Over the last several years, I have been following the story of "local boy done good", Tom Scozzafava. For those of you who may not know, Tom is the young CEO of Seaway Valley Capital, the company that merged the Wisebuys and Hacketts stores last year, and is currently completing the process of merging with North Country Hospitality. I was very impressed when I first heard of Tom returning to his roots and his plan for developing a holding company in an area of the state that has typically been economically depressed. I confidently invested a goodly sum of money in him and his vision for the North Country, and have watched him quickly grow the company from nothing.
But now after 9 months, cracks are beginning to appear in the foundation.
It seems in all the whirlwind of the company's recent financial activity, Mr. Scozzafava has forgotten the common shareholders...you know, the only ones that are paying for all his high flyin', wheelin' and dealin'. There are genuine concerns of how all of his acquisitions are going to be paid for, and the methods of financing being used. The market has responded by crushing the price of common shares. Common shareholders, in some cases, have seen the stock price drop by as much as 95% since last fall. The share price today is less than 1/2 a penny, while outstanding shares have increased 600% since July of last year. In my opinion, it appears that the insiders, Mr. Scozzafava, his sister Dede (the State Assemblywoman), and various other family members and friends, are the only ones who stand to make anything on this venture. While protecting their own interests in the firm, IT APPEARS that they are using common shareholders to pay for millions of dollars of debt reduction carried over to Seaway from several earlier unprofitable business arrangements that Mr. Scozzafava had been involved in several years ago. If that wasn't bad enough, Mr. Scozzafava seems to be either unable or unwilling to communicate with anyone who wants a straight answer about where this is all going to end.
Don't get me wrong - what Mr. Scozzafava is doing may be above board, but there are enough unanswered questions to set off more than a few alarms. Even the market bears witness that few think much of Tom's corporate plan; the relentless erosion of the share price has been going on now for 7 months. If Mr. Scozzafava continues to avoid answering the difficult questions, then shareholder lawsuits are certain to surface in the months ahead, and the cloud of uncertainty will spread from Tom to his sister, Dede, who is a minority partner in the firm.
If anyone up there in the beautiful North Country of upstate New York sees Tom, please inform him that he has the fiduciary responsibility to step up to the plate and address shareholder concerns. A shareholder's meeting would be a welcome venue to clear up these issues and restore investor confidence in the company's CEO.
(From a SWVC Shareholder... Ouch! I am sure DD is going to have a field day with this one.)
UPDATE:
This is from the contributor to this interesting post, which has sparked a fair amount of discussion I might add. Ahhhh, democracy in action! Here it is: "I have spoken with Ms. Scozzafava and need to correct information on the original letter (phrases not being factual). Not sure if that is possible, but I would appreciate whatever you recommend.
I have also posted the following retraction in the comments section of the blog:
Dede Scozzafava has no controlling interest in Seaway Capital, nor is she involved in any of the operations of the company. Her investment in the company is strictly passive in nature. I apologize to Ms. Scozzafava and to the readers of this blog for being uninformed about her role in the company."
Sincerely,
Timothy Mercier
Champaign, Illinois
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107 comments:
Could this only be the tip of the iceberg of the Scozzafava story.
Scozzafava has now brought on board a gentleman by the name of Christoper M. Swartz of Jreck fame.
North Country residents should have no problem remembering those names from the mid 90s.
If one was to research the Swartz name you find a trail of stories of common shareholders holding the bag on 10's of millions of dollars of busted investment dreams along with shareholder lawsuits, and even a jail term for bank fraud committed by Jefferson National bank director, H. Thomas Swartz, who is the father of Chris, and coincidentally, was also owner of Jreck subs at the time. There have always been questions as to how son Christopher actually came to control the Jreck organization, but suffice to say, it is not clear cut by any stretch of the imagination.
I ask your readers, why would Tom Scozzafava hook-up with Chris Swartz who obviously has a string of penny stocks where he's left the common shareholders drowning in his wake and such a questionable family history? Why? It all seemed like the Scozzafavas had big dreams for the future, but have seemingly gotten mixed up with a less-than-fresh grouping recently.
Will the Scozzafavas now try to distance themselves from the organization by passing the reigns to Chris Swartz? Or will Tom right this ship, return the proper ownership to his common shareholders, and once again become a C.E.O. that communicates with his shareholders.
As the author of the original letter, I must make a correction in regarding Ms. Scozzafava's involvement in the company.
Ms. Scozzafava has no controlling interest in Seway Capital, nor is she involved in any of the operations of the company. Her investment in the company is strictly passive in nature. I apologize to Ms. Scozzafava and to the readers of this blog for that error.
Sincerely,
Timothy Mercier
I know Tom Scozzafava to be an honest, hardworking good business and family man. His businesses will do well and he will do right by his shareholders and community.
I don't know how you define communication. Check the press releases and the SEC filings - Tom always communicates with his shareholders - everything he announces he actually does. Tommy is a stand-up guy.
Who is posting this? Thomas Nast or Timothy Mercier?
It is important to get information correct, ESPECIALLY when posting about people.
DD is the best elected official we have and TOM IS THE BOMB. The people posting this negative garbage about DD and Tom need to check the facts - and get a life.
I challenge the negative posters to a dual.
The Swartz family is a well respected family in the community. Chris and Eric have done well and help many people in the community. I don't want to get into the father's charges but to transfer the sins of the father to the sons shows an ignorant poster.
Why don't you know what you are talking about before you post.
JJ
Thomas Nast was a known pedophile.
Tom is not an upstate "old boy" - he is only 34 years old, and handsome.
Totally limp. "I am the most famous political satirist in New York State history. I like old-style backroom politics like from the 19th Century." ????? Give it a break. Get original.
This is a quote from Dede's own website.
"Dede is the Chief Operationg Officer for Seaway Capital Partners and Corporate Secretary for Wise Buys Stores."
This would seem to be an important position in the management of the company that she apparently at least works with and for that is owned by her brother in large part.
http://www.dedescozzafava.com/about_dede.html
The SWVC CEO made common shareholders pay $20+ Million for
a toxic-debt-stuffed shell, for no valid reason for SWVC
common shareholders; which is a blatant violation of Any
CEO's Fiduciary Responsibilities. A clean shell could have
easily been bought, or built from scratch, for less than
1% of that $20+ Million cost.
And, the story about not 'understanding' the terms of the
'toxic' convertible notes, and the SWVC lawyers 'overlooking' the fine print,
is total BS, at best. And, grounds for a common [and
Preferred] shareholder lawsuit, at least.
And, if the CEO is personally "getting something in return" ,
or hiding it in some other vehicle, that is Not owned 100%
by SWVC, that is a crime, And, he is personally financially
responsible for all common shareholder losses, and should
be serving 1+ years.
And, if the CEO is hiding it where SWVC might eventually get
all or part of it, then all of SWVC's SEC Filings, so far,
are fraudulent.
And, even if All of the $20+ Million eventually 'reappears'
in SWVC, and is All given to Only common shareholders, [who
paid for All of it], as a 'special dividend' , it is still
Not Legal; Because, some of the common shareholders who paid
for the illegal 'mistake' , have already sold out, at huge
losses.
In our opinion, [and we are not lawyers, or accountants],
SWVC + its CEO + lawyers + accountants + Directors, are
toast, personally + financially + possibly criminally, if
any Lawsuit [Class Action, or otherwise] is filed by any
common shareholder who ever lost a penny, due to this
deliberate deception, and Total Lack of Fiduciary
Responsibility, and Lack of Disclosure in Any SEC Filing.
Sincerely. But, just more opinions, based on Facts.
Common shareholders will be lucky to collect 1% of
their losses, if they win, which will take ~2-5 years.
Copies of the above info, as with all of our info,
is always sent to All of those U.S.-Taxpayer-Paid Authorities,
that are paid to care + fix exactly these kinds of 'problems',
and All of those who deliberately cause them; including the
transparent 'outside' helpers. The SWVC 'game' is still
continuing, and has already cost U.S. Taxpayers more than
$30 Million, in less than 10 months. [Not counting several
other similar brick+mortar 'companies' , that are pollinated
daily, by the same overlapping 'outsiders'.]
SWVC should be the easiest. Only 1 guy was the CEO + Total
Board Of Directors, during the entire set-up, and sting of
$30+ Million to ONLY the common 'shareholders. And, it Files
with the SEC, and has a U.S. HQ, and Incorporation Papers,
and Assets, and Personal Residences, and even includes
friends + family, that are personally profiting, and DON'T
OWN ANY COMMON SHARES, while ALL COMMON 'SHAREHOLDERS ARE
LOSING 50-95% , IN JUST THE FIRST 10 MONTHS OF SWVC. And,
the personal profiteers include many who should 'know better',
including, a hedge-fund operator, and a BK specialist, and
a local elected official. And, the FBI has already been
investigating [for several months], due to a major Credit-Card
and Identity Theft, IN A PROPERTY THAT SWVC CONTROLS. And,
SWVC still has NEVER SAID THAT ANY CUTSOMER 'LOSSES' ARE
EVEN POSSIBLY COVERED BY ANY INSURANCE.
Just try to guess how many U.S. Agencies are building files
regarding the SWVC Insiders, and most-helpful 'outsiders' ,
and the overlapping executives with the similar 'companies'.
What is worse is that Dede is a pro-abort, who is one of only a small number of NY GOP officials to be officially endorsed by Planned Parenthood.
I wonder if she owns or has invested in PP at all? She does not respect human life, and it is clear that she only has the R behind her name so that she can be an elected official and so that she can further her family's financial interests. She is certainly no Republican.
You want to speculate why Will Barclay didn't win SD48 look no further than his right to life record... These liberal to moderate Republicans are all of the same ilk, and it's not good.
The History of newly announced SWVC COO Chris Swartz and Family.
Is this a history of "successes" or maybe not quite all that? All I know it's quite a family of newsworthy stories. Upstate New Yorkers, you've got to be pretty proud of raising, neighboring, and supporting in business, such fine folks.
I would think that the longtime SWVC (Seaway Valley Capital Corp) executives and Wisebuys co-founders ( Tom Scozzafava, Deidre Scozzafava and Co. ) would have some explaining to do as to why they would bring aboard a Mr. Chris Swartz, as Seaway's Newly appointed Chief Operating Officer (COO). Not to mention that SWVC bought out Mr. Swartz holdings in companies and using Christ Swartz' FLORIDA OWNED business to attempt to cost save the original Seaway holdings. That could possibly be a bit too connected, especially when you bring into consideration the Florida business and bankruptcy laws.
Mr. Swartz as you will see below seems to have neither a grip on morality or the any respect for the law. However that's my opinion, but read on, I'll let you decide.
Read these facts from your own Watertown Daily archives and a few other sources and decide for yourselves.
Feel free to post a comment or two afterward. I strongly urge you to do so.
WATERTOWN DAILY TIMES
FRAUD SUIT FILED ON JRECK SUBS<
"WORTHLESS' STOCK IN SOUTH AT ISSUE
Date: Sunday, August 27, 2000
Section: Local
Edition: Both
Page: B1
By Ed Perkins
Times Staff Writer
Entrepreneur Christopher M. Swartz and his Jreck Subs Group Inc., both born in the Watertown area, are being accused of securities fraud in a $4.5 million federal lawsuit filed by minority shareholders of a company acquired in 1998.
Jreck gobbled up the Li'l Dino Bagel Deli & Grille chain, a successful franchise with 39 stores in North Carolina and three other southeastern states. Apparently, no cash changed hands in the deal negotiated in 1997. Publicly, there was a stock swap and assumption of a $400,000 debt.But 25 minority stockholders in Li'l Dino say they are victims of a back-room corporate deal that left them with virtually worthless Jreck stock. In the meantime, Li'l Dino insiders were promised a $3.5 million golden parachute as an inducement to sell, the stockholders allege.
"Whoever got that stock is just sucking air," said Randolph M. James, a North Carolina attorney who represents the Li'l Dino minority shareholders.
Mr. Swartz, whose company recently changed names from Jreck Subs Group Inc. to Ultimate Franchise Systems Inc., denied the allegations in a recent telephone interview from his Longwood, Fla., office. He acknowledged Jreck stock prices are "terrible" but added that restaurants everywhere are suffering the same fate. Mr. Swartz predicted Jreck stockholders will see the value of the company's shares rise as restaurant stocks in general heat up.
Mr. Swartz said the lawsuit is without merit and that actions by his firm in the Li'l Dino deal were prudent.
"We're confident the court is going to find it that way," he said.
He said he could not talk about specifics in the case.
Mr. James, on the other hand, said he has "miles" of tape recordings made by Li'l Dino insider Mark D. Hassett to prove back-room deals ultimately hurt the minority stockholders he represents. Mr. Hassett, dubbed a whistle-blower by the lawsuit, was fired and is seeking compensation for that. He also holds 75,984 shares.
Led by G. Michael Theodore, minority shareholders filed a lawsuit in U.S. District Court, Greensboro, N.C., against Mr. Swartz and Jreck. Their suit also names Li'l Dino officer Larry C. Barrett and a few other insiders of both corporations.
The lawsuit charges securities fraud, misappropriation of corporate opportunities and breach of fiduciary duties. It says there were violations of securities law, North Carolina laws and the federal Racketeer Influenced and Corrupt Organizations Act, known as the RICO statute.
It is also seeking punitive damages, which could treble any future award.
The lawsuit also raises the name of Jreck franchise promoter H. Thomas Swartz, Christopher's father, who built the Jreck Subs Inc. franchise in Watertown. It names him as a possible behind-the-scenes controlling force in the national Jreck Subs Group Inc. firm. Mr. Swartz, a former attorney, was sent to federal prison and disbarred for his dealings with the failed Jefferson National Bank.
No evidence of Thomas Swartz's involvement in Jreck Subs Group Inc. has surfaced so far, and Christopher Swartz denies it exists.
"My father simply isn't involved," he said.
The Li'l Dino minority shareholders are not the first to claim a Jreck deal left them with worthless stock.
In an earlier stock offering, Jreck promoted shares for Western Fast Foods Inc. in Northern New York with the announced goal of having it publicly traded on Wall Street. The "paper" company was formed in 1984 to raise money to open Jreck Subs shops in New York's Monroe and Erie counties and operate stores elsewhere.
About 1,300 people bought the penny stock. Because it never made it to Wall Street, shareholders could not sell it unless they found buyers themselves.
The value of Jreck stock, now listed under the symbol for Ultimate Franchise Systems Inc., UFSI.OB, on the NASDAQ bulletin board, was being traded at 20 cents a share Friday. The stock's highs in the last three years have been $8.25 in 1997, $3.13 in 1998 and 63 cents in 1999.
Jreck plans to fight the Li'l Dino lawsuit, asking that the case be dismissed outright and seeking sanctions. According to Mr. James, Jreck's motion to dismiss is on procedural grounds as attorneys seek information from the opposing sides.
In an answer filed in North Carolina, Jreck says that a "General Release Agreement" was signed on behalf of the minority stockholders on July 30, 1999, so they cannot sue. It was just two days before the lawsuit was filed. Jreck's answer does not say who signed it.
The company also says it was cleared of wrongdoing in the Li'l Dino buyout in a hearing conducted by the North Carolina Department of State, at Jreck's request, to determine the fairness of the stock swap. Mr. Theodore and Mr. Hassett alleged a diversion of assets to a dummy corporation named "ABC Inc."
A deputy securities administrator in the North Carolina Department of State, David S. Massey, ruled there was no credible evidence that such a plan existed. Nor was there evidence that Li'l Dino assets were worth any more than was offered, he said.
"They said it was a fair transaction," Mr. Swartz said.
The lawsuit, however, alleges that Jreck insiders lied or, at least, withheld information at the hearing.
Represented by attorney Benjamin N. Thompson, North Carolina, Jreck denied "any conspiracy or untruthful testimony at the fairness hearing."
Jreck said the minority stockholders could have appealed the decision but did not.
The company also maintains that plans for the ABC deal were dropped before the North Carolina hearing, and the corporation was never formed. It says it acted in good faith, and minority shareholders lost nothing in the deal.
The minority shareholders disagree and give an exotic recipe of ingredients in the ABC deal.
First, Li'l Dino assets or "opportunities" were split, and valuable ones were secretly put in the dummy ABC corporation, the shareholders allege. They were reserved for Li'l Dino insiders: Mr. Barrett and his hand-picked beneficiaries.
The hidden assets included Intercollegiate Foods Group, which has developed food service operations in several universities, including Duke. It also included rebates totaling $46,000 per quarter.
At one point, Jreck "terminated" the ABC deal.
Mr. James claims the ABC deal was scrapped, at least on the surface, so the Li'l Dino buyout could go unscathed through the fair hearing. The attorney claims there was a cover-up and the deal stayed essentially the same but was based on a "handshake" agreement.
In the meantime, $2 million in Jreck stock went to Li'l Dino shareholders for their stock. Jreck also assumed $400,000 of Li'l Dino debt.
What Li'l Dino minority shareholders apparently did not know at the time of the buyout was that Jreck issued preferred stock that subsequently flooded the market, driving down regular shares that went to Li'l Dino shareholders by 90 percent. In essence, the $2 million deal was suddenly worth about $200,000.
The new stock was not revealed in SEC filings until Feb. 17, 1999, more than a year after the Li'l Dino buyout.
Mr. Swartz objected to the idea that his firm manipulated stock prices.
"No company ever issues shares with the idea of driving the price down," he said. "That's asinine."
Mr. James acknowledged Jreck's actions could have been good, competitive business, a way of leveraging a buyout, while offering top Li'l Dino management a golden parachute.
It became illegal, Mr. James contends, because the shadow ABC deal and other actions were kept a secret from Li'l Dino shareholders.
Many of the allegations in the federal lawsuit came from tape recordings made by Mr. Hassett, a 16- year employee of the Li'l Dino corporate family. He was Li'l Dino vice president of operation and administration, and assistant secretary. One of his duties was to record board meetings.
He also taped conversations and made copies of relevant documents, according to the lawsuit. He recounted what was said during family gatherings and even while driving Mr. Swartz, former Jreck Chief Operating Officer Bradley L. Gordon and Jreck President Richard Silberman to and from the airport.
Negotiations for the Li'l Dino buyout spanned several meetings.
At an Oct. 15, 1997, meeting, Mr. Barrett told Jreck representatives, including Mr. Swartz, that he wanted $8 million to $9 million for Li'l Dino. Mr. Swartz said he would not pay the price.
Although Mr. Swartz left the meeting, negotiations continued. Robert Burg, who sold Sobik's Sandwich Shop, a Florida franchise, acted as Jreck's broker and outlined the ABC deal. He told Mr. Barrett that is how Jreck purchased his firm.
Former North Carolina attorney John Evans, who was disbarred for unrelated reasons, explained how to make it all legal. Mr. Evans, described as a close friend of Mr. Barrett, was a Li'l Dino shareholder and ran a franchise.
The deal for the Li'l Dino sell- out, including the ABC deal, was agreed to at an Oct. 24, 1997, meeting. Mr. Barrett, who would eventually be slated to get 60 percent of the ABC deal, told Mr. Hassett to keep "his mouth shut about it,"
Jreck admits the idea of an ABC corporation was floated but says it was subsequently abandoned.
Mr. Swartz characterized the ABC diversion as a way "to reward the people who actually built Li'l Dino," according to the lawsuit.
On Dec. 17, 1997, J. Michael Ferretti, former chief financial officer of Li'l Dino Management Corp., announced at a meeting that the ABC deal has been "torn up" and instructed attorneys to put a paper trail in place to show that, the lawsuit says.
It also alleges that keeping the ABC deal in place would run the risk of blocking the acquisition at the hearing by the North Carolina Department of State.
At the meeting, Mr. Ferretti was quoted to have said, "Larry has elected to rely on Chris's good faith ... to do what is right post closing with respect to management compensation and appropriate incentive that we took it off the table.
"Now, I whole heartily expect that... somewhere between one and 30 days after closing, Chris will come back to Larry and put in place a deal substantially identical to what we then called ABC as an incentive plan..."
A "draft" letter by Mr. Swartz dated Dec. 2, 1997, two weeks before the pronouncement that the ABC deal was to be terminated, offers Mr. Barrett a position for him and people he selects to develop "opportunities."
According to the draft letter, Mr. Swartz offered to set aside $1 million in Jreck stock for Mr. Barrett and pay him 50 percent of the profits from developing Jreck and Li'l Dino opportunities for five years.
The lawsuit goes deeper into Jreck's past by naming Thomas Swartz, who started the Jreck franchise operation in Watertown. The elder Mr. Swartz was found guilty in 1996 of bank fraud, conspiracy and bribery in the demise of Jefferson National Bank.
A jury found Thomas Swartz sucked $1.6 million in loans out of Jefferson National Bank for his business interests, including Jreck Subs. He served a 41-month sentence in the federal prison system, first in a so-called "prison camp" and then at a halfway house in Orlando, Fla., near Lakewood, where Jreck Subs is based.
The lawsuit suggests that the elder Mr. Swartz may be involved in the day-to-day affairs of Jreck Subs Group, now Ultimate Franchise.
Mr. James acknowledges he has no proof of it.
"I think it makes common sense, it's logical, but it is my speculation," the attorney said.
Christopher Swartz denies his father's participation in the company in any way.
Thomas Swartz and former Jefferson National Bank Chairman Harry S. Pack, who was sentenced to 30 months in the federal prison system, were indicted Jan. 4, 1996, by a federal grand jury in Syracuse.
In May 1996, five months after the indictment, Jreck was bought by Circa Media Inc., a Colorado corporation, and the name was changed to Jreck Subs Group.
The Li'l Dino stockholders claim, "Tom Swartz or others acting on his behalf, through a sleight of hand, created the new Jreck through the acquisition of a Colorado corporation to protect the assets of the Swartz family in Jreck's stock."
Jreck also wrote off a $104,141 loan it gave his father, the lawsuit says.
The lawsuit compares Tom Swartz to owners of "target" franchises sought out by Jreck Subs Group.
It alleges they are the type of people who "personally desire significant wealth in their lifetimes" but ignore federal and state law and live a lifestyle beyond their means.
The shareholders allege Tom Swartz, while in prison camp, may have had a hand in picking the target franchises.
Their lawsuit says, "...Tom Swartz has the time to devote to this analysis of potential targets because of his incarceration."
ADDITIONAL FAMILY HISTORY OF QUESTIONABLE ACTIVITIES
Published on May 10, 2005, Page D4, Watertown Daily Times
ATTORNEY PLEADS GUILTY IN DISPUTE
Watertown attorney Eric T. Swartz [brother of Chris Swartz]* pleaded guilty two weeks ago to a harassment charge involving an incident in Sackets Harbor and was given a one-year conditional discharge.
Mr. Swartz described it as a "small altercation" that occurred at Good Fellos Brick Oven Pizza and Wine Bar. He acknowledged striking a person on the head a couple of times. He said the dispute was of a personal nature and had nothing to do with his work as an attorney. He declined to be more
Complete Article, 182 words: Purchase article
Published on September 29, 1999, Page 30, Watertown Daily Times
COUNTY MAY FORGIVE TAXES ON BUILDING SO GOUVERNEUR SITE CAN BE RENOVATED
The St. Lawrence County Legislature's move to cancel back property taxes appears to have cleared the way for the renovation of a former publishing facility on Clinton Street.
The county Board of Legislators Finance Committee has unanimously approved canceling $110,768.42 in back taxes so that contractor William J. Farley can buy the property at 40-42 Clinton St. from H. Thomas Swartz and renovate the former MRS building on the site. The measure will go to the full Legislature on
Complete Article, 593 words: Purchase article
Published on October 18, 1996, Page 34, Watertown Daily Times
SWARTZ USED TRUST FUNDS FOR LOANS TO JRECK, PACK
Attorney H. Thomas Swartz testified Thursday he used a client trust account to lend money to the Jreck Subs franchise business he owned and to former Jefferson National Bank President Harry S. Pack.
The acknowledgement came after Mr. Swartz faced repeated questioning in U.S. District Court here about client trust accounts at his firm. Mr. Swartz, a former bank director who owned Jreck Subs Inc., and Mr. Pack are on trial in U.S. District Court here charged with conspiracy and bank
Complete Article, 1332 words: Purchase article
THEN At the start of the Jefferson Bank Fraud trial, Jreck makes a stock offering!!! To pay for what? The owner's trial expense?
Published on September 25, 1996, Page 32, Watertown Daily Times
JRECK SUBS CHAIN AGAIN OFFERS STOCK
Jreck Subs is offering stock for sale again, 11 years after issuing shares that have yet to pay a dividend or trade on a public market.
In advertising for its new public stock, the Watertown-based sub chain touts itself as the "Wal-Mart of small-town fast foods" with efficient service that "even McDonald's would be impressed" with. Jreck claims in the advertising that it will achieve fast growth by increasing sales from an average
Complete Article, 664 words: Purchase article
April 30 - May 2, 1996 - Circa Media President, Chris Swartz, changes name of company to Jreck Subs Group, Inc.
http://www.secinfo.com/dUYqh.838.8.htm
Published on May 22, 1996, Page 34, Watertown Daily Times
CITY FACING LOSS CLAIMS OVER BLAZE AT WAREHOUSE< OWNER, TENANT SEEK $230,000, CITE "NEGLIGENCE'
The owner and tenant of a Newell Street warehouse destroyed in February by fire have filed claims against the city for more than $230,000 based on what they feel was the city's failure to enforce the fire code.
Attorney H. Thomas Swartz, owner of the building, and his son and tenant, Christopher M. Swartz, claim the city was negligent in enforcing its fire code by failing to make William M. Baker have working sprinklers in his adjacent warehouse, where the Feb. 17 fire erupted.
Complete Article, 682 words: Purchase article
http://www.occ.treas.gov/ftp/release/2004-42b.pdf
Jefferson National Bank, Watertown, New York
During the 1993 examination of this bank, the OCC learned from the Federal Reserve Bank of New York that the bank was engaging in cash transactions that were not commensurate with its size. OCC examiners subsequently discovered that several bank customers were depositing large amounts of cash that did not appear to be supported by the purported underlying business, with the funds being wired offshore. The OCC filed four criminal referral forms (predecessor to the SAR) with law enforcement pertaining to this cash activity and several additional criminal referral forms pertaining to insider abuse and fraud at the bank. The OCC also briefed several domestic and Canadian law enforcement agencies alerting them to the significant sums of money flowing through these accounts at the bank. Based upon this information, law enforcement commenced an investigation of these large deposits. The investigation resulted in one of the most successful money laundering prosecutions in U.S. government history. The significant sums of money flowing through the bank were derived from cigarette and liquor smuggling through the Akwesasne Indian Reservation in northern New York. The ring smuggled $687 million worth of tobacco and alcohol into Canada between 1991 and 1997. The case resulted in 21 indictments that also sought the recovery of assets totaling $557 million. It also resulted in the December 1999 guilty plea by a subsidiary of R.J. Reynolds tobacco company and the payment of a $15 million criminal fine. The four criminal referral forms filed by the OCC in the early stages of this investigation were directly on point and pertained to the ultimate ringleaders in the overall scheme. These money laundering cases were in addition to the C&D order entered into with the bank, the prohibition and CMP cases that were brought by the OCC, and the insider abuse bank fraud cases that were brought by law enforcement against some of the bank's officers and directors. Seven bank officers and directors were ultimately convicted of crimes.
Note about the item above - The bank was a Den of Thieves!! Do you see the phase "insider abuse fraud cases"? That was the Pack, Swartz fraud. Pack was funneling customers to Swartz's Law firm and getting kickback money from Chris's old man. The Big Money crooks were involved in something completely different!
From the Watertown Daily archive search (These are just 2 pages of articles, there are many more) ...
ARTICLE 1 OF 25
Published on August 30, 1997, Page 30, Watertown Daily Times
SWARTZ: "I AM TRULY SORRY'
Following is the text of the prepared statement delivered Friday afternoon by H. Thomas Swartz prior to his sentencing by Judge Rosemary S. Pooler in U.S. District Court, Syracuse. When I was 12, I had a sign made which I placed over my bed, "Thomas Swartz, Atty. at Law." Since then I loved the law. I had the privilege of practicing for 30 years. This conviction has taken that privilege. For that great loss I am truly sorry. Whenever one lawyer weakens the public
Complete Article, 636 words: Purchase articleARTICLE 2 OF 25
Published on July 29, 1997, Page 30, Watertown Daily Times
FORMER JEFF NATIONAL HEAD GETS 30 MONTHS, $100K FINE
Former Jefferson National Bank president Harry S. Pack was sentenced Monday in U.S. District Court to 30 months in federal prison and ordered to pay $100,000 in restitution. Mr. Pack and lawyer H. Thomas Swartz were convicted last fall in federal court of bank fraud, bribery and conspiracy for their activities at Jefferson National. Mr. Pack will begin serving his sentence Sept. 9. In a sentencing hearing lasting about an hour, defense attorneys and the prosecution argued over the
Complete Article, 1150 words: Purchase articleARTICLE 3 OF 25
Published on July 28, 1997, Page 30, Watertown Daily Times
PACK GIVEN 30 MONTHS< BANKER FINED $100,000
Former Jefferson National Bank president Harry S. Pack was sentenced this morning to 30 months in federal prison and ordered to pay $100,000 in restitution. Mr. Pack and lawyer H. Thomas Swartz were convicted last fall in U.S. District Court of bank fraud, bribery and conspiracy for their activities at Jefferson National. Today, in a hearing that lasted about an hour, defense attorneys and the prosecution argued over the period of Mr. Pack's sentence. He faced 41 to 51 months
Complete Article, 914 words: Purchase articleARTICLE 4 OF 25
Published on July 27, 1997, Page B7, Watertown Daily Times
PAPERS SAY PACK, BROTHER INVOLVED IN STOCK SCHEME
Former banker Harry S. Pack and his brother, Philip, manipulated Jefferson National Bank stock prices so they could avoid margin calls, the U.S. Securities and Exchange Commission ruled in 1993. They were not punished, however; the SEC merely told them not to do it again. The commission's ruling was included in sentencing papers in U.S. District Court, Syracuse, in a bid by prosecutors to get a stiff sentence for Harry Pack. He and former attorney H. Thomas Swartz face
Complete Article, 378 words: Purchase articleARTICLE 5 OF 25
Published on July 27, 1997, Page B1, Watertown Daily Times
SWARTZ HAD OTHERS FRONT JEFF NATIONAL LOANS FOR HIM, PROSECUTORS SAY
When H. Thomas Swartz needed cash and was short on collateral, he had others front Jefferson National Bank loans for him, federal prosecutors say. The largest loan was through prominent Jefferson County businessman Donald E. Cole for $320,000. But what made it unique is that it was repaid. "None of the other borrowers were ever able to repay the loans at all," Assistant U.S. Attorney Elizabeth S. Riker argued in presentencing papers that are being considered by Judge
Complete Article, 574 words: Purchase articleARTICLE 6 OF 25
Published on November 17, 1996, Page A5, Watertown Daily Times
CONVICTED BANKERS MISUSED POWER, TRUST
Thomas Swartz and Harry Pack should receive no mercy. They are common thieves who have used the law, their position and their power to hurt others. Instead of using their law degrees to help, they have used the law as a weapon to hurt the uninitiated. To these men, the uninitiated are well educated people who are not lawyers - people who trusted them and their advice as lawyers. Thomas Jefferson would roll over in his grave to think that men in our society practice law like this. Jefferson
Complete Article, 345 words: Purchase articleARTICLE 7 OF 25
Published on October 22, 1996, Page 30, Watertown Daily Times
DEFENSE DENIES CONSPIRACY BY SWARTZ, PACK
Federal prosecutors saw a conspiracy between Jefferson National Bank President Harry S. Pack and attorney H. Thomas Swartz when none was there, defense attorneys argued Monday in U.S. District Court. Lawyer John Kinsella even suggested that actions by federal regulators may have been responsible for the failure of Jefferson National Bank in February 1993. Mr. Pack and Mr. Swartz were tagged to take the "fall" for it, and authorities built a theory of conspiracy
Complete Article, 1375 words: Purchase articleARTICLE 8 OF 25
Published on October 17, 1996, Page 34, Watertown Daily Times
SWARTZ: JRECK HELPED BANK SUB SHOP DEALINGS DESCRIBED
The Jreck Subs Inc. franchise business was booming through the mid-1980s, and stores deposited $9 million a year into Jefferson National Bank accounts, attorney H. Thomas Swartz testified Wednesday in U.S. District Court. Mr. Swartz, who is on trial charged with conspiracy and bank fraud, described ways his Jreck-related businesses helped Jefferson National rather than hurt it, as the prosecution contends. The bank failed in February 1993. The Watertown attorney was charged with buying
Complete Article, 1508 words: Purchase articleARTICLE 9 OF 25
Published on October 9, 1996, Page 32, Watertown Daily Times
SWARTZ HAD EMPLOYEES TAKE OUT JEFF BANK LOANS FOR HIM, ONE SAYS
H. Thomas Swartz had two employees at his MRS Printing business take out $20,000 in loans for him from Jefferson National Bank so he could meet his company payroll, one of the workers testified Tuesday in U.S. District Court. The three of them met at Jefferson National Bank, where Mr. Swartz sat on the bank's board of directors. The loans were given without any collateral, said Frederick C. Buduson, one of the employees. Mr. Swartz and former bank President Harry S. Pack are on
Complete Article, 1136 words: Purchase articleARTICLE 10 OF 25
Published on October 9, 1996, Page 32, Watertown Daily Times
SWARTZ HAD 2 WORKERS OBTAIN LOANS FOR HIM < EX-EMPLOYEE TESTIFIES AT BANK FRAUD TRIAL
H. Thomas Swartz had two employees at his MRS Printing business take out $20,000 in loans for him from Jefferson National Bank so he could meet his company payroll, one of the workers testified Tuesday in U.S. District Court. The three of them met at Jefferson National Bank, where Mr. Swartz sat on the bank's board of directors. The loans were given without any collateral, said Frederick C. Buduson, one of the employees. Mr. Swartz and former bank President Harry S. Pack are on
Complete Article, 1360 words: Purchase article
ARTICLE 11 OF 25
Published on October 5, 1996, Page 30, Watertown Daily Times
DOCTOR SAYS HE TRUSTED SWARTZ < SOURED INVESTMENTS LED TO RUIN
Dr. Paul S. Curtis said he trusted Watertown attorney H. Thomas Swartz when he made retirement investments in Mr. Swartz's companies. The physician ended up in bankruptcy. "All of a sudden, I went to the bank one day and my accounts had been frozen," Dr. Curtis testified about one of several deals involving Jefferson National Bank that turned sour. Mr. Swartz is on trial in U.S. District Court with former Jefferson National Bank President Harry S. Pack
Complete Article, 994 words: Purchase articleARTICLE 12 OF 25
Published on October 4, 1996, Page 32, Watertown Daily Times
SWARTZ'S LOAN FILES DISCUSSED
A credit administrator at the failed Jefferson National Bank testified in U.S. District Court today that he was told to change "scathing comments" he wrote in a loan review for H. Thomas Swartz, a director at the bank. The administrator, Steven M. Strasser, said that all he had written on the loan review was that Mr. Swartz had not answered questions put to him about his loans. He said he made the changes after he was told to in a meeting with Chief Executive Officer
Complete Article, 904 words: Purchase articleARTICLE 13 OF 25
Published on April 23, 1996, Page 26, Watertown Daily Times
JUDGE REFUSES TO THROW OUT CHARGES AGAINST PACK, SWARTZ
A federal judge on Monday refused to throw out the influence-peddling indictment against former Jefferson National Bank Chairman Harry S. Pack and attorney H. Thomas Swartz, a former officer at the failed bank. The decision by Judge Rosemary S. Pooler was not surprising to attorney John D. Kinsella, who appeared Monday on behalf of Mr. Pack in U.S. District Court, Syracuse, in what he termed a routine set of motions. Afterward, however, the defense lawyer claimed prosecutors used
Complete Article, 579 words: Purchase articleARTICLE 14 OF 25
Published on January 5, 1996, Page 28, Watertown Daily Times
BANKER PACK, LAWYER SWARTZ INDICTED IN FRAUD SCHEME
Former Jefferson National Bank officials H. Thomas Swartz and Harry Pack were charged Thursday with a kickback scheme so Mr. Swartz's law firm would get the bank's business and so loans were made to him or his other companies. In many cases, the loans were never repaid. The Jefferson National Bank and its operations became the subject of a federal investigation after the bank failed in February 1993. A grand jury returned an indictment against Mr. Pack and Mr. Swartz
Complete Article, 384 words: Purchase articleARTICLE 15 OF 25
Published on September 9, 1994, Page 30, Watertown Daily Times
FORMER LOAN OFFICIAL ACCUSED OF BANK FRAUD < HAYES, WIFE, PARTNER FACE FEDERAL COUNTS
Stephen E. Hayes, a former chief loan officer and executive vice president of Jefferson National Bank, has been accused by a federal grand jury of funnelling about $1.8 million from the bank to himself, his wife and three businesses in which he was a secret partner. Mr. Hayes, 47, of North Shore Road, Dexter; his wife, Joanne, 34, and Francis A. Costanzo, a former Watertown resident who lives in Oregon, will be arraigned in federal district court in Syracuse Thursday. Mr. Hayes, Mrs. Hayes
Complete Article, 962 words: Purchase articleARTICLE 16 OF 25
Published on March 8, 1993, Page B7, Watertown Daily Times
HOLIDAY INN PARENT REVIEWS FRANCHISE IN OGDENSBURG
The financial and environmental woes of the Holiday Inn on West River Street have attracted the attention of the hotel's corporate parent. Company officials in Atlanta will neither confirm nor deny that the hotel's latest troubles will do harm to its already-shaky franchise agreement with the parent company. The franchise was stripped from the hotel for a week in January. "The status is uncertain to us," Robert J. Gibbons, Holiday
Complete Article, 421 words: Purchase articleARTICLE 17 OF 25
Published on March 7, 1993, Page B6, Watertown Daily Times
HOLIDAY INN'S FRANCHISE UNDER REVIEW
The financial and environmental woes of the Holiday Inn on West River Street have attracted the attention of the hotel's corporate parent. Company officials in Atlanta will neither confirm nor deny that the hotel's latest troubles will do harm to its already-shaky franchise agreement with the parent company. The franchise was stripped from the hotel for a week in January. "The status is uncertain to us," Robert J. Gibbons, Holiday
Complete Article, 421 words: Purchase articleARTICLE 18 OF 25
Published on February 28, 1993, Page A1, Watertown Daily Times
HOLIDAY INN CONTRACTOR BITTER< OVER DEAL WITH FAILED BANK
When the smoke clears, Richard J. Gosier's story might sound familiar to a lot of people in the north country. An otherwise successful Watertown contractor, Mr. Gosier remembers how he was approached in the summer of 1991 by Harry S. Pack, former president of the now-failed Jefferson National Bank. Mr. Pack had a package deal to offer, a project that promised a handsome profit if done quickly and according to the bank's terms. Buy this riverfront property in
Complete Article, 745 words: Purchase articleARTICLE 19 OF 25
Published on February 28, 1993, Page A9, Watertown Daily Times
BUILDER SAYS SOIL "SEVERELY CONTAMINATED'
The Ogdensburg Holiday Inn parking lot, 199 W. River St., is sitting on "severely contaminated" soil, the hotel's builder said Friday. Richard J. Gosier said he was asked by former Jefferson National Bank founder Harry S. Pack to build the riverfront resort, but was never told an important secret: there were underground fuel tanks on the site. The leaking tanks were found during construction and carted away secretly. No one ever told state environmental
Complete Article, 386 words: Purchase articleARTICLE 20 OF 25
Published on August 23, 1992, Page B1, Watertown Daily Times
JEFFERSON NATIONAL TALE HAS 2 LEVELS
This is the story of how a little bank got mixed up in big business. It was the fall of 1982, and a wealthy English trader had just offered to take control of the Jefferson National Bank, Watertown. The surprise $2.8 million offer meant that each shareholder could sell half his shares for $71 apiece, or about twice what the stock had been trading for. The mysterious English investor - who was known only as Mr. R. Sethia and was later joined by three other foreign men - promised to inject
Complete Article, 976 words: Purchase article
1974 - Jreck incorporated in the State of New York under the name JRECK Subs,Inc. [http://sec.edgar-online.com/1998/02/11/14/0001002334-98-000019/Section2.asp]
12/19/1990 - H. Thomas Swartz dumps the last of the original founders of Jreck from off the board of directors.
ARTICLE 123 OF 406
Published on December 18, 1990, Page 25, Watertown Daily Times
JRECK SWITCHING BOARD MEMBERS IN EXPANSION PLOY
Jreck Subs Inc., one of Jefferson County's largest retail businesses, is undergoing an "internal restructuring" to "posture" itself for growth in the fast food market, president H. Thomas Swartz said today. Jreck's five-member board of directors, which formerly included company founders Jeremiah J. Haley, Keith N. Waltz, Jr., Charles Leham and Douglas A. Nichols, will be replaced with new board members who are
Complete Article, 280 words: Purchase article
ARTICLE 126 OF 406
Published on January 23, 1991, Page 29, Watertown Daily Times
MRS PRINTING'S SUCCESSOR SHUTS DOWN LAST 2 PAPERS
The owners of New Concepts Publishing, attorney H. Thomas Swartz and media businessman David J. Alteri, have shut down their two remaining weeklies, the Northern Light and the Pulaski Democrat, and laid off all but a handful of staffers, according to former employees. About 10 editorial, sales and production workers were told of the closing and given their pink slips Friday during separate meetings with Mr. Alteri attended by several groups of staff members, said two laid-off employees who
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ARTICLE 138 OF 406
Published on August 1, 1991, Page 34, Watertown Daily Times
TRANSFER OF MRS BUILDING TO SWARTZ ILLEGAL, BANKRUPTCY OFFICIAL SAYS
The transfer of MRS Printing property to company President H. Thomas Swartz could be a violation of federal code, according to a U.S. Bankruptcy Court trustee. The code prohibits transfers to "insiders" the year before a company files for Chapter 11 reorganization in U.S. Bankruptcy Court, Richard G. Croak said. Although Mr. Croak said Wednesday he is not accusing Mr. Swartz of the code violation, a proceeding could be brought against the company president either by
Complete Article, 344 words: Purchase article
ARTICLE 139 OF 406
Published on August 2, 1991, Page 28, Watertown Daily Times
PRINTING FIRM PRESIDENT CONFIRMS TRANSFER< SWARTZ SAYS HE TOOK OVER GOUVERNEUR BUILDING TO TRY TO MAKE GOOD ON PAYMENTS
The president of MRS Printing Inc. in Gouverneur confirmed Thursday that he had transferred the building to his name months before his company filed for Chapter 11 reorganization, but he said he did it in an attempt to save his business. "I made a technical move that I believed could help the entity," H. Thomas Swartz said. That transfer could be a violation of federal code that prohibits transferring property to insiders one year before a company files for
Complete Article, 351 words: Purchase article
The first place DeDe goes to defend herself is Danger Democrat. What a fraud. It really shows you who her friends are and where her party loyalty is. Any Republican that would run to the most liberal blog in UpState NY for protection must be losing their mind.
What she should have done is put out a fundraising solicitation asking for help, and claiming to be the victim. Poor DeDe doesn't know the first thing about Republican principles or party loyalty.
UpState NY is going to put up with this liberal nonsense, and neither am I.
It was no wonder we found out DeDe was crying when she got passed over on the Senate job in some shady backroom deal with Wright and Barclay. She was obviously deemed too liberal for the Republican base and the insiders in Albany. Good for those who made the call, but if that was really their reasoning they should have gotten a real Republican with some credentials. What a mess. The local Republican Parties are going to need to put some serious thought into recruiting good candidates, fundraising, and organizing voters. No need for these liberal types.
I hope Patty Ritchie sees how this thing plays out and takes some solidly Republican positions on things. The North Country needs it. Awful!
How is an investment "passive?"
It sounds like her investment in the Republican Party is "passive" after she ran to Danger Democrat for protection. I am sure she made some insane deal to vote for more liberal policies in exchange for shelter.
What a joke. Passive? Please give me a break.
My word is the whole town a bunch of crooks ?
Remind me to never move to your city. Politics have ruined that town.
It's no wonder why Tom and DD turned out that way. It must be in the water.
LOL !
"It is time to zip up the pants, pull up the pantyhose and tighten the belts (instead of counting notches)."
So, Dede did that also counts for the business your brother and yourself are involved ???
AS A SHAREHOLDER I DO HOPE SO !
"Time to clean up before your own door" !!
Regards,
bbb
Seaway just reported a $2.9M loss for the 1st quarter. Ouch!
Tom Scozzafava after a dreadful 10q report will now most likely pass the CEO stewardship on to Chris Swartz.
Tom Scozzafava is most likely going to attempt to distance himself from this situation. That's just how he is but his name will ever be connected to reckless leadership of his fiduciary duties and total disregard to his common shareholders plight.
Swartz will most likely step in to be the hatchet man as to a reverse-split since he's left many a shareholder spinning in his past. His name should really be Chris "Reverse Split" Swartz if you have seen his shareholder record. I request all of you pull a list of public companies Chris Swartz's runs. You'll be shocked by the list and the share performance.
The guy could possibly be under-qualified to hand you your sack at the drive-thru.
Scozzafava thought his resume I guess spoke for itself and gave him a seat on the BOD of SWVC, a handsome salary, and bought many of his businesses out for a very sizable yet questionable dollar amount. I guess it's nice to pull the ol' you scratch my back I'll scratch yours routine.
Who do these people think they're fooling?
However that action will cement a much stronger Class Action lawsuit against all past and present insiders and executives.
Now to Deidre's role here: Ms Scozzafava can protest all she wants and claim she's not involved, but her substantial insider ownership, her co-founding of Wisebuys, and her current title at the company speak volumes as to where the real truth lies.
Really hoping Tom pulls another mind-fart (similar to the financial 'sage' supposedly, accidentially missing the toxic legacy debt convertible note that converted at .001 in the old GSCR shell) and he quickly names Chris Swartz as CEO.
Shareholders can only hope the 'sage' does it again.
This time however it may backfire.
If anyone has time, use it and comment further, it's a blog.
Dirty Laundry can be cleaned with KIND™ Laundry Detergent; KIND™ Fabric Softener; KIND™ Laundry Stain Remover...Hope that help also in this case !
I hope there's no JCIDA, Watn Trust, involvment that would be icing on the cake, No wonder Jim Fayle left.
Tom Scozzafava, step up, be a man and host a conference call for SWVC!
Time for some dialogue with your shareholders, man. Long overdue!
Never mind a conference call - make it a face-to-face shareholders meeting.
Nothing like looking someone in the eye, unless of course, you're afraid too...
Share price now at .0017. Nice job creating shareholder value, Tom!!
Loser!
Monies seemingly stolen by 'Lurch & The Fat Man '.
Watch your wallets around the Scozzafava's and Swartz's. If you're unfortunate enough to drop it, kick it around the corner before you pick it up, they may try to 'do ya dry' as well.
I think the 'sis went back for that strappy thing, quick, get the heck out of there.
Run Forest Run
Well, it's 2 weeks later and nothing has changed...except of course the share price - it continues to fall despite all the "Look-at-our-Progress!!" press releases.
Tom, you still have not addressed the MOST IMPORTANT questions that shareholders have about the company. And please, DON'T TRY TO CALL ME AGAIN...what you have to say to me should be a matter for all shareholders to hear.
Sincerely,
Timothy Mercier
shut up already.. if you havent read any of the last SWVC filing then MAYBE ALL YOU WHINERS MISSED THIS PART.. blockheads'
BUSINESS RISK FACTORS
There are many important factors that have affected, and in the future could affect, Seaway Valley Capital Corporation's business, including but not limited to the factors discussed below, which should be reviewed carefully together with other information contained in this report. Some of the factors are beyond our control and future trends are difficult to predict.
The issuance of shares under our convertible debentures agreements could increase the total common shares outstanding by 81%.
The holders of the debentures could convert such debentures into approximately 807,466,375 shares based on the market price on March 31, 2008. Such issuances would reduce the percentage of ownership of our existing common stockholders. This result could detrimentally affect our ability to raise additional equity capital. In addition, the sale of these additional shares of common stock may cause the market price of our stock to decrease.
Seaway Valley Capital Corporation is not likely to hold annual shareholder meetings in the next few years.
Delaware corporation law provides that members of the board of directors retain authority to act until they are removed or replaced at a meeting of the shareholders. A shareholder may petition the Delaware Court of Chancery to direct that a shareholders meeting be held. But absent such a legal action, the board has no obligation to call a shareholders meeting. Unless a shareholders meeting is held, the existing directors elect directors to fill any vacancy that occurs on the board of directors. The shareholders, therefore, have no control over the constitution of the board of directors, unless a shareholders meeting is held. Management does not expect to hold annual meetings of shareholders in the next few years, due to the expense involved. Thomas Scozzafava, who is currently the sole director of
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Seaway Valley Capital Corporation, was appointed to that position by the previous directors. If other directors are added to the Board in the future, it is likely that Mr. Scozzafava will appoint them. As a result, the shareholders of Seaway Valley Capital Corporation will have no effective means of exercising control over the operations of Seaway Valley Capital Corporation.
Investing in our stock is highly speculative and you could lose some or all of your investment.
The value of our common stock may decline and may be affected by numerous market conditions, which could result in the loss of some or the entire amount invested in our stock. The securities markets frequently experience extreme price and volume fluctuations that affect market prices for securities of companies generally and very small capitalization companies such as us in particular.
The volatility of the market for Seaway Valley Capital Corporation common stock may prevent a shareholder from obtaining a fair price for his shares.
The common stock of Seaway Valley Capital Corporation is quoted on the OTC Bulletin Board. It is impossible to say that the market price on any given day reflects the fair value of Seaway Valley Capital Corporation, since the price sometimes moves up or down by 50% or more in a week's time. A shareholder in Seaway Valley Capital Corporation who wants to sell his shares, therefore, runs the risk that at the time he wants to sell, the market price may be much less than the price he would consider to be fair.
The absence of independent directors on our board of directors may limit the quality of management decision making.
Tom Scozzafava is the only member of our Board of Directors. There is no audit committee of the board and no compensation committee. This situation means that Mr. Scozzafava will determine the direction of our company without the benefit of an objective perspective and without the contribution of insights from outside observers. This may limit the quality of the decisions that are made. In addition, the absence of independent directors in the determination of compensation may result in the payment of inappropriate levels of compensation.
Our common stock qualifies as a "penny stock" under SEC rules which may make it more difficult for our stockholders to resell their shares of our common stock.
Our common stock trades on the OTC Bulletin Board. As a result, the holders of our common stock may find it more difficult to obtain accurate quotations concerning the market value of the stock. Stockholders also may experience greater difficulties in attempting to sell the stock than if it were listed on a stock exchange or quoted on the NASDAQ Global Market or the NASDAQ Capital Market. Because our common stock does not trade on a stock exchange or on the NASDAQ Global Market or the NASDAQ Capital Market, and the market price of the common stock is less than $5.00 per share, the common stock qualifies as a "penny stock." SEC Rule 15g-9 under the Securities Exchange Act of 1934 imposes additional sales practice requirements on broker-dealers that recommend the purchase or sale of penny stocks to persons other than those who qualify as an "established customer" or an "accredited investor." This includes the requirement that a broker-dealer must make a determination on the appropriateness of investments in penny stocks for the customer and must make special disclosures to the customer concerning the risks of penny stocks. Application of the penny stock rules to our common stock affects the market liquidity of the shares, which in turn may affect the ability of holders of our common stock to resell the stock.
Only a small portion of the investment community will purchase "penny stocks" such as our common stock.
Seaway Valley Capital Corporation common stock is defined by the SEC as a "penny stock" because it trades at a price less than $5.00 per share. Seaway Valley Capital Corporation common stock also meets most common definitions of a "penny stock," since it trades for less than $1.00 per share. Many brokerage firms will discourage their customers from purchasing penny stocks, and even more brokerage firms will not recommend a penny stock to their customers. Most institutional investors will not invest in penny stocks. In addition, many individual investors will not consider a purchase of a penny stock due, among other things, to the negative reputation that attends the penny stock market. As a result of this widespread disdain for penny stocks, there will be a limited market for Seaway Valley Capital Corporation common stock as long as it remains a "penny stock." This situation may limit the liquidity of your shares.
Hackett’s growth strategy of new store openings and acquisitions could create challenges Hackett’s may not be able to adequately meet.
Hackett’s intends to continue to pursue growth for the foreseeable future, and to evolve existing business to promote growth. Hackett’s future operating results will depend largely upon its ability to open and operate stores successfully and to profitably manage a larger business. Operation of a greater number of new stores, moving or expanding store locations and expansion into new markets may present competitive and merchandising challenges that are different from those currently encountered by Hackett’s in existing stores and markets. There can be no assurance that Hackett’s expansion will not adversely affect the individual financial performance of its existing stores or the overall results of operations. Further, as the number of stores increases, Hackett’s may face risks associated with
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market saturation of its products and concepts. Finally, there can be no assurance that Hackett’s will successfully achieve expansion targets or, if achieved, that planned expansion will result in profitable operations.
This growth strategy requires improving Hackett’s operations, and Hackett’s may not be able to do this sufficiently to effectively prevent negative impact on its business and financial results.
In order to manage Hackett’s planned expansion, among other things, Hackett’s will need to locate suitable store sites, negotiate acceptable lease terms, obtain or maintain adequate capital resources on acceptable terms, source sufficient levels of inventory, hire and train store managers and sales associates, integrate new stores into existing operations and maintain adequate distribution center space and information technology and other operations systems. If Hackett’s is unable to accomplish all of these tasks in a cost-effective manner, its business plan will not be successful.
Hackett’s needs to continually evaluate the adequacy of its management information and distribution systems.
Implementing new systems and changes made to existing systems could present challenges management does not anticipate and could negatively impact Hackett’s business. Hackett’s management cannot anticipate all of the changing demands that expanding and changing operations will impose on business, systems and procedures, and the failure to adapt to such changing demands could have a material adverse effect on results of operations and financial condition. Failure to timely implement initiatives necessary to support expanding and changing operations could materially impact business.
The success of Hackett’s business depends on establishing and maintaining good relationships with mall operators and developers, and problems with those relationships could make it more difficult for Hackett’s to expand to certain sites or offer certain products.
Any restrictions on Hackett’s ability to expand to new store sites, remodel or relocate stores where management feels it necessary or to offer a broad assortment of merchandise could have a material adverse effect on business, results of operations and financial condition. If relations with mall operators or developers become strained, or Hackett’s otherwise encounters difficulties in leasing store sites, Hackett’s may not grow as planned and may not reach certain revenue levels and other operating targets. Risks associated with these relationships are more acute given recent consolidation in the retail store industry, and Hackett’s has seen certain increases in expenses as a result of such consolidation that could continue.
If Hackett’s fails to offer a broad selection of products and brands that customers find attractive, Hackett’s revenues could decrease.
In order to meet its strategic goals, Hackett’s must successfully offer, on a continuous basis, a broad selection of appealing products that reflect customers’ preferences. Consumer tastes are subject to frequent, significant and sometimes unpredictable changes. To be successful in Hackett’s line of business, product offerings must be broad and deep in scope and affordable to a wide range of consumers whose preferences may change regularly. Management cannot predict with certainty that Hackett’s will be successful in offering products that meet these requirements. If Hackett’s product offerings fail to satisfy customers’ tastes or respond to changes in customer preferences, revenues could decline. In addition, any failure to offer products that satisfy customers’ preferences could allow competitors to gain market share.
Hackett’s comparable store sales are subject to fluctuation resulting from factors within and outside Hackett’s control, and lower than expected comparable store sales could impact business and Seaway’s stock price.
A variety of factors affects comparable store sales including, among others, the timing of new product releases and fashion trends; the general retail sales environment and the effect of the overall economic environment; Hackett’s ability to efficiently source and distribute products; changes in Hackett’s merchandise mix; ability to attain exclusivity and certain related licenses; competition from other retailers; opening of new stores in existing markets and Hackett’s ability to execute its business strategy efficiently. To date, Hackett’s comparable store sales results have fluctuated significantly in the past, and management believes that such fluctuations will continue.
Economic conditions could change in ways that reduce Hackett’s sales or increase Hackett’s expenses.
Certain economic conditions affect the level of consumer spending on merchandise Hackett’s offers, including, among others, employment levels, salary and wage levels, interest rates, taxation and consumer confidence in future economic conditions. Hackett’s is also dependent upon the continued popularity of malls and strip malls as a shopping destination, the ability of other mall tenants and other attractions to generate customer traffic and the development of new malls. A slowdown in the United States economy or an uncertain economic outlook could lower consumer spending levels and cause a decrease in mall traffic or new mall development, each of which would adversely affect growth, sales results and financial performance.
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Changes in laws, including employment laws and laws related to Hackett’s merchandise, could make conducting Hackett’s business more expensive or change the way Hackett’s does business.
In addition to increased regulatory compliance requirements, changes in laws could make ordinary conduct of Hackett’s business more expensive or require Hackett’s to change the way it does business. For example, changes in federal and state minimum wage laws could raise the wage requirements for certain of Hackett’s associates, which would likely cause management to reexamine Hackett’s entire wage structure for stores. Other laws related to employee benefits and treatment of employees, and privacy, could also negatively impact Hackett’s such as by increasing benefits costs like medical expenses. Moreover, changes in product safety or other consumer protection laws could lead to increased costs for certain merchandise, or additional labor costs associated with readying merchandise for sale. It is often difficult to plan and prepare for potential changes to applicable laws.
Timing and seasonal issues could negatively impact Hackett’s financial performance for given periods.
Hackett’s quarterly results of operations fluctuate materially depending on, among other things, the timing of store openings and related pre-opening and other startup expenses, net sales contributed by new stores, increases or decreases in comparable store sales, releases of new products ,and shifts in timing of certain holidays, changes in merchandise mix and overall economic and political conditions. Hackett’s business is also subject to seasonal influences, with heavier concentrations of sales during the back-to-school, Halloween and holiday (defined as the week of Thanksgiving through the first few days of January) seasons and other periods when schools are not in session. The holiday season has historically been the single most important selling season. Management believes that in the locations where its stores are located, the importance of the summer vacation and back-to-school seasons and to a lesser extent, the spring break season as well as Halloween, all reduce the dependence on the holiday selling season, but this will not always be the case to the same degree. As is the case with many retailers of apparel, accessories and related merchandise, Hackett’s typically experiences lower net sales in the first fiscal quarter relative to other quarters.
Hackett’s has many important vendor and license partner relationships, and Hackett’s ability to obtain merchandise or provide it through license agreements could be hurt by changes in those relationships, and events harmful to Hackett’s vendors or license partners could impact results of operations.
Hackett’s financial performance depends on Hackett’s ability to purchase desired merchandise in sufficient quantities at competitive prices. Although Hackett’s has many sources of merchandise, substantially all of Hackett’s music/pop culture-licensed products are available only from vendors that have exclusive license rights. In addition, small, specialized vendors, some of which create unique products primarily for us, supply certain of Hackett’s products. Hackett’s smaller vendors generally have limited resources, production capacities and operating histories and some of Hackett’s vendors have restricted the distribution of their merchandise in the past. Hackett’s generally has no long-term purchase contracts or other contractual assurances of continued supply, pricing or access to new products. There can be no assurance that Hackett’s will be able to acquire desired merchandise in sufficient quantities on acceptable terms in the future. Any inability to acquire suitable merchandise, or the loss of one or more key vendors, may have a material adverse effect on Hackett’s business, results of operations and financial condition.
Competitors’ Internet sales could hinder Hackett’s overall financial performance.
Hackett’s sells merchandise that also can be purchased over the Internet through the other retail websites. Hackett’s Internet operations do not yet include commerce, and not having such operations could pose risks to Hackett’s overall business.
Hackett’s is dependent for success on a few key executive officers. Its inability to retain those officers would impede its business plan and growth strategies, which would have a negative impact on business and the potential value of any investment in Seaway. Loss of key people or an inability to hire necessary and significant personnel could hurt Hackett’s business.
Hackett’s performance depends largely on the efforts and abilities of senior management. The sudden loss of either’s services or the services of other members of Hackett’s management team could have a material adverse effect on business, results of operations, and financial condition. Furthermore, there can be no assurance that Mr. Scozzafava or the existing Hackett’s management team will be able to manage growth or be able to attract and retain additional qualified personnel as needed in the future. Hackett’s can give no assurance that it can find satisfactory replacements for these key executive officers at all, or on terms that are not unduly expensive or burdensome to Hackett’s. Although Hackett’s intends to issue stock options or other equity-based compensation to attract and retain employees, such incentives may not be sufficient to attract and retain key personnel.
8
There is a risk Hackett’s could acquire merchandise without full rights to sell it, which could lead to disputes or litigation and hurt Hackett’s financial performance and stock price.
Hackett’s and its partners purchase licensed merchandise from a number of suppliers who hold manufacturing and distribution rights under the terms of certain licenses. Hackett’s generally rely upon vendors’ representations concerning manufacturing and distribution rights and do not independently verify whether these vendors legally hold adequate rights to licensed properties they are manufacturing or distributing. If Hackett’s or its partners acquire unlicensed merchandise, Hackett’s could be obligated to remove such merchandise from stores, incur costs associated with destruction of merchandise if the distributor is unwilling or unable to reimburse Hackett’s, and be subject to liability under various civil and criminal causes of action, including actions to recover unpaid royalties and other damages. Any of these results could have a material adverse effect on business, results of operations and financial condition.
Hackett’s faces intense competition, including competition from companies with significantly greater resources than Hackett’s. If Hackett’s is unable to compete effectively with these companies, Hackett’s market share may decline and its business could be harmed.
The retail industry is highly competitive with numerous competitors, many of whom are well-established. Most of Hackett’s competitors have significantly greater financial, technological, managerial, marketing and distribution resources than does Hackett’s. Their greater capabilities in these areas may enable them to compete more effectively on the basis of price and more quickly offer new products. In addition, new companies may enter the markets in which Hackett’s competes, further increasing competition in the industry. Hackett’s may not be able to compete successfully in the future, and increased competition may result in price reductions, reduced profit margins, loss of market share and an inability to generate cash flows that are sufficient to maintain or expand the number of Hackett’s stores, which would adversely impact the trading price of Seaway’s common shares.
Hackett’s future operating results may fluctuate and cause the price of Seaway’s common stock to decline.
Hackett’s expects that Hackett’s revenues and operating results will continue to fluctuate significantly from quarter to quarter due to various factors, many of which are beyond Hackett’s control. The factors that could cause Hackett’s operating results to fluctuate include, but are not limited to:
·
seasonality of the business;
·
price competition from other retailers;
·
general price increases by suppliers and manufacturers;
·
Hackett’s ability to maintain and expand Hackett’s distribution relationships;
·
increases in the cost of advertising;
·
unexpected increases in shipping costs or delivery times;
·
Hackett’s ability to build and maintain customer loyalty;
·
the introduction of new services, products and strategic alliances by us and Hackett’s competitors;
·
the success of Hackett’s brand-building and marketing campaigns;
·
government regulations, changes in tariffs, duties, and taxes;
·
Hackett’s ability to maintain, upgrade and develop Hackett’s retail stores;
·
changes in Hackett’s store leasing costs;
·
the amount and timing of operating costs and capital expenditures relating to expansion of Hackett’s business, operations and infrastructure; and
·
general economic conditions as well as economic conditions specific to the retail sector.
If Hackett’s revenues or operating results fall below the expectations of investors or securities analysts, the price of Seaway Valley Capital Corporation’s common stock could significantly decline.
Hackett’s growth and operating results could be impaired if it is unable to meet its future capital needs.
Hackett’s may need to raise additional capital in the future to:
·
fund more rapid expansion;
·
acquire or expand into new retail locations, warehousing facilities or office space;
·
maintain, enhance and further develop Hackett’s information technology systems;
·
develop new product categories or enhanced services;
9
·
fund acquisitions; or
·
respond to competitive pressures.
If Hackett’s raises additional funds by issuing equity or convertible debt securities, the percentage ownership of stockholders will be diluted. Furthermore, any new securities could have rights, preferences and privileges senior to those of the common stock. Hackett’s currently does not have any commitments for additional financing. Hackett’s cannot be certain that additional financing will be available when and to the extent required or that, if available, it will be on acceptable terms. If adequate funds are not available on acceptable terms, Hackett’s may not be able to fund its expansion, develop or enhance Hackett’s products or services or respond to competitive pressures.
Bottom line:
POS stock, greedy CEO and even more greedy COO with histories of taking shareholders for all they got. Thanks Tom!
Here we go R/S and A/S increase from 2.5 to 10 billions of Shares.
http://www.sec.gov/Archives/edgar/data/884380/000129092908000063/seaway14cjul08.htm
Is this Shareholderwealth buyback and / or dividents ?? Or is this a special trick that nobody understands ?
Heeeelllooooo ????
bbb
I love the FACT that the SEC stepped in (little too late though) and forced SWVC to redo all their financials.
SWVC's CEO bought Wisebuys from himself while it had a negative value of $1.4 million dollars, he decided to give himself $6.4 million for it. $7 million dollars over the real value of it! This is pretty pathetic when in reality Wisebuys was losing $1.5 million per year, for him to sell it off on someone else & expect to gain $7 million? He should have just been happy that he wasn't losing money anymore!
CEO IS A Con Man, COMPANY IS A JOKE - They definately don't understand a CEO's fudiciary responsibility up there in Upstate NY
I am speechless...Everything that happened at Lil dino's happened to my family in Sackets Harbor. And now to make things worse without warning they canceled my dads health insurance...he is in 4th stage cancer. These people are liars and need to pay for how they have ruined peoples lives.
Bad News all the way around. Chris Swartz is a crook just like his dad and has screwed over more shareholdes, friends and family than anyone in the planet...sounds like Tom is lining up to be #2. How do the businesses stay afloat at all???
For those who doubt the contents of the original post, please visit the various online stock market message boards (e.g., investorshub.com) to read of the "aftermath". Though Tom S may not have conducted any illegal activities, the direction he took his company destroyed the price per share of the stock. Thousands of individuals have lost money, some who lost the majority of their savings and retirement while Tom and friends made millions. Again, though one could only guess as to the legality of his conduct, ask any investor and they will tell you he is as corrupt (if not more) as any on wall street. Personally, I've read some of the messages regarding Seaway Valley, and I can't help but feel heartache for those who lost so much. Yes, it was their choice to purchase the stock, but from all the SEC filings, it was obvious that Tom S never made one attempt to protect his stockholders from continuous and seemingly insurmountable toxic financing. One can only wonder if this was "planned".
To any who are thinking of investing in this stock, FIND ANOTHER PLAY. You will lose your money.
For those who have lost a significant amount money, I wish you luck and God bless.
For Tom and cronies, you know what you did. Perhaps, the SEC will investigate, but I'm doubtful because they have enough of a mess to deal with caused by those of your "ilk". Nevertheless, know that your riches come from the misery and despair of thousands. I would seriously take some time think about this question, "What did you really gain?"
What's up next..watch for them to start to screw with the original investors in North Country Hospitality...
these aholes owe everyone money,,,dede is participant too.
Chris Swartz had a right hand man named Mitchell Steinberg who ran several of his companies for several years. Google Mitchell Steinberg and Stock Fraud. Steinberg now has LLC's called Rollinstix and Sage and Associates. You will find press releases linking one of them to Swartz's companies.
Swartz and buddies are selling stock overseas to people who have no idea they companies are worthless shells. It just never ends. When will the Feds finally stop these people.
SEC is looking into Seaway now :
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34691295
Another Reverse Split 1-1000 !!
Hell what a lying crook !!
[A letter written to a business columnist of a local newspaper explaining how devastating a reverse share split, being planned by Seaway Valley Capital, is to existing common shareholders]
XXXX,
Thanks for getting back to me.
The re-slicing of the pie technically SHOULD not make much difference, but that's not the way it pans out for the average investor. 9 times out of 10, unless explicitly stated as a means to qualify the stock for up listing to a better exchange, a reverse split signals to the investor that more dilution is sure to happen, especially when no action is taken to reduce the amount of authorized shares.
Back in the fall, Tom ran into a problem. The convertible debentures he was writing to finance the company growth were being converted at a share price that was continuing to drop, so as the months dragged on, it took more and more shares to satisfy each CD. Eventually the company hit the limit on authorized shares (2.5B authorized). The first reverse (1:5) reduced the total issued shares, but Tom ALSO INCREASED the total authorized shares from 2.5B to 10B. This gave him breathing room to continue to convert CDs. Only one problem - the new share price quickly began to fall, and eventually found it's way to a no-bid level. After the split, more than 2 billion shares were issued before the stock went to no-bid. In fact, many stockholders were locked out FOR UP TO TWO WEEKS from buying or selling their shares by stockbrokers who were waiting on the reverse/split issue to clear, WHILE MILLIONS UPON MILLIONS OF SHARES WERE BEING DUMPED on the market.
Now Tom is stuck again. The new split is 1:1000, but the authorized share count will remain at 10 billion. If all the CDs that he owes were to be converted today, according to the pre-14c form, it's going to take over a TRILLION shares to do the trick. So, what, I might ask you, is the value of my remaining shares going to be in another month? Remember, I started with 2.15 Million, was reversed to 430,000, and now will be reversed again to 430. That's the price of loyalty I guess.
Long term shareholders have all been wiped out, or cleaned out, if you prefer a more accurate term, and Tom, an owner of a $1+M apartment in NYC, and a $1+M condo in Florida, and who-knows-what-else, gets off scott-free, having used working class investors like myself to pay for his lifestyle of luxury. Broken laws? Who knows, and who will ever know, since the SEC can't be entrusted to find it's collective ass even with 2 sets of hands. Broken promises?...quite a few, but what are the problems of a few hundred shareholders to folks of upstate New York? Life will go on for the good people of Watertown, Potsdam, Canton, and Sackets Harbor. Deidre will continue to compile an unblemished record in the State Assembly, and Tom will retain his squeaky clean image in the eyes of his fellow citizens, until a day comes when Tom's little empire comes crashing down around his ears. On that day, I'm sure there will be more than plenty of words to put on paper.
Thanks again for all that you have been doing. I do appreciate very much your understanding.
Sincerely,
Timothy Mercier
I agree with your comments Mr. Mercier in what you have stated. Nice letter and thank you to the paper your truly a class act.
I wonder how the working class of upstate New York would take to shopping at a Hacketts store when the common shareholders have been wiped out?
Then you look at the preferred shareholders names and I think to myself how can the be passive in all of that?
All I want to say is that Tom Scozzafava seems to be just like many of the CEO's in America today. They have this system created by scum to bilk the hard working American people out of their money. It is call the Stock Market. Tom has found an endless supply of money by just using the pen and paper to produce it. His past is very tainted in my view. He has associated with the worst of the worst and brought down on us common shareholders a great loss.
E-mail from Watertown daily times, seems this girl Nancy is on the ball!
Hi, XXXX
Yes, I have received many other complaints from shareholders about the devaluing of the stock.
I am looking for more in terms of a paper trail to continue writing about the company and the legality of its actions. I am sure there will be future developments as I research, but it’s hard for me to say when that will be.
Thanks for your interest and the information you’ve provided.
Sincerely,
Nancy Madsen
Staff Writer
Watertown Daily Times
315-661-2358
nmadsen@wdt.net
Just laughing about some comments. Tom has made people all over the world loose money by making wrong decisions and statements. The market value says it all
Cry baby Scozzafava reads the blogs, what a cry baby.
I spoke to Nancy Madsen, looks like a follow up article is in works. Can't wait!
TS sold our souls to the pirates of YA, and now we still hang around discussing & blaming with FULL of hatred on the sunken ghostship...
I blame him leaving us in the hell deep at the sea...he sunk the ship on purpose !
MANY thanks Captn Tom !!!
What ship is next and how many souls will you sell next time ?
TS didn't just make 1 mistake did he?
First took his buddies shell with a little debt.. Then "FOUND" the rest of the debt owed to his buddy's WIFE
Second buys out his own crap Wisebuys for $6 million ($7.4 million over real value) then uses shareholder money to keep the doors open.
Third buys out Hacketts for $5.4 million (yes, it really was only worth $1.5 million but it's not TS's money so why not overpay?). Hacketts (apparently according to tscott11 ripped off TS by having alot of debt out or not paying the bills prior to acquisition - Wait, isn't this the same thing TS & Dede did to shareholders with Wisebuys?)
Fourth he says dilution is expected to subside soon knowing he was also signing multiple debentures which would cause a flood of shares into the market.
Fifth he acquires NHSP (again overpriced & this time takes common ownership of the company down below 5% overall - instead of giving up part of his 80%, we paid over $40 million for 5% of $5 mil in equity). Yes, he even gave part of NHSP back without acknowledging that to any of his shareholders other than in filings. We still don't know the value of what was acquired, given back, or if Swartz even took any debt with what he was given back.
Sixth he is throwing out beer PR after beer PR just to sell shares. He didn't do it at .02, he waited until the pps was .0003-.0005 to maximize the amount of shares getting to the market right?
Seventh he publicly states he is working with KK on getting what he is owed from agrifuels (and acts like he will put something toward SWYV himself) & he wants to make sure SWYV shareholders get everything they deserve (which apparently to him is an empty bank account). The suit with KK was settled over 6 months ago and not one shareholder has heard from TS regarding this.
Eighth he takes the biggest revenue maker out of a BB shell to put into a pink sheet shell which came with both a sizeable CD attached as well as an indicted ex-CEO regarding this. Of course he didn't know anything about the shell(maybe this time there is no hidden debt)
TS needs to be working a hot dog cart in NYC because he sure can't run a public company worth a $#*!
Today he PR'ed
"management feels it must now concentrate efforts on debt restructuring and debt reduction."
I bet 100$ that this is just the next scam-game to dilute more shares ....Management at Seaway has no feelings !! Never had...A yeag ago+ he already announced that dilution is ended (jan2008)....HUGE LIE
Investment of 10k$ is now worth 10 $ ...Investors NEVER EVER will get back anything...mark this blog...
This guy maybe now tries to sell us an X for an U and tries to blame his own shareholders for the fail of his businessplan...wonder what this crook will bring up next...
TS why not lawsuit me ? I do lately HATE YOU until theend of my life...AND i post negative...because WHY ???
I always believed your SCAM and was blind ...but look at my balance...10k$ now worth 10$ and you have not even the "FEELING" to mail me back as i mailed you last year !!!
WHO DO YOU WANT TO SELL A X FOR AN U ????
You are just ARROGANT..and do not care a S$$$ about others money...and you ABUSED us withall your lying....JMHO !!!!!!
TS is running a very high risk that one of the scammed 4000 shareholders get a "flip in the brain" and goes mad at him one day IMO.
If i were him...i would fear to live in such a situation...and would drastically change this situation very quick !
Why this went all so far ???? Is he doing this all on purpose ?
I hope there will be some justice for us....one day...maybe...
TS if you read that, read it twice...better every day...
Why did you permanently lied to us...why did you turned our pockets upside down ? Are you really that lowlife ????
If so...then you really deserve no better ... someone will one day bump in you massive...because normal justice here will not occur...stay tuned...and better react before its too late.
I am all calm....but maybe someone else is NOT.
jmho
P.S. this company could have been great without all your f'764 CD deals In my opinion...but its your own fault that you failed completely !!!!
What do you think your shareholders wanted here ?? An investment in a nice company with a great story to read...but you made the book of hell out of it !!!! You only betrayed us...and now also some employed people of Hacketts have to go...superb...i bet they like that...NOT.
WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY WHY ????????????????????????????????????
Christopher Schwartz rumored to go public why he left the company, I hope he lays it all out and Tom's scam!
Hacketts facing bankruptcy
CREDITORS FILE PETITION: NNY company owes them nearly $1.6 million, filing says
By BRIAN KELLY
TIMES STAFF WRITER
WEDNESDAY, APRIL 15, 2009
ARTICLE OPTIONS
A A A
Several creditors of Hacketts department stores have moved to force the company into involuntary bankruptcy.
Six creditors filed an involuntary petition Monday in U.S. Bankruptcy Court, Utica, seeking the Chapter 7 bankruptcy of Patrick Hackett Hardware Co., Ogdensburg. The creditors claim they are owed a combined $1.6 million.
The creditors' action seeks to have the company's assets liquidated, with distribution of the proceeds going to the creditors.
Hacketts operates nine stores in the north country. A 10th store in Pulaski closed March 28 and the company announced April 7 that it plans to close its Watertown store at 144 Eastern Blvd. by the first week of June. That store is having a going-out-of-business sale.
ADVERTISEMENT
According to court documents, the creditors forcing the bankruptcy are:
■ Columbia Sportswear USA, Portland, Ore., which claims
it is owed $500,707.
■ Woolrich Inc., Woolrich, Pa., which claims $260,289.
■ The North Face — VF Outdoor Inc., Appleton, Wis., which claims $657,307.
■ Skechers USA Inc., Manhattan Beach, Calif., which claims $27,000.
■ K-2 Sports, Seattle, Wash., which claims $36,200.
■ Deckers Outdoor Corp., Goleta, Calif., which claims $74,477.
Jay R. Indyke, New York City, an attorney representing the creditors in the action, could not be reached for comment Tuesday. Thomas W. Scozzafava, chief executive officer of Seaway Valley Capital Corp., Gouverneur, which purchased Hacketts in November 2007, failed to return several calls seeking comment.
In March, Hacketts's then-CEO, Norman Garrelts, told the Times that Wells Fargo Bank was requiring the company to repay a $5 million line of credit secured in January 2008. He said at the time that Hacketts had paid back $3 million over the previous two months, significantly reducing the company's cash flow. He declined comment Tuesday as he is no longer serving as CEO.
Hacketts is one of the nation's oldest retailers, with roots dating back to 1830. It was acquired in 2007 by Seaway Valley, a venture capital and leveraged buyout investment company run by Mr. Scozzafava.
Mr. Scozzafava, along with his sister, Assemblywoman Dierdre K. Scozzafava, and Joseph G. LaChausse, had previously formed WiseBuys Stores Inc. to provide stores to serve communities left without access to basic goods when the Ames chain closed all of its stores.
In October 2007, Seaway Valley acquired all of the capital stock of WiseBuys and a month later it acquired all of the capital stock of Hacketts. All WiseBuys stores subsequently were converted to Hacketts stores.
On Dec. 18, Seaway Valley transferred ownership of Patrick Hackett Hardware Co. to The Americas Learning Centers Inc., Boca Raton, Fla. As part of the transaction, Mr. Scozzafava was appointed CEO and chairman of the board of the company, which was renamed Hacketts Stores Inc. On Dec. 22, Mr. Scozzafava announced that Hacketts Stores would be publicly traded as a stand-alone entity. The company's stock symbol became HCKE.
Seaway Valley also owns Alteri Bakery, Sackets Harbor Brewing Co., Sackets Harbor Brew Pub, Good Fello's Brick Oven Pizza and Wine Bar and 1812 Station House, all of which it acquired when it merged with North Country Hospitality Inc. in June.
As part of the merger, Christopher M. Swartz, who was president and CEO of North Country Hospitality, became vice president and chief operating officer of Seaway Valley. He resigned the positions April 3.
http://www.watertowndailytimes.com/article/20090415/NEWS03/304159972
-828,4$ Could we please calculate up our losses ?
Please post your unvested money and sum it up in answer of this post...thanks !
1.Holter -95k$
2._bbb_ -11k$ (around 8k€)
3._bbb_'s two friends -2k$ (around 1.5k€)
4.dav1234 -15k$
5.kyle -10k$
6.JimsZ -4.8k$
7.plan4you -35k$
8. German_Trader -11k$ (around 7.8k€)
9. 0815ax -3.5k$
10.ferryman -10k
11.crooked33 -80k (uncle)
12.penny_in_dime_out -28k$
13.thomas_83 -22k$ (around 16000€)
14.mobrown -16k$
15.olmec - 4.5k$ (around 3.200€)
16.Sangamon Kid -25k$
17.Cpt Snoop -70k$
18.plotzenhotz (ariva.de) -9.4k$
19.kyle's friends -60k$
20.Bagholder34 20 k€ = 30 k$
21.Coop2z -47k$....
22.geoiguy1 -40k$
23.frankiboy & friends -69k$
24.Antwon Predoc -2.5k$
25.PennyNK -1.2k$
26.firebag1 -87K$
27.ajuna -9,5k$ (around 7k€)
28.ldogger -30k$
29.
30.
.
.
.
4000.
40$ million investors lost with this scam and sister Dede still gets voted what a SCAM...wonder why the peeps in Northern New York do not now yet about Scamming Scozzafava Family...those people are HUGE crooks never seen before...get rid of em !!!!!!!!!!!!!!!!!!!!!!!
Sorry for the typos but i was in "rage"
SWYVE / i just used the mailtool of the website
http://www.seawayvalleycapitalcorp.com/contact-us-thanks
Contact Us
Thank you for your correspondence. We will address your inquiry shortly.
Regards,
Seaway Valley Capital Management.
---------------------------------------------------------------
bbb wrote:
TS reread your PR's..you betrayed many investors....why do we get no PR or Sh update now at this time ?? Because you cannot dump shares without another R/S ????
1mill$ investors money totally loss just 37 investors...do you feel good ???
YOU ARE JUST STUPID AND LOT MY RESPECT OF A HUMN BEING HOPE YOU READ MY POSTS ON IHUB HOW I THINK ABOUT YOU NOWADAYS...YOU ARE A COWARD..HIDING...IF THE BUSINESS JUST HVE FAILED NOONE OULD HaVE BEING ANGRY BUT YOU AND YOUR FUCKED UP CORNELL CD'S SCAMMING US WILL FOR SURE ONE DAY MKING YOU DEJA VUE..OOPS I DONE SOMETHJING WRONG...EVERY SORRY IS TOO LATE...YOU LOST CREDIBILITY AND SCAMMED THE TRUST OF 4000 PEOPLE WHO NOW HATE YOU AS MUCH AS NO ONE IN THE WORLD CAN HATE SOME ONE...HOPE YOU ARE NOW HAPPY NOW...YOU SCUMBAG !!!!!!!!! YOU ARE ARROGANT NO MORE NO LESS..YOU NEVER ANSWERED ME...YOUR ACTING WERE PLANNED FROM DAY ONE AND BE SURE YOU GT SUED ND LOCKED UP VERY SOON...4000 POPLE AFTER YOU 40 MILLION $ TOTAL LOSS...OU MADOFF !!!!!!
-------------------------------------------------------------------------------------
-$1,000,255 k$ Could we please calculate up our losses ?
Please post your unvested money and sum it up in answer of this post...thanks !
1.Holter -95k$
2._bbb_ -11k$ (around 8k€)
3._bbb_'s two friends -2k$ (around 1.5k€)
4.dav1234 -15k$
5.kyle -10k$
6.JimsZ -4.8k$
7.plan4you -35k$
8. German_Trader -11k$ (around 7.8k€)
9. 0815ax -3.5k$
10.ferryman -10k
11.crooked33 -80k (uncle)
12.penny_in_dime_out -28k$
13.thomas_83 -22k$ (around 16000€)
14.mobrown -16k$
15.olmec - 4.5k$ (around 3.200€)
16.Sangamon Kid -25k$
17.Cpt Snoop -70k$
18.plotzenhotz (ariva.de) -9.4k$
19.kyle's friends -60k$
20.Bagholder34 -20k€ = 30 k$
21.Coop2z -47k$....
22.geoiguy1 -40k$
23.frankiboy & friends -69k$
24.Antwon Predoc -2.5k$
25.PennyNK -1.2k$
26.firebag1 -87K$
27.ajuna -9,5k$ (around 7k€)
28.ldogger -30k$
29.Palmer032 - $20k
30.Lochute -$40k
31.Hunch -2k$
32.iPickWinners -1k$
33.chunky-g -25k$
34.Tommer06 -10k$
35. dr no -3k$
36. Oldestboy -61,154$
37. GEO928 3K$
.
.
.
4000.
SWYVE used the mailbox once again
Contact Us
Thank you for your correspondence. We will address your inquiry shortly.
Regards,
Seaway Valley Capital Management
--------------------------------------------------------
bbb wrote:
Who do you think you are ???
I know what you are...you are no mor than an arrogant AH !!!! IMO
And many say the same !
Beware of either justice and keep care of yourelf noone bumps into you...we all wished the best giving you our last shirt...but you spoiled it all !!!!!!!!!!!
You pay back WF ??? How you pay bak investors which LOST ALL 99.999999?????
-------------------------------------------------------
SWYVE / Losses already over a million only calculating 37 investors losses up...
We already reached over one million $ already with only 37 investors posting their losses !!! DAMN !!! What a SCAM !
Those lying PR's were very illegal an misleading in my eyes and this whole damn thing sould be brought to court, TS STOLE OUR MONEY LYING THE BLUE DOWN FROM THE SKY AND DAMAGED AND RUINED OUR PIGGYBANKS ASWELL OUR LIVES ..ON PURPOSE !!! HE ABUSED US AND TOOK IN ADVANTAGE THAT WE TRUSTED HIM AND HIS BS !! THIS GUY HAS NO MORALITY AND LOST ALL MY RESPECT AS A HUMAN BEING !!!!!!!!!
AS I SEE IT HE DID NOT CARED ABOUT THE INVESTORS AND DI NOT ACTED IN THE BEST INTEREST ASWELL FROM DAY ONE , THIS WAS AN ON PURPOSE SCAM IN MY EYES !!!!! BAD TO FIND OUT AFTERWARDS...THANKS TO EVERYONE WHO WARNED US..BUT WE DID NOT WANT TO HEAR IT .. I ADMIT ! :-(
HOW can DEDE get ONE vote with such a SCAM...everbody living in NNY please get this public ??????????????????????????????????????????????
Sorry for all the typos..quick errors..i was in rage again...but who cares....scambwoy scammed 5-40mills out of us with a 3rd party..(cornell YA whatever who) and told us the blue of the sky in PR's ...this is illegal...he is a SCMBOY and his sister Dede i wonder why she ven gets ONE vote anymore...duh...one wonders why i say they should die on bad KRANKHEITEN ???? why did hat all came so far...all their fault...and i have no remorce left over NO REMORCE !!!!!!!!! I WISH ALL TOSE THE WORST !!!!!!!!!!!!!
l8er bbb
Wish it has been better...its all over...honesty misused too uch...assholes !!!!!WANKERS !!!!
This time bad english...sorry..was in a bad mood...all on purpose.like scamboy scammed us 40MILLIONs on purpose !!
Got some insight this morning and believe that i had some "hate attack" last night. :-)
No i do NOT wish someone bad "krankheiten", i posted that in a bad modd on a rage attack full of hate , sorry for that but this whole story here is getting everyday much more worse.....
All i and others want is JUSTICE but i believe we will never ever get....what a shame....
-------------------------------------
SWVLE and WNBD got the same new IR and now read this:
Isn't it strange that directly after i posted the following, the website changed lateron and they removed that bold part ??? LOL !
Its very clear what they are up to on both SVVLE and WNBD ! JMHO !
Thats the only reason why i am banned...sure i got angry and outrageous...but finding that out who would be not....
have a nice sunday all...
------------------------------------------------------------
I am damn negative on that E&E thing selling a 1 for 1000 split as a WEE WEE PR on seaway !!! huh ???
How the f*** can a serious company take a IR like that having something like the following on the website client list ??????????????????
----------->>>>>>>>>>>>>>>
http://www.eandecommunications.com/clients.htm
READ THAT WHATS ALL BELOW !
--->>>>
For additional promotional services you can contact our affiliate PSPG-Penny Stock Promoters Group.com™, which specializes in promoting OTC Bulletin Board, Pink Sheets and other Microcap issues. Companies that benefit most from our services are those with excellent growth potential and limited media exposure. http://www.pennystockpromotersgroup.com/index.php DUMP DUMP DUMP BUSINESS ??? YES YES YES !!!!!!!!! OPEN YOUR EYES !!!!!!
This tells us the story goes on...Scamboy does not stop...more money will be lost...DANG !
How can this be legal ???
Sister still gets votes ??
Nice sunday ? :-(
I admit...my last posts were a bit hard, but does someone wonder why it drove me that far posting something like that ??
I do not mean it that hard, wonder a bit about myself now, how can i explain my own daughter that i can get that ANGRY and HATEFUL if she one day reads this ??
Thanks Tommi bringing me that far & thanks for stealing our money !
Lets see how the story goes on...just be warned..
DO NOT INVEST ONE PENNY ANYMORE IN PINK/OTC Stocks , you might loose all your money and the CEO gets away with it UNSUED !!!
Okay , i asked the blog Authors to remove two of my entries here.
It was not "me" anymore posting it, i am sorry i got outrageous again and i can not say that i was at the time posting responsible for my own actings (never drink and write), but who wonders making through a scam betrayal like this all is...there are many more like me very fed up with the whole SWVC story, if you like to know more read it all here:
http://investorshub.advfn.com/boards/board.aspx?board_id=3479
and here:
http://investorshub.advfn.com/boards/board.aspx?board_id=2966
However the real thruth you will NEVER EVER read, because many many posts always are getting deleted by admins/moderators.
Many warned us..its sad we did not trusted them instead of Mr. Scozzafava....
Is it a wonder people like me getting MAD sometimes and trying to get attention if noone else cares ??? I belive NOT if you read the following...
I hope my overdriven Personal Attacks getting deleted here, cannot even understand how i was possible to write that all...but it just drives you NUTS if you got threatened like that i tell you all...
(Sorry for posting those personal attacks earlier...but how do we shareholders ever get over it without letting out steam if noone Stops those PennyCeo's of their "ill" "legal" actions ??)
Isnt there a Pinikshell which sells some "Get over with your losses in Scamstock" Pill's
Ticker GOWYLISP ?
I am sorry for everyones losses including myown losses.....
We got BADLY RIPPED OFF ...i hope everyone gets over it one day, hard to understand if nobody can explain you WHY WHY WHY !!!
I really feel bad without knowing WHY !!!!!!
------------------------------
Seaway Valley Capital in reverse stock split
WEDNESDAY, MAY 13, 2009
ARTICLE OPTIONS
A A A GOUVERNEUR — Seaway Valley Capital Corp., formerly traded under SWYVE and a diversified holding company, announced Tuesday it has completed a one-for-1,000 reverse stock split and will trade under a new stock symbol, SWVLE. According to a filing with the federal Securities and Exchange Commission, Seaway Valley now has 10 billion shares of common stock, valued at 0.0001.
For information regarding the reverse split or new stock certificates, contact Standard Registrar & Transfer Co. at 12528 S 1840 E, Draper, Utah 84020-9100 or 1 (801) 571-8844.
http://www.watertowndailytimes.com/article/20090513/NEWS03/305139976/-1/NEWS
--------------------------------------
THE TOTAL RIPPOFF CHART:
http://stockcharts.com/c-sc/sc?s=SWVLE&p=D&yr=3&mn=0&dy=0&i=p32418797278&r=4132
-------------------------------------------
UPDATE :
-1.132.679$ "known" TOTAL LOSS OF SHAREHOLDER MONEY
1.Holter -95k$
2._bbb_ -11k$ (around 8k€)
3._bbb_'s two friends -2k$ (around 1.5k€)
4.dav1234 -15k$
5.kyle -10k$
6.JimsZ -4.8k$
7.plan4you -35k$
8. German_Trader -11k$ (around 7.8k€)
9. 0815ax -3.5k$
10.ferryman -10k
11.crooked33 -80k (uncle)
12.penny_in_dime_out -28k$
13.thomas_83 -22k$ (around 16000€)
14.mobrown -16k$
15.olmec - 4.5k$ (around 3.200€)
16.Sangamon Kid -25k$
17.Cpt Snoop -70k$
18.plotzenhotz (ariva.de) -9.4k$
19.kyle's friends -60k$
20.Bagholder34 -20k€ = 30 k$
21.Coop2z -47k$....
22.geoiguy1 -40k$
23.frankiboy & friends -69k$
24.Antwon Predoc -2.5k$
25.PennyNK -1.2k$
26.firebag1 -87K$
27.ajuna -9,5k$ (around 7k€)
28.ldogger -30k$
29.Palmer032 - $20k
30.Lochute -$40k
31.Hunch -2k$
32.iPickWinners -1k$
33.chunky-g -25k$
34.Tommer06 -10k$
35.dr no -3k$
36.Oldestboy -61,154$
37.GEO928 -3k$
38.RINY/THE ROOKIE -28k$
39.fasttrade -5.4k$
40.Tundramn -28k$
41.Going -8k$
42. donhke -59k$
43.amishsaint -3024$
44.
45.
.
.
.
.
.
4000.
Another day in SWVLE SWVC SWYV HELL...how are you feel with your -99.999999 investment loss ??? HOW DO YOU FEEL ??????????????????????
Tom...WHY WHY WHY WHY WHY WHY WHY WHY ???????????????????
SEC Charges Eight Participants in Penny Stock Manipulation Ring
http://investorshub.advfn.com/boards/board.aspx?board_id=15452
Posted by: dav1234 Date: Friday, May 22, 2009 8:07:13 AM
In reply to: None Post # of 212842
SYMBOL CHANGE CANCELLATIONS
Updated Date Old Symbol New Symbol Name Comment
18:01 5/22/2009 SWVLE SWYV Seaway Valley Capital Corporation Inc. New Common Stock
Notes
The Symbol Change from SWVLE/SWVLE to SWYV/SWYV, reported on the Daily List of 05/21/2009, with an Effective Date of 05/22/2009 , has been cancelled
http://www.otcbb.com/asp/dailylist_detail.asp?d=05/21/2009&mkt_ctg=OTCBB
Hacketts tells vendors payment of overdue bills unlikely soon
Monday, May 18, 2009, 3:07pm
OGDENSBURG – The owner of Hacketts department stores is telling vendors it is unlikely they will receive payment soon for overdue bills that in many cases are nearly a year old.
“Since January 2009, Hacketts has been suffering from a severe cash shortage in significant part as a result of our lender’s decision to terminate Hackett’s line of credit, which has required the company to devote most of its available cash to pay back the balance owing to the lender,” said Thomas Scozzafava, chief executive officer and president in a May 13 letter to vendors.
“Consequently, Hacketts was unable to stay current with its trade payables, and this led to the recent involuntary bankruptcy filing against Hacketts which has now been dismissed.”
In St. Lawrence County, the long-time retailer operates stores in Ogdensburg, Massena, Potsdam, Canton and Gouverneur.
The letter continues, “The good news is that this difficult period shows signs of nearing an end as sales have remained strong and the company has reduced the indebtedness to its working capital lender from $5 million in December 2008 to just under $1.2 million today. At the current pace, the company will pay off the balance in just over 13 weeks.”
Scozzafava continued, “Management recognizes that Hacketts has significant payables owing to its vendors and other stakeholders. Hacketts is committed to staying in business serving our customer and to paying our trade and other obligations as soon as possible.
“However, until the current line of credit is repaid and a replacement line of credit is secured, it is unlikely that payments on past obligations can be made.”
http://northcountrynow.com/entertainment/concerts/default.asp
I am just about to puke over my brokeraccount when i see this massive loss.
Thanks for making us(investors) feel VERY SICK the last 2 1/2 years..and you still goon with it...1/1000 RS...10 thousand Dollars only me ..many much more others lost , you know how much time you have to legal work for that ???
I bet Tom does NOT know that anymore ???
Has he totally lost reality completely ??
Stockperformance -99.9999999999999999................................................but dilution subsides and we acquire this and that ontop...hahahahahaha...WEEEWEE
WOW ! You are a SO honest, nice , believeable, trustful, handsome boy of Northern New York ??
SAYS WHO ???????????
HOW COULD I HAVE BEEN THAT STUPID INVESTING ONE PENNY INTO THIS PLANNED SCAM ???????????!!!!!!!!!!!!!
Posted by: rainbow898 Date: Monday, May 25, 2009 8:26:02 AM
In reply to: None Post # of 212872
I have lost 99.996% on this investment from, ahhh, 2 R/S ago or so. I am trying to sell the remaining shares and can't even do that... what's the deal???
Posted by: maverick one Date: Monday, May 25, 2009 6:15:51 PM
In reply to: wadirumI who wrote msg# 212868 Post # of 212875
US shareholders were give a bazooka shot a long time ago there is nothing anyone can do about it really except bitch and moan about it. The guy bought and owns the shell the way he set it up it's all about him and he doesn't give a crap about anyone else. Nothing any of us can do about it really we lost he won...he owns if he wants to dilute the hell out of us which he did theres nothing we can do about it except not by any and thats what we did. Now look at him.
Posted by: donhke Date: Tuesday, May 26, 2009 4:41:25 AM
In reply to: willynilly who wrote msg# 212879 Post # of 212880
Thanks to ol Teflon Tom, of the over 8 million shares I used to own, I now have 1630. I need the share price to go up to $36.97 to break even. That's not counting fees. When I first started out I was whistling "Hold on Tight to Your Dreams". Now I'm hanging on tight to a puke bucket.
If you look back at who TS was involved with the writing was on the wall. Way too many names and people that were shady to say the least. The way he set this up there was no way he could lose. Everyone else could, and did, but not him............ I wonder if there will be any justice for this scam ??????????
Giant Tiger store going out of business
LOSS FOR POTSDAM: Closing set for July 3; final sale under way
By ALEX JACOBS
TIMES STAFF WRITER
THURSDAY, MAY 28, 2009
ARTICLE OPTIONS
A A A
POTSDAM — Giant Tiger will close July 3 after five years in the Hacketts Plaza.
"It is unfortunate that we are closing our doors. We have very much enjoyed serving the community of Potsdam and St. Lawrence County. However, our lease is ending and we have decided to close the store," Giant Tiger spokeswoman Tracy Tuttle said in a statement.
The Canadian discount store that employs 13 in Potsdam has signs in its windows advertising a liquidation sale.
"Our decision to close the store in Potsdam is based on many factors, including the introduction of strong competition to the area and an uncertain economy," said David Thorpe, Giant Tiger's vice president of marketing.
ADVERTISEMENT
Giant Tiger is a family-oriented discount chain that offers low-cost clothing, groceries, furniture and kitchenware. Founded in 1961, the company has 195 locations across Canada and continues to expand.
"This is a terrible loss to the Potsdam community," Potsdam Chamber of Commerce Executive Director Brenda L. Thornton said. "They especially served elderly residents, and were such staunch supporters of the Potsdam Humane Society and everything the chamber has done."
Giant Tiger's sales took a hit when the Walmart Supercenter opened on Route 11 last summer, but the store revamped its merchandise to be more competitive, Ms. Thornton said.
"I don't think it had anything to do with Walmart at all. They totally redid the store and the sales have not slacked too much," she said. "Given the state of the economy and the general flux of retail operations in that plaza, I think they thought it was time to cut their losses."
This was Giant Tiger's only U.S. store. When it opened in 2004, 180 people interviewed for 40 available positions.
"We had very high hopes for their success in our community. We regret we weren't able to help them," village Planning and Development Director Frederick J. Hanss said. "Any time we lose a business, we all feel for the people affected. I think they came to the U.S. with high hopes."
An official who didn't want to be named said that Giant Tiger was worried about renewing its lease in the plaza if Hacketts ends up going under.
Hacketts, Giant Tiger's neighbor in the former Ames Plaza, helped bring the chain to Potsdam and managed the store at first.
The department store chain that started in Ogdensburg was purchased by Seaway Valley Capital Corp. in November 2007 and was forced into involuntary bankruptcy by several creditors in April. That bankruptcy later was dismissed in court, but the company remains in a struggle to pay off its debts.
The Potsdam Chamber of Commerce also has decided to cancel the Outer Market Mania portion of its Summerfest this year, mostly because of the Giant Tiger closing and uncertainty about Hacketts. Those stores normally lead a host of events for the weekend celebration.
Ms. Thornton said that if one of the other outer Market Street businesses wants to participate in the festival, the chamber will move those activities downtown.
Ogdensburg company files lawsuit against Hacketts
THURSDAY, MAY 28, 2009
ARTICLE OPTIONS
A A A CANTON — An Ogdensburg company has filed suit against Patrick Hackett Hardware Co., claiming it wasn't paid for electrical work done at several Hacketts stores in St. Lawrence and Jefferson counties.
The lawsuit, filed Tuesday, was brought by J.E. Patterson Electric seeking $111,265.36 against Hacketts.
The suit alleges J.E. Patterson did electrical work at Hacketts locations in Canton, Ogdensburg, Gouverneur and Sackets Harbor from March 27, 2008, through January.
Posted by: ezxccsc Date: Saturday, May 30, 2009 7:12:29 AM
In reply to: Desperado90 who wrote msg# 213000 Post # of 213008
Sad part about the multiple alias's is IHUB had to know at least on several occassions and they didn't give a rats butt so who or whom was also on the take to fleece investers.
I have a special present for our scumbag scammer CEO that I can't wait to give him, its a valuable piece of wood from over 40 years ago that has been just hanging around in my garage.
Come on Tom call me you have my home number I will meet you anywhere you like. Your a crook and your family especially your political sister are just a bunch of lowlife scammers. Must be one hell of a sunday meal when you all sit down to eat. Hopefully you all keep your wallets locked up for fear that one of you will try to steal the others wallet. I wish the worst of luck on you and your family actually I wish that on any children of yours as well. Maybe a freak car accident at night so you can suffer anguish like you have given.
Posted by: holter Date: Monday, June 01, 2009 3:50:52 AM
In reply to: None Post # of 63764
Definition of a SCAM!
"A confidence trick or confidence game (also known as a bunko, con, flim flam, gaffle, grift, hustle, scam, scheme, or swindle) is an attempt to defraud a person or group by gaining their confidence. Sometimes con men rely on naive individuals who put their confidence into get-rich-quick schemes, such as "too good to be true" investments. It may take years for the wider community to discover that such investment schemes are bogus. By the time they are discovered, many people may have lost their life savings to something in which they have been persuaded to invest."
Does Seaway Valley Capital Corporation fit that BILL?
Seaway Valley Capital Corporation CEO Thomas Scozzafava Outlines Expansion Strategies
Date : 06/01/2009 @ 5:00AM
Source : PR Newswire
Stock : (SWVL)
Quote : 0.03 0.0 (0.00%) @ 7:16AM
GOUVERNEUR, N.Y., June 1 /PRNewswire-FirstCall/ -- Seaway Valley Capital Corporation (OTC:SWVL) (BULLETIN BOARD: SWVL) , a diversified holding company, today said that Founder and CEO Thomas Scozzafava, in an interview with analyst Francis Gaskins, stressed that the Company is looking to expand its portfolio of companies beyond northern New York.
"We are looking for a diversified portfolio of investments. The traditional capital markets ignore smaller communities where, we are confident, there is much positive entrepreneurial activity. We are working to grow Seaway Valley into a brand with a series of success stories. We are also looking to grow our portfolio, with perhaps energy and technology companies in the near term, to improve our return to shareholders," Mr. Scozzafava said.
The complete interview is available at : http://www.stoxrox.com/swvl-b.mp3 The interview includes an explanation of how Mr. Scozzafava is developing a publicly traded incubator for the benefit of shareholders. It also details his strong merchant banking background.
Patrick Hackett Hardware Company (http://www.hackettsonline.com/), one of nation's oldest retailers, wholly owned by Seaway Valley, is looking to expand outside northern New York, the Company's CEO said. Its wholly owned brewing company, Sackets Harbor Brewing Company (http://www.1812ale.com/), is also looking to expand its 3,000 retail accounts within and beyond Florida and New York, Mr. Scozzafava said. Additionally, Seaway Valley is also working to expand the operations of Alteri Bakery, Inc. (http://www.alteribakery.com/), also wholly owned, with additional capital expenditures to serve a broader region and do so more profitably.
Seaway Valley Capital Corporation (http://www.seawayvalleycapitalcorp.com/) makes equity, equity-related, and debt investments in companies that require expansion capital. Seaway also seeks investments in leveraged buyouts and restructurings. Seaway will consider investment opportunities in a number of different industries, including retail, restaurants, consumer products, media, business services, manufacturing, and select technologies.
Posted by: winnotlose Date: Tuesday, June 02, 2009 4:14:22 PM
In reply to: rpt who wrote msg# 213091 Post # of 213098
More "fluff" from Tommy boy today;
Seaway Valley Capital Corporation's Sackets Harbor Brewing Company and Its War of 1812 Amber Ale Cited in New York Post
Jun 2, 2009 11:51:00 (ET)
GOUVERNEUR, N.Y., June 2, 2009 /PRNewswire-FirstCall via COMTEX/ -- Seaway Valley Capital Corporation (SWVL, Trade ), a diversified holding company, is pleased to announce that today in the New York Post's print edition the village of Sackets Harbor was cited as a village "rich in maritime history and summertime scenery" in the Post's Travel section. The article, entitled "1812 and All That," also featured recommendations of activities and suggested that visitors "Inquire after the local brew of choice, Sackets Harbor Brewing Company's War of 1812 Amber Ale." The article's online version can be viewed at:
www.nypost.com/seven/05152009/entertainment/travel/_97_sackets_harbor__new_york_169266.htm
About Sackets Harbor Brewing Company:
Sackets Harbor Brewing Company develops, produces, and markets micro brewed beers such as the award winning "War of 1812 Amber Ale" and "Railroad Red Ale" as well as "Thousand Island Pale Ale", "1812 Amber Ale Light" and "Harbor Wheat" craft beers. Its "War of 1812 Amber Ale" is the company's flagship brand and was the winner of a Silver Award at the 1998 World Beer Championship. The company has also developed complementary products such as Sackets Harbor Coffee and Sackets Harbor Brewing Co. Root Beer.
www.draftdedeforcongress.blogspot.com
AHHHHH hahahahahaha. She thinks she can win as a Democrat. That's outrageous!
Tom Scozzafava ripped off his loyal honest investors and abused their trust massive...
40 Milllion$ STOLEN by third party CD holders...
Now he tells all he wants to invest/expand blablabla ...WITH WHAT MONEY PLEASE ???
TWO Reverse SPLITS already ?
The lies go on...and on and on...
TS stole our piggybanks and he will do again with other people believing his bluesky BULLSHIT...this CROOK should be behind bars imo....imminent !!!!!!
BUT WAIT..the good news is that the SEC is looking more closely and takes actions since Obama...watch out T.S. ..they get your ASS ...very soon....and then i laugh, you sucker.....your case is already reported to the SEC long time ago...and bet on it...YOU PAY FOR ALL !!!!!!!!!!!!!!
I shit on the money i lost...but YOU will be behind bars...count on that !
Regards,
Your Seaway "Rocketstock" Investors from all over the world (USA/Austria/Spain/Germany....)
P.S. i think i spoke out of the heart of all investors involved....
SWVL 2x8K today
http://www.sec.gov/Archives/edgar/data/884380/000109690609000651/0001096906-09-000651-index.idea.htm
http://www.sec.gov/Archives/edgar/data/884380/000109690609000649/0001096906-09-000649-index.idea.htm
Seaway Valley to sell stocks
HACKETTS PARENT: Proceeds will be used, for debts, restocking
By MAX R. MITCHELL
TIMES STAFF WRITER
TUESDAY, JUNE 9, 2009
ARTICLE OPTIONS
A A A
http://www.watertowndailytimes.com/article/20090609/NEWS05/306099957
OGDENSBURG — The parent company of Hacketts department stores is looking to sell millions of dollars in stock to pay down its debts and get goods back on the shelves.
Seaway Valley Capital Corp. announced Monday it has agreed to sell up to $20 million in stocks over a three-year period to Auctus Private Equity Fund LLC, based in Boston.
"This funding commitment has come at a crucial time for Seaway and its operating subsidiaries. Proceeds from this funding will be used to repay debt," Thomas W. Scozzafava, chief executive officer of Seaway Valley Capital Corp., said in a statement.
Calls to Auctus Private Equity Fund were not returned Monday.
ADVERTISEMENT
Before the stock can flow the company must register the transactions with the U.S. Securities and Exchange Commission.
Although the company expects to sell all $20 million in stocks, they will be sold in smaller chunks over the three years, Mr. Scozzafava said. He plans to register a sale of $7.5 million within five to 10 days, he said.
"The company can register shares and can put them on the shelf and issue them when they need it," he said.
The company has been struggling to pay off a $5 million line of credit secured in January 2008 through Wells Fargo Bank. In March the bank demanded repayment. According to Mr. Scozzafava, Hacketts has paid back more than $4 million, but the company's cash flow has been significantly reduced.
"Wells Fargo is down to about $900,000 (in cash) and we've got other creditors we would repay with these proceeds," Mr. Scozzafava said. "Across the whole company we'd look to settle claims of, over time, $5 million to $7 million."
The money raised through stock sales also will go toward buying automated rollers and flash-freezing equipment at the Alteri Bakery Inc., Watertown, which would allow the company to produce more efficiently with the current work force, he said.
Money also will help settle cash discrepancies between vendors at the Sackets Harbor Brewing Co., and will put more inventory on the shelves at the Hacketts stores in St. Lawrence and Jefferson counties.
It will not significantly affect the proposed stores in Lake Placid and Queensbury, he said.
"They're on hold until we get Wells Fargo out and we get our financial condition in shape," he said.
Mr. Scozzafava said he does not expect any immediate changes at the corporation because of the transactions.
"In the long term it will allow us to hire a more through management, a more complete management team at Seaway," he said.
Seaway Valley holdings include Sackets Cantina in Sackets Harbor and five franchise locations of Jreck Subs.
Tom...you are next..
SEC Charges Former Quest Executives With Fraudulently Concealing Millions of Dollars of Self-Dealing
FOR IMMEDIATE RELEASE
2009-139
Washington, D.C., June 17, 2009 — The Securities and Exchange Commission today charged two Oklahoma City residents with securities fraud and other violations for a scheme in which they misappropriated to themselves millions of dollars from Quest Resource Corporation, Quest Energy Partners, L.P. and their affiliates while they were executives at the company.
http://www.sec.gov/news/press/2009/2009-139.htm
http://www.watertowndailytimes.com/article/20090626/NEWS05/306269937
Hacketts closing two stores
MASSENA, GOUVERNEUR: Liquidation sale starting July 9 to include inventory from St. Lawrence Centre
By PAUL MITCHELL
JOHNSON NEWSPAPERS
FRIDAY, JUNE 26, 2009
ARTICLE OPTIONS
A A A
Hacketts stores in Gouverneur and St. Lawrence Centre mall in Massena will close their doors.
Thursday was the last day to buy merchandise at the Massena Hacketts, according to store employees. The store will ship any remaining merchandise to the Gouverneur Hacketts to be included in that liquidation sale.
The Hacketts store in Gouverneur reportedly will close in early or mid-August. A liquidation sale at that store is to begin July 9. The store already is selling items at 20 percent to 40 percent off.
Thomas W. Scozzafava, chief executive officer of Seaway Valley Corp., which owns Hacketts, and Ronald J. Patnode, manager of St. Lawrence Centre, could not be reached for comment.
ADVERTISEMENT
"It's going to mean a loss of jobs and a loss of a nice store where you could go," said Gouverneur Mayor Dorothy L. Vorce. "I think it's going to hurt a lot of people. I just feel very sad about it."
Hacketts representatives filed Wednesday for a special business liquidation sale license with the village of Gouverneur.
These two store closings follow the June 8 announcement that Hacketts was closing its Canton store, which is in the middle of its liquidation sale. The Canton Hacketts is expected to close July 15. The Payless shoe store inside the Canton Hacketts also will cease operations.
"We were forced to make this difficult decision in order to accelerate our payment to Wells Fargo," Mr. Scozzafava said June 8. "The only way was by closing stores."
Stores in Watertown and Pulaski closed earlier this year. Ogdensburg, Potsdam, Sackets Harbor and Tupper Lake stores remain open.
The store closure in Canton will mean the loss of up to two dozen full- and part-time jobs. A similar scenario is expected at the Gouverneur and Massena locations.
Seaway Valley Capital Corp. obtained a $4.7 million loan from Wells Fargo to pay for inventory with an agreement the company would raise additional capital to pay off the loan.
In March, Mr. Scozzafava said he had secured contracts to provide that new capital, but when the national credit crisis hit, the investors used what he described as "wiggle room" in the contract to hold off making the investment.
That forced the company to use the stores' cash flow to repay the Wells Fargo loan while Mr. Scozzafava scrambled to find a new source of funding. He reported in March that $3.1 million of the $4.7 million loan had been repaid.
Times staff writer Lori Shull contributed to this report.
I have visited this site and got lots of information about part-time job than other sites that i visited
part-time job
what is chris swartz up to these days?
is there a connection between earl randy jacobs of orlando, florida and christopher swartz of any kind. i heard randy and chris were business partners?
[url=http://cplex60pills.com/]carb blocker[/url] Fantastic blog you have here but I was wanting to know if you knew of any discussion boards that cover the same topics talked about in this article? I’d really love to be a part of group where I can get comments from other experienced people that share the same interest. If you have any suggestions, please let me know. Bless you!
Tom Scumsofava ruins everything he touches.
ive spent the last three yers of my life working for this "business man" hes a joke his idea of legitimitly running a business is to dump investors money into a business then sit at the end of one of the two bars he owns swilling top shelf scotch and burbon then calling his underpaid managment staff and harassing them on their off time holding them responsible for problems he the owner should be handling he hasnt put one ounce of actual work into any thing he acctually dose rather from the sounds of it steals investors money so he can contuine to sleep in his pent house atop main st sackets harbor and try to cheat on his wife whenever shes not around( this inclueds groping inccocent waitresses).....this guys a real winner i hope none of you are expecting your money back i can say with complete confidence this will never happen
We stumbled over here by a different web address and thought I should check things out.
I like what I see so i am just following you. Look forward to exploring your web page for a second time.
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I drop a leave a response when I especially enjoy a post on a site
or if I have something to contribute to the conversation.
Usually it is a result of the passion displayed in the post I read.
And after this post "Where is Tom Scozzafava (and his sister Dede?)".
I was actually excited enough to drop a commenta response :-P I do have a couple
of questions for you if you usually do not
mind. Is it only me or do a few of these comments appear as if they are written by brain
dead individuals? :-P And, if you are posting on additional social
sites, I'd like to keep up with you. Could you make a list all of all your shared pages like your linkedin profile, Facebook page or twitter feed?
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This is a topic that's near to my heart... Cheers! Where are your contact details though?
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I usually do not write a leave a response, however I looked at some of the remarks here "Where is Tom Scozzafava (and his sister Dede?)".
I actually do have a couple of questions for you if you do not mind.
Is it simply me or do some of the responses look as if they are left
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Christopher Swartz, former owner of Jreck Subs, admitted Monday that he defrauded investors and lenders in the company out of what federal prosecutors say was at least $9.5 million.
His father, H. Thomas Swartz, was sentenced to 3 1/2 years in prison in 1997 on a bank fraud conviction. A jury found his Watertown law firm paid an official at Jefferson National Bank $333,000 in kickbacks to get all of the bank's legal business. The bank official also pushed through more than $1.8 million in loans for Thomas Swartz and his businesses.
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Thomas Swartz was convicted of conspiracy, bank fraud and bribery.
At his sentencing, he apologized to his family and to the law profession for his actions, which he said he never considered fraudulent or deceptive.
The father owned Jreck Subs before his conviction.
The Swartz family took the father's imprisonment hard, said Mark Streiff, a longtime friend of Christopher Swartz.
"They were pretty sad about that," Streiff said. "They took it like any family that's going to lose their father for so long."
Streiff invested in Jreck Subs years ago through Christopher Swartz. When Streiff asked him two years ago how the stock was doing, he got a surprise answer.
"He just said, 'It's no good, we don't have that anymore,'" Streiff said. "I thought, How can it be no good if Jreck Subs is still going?"
Streiff, who doesn't remember how much he invested in Jreck, was surprised to learn Monday about Chris Swartz's guilty plea.
"I didn't know any of that was going on." said Streiff, who knows Chris Swartz through lacrosse tournaments Swartz has sponsored.
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