Friday, July 15, 2005
BPTR: Anthony Cataldo and fraud accusations
Anthony J. Cataldo was appointed Executive Chairman in May 2002. He is the person we believe is most responsible for planning and directing the illegal activities we allege in this complaint. Mr. Cataldo has held similar positions
in the following other public companies, namely 1st Miracle Entertainment, Senetek PLC and Management Technologies, Inc. It should be noted that 1st Miracle Entertainment was and may still be the subject of an investigation by the SEC for activities during the period Cataldo was in control of the company.
The worst allegation is probably this one:
There's also this one:
On September 16, 2003, Calypte, Cataldo and Oyakawa published a statement [which has since been removed from their website] announcing that “Calypte Biomedical Corporation, the developer and marketer of the only two FDA approved HIV-1 antibody tests that can be used on urine samples, as well as an FDA approved serum HIV-1 antibody Western blot supplemental test announced today that it has received a letter from World Vision Africa, one of the largest NGOs (non-government organization) in Africa, outlining an intent to purchase $4 million of Calypte's urine based HIV/AIDS tests. In a letter dated September 16, 2003, Mr. Dida Guyo, Procurement Officer for World Vision's Africa Regional Office in Nairobi, Kenya, stated that World Vision Africa spends over $1 million quarterly on HIV tests and that World Vision Africa commits to change this quarterly purchase of HIV tests from the standard blood tests to Calypte Biomedical's urine based HIV/AIDS test.”
On October 16, 2003, World Vision published a statement announcing that “September 16 announcement from Calypte Biomedical Corporation reporting that World Vision intends to purchase $4 million worth of its urine-based HIV/AIDS test kits is incorrect. World Vision has no agreement and does not anticipate any agreement with Calypte for purchasing such kits in the future. World Vision has extensive programming to prevent HIV infection as well as care for those affected by AIDS in Africa, Asia and elsewhere. However, it generally relies upon government health agencies to perform HIV tests and does not purchase testing kits independently.”
Our-street.com received an email from John McCoy, the Media Relations Manager of World Vision International. In the email Mr. McCoy wrote “A letter was allegedly faxed from a World Vision procurement officer in Nairobi, indicating that World Vision had an interest in purchasing $4 million worth of Calypte's kits. Our purchasing officer denies sending the letter and, in fact, would have had no authority to sign such a letter of intent to purchase HIV testing kits from Calypte. He alleges that his signature was forged on WV stationary. We are continuing to investigate the matter. There was no consultation with us before Calypte sent out the Sept. 16 press release. If Calypte had bothered to talk with us, we would have told them that such a purchase was highly unlikely. Calypte soon conceded that, in fact, World Vision had no intent to purchase testing kits. In fact, World Vision does not routinely do HIV testing as part of its work. We asked for a correction. Calypte dragged its feet, asking that a clarification be part of another release on authorization of its kits in Kenya. Language that was presented to us to correct this error was unsatisfactory. Hence we issued our own release yesterday.
On October 28, 2003 Our-Street.com received another email from John McCoy, the Media Relations Manager of World Vision International. Mr. McCoy wrote “Below is our official comment on the alleged letter of intent. I should point out that, following our internal inquiry, the procurement officer continues to be employed by WV in Nairobi. A letter was allegedly faxed from a World Vision procurement officer in Nairobi, indicating that World Vision had an interest in purchasing $4 million worth of Calypte's kits. Our purchasing officer denies sending the letter and, in fact, would have had no authority to sign such a letter of intent to purchase HIV testing kits from Calypte. He alleges that his signature was forged on WV stationary, while Calypte's agents in Nairobi assert that the WV officer authorized them to issue the letter. We have no conclusive proof, but based on our review we believe that our employee's denial of involvement is accurate.
On October 2, 2003, Calypte, Cataldo and Oyakawa published a statement announcing that “Calypte Biomedical Corporation, the developer and marketer of the only two FDA approved HIV-1 antibody tests for use with urine samples, announced today that Marr Technologies Limited had increased its ownership in Calypte Biomedical through the open-market purchase of approximately 5.2 million shares of the company's common stock.
The [5.2 million] shares acquired on September 1, 2003 were the result of conversion to common stock of a convertible debenture dated September 1, 2003.
I'll do more digging later on.
UPDATE: The SEC reviewed and commented on an 8-K from BrandPartners:
1. Amend the report to include the required letter from the
formeraccountant. See Item 4 of Form 8-K and Item 304 of Regulation S-K.File the amendment under cover of Form 8-KA and include the ITEM 4.01designation, including the letter from the former accountant filed as an Exhibit 16.
2. When you engage a new accountant, please report the engagement in a new Form 8-K and comply with the requirements of Regulation S-KItem 304 (a)(2). In making any disclosures about consultations withyour new accountants, please ensure you disclose any consultations up through the date of engagement.