Civil Case 11412 has some interesting documents. Check it out on the Idaho Repository. The case is scheduled for a jury trial December 14, 2010 at 9:00 AM in the Ada County Courthouse in Boise, ID. Save the Date!
Today's Streetsweeper article by Melissa Davis has some interesting stuff about a mysterious check. One of Don's deposition statements in the case has his own comments on it and some insight into what he really thinks of shareholders' money:
AEHI's CEO Don Gillispie was attempting to purchase a separate 410 acre parcel with a business partner. That deal later fell apart when financing did not materialize (I know, right?), leaving a substantial deposit in cash and AEHI stock in legal limbo since June 18, 2008.
Among the documents is this check for $50,000 from AEHI to the seller of the land Don and his partner were purchasing:
Above is part of Don's deposition given in the lawsuit. AEHI was not a party to the land transaction. Yet, Jennifer Ransom wrote out this $50,000 check from AEHI on January 25, 2008, to get Don and his partners more time to close the deal.
Don makes a very interesting statement on how he views the shareholders' money when asked why AEHI wrote this check:
Q: Who's asking for it [the check], and why?
A: Oh, oh, oh. It's probably our auditors.
Q: The auditors of AEHI?
A: Yeah, that's what it was.
Q: Now, AEHI was not a party to the real estate purchase and sale agreement?
Q: And you're one of several shareholders in that agreement-
A: You mean-
Q: Or in that company?
A: Yeah, I personally started the company, included the public, and I often get it funds when it needs funds, and in this case, I took some funds out.
Q: Did that cause any problems with the other shareholders or your auditors?
A: No, because I put much more of that in of my own money. So that the ledger sheet is still in the company's favor, so....
Wow. AEHI, Don Gillispie's own piggy bank.
Of course it didn't cause any problems with the shareholders- it couldn't have, because it was never reported to the shareholders.
And that leaves the shareholder with several $50,000 questions- What did Alternate Energy Holdings obtain when it wrote that check for $50,000? How was that transaction booked? What becomes of the $50,000 if the lawsuit ends in Don's favor? Who gets the $50,000 Don personally wrote in addition to AEHI's $50,000, plus the 200,000 shares of AEHI stock all at risk in this lawsuit? And where is any of this reported in the company's SEC filings?
And how many other company checks have been written using Don's glib justification that he can "take some money out" whenever he and Jennie want, because he 'gets the company funds when it needs funds'?
December 14, 2010, 9AM, Ada County Courthouse. Be There!