Pure Fiction !

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1st. quarter 2014 10-Q, Drivein Television, IC Places, ImagineTV, PNCH, Steven Samblis

Yes folks… the latest 10-Q is out, and what a great exercise in fiction writing it is.  Pure smoke and mirrors.

Let’s set the stage here.  This latest 10-Q (as all SEC filings are) is a legal document.  To misrepresent the information provided in the legal section (see below graphic-click to enlarge) in our opinion sets the stage for the rest of the document.  Doing so also calls into question any other information provided on the form.  For if you misrepresent the legal information in the “legal” section… how is the rest of the document any more accurate ?  Also think of filing this document as you would your IRS tax return you file.  What happens if you misrepresent and/or omit information on that form?  There is really no difference between the two, as they are both legal documents submitted to a federal entity.

Of course we are talking about the situation in which Mr. Samblis was sued (for $75,000.) for breach of contract over one of his proposed shows, for his proposed TV broadcast company (see the actual court documents here).   There is no question there was legal action against both Mr. Samblis and IC Places,  the documents prove it, and, Mr. Samblis agreed to a settlement of the case, in which he later defaulted on (all documentation available here).

We also know that there were at least 2 other previous incidents where information was misrepresented on the SEC document filings, (President resignation here), and CEO Employment contract here).  Of course this document is largely a financial document, and given the above, and having no access to the company checkbook… how can anyone believe the financial information is correct also?

As an example, look at the graphic below… it lists NO advertising revenue !  NO revenue in ALL of 2013, and NO revenue for the first 3-months of 2014.  HOW IS THAT POSSIBLE ?  How is it possible for an operating company, displaying obvious advertising on their websites, not to have any revenue in over 15 months.  Is that believable ?

Notice the clarifying statement contained within the 10-Q where it states: “Advertising revenue is recognized when businesses place advertisements on the IC Places website or through banner ads or upon a customer’s purchase of partner offerings originated from links through the company website. Punch Television records and recognizes revenue when advertisements are aired through their websites.”  There is certainly advertising being displayed on the websites, and there are certainly links being offered on the websites, so… which statement is correct?  Both cannot be correct given the evidence.  Notice the “Punch Television” designation within the statement… apparently Mr. Samblis doesn’t proofread his filing documents prior to hitting the send button.  Perhaps Mr. Collins should be alerted to the fact that Mr. Samblis is still referring to his company as “Punch Television”… wasn’t Mr. Samblis prohibited from doing that?

So folks… how believable is ANY of the information contained within this (or any) SEC document filed by Mr. Samblis?  Many investors wait in anticipation of these filings, as the concept is for the document to give investors a clear and accurate picture of the company.  How clear and accurate of a picture of IC Places, Inc. is this document?  We suspect Mr. Samblis laughs so hard when drafting and filing these documents, that he looks forward to the time when he can do it again. Who wouldn’t want to take a trip to fantasyland every 3 months?    If Mr. Samblis wants to generate some real revenue from his efforts, perhaps he should take up fiction writing in the form of a book describing his tried and proven ways to run a successful cash-cow of a company.

And just as an aside… what kind of CEO overdraws the company checking account to the tune of generating $697.00 in overdraft fees in 3-months?  (see below graphic excerpted from the referenced 10-Q filing).  Banks customarily charge $30.00 for an overdraft situation.   $697. represents about 23 overdrafts within 3-months time.  That’s about 1 overdraft every 4 days.  There’s some top-notch fiscal management for you !

WHY would anyone trust Mr. Samblis with 1-penny (would buy 5-shares at current PPS) with their investment money given the above ???

Rate the CEO’s performance !

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CEO Performance, Drivein Television, IC Places, ImagineTV, Steven Samblis

Is the CEO’s performance, as represented in the below graphic (click to enlarge), (excerpted from the most recent 10-K report here) worthy of the title of The Worst CEO Ever ???  They say, even a blind squirrel finds a nut once in a while, but apparently this CEO, after having spent millions and millions of dollars of investor funds (3.25 million this year alone), doesn’t seem capable of making decisions that result in even $1.00 of revenue.  HOW is that possible ? Could such even be duplicated in some sort of business simulator by a professional ?

We are not talking about “profit” here… we’re talking “revenue” !  Even if you buy a widget for $10.00, and sell it for $5.00, aside from not being to smart to sell it for $5.00… you still have “revenue” of $5.00.  Again… how is it possible that there is NO revenue… not even a dollar !   Is Mr. Steven Samblis, CEO of IC Places, Inc. running the advertising that can be seen on the IC Places website for FREE ???   Is he not making a dime from the Prescription Discount Card program, or not generating ANY revenue from the VU Television (now DriveIn Television) effort ???   Really… HOW is that possible ?   Can anyone put forth a scenario in which this could be possible ?

OR… is it possible revenue IS being generated, but its being recorded outside of the public company?  Is there more to the “Strategic Partnership” than investors are being told ?  Mr. Samblis has said that the public company “manages” the other business divisions, but it doesn’t appear that this “management” contract and/or details have even been publicized.  Could it be that NO management fee is being paid (or perhaps charged), yet these divisions are generating revenue ?

In the entertainment business Agents manage entertainers, and those entertainers make money (generate revenue).  It would be possible, (unlikely, but possible) that although an agent “manages” the entertainer… he/she takes or accepts no management free for their efforts.  An example may be, a parent manages his/her child, and although they would perhaps be entitled to charge/accept a fee for such, they chose not to.  Nothing illegal about not accepting a fee for your efforts… in the right circumstances.

What are YOUR thoughts?  Perhaps you have an explanation of how its possible for the public company to record NO revenue for a full years efforts, while its plain to see advertising being displayed and business appears to be being conducted.  As many say… this just doesn’t pass the smell test !

 

Is the CEO a liar ???

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DriveinTelevision, IC Places, IC Punch Media, ImagineTV, Lying, Steven Samblis

Is the CEO of IC Places, Inc. (formally IC Punch Media, Inc.) Mr. Steven Samblis a liar.  Well… many say yes.  Many point to his previous press releases where he promotes new relationships, affiliations, or initiatives that the company is involved with, and say because many, (and some say ALL), of these initiatives have not come to fruition (“true” as they say), that this is evidence of his lying.

Well, we disagree.  Many businesses initiate new ideas, try new things, enter into new relationships and affiliations.  Many times these new initiatives turn out to be not what they initially thought they would be, and in some cases outright fail.  That’s just business.  Some things work… others don’t.  So… simply because Mr. Samblis has tried new things to improve the company, and most if not all have not proved successful, and many have outright failed… does not mean he lied about them, or is a liar.

However… what these poor and failed initiatives make him is… probably the worst businessman (and/or CEO) of all time.  The club of businessmen and/or CEO’s that have spent tens of millions of dollars on trying new things, only to have their stock currently trade at extremely sub-penny status – AFTER 3 REVERSE SPLITS… is an extremely small club.  A club some say Mr. Steven Samblis should not only be a member of, but be the leader of.

What folks should be looking at to draw a conclusion that Mr. Samblis is likely a liar is hard evidence.  Evidence that can be documented and indisputable against the common standard of proof.  Lets look at some one at a time.

SEC filings:

1) CEO Employment contract:  Mr. Samblis files multiple 10-Q/K reports that state… “The company does not have employment contracts with its majority shareholder, who is the executive officer.“.  This is a quote from the August 12, 2011 Quarterly report filing here.

Then…the public filing dated 11/14/2012 states the following: “On November 18, 2005 the Company entered into an employment agreement with Steven Samblis to be our Chief Executive Officer.”. The passage goes on to list the compensation which includes the provision of majority control being maintained.

2) Lawsuits against the company:  The most recent filing, the 10K (see here), as well as the previous filing, the 10Q (seen here) there is NO mention (or can be said, “disclosure”) that there is in fact a legal proceeding against the company.  See it here.  In fact, the filings state..  “We are not engaged in any litigation, and we are unaware of any claims or complaints that could result in future litigation.” (emphasis added)

Then… it becomes known that there was in fact litigation that had occurred during these 2 filing periods.  See details here.

3) President of company being asked to resign:    In the 10-Q report (here), it is clearly stated that the president’s resignation was “requested“.  (see details here)

Then… just recently the resignation letter of the president became available.  See it here.  Clearly, this was a voluntary resignation on the part of the president, which is, in direct opposition to Mr. Samblis’s SEC filing statements, as well as multiple message board posts.  In fact, of late, Mr. Samblis is still maintaining that he requested the resignation.  Additionally, notice the date of resignation discrepancy between Mr. Samblis’s statements and filings, and the actual resignation letter.

Keep in mind that the above statements/declarations are from the formal SEC 10-Q reports, filed, signed, and attested to by the CEO of the company, Mr. Steven Samblis.

Other incidents:

1) Reverse split:  This one doesn’t even need any document references here.  As everyone knows, there were a vast number of posts over multiple message boards where Mr. Samblis stated he would not do a reverse split of the stock.  In several instances he used the word “never” in reference to the possibility of a reverse split.  This was likely the topic that Mr. Samblis most addressed in his message board posts, and steadfastly disputed anyone that would even hint at him doing another reverse split.

Then… as everyone knows, on March 27, 2013 he does a reverse split.

2) Statements regarding our websites:  In a message board post dated 4/28/2014 on Investors Hub, (see it here) Mr. Samblis states (see below premise), via his HollywoodFastLane alias, that “Issacs attempted to sell the sites (right after registering them) to IC Places for a hugely inflated price.”

Then… Friends posted the actual email exchanges between Mr. Samblis and Larry, which clearly demonstrate Mr. Samblis was not being truthful.  (See them here.)  As can be clearly seen, a) Larry did not contact Samblis to sell the sites… Mr. Samblis made the initial contact and requested a purchase… several times, before Larry agreed.  And b) referring to the “hugely inflated price” as Mr. Samblis states… an agreed upon price of $1500.00 was struck.  However, due to Mr. Samblis’s message board posting where he blatantly disrespected Larry… Larry cancelled the deal.  Then Mr. Samblis later (October 27, 2013 email) offers over three times that amount, voluntarily, to purchase the sites, but that offer was refused (see the next email).  Clearly Mr. Samblis has misrepresented the actual events surrounding the purchase of our sites.

Now, as most of you know, we could go on and on giving example after example of instances of where Mr. Samblis was, shall we say, reckless with the truth.  Although some instances would be open for dispute, we think there are no better examples of questionable actions, that many would call lying, then the instances involving the SEC reporting.  These SEC reporting discrepancies are clear, documented, and clearly a misrepresentation of the facts.  Many would say a blatant disregard and disrespect for the authority of the SEC.

Well folks… you have the facts, you are free to decide for yourself if Mr. Samblis is a liar.  It seems obvious Mr. Samblis has recently taken to the message boards, using what many believe to be multiple aliases to promote the company, and therein a presumed purchase of the company stock shares (some call this stock manipulation).  Many believe it is Mr. Samblis, stating through multiple aliases, that it is not him really posting using these multiple aliases.    One such account, HollywoodFastLane, was apparently shut down recently by Investors Hub as being in violation of their Terms of Service, and many believe a fraudulent use of such account.  Many say this is Mr. Samblis’s attempt at circumventing being held accountable for his statements and actions by claiming he was not actually the poster.  The poster made multiple statements using the HollywoodFastLane account stating that he was “hired” by the company to maintain social media content.  If this is actually Mr. Samblis making these posts, it is but another example of what many call lying.  Maybe some day his use of such tactics may be able to be discovered and documented also.

 

 

Fraud… or honest mistake – #3 ???

Tags

Drivein Television, IC Places, IC Punch Media, ImagineTV, Inc, Steven Samblis

Well… here we go again folks.  Friends has documented on 2 previous occasions, here and here, that there appeared to be significant discrepancies in what was reported on the IC Places, Inc. (formally IC Punch Media, Inc.) SEC quarterly and yearly company filings.  Mr. Steven Samblis has yet to comment on these discrepancies.  Well… here is a 3rd. such instance.

As seen in the below graphic (click to enlarge), which is excerpted from the 10-Q report (here), it is clearly stated that Gayle Dickie’s resignation was “requested“.  Keep in mind that this statement/declaration is from the formal SEC 10-Q report, filed, signed, and attested to by the CEO of the company, Mr. Steven Samblis.

 

Also, in the below graphic, Mr. Samblis addresses the issue on his Facebook Page.  This explanation has been since proven inaccurate, as Mr. Samblis was WELL aware of this legal issue prior to bringing her aboard.  In other public posts Mr. Samblis considered the issue a non-issue, yet now he uses it as a convenient excuse when he thinks it serves his interest.

x

Now, take a look at the actual resignation letter from Ms. Dickie (click to enlarge).

Does this look like a letter from someone who was asked for their resignation?    Also notice the date of the resignation letter, and then look at the date given in the 10-Q filing.  See any descrepency?

Ms. Dickie contacted Friends in order to set the record straight.  In a lengthy conversation she indicated how frustrated she was with the misinformation and innuendos that were being published, such as on Investors Hub (see below graphic) regarding, and apparently insinuating, that upon her departure she “took several deals with her that she signed to the company“.   As if to say, she took them illegally.   As we understand the situation regarding “deals”, these shows were “Optioned” in order to allow time for funding of the production.  These shows were optioned to Ms. Dickie and Mr. Bradley, not IC Places, Inc. or Mr. Samblis, therefore they were free to take them when they left the company.

Now… this is prime example of WHY there should not be multiple posters using the same alias.  Although the vast majority of reader’s are positive this is Mr. Samblis making these posts… he now has deniability for content such as is illustrated below because someone else has stated they were not Mr. Samblis making these posts under the HollywoodFastLane alias.

Folks… as stated above, this makes 3 verifiable and indisputable instances of very troublesome discrepancies regarding statements and disclosures in IC Places, Inc. SEC filings.  Many would say this is no coincidence, and appears to be a pattern.   I think many would agree, these instances call into question ALL other statements, disclosures, and possible omissions within the SEC filings of this company, not to mention postings on message boards, be it using his own alias, or disguising himself as someone else to avoid accountability for his statements.

Many investors ask about why there is seldom an SEC 8-K filing on new initiatives and company actions.  With the trustworthiness of several of the past SEC filings as outlined in the posts referenced above… what difference would it make.  Can investors really rely on what is stated in the IC Places, Inc. SEC filings?  And of course we are not talking about discrepancies over minor items like perhaps misspellings, minor math errors, etc., no, we are talking about MAJOR issues like disclosures regarding the President of the company, lawsuits and judgements against the company, and CEO Employment contracts calling for large sums of company money and stock.   Some would say Mr. Samblis is thumbing his nose at the SEC by apparently proactively manipulating material events to mislead, or flat out deceive the investing public, as well as the SEC, with the discrepancies contained in his company filings.

If these reporting incidents concern you also, perhaps you should contact the SEC and file a complaint.  The answers page about such is here, and the actual form to file an online complaint is here.  As the below graphic indicates, the SEC is concerned about “False or misleading statements about a company (including false or misleading SEC reports or financial statements)“.

Folks… as we indicated above, this was a lengthy conversation with both Ms. Dickie and Mr. Bradley, covering a multitude of topics.  They are good people, true professionals in their field, with pristine reputations, and who were totally believable in their statements and comments.  Can you blame anyone for resigning under the circumstances outlined in the resignation letter?  Then, to add insult to injury, only to be told “I don’t owe you guys anything“… is just shameful and ungrateful.  Most would agree, the resignation letter demonstrated true professionalism in light of the “I don’t owe you guys anything” statement Mr. Samblis made to them.

Again, you have the facts, you can draw your own conclusion and opinion as to any wrongdoing here with regard to misrepresentations in the SEC filings, and then proceed accordingly.

Fraud… or honest mistake ???

Tags

IC Places, IC Punch Media, ImagineTV, SEC 10K, Steve Samblis

If you have seen the most recent SEC filing by the CEO of IC Places, Inc. Mr. Steven Samblis (formally IC Punch Media, Inc), you might have noticed a section making a statement about, have there been any legal proceedings.  See graphic below (click to enlarge).  As one could imagine, any legal proceedings the company is involve with are an important piece of information that should be included in the filings, so investors can be aware of any real or perceived risk the company may have as a result.

Well… this most recent filing, the 10K (see here), as well as the previous filing, the 10Q (seen here) there is NO mention (or can be said, “disclosure”) that there is in fact a legal proceeding that, by all appearances should have been disclosed.  Please refer to the graphic below (again, click to enlarge).  Notice the dates of both the commencement of the legal action, and the dates of the K/Q reporting periods.

It’s public knowledge that the lawsuit was filed, and active when the SEC filings were submitted, so WHY was the legal action against the company not disclosed ?  If interested, a complete listing of the initial complaint, and all subsequent documents can be obtained here.  With the damages demanded ($75,000), that would have resulted in approximately 250 million shares of stock to satisfy payment.  Many would agree this is significant, so significant as to certainly warrant inclusion (disclosure) in each filing where the action was still active.   With approximately 16 documents having been filed with the court over a 6-month period, and at least $75,000. on the line, one would think it would be difficult to “forget” about the lawsuit, such that it would be overlooked when completing the SEC filings.

Also, as evidenced in the below graphic, before an actual trial began there was an out of court settlement.  According to the documents, the settlement amount was $32,128.00, to be paid in 3 monthly installments.  And as a condition of the settlement there was a provision in the settlement that provided for the event of a default (i.e. non-payment).  In the event of a default, a Judgement would be entered IN THE FULL AMOUNT of sought damages (i.e. $75,000.).

Well, guess what… Mr. Samblis did not make the very first payment, and, as the settlement terms allowed for, a Judgement for the full $75,000. was entered, AND… of course additional legal fees were requested as a result.  See the graphic below.

Where does the lawsuit stand today… unknown.  There was a hearing scheduled for 2/14/2014 but as the below graphic indicates, there was a “No Appearance”.  We don’t know WHO didn’t appear, or WHY they didn’t appear.  We have attempted to contact Mr. Kernan but as of this posting date there has been no response.  One could assume the debt is still outstanding, (if Mr. Samblis couldn’t make the first 10k payment, its unlikely he could come up with the 75k full default amount), however there is no confirmation of such at this time.  One could also assume that if the debt had been satisfied, such a significant expenditure would need to be listed in the 10K document.  However, there would be no need to assume anything if Mr. Samblis were to make a statement as to the status of the lawsuit.  He could say: a) its paid, b) he could say its not paid and why… c) he could say its not my fault and blame it on the accountant, or d) and  the most likely is… he could not say anything, and if he remains silent on the matter, that might give a good indication as to if its been paid yet.

Also troubling, and may explain a lot about the whereabouts of content (2000 hours of video, etc) and other issues, such as the reasoning for the “Strategic Partnership” designation of MyImagineTV (instead of a wholly owned subsidiary of IC Places, Inc.),  is the notification in one of the attorney’s letters seen below.  Notice the highlighted section related to the “remedies” available, specifically “taking possession of intellectual property”.

What was the lawsuit about… it had to do with the breach of terms and conditions set forth in a “Producer Agreement” regarding the production of the “Woody and Craig, Zombie Hunters”.  See the quasi-press release in the below graphic.

So folks… fraud, or an honest mistake?  You have the facts, and you can form an opinion of your own.

Additionally, it would seem appropriate for investors to ask… have there been any other misrepresentations in any of the previous SEC filings?  We know, as pointed out by Joseph Collins, that Mr. Samblis’s employment contract had not been listed in any previous filings prior to the dispute between them.  The notification of the employment contract started appearing after the dispute.  Below is an excerpt from one of our previous posts here, demonstrating there was apparently misrepresentation of Mr. Samblis’s Employment Contract.  One would think that an employment contract with terms that paid the CEO 250 million shares of stock, and $250,000. as compensation, would be significant enough to disclose.

Investors are led to believe that reports submitted to the SEC by reporting companies are accurate, and portray a valid and complete picture of the company listed.  With examples like the above, one rightfully questions if investors can really count on the accuracy of such documents.  Can you really trust what you read in these SEC filings anymore ???  What else may have been “forgotten” ?

The other indirect negative ramification of this breach of contract is… it would seem reasonable that other people in the network production/entertainment/talent end of the business may be hesitant to do business with Mr. Samblis now that he has a history of a breach of contract.  This no doubt makes it more difficult to do business.