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From LBWR's SEC filings regarding its involvement with "Security Services":
http://snipurl.com/agte3
Security Services. Labwire (dba Labwire Security, Inc.) contracts with American K-9 Bomb Search, Inc., which is one-half owned by Labwire’s Chairman and Chief Executive Officer, to perform security services. Labwire Security, Inc. is fully licensed with the State of Texas. This security model features a web based solution for reporting and record keeping delivered with a traditional hand on type product giving client security managers the ability to manage more locations more securely, effectively, and at lower costs. A typical weekly consolidated, online report to a client would contain the numbers and types of vehicles entering, license plates numbers, rail and marine traffic, incident reports, the times of entering and leaving, observations of persons and contents, etc. These reports now allow for the efficient use of resources by security services and client resources to be managed globally rather than autonomously as now done in most industries. Labwire is paid a 5% commission for the K-9 security services that it refers to Labwire Security, Inc. The commissions received by the Company have been less than 1% of the Company’s gross revenues.
Review and Comments from the_worm06:
1. LBWR says that it contracts with "American K-9 Bomb Search, Inc." for security services, yet a review of the website for the Texas Department of Public Safety shows that "American K-9 Bomb Search, Inc." is not registered to do business in this area.
2. In fact, in addition to "American K-9 Bomb Search, Inc.", the Agreement attached in the same form 10 SEC filing listed above lists two other similar sounding entities as "American K-9 Bomb Search, Inc." These other entities are "American K-9 Services, Inc." and "K-9 Commercial Services, Inc."
3. To add further to the confusion, a fourth similar sounding entity has been found - "American K-9 Interdiction, LLC", which is tied to related parties of the above.
4. Further, the corporate entity, "Labwire Security, Inc." listed above as a "dba" entity for LBWR is not listed as a "dba" or "Assumed Name" in the State of Texas. Nor is it registered as a corporation in the State of Texas. Nor is it registered to do business in the security services area in the State of Texas Department of Public Safety website.
4a. LBWR states that it is paid a 5% commission for the K-9 security services that it refers to Labwire Security, Inc., but this cannot occur, because LBWR cannot pay a commission to itself.
5. Instead, what has been found, is that an entity not mentioned at all in LBWR's SEC filings, "Labwire Security Services, Inc." is registered as an "Assumed Name" for LBWR in the State of Texas.
6. In addition, this same entity, "Labwire Security Services, Inc." is registered with the Texas Department of Public Safety to do business in the security services field.
7. In the same registration document with the Texas Department of Public Safety, LBWR (with the assumed name of "Labwire Security Services, Inc.") states that it has 7 current and former employees that are licensed in the security services area. A review of each of these employees shows that only one of the 7 employees is not currently employed by LBWR.
8. As further verification of the LBWR direct employment and direct payment for employees involved in the security services business, LBWR has issued press releases about their substantial personnel and expense payments in the area of security and surveillance services.
9. Furthering the deceptive ways of LBWR, it issued several press releases discussing the substantial business that LBWR had obtained in the area of security and surveillance without identifying that the business was all going to a private company that is ZERO percent owned by LBWR and that LBWR would only receive 5% of those revenues.
10. As it turned out, LBWR CEO Dexter Morris owns 50% of the private company involved in the security services business that LBWR claims it has contracted.
11. Making matters worse, LBWR funded the initial expenses of more than $250,000 of the private security services company WITHOUT getting an ownership in the equity of the company.
12. A review of LBWR financial statements filed with pinksheets and the SEC results in the conclusion that LBWR wrote off its approximate $250,000 advances to the private security services company, never to receive a payment back of these $250,000.
13. It appears that the $250,000 in funds advanced to the private security services company by LBWR came from cash received from Private Placements in which LBWR's former Securities Attorney, David B. Stocker was involved in. Stocker has been charged with securities and other fraud by the SEC in 3 separate lawsuits.
14. In addition to Stocker, it appears that other investors that have been charged with securities fraud by the SEC were also involved in the private placements that led to the raising of the $250,000 that was advanced to the private company by LBWR.
15. So you have LBWR funding the initial expense amounts of a private security services company without getting an equity ownership in the company - instead the ownership, 50% ownership, goes to LBWR's CEO Dexter Morris. You also have LBWR using its LBWR employees and paying its LBWR employees for security services work that it has contracted a private security services company to do, but the company that was contracted is not registered to do business in the area and LBWR is only receiving 5% of the revenues.
WHAT IS WRONG WITH THIS PICTURE?
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