SEGOES Liquidators lose unanimous decision in Supreme Court of Uruguay!Ken Krys and his team of unscrupulous affiliates, RSM Cayman Islands was handed a severe blow in October, 2, 2007 when the Supreme Court of Uruguay after deliberating for almost two years ruled against the enforcement of Cayman Islands legal judgements citing a lack of basic rights and basic legal principles, such as a "right to a defense"!
As difficult as it is too believe, in the Cayman Islands, a trail and judgement can be obtained against another person without that person having a right to a defense. The Uruguay Supreme Court, ruled that a right to a defense is paramount and must exist without conditions.
The Supreme Court stated, "The principles on which (the Cayman Islands) these proceedings are grounded as well as the right of defense are part of the public order in Uruguay constituting a real "ius gentium". The right of defense establishes that the statements of each party should be produced before the judge and that the verification therof by the judge shall be effective and legal."
Further, the Supreme Court said, the "
Judgement dated Decemeber 2, 2005 was decreed under a Summary Procedure wherein the burden of proof was inverted on the grounds of an assertion of the defendant based on a simple suspicion. Judgement was pronounced on the basis of inferences from the affidavits produced by the liquidators.""It must be taken into account that in order to elucidate the matter subexamine the current law of the state of origin of the judgements should be applied, "lex Causae", as stated by the referred legal provision, which means that the factual assumptions whereto the rule is to be applicable should result sufficiently proved from the proceedings. This is not the case, upon the analysis of the judgements the recognition whereof is sought, neither the issue nor rules applicable are explicit.
The Plaintiffs statements are not sufficient who only asserted what should have been proved. Such assertions are not sufficiently supported by the evidence produced in the proceedings."
Therefore as explained by the Supreme Court of Uruguay, the burden of proof in The Cayman Islands does not exist for the accuser or Plaintiff, (Ken Krys and the SEGOES Liquidators) only for the defendant.
Furthermore, a simple right to a defense in Cayman does not exist and was not provided to anyone that the SEGOES liquidators have sued!!!"The High Court of Justice by unanimous decision of its members, sharing the opinion of the participating Deputy Court Attorney and Court Attorney in Charge, respectively shall dismiss the petition on the grounds that the requirements set forth by C.G.P. Article 539 for the enforcement of foreign judgements in our country have not been complied with."
Qualifications or observations made of the procedures carried out in the Cayman Islands are not intended to judge the correctness or convenience therof. However, when the enforcement of a foreign judgement is sought, the receiving State, without going to the merit of the case, is entitled to analyze whether certain basic procedural principles, which are an integral part of its own legal structure, have been complied with.
The clear infringements to the due process of law herein referred to prevent the court from accepting the application filed for the enforcement of the judgements thus obtained, constituting violation of international public order within the scope and meaning herein before examined."
Ken Krys continues to lie to the press and the Cayman Courts with no consequence!
It comes as no great surprise in the scheme of things when criminals such as Myron Gushlak are controlling the actions of Ken Krys and the liquidators that inequities and injustices will arise. One of Mr. Krys’s most shameful acts has been his deliberate disregard for separating the various classes of SEGOES Creditors and distinguishing their claims by the legal contractual Agreements that exist with SEGOES.
The creditors are comprised of the following classes: The SEGOES Bond Fund, The SEGOES Trust Ltd., SEGOES Holdings Ltd. Investors, Fully Disclosed Accounts and some minor general claims. Clients of each of these entities have different rights and Agreements in place with the SEGOES Securities, Cayman. Mr. Krys has commingled the rights of all classes and ignored the different contractual agreements that exist.
To begin with, The SEGOES Bond Fund was a British Virgin Islands entity in which the investors signed a Subscription Agreement and acknowledged in this Agreement that there investment was speculative and that they could lose their entire investment. It is obviously not fair and equitable to treat these creditors as creditors of SEGOES Securities Ltd. Cayman when they were investors in a completely different entity that carried a different risk profile.
The clients of the SEGOES Trust Ltd. a Belize Trust, signed a new account Agreement acknowledging that their funds were not directly with SEGOES Cayman. It is obviously not fair for this class of clients to be creditors of SEGOES Cayman as well.
SEGOES Holdings Ltd. Cayman was the Holding Company for SEGOES Securities Ltd. Cayman. This entity had some equity investors that signed Subscription Agreements and received lengthy Investment Memorandum acknowledging that their investment was speculative in nature and that they could lose their entire investment. Again it is obviously not fair to treat these people as creditors of SEGOES Securities ltd.
The only true creditors and clients of SEGOES are the Fully Disclosed Accounts. These clients have accounts that are held in their own name with SEGOES and the funds are directly with an institution in the United States. These clients would have no claim if Mr. Krys and his criminal cohorts were not attempting to seize their funds.
Mr. Krys’s motives for commingling the investor’s claims are clear. Mr. Krys since being appointed by the courts in May, 2005 as the Official Liquidators of SEGOES Securities Ltd. Cayman has spent in excess of USD $1.5 million. If he were to handle the claims of creditors in a fair and just manner, he would not have enough funds to pay his absurd fees. The amount of money that Mr. Krys has spent is a travesty and clearly shows that he has no concern or care for the creditors that he supposedly represents.
More than likely, the Mr. Krys’s lies will only be sorted out and exposed when the case is heard in the U.K. Court at the Privy Council. The Cayman Courts appear to be more interested in the false headlines of the newspapers generated as a result of Mr. Krys's lies than in the truth and representing justice!
FONTANETTA SUED IN FLORIDA COURT
Some SEGOES clients have figured out that they can not wait around for the Cayman Court or the Liquidators to decide anything and then in the end receive nothing. In fact the Liquidators are asking the clients to ante up more money for the purpose of allowing the liquidators to earn more fees and allow lawyers to waste more of the creditor’s funds. These SEGOES clients have brought legal action in a US Court in Florida for damages against the person who perpetuated the SEGOES fraud James Fontanetta. It is amazing that these SEGOES clients can figure out who perpetuated the fraud and that Ken Krys does not have a clue. Everyone but Krys knows that James Fontanetta was running the day to day operations of SEGOES. Krys is now seeking to quash this Court action in the United States. Behind the scenes he has attempted to get Fontanetta to testify by granting immunity to this individual who hatched the fraud with Gushlak. The best opportunity to discover who and how the fraud was carried out is in the US Court not in the corrupt Cayman Islands. Ken Krys is afraid of what testimony might be discovered if the lawsuit against Fontanetta goes forward. Krys cannot risk evidence being brought against Fontanetta in the United States that will no doubt idly contradict the lies Fontanetta is making in Cayman. Fontanetta did not even bother to defend himself in Cayman. This allows him to lie at will at a later date with Krys’s blessing.
Ken Krys and his Three Ring Circus!Recent disclosure from the US Bankruptcy Court in Miami shows explicitly the Cayman legal system is now participating in the Fraud at SEGOES. The Fraud at SEGOES was originally perpetrated by James Fontanetta and Myron Gushlak. Disclosure is now available from the US Bankruptcy Court for the Synergy/Penson April Statement from SEGOES Trust Ltd. for the period of 01/04/05 to 30/04/05.
James Fontanetta is shown as the Trustee on the SEGOES Trust statement. Almost all of the purchases in the account for the months of March and April are in the penny stocks promoted by Myron Gushlak. Once the power to subpoena and the ability to take depositions is obtained in the US, it will be shown unequivocally how the fraud was perpetrated between Fontanetta and Gushlak.
What would be comical if it was not so tragic is that Ken Krys and the JOL’s through their Washington D.C. counsel Baach Robinson & Lewis and one Sarah Knapp wrote a letter also on file with the US Bankruptcy Court threatening legal action and attempting to extort the Synergy Investment Group. Sarah Knapp demands in her letter of Sept. 12, 2005 to Synergy that Synergy immediately repurchase 13,645,000 shares of QMMG. Ms. Knapp alleges that the QMMG shares were sold by Synergy in recent months. What is devastating to the liquidation case is the April statement shows less than 3.6 million shares of QMMG were held. James Fontanetta was suspended from trading by Synergy for manipulating the stocks of AMZB and QMMG.
In late March and early April 2005 most of QMMG shares were purchased at a price between $.80 to $.90 cents per share. QMMG now trades at around $.10 cents per share! To complete the fraud on Synergy the liquidators allege they have a buyer for all the 13.6 million shares of QMMG. This stock is a Gushlak and Hoffman penny stock promotion without any substance as usual. It is more than likely that Gushlak or his cronies are behind this arrangement.
Gushlak over the years has proven himself to be the Lex Luther of Penny stock frauds and trades. He sports a US arrest and a recent indictment for Securities Fraud. What is novel in the present scam with SEGOES is that Gushlak was able to obtain his own and his partners, Gene Hoffman’s election to the liquidation committee; all of this with the approval of Ken Krys, Ross McDonough and a fraudulent legal system. Welcome to the movie “The Firm” version 2005.
If there was any doubt as to the fact the Gushlak and Hoffman are controlling the liquidation process, this letter by Sarah Knapp is proof. I contacted Synergy to discuss the letter and their opinion of the liquidation process in Cayman, the individual responded, “It is an absolute shock that the Cayman liquidators are trying to blame John Kaweske when he had no involvement. Allowing Gushlak and Hoffman to control the liquidation process shows the world that the Cayman legal system is a three ring circus.”
It should be noted for emphasis that James Fontanetta is the Trustee for the SEGOES Trust and had sole responsibility for all trading at Synergy. This can be unequivocally proven! It is doubtful that the facts will ever see the light of day in the Cayman Courts; these truths will prevail in the US Courts where Mr. Krys is deafly afraid.
Most of the Cayman legal establishment with the help of the National Enquirer mentality of the media has been totally blinded by the lies and misinformation being promulgated by Mr. Krys. As usual they can only traffic in slander because this is what Cayman’s society and the Legal system demands. This kind of slander would never be tolerated by a US Court. In the Cayman Islands Court System the prosecuted are even denied the right to defense in preliminary legal actions. One cannot subpoena or take depositions (Circa Soviet Union Justice).
All of the fraud that occurred with SEGOES occurred through the Belize Trust and through the actions of James Fontanetta, Myron Gushlak and more than likely his partner Gene Hoffman. This fraud occurred through the SEGOES Trust Ltd. a Belize entity. This is a fact!
If you are still uncertain or confused as to the facts, then all you need to do is to retrieve the documents on file with the US Bankruptcy Court. You will be enlightened!
Ken Krys aligns himself with Criminals! Defends the same criminals and is covering up the truth!
The following is an excerpt from an article on another website:
"I have done some research of my own, using only the internet and search engines as a resource and have learned the following about the committee members:
Myron Gushlak:Previously arrested for fraud and for bribing people to buy penny stocks. He is notoriously mentioned throughout the internet as a person whom has deceived many people with his various scams and penny stocks.
Gene Hoffman: The fact that he is Myron Gushlak's partner and spokesperson when he is under attack leads to severe doubt about his character and integrity.
Michael Mouyal:Criminal charges have been brought against Mr. Mouyal by the government of Canada for operating boiler room telemarketing scams utilizing deceptive tactics by preying upon not for profit organizations.
Alan Carlisle:Mr. Carlise was both the operations and compliance manager for SEGOES. He worked for Mr. Kaweske's previous Company as well. How can a previous employee be on the Committee? I am also doubtful that he is a legitimate creditor. If it is true as Petym suggest that he was advanced funds. How is he owed money? Was his claim researched and verified? This would be easy to verify the amount of money he received from the SEGOES's bank accounts and review his employment contract to see if the numbers match.
In summation, you have two criminals, and two highly suspect individuals on the committee!
Most recently Mr. Ken Krys was reprimanded by the Cayman Courts for lying and misleading the Court. He was found guilty of acting in a manner unbecoming of a liquidator.
He is wasting our funds in frivlous actions that will only deepen his own purse. He has no desire to find out the truth.
Dear Fellow SEGOES Creditor:
ON MAY 20, 2005 by order of the Grand Court of the Cayman Islands (Madame Justice Levers presiding) Messrs. Krys and Stride were appointed as Joint Official Liquidators (“JOLs”) of the SEGOES.
Mr. Krys upon being appointed as the JOL was provided by Mr. Kaweske with an affidavit and un-refuted evidence identifying Mr. Myron Gushlak’s involvement to defraud the clients of SEGOES. This is not the first time Mr. Gushlak has defrauded clients of investment firms. Anyone can research his previous activities and the more than ten investment firms that have various complaints and actions against Mr. Gushlak in the United States and Canada for similar types of fraud.
One of Mr. Krys’s first tasks after being appointed as the JOL was to hire legal counsel that was supposed to be independent and non-conflicted. Whom did Mr. Krys retain? He retained the services of Campbells, Attorney’s at law. Campbells was also the law firm that represented Mr. Myron Gushlak for several years, advising him on the formation of various offshore companies that were utilized in his previous frauds. How is it that Mr. Krys, a supposedly unbiased person in a Country where there are more lawyers than Banks retained the services of the same law firm as Myron Gushlak? A man who was even arrested for fraud in the United States
Another of Mr. Krys’s tasks was to retain a law firm on behalf of the creditors. Mr. Krys sought the services of Mr. Peter Broadhurst attorney at Law. Mr. Broadhurst was the previous counsel for SEGOES and formed, SEGOES Holdings Ltd. and advised the Company on general business affairs for the last two years. In countries such as United Kingdom, Canada or United States this would clearly be a conflict of interest.
Most recently, the JOL’s created a liquidation committee to advise them on the liquidation of SEGOES. The roster of this committee is unfortunately just as disturbing as Mr. Krys’s behavior. Mr. Myron Gushlak and his partner Gene Hoffman have been appointed, the creators and beneficiary’s of the scheme that defrauded SEGOES and its customers. Michael Moyual was arrested in Canada for fraud is also on the committee. Alan Carlise, the previous Operations Manager of SEGOES, owes SEGOES money however he filed a fraudulent claim to be appointed to the committee. It appears the only legitimate person on the committee is Jack Benz.
Mr. Krys has clearly demonstrated that he believes he his above the law and can act in any manner he desires. He has shown no discretion for ethics.
In a conference call on June 27, 2005 Mr. Krys verbalized his desire and intent to treat all SEGOES clients the same, both the Fully Disclosed Accounts and the Pooled Accounts. Fully disclosed customers provided information to the custodian of their assets, First Southwest specifically to segregate their account and to be provided additional protection and security. Fully disclosed customers have rights in the United States. There is an upcoming hearing in the United States bankruptcy courts on July 14, 2005 whereby Mr. Krys is attempting to take control of all the Fully Disclosed Accounts.
Some Fully Disclosed customers have retained legal counsel in the United States to prevent this. One particular fully disclosed customer, threatened legal action against First Southwest and they released his funds. One thing is certain, if you are a fully disclosed customer, you need to retain US legal counsel immediately to represent you in the hearing on the 14th of July.
One most only ask, who would benefit the most if all accounts were to fall under the control and guise of Mr. Krys. The answer of course, Myron Gushlak, the criminal who created this fraud against the real creditors of SEGOES.
Sincerely,
Fellow Creditor
