Did Altomare Avoid Paying Sales Tax on a $485,000 Diamond?

If there is one person that simply can't stay out of trouble it is Richard Altomare, the notorious former CEO of Universal Express, Inc. (USXP.PK).

Not long after the SEC seized his company and appointed a receiver (click here to read about the case) it was discovered that $558,900 had been wired from the company bank account to Les Bijoux, a retail jeweler located in Boca Raton, FL. The money was used by Altomare to purchase various pieces of jewelry. Later it was learned that Altomare had taken the jewelry purchased at Les Bijoux and sold it to The Estate Department, Inc., a second hand jewelry dealer, where Altomare obtained $500,000 in cash for the jewelry. All of this was done while Altomare was failing to make court ordered payments on a judgment obtained by the SEC.

After reading the above you might say "stick a fork in Altomare, he's done". Probably so but unfortunately for Altomare he has a following in a discussion group that likes their meat very well done.

Click on the thumbnail of the receipt they found in the court filings. Notice where it says "Out-of-State sale, exempt from sales tax" and then look at the addresses given for both the buyer and the seller. How is it they can claim the item was exempt from Florida sales tax when it's obvious the sale was in State?

You can bet the farm Altomare's detractors will make sure that question gets answered.

Information regarding the laws and regulations governing the collection of the sales tax in Florida can be found in the following links:

Annual Resale Certificate for Sales Tax

Internet and out-of-state purchases

Methods for Documenting Sales for Resale

Contact information:

Florida Department of Revenue
104 Carlton Building
5050 W Tennessee St
Tallahassee, FL 32399-0100
EMailDOR@dor.state.fl

Former USXP Employee Claims She was Made to Work Overtime Without Compensation

Richard Altomare & USXP sued for back wages. I recently discovered a lawsuit that was filed in United States District Court, Southern District of Florida (Moulton v. Universal Express,Inc. et al) against Universal Express, Inc. (USXP.PK) for back wages allegedly owed a former employee. The suit also names Richard Altomare, the former CEO (also known as "Commander Fluffy" in investor discussion forums) as a defendant.

What comes next is of no surprise to anyone following the saga of Altomare's penny stock scam-a-thon: the plaintiff alleges she was made to work overtime without compensation.

Previously, we learned from documents filed by the court appointed receiver that USXP employees charged tens of thousands of dollars in company expenses on their personal credit cards in an effort to keep the company afloat, charges Altomare never reimbursed.

Where is Richard Altomare?

Last month the attorney for the plaintiff in the case for back wages submitted a motion for a default judgment which was apparently denied by the court for lack of service on one or all of the defendants. Maybe they can catch the defendants in Florida now.

Altomare was recently in New York answering questions about his finances in respect to the $21.9 million judgment the S.E.C. obtained against them. Had Altomare not shown up for that hearing judge Lynch, in no uncertain terms, assured Altomare he would go to jail. The Judge & the S.E.C. would like to know where all the money went.

As Gary Weiss said in another article published on 2-8-08, it's: "Universal Express, Again and Again and Again".

Let them eat cake?

While Richard Altomare and his wife Barbara were living it up, their employees, shareholders and vendors were being told Universal Express was the victim of an imaginary offshore shorting scheme our government helped enable. Altomare even went so far as to take out a full page ad in the New York Times and publish a press release that said his firm has "Declared War on Naked Shorts".

Yet take a look at where they were living: here is a $1,195,000, 4396 sq ft 4 bedroom home they are trying to sell "furnished": http://www.palmbeachflorida.com/mls_listings/R2845377

The asking price on the other home they have listed with MLS is $3,900,000: http://www.joanirichter.com/idx/residential/R2854757/details.html

Is Altomare Going to be Moving Out of Dodge?

While his employees were minding the store it looks like Altomare was busy taking some mortgages out on his homes before the S.E.C.'s hammer came down hard on him: http://tinyurl.com/26rkmu http://tinyurl.com/24ndp8 http://tinyurl.com/394xk7 & http://tinyurl.com/2ht6yk

Although the S.E.C. has obtained a judgment against Altomare and his scam company has been seized it appears USXP continues to be the gift that keeps on giving, if you are Richard Altomare.

Brad Rinehart can be reached at brad.rinehart@yahoo.com

Richard Altomare Testifies in Court

I'm Flat Broke Your Honor

After two days of testimony, Richard Altomare, the notorious former CEO of Universal Express, Inc. (USXP.PK), has once again dodged a bullet in court. According to what appear to be eyewitness reports posted in a discussion forum called Raging Bull Altomare finally complied with the court's order to take the stand. Previously, Judge Lynch had warned Altomare that if he didn't come prepared to discuss his assets he had better bring a toothbrush. What came from his testimony can be found in bits-n-pieces on the Raging Bull forum from users named "ct_outdoorsman" and "xrayviscion". The point of Altomare's testimony is to show the judge why he has not made payments on fines handed down by the court.

It looks like Altomare is doing everything he can to convince the court he is flat broke, not a hard task for a penny stock scam artist to do, most are quite capable of spending beyond their means. Like the $300,000 in cash he spent on everyday bills, the payment on the Bentley (something no penny stock CEO should be without), another $600,000 spent renovating his $4,000,000 condo, $98,000 or so spent on flat screen TV's and a stereo system, - you know, all the normal stuff but he did charge a few things, like when he wined and dined "the contacts he needs to maintain" (future pen pals?). Then there is the $150,000 he gave to his attorney but he's not sure what it was for.

The Touts Come Out and About

Seeing this as a victory of sorts, the fact that Altomare is not in jail, the touts were quick to jump on the message boards and pump the stock they so desperately want to dump. thinktank7777, a poster on Raging Bull, writes "NOW MIGHT BE A GOOD TIME TO BUY USXP STOCK". Never mind the fact the SEC has seized the company, removed Altomare, and begun the process of liquidating the company. thinktank7777 writes with desperation and can often be found rambling on and on about all the bizarre reasons he thinks people should hang on to their shares of stock in USXP.

Not to be outdone, there is a self-employed photographer using the alias mekay who spends his days attacking without remorse anyone that has anything adverse to say. mekay's efforts to squeeze something out of this horrible mistake he thought was an investment probably crossed the line when he started trying to convince people he has inside information.

In another forum... one of our favorite stock touting scamsters, Doogrof, has returned with a piece warning people that " Universal Express will rise again and the SEC and its minions will pay for it". Your's truly believes the only thing Altomare will rise to in the future is the sound of the prison dinner bell.

This Doesn't Look Good on My Resume your Honor

It has been reported that at one point during his testimony Richard Altomare stated that his effort to find a job has been hampered by all of the publicity surrounding this case. No surprise here. How many companies are looking for a former CEO nicknamed "Commander Fluffy" and "Altofraud" that has sold billions of shares illegally into the market while absconding with millions of dollars? Maybe Altomare could be a real catch if you need a guy that can run a company for 15 years without ever making a profit, and do it while living like a king. Problem is, if you hire him now it's quite probable he will have to run your company from a jail cell.

The Threats Continue

ct_outdoorsman, the user posting eyewitness accounts of the court hearings on Raging Bull, was recently threatened:

"Due to some recent threats by a yahoo board member, my hearing notes will only be available via email. I will mail them to ezspence and he can disseminate only to those he deems appropriate, not the kool-aid gang. Notes should be ready tonight, if not enjoy them with morning coffee."

Another user sent me a copy of a threat they received regarding this blog:

Sent By: virginian

To: xxxxxxx

Date:1/22/2008 2:37:11 PM

That was a Fucking bullshit blog. DO NOT FUCKING POST IT AGAIN!!!!!!!!I will deal with that asswipe!!!!!!!!


"It's against my principles to kill anything, unless I absolutely have to"

virginian can be found on Investor's Hub, I included virginian in a piece I wrote back in January about the touts on that forum. Maybe virginian's signature line, as seen in the above threat, tells you something about the man. This is the person that was moderating the USXP forum on Investor's Hub, believe it or not.