[SLJB]: Sulja Bros. CEO says he was duped
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Excellent article from Gary Rennie, the journalist of The Windsor Star newspaper in Canada.
It now appears that the publicly traded company, Sulja Bros. Building Supplies, Ltd. (Nevada), the one that trades under the symbol "SLJB", never really owned the Ontario lumberyard business since at least August 1, 2006, and probably never.
http://www.canada.com/windsorstar/story.html?id=20e020e3-1ee0-4272-a006-522cbc1f5d4c&k=18469
Sulja Bros. CEO says he was duped
Gary Rennie
The Windsor Star
Monday, September 17, 2007
HARROW -- Steve Sulja, the embattled CEO of Nevada-based Sulja Bros. Building Supplies Ltd., said Monday he was duped into believing the company had finalized fabulous deals in the Middle East to sell cement or build a hotel that were going to bring in hundreds of millions of dollars in revenue. Sulja said he's told an Ontario Securities Commission (OSC) investigator everything he knows in an eight-hour interview and is prepared to face the consequences.
Sulja said he's upset that the family's name has been blackened, creditors aren't being paid and shareholders have been misled about the company's prospects.
"I want to get my life back to normal," Sulja said in an interview at the Harrow lumberyard that closed two months ago.
Sulja said the family's 20-year-old business -- excluding the land and buildings -- were sold last year in a "handshake deal" with Petar Vucicevich for $4.8 million, but only a partial payment was received. He said he and four other family members received $150,000 each, but nothing since.
The plan was for Vucicevich to hire the existing staff, take over the accounts receivable and payable, and run the business using another Ontario corporation -- called Sulja Building Supplies -- from the Harrow warehouses and office, Sulja said.
"Petar orchestrated everything," Sulja said.
Sulja said his family's Ontario incorporated business -- Sulja Brothers Building Supplies Ltd. -- essentially stopped operating as of Aug. 1 last year. Sulja said his father John still owns all the lumberyard property on Erie Street just outside Harrow.
After the handshake deal, Sulja said he wasn't involved in the Sulja Building Supplies operation until last November, when Vucicevich asked him to come back and become CEO. He said he was "a dumb ass" to agree.
Sulja said he was shocked the OSC laid charges a month later alleging the Nevada-incorporated Sulja company's stock prices were manipulated, that false and misleading press releases were issued, and that stocks were sold without issuing a prospectus as required in Ontario.
Last month, the Alberta Securities Commission made similar allegations after the company attempted to launch an operation in Calgary.
Dan Scott, lawyer for Vucicevich on the ASC allegations, said his client bailed out the Sulja family when their business was approaching bankruptcy.
"They don't know now to run a business," Scott said. "Steve is very bitter over the fact that his company has been taken over."
Scott agreed Vucicevich had a deal to buy the family business, but disputed Sulja's contention that full payment wasn't made. The lawyer said he didn't know the exact amounts involved.
Scott said Kore International company is in the process of taking over Sulja Building Supplies* because of debts owed. A receiver hasn't been put in place yet, he said.
Scott said he's seen correspondence from overseas lawyers indicating that deals were in progress. The lawyer said he didn't know if any were finalized.
Scott also didn't know when an audited financial statement would be available. "Not a clue," he said.
Sulja said Vucicevich has always assured him that he will provide records to prove the dozens of deals touted in press releases for more than a year were actually completed. In the last few weeks, Sulja said he's given up hope of seeing any proof of those deals.
Even though he's the CEO, Sulja said he has no idea what the Nevada-incorporated company actually owns because he can't get access to current financial records.
Scott said he knew little about the Nevada Sulja company and thought it was essentially dormant while the OSC charges were pending.
Sulja said last Friday he was ordered off the property of the company's County Road 17 location and the locks on his office were changed because of a claim of unpaid rent.
In Calgary, where Sulja Building Supplies had leased an office and warehouse May 20, a bailiff's notice was taped on the door claiming $52,077 in unpaid rent.
In Windsor, Tecumseh Truss Systems Inc. has filed lawsuits seeking to put construction liens on two homes, including Vucicevich's at 286 County Road 50 in Colchester.
Trusses were supplied to Sulja Building Supplies for installation on both homes earlier this year, but payment of about $10,000 wasn't received, said Tecumseh Truss lawyer Grant English.
About $7.8 million was made from the sale of Sulja stock through trading accounts controlled by Vucicevich and a Texas associate Andrew DeVries, according to the OSC allegations. Next hearing is Oct. 31.
While hearings continue, the stock is halted from trading in both provinces, although it continues to sell on an over-the-counter electronic market in the U.S.
© The Windsor Star 2007
*note: amended to reflect correction by The Windsor Star, Initial version was "Scott said Vucicevich's Kore International company is in the process of taking over Sulja Business Supplies"
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.
Excellent article from Gary Rennie, the journalist of The Windsor Star newspaper in Canada.
It now appears that the publicly traded company, Sulja Bros. Building Supplies, Ltd. (Nevada), the one that trades under the symbol "SLJB", never really owned the Ontario lumberyard business since at least August 1, 2006, and probably never.
http://www.canada.com/windsorstar/story.html?id=20e020e3-1ee0-4272-a006-522cbc1f5d4c&k=18469
Sulja Bros. CEO says he was duped
Gary Rennie
The Windsor Star
Monday, September 17, 2007
HARROW -- Steve Sulja, the embattled CEO of Nevada-based Sulja Bros. Building Supplies Ltd., said Monday he was duped into believing the company had finalized fabulous deals in the Middle East to sell cement or build a hotel that were going to bring in hundreds of millions of dollars in revenue. Sulja said he's told an Ontario Securities Commission (OSC) investigator everything he knows in an eight-hour interview and is prepared to face the consequences.
Sulja said he's upset that the family's name has been blackened, creditors aren't being paid and shareholders have been misled about the company's prospects.
"I want to get my life back to normal," Sulja said in an interview at the Harrow lumberyard that closed two months ago.
Sulja said the family's 20-year-old business -- excluding the land and buildings -- were sold last year in a "handshake deal" with Petar Vucicevich for $4.8 million, but only a partial payment was received. He said he and four other family members received $150,000 each, but nothing since.
The plan was for Vucicevich to hire the existing staff, take over the accounts receivable and payable, and run the business using another Ontario corporation -- called Sulja Building Supplies -- from the Harrow warehouses and office, Sulja said.
"Petar orchestrated everything," Sulja said.
Sulja said his family's Ontario incorporated business -- Sulja Brothers Building Supplies Ltd. -- essentially stopped operating as of Aug. 1 last year. Sulja said his father John still owns all the lumberyard property on Erie Street just outside Harrow.
After the handshake deal, Sulja said he wasn't involved in the Sulja Building Supplies operation until last November, when Vucicevich asked him to come back and become CEO. He said he was "a dumb ass" to agree.
Sulja said he was shocked the OSC laid charges a month later alleging the Nevada-incorporated Sulja company's stock prices were manipulated, that false and misleading press releases were issued, and that stocks were sold without issuing a prospectus as required in Ontario.
Last month, the Alberta Securities Commission made similar allegations after the company attempted to launch an operation in Calgary.
Dan Scott, lawyer for Vucicevich on the ASC allegations, said his client bailed out the Sulja family when their business was approaching bankruptcy.
"They don't know now to run a business," Scott said. "Steve is very bitter over the fact that his company has been taken over."
Scott agreed Vucicevich had a deal to buy the family business, but disputed Sulja's contention that full payment wasn't made. The lawyer said he didn't know the exact amounts involved.
Scott said Kore International company is in the process of taking over Sulja Building Supplies* because of debts owed. A receiver hasn't been put in place yet, he said.
Scott said he's seen correspondence from overseas lawyers indicating that deals were in progress. The lawyer said he didn't know if any were finalized.
Scott also didn't know when an audited financial statement would be available. "Not a clue," he said.
Sulja said Vucicevich has always assured him that he will provide records to prove the dozens of deals touted in press releases for more than a year were actually completed. In the last few weeks, Sulja said he's given up hope of seeing any proof of those deals.
Even though he's the CEO, Sulja said he has no idea what the Nevada-incorporated company actually owns because he can't get access to current financial records.
Scott said he knew little about the Nevada Sulja company and thought it was essentially dormant while the OSC charges were pending.
Sulja said last Friday he was ordered off the property of the company's County Road 17 location and the locks on his office were changed because of a claim of unpaid rent.
In Calgary, where Sulja Building Supplies had leased an office and warehouse May 20, a bailiff's notice was taped on the door claiming $52,077 in unpaid rent.
In Windsor, Tecumseh Truss Systems Inc. has filed lawsuits seeking to put construction liens on two homes, including Vucicevich's at 286 County Road 50 in Colchester.
Trusses were supplied to Sulja Building Supplies for installation on both homes earlier this year, but payment of about $10,000 wasn't received, said Tecumseh Truss lawyer Grant English.
About $7.8 million was made from the sale of Sulja stock through trading accounts controlled by Vucicevich and a Texas associate Andrew DeVries, according to the OSC allegations. Next hearing is Oct. 31.
While hearings continue, the stock is halted from trading in both provinces, although it continues to sell on an over-the-counter electronic market in the U.S.
© The Windsor Star 2007
*note: amended to reflect correction by The Windsor Star, Initial version was "Scott said Vucicevich's Kore International company is in the process of taking over Sulja Business Supplies"
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posted by the_worm06 | 9/18/2007 01:46:00 AM
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