NEW YORK, Dec. 31 /PRNewswire-FirstCall/ -- via COMTEX -- As discussed by e-Smart Technologies, Inc. (Pink Sheets: ESMT); ("e-Smart" or the Company") during its December 27, 2007 Telephonic Shareholder Conference Call, the Securities and Exchange Commission (SEC) has initiated an inquiry and has issued subpoenas to the Company for documents including those relating to certain loans made to e-Smart from its parent company IVI Smart Technologies Inc., ("IVI") and Intermarket Ventures, Inc. As in all such inquiries, the SEC has confirmed that it is conducting a "non-public fact-finding inquiry" and that its inquiry "does not mean that [the SEC] have a negative opinion of any person, entity or security" or "that anyone has broken the law." As confirmed by the Company's legal counsel during that telephonic conference, "we received those requests for information, we've reviewed them and we're in the process of complying with all requests for information that come from the SEC."
The Company's legal counsel, Maranda Fritz, also provided an update relating to other important legal issues affecting the Company including the Company's pending litigation in the Northern District of California which resulted from the actions taken by two convicted felons, Wayne Drizin and Michael Gardiner, and Gardiner's company, ID Smart. Fritz advised that the court issued an order prohibiting Drizin from any involvement in the biometric smart card industry, and barring Gardiner from using any e-Smart technology. The court further ordered that those defendants return to e-Smart any and all property of the Company that they possessed. The Company is seeking a permanent injunction to prevent any use in the future of e-Smart's technology by Drizin and Gardiner and ID Smart.
The issuance of subpoenas by the SEC may also relate to further efforts by Gardiner and the other defendants to damage the Company and its shareholders. In November of 2007, Gardiner issued a public release stating that he had written a letter to the SEC claiming that the Company should have but did not publicly report their own -- Gardiner's and Drizin's -- wrongful conduct and their attempted theft of the Company's property. Details of these actions by Drizin and Gardiner were made public by the Company in a November 14, 2007 press release "e-Smart Technologies Responds to Press Release Issued by IDsmart LLC," and is available on the Company's website http://www.e-smart.com.
In response to the SEC's inquiry, Mary Grace, CEO of e-Smart said, "The SEC is dedicated to the protection of the shareholders of public companies, and as the protection of our shareholders is my utmost concern, I am grateful that the SEC is looking into these issues. The actions of Gardiner and Drizin did cause damage to our shareholders because the Company was forced to take legal action to protect its intellectual property, and experienced delays in production. That Gardiner then tried to use his own fraudulent conduct to support his claims to the SEC, we believe, makes a mockery of the SEC and constitutes another act of securities fraud, the same conduct for which he already stands convicted. The Company will make available all information requested by the SEC so they can fully review the actions of Wayne Drizin and Michael Gardiner/ID Smart against our shareholders and our Company. I am confident that, after the SEC looks at all matters relating to our Company, they will take appropriate steps to address the repeated instances of wrongful conduct by Drizin and Gardiner, and protect our Company and others from such conduct in the future."
e-Smart Technologies, Inc., is the exclusive supplier of the Biometric Verification Security(TM) (BVS2(TM)) system, the Super Smart Card(TM) system technology and related system technologies for Asia, Africa and the US, which e-Smart believes to be the world's first smartcard of its kind with an on-card sensor and a full match on-card system and other unique technologies for secure biometric ID verification. e-Smart's next generation technologies allow governments, public and private institutions, healthcare providers and insurers, companies large and small, to provide a superior level of protection. The Super Smart Card(TM) system technology and BVS2(TM) security system can secure countries from criminal and terrorist threats, stop ID and payment fraud, along with identity theft in connection with physical and logical access and financial transactions, including telephone, Internet payment and other financial and data related transactions all while protecting individual privacy.
SAFE HARBOR STATEMENT
Statements in this news release that relate to future plans, financial results or projections, events or performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. While these statements are made to convey to the public the Company's progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent the management's opinion. While management believes such representations to be true and accurate based on information available to the Company at this time, actual results may differ materially from those described.
For more information about e-Smart Technologies, please visit http://www.e-smart.com or contact Media Relations at 703-768-7477 or firstname.lastname@example.org
|SOURCE e-Smart Technologies, Inc.|
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