How Police Chief Frank Del Vecchio and
John Thomas Financial Created Fake Documents to Have Kai Patterson Falsely
Indicted, Before The Case Was Dismissed
UPDATE (December 31, 2017): Thomas Belesis Of John Thomas Financial
Was Eventually Charged With Fraud By The Securities Exchange Commission (SEC Charge) And the Financial Industry Regulatory
Authorities (FINRA Charges), But Frank Del Vecchio Was Never
Charged Even Though He Also Committed Fraud (See: Why Most Police Are Not Charged).
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Frank Del Vecchio
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On September 23, 2011, the Morris County
Prosecutors dismissed all 13 counts of their indictment against Kai Patterson,
after Patterson's attorney Benjamin Kelsen was able to provide
overwhelming proof that Frank Del Vecchio, and Martha Perez provided false
statements and evidence against Mr. Patterson. Both Patterson and his attorney
were able to use the statements of several AMBER Ready employees, corporate
filings, financial statements, bank records, e-mails and Frank Del Vecchio's
deposition to convince the Morris County Prosecutors Office that Patterson was
innocent of the charges. All of the charged filed in Bergen County by
Frank Del Vecchio and John Thomas Financial against Patterson, were
also previously dismissed (See: http://bit.ly/cCrKp8).
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Kai D. Patterson
|
According to the documents provided by Patterson's attorney, Frank Del Vecchio
and Martha Perez filed the false report against Patterson, after he refused to
issue stock certificates to dilute the shareholders of AMBER Ready so that John
Thomas Bridge and Opportunity Fund could become the controlling shareholder of
the company. Prior to Patterson being terminated as CEO of AMBER Ready, he was
offered a consulting position and the position of Chief Technical Officer to
step down as CEO by Frank Del Vecchio (See: Unsigned Resignation). Once Patterson refused the
offer, documents mysteriously appeared that alleged Patterson committed fraud.
The documents were certified by a private investigator named James O'Connor,
who was hired by Del Vecchio after he became the CEO of AMBER Ready, and used
in a police report filed by Frank Del Vecchio and Martha Perez. The documents
contained an e-mail that was to have been sent by Patterson, but the e-mail
address was mistyped in the documents falsified against Patterson. The
documents were cut to appeared they had been shredded by a shredder
in Patterson's office. Pictures of the cut documents were taken by James
O'Connor, along with pictures of the shredder in Patterson's office, and were
filed in a police report by Frank Del Vecchio.
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Frank Del Vecchio's Fake Evidence
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Patterson's attorney was able to prove the e-mail could not have been sent or received
by Patterson' because the e-mail address was not Patterson's or anyone's e-mail
address, because it was mistyped. Letters were provided by other former
employees of the company that stated the shredder had been broken for several
months. Pictures taken of the shredder also confirmed the shredder had a
burnout condenser, which prevented the shredder from operating (See: Fake Evidence). In the police report filed
against Patterson on September 11, 2009, Martha Perez stated that she found the
fake wire form created to allege Patterson's guilt, but later said Patterson
e-mailed it to her in the statements provided to the grand jury and the Morris
County Prosecutors Office.
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Benjamin Kelsen, Esq.
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Frank Del Vecchio lied to the Morris Count Prosecutors Office by stating the
Mr. Patterson overpaid himself to misappropriate funds, while knowing that Mr.
Patterson had employment agreements and a bonus agreement that require Mr.
Patterson to receive 6% of the funds raised by the company. The agreement
was a standing agreement that was never terminated, was executed at the time
that Mr. Patterson was not the largest shareholder of the company, and was
approved by the largest shareholder of the company at the time, although Mr.
Del Vecchio represented that Mr. Patterson wasn't approved by the company's
board of directors when it was approved more than two (2) years before Mr.
Patterson hired Mr. Del Vecchio and appointed him to the board of directors
(See: Patterson's Bonus Agreement). At the time
that Mr. Del Vecchio told the Morris County Prosecutor's Office that Mr.
Patterson stole the funds that his employment and bones agreements authorized
him to be pad, Mr. Del Vecchio was aware of the bonus agreement, but purposely
withheld it from the Prosecutor.
Ten (10) months prior to being falsely indicted, Mr. Del Vecchio attempted to
have Mr. Patterson's bonus agreement terminated in a board of directors
meeting. Since the agreement was executed in July 2006, and all of the
board members were appointed by Mr. Patterson in March of 2009, including Mr.
Del Vecchio, the board felt that it not go back and retroactively terminate a prior
employment bonus agreement that existed prior to their appointment as
directors. This issue and meeting was also verified by an the employee
who took minutes at the meeting (See: Cella's Directors Meeting Account). During
the board meeting, board members voted to approve Mr. Patterson bonuses, and
they called Attorney Mark Ross, who was AMBER Ready's attorney. It was
determined that if Mr. Patterson has a prior agreement that was issued prior to
the board members' appointment, the board could not vote to allow or disallow
salary and bonuses that accrued prior to their date of their appointment. The
approval was rescinded by the board and directors and Mr. Patterson's existing
agreement stood as it was already previously approved, and was not terminated.
"What was so ironic about Mr. Del Vecchio attempting to have my
bonuses terminated after I gave him a $100,000 annual salary while he still
maintained his current salary as a police chief, and bailed him out of loan for
a $250,000 purchase of a cell phone store in Ridgewood, NJ that was
failing by paying Mr. Del Vecchio a bonus of $50,000 per year to enable
Mr. Del Vecchio to pay off the loan. I raised over $18 million between
2007 and 2009 to enable me to pay him his salary, and his bonus without his
help, because he was busy serving as a deputy police chief, and they he
tried to have my bonus denied," says Patterson.
Although Mr. Del Vecchio failed to disclose Mr. Patterson's 6% bonus to
the Morris County Prosecutor's Office to make it appear that Mr. Patterson
misappropriated funds to enable Mr. Patterson to be charged with fraud, Mr. Del
Vecchio did disclose Mr. Patterson bonus in the S-1 Registration Statement and
Amendments in Paragraph 15 on Page F-32, but he would not disclose
the amount of the bonus while disclosing the numbers all other forms
of Mr. Patterson's compensations. Mr. Patterson's knew that he
could use is position in law enforcement to have Mr.
Patterson indicated without anyone taking the time to research the
disclosed bonus by Mr. Del Vecchio to the Securities and Exchange
Commission (SEC). "I wasn't even given the opportunity to
appear before a grand jury which is customary in most
indictments, because I could have easily provided the documents
to verify I only paid myself a fraction of what I was owed, and was due
over $300,000 in expense credits that I was prepared to provide as evidence
before all 13 counts of the indictment were dismissed by the Morris County
Prosecutors Office. The credits were later confirmed to be over
$320,000," says Patterson.
AMBER Ready had entered into a settlement agreement with Mr. Patterson
that absolved him of any wrongdoing in exchange for his resignation as a
member of a board of directors and issued him stock as part of the settlement.
The settlement did not restrict Mr. Patterson from reproducing his own
version of AMBER Ready, since the company was unable to produce another
working mobile phone version of AMBER Ready II that was designed by
Patterson. After the agreement was executed, Mr. Del Vecchio still had
Mr. Patterson indicted. "I was shocked, to be notified that I had
been indicted, because I had entered into a settlement agreement and had
my attorney provide me with an opinion letter that represented I had
been observed of any claims, even though I knew that I had been falsely
terminated (See: Attorney Letter). I knew they had spent
through the investment that i raised through John Thomas Financial, and
they had no working mobile phone application. I resigned because I
knew their company was worthless after I worked ten years to build it
into something great. After being absolved, getting an attorney
opinion confirmation of the settlement, and then getting indicted, I not only
provided overwhelming evidence that I did not steal any money, but I also
disclosed the fraud they had me indicted to hide," says Patterson.
Patterson's attorney was able to show
that counts 11 and 12 of the indictment that alleged Patterson created and
e-mailed Martha Perez a fake wire form were false, by showing that Patterson's
correct e-mail address was kdp@amberready.com,
not kap@amberalertsafety.com
(See: Refute of Counts 11 & 12, Johnson's E-Mail Confirmation, Schechter's E-Mail Confirmation, and Cella's E-Mail Confirmation). Patterson's
attorney was also able to show the fake e-mail and wire transfer form that were
alleged to have been shredded, could not have been shredded in the manner the
photographs illustrated. Not only did the shredder shred documents thinner then
the fake documents that were cut, but the shredder also shredded documents
vertically and the feed slot was too narrow to shred documents horizontally. In
order for any document to be shredded along a path of the horizontal text, the
document would have been required to be placed in the shredder horizontally.
But to make matter worse, the shredder did not work for more than 20 months
before the fake documents were produced, because the condencer had burned out
as shown in the photos (See: Fake Evidence In Shredder). According to the letter and affidavit
provided by two former employees, the shredder had not worked for several
months (See: Calla Exposes Del Vecchio's Investigator). An former employee of the company stated in her affidavit that Patterson's shredder had not worked the entire time she was employed with the company and that she was tasked with shedding all of Mr. Patterson's documents (See: Cella Affidavit).
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| NYCHA $1.5 Million Announcement |
Patterson's attorney was able to show that count 13 of the indictment, which
alleged that Patterson setup a "copy cat" program to receive copies
of Frank Del Vecchio's e-mails without authorization was false. He proved that
Patterson was the CEO, President, Treasurer, Secretary and a Director of the
Company when the "copy cat" program was installed. Patterson's attorney
was also able to show the "copy cat" program was installed to prevent
the misuse of the company's e-mail accounts. The "copy cat" program
began sending Patterson e-mails on September 9, 2009, which was several days
before Patterson was terminated as CEO. Once Patterson was terminated as CEO,
Patterson retained the titles of President, Secretary and Treasurer because
Frank Del Vecchio failed to amend the articles of incorporation until March 15,
2010 (See: Registered Filing Dates). Patterson also remained
on the Board of Directors as a Director until March 26, 2010, thus entitling
him to receive copies of all e-mails of company executives. The "copy
cat" program installed by Patterson enable him to monitor the fraud
committed by Frank Del Vecchio, Martha Perez, and other board members. Copies
of the e-mails that Patterson received from the "copy cat" program
enabled Patterson to prevent the New York City Housing Authority from being
defrauded $1.5 million, Federal Law Enforcement Officers Association (FLEOA)
and the National Organization of Black Law Enforcement Executives (NOBLE) by
AMBER Ready. In January of 2011, Patterson received a letter from the New York
City Housing Authority, thanking him for his actions (See: NYCHA Thank You Letter).
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Patterson Receiving NOBLE Award
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Patterson was told by his attorney the Morris County Prosecutors Office agreed
to dismiss all of the counts of the indictment if Patterson agreed to pay a
fine for announcing himself on a conference call that AMBER Ready's Board of
Directors secretly held on September 24, 2009. Patterson was legally allowed to
participate on the call since he was a director, and the company's by-laws
required all directors to be notified for telephonic conference calls, but
Patterson was not notified to participate on the call. Patterson learned of the
conference call when he received Frank Del Vecchio's e-mails from the
"copy cat" program he created. The conference call was setup to
discuss how to remove Patterson form the company Board of Directors (See: E-Mail To Setup Fraud Conference Call). Patterson called in 15 minutes before the call was scheduled and
took notes of the conversations. According to Patterson's notes, Frank Del
Vecchio stated that he intended to have charges filed against Patterson to
destroy his reputation and credibility. Frank Del Vecchio agreed to not file
the registration statement until after November 30, 2009, to allow enough
penalty shares to be issued to John Thomas Bridge and Opportunity Fund to
obtain control of the company. It was noted on the call that being the majority
shareholder would not entitle Patterson to be fired as a director, as was
indicated by an e-mail that was sent to Frank Del Vecchio by James Turner prior
to the call. The participants of the call agreed to go ahead and terminate
Patterson from the Board of Directors once John Thomas Bridge and Opportunity
Fund and John Thomas Financial collectively owned 75% of the company stock, and
force Patterson to fight the termination in court while fighting false criminal
charges filed by Frank Del Vecchio. Patterson announced that he was listening
on the call by sending each of the participants an e-mail that he was on the
call to document the call and he as on the call. Patterson then orally
announced that he was on the call and had recorded the entire call. Although
Patterson was entitled to participate on the call and speak since he was a
Board Member, the Morris County Prosecutors Office required Patterson pay a
fine of $250 for announcing himself on the call. "It's a small fine that I
should not have been required to pay, but it's less than one hours of legal
fees I've been paying to have the indictment dismissed," says
Patterson.
Patterson prepared documents to outline the fraud AMBER Ready intended to
commit from the conference call, and took the documents to Federal Authorities
on September 30, 2009. While Patterson was filing a report, Martha Perez
terminated Patterson's cell phone account that had been transferred to the
company's account in August of 2009. Patterson attempted to have Sprint
transfer the number back to his personal account, but Sprint refused to
transfer the account, although Patterson had the account since October of 2006.
AMBER Ready waited until December 18, 2009 to file its registration statement,
which enabled John Thomas Bridge and Opportunity Fund and John Thomas Financial
to collectively own more than 27 million shares and 74.5% of the issued and
outstanding shares of the company (See: John Thomas Financial's Free Trading Shares). The
shares were issued as penalty shares by Frank Del Vecchio and Martha Perez by
using Patterson's scanned signature on the certificates without his
authorization. Patterson sent Frank Del Vecchio a letter on September 18, 2009
demanding his signature not be used without his written authorization when he
learned his signature was placed on the first issuance of the penalty shares
stock certificates (See: Unauthorized Used Of Kai's Signature). Between
September 18, 2009 and April 1, 2009, an estimated 641 stock certificates were
issued with Patterson's scanned signature without his authorization. "They
were so sloppy in using my scanned unauthorized signature, because they sent me
a stock certificate to settle our civil dispute and for my resignation on March
26, 2010 with my own unauthorized signature," says Patterson (See: Certificate Issued With Kai's Unauthorized Signature).
AMBER Ready filed an amendment to the articles of incorporation to move
Patterson as President, Secretary and Treasurer on March 15, 2010, and
Patterson resigned from the Board of Directors on March 26, 2010, yet Patterson
signature was used on his stock certificate issued on April 1, 2010.
When Patterson was able to confirm the illegal uses of his signature to defraud
the AMBER Ready investors, he filed charges with the Rockaway Police
Department, and the Morris County Prosecutors Office. Although Patterson had
definitive proof that his signature was used without his authority to commit
fraud, and Frank Del Vecchio forced employees to defraud consumers, the Morris
County Prosecutors Office failed to take any actions. "I was told by the
Prosecutor Office they were not going to take any actions against Mr. Del
Vecchio or Mrs. Perez for forging my signature, yet they issued a 13 count
indictment against me for crimes I did not commit; where was the justice," says Patterson. The case was switched back and forth between two Assistant
Prosecutors for more than 15 months, once they learned Patterson was innocent
of the counts. Patterson's attorney requested the shredder be provided by the
Morris County Prosecutors Office to confirm it had a burned out condenser and
did not work, but the shredder mysteriously vanished (See: Burned Out Condenser).
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Thomas Belesis
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When Patterson was indicted, he was never given the opportunity to testify in
front of the Grand jury, which would have enabled him to expose the false
evidence and fraud committed against him. It appears that Frank Del
Vecchio was provided with a favor by having and indictment issued on his
testimony by the Morris County Prosecutor's Office. Not only did the
Morris County Prosecutor's Office not carefully examine the documents provided
by Mr. Del Vecchio, they never took the time to compare the e-mail address
used in the fake documents with Mr. Patterson's e-mail address. The
Morris County Prosecutor's Office also charged Patterson for dialing into an
AMBER Ready conference call. The conference call was held for AMBER
Ready's Board of Directors, which Patterson was a member at the time of the
call. The call was scheduled by members of AMBER Ready's Board of
Directors, and Thomas Belesis of John Thomas Financial to develop a plan to
terminate Patterson from AMBER Ready's Board of Directors. Patterson
learned of the call from a program he created while he was the CEO of AMBER
Ready to monitor the employees e-mails. When Patterson was terminated the
program continued sending him copies of several employees e-mails.
Unaware of the program sending copies of their e-mails to Patterson, Frank Del
Vecchio, Thomas Belesis and James O'Connor transmitted numerous documents
to confirm they defrauded AMBER Ready's shareholders, and attempted
to defraud the New York City Housing Authority.
Patterson's actions to participate and
announce himself on the call was not a crime, but the Morris County
Prosecutor's Office clearly had an agenda to cover up their error of indicting
Patterson. Furthermore, had Patterson not listened in on the call, he may not
have learned the intentions of the participates to defraud the shareholders by
waiting until December 2009 to file the registration to receive millions of
penalty shares. Patterson also may not have learned of Frank Del Vecchio's
intent to file false charges against him. "Not only did I document the
call and immediately turned the records over to authorities, but everything
that I documented about the call eventually took place months later," says
Patterson. Patterson's documents from the call confirmed the conspiracy by the
parties on the call to defraud the AMBER Ready investors. "I have
been approached by producers to create a script to produce a movie about
the story of AMBER Ready," says Patterson. Morris County's dismissal of
the indictment comes one day before the two year anniversary to the date that
Patterson learned of the fraud while on the conference call. "I have spent
the last two years creating a new company that I believe will help solve a huge
societal problem in America, and I am going to launch a press release to
announce the company shortly," says Patterson. Patterson new company has
been approved for a reality series to document the day-to-day activities of his
new company and he has been donated office space for his new company. The new
office space includes executive offices, several cubicles, computers and phones
to spearhead the development of his new company.
"I feel sorry for the AMBER Ready investors that have apparently lost
their investment," says Patterson. After Patterson was forced out of the
company that he spent ten years building, AMBER Ready shut down its operation
after merging with CK-41. According to several former employees of AMBER Ready,
Frank Del Vecchio sold the company's equipment to personally pay himself, while
on the Fairview, New Jersey Police Department payroll. After Frank Del Vecchio
contracted Shining Star Web Strategies to replace Blinglets, and Shining Star
Web Strategies could not produce a working mobile phone application, AMBER
Ready attempted to reengage Blinglets. AMBER Ready paid Blinglets $600,000 in a
settlement, but Blinglets refused to enter into another agreement with AMBER
Ready because they did not trust Frank Del Vecchio, according to Blinglets'
President Anthony Phills. After Blinglets learned that Frank Del Vecchio forced
the employees of AMBER Ready to lie, falsely sold the mobile phone application
they no longer had, and filed false charges against Patterson, Blinglets did
not want to have any further dealings with Mr. Del Vecchio or AMBER
Ready. This full affidavit provides an overview into some of the fraud Mr. Del Vecchio is accused of committing by a former employee (See: Cella Full Affidavit).
On August 5, 2011, the FBI announced they
have launched their own child safety mobile phone application, which has makes
it impossible for AMBER Ready to regroup if they ever could (See: http://engt.co/pF9ufD and http://cbsn.ws/2EBbR0U).
The FBI's application is free of charge to parents and links directly into the
911 emergency response network. Patterson first introduced the AMBER Ready
concept to FLEOA at a training session in June of 2009 (See: http://prn.to/2Cw1NZa and http://bit.ly/2iALq1H)
and other members of the FBI at the 21st Annual Crimes Against Children
Conference at a presentation on August 17, 2009 (See: http://www.cacconference.org).
One week after Patterson's second presentation of the AMBER Ready program to
the FBI, documents were falsified by Frank Del Vecchio to arrange for Patterson
to be terminated.
After Patterson's termination, AMBER
Ready merged with CK-41, and formed Galaxy Media and Marketing Corp without
disclosing the company no longer had a working mobile phone application. Gary
Savage, who was the CEO of CK-41 and became the CEO of Galaxy Media and
Marketing Corp, has shut down the company after learning the company investment
banking agreement enabled John Thomas Financial to take control of the company.
Gary Savage has filed a lawsuit against John Thomas Financial, John Thomas
Bridge and Opportunity Fund, Thomas Belesis and George Jarkesy for committing
numerous acts of fraud against the company and numerous misrepresentations. In
addition to the lawsuit filed by Gary Savage, FINRA has fined John Thomas
Financial $275,000 for other acts of fraud, including misrepresenting
commission fees to their clients (See: http://bit.ly/nmDENa).
In an attempt to help Frank Del Vecchio
commit fraud, James O'Connor falsified the documents and provided a false
certification to the Morris County Superior Court. Mr. O'Connor is a highly
decorated private investigator that is a security consultant to the FOX News
Channel and My 9 News in New Jersey. In 2004, James O'Connor received the
National Merit Award from FBI Director Robert Mueller, among numerous awards
between 2003 to 2006. Mr. O'Connor issued a false certification to the Morris
County Superior Court that contained a mistyped e-mail address when the
documents were falsified. Mr. O'Connor has now opened himself up to civil and
criminal prosecution, since numerous acts of fraud were committed that are now
being investigated by authorities. Mr. O'Connor's actions have now caused AMBER
Ready's investors to lose more than 18 million dollars. Patterson spent more
than 10 years building the company, and Mr. Del Vecchio took less than 10
months to lose the investors investment, when the company shut down while he
was the CEO. AMBER Ready is the third company to fail under the management of
Mr. Del Vecchio in less than 3 years (See: http://bit.ly/bvOKlD).
James O'Connor's actions are an indication of the influence and power Frank Del
Vecchio has to get people to commit fraud. Not only did several former AMBER
Ready employees lie about the status of the company's mobile phone application
after Patterson was terminated, but every Board Member singed the registration
statements filed by the company except Kai Patterson and Robert Christie. Both
the registration statement and the amendment filed by Frank Del Vecchio with
the Securities and Exchange Commission contained numerous false statements,
including lies about the mobile phone application and the company's
enrollments. Mr. Del Vecchio also was able to convince Paul Kaufman, who is the
attorney of the New Jersey Democratic Committee to join Galaxy Media and
Marketing Corp's Board. Prior to Galaxy Media and Marketing Corp shutting down
its operation, a private placement memorandum was filed which also contained
false statements that were issued by Galaxy Media and Marketing Corp's Board
Members, and CEO.
Since this information was posted, John Thomas Financial was been charged with
fraud by the Securities and Exchange Commission (SEC) and FINRA, Frank Del
Vecchio has stepped down as CEO, AMBER Ready's successor company Galaxy Media
and Marketing Corp has Shutdown, and John Thomas Financial has shutdown. With
the help of several former AMBER Ready employees, the more than 35 million
shares Frank Del Vecchio issued to John Thomas Financial's hedge fund, which
they intended to dump on the market at $10 per share, was prevented by the SEC.
CNBC has also recently produced a television story called "Greed and
Fraud" that exposed the fraud committed by John Thomas Financial, which
was committed with the help of now Fairview Police Chief Frank Del Vecchio (http://bit.ly/1bd4FBq).
By: A Former AMBER Ready Employee
P.S.
Since this information was posted, John Thomas Financial was been charged with
fraud by the Securities and Exchange Commission (SEC) and
FINRA (See: Fraud Charges), Frank Del Vecchio has stepped
down as CEO, AMBER Ready's succor company Galaxy Media and Marketing Corp has
Shutdown, and John Thomas Financial has shutdown. With the help of several
former AMBER Ready employees, the more than 35 million shares Frank Del Vecchio
issued to John Thomas Financial's hedge fund, which they intended to dump on
the market at $10 per share, was prevented by the SEC. CNBC has also recently
produced a television story called "Greed and Fraud" that exposed the
fraud committed by John Thomas Financial, which was committed with the help of
now Fairview Police Chief Frank Del Vecchio (See: NBC Fraud & Greed).
John Thomas Financial was eventually shutdown by U.S. Federal
Authorities (See: Shutdown), and Mr. Belesis was stripped of his
license to operate as a securities broker (See: FINRA Order). Although Mr. Del Vecchio
admitted to committing felony fraud, by admitting AMBER Ready had no
mobile phone application while attempting to collect $1.5 million from the New
York City Housing Authority, he was never charged with fraud. He also admitting
to committing another felony when he lied in the 2009 registration statement and
in the 2010 amendment that he filed with the SEC by saying AMBER Ready
had 4,000 subscription (See: Page 26 - Market Analysis, and Page 28 - Market Analysis), then said AMBER Ready
had 600 enrollments, but their staff members said the
company had less than 300 enrollments, and their financials filed in
the registration statement. Since Mr. Del Vecchio was a police chief, and
it's been confirmed in a House Judiciary Hearing before Congress that federal
and state agencies will not prosecute police officers who commit crimes, and
agents will testify on behalf of police officers who commit crimes
(Video: Congressional
Hearing) under the Blue Wall Of Silence, it's very unlikely he will
ever be charged.
By: A Former AMBER Ready Employer
For More Information, Also See:
