For more information on the ACMI asset conspiracy, please type this address into your web browser: http://www.LaserRadio.com/memphis.html ===================================================================== At the bottom of this page is a complaint letter to the TN State Board of Accountancy, written in 2000. Following, is a summary of the ACMI asset conspiracy and the ongoing activities of the members of this conspiracy. ============================================================================== From at least 1993-2001, an asset conspiracy operated in Memphis, using a "trade name" to pose as a legitimate long distance telephone services company, ACMI. In fact, the "ACMI" company was actually a storefront con-- in multiple violations of Tennessee Consumer Protection Act. There were no actual officers at ACMI. They rotated through the positions, giving verbal agreements and disappearing-- even as they operated within ACMI's offices. Sole operating authority for the storefront resided with two separate boards of directors (comprised of the same exact family voting interests) which deceptively met on alternating Tuesdays. According to one witness who worked at ACMI and left (fearing that what he was doing was illegal) the goal of the parallel holding companies was simply to separate ACMI current assets from current liabilities...then declare the empty shell "bankrupt" and cash in the assets with the surviving shell. This is exactly what happened in 1998: In September, 1998, one holding company, "PIN Inc" (which was renamed, just for the occasion) went "no asset bankrupt". Then a month later, "Limit LLC" sold the assets of ACMI for $2.6 million. Evidence shows that immediate family members of Bill Anderton, Kevin Anderton, Scott Anderton, their CPA Nate Prager and their grand jury indicted lawyer, David Johnson-- along with a host of others, including Kevin Pirolo who has allegedly been successfully sued in Illinois for his role-- operated this civil conspiracy in Memphis. Evidence to the State Bar association shows that someone within the conspiracy obtained stolen faxes from Mississippi. Documented evidence shows repeated false tax reporting to the IRS, false statements to the SEC and conspiracy to defraud vendors with fraudulent accounting, retaliation by shutting off pre-paid services and "legal threats", conveyed by their lowlife (indicted for fraud in Florida) attorney. Today (and again in clear violation of the TN Consumer Protection Act) the current "Anderton Family Enterprises" umbrella company appears to be operating in Memphis, under REVOKED Nevada corporate registration (as of April 18, 2003). According to multiple investigative, legal and law enforcement sources, multiple holding companies have again been structured within the Anderton Family umbrella: Possibly to enable current revenue streams to (once again) be separated from contracts and liabilities. The current operation is possibly involved with banks in Hong Kong (one AFE-related company manufactures gun vaults in China). Other bank-related business may also exist in London and in the Caribbean. Law firms from Florida to Texas are interested in the current operation, which appears to be preparing to offer health benefits from a Texas company, in addition to offering (questionable) Viatical Settlements to terminally ill and elderly holders of life insurance policies. The Viatical Settlement business is an outgrowth of ACMI. Starting in 1998, the insiders of the asset conspiracy offered their multi-level sales force the "opportunity" to sell Viaticals. In order to accomplish this, the ACMI leaders got involved with a notorious man who is prohibited from being involved in Viatical Settlement companies in some states. This person, C. Keith Lamonda, was such a buddy of the ACMI asset conspiracy, he was included on the proposed board of directors of one of the ACMI companies. According to sources, the Anderton family behind AFE has purchased Lamonda's assets in Florida for $1 million and is seeking to sell them to "investors". The Viatical Settlement "industry" is well known, nationally, for preying on the weakest members of society: The elderly and terminally ill! The ACMI asset conspirators have been able to proceed on this path due to: 1. The overworked and underfunded law enforcement resources of Tennessee state investigators. 2. The abuse of his office by the TN Atty. General, Paul Summers (whose office shows the cost to TN of a fraudulent, 1998 ACMI holding company bankruptcy as "$100"-- not the $270,000 in unpaid taxes. 3. The overworked FBI office in Memphis, a town which CNN calls "Bankruptcy capital of America" (with 8-times the national average in bankruptcies!) If you are one of the 500-10,000 agents of ACMI (the number varied, depending on who the conspiracy was conning into asset purchases or sales) then you're not alone. You should contact the FBI fraud units at either Jackson, MS or Memphis, TN and the Atty General of Tennessee ================================================================== Summary of Complaint to TN State Board of Accountancy: Documented evidence shows that from 1993-2001, a civil conspiracy (possibly criminal, in violation of federal RICO statutes) operated out of Memphis, TN-- in clear and multiple violation of the following state and federal laws: TN State Consumer Protection Act Federal deceptive practices act (FTC) Federal tax laws (IRS) Federal Securities Acts and regulations (SEC) And documented fraud in payments to vendors and agents (RICO) The vehicle for this conspiracy was a telephone services tradename, "ACMI" which operated as a "storefront" on East Raines Road in Memphis. The so-called "officers" of ACMI did not have any authority to engage in any contracts. Yet, they made verbal agreements and acted in Illinois (according to an alleged but unconfirmed judgement for $11 million) as real corporate officers. What is known, is that on other occasions, the "officers" did misrepresent their authority and actual corporate status, signing documents as such. These multiple misrepresentations of corporate authority was a key to the success of the ACMI asset conspiracy and were, in themselves, clear violations of the TN Consumer Protection Act. In fact, behind the storefront operation were two holding companies, operating at the same time and both "dba ACMI". The members of these two boards represented the same, exact voting interests. The intention of the two holding companies-- operating in tandem at the same time-- was to enable one holding company to control all current ACMI assets (without any associated liabilities for those assets) The other holding company was apparently always used, exclusively, to sign contracts with ACMI vendors, meaning that it would have only liabilities and no assets. ACMI assets were transferred from one shell to the other, using deceptions and multiple violations of the TN Consumer Protection Act. In 1994, the two ACMI boards met on alternating Tuesdays and kept one vendor, waiting "until next week" before signing a $70,000 liability, associated with the sale of current assets. In 1995, those assets were sold to Conquest Communications in Dublin Ohio. This asset purchase was accomplished with lies and deceptions, according to multiple witnesses who were involved. After the asset purchase by Conquest, ACMI conspirators lied to company vendors that were owed money upon the sale of certain ACMI assets. The asset purchase was deceptively described as a "merger". The conspiracy members pocketed the asset sale amount from Conquest and carried on. At the same time, evidence shows that the conspiracy cheated vendors with fraudulent accounting and defrauded the IRS with tax statements that were grossly inaccurate. The tax misreporting was apparently done as part of the deceptions that enabled the ACMI asset purchase to be finalized. The tax errors for 1994 make ACMI appear very profitable. And the 1995 mis-reporting make ACMI look like a money losing dog. In April, 1996, Conquest unloaded the ACMI assets, "Back to the same people", according to Conquest's Chief Financial Officer, who described the lies about the number of active ACMI agents that Conquest thought it was getting as, "They didn't have as many toes as we were told they had bodies". In other words, the ACMI asset conspiracy inflated the number of active agents, ten times their actual amount! The same thing happened in 1998, when Equalnet, Houston, purchased all ACMI assets. And again, the conspiracy stalled vendors and other creditors with the deception that a "merger" had occured. BY 2000, Equalnet was bankrupt and ACMI's final holding company (Limit LLC) had quietly folded. Apparent bankruptcy fraud also came out of the conspiracy's activities. In September, 1998, after a year of stalling by the conspiracy's lawyer-- who became involved, after a vendor discovered evidence of payment fraud and deception-- the "empty" ACMI holding company (renamed PIN, Inc, to obscure its true relationship to ACMI assets) was bankrupted in Memphis as Chapter 7 "no asset". This was the holding company that had sold all of its assets to Conquest Communications in December, 1995, due to multiple lies and deceptions-- in violation of the TN Consumer Protection Act, according to multiple witnesses. Then, a month after the "no asset" bankruptcy, the ACMI assets were sold to Equalnet, Houston, by the second holding company (Limit LLC) for $2.6 million in cash and stock. And again, the October, 1998 asset sale of ACMI assets to Houston-based Equalnet Communications was deceptively described as a "merger", in violation of the TN Consumer Protection Act. And following that asset sale, one ACMI "president", Nate Prager, started signing contracts as "President, ACMI Acquisition Corp". That company did not even exist, because the public stock shareholders of ENET had not voted to approve the "Acquisition company" as a subsidiary of Equalnet. Today, the members of the ACMI asset conspiracy are active in a dubious life insurance "opportunity", also based in Memphis. The same 6-10 members of the ACMI asset operation are now doing business under a Nevada corporation called "Anderton Family Enterprises" which has lost its Nevada Corporate status. Despite this, the "AFE" company is still operating a Life Insurance Viatical Settlement business called "Life Alliance" which uses the assets of a notorious Viatical scam artist from Florida named C. Keith Lamonda. His notoriety stems from public records and court-ordered prohibitions from operating Viatical companies in various states. Despite his notoriety, SEC records show that C. Keith Lamonda was named a board member of the ACMI asset conspiracy's never-ratified Equalnet subsidiary, "ACMI Acquisition Corp." in 1999. It is likely that Mr Lamonda is a paid consultant to the AFE/Life Alliance operation. His former Florida company, the notorious "Accelerated Benefits Company" may be the assets which AFE has reportedly paid $1 million to buy and operate. There appear to be attempts by AFE to sell ABC assets to investors in Florida. The AFE holding company is also apparently involved in a finance company called Anderton-Harper, which is making loans to Russia and it may be a money laundering operation in its own right. There is no way to know, for sure, as all web sites and corporate registrations for the AFE company and Life Alliance and Anderton-Harper are deceptive, lacking contact information or addresses and obscure-- all in apparent violation of the TN Consumer Protection Act. The web sites all appear to use "proxy-registered" web domains out of Arizona, so it's almost impossible to know who is who, where they're located and who owns them! Another AFE operation manufactures gun vaults in China with a man in Scottsdale, named Tom Loeff. The AFE companies have apparent banking relationships in Hong Kong and London and with numerous banks in Memphis. Members of the ongoing ACMI asset conspiracy include: Members of a Memphis, TN-based family, well-known for multi-level sales "opportunities" in Life Insurance (Bill Anderton, Kevin Anderton Scott Anderton and their wives). A notorious CPA, Nate Prager, who reportedly has something like 10 bankruptcies to his credit (personal and on behalf of his clients) A law firm which included a grand-jury-indicted lowlife and liar named David Johnson (who works with his equally well known partner Jim Suprise to legally attack and silence anyone who exposes the conspiracy, even-- as one Memphis judge claimed in 1999-- at the cost of First Amendment rights). Prager and Johnson threatened an ACMI vendor's lawyer with having the vendor arrested if he canme to Memphis to prosecute a civil lawsuit! Other members of the conspiracy came and went, as the heat and lawsuits caused them to be moved around in a shell game of "responsibility". One "ACMI President" was Kevin Pirolo. He reportedly now has an $11 million judgement on him from an Illinois court for his role in the conspiracy, "My name is Mark Adams and I too have been screwed by ACMI. I was awarded a judgement of $11,361,546.00 against ACMI as a corp. and one of it's officers individually. Any information on the whereabouts of these people would be appreciated." Other passive investors and backers of the conspirasy was Bill Anderton's brother, Wayne Anderton and Bill Anderton's wife, Dannie. ============================================================================================= COMPLAINT TO: TN State Board of Accountancy, with reference to accountancy practices associated with all companies "dba ACMI" since 1992. COMPLAINT BY: Laser Radio, Inc; Vendor/supplier of "ACMI assets" (1994-98) and creditor of "Pin, Inc, dba ACMI" (1998) A shareholder of Smartalk (formerly Conquest Communications), Dublin, OH (1999-00); And a shareholder of Equalnet (ENET, NASDAQ) of Houston, TX (1999-00) (Conquest and ENET are both bankrupt now. They had real problems with "ACMI"). COMPLAINT AGAINST: Mr Nathan I. Prager Nathan Isaac Prager, who since at least 1996 has been both a TN-licensed CPA; And an owner, director and (at interval) the "president" of various companies, "dba ACMI". Thus, in this complaint, Mr Prager, CPA is referenced in regards to his accounting and/or: 1. His actions as the "president" of the "ACMI trade name"--which was a storefront, operating on East Raines Road, Memphis, where ACMI physical assets were maintained. 2. His actions as "president" (or other officer) of any holding company, "dba ACMI". 3. His alleged signing of a contract(s) in April, 1999 as "president of ACMI Acquision Corp" (a planned subsidiary of Equalnet Communications, Houston-- never voted into existence by shareholders).[ref: Access, LLC complaint on file with TN Consumer Affairs] SUMMARY OF COMPLAINT: As many as seven companies (usually operating in pairs) have "dba ACMI" since 1992. The (6?) owners of these companies each enjoyed six-figure profits from the sale of "ACMI assets". But liabilities once associated with those assets were managed by these owners-- via separate holding company boards, composed of themselves-- so that "ACMI assets" ended up in one holding company... and liabilities, in a "no asset/ bankrupt" one. This complaint contains evidence of retaliatory accounting fraud (1997); Retaliatory conversion of pre-paid assets (1999); Intentional mis-reporting to IRS (1995 and 1996-- which may also indicate both asset/liability disclosure fraud to Conquest and tax evasion (of "deferred revenue" &"contingent liabilities"). In total, the assorted deceptions/ omissions which appear in the public record (ie, SEC-filing, March1999) and in a Sept 25, 2000 reply to TN Consumer Affairs, show a practicedly-deceptive corporate culture. ACMI's corporate history is often described as starting in 1992. And one holding company (Limit LLC) has been described as a "Nevada corporation"since its inception in 1997. Yet the true history of ACMI starts Feb 3, 1993: When two (deceptively?) similar-named, holding companies were both registered in Nevada (ACI and ACMI). And Limit LLC is really a TN company, with annual reports due April Fools Day. Since 1993, the owners of "ACMI assets" have apparently operated (pairs) of holding companies at the same time, both "dba ACMI". Seven companies in three states, seem responsible for reports of income (largely deferred) and associated state/federal taxes...all on virtually the same "ACMI assets". It's quite a piece of "accounting spaghetti". I don't know what it all means, so I want to thank the TN Board of Accountancy for their help and review. SUMMARY OF LASER RADIO COMPLAINT, pg 2-of-2 Page 2 Since 1993, it appears that holding companies have operated in pairs,"dba ACMI" at the same time. Controlling these pairs: Separate board of directors; who-- if not the same, exact people-- certainly represented the same voting interests. These boards had sole authority for "ACMI" to enter into contracts, assume liabilities and sell assets. Another set of "ACMI officers", worked as "storefronts" for the board(s): Working out of 5425 East Raines Road in Memphis, these "ACMI officers" may also have had board voting authority at various times. They rotated their positions in apx six-month intervals (making "verbal" agreements" to vendors and agents) then essentially disappeared... or became "not available" [in violation of TN 47-18-104(14) deceptive acts?]. This cheap technique was used to insulate the board(s) from all possible liabilities. The phrase,"It's clear you have nothing in writing" became ACMI "independent council" (actually board member and co-owner) David Johnson's line, if there "was a problem". And if that didn't "get rid of the problem", Mr Johnson suggested "legal action" (against the vendor for "harrassment"). ACMI owners used outrageous lies (ie that this vendor is "a dangerous survivalist") to ensure that no employee (or anyone else) would talk to them-- let alone tell them anything. ACMI bought a year of time this way (97-98). In September 1994, as this vendor pressed into the fourth month for a signed contract from ACMI, the board(s) may have specifically changed their corporate status to deliberately include the vendor in an eventual, planned bankruptcy (as occured in 1998). There is evidence that the vendor was stalled, specifically-- until a questionable Sept 2-7 renaming of pairs of ACMI holding companies occured (ACI became ACMI/ vice-versa). On December 1, 1995, "substantially all of the ACMI assets" were sold to Conquest by the owners of the holding company (later renamed) PIN, Inc. And in 1996, Nate Prager joins "no asset" PIN, Inc as president (SEC filing by ENET, 1999). After its "no asset" bankruptcy in 1998, Prager told at least one person that PIN "virtually ceased to exist in December, 1995"--which raises questions about why he became president of it in 1996. Also in 1996, Conquest discovered multiple accounting problems with "ACMI assets". So, in 1997, Conquest sold the "ACMI assets" back to the same people, now "Limit LLC, dba ACMI". Conquest went bankrupt in 1999, still owed millions by Limit, LLC. For tax year '95,ACMI-issued this vendor an IRS 1099, showing 75% of actual payments. And in 1996, the ACMI/Conquest1099 showed 180% of actual payments to the vendor. If the tax errors, reported by ACMI were applied to all vendors and agents: Year 95 makes ACMI look great (for 12/95 asset purchase) and '96 makes it look like a dog. In October 1998-- a month after the "no asset" PIN bankruptcy-- LimitLLC sells the "ACMI assets" to Houston based Equalnet for seven-figure compensation. In 1999, ACMI filed suit against Laser Radio. The judge felt this "violation of stay" suit was really just a "shut up" violating my 1st Amendment rights. The suit was quietly/negligently dropped (between Sept-Dec,1999)-- a fact only discovered by Laser Radio in July 2000. Therefore this complaint, filed in November, 2000 is timely and filed with all due haste, considering the facts just described. End of Complaint summary, John A. Guthrie III, president Laser Radio, Inc BODY OF COMPLAINT Page 3 Mr Prager, Thank you for taking the time to answer the following questions that I have about ACMI ccounting practices and your role and responsibility in those practices: As ACMI accountant and/or officer of any and all companies, "dbaACMI"--since 1992. The following questions are posed to you because you have been described in variously published histories of "ACMI"-- as being "president, Limit LLC, dba ACMI" (since 1997), "president PIN, Inc, dba ACMI" (since 1996), "president of ACMI" (1998), "a CPA with his own private practice in Memphis" (1998) and a member of the "ACMI corporate leadership" (December 3 and 161997). And as an ENET shareholder, I'm distressed to learn about the allegation that you signed a contract with Access LLC in Memphis as "Nate Prager, president ACMI Acquisition Corp" in April, 1999-- a month before the scheduled--but cancelled-- May Equalnet shareholder meeting, where that subsidiary was to be approved by shareholders. If that's true, I'd like to know where that signing authority came from. Because ENET council Dean Fisher's response, "We'll have to spank him if he did that" is not clear to me. Were you a bad boy, Nathan? Mr Prager, the above--combined with a LIST of deceptions about ACMI in ENET filings with the SEC-- makes me wonder about how the owners of ACMI may have damaged the operational integrity of (now bankrupt) ENET in the spring of 1999. Other than that, I don't have any business knowing what ACMI business was with Access, LLC.(they were the internet hosting server where the web pages, which described "ACMI Acquisition Corp, a subsidiary of ENET (NASDAQ)" before and after May, 1999. I understand that the TN State Board of Accountancy board will review the following: The apparent accounting discrepancies that are attached to this complaint. My questions to you about them. And finally your response-- or non-response-- to the questions. I don't have any intention to get you or anyone else at ACMI into legal trouble. I just want what I always wanted from ACMI-- but never got-- ie, Straight answers. I have simply filed this complaint out of good citizenship. I will finally get my straight answers and the TN state administrators, who have been kind enough to lend their authority to ensure that I get them, will see the challenges facing states in the future: In the effective enforcement of professional standards in the emerging era of incremental-unit accounting, computer records, tax liabilities, etc-- across multiple jurisdictions. This complaint has nothing to do with intending to violate any stay-provision of the 1998 PIN bankruptcy. I'm not trying to collect money from PIN. I just want "straight answers" (PIN or otherwise). Thank you, John A. Guthrie III, president of Laser Radio, Inc since 1992 incorporated from the assets of Laser Radio--since 1979 THE YEAR 1992: Page 4 In multiple "ACMI" press releases and "marketing materials", and also in SEC filings, prepared by Equalnet Communications (ENET) during 1998-99 (a time frame which definately includes descriptions of you as the "president of Limit LLC, dbaACMI") various references are made to ACMI being in business "since 1992". This date was also mentioned on the ACMI 800-number "opportunity" message, which ran from 1996 until 1998. That phone message was changed in 1999 to "seven years"--from 1998's "six years"-- to yield ACMI's "Incredible _____ year track record" (as beginning in 1992). Please explain this repeated reference to "1992", relative to the history of ANY company then in existence, which that may have later contributed to the base of "ACMI assets"? How were these (1992) "ACMI assets" accounted for (ie as a part of a whole... or with associated liabilities,separate from other assets)? Is "1992" in fact, a reference to the bankrupted "Leading Edge Communications" company, which (Bill Anderton and David Johnson and you?) bankrupted in 1992-- just months prior to the dual Nevada corporate filings of Feb 3, 1993 of Advantage Communications and Advantage Communications Marketing Inc (ACI and ACMI)? What role did you have in 1992 with ANY company later known to "dba ACMI"? What role did you have in 1992 with any company controlled by William (Bill) Anderton-- which may have included ANY asset that was later "known" as an "ACMI asset". Why was the 1992 bankruptcy of "Leading Edge" not mentioned in the March, 1999 SEC 14K report's description of the history of bankruptcies by owners/ officers of ACMI.. or of ACMI itself-- when Leading Edge is the only known entity to have existed in 1992? I also believe that, in that same 14K filing, your history of bankruptcy and financial judgement is not fully described. What is the complete history of bankruptcy and financial judgements against you? The reason I ask is simply that I want to know whether these legal actions against you had payments by you associated with them-- which might correlate in any way, to the series of documented accounting discrepancies evidenced in this complaint. Was your complete history proper disclosed to ENET officers and board(s)? If they were made, why were they not published in the stockholder reports? Finally, were any of the agents of "Leading Edge" also accounted for as being any part of the "active ACMI agent" population (of 10,000, described to me in 1994, of the 5,000, described to Conquest in 1995; and the 2,500, described to ENET in 1998-99)? YEAR 1993 Page 5 In 1993, what was your role in accounting for any company, "dba ACMI" or which later contributed assets or liabilities to any company, later "dba ACMI"? Did any company, dba "ACI" or "ACMI" operate in TN--prior to the Feb, 1993? What were the reasons for-- and the operational differences between-- the two holding companies, registered as "ACI" and "ACMI" on the same day, Feb 4, 1993, in Nevada? What did Advantage Communications, Inc (ACI) company do; At what address; And who were its officers and directors? And what did Advantage Communications Marketing, Inc (ACMI) company do; At what address; And who were its officers and directors? I ask because I am concerned about the accounting of assets and liabilities of these two companies. And TN state records only show Advantage Communications, properly registered-- never the other (Advantage Communications Marketing, Inc). Why was the Nevada "Advantage Communications Marketing, Inc" never registered to do business in TN? I'd like to know which one (of the properly-registered Nevada companies) I was dealing with in the summer of 1994 (May to September-- when name changes to both Nevada Corporations to occured: Turning "ACI"-into "ACMI:" and vice-versa. Why, in September 1994, did Advantage Communications, Inc (ACI) in Nevada (become "Anderton Communications Marking, Inc" (ACMI) in Tennesee? And why did ACMI (above) became "Anderton Communications, Inc" (ACI) in Nevada-- but no history of this Nevada corporation EVER shows up in Tennessee records? How were the assets and liabilities of these two firms accounted for-- from their creation until now? YEAR 1994 Page 6 Laser Radio received a signed agreement, on July 18, 1994 countersigned by "Kevin Pirolo, president of ACMI, Inc". Was it common for the storefront ACMI officers (who would later clain to have no contract authority at all) to sign contract agreements as an officer of a non-existent corporation (ie ACMI, Inc)? It had taken two months--since May, 1994, including my making a trip to Memphis in June-- to get this production/ commission agreement into writing. Now, on July 18, 1994, the "ACMI, Inc" president was agreeing that Laser Radio would be paid a mutually agreed commission for the sale of each phonecard that Laser Radio would produce for ACMI-- in advance of the card's distribution. Within a week or two of signing this agreement, Mr Pirolo called and said"The board wont go for it. We can't afford to pay in advance". Then, weeks later (as I was waiting for ACMI to make a counter-offer). I heard from a phonecard printer in California: He said that ACMI was trying to print the Marilyn phonecards--without notifying Laser Radio (which had sole licensing authority to reproduce her image). The printer knew that (only) Laser Radio had the reproduction authority for the images. Furious, I couldn't get ahold of Kevin Pirolo. He wasn't available. Instead of Pirolo, I began interacting with the "new vice president" Steven Adelman. Demanding a contract, Laser Radio waited into early September, for "the board that meets on Tuesday" to make a decision. One Wednesday morning, I learned for the first time that there were TWO boards, meeting on alternating Tuesdays. I had called that Wednesday morning, to find out what "the decision" was from the board meeting the night before. For the first time, I was told that "it's the other board that will meet on that. Don't worry, they';ll do it". I've since learned that on the first day of August, 1994, BOTH boards (ACI and ACMI in Nevada) had met to change names (to ACMI in TN and ACI in NV); and that this vote was formalized on the same dates of Sept 2-7 in Nevada. But only ONE corporation was ever registered in TN to "dba ACMI":Advantage Communications Inc of NV (ACI) was now Anderton Communications Marketing Inc (ACMI) in Tennesee. What two boards of "ACMI directors" were holding meetings on alternate Tuesdays, at the ACMI offices on East Raines Road (or elsewhere) May- September, 1994? Why did BOTH companies vote on the same day, August 1, 1994-- to change names? Was my company stalled from June 1994- until the September "board meeting" specifically so that my company would be "doing business with" an entity that was already planned to be bankrupted later? What assets and liabilities of ACMI did these two "ACMI boards", meeting on alternating Tuesdays in August and September, 1994, control? Who were the members of those two boards of directors (August- September, 1994)? How many active agents of ACMI were there at the end of 1994? YEAR 1995: Page 7 What was your role with any company, "dba ACMI" or which had any authority over "ACMI assets" in 1995? What role did you have in accounting for the commissions, then owed by "ACMI" to vendors like Laser Radio? Why was I solicited to commit a criminal act, in April 1995 by ACMI vice president Steve Adelman (a licensed attorney)? He tried multiple times, on the phone and in writing, to get me to commit an act of Copyright violation-- weeks after my company's license to produce Marilyn Monroe phonecards had expired, March 31).? And since rthe only beneficiaries of this act would have been the insiders of ACMI (who could distribute the cards as "valuable proof cards"--without paying me for the enhanced revenue such cards would earn from sales to collectors... was this attempt by Adelman to get me to commit an illegal act, a test...to see if I'd "play along" or "be a problem"? And because I wouldn't unduly enrich the owners of ACMI, was the delay in paying Laser Radio for LEGITIMATE print costs-- starting in February, 1995 and up until May8, 1995-- simple retaliation... or the beginning of an attempt to put me under duress, so I'd sign ANY "terms of agreement" in order to be paid? Were you at ACMI at this time, in 1995, doing "weekly" visits to Carla Anderton, to supervise her "accounting" (as two sources have described you being)? Were the owners of ACMI already planning, in early 1995, to liquidate the inventory of remaining phonecards-- to either ENET (as ENET Chairman Mark Willis has told me) or Conquest? Why does the 1995 IRS 1099, reporting commissions paid by ACMI to Laser Radio show that $11,194.99 was paid to Laser Radio-- when the correct total was $14,820.36? How many ledgers or other accounting sets of "ACMI books" were maintained for 1995? Was this mistaken tax reporting (and the underlying accounting which enabled it) also made to the IRS reporting of all other vendors and agents of ACMI? And if it was applied to hundreds (or thousands) of other vendors/ agents, did this mistaken income reporting also make ACMI's bottom line profitability look much better for 1995-- than it actually was? PAGE 8 And if so, was this done in order to make ACMI look (falsely) like a great "asset purchase" to either ENET (which was also being considered in 1995,according to ENET chairman Mark Willis) or to Conquest Communications (which actually paid to acquire the "ACMI assets" on December 1,1995; Including the "entire inventory--of phonecards-- resident to that site", according to Conquest president, Jim Sobwick, 12/98)? At the time that these accounting errors were made, did any officer or director of ACMI know the following TN state law?: TN state law 47-18-104 (27) Engaging in any other act or practice which is deceptive to the consumer or to any other person? And why did ACMI accounting ignore repeated requests, made by Laser Radio from 1996-on (to clarify this 1995 discrepancy, and also the one that followed on the 1996 report to the IRS)? What was the role (1994-1998) of Carla Anderton in managing the accounting and payment records at ACMI? And what was the role of Wendy Whitley (1994-1998) in managing the accounting and payment records at ACMI? The assets of holding company "PIN, Inc, dba ACMI" were sold to Conquest Communications on December 1, 1995, but the asset purchase agreement was described as a "merger" by ACMI officers. Conquest president, Jim Sobwick has told me that it was not a merger, it was an "asset purchse agreement" only. And all he wanted was the agents of ACMI (to sell Conquest product). ACMI owners bundled the sale of phonecard assets into the purchase agreement, to launder them of associated liabilities, didn't they? According to Sobwick, ACMI Memphis maintained and accounted for the phonecard assets that were sold to Conquest. He said they were stored in the same closet in Memphis, where they had always been stored and ACMI personel took care of orders. Why was the same Memphis bank deposit account used (for depositing incoming revenue) by both Advantage Communications, Inc in 1995 and also by "Conquest Telecommunications" in 1996? (United American Bank, Memphis # 084001546)... and in the same time period (1994-96) accounts payable checks from ACMI were issued from at least three different checking accounts (1994 United American Bank; 1995 First Tenneessee Bank; and 1996, United American Bank, as above)? Were banking and accounting records for vendors like Laser Radio kept in separate accounts and books-- than were those for "ACMI agents" and other revenue sources? How many active agents of ACMI were there at the end of 1995? 1995 continued Page 9 Does anyone who owns ACMI, in any form, also own "AGI, Inc", an Illinois company? Do the initials in AGI stand for Bill Anderton (of ACMI) and Martin Grusin, Inc (Grusin of the law firm, Johnson, Grusin, Kee and Suprise)? What was the interest payable on the loan from AGI--which was paid off in December, 1995 with the first cash received from Conquest? And did this loan repayment of $270,000 (out of $854,397) cause vendors like Laser Radio not to be paid at all? In his statement to the bankruptcy court in October, 1998, Jim Suprise gave only partial listing of the owners of PIN: "...was owned 1/6 each by Kevin Anderton, Wayne Anderton, Scott Anderton, Kevin Pirolo and Notredan, LLC." Who/ what is the sixth entity that owned PIN? Only five were listed by Mr Suprise? And it's true, isn't it that "Notredan" was registered in TN to Mrs Bill Anderton (Dannie Anderton)? In December, 1995 PIN Inc received $854,397.53 from Conquest and paid $133,397.53 in payroll, commissions and general. What commissions were paid and why? Year 1996 What was your role with any company "dba ACMI" in 1996? In January, 1996 the owners of PIN divided $745,602 from Conquest and paid $45,602.47 in "payroll, commissions and general". What commissions were paid and why these? And why wasn't Laser Radio paid-- even a couple thousand dollars, representing 15% of print costs, associated with the sale of ACMI phonecard assets to Conquest? Why does the IRS 1099 report for 1996 show a 100% accounting error: Stating that Laser Radio was paid $1,275.15-- when, in fact, only $677.25 was received? How was commission data-- between Conquest in Ohio and Memphis-- accounted for, when, in fact, it appears that checks were written to vendors in Memphis alone? 1996 continued Page 10 Why do the consecutive check numbers, written by ACMI (Conquest) payable to Laser Radio in 1996 show this sequence of numbers? 6/4/96 #42648 $32.20 6/18/96 #772 $35.40 7/8/96 #42993 $81.60 10/15/96 #4074 $60.45 12/9/96 #4938 $71.70 How many checking accounts did ACMI maintain in 1995 and 1996 for the payment of vendors and why multiple accounts? 1996 was also the year that it allegedly became clear to Conquest that ACMI did not, in fact, have "5,000 agents"; and that ACMI was a money-loser. How many agents did the "ACMI" company(s) actually have at this time, ensuring the sale of the ACMI assets which my company produced; and which my company was owed money from the sale of? In 1994, I was told "10,000" How many ACMI agents were there at the end of 1994? In 1995, Conquest was told "5,000". How many were there at the end of 1995? In 1998, Equalnet was told "2,500" (a number apparently still including Joan Looper of Whitehouse TN, who received a payment check in April, 1999-- although she and I was part of the same dealings, with the same "PIN, Inc". She was not listed as a creditor of PIN and continued to be paid (as "consultant LOOP"). What was the total value was placed on the "closet full of phonecards" (as Conquest president, Jim Sobwick described the "ACMI asset" purchase of 1995 including)? And even if the value of the phonecard assets in the Conquest purchase was accounted for at print cost alone, why was NONE of the $1.6 million, paid by Conquest to the ACMI company for the purchase of these assets, distributed in any way to the vendors like my company-- which were owed payments upon ANY kind of sale of those assets? You might counter that I agreed to be paid only for "retail sales"( the prospect put to me in May 1995-- five months after ACMI had stopped making any payments for the production of cards...so that with tens of thousands of dollars in expenses for your company... I'd be under duress to sign ANYTHING to get paid). If you do make that assertion, please explain the difference between a ten dollar sale of a phonecard to an individual... and a hundred dollar sale to a phonecard dealer... and a multi-million dollar sale of phonecards (as part of a larger asset sale) to another distributor-- Conquest-- who was planning on using "5,000" ACMI agents to place their investment, "at retail" all over America? PAGE 11 Why, in December 1995, did the PIN board of directors (which sold the ACMI assets to Conquest in 1995) decide to pay only ACMI vendors who were family members (ie, loan repayment and furniture-purchase from Dannie Anderton)? You have been described as having become the president of PIN, Inc in 1996. If PIN sold all its assets to Conquest in 1995 (and "ceased to exist in December, 1995" as you have told people) what did PIN do in 1996, besides split up $1.6 million and disburse it to the various family members of William Anderton and to Kevin Pirolo? Why did you become president of "no asset" PIN, in 1996 and what was your job description, considering that it was a "no asset" company, right up to its 1998 bankruptcy? How were PIN's current liabilities, deferred revenues and contingent liabilities accounted for in the Conquest sale of 1995...and in 1996? Year 1997 Please describe your functions in 1997 with any company (particularly PIN and Limit) that was "dba ACMI" or which was a "division of Conquest"? And what was the role of Kevin McKinney (in 1997-98) in accounting, payments and "corrections of errors" at ACMI? In April, 1997, another holding company called "Limit LLC, dba ACMI" was created by Nate Prager and "independent council" David Johnson. According to ACMI lawyer, Jim Suprise in his statement to the bankruptcy court: :Owners of Limit LLC: Nathan I Praeger (sic) 5% Wayne Anderton 13% Wolf River Investments 2% (total 20%) and the balance equally owned between Kevin Anderton Scott Anderton Kevin Pirolo and Notredan, LLC Is the above ownership of Limit LLC correct, as of October 1998? In April1997, LimitLLC purchased the "ACMI assets" back from Conquest. Was that "purchase" agreed to by Limit, LLC... with the express intent that Limit would never pay Conquest the $2 million note obligation (which was to repay Conquest for the $1.6 million that Conquest had paid in cash for the ACMI assets in 1995? Page 12 What prevented Limit LLC from ever paying-off the note owed to Conquest/Smartalk for the "repurchase" of "ACMI assets"? That million-dollar debt was still hanging over Conquest/Smartalk, when it went bankrupt in 1999. Did the $1 million not obligation, described in the 1998 asset purchase agreement of Oct 26, 1998 with Equalnet, include any part of the note which Conquest was owed by Limit LLC after 1997? And if not for Conquest, what did that $1 million note obligation of Limit LLC actually concern? I ask, because the lawyer for Smartalk told me in late 1998 that they were affected by the 1998 PIN bankruptcy-- even though Conquest/ Smartalk was not listed as a creditor. Why would they be affected by a bankruptcy that they were not listed as creditor to? What was the relationship between PIN and Conquest after December, 1995? What relationship existed between PIN and Limit LLC--besides the same owners (or at least the same voting interests for the same stock beneficiaries)? Did you write PIN down as a complete loss, in your tax reporting of PIN assets in 1995 or 1996 or 1997 or 1998? What ACMI company(s) was responsible for reporting IRS and TN income, sales and excise tax obligations, on ACMI phonecard sales from 1994 until 1999? What ACMI company(s) was reponsible for (unreported) deferred revenues from phonecard sales from 1994 until 1999? What ACMI company(s) maintained the escrow accounts for paying contingent liabilities associated with these deferred revenues from 1994-1999? In July, 1997, I finally had proof that my company was not being paid recharge (as verbally agreed by Kevin Pirolo in 1994 and 1995) on any of the 70,000 phonecards that I had produced for ACMI. And on July 24, 1997 Wendy Whitley deceptively "answered" my July query about never being paid for recharge with, "John, I am unsure why you state that you have never received a dime, let alone a nickle for the recharge of Marilyn Monroe cards... Please verify your address.... also, on the following page...is this your signature? if not, then an imposter has been receiving your money for almost two years! Please double check your records and let me know if we need to involve the authorities". Page 13 Mr Prager, did this deception by Whitley (her pretending to be shocked-- even to asking about "authorities", ala the perfect con man-- but not quite answering the question) come from your suggestion to use deception to stall my discovery of what was really going on at ACMI? I ask that, because you well-know that the only money my company ever received was for "sale"--never recharge. So, would you explain if this example of deception, by Wendy was at your suggestion or her, acting on her own? And then were you directly involved in constructing the commission payment fraud that occured in August 1997--a month later? In August, 1997 (a month after I detected complete non-payment for any phonecard "recharge" owed to my company by ACMI for any recharges made in three years of phonecard sales) I received a monthly commission report that included a 14-card phonecard return of $50 Marilyn phonecards by Powell Associates in New York (and a credit for those returns-- deducted from what was owned Laser Radio). Was this simple retaliation, for my "causing a problem" in July, 1997. In July-- aside from Whitley's drivel-- I was told by ACMI vice president Steve Adelman, to "Take my advice, John. Don't make trouble." And a week after telling me that-- he was gone (or may have already been in California, when he called me to warn me). And where was "He doesn't work here any more" Kevin Pirolo in July 1997? Was he in his office at East Raines Road, selling gem stones for South American Gems (or whatever his storefront was) and wasn't he working with Wendy Whitley then? At this time, July 1997, Pirolo was an owner of Limit, dba ACMI. And in September, 1997, he replaced "Tom"(no last name needed...just Tom, according to vp Steve Adelman) as "ACMI president". When I lied to the ACMI receptionist, in September (telling her I was with AT&T) she put me through to Pirolo--who hung up on me and told the receptionist to tell me to call "ACMI's lawyer, Mr Johnson". Was there a Tom (Reishman) actually working as "ACMI president" in July , 1997? And did he answer to the PIN board or the Limit board? And what was his last name (spelling) and where did he go after September, 1997? Page 14 It's true, isn't it that the fourteen ($50) cards were "credited" to Powell Associates, because you, at ACMI, thought was not on good terms with me, thus ensuring that the fraud would not be discoverd, "Because they don't speak to each other"? In fact (like ENET council Dean Fisher and others who have my paintings in their offices) Luis Vigdor of Powell Associates and I are on VERY good terms. And he says your commission report of August, 1997 is an outright lie! What role did YOU have in preparing this fraudulent monthly report, Mr Prager? It is an outright fraud--commited in retaliation for me complaining about being cheated for three years!. The "returned" phonecards were never reported as being sold in the first place. So, is there more fraud, associated with reported sales of Marilyn phonecards? Lack of reporting sales...lack of reporting recharge...secret inclusion of a $2.90 "recharge surcharge" on users of cards. Were you involved in selecting Powell Associates as the dealer, listed on this fraud? Did Kevin Pirolo and/or Steve Adelman conspire with you, to commit this fraud-- choosing Luis Vigdor and Powell Associates as "the returnees", because you three thought Luis and I didn't like each other and wouldn't talk about the matter? Mr Vigdor, the owner of Powell Associates, has told me twice (1997 and 2000) that he never bought $50 phonecards-- ever-- from ACMI. He only bought $3 and $5 and $7 cards, because he wanted to stimulate the hobby of phonecard collecting; And the expensive cards were ridiculous. So how do you explain his "return" of cards he never bought? Furthermore, when contacted in September, 1997, Vigdor indicated that he did not return ANY cards to ACMI in August , 1997. So, how can any data exist that could "confuse" this monthly report, showing returns and credits? Why were you never mentioned as "ACMI president" in 1997, Mr Prager? In 1997, were you still making your (reported) weekly visits to the company on East Raines Road? or by then, did you maintain a full-time presence there, as president of both PIN and Limit, dba ACMI? Page 15 What WAS your role in 1997, with ACMI, with PIN, with Limit LLC in 1997? When did ACMI begin selling "DRS# 415B Anywhere Telecard Consultant Pakets"--which included Marilyn phonecards? And why were these packets not accounted for in commission reports to Laser Radio? Year 1998 Following the sale of all ACMI assets, by PIN, to Conquest in 1995, what company paid Laser Radio commission checks from 1996- until the 1998 bankruptcy of PIN? From an accounting standpoint, why was there virtually no other phonecard vendor that had started a vendor relationship with PIN, starting in 1994-- besides Laser Radio-- listed as a creditor in the PIN bankruptcy of 1998? Was Laser Radio singled-out, in September 1994-- the date that both corporations, known as "ACI and ACMI" changed their names-- with the intent of commiting bankruptcy fraud against it alone? Why did the list of "PIN creditors" constantly change, in the weeks following the PIN bankruptcy? Why wasn't Brilliant Color Cards-- which was owed money since 1995 for the payment of phonecards-- also not listed as a PIN creditor? And why were no agents of ACMI who had started working with PIN in 1993 or 1994 listed as creditors to the PIN bankruptcy? Why wasn't "consultant" Joan Looper listed as a creditor to PIN? She was due 5% commissions for each Marilyn Monroe phonecard sale that Laser Radio was due 15%. And why did Joan Looper continue to be paid into 1999 (as consultant "LOOP")? Was she one of the "2,500 active agents" , deceptively sold to ENET in 1998? Why was no other phonecard vendor that did business with ACMI from 1994-1998-- besides Laser Radio-- listed as a creditor in the 1998 bankruptcy of PIN (formerly known as Advantage Communications, Inc... Anderton Communications Marketing Inc)? Page 16 On October 26, 1998, Limit LLC and Equalnet Communications, Houston, agreed for ENET to purchase all the "ACMI assets" from Limit, LLC-- in consideration of ENET assuming a $1 million note obligation, held by Limit (which was probably the balance owed to Conquest, by Limit, for the 1997 "repurchase" of PIN assets) and 2 million shares of ENET stock, then trading for about $1/share. Days prior to the public announcement, (Oct 23-24) Mr Prager and other owners of Limit LLC reportedly (by two sources) encouraged hundreds of "ACMI agents" to purchase $10,000 blocks of ENET stock, with the assertion that the stock (which they boasted of having bought for pennies, in early October 1998) was "sure" to trade at $10.00/ share "soon". The main pitchman for the alleged "pump and dump" stock pitch appears to have been Prager's associate, a well known, multi-level sales hype artist from Chicago named Johnny Read--formerly associated with the FBI-busted "Equinox" multilevel sales scam. One other company president, whose company was asset-acquired by ENET in 1999, has reported to a Chicago agent of ACMI: That Nate Prager, himself, purchased the ENET stock in October, 1998. Did you purchase a block of ENET stock, prior to the downline meeting, Mr Prager; and did this purchase violate "insider trading"? And did you spilt this block of stock up among fellow Limit shareholders? And did you authorize any employee to describe to the assembled agents at this meeting:, That the ENET stock was "sure" to be selling at $10/share, "soon" and that's why agents should buy $10,000 blocks of it? In fact, wasn't your intention to deceptively and fraudulently "pump and dump" this stock onto trusting, ignorant, agents-- some of whom came in a bus from South Dakota, to Memphis for that Oct 23-24, 1998 meeting? Did you, yourself, sell any ENET shares on Oct.25-29, 1998? Did any other member of Limit, LLC-- individually or through a shell corporation like Wolf River or Notredan-- sell ENET shares on Oct 25-29, 1998? Stock charts for ENET stock show a 500% trading spike on Oct 25... followed by another spike in January and another one in the spring of 1999 (which is when the ENET/ ACMI "deal" began to unravel...resulting in a cancellation of the May 1999 shareholder vote to acquire the ACMI assets... and a "buyback" of ACMI assets, by Limit, LLC by August 1998. Also, please describe the nature of the $1 million note obligation which is described in the Oct 26, 1998 ENET announcement of the "ACMI asset purchase agreement. Page 17 And why was this $1 million note not described at all, in later SEC filings by ENET? This is the same $1 million note obligation that was transferred back to Limit LLC members, in August, 1998, according to ENET legal council, Dean Fisher (12/99). He said that August, 1999 was when "the same people" who had offered the ACMI assets to ENET...took the assets back... "Kept the ENET stock they'd already received... and re-assumed the $1 million note"). Did this $1 million note obligation include any liabilities associated with either Limit, PIN, Leading Edge-- or any other company "dba ACMI" or selling similer products since 1992? Did ENET management pose any of the above questions to you, prior to ENET's delay in completing the february, 1999 filing of its SEC Quarterly Report on Form 10-Q? And if they did not pose the questions, did you disclose the answers to the above questions to them... and they did not disclose them to shareholders in their filings? Because, according to a 12-B filing by ENET, the company could not file, on time... because the individuals responsible for preparing the Form 10-Q have been engaged in the following matters during the last 45 days and could not dedicate sufficient time to complete the Form 10-Q prior to {HYPERLINK "http://www.secinfo.com/dRx61.63p.htm" \l "Dates" February 16, 1999}: (1) The negotiation and execution of an Asset Purchase Agreement to purchase the assets of Limit LLC (d/b/a ACMI); Why did you and David Johnson tell my attorney, weeks before PIN declared bankruptcy, that if I came to Memphis to prosecute the lawsuit and appear as a witness, that you would have me arrested? You claimed that I'd threatened to "slaughter people like pigs" (or something). Also at this time, Kevin Pirolo's sister was told by Pirolo that I'd threatene to murder the entire Anderton family, right to the level of grandchildren; And that the matter had been taken to the FBI (which told ACMI that they'd had trouble with Guthrie before). Also, in Phoenix, Tom Loeff (a partner with Bill Anderton in one of two similar-named "Security" companies that were registered on the same day in Nevada in 1998) told me that he'd heard that I was a "Dangerous survivalist from Wyoming, whom they had guns in their office and were ready to kill if I came to Memphis". Mr Prager, I suspect you're a pathological liar; or a grown up schoolyard punk who makes up stories to intimidate and frighten people into submission, so he can win at any cost. That's your sad business-- unless you act it out in a criminal way (which I think you capable of , actually) Page 18 In 1998, after I saw Bill Anderton turning his investments into gun-related businesses (in AZ, one of the states with the highest felons-on-parole ratio of any in the U.S.) I feared that your viscous public defamations of me as a dangerous, murderous "survivalist" was your con-man's way of setting me up for a hit, "Oh we had trouble with him for years, officer! Did you hear the one about him...???". And I warned you in writing against it. Please keep that in mind, Mister. Year 1999 Why, on January 13, 1999, did the ACMI fax-on-demand sytem show the incorrect date of Sept. 9, 1998 on outbound messages? Was this part of a pattern of record keeping deception, practiced by ACMI (using time/date stamps to create false timelines for later investigation)? On January 13, 1999, the fax-on-demand system showed "DR8#415 Anywhere Telecard Packets" for sale, which included Laser Radio-produced phonecards. How many of these packets were sold--deceptively-- by Limit LLC, dba ACMI or by "ACMI Acquisition Corp, dba ACMI"-- with no compensation at all paid to Laser Radio? When did sales of these "packets" begin and why were sales from them never reported to Laser Radio? And were these packets created to cause another investigative hurdle-- as to accounting practice, inventory control and payments due (to vendors and taxation authority)? The SEC 14K report, filed by ENET in March 1999 did not make clear to ENET shareholders that the listed "PIN" bankruptcy actually described a company whose assets were exactly the same ones that were included in the "ACMI assets" which the parallel holding company Limit, LLC was purporting at that time to sell to ENET. You were the president of BOTH parallel holding companies (from 1996-1998). Why was this deception about PIN made to the SEC (the deception about PIN not having any relationship to Limit and "ACMI assets")? And was the renaming of "PIN"-- from Anderton Communications Marketing Inc (a week before PIN's September, 1998 "no asset" bankruptcy of PIN) just a part of the planned deception of making PIN seem to be a completely different company-- from Limit, LLC and "ACMI assets"-- so that ENET shareholders wouldn't question the nature of "ACMI assets" which ENET was buying from Limit, LLC? Page 19 In February, why did ACMI "independent council" Jim Suprise (ACMI owner David Johnson's law partner) file a "violation of stay" lawsuit against Laser Radio; And lie to the court about: 1. The posting, by me, of the truth about ACMI on its own web site (Suprise lied in his filing and said it was posted on Laser Radio's site to make it appear to be published defamation-- compared to the reality that it was on an ACMI public bulletin board, which invited public postings about the great experiences people had with ACMI. Was Mr Suprise just following the deceptions and lies that characterize ACMI? 2. About the perjured nature of testimony that ACMI was prepared to provide the court in support of the baseless suit (ie, the "witness" willing to say that I'd told-- her-- that if ACMI would just give me back my remaining phonecards, I'd go away.... a duh, oh sure... they hand me five cards and tell me that's all that's left out of 70,000 and I'd "go away"?). Did you conspire with Suprise to invent this "testimony" Prager? It sounds like your intelligence level, and Kevin Pirolo's and Rita's, his sister-in-law The lawsuit against Laser Radio was negligently handled by Jim Suprise. After lying to the court, in February, 1999 when the case was filed, he also lied to the court in September, 1999 about there being a "settlement".Upon review at this writing: In August 1999, ACMI's lawyer negotiated a $10 settlement. Laser Radio signed, ACMI didn't bother (nor did ACMI's lawyer respond for next nine months). The ACMI plan: Since ACMI's lawyer lied to the court (verbal, about an unspecified "settlement") the partners can still pick a designated thug (Prager), secretly financed by the partnership, to "individually" sue Laser Radio and/or John Guthrie. Schoolyard bullies don't give up. Next complaint: TN Bar. The "Case against Laser Radio"quietly dropped from the bankruptcy court's docket in December-- without any notice to my lawyer, who tried to get Mr Suprise to respond to his query about the status of the case, from late 1999- to spring 2000. Following the lawsuit in February, 1999, why were $8,000 in prepaid PINs, owned by Laser Radio (since 1995, when they were paid for) turned off by ACMI on April 5, 1999? Following the PIN shutoff, in a series of recorded phone calls (and in other calls witnessed by staff members of the International Telecard Association in Washington) ACMI customer service personel were asked for reasons for the shut-down of these PINS. They said: "The PINS were never active"....Then, "The PINS were never paid for by Laser Radio"...Then "There must be a mistake. We don't have any record of those PINS. Finally, weeks later this illegal conversion by ACMI of prepaid corporate property belonging to Laser Radio, a woman who described herself only as "Nate Prager's assistant" gave the reason for the PIN action to Laser Radio: "Because you sued us. I'm supposed to tell you to talk to our attorney, Mr Johnson". Why all the deception, regarding the reasons for the shut-off of $8,000 in PINs, Mr Prager? Page 20 After your assistant told me to talk to your "Independent council"... Limit LLC owner, David Johnson, wrote back on May 17, 1999, "Dear Mr Guthrie, This is to acknowledge receipt of telephone and E-mail messages of May 14, 1999 to which I will not respond. I am council to ACMI but not an officer, director or employee of ACMI and have no knowledge of the substance of the issues raised in your messages." Why the deception and outright lies by David Johnson, Mr Prager? Buying time as usual? Despite his denial, it is true that on May 17, 1999, Mr David Johnson was, in fact, one of six partnership members in Limit, LLC, dba ACMI (per TN state records showing him as such on March 30, 1999); And that Mr Johnson had always been an owner/ partner in Limit LLC, dba ACMI--from the beginning of the company, with his "Wolf River Investment" company or individually? And why, just before the summer 1999 closing of the ACMI office in Memphis, did "Millie" send me a FedEx packet, containing $8,000 in 12-minute phonecard PINS-- more than compensating me for the PINS that had been shut off in April? Did you authorize her to compensate me for those PINs? Thank you if you did. Thank her for me-- if you did not! And how was that additional $8,000 in PINs accounted for? It looks like PINs were just created and shut off at ACMI, at will-- with no reason needed. And how were the other PINS, shut off on April 5, 1999 accounted for? (the ones belonging to the many vendors who had prepaid for them? At this time, a number of ACMI agents in Chicago want to know what happened to their PINS. Did any ACMI holding company shareholders realize a profit windfall of (non reportable) deferred revenue--from the deactivation of pre-paid PINS on ANY date ? A week after the PIN shutoff, on April 15, 1999 (tax day--which seems to be a special day for changes in ACMI) Joan Looper (consultant LOOP) received a commission payment check from ACMI (on Regions Bank, Memphis Acct # 050117 082000109 80 2314 8534) for the sale of Marilyn Monroe phonecards, produced by Laser Radio. Why was she paid then? How many other sales of Marilyn phonecards occured in 1999? Joan Looper and I did the EXACT SAME DEAL: She brought me to ACMI; And she was owed 5% and Laser Radio, 15%-- for every Marilyn card sale. Why was she handled differently than Laser Radio? Schoolyard punk reasons? Fraud-against Conquest and ENET: Listing her and other NON active agents? Page 21 Laser Radio was declared a PIN creditor...and the next year, she's getting payment checks. What accounting of her --ever-- made her a "Limit, LLC" asset? What company paid Laser Radio, into 1998? PIN or Limit, LLC? Why did the ENET 10-Q, filed in May, 1999 not list the $1 million note assumption, by ENET (as it was first described, on Monday Oct 26, 1998 in an ENET press release) The 10-Q is quoted: The purchase price (the "Purchase Price") for the Assets shall be payable by the issuance of Two Million Five Hundred Thousand (2,500,000) unregistered shares of ENET common stock, par value $0.01, ("ENET Common Stock"), 1,000,000 shares to be delivered at Closing and 1,500,000 shares ("Allocable Shares") to Seller subject to adjustment as provided in Section 1.8 below. How many shares of ENET stock (or ENETA or any other listed name for stock, associated with ANY holding company, dba Equalnet) did you and the owners of Limit LLC get in 1998 and 1999--either individually or as a group of owners of Limit LLC? What happened to those shares of stock? Year 2000 In June, 2000, Limit LLC sold 362,000 shares of ENET shares-- following a "lockup" that was imposed on the stock sale by ENET in August, 1999. The six members of Limit LLC, realized a profit of apx $50,000 from this sale. Where are the rest of the shares of ENET stock, Mr Prager? Did you and the other members of Limit, violate the lockup period and individually sell ( or use your various holding companies to sell) the other 700,000 shares that Limit received in 1999? Did you violate SEC rules and sell the stock, individually-- before the lockup period had expired? I have a hard time believeing that you were all good people-- for a change-- and kept hundreds of thousands of dollars worth of stock off the market. Not after the way you've done everything else! ` Page 22 Because here's yet another example of your deception and lies, written on Sept. 25, 2000: On that date, you responded, in writing, to at least two complaints--against you and Bill Anderton and others "dba ACMI"-- filed with the TN Division of Consumer Affairs. To complaintants,Stephanie Peck and Lee Bjork, you wrote the exact same thing, "I am quite sorry to hear of your dissatisfaction with the ACMI marketing opportunity. As I am sure thet you are aware, ACMI was a division of Equalnet Communications Corp and then they closed the Memphis office all of the consultant files were forwarded to their office in Houston TX." Your answer appears to me to be deceptive and in violation of the TN Consumer Protection Act: TN state law 47-18-104 (3) Causing likelihood of confusion or misunderstanding as the affiliation, connection or association with, or certification, by another. I was told in December,1999 by the legal council of ENET, Mr Dean Fisher, that in August of 1999, the "ACMI assets" were transferred back to "the same people in Memphis"(one of the nicer ways that Mr Fisher referred to you and the others at ACMI). In fact, August 1999 was also when the ACMI office was closed by ACMI holding company owners-- not ENET-- when the owners of ACMI threw in the towel and moved to "AFE" offices, 1661 International Drive, Suite 400 Memphis. The closing of the office and phone for "ACMI" had nothing to do with ENET. It was you and the other owners of ACMI who left hundreds of ACMI agents completely cold--without notice. What concerns me in 2000 is that in September (around the 13th) all of the PINs that I bought from ACMI from 1994, stopped working on the platform in Houston. As I understand it, they bought the switch asset-- but not the carrier transport liabilities for any of the ACMI PINS that were stored in the system. Please confirm that it was the cause of Limit, LLC-- not paying for the transport of ACMI PIN traffic-- that led to the termination of ACMI phonecard provisioning on or about September 13, 2000. Or give some other detailed reason. And is it true that on Sept 15, 2000 the state of TN revoked the corporate standing of Limit, LLC? What is the status of Limit, LLC? What is your role with Limit, LLC today? Page 23 And what responsibility does :Limit have for tax years 1999 and 2000-- for the transport-provisioning of the switch in Houston and the payment of all taxes (income and excise) on the transported PIN minutes.. or the accounting of them as inactive PINs? I estimate that my company still had about $200 in PINs, unused on the system in September. Keep the change. I'm not looking for money here, just answers. And finally, Mr Prager, what company has maintained the escrow accounts, ethically needed to pay for both the transport and associated taxes of the "contingent liabilities" associated with those "ACMI assets"? Before he died this year of cancer, Steve Lowenstein explained to me what he thought ACMI was up to with probable non-reporting of deferred phonecard revenues (especially relative to taxation) and the probably-inappropriate handling of monies (ie escrow) needed to provision the phonecard switch and associated contingent liabilities. You might remember Steve: "Pirolo and company bought thousands of dollars worth of cards from me on a vague Purchase order (that may or may not hold up in court). They did not pay the $6,000 tab on that one. "They talked me into introducing them to the people at Charlotte Motor Speedway. I made them look like the best thing since sliced bread. After that, Pirolo and company didn't answer my calls. They talked CMS into an exclusive hitch and cut me out. This was after they sent me a draft contract which I signed and they didn't. All a bit vague to you but, very explicite to me". Mr Prager, this complaint against you and the others at ACMI now ends... on that note of betrayal of trust from Steve Lowenstein. I think it's perfectly written-- not vague at all...just all, all too familiar and an EXPLETIVE--if not explicite-- description of you and the others of ACMI. When he wrote that on January 9, 1998, he had but two years to live... in the pain of his body; And the pain that grows out of betrayal in the trust that people like me and Steve placed in ACMI accounting and business practices; and the conduct of people like you, Kevin Pirolo and Steve Adelman... that poor, regional-dialect-mimicing con man of a licensed lawyer and "ACMI vice president"...who I'm sure now, was the unlucky one, chosen to act like "Guthrie's friend"... stalling the bastard in Wyoming for more time. Well, THAT lying bastard is now hiding out in Ojai California-- hiding behind his wife's name. And as for all I know, the rest of you do the same: With your personal assets, your finances, your home ownership. I think all of you at ACMI sleep in a bed of lies each night and dream nothing but the next-day's deceptions. Page 24 Again: Don't-- any of you at ACMI-- ever let your wishes for me and an early grave ever get the better of you. Your pool cue manufacturing buddies in MS and Anderton's gun pals (in AZ and ?) are a LONG way from the law in Albany County Wyoming Now it's your turn, to answer, Sir. As I've received from (you and David Johnson) in the past (with stupid- means- predictable regularity) I'll look forward to your reply to this complaint: It'll probably be a dismissive paragraph: Combining pseudo "Shock at the tone of your letter, Mr Guthrie" or "What we'd expect from a dangerous, murder-threatening survivalist from Wyoming"... combined with the usual hints of pending, retaliatory "appropriate legal action" and (just for fun) ANY defamation of me to try and throw "the authorities" off... the scent of you and the ACMI leadershi. Best wishes for this festive holiday season, Mr Prager! Very truly yours, John A. Guthrie III still the president of Laser Radio, Inc PS: And thank you also TN Board of Accountancy for your help in this "ACMI matter" ############### END ################