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White Collar Crime At Arbortext

The Rape of Blueberry (see Table Of Contents to the right) tells the story of Accounting Fraud, software royalty fraud, and Intellectual Property Theft by Arbortext, Incorporated in Ann Arbor, Michigan. It names the company owner (Jim Sterken) and the executives (Ray Schiavone, Dave Peralta, Jim Haggarty, Cherie Van Allen, and Joyce Svechota) who conspired with him to commit these white collar crimes – the CEO, CFO, CIO, Controller, and Director of Product Management. It tells how their crimes were covered up by a Plante Moran auditor (Mark Robinson), which faciliated an Acquisition by Parametric Technology, and eventually led to a highly suspicious decision by an American Arbitration Association arbitrator (Kathryn J. Humphrey).  All of these villains and entities are located in the Ann Arbor/Detroit area of Michigan.

This is a fascinating and highly entertaining story that will take you on a journey through the polluted justice system of America and make you laugh, make you cry, and make you shake your head in bewilderment and disgust.

If you are not interested in the action packed, death defying, throat-clutching, heart-pounding narrative of this amazing story, and are only concerned with examining the evidence, you can read the following seven posts and the Gist of The Case should be clear and convincing. These are not nice people. Their greed, arrogance, and disregard of the law represent a microcosm of the corporate attitudes and policies that have currently brought such economic disaster to this country.

Chapter Eight: First Evidentiary Exhibits of Fraud
Chapter Ten: The Disappearance of $4,000,000
Chapter Thirty-One: The Extraordinary Fear of Audits
Chapter Thirty-Six: The Plante Moran Cover Up
Chapter Thirty-Eight: The Demand Letter To Arbortext
Chapter Forty-Five: The Smoking Gun
Arbortext Royalty Fraud: The Piracy List
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September 30, 2008 Posted by | Business, Law, News, Software, Stories, Writing | , , , , , , , , , | Leave a comment

Arbortext Royalty Fraud: The Piracy List

The companies listed in the table below have licenses to use Blueberry Software’s technology via the Arbortext product Interchange. Their licenses are recorded in Arbortext’s License Key Database. See Exhibit AB if you wish to verify any of these listed companies.

Arbortext, however, did not report these sales to Blueberry nor pay Blueberry any royalties on these sales, as specified in the Blueberry/Arbortext Royalty Contract. This makes these licenses a form of pirated software.

Blueberry makes no complaints or accusations against these companies or entities, some of whom are State and Federal agencies, and is quite certain these companies paid Arbortext for their software in good faith.

It is Arbortext that is the guilty party. Although they have a contractual right to distribute Blueberry’s technology, they may only do so if Blueberry is paid royalties on the sale. Regarding the list below, this did not happen. Blueberry was given away entirely or in part without remuneration and the sales were hidden from Blueberry in the Arbortext Royalty Reports.

Bear in mind, the following list is only a partial list of Arbortext piracy. Due to an audit cover up by Mark Robinson of Plante Moran and a highly suspicious ruling by American Arbitration Association arbitrator Kathryn J. Humphrey of the Michigan law firm of Dykema Gossett, Blueberry was prevented from a full investigation of Arbortext’s fraudulent accounting system. Blueberry obtained this partial list from the working papers of Mark Robinson’s Plante Moran audit report, which were uncovered during Arbitration Discovery proceedings two years after his report was issued. He did not mention this piracy at all in his official audit report. Quite the opposite. He said everything was hunky-dory. See Chapter 36 and Chapter 45.

The licenses herein were extracted from the License Key Database – after Robinson allowed Arbortext to destroy and/or edit the original database, which he described on the phone to us as having “significant discrepancies,” and then allowed Arbortext to submit this altered database version to Robinson for his report.

Blueberry is convinced that there are many more licenses issued by Arbortext that were not reported. If this list is not considered by Robinson to contain “significant discrepancies,” what oh what did the original database contain! Only a full and complete investigation of Arbortext’s records will suffice to determine the extent of criminal behavior by this company.

Software Piracy and Accounting Fraud are crimes, and these crimes are delineated in great detail in the Rape of Blueberry on this site. It’s time for an official investigation of this company and the individuals who commit these crimes with impunity. Stockholders deserve to know what kind of company they are investing in and what kind of people are running that company.

The Piracy List 

AAI Set Corporation
AIIRegs (Formerly Mortgage Resource Center, Inc.)
Akzo Nobel N.V. Organon
Alitalia S.p.a
American Bible Society
Ameritech Networks
Amgen Corporation (formerly Immunex)
ARSOA Publications
AstraZeneca (Pharma)
Autodesk Canada Inc.(Discreet Logic)
Avantis Corporation
Aventis Pharmaceuticals, Inc.
BAE Controls/Lockheed Martin
BAE Systems
Beljan Ltd.
Bertelsmann Media Systems
Blue Cross Blue Shield of Michigan
Boeing – C-17
Boeing Commercial Airplane Group
Boeing Company
Boeing Company – EMOD
CACI Federal INC
Campbell Ewald
Canadian Pharmacists Association
CCH Australia
Daidalos By.
Department of Justice Canada
EDF Pole Industries
Editions WEKA
Eli Lilly – Regulatory Group
EMC Software Group /Documentum, Inc.
empolis UK Ltd.
Enmed, Inc.
Eslovs Kommun
Eurofly S.p.A.
FADS Deutschland GmbH
Federal Aviation Administration (FAA)
Florida Legislature
GE Transportation Systems
General Atomics Aeronautical Systems, Inc.
General Dynamics Creative Concepts, Inc.
General Dynamics Land Systems – Canada
GlaxoSmithKline/ GSK (Pharma)
Glen Pingston
GSI Lun,
Guidant CPI (Cardiac Pacemakers)-SAM
Guidant/Pacemaker Tec Com
Heidelberger Druckmaschinen AG
Hewlett Packard Company
Honeywell, Inc. (Avionics Divison)
Hospira Inc.(Abbott Labs)
IBM (Rational Software Corporation)
IBM Corporation Entwicklung GmbH Boblingen
IDX Systems Corporation
Inovant LLC
Inovant LLC Business Release
Intel Corporation
International Translation & Services, Co., Ltd.
Jouve Aviation Solutions
L3 Communications/Aviation Recorders
LexisNexis SA
Lloyds Register
LMS International
Lockheed Martin, KAPL (Knolls Atomic Power Lab)
Lumonics Corporation
Maine State Legislature
Mans MultiMedia LTD.
MBDAM (FADS Bourges)
McDougal Littell
Merck Sharp & Dohme, Inc.
Missile & Space Intelligence Center (DIA/MSIC)
Mitsui Mutual Life Insurance Co Sys. Planning Gr.
Montgomery KONE Inc
MTR Corporation Limited
NATIP (Air Worthiness/Flight Clearance Support)
New Zealand Parliamentary Counsels Office
NNC Limited
Nokia Networks Oy
Northrup Grumman
Northrup Grumman (Defense Logistic Agency)
Northrup Grumman Avondale Operation
Northrup Grumman Mission Systems
Paul Flynn
Pfizer (Pharma)
Pfizer, Inc.
Philips Lighting B.V
Practitioners Publishing Company
Province of BC Ministry of Management Services
Retail Wisdom (formerly Raymark Integrated Retail)
Reward Health Sciences
Roche Diagnostics (Pharma)
Saab Aerospace AB
Saab Aircraft A.B.
Services Techniques Schlumberger
Singapore Airlines
Solar Turbines
Star Mountain Inc.
State of Alabama (Secretary of State)
State of Idaho
State of Oklahoma (Secretary of State)
Sun Microsystems
Taisho Pharmaceutical Co. Ltd.
Teradyne Inc. MTD
Thales Communications
The Rockley Group
Thomson Learning
Toyota Motor Sales USA Inc.
University of New England
US Airforce – CITS Program Office
US Airways Inc
U.S. Coast Guard (USCG)
Vanguard Group Inc
Veritas Software Global LLC
Wolters Kluwer
Wright Patterson AFB (AFIT)(RJO)

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October 15, 2008 Posted by | Business, News | , , , , , , , | Leave a comment