Veltex Corporation Awarded Damages in Utah State Court Matter

Nov 01, 2012, 12:15 ET from Veltex Corporation

CHICAGO, Nov. 1, 2012 /PRNewswire/ -- Veltex Corporation -- OTC Markets symbol (VLXC) -- Veltex Corporation ("Veltex")

Veltex Corporation, in a long and successful series of legal victories, today announced efficacious results from the Company's litigation in the State of Utah, re Veltex Corporation v Lee G. Scharf, case 08-0907145  and in the United States Bankruptcy Court in Los Angeles, California in re Veltex Corporation vs Lee George Scharf, case 2:09-bk-03558-PC

Utah State Judge, the Honorable Kate A. Toomey, after an evidentiary hearing awarded Veltex monetary damages against former Veltex Receiver Lee George Scharf of South Redondo Beach, California.  Mr. Scharf filed bankruptcy in Los Angeles, California and attempted to discharge his debt obligations to the corporation. Veltex filed suit in the United States Bankruptcy Court to block this attempt.

United States District Bankruptcy Judge, the Honorable Peter H. Carroll, handed down Summary Judgment in favor of Veltex Corporation and against Lee G. Scharf. The court awarded $57,166.67 plus interest beginning from January 4, 2012 and continuing. Provisions providing time for appeals by the defendant have now lapsed in both forums.

James Jacob, President and CEO, and major shareholder, stated "Veltex shareholders can be assured that this Board of Directors and management has the same verve and energy as we had from the beginning to recover, protect and maximize the value of any and all assets belonging to the corporation. We continue to explore all opportunities available to us and are working diligently to secure the corporation's rights on all fronts. Veltex continues to work closely with law enforcement officials in perusing other individuals or corporations who assisted in the wrongful transfer of assets away from the company and to secure their return."

In late March of this year a United States District Court in California handed down one of the largest awards ever in the Central District of California, more than $102 million, in favor of Veltex Corporation. The judgment continues to carry interest in favor of Veltex. Several defendants in that matter have settled with Veltex under strict confidentiality agreements. That case was filed in the United States District Court, Central District of California (Western Division - Los Angeles) entitled, Veltex Corporation vs. Javeed Azziz Matin et al, case number 2:10-cv-01746-ABC-PJW. The case alleged damages from 22 individual and corporate defendants. The litigation which had been followed closely by legal scholars outlined a massive fraudulent conveyance and transfer count wherein millions of dollars of corporate assets were stolen by the defendants.

Veltex will update shareholders with developments as progress warrants on legal matters.

Veltex Corporation, incorporated in Utah September 17, 1987, is a public holding corporation which maintains its corporate headquarters in Chicago, Illinois. The company's common shares trade OTC Markets under the symbol VLXC.

Investor and Company Contact: 
Stephen G. Macklem 
Veltex Corporation

Safe Harbor Statement
Certain of the above statements contained in this press release are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. This press release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as Veltex or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe Veltex's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.

SOURCE Veltex Corporation