Dead Solid Pluperfect

A Hot Buttered Guff™ Production

Arbortext Royalty Fraud: Chapter Eight

First Evidentiary Exhibits of Fraud

Some of the following PDF exhibits will need to be rotated in Adobe Reader for proper viewing. Unless, of course, you are capable of levitating yourself horizontally to the floor and can read the web browser sideways. I apologize for the poor quality of some of these exhibits. They have been previously submitted in depositions, court, and arbitration along the way.

See Exhibit B for the original Royalty Reports covering the first year of the Blueberry/Arbortext contract. These were the first ones sent to my ex-partner Kevin Dwan. They were sent by the company Controller, Cherie Van Allen.

I’m no expert in accounting, but have had success using Peachtree to keep Blueberry’s books and make reports to the IRS and the State of California and the Employment Development Department and generate financial statements. So, I can only assume that Cherie, as Company Controller, was far more capable than I when it came to accounting know how. Arbortext used the Flexx accounting software, which I know nothing about, but again assume it must be more intricate and powerful than a small business Peachtree system.

I say these things to preface pointing out that it is extremely hard for me to believe Cherie could produce, or be responsible for, such an amateurish and entirely bogus set of reports (the first two reports of the exhibit).

My how these initial two reports then evolved after Mary came on the scene, as can be seen by the Royalty Report that came out of Joyce Svechota’s laboratory in March of 2002, after our “preposterous” complaints.

Note especially the following customers reported on the first page of Joyce’s first royalty report for December, 2000 (page 8 of 19), which Cherie Van Allen had initially reported as nothing but zeros.

Knowledge Impact       1 for 10,000
Bankers Systems         1 for 0
ProsoftTraining           0 for 0
AT&T                           0 for 0
TDS International        0 for 0
Total for Month     29,823.26

Now check this same month as reported on Joyce’s second royalty report dated March 19, 2002 after my email to Sterken (page 16 of 19), which according to Sterken only contained additional royalties previously unreported from “early customers who converted from a version of Interchange that did not include Blueberry to one that did.” His statement is blatantly false. It only addresses the royalties reported up until the July 12, 2000 contract signing. It does not explain the royalties reported from July to December, which had never been reported before. It also doesn’t explain the customers listed below who were reported from December of 2000 (see above list) – just not truthfully.

Knowledge Impact       2 for 20,000
Bankers Systems         1 for 2,264.88
ProsoftTraining           1 for 10,000
AT&T                           1 for 10,000
TDS International        not here anymore
Total for Month      62,088.14

It seems that the four largest customers for the month had their amounts either deleted entirely from the original report or cut in half in the case of Knowledge Impact. Thus reducing the qualifying sales by over $30,000 and Blueberry’s royalties for this one month by nearly $5,000, or roughly in half. Five measly thousand dollars which would have been useful to Blueberry but that Arbortext/Sterken/Van Allen/Svechota felt compelled to cheat us out of. From the beginning of the contract. As a company PLAN. A Strategic STRATEGY. To “limit” Blueberry’s royalties.

This is cheating, sure. But it’s more than that. It’s a sign of a compulsive and invincible arrogance of power. And also a way to inflate the company’s net revenue picture by under reporting expenses.

See Exhibit C for an amalgamated Royalty Report of Joyce Svechota’s eight different fraudulent bookkeeping concoctions in a seven month period. Watch those numbers, customers, and products jump through hoops, appear and disappear, and finally settle on “Eff You Blueberry” computations. Computations not contained in the original contract, not discussed with Blueberry, and not agreed to either verbally or in writing by Blueberry. Contract du jour. Bear in mind that for every customer listed that begins with a “Not on Rpt” there were five previous royalty reports that went to my ex-partner Dwan on which they were not reported either. For some real head scratchers check out the following pages:

2 – Lockheed
15 – LGS (twice) (notice invoice #17838 get deleted and appear on the next page for Compaq Computer)
16 – Compaq
18 – Cisco
21 – L & C Publishing (Whooeee!)
24 – Knowledge Impact ($10,000 for a $1,200 Interchange Fixed License!?!?! Uh, I think somebody made a typo here in an Invoice line item. Otherwise, expect a rather indignant phone call from Knowledge Impact.)
27 – AT&T (altered yet again (4th time) from the Exhibit B reports)
27 – Prosoft (altered yet again (4th time) from the Exhibit B reports)
29 – Wind River
40 – Page Wing
41 – Schlumberger

See Exhibit D for Jim Sterken’s response to the author’s infamous brain-dead idiot email and the “discovery” of additional royalties.

To be continued . . . Free Hit Counter website statistics


June 19, 2008 - Posted by | Business, Law, Life, News, Software, Technology, Writing | , , , ,

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