jimevans
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God Will Return What the Destroyer has Stolen (How my company was stolen)
Approximately in March 2000, I was introduced to Mr. Speer Mabrey through my vice president, John Metts. Mr. Mabrey is the owner and CEO of Commercial Waste Systems, Inc. (CWS) His main offices are located in Alpharetta, Ga.
John and Mr. Mabrey had been discussing a possible investment/ purchase of Alternate Energy Resources, Inc. (AER) for several weeks prior to my initial meeting with Mr. Mabrey. John Clain, owner of CFC Worldwide Holdings, Inc (formerly St. James Asset Management Group) in Alpharetta, Georgia was to be the co-buyer and his investment banking firm was to be the primary investor.
I feel due to my long illness in 1999 followed by my multiple heart attacks and subsequent angioplasty in January 2000, I allowed numerous management mistakes to be made in 99-2000. These mistakes resulted in hundreds of thousands of dollars in non-profitable sales, as well as hundred of thousand of dollars or more in questionable or unnecessary purchases, while I was out rehabilitating.
Due to these problems, I returned to work part time sometime in February 2000 to determine what AERs' immediate cash needs were. Our detailed analysis showed the company needed an influx of approximately $ 350,000 to meet our obligations to our vendors and suppliers.
AER's accounts receivables was $ 318,621 on the same date. Though I don?t have financial information on March 2000. (CWS was handling all AER?s billing and payables at this point) I personally and historically believe AER should have billed between $ 200-220,000 in the month of March 2000.
Because of my health in February 2000, I was not sure I was up to the rigors of single-handedly restructuring the company in order to avoid a cash flow fiasco, so my main hope was on obtaining the needed financing to overcome this hurdle.
At this initial meeting with Mr. Mabrey, I was assured that if the buy-sell agreement was finalized, they would immediately begin putting in tens of thousands of dollars towards the debt restructuring with the entire $ 350,000 to be immediately dispersed within the 30 days, following the finalization of the buy-sell agreement.
During this meeting I told Mr. Mabrey that we should agree in principle on the terms of the buy-sell agreement and then their attorney could put together a real buy-sell agreement. I felt that this would offer more protection for both parties involved. I felt that 30-45 days would allow their lawyer ample time to transcribe a more formal buy-sell agreement but most of all would allow Fulcher Law Group, AER?s current corporate attorney, the opportunity to get a good look at it. This would also allow Mr. Mabrey more time to perform additional due diligence.
A few days later Mr. Mabrey brought Mr. John Clain, who represented himself as owner and director of St. James Asset Mgmt Group, Inc. to a meeting with me and Mr. John Metts of AER, Inc. at my office.
Mr. Clain basically assured me of the same basic financial terms and immediate financing for debt restructuring as Mr. Mabrey had explained earlier. Mr. Clain also explained his need to expedite the finalization of a buy-sell agreement. Mr. Clain explained to me that he needed to finalize the buy-sell agreement in order to do a "private placement memorandum" with Securities and Exchange Commission. He said this "memorandum" would allow him to raise the capital to finalize the payment in full. \
Both parties (Mr. Mabrey and Mr. Clain) led me to believe that they already possessed the resources to address AERs? debt issues immediately. Mr. Mabrey even stated to me personally that they would start addressing these issues ($350,000) the following week, if I'd agree to the terms of their buy-sell agreement.
On March 27, 2000 I signed their crudely worded agreement. (Copy available upon request ? I do not own a scanner.)
My misplaced trust in these individuals (as well as my own Vice President, Mr. John Metts) and my deteriorating health contributed to my willingness to allow them a 6-month delay in paying me the purchase price. (6 months after the buy-sell agreement signing)
A day or two later, Mr. Mabrey explained that CWS and St. James needed me to sign an agreement relinquishing financial control of AER to their corporations to protect their $350,000 that they were going to put into addressing AERs? debt restructuring within the next 30 days. They also said they needed to protect the one million dollars in the physical plant improvements that they were going to make within 6 months.
Mr. Mabrey of CWS, with Mr. John Clains' financial oversight (as I was led to believe ) began paying AERs? bills and receiving AER's receivables on March 29, 2000. I later realized this to be untrue.
On Friday June 2, 2000, Mr. Clain met with me and my management staff to inform us that he had already contacted the Augusta Chronicle about a story that would be in the next day?s local news concerning AER filing for bankruptcy protection. The only reason I sold AER to Mr. Clain was to avoid any type of bankruptcy filing. Mr. Clain notified AER, including myself, 12 hours prior to the story running in the next day?s paper. The article was full of lies and inconsistencies.
I asked why he had reported filing for Chapter 11 in the Augusta Chronicle, when no filing had been made for Alternate Energy Resources, Inc for bankruptcy protection. He claimed the newspaper had misquoted him about the filing?? Mr. Clain may have also found out that I contacted Cathy Cox?s office (Secretary of State) while investigating St. James Asset Management Group, Inc.
In less than two weeks after the above conversation, Mr. Clain placed me on an involuntary paid medical leave of absence with the stipulation that I not come in contact with AER anymore.
The conditions of the agreement were outlined in the attached letter. Of the three main conditions outlined, Mr. Clain has already defaulted on two of them. The only reason that I even agreed to this paid ?medical leave? was because Mr. Clain had not paid me or my employees in 5 weeks and I was offered one weeks pay upon signing. I also felt that Mr. Clain would be more apt to pay my employees and vendors to keep me away from AER. Mr. Clain?s actions have put me in a terrible financial position that it was almost impossible to miss this weekly check.
Upon getting me out of the way, Mr. Clain went to the Ga. EPD and voluntarily surrendered our RCRA hazardous management waste permit. AER was in the final stages of renewing our RCRA permit. AER had already spent hundreds of thousands of dollars on its completion. This action made no real business sense to me. (Mr. Clain had just previously told Preston Moss of Blanchard & Calhoun Insurance that the actual value of AER?s permit was in the 4 to 6 million-dollar range.)
Also after devaluing AER through all their unethical practices, as well as turning in AER?s permit, I knew he didn?t plan to pay the 2.8 million-purchase price by the September 27, 2000 deadline. The loss of this permit would be his primary reason to devalue the purchase price.
Currently I know CWS misappropriated AER receivables. During March through August of 2000, Mr. Clain has gone through approximately $700,000 to $850,000 of Alternate Energy income without reducing any of Alternate Energy?s debt. He has actually increased Alternate Energy?s debt by almost $600,000, somehow.
My wife and I have spent the last 25 + years establishing an unblemished credit record to have it destroyed by the above mess. We had invested our entire financial future into the company only to have it stolen by these unscrupulous men. This temporary setback has caused a dramatic change (probably for the best) in our lifestyle. We have had to live by the love of family, our church and our Savior. We had to apply for food stamps and sell virtually everything we possess. I am know healthier, due to God?s healing power, and have returned to work.
We tried to pursue this matter from a legal standpoint, only to be taken by a dishonest attorney for every dime we had left. The more reputable firms wanted retainers of over $ 50,000 to take this case. So we had been unable to pursue that avenue.
Since then, the above individual, Mr. John Clain and his investment banking firm has been indicted by the Securities and Exchange Commission for investor fraud concerning a different involving his church for over one million dollars. Due this evolving indictment, we have been unable to obtain a law firm on any type of contingency basis because they feel it would be too hard to collect. All these firms have confirmed the suit would be easily won but without the ability to attach any assets, they would have no reason to win a ?moral? victory.
My wife and I are trying to raise approximately $25,000 to pay the back taxes on the property and business. We hope by God?s will and grace that we could slowly revive the company. Reviving this company would allow us to repay creditors and ex-employees who also got caught in the middle of this mess. If we cannot revive this company, we feel confident that God will make a way for us to do this anyway. We just aren?t sure if asking for help was God?s will. If not we know that this door will quickly close.
We know that God will take care of this, as well as all our needs. We also think that asking other Christians for help would not show a lack of faith. We have completely turned any legal action over to God.
Jim Evans
Our Home Address is:
Jim & Honey Evans
154 Ashley Circle
Martinez, Georgia 30907
E-mail: alternateenergy@hotmail.com
Please pass this to a Christian friend
Posts: 1 | From: home | Registered: Dec 2002
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