Re: John DeLorean reference & old Video

[DMCVegas@xxxx]

A trial did take place in Michigan I believe. That trail was for the 
bankruptcy of DMC. Durring this trial was when fraud alligations 
first appeared. The biggest evidence was the "Gold Facets" memo 
written by William Haddad. What isn't commonly noted though is that 
while on the stand Haddad admitted he forged the memo. DMC sunk cash 
into building more cars when they couldn't gain export financing in 
an effort to stay afloat by means of self sufficiency rather then an 
injection of capitol from outside the company (which they were due by 
the British Govt). Offhand there are only 3 items I can think of that 
were not wise investments at the time: The 5th Avenue Apartment, The 
DMC-80, and the Art Collection in the Park Avenue office. While the 
timing wasn't the best to buy Logan Manufacturing, it was good move 
none the less.

Later on, DeLorean's accounting firm tried to say that John DeLorean 
was responsible for the failure of DMC, and that he (JZD) should have 
to pay the creditors. Aurther Anderson lost and was ordered to pay 
damages because they let DMC fail. A.A. was more concerned with 
losing thier cut of DMC's profits by stake holders pulling out/not 
investing rather then the survival of DMC. The court stated that 
A.A.'s primary interest should have been protecing it's investors 
money by way of looking out for their interests. They had enough 
power that they could have stepped in and if not have saved the 
company, they could have kept losses at a minimum when it did fail.

Even if DMC had managed it's capitol better (not just JZD, but the 
company and it's associates as a whole), they would have made cars a 
little longer, but they could not have survived. It was an expanding 
company with a good product that was in demand by consumers. But as 
soon as they turned that first profit the first year in bussiness, 
little things kept popping up to hinder the company any way possible. 
Belfast was the best choice for DMC to build finacialy and 
industrialy, but it was going to be shut down anywhere it went...

-Robert
vin 6585



--- In dmcnews@xxxx, senatorpack@xxxx wrote:
<SNIP>
> Was DeLorean involved in Fraud?