COMPLIANCE INFO 1986 - 2009 - Laserfiche WebLink

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was deteriorating," he said. CIRCT IT Ca timed uvea a4 to compete." Mooney, who lives in San Mar- tin south of San Jose, said he was brought into the picture at the re- quest of David Baker, a South San Francisco businessman who owns most of the high-tech equipment leased by Circuit Works. Mooney said Hansen agreed to hire him under a five-year, $634.000 con- tract. Mooney said that when he joined Circuit Works. getting addi- tional operating Funds was every- one's top priority. "The cash flow The Hansen -Sebastian suit said Scorpion contacted Circuit Works about a deal. The suit contends that Scorpion "was seeking to pur- chase companies with substantial sales in order to ... reflect in- creased sales volumes and book- ings in Scorpion's financial statements." Under a contract signed July 11, Hansen, Sebastian and Martino were to reecive S332,000 in re- stricted stock shares in Scorpion Technologies, a company traded on the NASDAQ, in return for their shares in Circuit Works and their resignations as company otF- ciais_ They were to be paid as con - SWUM for a limited time. The contract also Sranted Se- bastian and Hansen the tight to buy additional Scorpion stock de- pendent on the future performance of Circuit Works. and committed Scorpion to assume Circuit Works' property leases and pay off or take over personal guairaatees by Hans= and Sabastiaa to com- pany creditors, the suit.sa% Mooney said Circuit Works also was to receive S5 million in operat- ing fiends from another company, Las Vegas -based Affiliated Busi- ness Consolidated Services Inc. Scorpion was to guarantee this money with stock The $S million was never deliv- ered. Mooney said. And according to the suit, neither was the Scot pion stock. Hansen and Sebsstist clams there were extensiv. breaches of contract_ Their sui states: 'Defendants' false represents tions, omissions and active con ceslments ... constitute manipuii- tive and deceptive devices schemes, artifices and contri- vances. and material rnisreptesen tations and omissions in violatior of ... the Securities Exchatigi Act .... The suit charges That Scorpior Technologies never intended it follow through on the contract tin less it secured additional fundin! far itself, which it apparently wa unable to do. ..,, �i��r �ii�ll{?hE ry;�:,:}:: �ir�:...:iii;iji{I;;�,i�i�:��•:r�ij•�•::;it;;i�i�i?ii::E�i�;i`i+�ii}ii'liii;:�„r;i• i I F �: ��..•YCV!F:' -.+nom a.w�•r-:•:`:� i,