How Gary killed CME
October 2008 Stock Purchase agreement aka (Garvick Stock Agreement)
- before Garvick Stock Agreement, Garvick Properties acquired 14.5 million shares of CME worth $4,350,000.
- CME shares where not been paid for.
- Because of the Garvick Stock Agreement, CME was unable to utilize the 14.5 million shares of CME to raise capital.
- No officers and Directors of CME were not made aware of the Garvick Stock Agreement apart from Gary Whiting.
Stock Option Agreement aka (Garvick Stock Option Agreement)
- CME is listed as party to the Garvick Stock Option Agreement.
- Pursuant to the Garvick Stock Option Agreement, CME had 14 million and 500 thousand authorized but unissued shares.
- CME granted the purchase of 14 million shares for $1,000.
- CME granted the purchase of 500 thousand shares for $1,000.
- Garvick Properties failed to make both payments.
- Gary Whiting failed and refused to take action on Garvick Properties.
- Gary Whiting executed the Garvick Stock Agreement on behalf of Garvick Properties and CMG.
- No officers and Directors of CME were not made aware of the Garvick Stock Option Agreement.
Gary Whiting’s Personal Obligation to CME aka (The Original Whiting Loan)
- On or around August 22, 2006 Gary Whiting caused CME to loan him $1,485,000.
- The Original Whiting Loan was allegedly approved by the majority stockholder of CME, Garrick Enterprises.
- Gary Whiting didn’t submit the Original Whiting Loan to CME’s Board of Directors for review or approval.
- Gary Whiting didn’t have to pay the loan until August 17, 2009.
- In October 13, 2006 Gary Whiting caused CME to loan him an additional $2,569,531 (the revised Whiting Loan).
- The Revised Whiting Loan was allegedly approved by the written consent of the majority stockholder of CME, Garrick Enterprises.
- Gary Whiting signed the revised loan on behalf of Garrick Enterprises.
- Gary Whiting didn’t have to pay the loan until August 17, 2009.
- As of December 31, 2008 Gary Whiting owed CME approximately $4,460,000 under the revised Whiting Loan.
- Around January 7,2009 Gary Whiting executed a document to the majority stockholder to CME, Garrick Enterprises, that erased Gary Whiting ‘s Revised Whiting Loan (“Mr.Whiting’s January 7 Action”).
- As of December 31,2008 Garvick Properties still owed CME $12.6 million under the New Garvick Subscription Agreement.
- Garvick Properties paid approximately $4.5 million related to the New Garvick Subscription Agreement.
- Pursuant o the the January 7 Action CME was directed to re-allocate the $4.5 million in payments received from Garvick Properties to pay of the Whiting note.
- Gary Whiting instructed and caused CME to extend the term of payments due under the New Garvick Subscription Agreement to December 31, 2009.
- No consideration was received by CME/CMG for the extension of the New Garvick Subscription Agreement.
- Gary Whiting failed and refused to take action on behalf of CME to protect against MR. Whiting’s January 7 Action.
Author: Aaron Meehan
Hi, I’m the creator of SG Gaming Info. When I’m not working on my writing or creating content for this site’s YouTube channel, I like to relax and enjoy character driven story games.
[…] Repercussions are still being felt from the CME debacle – in May 2012 investors continued further litigation against Whiting and other CME executives. Whiting has already been ruled against in two hearings about his actions at CME, with investors receiving millions back from those judgements, but there is a claim that he ended up directly and indirectly devalued CME to the tune of over US$78m. […]