposals included the formation of a new executive management team and a named new CEO that would enhance the existing management, rapidly expanding SafeCard's business, positioning SafeCard for acquisition at a price that maximizes stockholder value, and a concurrent reduction of fees paid by SafeCard to High Plains. Steven Halmos, SafeCard's co-founder, planned to participate in the new executive management structure. "This new plan was designated to permit SafeCard to recoup from third parties to the maximum extent possible those funds appropriately paid to me pursuant to my valid claims for indemnification. Concurrently, the new plan positioned SafeCard to hopefully regain the market capitalization value that existed in 1987 to the benefit of all stockholders. After all, SafeCard stock was selling for $35 a share in 1987 before outside parties destroyed that value," said Peter Halmos. "The non-management board members, William T. Bacon Jr. and Robert L. Dilenschneider, however, rejected this plan without even discussing it again with me and instead talked to me about severance. I told them I'm not interested in severance," he said. "Steve and I own and have options on about 8.5 million SafeCard shares. That's what I was interested in maximizing," he said.
 On Dec. 15, 1992 SafeCard's outside counsel, who is also advising the non-management board members, sent to Peter Halmos, apparently in error, an unissued press release dated Dec. 15, 1992. The surprise unissued press release stated, in part, that "Peter Halmos has left SafeCard to pursue other business interests. The statement was totally false not to mention being quite a surprise. My Christmas present delivered by fax. Apparently the secret plot was for me to find out I'm no longer with SafeCard by reading about it in the press, but the outside lawyer erroneously sent met the release before it was issued," said Peter Halmos. "That bunch is the equivalent of the gang that couldn't shoot straight," he said. The unissued press release also emphatically stated that Steven Halmos will remain as SafeCard's CEO.
 SafeCard's outside lawyer also sent Peter Halmos a letter on Dec. 15, 1992 threatening him with a counter-claim in the event he is forced to seek legal remedies for SafeCard's refusal to honor its indemnification and other obligations to him. "This threat is totally baseless and is in utterly bad faith," said Peter Halmos. "All out war with me cannot possibly be in the best interest of the stockholders," he said.
 By terminating its relationship with Peter Halmos, and now with the termination of the High Plains management contract, the non-management board and SafeCard's outside lawyer have created a potential new competitor for SafeCard. Peter Halmos does not have any restrictions whatsoever, other than a very limited non-compete as to the business of CreditLine Corp., which has a continuing marketing contract with SafeCard and which is owned by Peter Halmos and other members of the Halmos family.
 On Dec. 16, 1992 SafeCard issued a press release announcing "Peter Halmos is no longer with the company." Telephone calls from institutional stockholders expressed confusion as to why Peter Halmos left the company. To clear up the confusion, the answer is simple: Peter Halmos didn't leave SafeCard; he was kicked out without notice. "Kicking me out is not going to cover-up what I believe to be managerial misconduct by certain of SafeCard's officers that I contend has caused me significant harm. Too much is now known. All that SafeCard's non- management board and outside lawyer have done is compound my damages, rather than mitigate the harm to me," he said.
 "As to Steven Halmos, the Dec. 16, 1992 press release was silent, failing to disclose the fact that in the unissued Dec. 15, 1992 press release mistakenly sent to me by SafeCard's outside lawyer there was a specific assertion that Steven Halmos will remain SafeCard's CEO. That assertion was entirely omitted in the Dec. 16, 1992 press release that was issued," said Peter Halmos. SafeCard spokesman, Bob Stone, told the press that "Steve Halmos remains as CEO," according to at least one published report. "I understand that Steve advised the other members of the board on Dec. 15, 1992, that under the circumstances he must reconsider his future with the company and directed the board to delete any reference to his remaining as CEO. Steve told me that he also advised the board that he will make up his mind regarding his future relationship with SafeCard in a few days," said Peter Halmos. "My understanding of Steve's position appears contrary to SafeCard's Dec. 16, 1992 press release and the comments by SafeCard's spokesman," he said.
 The SafeCard Dec. 16, 1992 press release did not include an announcement of a 5 million share stock repurchase program that Peter Halmos had been strenuously recommending as in the interest of all stockholders. "Over the recent months several major institutional stockholders have urged me to recommend to the board that SafeCard repurchase a significant amount of its stock. I agree and tried to accommodate the stockholders' suggestions," said Peter Halmos.
 "A board that intentionally violates its obligations and promises to a co-founder whose 23 years of dedication and extraordinary performance is a matter of record, and in the process dishonors him, has lost its common-sense compass. They chose to ignore the message and shoot at the messenger. They missed. That should send a chilling message to all stockholders," said Peter Halmos.
 -0- 12/18/92
 /CONTACT: Peter Halmos of High Plains Capital Corporation, 307-745-7900/
 (SSI)


CO: High Plains Capital Corporation; SafeCard Services, Inc. ST: Wyoming IN: SU:

AK-SS-JB -- FL012 -- 8334 12/18/92 15:19 EST
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Date:Dec 18, 1992
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