Quovadx Inc and Cory Isaacson, Slatkin Investor. SEC filing claims cult gets company tangibles?
Maureen
agreement to supply *something* to the 'church of scientology' "for
it's internal use."
IANACPA.
Is this an unattended tentacle of Slatkinfraud, and/(or the same)
cults Management tech still working?
http://www.oursites.org/coryisaacson/myself.htm
Hello, my name is Cory Isaacson, and here is a little bit about
myself:
I am an executive in the software industry, and the proud
father of 3 wonderful children. My wife, family and I live in
Broomfield, CO, just north of Denver. In addition to work, I am
interested in music and the arts, as well as other home projects to
keep me occupied.[End]
http://74.125.95.132/search?q=cache:wSiToPVW42MJ:www.slatkinfraud.com/inv_2001_4a.htm+cory+isaacson+reed+slatkin&cd=1&hl=en&ct=clnk&gl=us&client=firefox-a
http://www.slatkinfraud.com/inv_2001_4a.htm
Slatkinfraud 2001 final investor list A-K
Isaacson, Cory & Kim .
Topanga CA, 90290
Cory's company was listed in the 1997 WISE Directory:
Compuflex International
Cory Isaacson
9310 Topanga Canyon Blvd., 1st Floor
Chatsworth, CA 91311
Isaacson, Cory & Kim .
Topanga CA, 90290
-----
Filed 2004:
http://www.secinfo.com/dvjdn.1e4.d.htm
Mr. Isaacson: ..... Topanga, CA 90290,
Quovadx Inc · 10-Q · For 3/31/04 · EX-10.12
Filed On 8/16/04 4:04pm ET · SEC File 0-29273 · Accession
Number 1035704-4-459
15.
b. Mr. Isaacson shall be based in Los Angeles, California. In
the course of his employment duties, Mr. Isaacson shall be required to
travel on behalf of Quovadx as reasonably necessary, estimated at
approximately twenty-five percent (25%) of available work time. On a
semi-annual basis, Mr. Isaacson shall work from a home office at his
vacation residence in Clearwater, Florida. During such periods his
ability to travel may be restricted, but will otherwise be available
to perform full-time work. Further, Isaacson may need to obtain a
personal (unpaid) leave — perhaps as much as two months — to address
personal matters. Any such leave may extend his employment term by the
amount of the leave or 2 months whichever is less. Mr. Isaacson will
coordinate any such schedule issues with his direct manager at
Quovadx.
[...]
f. Notwithstanding anything to the contrary in this Agreement,
Mr. Isaacson is hereby granted a fully paid-up, perpetual,
irrevocable, non-exclusive, world-wide license to use the WebAccel
Software and its components in object code form solely for non-
commercial purposes and to sublicense (at no charge but with proper
restrictions including a restriction against use for any commercial
purpose, a restriction against sublicensing, a restriction against
using the products for third party transactions, commercial time
sharing, rental or service bureau use and against publicly performing
or publicly displaying the products, and a restriction against copying
the products except for one copy for backup or archival purposes) the
said software (a)*** to the Church of Scientology for its own internal
use; *** and (b) and with the approval of Quovadx on a case-by-case
basis (such approval not to be unreasonably withheld) to other
charitable organizations for their own internal use provided that no
such organization is a potential customer of Quovadx.
---
http://denver.bizjournals.com/denver/stories/2008/03/10/daily50.html
Former Quovadx execs agree to SEC fines
Denver Business Journal
Two former executives of software company Quovadx Inc. have agreed to
fines levied by the Securities and Exchange Commission for their part
in a scheme to inflate the company's revenue.
The SEC said Thursday Lorine R. Sweeney, the former CEO, and Gary T.
Scherping, the former CFO, didn't admit or deny the allegations but
agreed to pay civil penalties. Sweeney will pay $75,000 and Scherping
will pay $70,000.
Both former executives also are barred from serving as a corporate
officer or director for five years.
The SEC alleged the two in 2003 orchestrated "the fraudulent
recognition of over $12 million in software licensing revenue" by
Greenwood Village-based Quovadx. Because of their actions, the SEC
said, Quovadx overstated its software revenue by about 9 percent. The
SEC also found similar fraudulent activity in the third quarter of
2002.
Sweeney and Scherping, the SEC alleged, lied to the company's auditor,
circumvented internal controls and falsified books and records.
In addition to the fine, Scherping was suspended from appearing or
practicing before the SEC as an accountant. He can apply for
reinstatement after five years.
The SEC closed its investigation into Quovadx in July 2007. The
company's settlement did not involve a fine, but a pledge to halt any
future violations of securities laws.
The SEC launched its investigation in April 2004 after Quovadx was
forced to restate its financials when a company in India ordered
millions of dollars of software but ultimately failed to pay. Sweeney,
Scherping and other executives later quit.
----
http://www.sec.gov/litigation/litreleases/2008/lr20493.htm
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20493 / March 13, 2008
Accounting and Auditing Enforcement Release No. 2798 / March 13, 2008
SEC v. Lorine Sweeney and Gary Scherping, Civ. No. 07-CV-01511 (WYD-
MEH) (D. Colo.)
Former CEO and CFO of Quovadx, Inc., Lorine R. Sweeney and Gary T.
Scherping, Agree to Settle SEC Action Charging Them With Fraudulent
Revenue Recognition in 2003; Relief Includes Officer-And-Director Bars
and Civil Penalties
The Commission announced today that final judgments were entered on
February 29, 2008, against Lorine R. Sweeney and Gary T. Scherping,
the former CEO and CFO of Quovadx, Inc., in the SEC’s enforcement
action charging them with orchestrating a fraudulent revenue
recognition scheme at the company during 2003. The final judgments
permanently enjoin them from violating the antifraud provisions of the
federal securities laws, circumventing internal controls, falsifying
books and records, making false statements to an auditor, and falsely
certifying public filings (Section 17(a) of the Securities Act of 1933
and Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934
and Rules 10b-5, 13b2-1, 13b2-2, and 13a-14, thereunder), as well as
aiding and abetting violations of the reporting, books and records,
and internal control provisions of the Exchange Act (Sections 13(a), 13
(b)(2)(A) and 13(b)(2)(B) and Rules 12b-20, 13a-1, 13a-11, and
13a-13). They also impose five-year officer and director bars and a
$75,000 civil penalty against Sweeney and a $70,000 civil penalty
against Scherping. Without admitting or denying the allegations of the
Commission’s previously-filed complaint, Sweeney and Scherping
consented to the entry of the final judgments.
The Commission’s complaint alleges that Sweeney and Scherping
orchestrated the fraudulent recognition of over $12 million in
software licensing revenue between the second and fourth quarters of
2003, by Quovadx, then a Colorado-based software development and
licensing company (now known as Healthvision). The complaint alleges
that, as a result, Quovadx overstated its software revenue by
approximately 9 percent to nearly 180 percent. The Complaint also
alleges that Sweeney and Scherping aided and abetted Quovadx’s
premature recognition of $250,000 in revenue into the third quarter of
2002, overstating its software licensing revenue by 10 percent for
that quarter. The Complaint further alleges that Sweeney and Scherping
made false representations to Quovadx’s auditor and signed false
disclosure certifications in connection with Quovadx’s reports on Form
10-Q for the pertinent quarters and its annual report on Form 10-K for
2003. Finally, the Complaint alleges that Sweeney and Scherping
circumvented internal accounting controls and falsified books and
records in connection with the improper transactions.
In a related enforcement action, the Commission instituted today a
settled proceeding against Scherping pursuant to Rule 102(e) of the
Commission’s Rules of Practice, suspending him from the privilege of
appearing or practicing before the Commission as an accountant, with
the right to apply for reinstatement after five years. Exchange Act
Release No. 34- 57490 (March 13, 2008).
The Commission had previously brought settled enforcement proceedings
against Quovadx, the principal officers and employees of Quovadx
involved in the revenue recognition fraud, and the principals of the
third-parties who aided and abetted that fraud. The settlements with
Sweeney and Scherping conclude the Commission’s investigation into
this matter.
For additional information, see below:
* Litigation Release No. 20197 (July 18, 2007).
* Securities Act Release No. 33-8825 (July 17, 2007) (Quovadx)
* Exchange Act Release No. 34-56083 (July 17, 2007) (Renjilian)
* Exchange Act Release No. 34-56084 (July 17, 2007) (Davis)
* Exchange Act Release No. 34-56334 (August 29, 2007) (Collins)
* SEC Complaint (Sweeney and Scherping)
-----
http://www.cfo.com/article.cfm/9244047/c_9223494
http://www.cfo.com/printable/article.cfm/9244047
Ex-CFO Sues for Defamation
Quovadx often falsely charged that the former finance chiefs "had
engaged in improper and/or fraudulent accounting practices," he
alleges.
Stephen Taub and Dave Cook, CFO.com | US
May 24, 2007
The former CFO of Quovadx, a small software company, is suing his
former employer for defamation, according to The Denver Business
Journal.
Gary Scherping alleges that Quovadx made "numerous public statements
that falsely indicated [he] had engaged in improper and/or fraudulent
accounting practices," according to the report. Scherping wants the
company to stop defaming him and to pay an unspecified amount in
damages, the newspaper added.
Scherping joined the company in 2000 and became CFO in 2001, the
Business Journal reported. On April 12, 2004, the company announced
the resignations of Scherping and chief executive officer Lorine
Sweeney. In a press release, chairman Jeffrey Krauss thanked "Lorine
and Gary for their hard work and dedication to Quovadx."
That same day, another Quovadx press release disclosed that the
Securities and Exchange Commission had elevated its informal inquiry
into the company's restatement to a formal investigation. That
restatement, disclosed a month earlier, "remove[d] all revenue
associated with contracts between the company and Infotech Network
Group from its published financial reports for 2003," according to a
press release at the time. "To date, Quovadx has been unsuccessful in
collecting funds from this customer."
A May 13, 2004 press release asserted that "Infotech continues to owe
the company approximately $14.1 million for software that was shipped
to Infotech" under a September 8, 2003 distribution agreement. The May
13 release also noted "an outsourcing agreement entered into between
Quovadx and Infotech on September 8, 2003, under which Quovadx would
pay up to $2.46 million to Infotech."
Added the May 13 release: "New management has determined that this
outsourcing agreement was likely an inducement to Infotech to enter
into the distribution agreement.... There also appears to have been an
additional inducement to Infotech to enter into the distribution
agreement in the form of discussions between Infotech and Quovadx's
former management regarding a target of an additional $10 million in
outsourcing services to be purchased by Quovadx from Infotech on an
annual basis."
According to the Business Journal account of the former CFO's court
filing, "The May 13, 2004, press release devastated Mr. Scherping's
reputation." Press releases and related statements, the complaint
reportedly asserted, gave the public the understanding "that Mr.
Scherping had engaged in improper and even fraudulent financial
accounting as CFO of Quovadx."
Quovadx director of corporate communications Andrea Lashnits said the
company had no comment at this time.
-----
http://resources.bnet.com/topic/quovadx.html
Last Fiscal Year Sales:$83.1M
-----
Maureen
Maureen
> A SEC filing in 2004 appears to make a claim that this company has an
> agreement to supply *something* to the 'church of scientology' "for
> it's internal use."
>
> IANACPA.
>
> Is this an unattended tentacle of Slatkinfraud, and/(or the same)
> cults Management tech still working?
>
> http://www.oursites.org/coryisaacson/myself.htm
> Hello, my name is Cory Isaacson, and here is a little bit about
> myself:
> I am an executive in the software industry, and the proud
> father of 3 wonderful children. My wife, family and I live in
> Broomfield, CO, just north of Denver. In addition to work, I am
> interested in music and the arts, as well as other home projects to
> keep me occupied.[End]
>
> personal matters. Any such leave may extend his employment term by the
> amount of the leave or 2 months whichever is less. Mr. Isaacson will
> coordinate any such schedule issues with his direct manager at
> Quovadx.
>
> [...]
>
> f. Notwithstanding anything to the contrary in this Agreement,
> Mr. Isaacson is hereby granted a fully paid-up, perpetual,
> irrevocable, non-exclusive, world-wide license to use the WebAccel
> Software and its components in object code form solely for non-
> commercial purposes and to sublicense (at no charge but with proper
> restrictions including a restriction against use for any commercial
> purpose, a restriction against sublicensing, a restriction against
> using the products for third party transactions, commercial time
> sharing, rental or service bureau use and against publicly performing
> or publicly displaying the products, and a restriction against copying
> the products except for one copy for backup or archival purposes) the
> said software (a)*** to the Church of Scientology for its own internal
> use; *** and (b) and with the approval of Quovadx on a case-by-case
> basis (such approval not to be unreasonably withheld) to other
> charitable organizations for their own internal use provided that no
> such organization is a potential customer of Quovadx.
http://www.ticker.com/Annualreport/QVDX/QVAD-2005.pdf
FORM 10-K
QUOVADX INC - QVDX
Filed: March 08, 2006 (period: December 31, 2005)
8. Related Party Transactions
The Company acquired its WebAccel product from CMI Corporate
Marketing, d/b/a Compuflex International ("Compuflex") in August 2003.
An executive officer of the Company is the sole stockholder of
Compuflex.
Compuflex has received, royalty fees of $500,000 over two years from
the Company in accordance with the terms of the purchase agreement.
Through December 31, 2005, the Company paid Compuflex $500,000 in
royalty payments. For each of the next three years ending on
September
30, 2006, 2007 and 2008, the Company shall also be obligated to pay
royalty
fees to Compuflex equal to 20 percent of the revenue recognized during
the
preceding four fiscal quarters from sales of WebAccel software license
fees.
(b) Any fraud, whether or not material, that involves management or
other employees who have a significant role in the Registrant's
internal control over financial reporting.
Date: March 7, 2006" [...]
<The Company is engaged from time to time in routine litigation that
arises in the ordinary course of our business.>
---
M
> http://www.cfo.com/article.cfm/9244047/c_9223494http://www.cfo.com/printable/article.cfm/9244047