October 18, 2007 by Mystik Boucher
As of earlier this afternoon I have declared that SLC is officially in bankrupt status.
Bob Perry has abandoned his shareholders and further refuses to repay his debts to any
shareholder, either original SLZ investors, BOB, or any SLC shareholders.
As many of you have read here, Bob Perry openly admitted there were no promises of assets in this merger. Assets retained by MDS prior to the merger would be held by myself and liquidated as I saw fit. In that same thread I expressed my position on how those assets would be distributed, nothing has changed.
On the 15th of October, Samantha Goldigar asked "Do you think that SLC could split again into the original companies?". I then openly admitted that if a split was to occur, MDS would be bankrupt- In all honesty, there is no foreseeable future for any of the 3 companies.
In good faith I believe that I tried with Perry. I now believe Perry's intentions were dishonorable from the very beginning. It makes sense. Perry had IPO'd SLZ- where he had expressed the funds would be used for the development of SLZero. Not only would the merger have allowed SLZero to be developed free and at a loss of only sales percentages, but it also gave him a loan which he no longer had to repay. The only thing he ever mentioned to develop post-merger was SLZero- but he would never give any details other than mentioning obvious stuff, like placements of a login box- etc.
As of today, MDS now longer holds any Land Assets. They have all been successfully sold and merely awaiting payments to clear on the final sim. I do not have any other asset available to be disbursed to investors- with the exception of finding buyers for various aspects of our developments. The good news, Vstex has setup Risk Funds as stated on their website to help in situations such as this one. You can view more details here.
With all that being said. The newest loophole to hit the scene as professed by Samantha Goldnuget and Bob Perry- If the CEO relinquishes their shares, they walk away unscathed. The new CEO that people are tapping their skulls over- wondering why someone would take ZERO to payback someone elses debt- Well, the new CEO needs only distribute those shares as an option to an alt and dump them on market..
Thats all I have for now- I'll send an update when MDS distributions are being made.
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VSTEX press release: SLC-CCI end of talks
Since Second Life Creations (SLC), the result of a merger between 3 existing companies managed by Bob Perry and Mystik Boucher we've been searching for a way to bring the company back from the grave.
As we did for AVC, CGI, KFM, with the old management gone and denying any liability, we approached the major shareholder, to see if he could come up with some plan to save the company, a plan that had to be voted and approved by SLC shareholders. That's why we started talks with Spontaneous Rich, also President of Spontaneous Rich Investments (WSE:SRI).
After some talks and a good deal of time he came up with a proposal, which he submitted to the shareholders indicated in a list we provided. In short, the proposal was to bring CCI ( Carnage Center Inc) a privately held company to the VSTEX, launching an IPO and converting SLC shares into CCI ones. He asked the SLC shareholders to vote on 2 options:
1) accept the plan as it was sent them
2) do nothing.
Yesterday at late night (Italian time) we casually met inworld and he realized that Investor Merlin's assets in SLC were going to be given to Skip Oceanlane, ex vice president of Merling Investment Bank. This was the natural follow up to our announcement posted on october 22 here: http://www.vstex.net/?p=103&id=33
He told me he didn't like this, he questioned our right to turn over assets from Merlin to Oceanlane and basically it said he didn't want to give the assets to him. In a few minutes, he sent out another voting proposal, adding a third option that was about writing off any shares held by unactive (30 days or more) shareholders, turning them to active ones.
We feel that one shouldn't initiate a new voting procedure under new terms when shareholders are already voting on a proposal. He claims that he could not know about this transfer to Skip Oceanlane and that once we turn over the list of shareholders, it's no longer our business to interphere.
He also claims he lost way too much time on this issue, when he just wanted to help out SLC shareholders, since CCI did not need to have an IPO with the VSTEX or any other exchange (during the talks he said that many times).
Our answer is that he had no obligation to put forward a proposal. He decided to do it and we thank him for that. However, things should be done the proper way. We provided the shareholders list to him for his convenience, so he could contact the shareholders.
It's not up to him to accept or refuse any of the shareholders and asking the SLC shareholders to vote out other people doesn't look as a proper thing to do.
Also, SLC shareholders have still to accept the proposal sent to them. Nor Spontaneous Rich nor anybody else from CCI management can change the status of things. They can't decide which SLC shareholder is good and which one is bad.
In his last email he also stated that we let Mystik Boucher run away with over 300.000L$, have SLC bankrupt and allowed her to sell her sims.
We reject those accusations.
1) Mystik Boucher withdrew that amount of L$ long before SLC was declared bankrupt; the company was being effectively managed by Boucher's partner, Bob Perry. At that time it was an internal SLC affair.
2) Mystik Boucher declared bankruptcy status without a prior consultation with us. She posted an announcement and in a few minutes she was gone
3) We never had control over Mystik Boucher's sims, nor we had any way to prevent her from selling them. We just had no power, there.
We are now forced to end the talks with Spontaneous Rich, here representing CCI. We're willing to reopen them or to accept new proposal from other interested parties.
I'm available to give more details or information upon simple request.
Samantha Goldflake
VSTEX Communication and Public Relations Director
http://www.vstex.net
My commentary
I've done a little analysis of the probable value in the risk fund and some general reflections on the situation that can be found on my blog, Orient Lodge.
...
Hello Aldon,
I've read your post and thought I would give you further details before asking me to "act honorably" on figures that aren't accurate.
Furthermore, your insinuation that I am looking for ways to beat the system is highly inaccurate. The post I made regarding a new CEO
being able to option their shares is a loophole that Samantha suggested I had used- but I was never in control of SLC but only a few hours- and I made no changes to anything on the website.
While it's disappointing this situation has transpired, there is nothing I can do as an individual to remedy the situation but offer solutions to help minimize the loss for everyone involved. That is what put me in the hot seat to begin with. Everyone is chasing after Mystik for monetary solutions but I have never held any assets in the name of SLC to begin with. I did sell shares in SLC- so I should pay back approximately 180,000L to shareholders who bought after the merger? If so, it's safe to say that anyone else selling shares after merger should be responsible for the shares they have sold, correct? We're not talking about Mystik Boucher taking money and running- we're talking about a company bankrupting. In the country you and I live in- you sell assets belonging to the company and pay off creditors.
Who has such assets belonging to SLC? It's apparent that SLC had produced a LandBot system under the direction of Bob Perry- shouldn't investors be entitled to that? Any asset which Bob Perry held before the merger should be distributed to pre-merger investors, the same way I am distributing my assets. It's also pretty apparent that if either of our assets would not collectively meet the investors due to them selling their shares in SLC post-merger, then assets would rollover and be able to pay new investors. This concept is what bunts heads with VStex- because I will not go this route alone. It's simply not fair for pre-merger MDS investors to settle for it's assets being split between 4+ million shares when they invested in a company with 2.5 million shares, when Bob Perry can accept responsibility for his investors and the both of us use any remaining assets to distribute among post-merger SLC shareholders.
It aches my belly knowing that someone such as yourself will write a blog just to point fingers instead of offer solutions and factual details. Bob Perry was running SLC- I was merely a silent owner. He ran the company it's entire time while on Vstex. The moment he steps down and bails out on investors, I get put in the limelight because I only want to do what is fair.
Also, Samantha stated I withdrew 333,896L from Vstex, but she fails to mention 150,000L or so came from assets I held in other companies. Samantha is clearly biast towards me as I have coursed her as well for not being remotely intelligent about this and asking only 1 owner to contribute in this situation. I tried speaking to her yesterday about minimizing the damage here, but her demeanor is- "Well, you accepted Bob Perry's shares, so you have to pay shareholders.". That's the loophole, a CEO can give away their shares and walk away from their debts, allowing the next CEO to dump shares in options and raid the company.
Please do your part in responsible journalism and use facts,
Mystik
Weird Comments By Mystik
Let me ask... she is on the board and gained about 1 million shares of SLC from the merger... she did no work for the company and she refuses to consider any of her assets as property of SLC. Saying I should have fired her would then mean she was just GIVEN 1 million shares for nothing. Her argument makes no sense.
Trying to get to the facts
Thank you for finally responding. I had sent you an email Thursday at 8:59 AM trying to get information about what was going on, and you never responded. I am glad you have finally responded.
You say that L$ 150,000 of the L$ 333,896 that you withdrew from VSTEX came from other assets. What assets where those and how did you come to have those assets?
As to whether we are talking about L$ 180,000 or L$ 333,896 that ought to be paid back to share holders, you raise a good question about who should be compensated, and some of my other sources do tend to support that you only cashed about about L$ 185,000 of SLC stock.
I am sure that if you spoke with VSTEX, you could get details of the shareholders that held positions in SLC when it was imported into VSTEX on August 30th and could adjust that for shareholders that subsequently sold their positions.
However, it is not safe to say that anyone else selling shares post merger should be held accountable. People selling small amounts over time probably shouldn't be held accountable, nor should people who did not have director roles. Directors have fiduciary responsibilities to their companies. However, if other directors sold major lots of SLC they probably work with VSTEX as well to bail out investors. I will investigate to see if there are any indications of other directors making major sales of SLC stock.
Concerning the fairness of the merger, it would have seemed that this is something that should have been discussed at the time of the merger instead of a couple of months later. Likewise, before you accepted Perry's stock, you should have made sure that you fully understood the terms.
I look forward to any other discussions about what has happened, what we can learn from it, and how we can protect both current shareholders, as well as shareholders to come.
OK
The fairness was there-Bob issued 10% of his personal holdings to MDS investors for MDS aquisition & development of SLZero. For IPO buyers in MDS, it was equal to or above 91% of all shares and equal to 0.29L per share (29% investment return). For the other 9% of post-IPO stock buyers, that 10% Bonus varied in value. Will gladly send the spreadsheets that everyone agreed to.
MDS assets were kept by myself to maintain or disburse as I saw fit. The $150,000L or so was stock from VHI- which inevitably was used covering tier payments for Ecko Isle. As for getting a shareholder list from Vstex- the moment Bob forks up his loot- I'd do what I could for SLC, but it would only come from assets of original investors that sold their SLC shares- as it's not my responsibility to pay for his shortcomings, nor is it the original investor's of MDS.
As far as me selling any stock while being on board-those stocks were privately held and I never knew of or discussed any financial situation or shortcomings of SLC with Bob Perry. I- along with the original MDS board were merely listed because Bob Perry did not have a working board of directors. To say we were doing anything other than providing Bob with time to find a board is completely false. If we were so inactive and he REALY cared, why did he not remove us? We were turned into his smoke and mirrors and everyone is still buying the BS.
You can message my original board- Pangea Stonewall or Atlas Saintlouis and ask them if they had any prior knowledge to being on the board of SLC after I had relinquinshed my position to Bob Perry and if they agree to be on the board or not. Together, they both own a combined share number of more than 700,000- I don't suspect they will be pleased with Perry just like anyone else. As they are ORIGINAL investors who bought into MDS IPO and were never distributed a single share they didn't pay for. They are two of the people who added life to Mystik Designs way before it was a publicly traded company.
VSTEX statement
When you said you tried to talk to me in order to minimize damages you're not saying the truth.
During the day we talked and (again) you agreed to take over the CEO seat and to have all of Bob Perry's SLC owner shares transferred in your name.
As far as we knew, we were set. That's why we reopened SLC trading. Hours later, a major non-owner shareholder warned me that you told him you was going to bail out and that you was gonna deal only with "original MDS shareholders".
That's why I IMed you and I said you was doing the wrong thing. I never said you had to pay SLC shareholders, since nobody was asking you money. You had just to run the company after Bob Perry leaving. It was our intention to work with you in order to assess the situation and see what could be done.
You refused to listen and you wanted out. This is the story.
While you're at it, you may think about the people who bought into SLC when we reopened trading because you accepted to takeover the CEO seat.
Just a little note. You claim to have been a "silent owner". If you wanted to be an owner you shouldn't have sold every single share we could not lock and anyway being silent when one is responsible for people money it's not a good thing.
Samantha Goldflake
Vstex Communication and Public Relations Dept.
http://www.vstex.net
(IM me inworld for contacts)
You still have no clue here!
When you messaged me, I let you know my position:
// BEGIN QUOTE //
Mystik Boucher: Look- As I see it, I'm stepping to the plate and taking care of what I can- like it or leave it
Mystik Boucher: But I'm not paying his debts, it's been decided.
Samantha Goldflake: I see that our positions are very distant.
//END QUOTE //
As far as ownership of his shares- I never asked for them, it's quite the opposite. I never asked to be CEO- I needed only to make an announcement. I accepted position to begin minimizing the impact I KNEW and told you was coming when we last spoke. So STOP twisting the truth.
// BEGIN QUOTE //
Mystik Boucher: Can you set me up on the website to make announcements as well as remove Bob Perry's shares from outstanding and tell me his number of shares please.
Tobia Forcella: do you want to be the new SLC CEO? you can't post announcements it the company is halted...
Mystik Boucher: Yeah- we'll do what we can in meantime.
// END QUOTE // NOTE: I said meantime. You knew exactly what I was referring to.
You didn't want to remove his shares- You wanted another Monkey Canning to step in on a bankrupt company to save face for Vstex. Not this girl, I wasn't born yesterday. I protected my investors before this merger took place- juuuust incase something stupid happened- like Bob Perry pulling a tizzy.
See, that's where you're being entirely contradictive in this situation- You're suggesting that if I only had 1 share I wouldn't have ownership? I WAS a silent owner. I never made any decisions on anything SLC related as it was not my duty. I was never responsible for a single cent of SLC's - that's what you fail to mention, agree to, ackowledge, etc ETC ETC! MDS basically SOLD and preserved it's assets- and I took position as developer at SLC. You don't know shit about the merger- You just let Bob Perry walk away and you attempt to trick me into his debts, fuck off.
You've just given away the fact that Samantha Goldflake = Tobia Forcella.
I never spoke to YOU, SAMANTHA- about Bob's shares- Only Tobia. So how did I tell you, unless you are infact Tobia Forcella. If posted anonymously by Tobia- why use Samantha's signature. doot doot. :X
Please, for the sake of self preservation- shut up.
You, Jasper, Bob, Bart Heart- you're ALL crooked as a you can get. I almost think that you are Jasper- but I wont spew any conspiracy theories just yet.
VSTEX statement
It's been a few days since I last posted about this issue, since rather than following up with some nonsense it's been written, I worked on and for the Vstex.
As it's already been stated, you (Bob Perry, Mystik Boucher) came to us as SLC. The merger happened prior to the listing with us.
Some things must be noted:
1) you happily used our system to sell your assets and cash out: you never informed us that the SLC company prospectus wasn't correct and your listing as Chairwoman did not represent your true status
2) when you own a single share of a company, you own a quota of that company proportional to that share, so you're an owner, indeed; the point is that you was considered a co-owner of SLC as it's already been posted your quota was even greater than Bob Perry's and we ask "owners", the people running the company, to hold at least a 51% of the total shares
3) listing as SLC with us, it was general and common assumption that SLC had assets coming from the merged companies; you and Bob Perry have been hiding the truth
4) what about people who invested in SLC because they had some faith in you? You kept important facts hidden
5) you can't really declare bankruptcy status for SLC and then liquidate MDS assets and transfer the proceeds to MDS original shareholders
6) what about original MDS shareholders who got their shares changed into SLC ones and then sold all or part of them? Do they retain a lifetime right to get proceeds from MDS?
7) anyway, there were no "debts"; nobody asked you money because of Bob Perry; you was asked to take over SLC and manage the company. You only had to pay out dividends (if any)
Either with your silence or your actions you lured people into buying SLC shares as a solid investment and together with Bob Perry, you made the mess.
I won't spend much words about your other assumptions. If I do know about things you said to our CEO Tobia Forcella it's just because we do talk together and act like a team, unlike you and Bob Perry. Not to mention that I'm the one delegated to speak out and write in public.
Samantha Goldflake
Vstex Communication and Public Relations Dept.
http://www.vstex.net
You had the right to sell??
I'm curious... how is it fair, just or "allowed" for you to sell the part ownership of SLC you had without giving it your assets????? That makes no sense. So you sold ownership but thought keeping property of SLC was allowed. And if you claim it wasn't property of SLC, then what gave you any ownership of the company originally?
VSTEX statement
One could have a laugh here. Since we started enquiring about SLC Mystik Boucher has been talking like the new company never existed, or better like the new company wasn't "her thing".
MDS, MDS assets, MDS original shareholders. Yet she declares bankruptcy status for something that (we now know) she never wanted to be involved with.
In other blog posts she said she did not cares about stock exchanges and the likes. Well, from August 31 to September 16 she deposited 10L$ into our system, while she did withdraw 333.896L$.
Not a bad deal, if you ask me!
On August 30 SLC shares were imported into our exchange. SLC shares, not MDS. Mystik Boucher was credited 1.153.522 shares at a 2,90L$/share market value as "import from another exchange".
Mystik Boucher started selling her shares just a few hours later and the day after she withdrawed the first proceeds.
Now, we're concentrating on reworking our listing rules, adding on top of the existing ones. That's while we work on finding a solution for current SLC shareholders (list which, hyronically, holds some original MDS shaholders too), like we did of AVC, KFM, CGI.
She tells people about our risks fund, which does indeed exist. Too bad that we are a new stock exchange. Most of the funds to be used in situation like this one come from completed IPOs and so far no IPO has been completed.
SLC did not contribute to this fund, nor the original companies did. Well Mystik Boucher, feel free to give us back those 338K L$ that you gamed from our exchange, and we'll be happy to turn them to every SLC shareholder.
Bob Perry can contribute too, of course!
Since we're busy with the new rules and with finding a solution for SLC shareholders we won't say much more about the issue. As soon as possible we'll release to the general public a dossier about this sad incident.
Samantha Goldflake
Vstex Communication and Public Relations Dept.
http://www.vstex.net
(IM me inworld for contacts)
Sigh- Give the facts and stop mumbling.
First of all, I have never denied my joint ownership in this company, end of story. I do NOT deny selling shares- but don't make it seem like I sold them yesterday, ok- this was weeks ago.
I was never in charge of SLC, but retained some ownership. I decided to sell part of my ownership- which is entirely legal anywhere. Keeping in mind, this happened over a PERIOD of time, not ALL at once.
I do NOT enjoy knowing the fact that I did sell shares in a company that later failed, but the simple truth- I have no assets to cover any SLC shares- just assets held PRIOR to being on VStex which were set aside for MDS investors, not included in SLC holdings. In the REAL world if a company bankrupts, you sell assets and pay what you can on debts- this is NO DIFFERENT with the exception- SLC HAD NO ASSETS IN MY POSESSION. Bob Perry has BOASTED his SLC LandBot- Ask him to sell it and pay SLC buyers after merger, then sell his SLZ and BOB assets to cover pre-merger investors.
Another thing you have stupidly twisted- you fail to mention 150,000L was _NOT_ from the sale of SLC stock- but money I had invested in other companies.
The only thing that YOU keep doing is twisting facts and figures- that's what really pisses me off about you.
You run around spouting off but fail to give any valid details, just your wide-eyed assumptions. Do you EVEN have access to any data on VSTEX or are you guessing??
Also- SLC did contribute to that fund- it says on the website that 0.5% of every transaction is set aside for Risk Fund. You don't know shit about the place you work for. You need to find a new job that doesn't involve reading ANYTHING, because you have no concept on how to intelligently interpret a single word.
The Risk Fund
As I noted in my blog post, my initial calculations were that the risk fund should have between L$ 560 at the low end and L$ 6,250 at the high end. Based on further information, I would place the Risk fund at L$ 2,905.66. This is based on information that the total Linden Dollar volume of SLC stock during its 50 days on the VSTEX amounted to L$ 581,131.20 .5% of that works out to be L$ 2,905.66
My discussions with Samantha indicates that she understands very well the real holdings in the risk fund and has limited access to the data at VSTEX. This makes sense. Typically financial institutions limit the amount of data that public relations officers have access to.
As to being in control of the company, my understanding is that at the point of the merger, you had more shares than Bob. Exactly what your responsibilities within the company at the time were is something you should have worked out with Bob
Heh
I was originally supposed to run the company for 30 days, at which time Perry would assume the role. Once Vstex had us trading, I informed Perry and was told to make the change then. I then sent the request to Tobia- Perry was then listed as CEO.
I knew my responsibilities- I was to do development work.
I needed only details from Perry to actually do the work. When he did send details, it was not in a fashion where someone could begin developement, he was more concerned about the location of a login box than telling me what the site was going to do, etc. After time begun to pass, on numerous occassions I would request him to meet me and discuss SLZero and other solutions- he would not even bother sticking around to give any details I could use to begin work.
That was the extent of my role with primary objective to create SLZero- you can't pull rabbits from a hat and develop from concepts that have never left Perry's mouth.
As to more shares than Bob- that is only because after issuing 10% Bonus to MDS shareholders, his numbers dropped.
The problem is that Vstex is trying to 'up-play' my role in SLC. They let Perry walk- they see I've sold shares and was owner in one of the three companys, so naturally they knock on my door- not even grasping any merger details, let alone inquire about them.
VSTEX statement
Well, several things you said, wrote and did prove that at some point you lost every affection for SLC.
I was not part of the VSTEX staff back then, since I joined recently. I do indeed have access to the data.
My comment about the money you made was meant to show that for one who doesn't care about stock exchanges, you did pretty good. I never wrote they were from SLC.
You begun to sell your SLC shares about 4 hours and 20 minutes after we transferred them over to VSTEX. When you joined you was the major shareholder, you even had more shares than Bob Perry.
You had a right to sell? You talk about real world bankruptcy, but where in the real world an owner, a CEO of one of the merged companies, someone listed in the board of directors of the new company as the chairwoman sells off shares like you did?
It's pretty obvious that you've been applying an exit strategy from SLC/VSTEX. You stopped selling your shares once we locked them, since our rules do require the owners to hold at least a 51% of total shares.
The funny thing is that several of the shares you sold were bought by Bob Perry himself.
Samantha Goldflake
Vstex Communication and Public Relations Dept.
http://www.vstex.net
(IM me inworld for contacts)
Sigh
I'm sorry- How can I have 'affection' for a company when the CEO posts announcements about me being 'missing' when I was gone for two days?
Then you should clarify your findings and not post general data in a fashion that would look like I was making heaps of money from SLC shares when infact it's quite the opposite.
Yes, I had every right to sell my ownership of a company. Otherwise, why have the damn shares? Wait in SL for a retirement check from Bob Perry? That's a joke. Fact is, Bob Perry bought MDS and merged the three companies. I was on as developer. All MDS shareholders got a 10% increase in their stake from his personal holdings. I have the spreadsheets ready and available for any drunk monkey to view.
I could apply an exit strategy if I wanted to- fact of the matter, really doesnt apply to me. You're just focusing all your attention on me, not knowing any detail of merger or my actual standing in SLC- thats what it boils down to. If I was to run from anything, it would have to have been MDS, not SLC- I had share ownership in SLC and that's about it, it was a venture between Bob and myself but it was merely a CONCEPT- Bob Perry is your CEO on the run.
Obviously I did stop selling shares once if it was locked- what's your point? You forced me from selling my shares? Major props to you. If your rules do infact require that and you really suspected I was the owner, you would've locked it from the very beginning as Bob and my shares combined were not 51% at the beginning of the merger.
Yes, that is funny. And then he walked away from them, and you gave them back to me! *smiles*
sorry but, who cares?
i think you and bob have made the slc so you two have the responsibility for all what happened.
i dont know anything of mds or slz because i am a slc shareholder and so i dont care whats up with these companies or what ever they should be.
your problems with bob or his problems with you is your private thing.
you 2 have fucked up all slc shareholders now and i dont want to know why.
i only want to get my invested money back.
anyway from who or how...
better you two make new accounts because all slc shareholders will now know your names for ever and it will need a bit time till more people will know what here happened also.
Bob Perry and Mystik Boucher
the next sl scammer like Portocarrero, Tizzy and other...
Heh
I won't be running away from Second Life because a company failed. Sorry, that's life.
The other chicken shit- Anonymous..
ummmmm
b___ shi_