About three years ago I was approached by this company that was looking for investors for an educational company. I was told it had 300 shareholders and the company had just gone through a restructuring and was now profitable and heading to an IPO. I even went as far as referring them to a SEC attorney and in turn he sent them an auditing firm. Now for three years we have been told that the audit was days if not hours from completion (that was the catalyst for filing with the SEC for a public listing). During these times I was dazzled with new talent that took new money (I provided more capital), new curriculum, and was even told of a pending $5.00 a share offer. None of this has happened.
One night while in California I get a cal from a good friend who informs me "we need to follow the money at e2020" that if we do we will find a lot of money being used for personal gain not e2020 gain. Upon that I requested a meeting with Gene Storz and was granted a meeting.
During the meetin I asked a lot of questions that the CEO of a company should have answers to. Essentially I wanted to know what the delay in the audit was? When did the company estimate it would be complete (he said he had it done just could not reveal it). I asked him about a company (GH) and he said the comapny was NOT owned by e2020. He said he did not know who owns it. He said e2020 NEVER gave them any money and that all dealings with GH were purely a technology swap. Yet Dave Richter (Director of e2020) told me he owned GH and that he was considering taking it public or rolling it into e2020.
Richter is in litigation with another alleged owner of GH for questions regarding who owns GH. What the people at e2020 are saying (not Gene Storz CEO) is that e2020 "loaned" someone $400K to use as a down payment on GH. It is unclear if any money did go to GH, what is clear is David Richter is being sued by the previous owner of GH alleging that he has not sold it. Bottom line to me and other e2020 investors is what if any of the GH money came from e2020 and what is the ROI for that investment? Also it has been alleged that David Richter has several consulting practices that are set up for him to be paid a commission. While not out of the ordinary, are these commissions in line with what his other reps are making?
Also has there been a deal brought into e2020 that in somehow or someway does not directly make additional money for Mr. Richter or any company that he is involved with or owned by family members of his. While we are being told by insiders that there are issues with the books, the CEO claims no. We als took these very same questions to the board of e2020 and they said they would do a internal investigation. They said they found no wrong doing.
At that time they were unaware of the fact that the building that they just prepaid 12 months of lease on was owned by Dave Richter and another board member of e2020. Not all directors were told this fact. Furthermore this issue was not caught by the internal investigation so how through were they. We were told by the Board member that we needed to allow them time to get things in order and more communications were forth coming. That was a few months ago and still nothing.
What we do know is that no IPO has been filed, no disclosures are being made, no annual reports are being sent and investors are shut out. We only want fair and honest disclosures. They asked for our money and we gave it, now they cant even tell us where they spent it (cant or wont) or when we may see a dividend or a real market for our securities. Here is the email I sent the comapny and its board, still no formal response.
I can't remember how long ago I invested in e2020 (Education 2020) but I do know it was long enough ago that all the time lines and promises that have been made to me have come and gone. Recently I went to E2020's Scottsdale HQ to ask some hard questions. I was told I would receive answers, to this date I have not. What I have been told through my investigations is that there is legal issues surrounding the ownership of GH.
I have been told that the Audit is nearing completion but the company wants to sell or buy out the shareholders. I have been told that Lisa Keegan is no longer involved and that the money used to buy GH (which is allegedly owned by David Richter) was a loan from E yet when I asked the CEO of E2020 I was told the company merely did technology exchanges and no money has switched hands.
Here is my email, the only response I got was a question asking whom I sent it too. I am sharing it with the public. All I can say is buyer beware, the company may do great things but it has failed at its responsibility to educate us shareholders. I urge you to ask questions.
I have been a personal investor and consultant to you and e2020 for 3 years now. I have heard many things and mostly from you or Len. I found out why today, the President of the company is instructed by the largest shareholder and non-permanent director and another "outside advisor" to not disclose company business, will not answer questions regarding the timing of the public offering. So since you are the pseudo CEO and Chairman I will ask you the same questions that e2020's President couldn't answer, answered with various versions, or answered but according to him he is merely the technology guy that does not handle the operations of selling of stock, negotiation with the auditors or the bankers involved in taking this company public.
I have usually answered everyones issues with the delay that you are in the very least building a business and according to you and Len that business has been improving and getting healthier by the month. I remind them of the good the technology will bring and how necessary it really is. I have done so diligently as I have trusted Len as a friend and I know he has his life and family in this deal and why would he if he did not think it was a good bet. The latest investors were told May that you would be public. I was told several but the last I heard June.
Bottom line is all of those dates have blown by and the excuse is almost always the same. I have seen companies complete a listing and a relist on a higher exchange in the same time you have been talking about going public, talking about buying GH, talking about these great sales men that knew every principle in America, talking about Lisa Keegan, talking about working 190 hours a week, talking, this top exec or that Presidential buddy. None of it has happened or if it has you have NEVER informed us shareholders. No website as promised, no updates just a GAG order on the top officer of the company. That oh by the way is not 100% sure he will sign a SOX Certification and is essentially waiting for you to replace him with whom you choose.
So now when I hear "related party transactions, or follow the money" what do I do? I get told I cant be told anything.
So here are my questions. You can choose to ignore them and since you have informed my friend that he cannot talk to me I will pursue this in the only other channels available to me. I will not be quited by you nor am I scared of you. I was having lunch today with my friend and I was told you insisted on being there and then when I show up your not there. Why in the world do you need to be at a lunch? Why am I being told that I am not the only person asking questions? You guys turned this into what it is. Do the right thing.
Audit
When will it be done? I was told you had the gene status and then as I left I was told you had audited numbers. I would like to see the audit and financial records of e2020. Who is the auditor are they PCAOB certified? Where is the shareholder update website?
Why has it taken this long to audit? Where has the money been spent? Which officers and directors are financially benefitting from these transactions and is there a fairness opinion? What is the ROI? What happened to the $5.00 a share offer? Why did not the shareholders get told about the offer and why were we not asked for our vote?
Why wasn't GH acquired? (this is where gene started shutting down) What is the relationship with GH and e2020? Does GH pay us or do we pay them (he answered neither its a technology and human capital swap)
Does Gene know EVERY financial transaction that has occurred? YES was the answer.
Are there any FINANCIAL transactions between GH and us? He answered NO, did we make a deposit? He answered no. Who owns it? You said you did Dave he said someone else does? Who really does? He then said I may find cash in or out to GH which is a 180 from "human capital and technology". Why did you tell me you owned it? What are those entries out and in? Why did Gene say no then say yes?
Who owns the % of shares (shareholders over 5%) and how did they acquire them? How much do the officers and directors of e2020 make? Are their any related party transactions that are going to be disclosed in the sb2 or 10K
Why are you moving and renting? Is there a lease vs BUY study done? Is the property right for the companies growth? Is this a related party transaction? Is there a fairness opinion? With the type of profits we claim we should buy a building not rent.
Are you going to remain a director?
Why wont you run this company. The books of business leaders I look up to only have run about 15-30 companies and not one of them writes about a 100% success factor. You wont allow your President or Chairman to make the decisions. You have run over 70 successful business, you are a reverse merger expert, IR aficionado and one of the founders so you are 100% industry relevant and I dont know one broker that would not buy the stock if a guy with your track record was at the helm instead of running the ship from a row boat. Why not you?
Why Newbridge and who else did you interview? What other firms did you speak to and what due diligence did you do on Newbridge?
What is the drop dead date for a public filing with the SEC? Will you give penalty shares to all of your shareholders if you miss it? It should come from your personal shares since you are and have been in charge of this aspect of the company and your President has no ability to answer questions or cant control the process that you are in control of.
What are the other transactions with GH that Gene said were non existent then he said they were? Can you list the 70 companies that you have helped successfully?
How can we trust you?
0 comments