Jim Edwards quickly built a long-distance-dialing empire. But he couldn't keep the distress calls on hold. Then the line went dead.
By Bob Burtman
In early December Edwards began negotiating with Equalnet Communications Corporation, a telecommunications company that was emerging from its own financial troubles. The fact that he had nothing to offer didn't deter him. "He had a company that was going down the tubes, and he wanted to see if he could pull off a miracle and sell it for something," saysMitchell Bodian, Equalnet CEO.
All that makes his April 14 court date in Washington, D.C., seem like small potatoes. On January 12 Edwards was arrested at Dulles International Airport for carrying a gun in his briefcase. He says he forgot it was there.
Lawsuits from disgruntled minority shareholders or ex-employees -- who are owed a total of almost $1 million -- may be around the corner. "There's definitely a fiduciary duty between the board of directors [Edwards, Driscoll and, before he left, Evans] and the shareholders," says assistant county attorney Rock Owens, who invested a modest $2,000. "It makes one question whether that fiduciary duty was fully adhered to. I just started wondering, where the hell did the money go?"
That question may be left to investigators and the courts, but Edwards avows that his account is empty. That seems a stretch, given that he admits to more than $2 million in salary and bonuses over a four-year period (and others peg that figure much higher), but he sticks by his story. "I put everything I had back in the company, trying to save it," he says. "It ended up not being a very smart decision."
SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported) June 21, 2000 -------------------------------- EQUALNET COMMUNICATIONS CORP.................
INFORMATION TO BE INCLUDED IN THE REPORT Item 4. Changes in Certifying Accountant The accounting firm of Ernst & Young LLP ("Ernst & Young") has resigned as the independent accountant for Equalnet communications Corp. ("Registrant") effective June 21, 2000. Ernst & Young issued reports on the financial statements of Registrant as of June 30, 1999 and 1998. Such reports were qualified by the assumption that Registrant will continue as a going concern. The resignation of Ernst & Young occurred without action by the board of directors or the audit committee of Registrant. There were no disagreements between Registrant and Ernst & Young on financial accounting and reporting matters or auditing procedures with respect to the financial statements for June 30, 1999 and 1998. Registrant has not yet engaged an independent accountant as a successor to Ernst & Young. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits (c) Exhibits Exhibit Number Description -------------- ------------ 16. Letter from Ernst & Young LLP dated June 23, 2000. 2 <PAGE> SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. EQUALNET COMMUNICATIONS CORP. By: /s/ Mitchell H. Bodian ------------------------------------ Mitchell H. Bodian President & Chief Executive Officer
Forest Products. CONTACTS. Mitchell Bodian. SUMMARY. Rainforest Family Llc is located at 22 Crescent Rd in Westport and has been in the business of Forest ..