Thursday, January 17, 2008

Jason C. Lindsey backdates his resignation: Proof

In two previous blog posts entitled, "Why did Overstock.com President and COO Jason C. Lindsey really resign?' and "Did former Overstock.com President, Chief Operating Officer, and Director Jason C. Lindsey backdate his resignation?" I raised the question about Jason C. Lindsey's possible backdating of his sudden resignation from Overstock.com (NASDAQ: OSTK). According to his resignation letter, Jason C. Lindsey claimed to resign on December 31, 2007. However, according to documents relating to Overstock.com's amended credit agreement with Wells Fargo Bank entered and executed a day later, on January 1, 2008, Jason C. Lindsey was still listed as a person authorized to make advances on behalf of Overstock.com.

Recently, Jason C. Lindsey filed an a sworn declaration in connection with a Special Motion to strike Copper River's countersuit against Overstock.com and certain director defendents. (See my last blog item entitled, "Are certain former Overstock.com directors jumping ship on Patrick Byrne?") According to Jason C. Lindsey's sworn declaration to the court:

I was a member of the Board of Directors of Overstock.com ("Overstock") between October 1999 and between October 2005 and January 2008. I was also Overstock's Chief Financial Officer from 1999 until August 2003 and served as Overstock's President from April 2006 until January 2, 2008.

Note: Bold print and italics added by me.

Therefore, according to Jason C. Lindsey's sworn declaration, he was still a board member until "January 2008" and Overstock.com's President until "January 2, 2008." However, Jason C. Lindsey's sworn declaration contradicts his own resignation letter:

December 31, 2007

Dr. Patrick M. Byrne
Chairman of the Board Overstock.com, Inc.
6350 South 3000 East
Salt Lake City, Utah 84121

Dear Patrick:

As we discussed this afternoon, it has been two years since I came out of retirement to return to Overstock. Much to my satisfaction, Overstock has accomplished a lot during those two years and I am pleased that I was able to participate in the company's turn around. However, as we discussed, we both believe that it is no longer necessary that I be as intimately involved in the day to day operations of the company. I would like to reduce my participation in the company so that I can spend more time with my family and be more involved with some outside business ventures. Thus, effectively immediately, I hereby resign as a director and as the president and chief operating officer of Overstock.com, Inc. As we discussed, I will remain a part-time employee of the company and work on special projects under your direction.

Sincerely,

Jason C. Lindsey

Note: Bold print and italics added by me.

In addition, Overstock.com apparently filed a false 8-K report to the Securities and Exchange Commission, claiming that Jason c. Lindsey resigned on December 31, 2007, since according to Jason C. Lindsey's sworn declation he was a board member until January 2008 and Overstock.com's President until January 2, 2008.

On December 31, 2007, Mr. Jason C. Lindsey resigned, effective immediately, from his positions as President, Chief Operating Officer (principal operating officer) and a member of the Board of Directors of Overstock.com, Inc. (the “Company”). Mr. Lindsey intends to spend more time with his family, but also intends to remain a part-time employee of the Company and to work on special projects as requested from time to time by the Company.

Note: Bold print and italics added by me.

Sounds like fraud to me. I wonder what Wells Fargo Bank and the SEC will think about this latest lie by Overstock.com, too?

Written by:

Sam E. Antar (former Crazy Eddie CFO and a convicted felon)

2 comments:

hector said...

This whole thing is just bizarre? If this was fraud, why? What was the purpose? If it was an intentional deception it had to serve some kind of purpose, but what? Additionally, if it was intentional, surely they knew that it wouldn't go unnoticed. Surely they know that they have a thousand eyes on them right now.

So maybe it was just sloppiness. Both patterns exist with this company to be sure, but it is an odd and all too obvious oversight.

Sincerely,
Anxious to Hear More

hector said...

I had a thought today on a possible reason for the backdating. Actually, maybe it was a forward dating. Maybe after he'd had a few too many late new years eve, he fired off a resignation to Patrick Byrne. Then on Tuesday Morning when he woke from his drunken stupor he suddenly realized he had no health insurance (most group health insurance expires the last day of the month in which one resigns).

So perhaps then in a panic he called up Patrick and pleaded with him to forward date his resignation to the 2nd so he could get another month of health insurance on the shareholders dime while he makes other arrangements.

Sincerely,
Anxious to Hear More

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