Altomare told "BRING YOUR TOOTHBRUSH" by Judge Lyn

[soonerlew]

Judge to ex-Universal Express CEO: Bring your toothbrush next time

South Florida Business Journal - by Brian Bandell

www.bizjournals.com/southflorida/stories/2008/01/28/story6.html

A federal judge warned former Universal Express CEO Richard Altomare that if he doesn't show whether he has assets to start paying a judgment, he'd better bring his toothbrush to court next time.

The thinly veiled reference to going to jail for contempt of court puts the former head of the now-closed Boca Raton luggage shipping company in a tight spot. Complying with the judge in the New York civil case with the SEC could expose him to criminal charges.

Altomare faces a criminal investigation by federal authorities amid allegations made in the SEC case that he stole funds from the company. The court-appointed receiver for Universal Express asked him to return company funds used to purchase $558,900 in jewelry from Les Bijoux in Boca Raton, $30,000 in gambling markers at a Las Vegas casino and his $200,000 bonus. In October, federal authorities seized jewelry from a Boca Raton estate liquidator that paid Altomare $571,000 in cash.
Altomare: board approved payments

In court filings, Altomare said the company's board approved all the payments he received from Universal Express. Although Altomare had a minority stake in the company, he was its only board member.

Arthur Tifford, Altomare's Miami-based attorney, did not return a call for comment. He has appealed the judgment.

In April, Judge Gerard Lynch ruled that Altomare and corporate counsel Chris Gunderson illegally sold $500 million in unregistered securities and issued misleading press releases, hitting them with fines of $3.1 million and $794,711, respectively. The judge also ordered them to pay disgorgement and prejudgment interest of about half that.

According to the SEC's motion for contempt, Altomare has paid only $50,000, and hasn't turned over significant assets, including his bonus from Universal Express and the jewelry sale revenue. The SEC said Gunderson has paid nothing.

Altomare hasn't given the court many details about his assets. In a deposition before Miami-based receiver Jane Moscowitz, Altomare repeatedly pleaded the Fifth Amendment against self-incrimination. He even did so when asked to verify his signature and whether he reviewed documents placed in front of him.

Judge: $5,000-a-day fine is 'softball'

At a Jan. 18 hearing, SEC attorney Leslie Hughes requested the court fine Altomare $5,000 a day until he complied, but Lynch called that "softball." The judge set a Feb. 4 hearing, during which Altomare and Gunderson would take the stand and be asked about their assets and income.

Lynch told Altomare that if he doesn't cooperate or hides behind the Fifth Amendment, he'd better have his toothbrush ready.

If someone faces credible danger from criminal prosecution, he can plead the Fifth to conceal assets under civil discovery that could be used as evidence by prosecutors, said Jim Sallah, a Boca Raton-based securities attorney who used to work in enforcement for the SEC. But the judge's order is to pay the judgment, rather than disclose assets, which Altomare would have to do to prove he can't afford it.

"Violating the order to pay is a problem," Sallah said. "You can't just say, 'I'm taking the Fifth,' unless there's a real danger that paying would incriminate you."

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www.bizjournals.com/southflorida/stories/2008/01/28/story6.html

[imSINGLEruRICH]

Thanks to..
jersey
DIAMOND JEDI MASTER

OT/ usxp: Tifford given extension« Thread Started on Today at 8:23am »

USXP Pacer NY Update 28 Jan 08

Date Filed # Docket Text

01/28/2008 292 ENDORSED LETTER addressed to Judge Gerard E. Lynch
from Arthur W. Tifford dated 1/28/2008 re: request a two-day
extension to and including 1/30/2007 to which to accomplish delivery
of the document intended to be used by Mr. Altomare during the
hearing now set for 2/4/2008.

ENDORSEMENT: The extension is granted to 12:00 noon est on 1/30/2008.

No document produced to the SEC after that time will be received in
evidence at the hearing. (Signed by Judge Gerard E. Lynch on
1/28/2008) (jar) (Entered)

Doc 292
OCR extract

Re: SEC v. USXP ETC. ET AL,
S.D.N.Y. Case No. 04 cv 02322 (GEL)

Dear Judge Lynch:

I write to request a two-day extension to and including Wednesday,
January 30, 3007 within which to accomplish delivery of the document
intended to be used by Mr. Altomare during the hearing now set for
February 4, 2008. I make this request in the form of an opposed
motion as a result of SEC counsel's refusal to agree or "not oppose"
the request, verbally citing, in essence, that the Commission's
refusal is the result of your Honor's setting today, January 28, 2008
as the deadline within which to serve documents intending to be used
during the hearing.

While I do not interpret your Honor's wording as indicating that a
brief extension could not be requested, joined in by opposing counsel
or agreed to by the Court, I wish to point out to the Court that
throughout this litigation every extension requested by SEC counsel
was agreed to by me, without exception. In addition, SEC counsel has
had the benefit of all discovery taken by the Receiver and, based on
certain documents made known to the Court by the SEC when responding
to one or more motions by former co-defendant, George Sandhu, SEC
counsel also may be receiving the benefit of the investigative
resources of the United States Attorney's Office for the Southern
District of New York. Whatever the actual circumstances relating to
additional benefits and assistance available to SEC counsel, the very
brief extension of time I request will not prejudice and cannot be
argued by SEC counsel to prejudice the Commission.

I have attached a copy of email sent to SEC counsel Leslie Hughes
earlier today who informed my office moments ago of the Commission's
opposition to the request for the reasons I have stated previously.

Certification of Counsel

I have contacted Leslie Hughes, counsel for the Securities and
Exchange Commission who has authorized me to represent to the Court
that the Commission opposes the brief extension requested herein.

Counsel requests the extension to Wednesday, January 30, 2008.
As always, it is a privilege to serve this Court.

Respectfully submitted,

Tifford & Tifford, P.A.

By: Arthur W. Tifford
-------------

ENDORSEMENT:
The extension is granted to 12:00 noon est on 1/30/2008. No document
produced to the SEC after that time will be received in evidence at
the hearing. (Signed by Judge Gerard E. Lynch on 1/28/2008) (jar)
(Entered: 01/28/2008)

--- In [e-mail], "thinktank7777" <thefreelounge@...>

[hundredtoone]

By: slhicks1
21 Oct 2003, 12:28 PM EDT
Msg. 14273 of 1308040
Jump to msg. #
Very important article:

Universal Express -USXP CEO Richard Altomare in Washington DC to Offer Naked Short Selling Solutions on Eve of SEC Meeting
NEW YORK--(BUSINESS WIRE)--Oct. 21, 2003--Universal Express, Inc. (OTCBB:USXP) announces CEO Richard Altomare is in Washington DC on the eve of a meeting convened by the SEC to address naked short selling. Altomare is lobbying members of Congress suggesting positive solutions to the naked short selling issue.
Universal Express, one of thousands of companies that are victims of naked short selling, describes it as the electronic churning downward of shares of developing OTCBB companies by broker dealers and market makers who never intend to or fail to cover short sales. USXP contends that this practice amounts to counterfeiting stock and is separate and distinct from legitimate short selling.

The SEC outlawed most naked shorts in 1936 and because of recent pressures plans to consider a new Regulation SHO on Wednesday, October 22, at its 10 a.m. meeting. The new Regulation SHO is expected to require short sellers in all equity securities to locate securities to borrow before selling short, and add further requirements to address "naked" short selling.

Richard Altomare recommends the following actions be endorsed by Congress and the SEC:

-- The SEC immediately enforce all existing laws pertaining to

shorting in the 1933 and 1934 Securities

-- Anyone outside the U.S. requesting access to U.S. Securities

Markets must agree to comply in full with U.S. securities and

market laws, rules and regulations.

-- Rules prohibiting Sale of Unregistered Securities must be

rigorously enforced. Naked shorting is such a violation.

-- Any short sale must be done only after an "Affirmative

Determination" is made regarding the ability of the trader to

borrow the shares sold short for delivery within 3 days.

-- All trades must settle and clear within three trading days

from trade date.

-- Use of whip calls, kiting, electronic counterfeiting and other

such manipulations be subject to racketeering laws.

-- Shares may only be shorted on a zero or zero plus tick, except

for registered market makers and recognized arbitrage traders

for their own accounts only and not for client accounts.

-- DTCC must maintain the "identity type" of accounts for shares

transferred to its custody. Shares held in Cash, Excess

Margin, ERISA and similar accounts not be lent under any

circumstance. Already an existing rule, it is being ignored.

-- Real penalties be imposed including interest charges and

sanctions for any trades left unsettled after 3 days. A 10-day

fail be immediately treated as a broken trade.

-- Broker-dealers, clearing firms and clients shown to be engaged

in attempts to circumvent the above guidelines be formally

sanctioned once, and lose their licenses for a second offense.

"Naked short selling is economic terrorism. Universal Express and many other developing public companies are daily victims. We have been relentless in our pursuit of the naked short sellers. A jury of American citizens has awarded USXP punitive damages as a result of naked short sellers manipulating our stock, yet it continues for us and for many others. I have publicly called upon our shareholders to contact their Congressional representatives asking for the end to illegal naked short selling. I have written members of Congress and am personally meeting with them this week. I am most willing to work with my fellow Chief Executive Officers of developing and established companies to assist the SEC in their deliberations. I am here today pursuing this agenda and very hopeful the new leadership will consider regulatory reform," stated Mr. Altomare.

Universal Express, Inc. owns and operates several subsidiaries including Universal Express Capital Corp. (USXP Cash Express division), Universal Express Logistics, Inc. (The Virtual Bellhop, LLC and Luggage Express) and the WorldPost(TM) Private Postal Network, Inc. These subsidiaries and divisions provide the private postal industry and customers with value-added services and products, logistical services, equipment leasing, and cost-effective delivery of goods worldwide.

More information and website locations are available at www.usxp.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein, which are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the Company's control with respect to market acceptance of new technologies or products delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.


CONTACT: Equitilink
Ron Garner, 877-788-1940



(Voluntary Disclosure: Position- Long)

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