IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF OKLAHOMA
SECURITIES AND EXCHANGE COMMISSION, )
)
Plaintiff, )
)
v. ) Case No. CIV-00-1375-R
)
BROADBAND WIRELESS INTERNATIONAL )
CORPORATION, a Nevada Corporation; )
BROADCOM WIRELESS COMMUNICATIONS )
CORPORATION, an Oklahoma Corporation; )
IVAN W. WEBB, and )
DONALD L. KNIGHT, )
)
Defendants, )
)
and )
)
BLACK GIANT RESOURCES CORPORATION, )
an Oklahoma Corporation; )
BROADBAND WIRELESS COMMUNICATIONS )
CORPORATION, an Oklahoma Corporation; )
MEDSCAN TECHNOLOGIES, INC., an Oklahoma )
Corporation; and )
KIMBERLY KNIGHT, )
)
Relief Defendants. )
SECOND PRELIMINARY REPORT OF TEMPORARY RECEIVER
Peter B. Bradford, Temporary Receiver, ("TR") was appointed by
this Court on August 11, 2000, pursuant to this Court's Order of that
date and was directed to take the actions described in the Order with
respect to Defendants Broadband Wireless International Corporation,
Broadcom Wireless Communications Corporation, and Relief Defendants
Black Giant Resources Corporation, Broadband Wireless Communications
Corporation and Medscan Technologies, Inc. A Preliminary Report of
Temporary Receiver was filed herein on September 15, 2000. This report
will focus on activities of TR since that date.
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FINANCIAL INFORMATION
Pursuant to the August 11, 2000 Order Appointing the Temporary
Receiver, TR and his legal counsel have taken custody and control of
Receivership Assets. TR has received cash or checks totaling
$411,802.05. Creditors of BBAN and the TR and Counsel were paid
$66,530.66 pursuant to this Court's Order of October 16, 2000.
The Receiver established a bank account at MidFirst Bank, Oklahoma
City on August 14, 2000, into which all receipts by TR have been
deposited and from which payments authorized by this Court have been
made. The non-interest bearing checking account has a balance of
$94,772.85 and the money market account balance is $250,498.54, for a
total of $345,271.39 as of October 31, 2000.
BUSINESS ACTIVITIES OF THE RECEIVER
The oil properties of BBAN were valued at $10,000.00 as reported
in the Preliminary Report of Temporary Receiver dated September 15,
2000. Those properties were sold for $10,000.00 cash on September 15,
2000. One of the Defendants described in the Preliminary Report of
Temporary Receiver has settled a claim by BBAN on his Promissory Note
by payment of $100,000.00 in cash. The other lawsuits are still
pending in this Court and it is anticipated that those will be settled
or set for hearing before the end of this year. TR anticipates filing
several more actions against Shareholders of BBAN who received stock
without providing adequate consideration or who obtained profits from
the sale of BBAN stock which belonged to the company.
On October 16, 2000 this Court approved the settlement of a
lawsuit by BBAN against Aaro Environmental and others. Pursuant to
that Order, BBAN has received $241,000.00 in cash and will receive an
additional $159,000.00 in cash by no later than December 16, 2000. The
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full details of the settlement and the entire consideration received by
BBAN are described in the Order Approving Settlement filed herein on
October 17, 2000. The value of the settlement to BBAN exceeds One
Million Dollars.
TR is negotiating with other persons who have liability to BBAN
and expects to achieve settlements of these matters within the next
thirty days. TR has seized and sold an automobile purchased for a
Shareholder with funds belonging to BBAN and has placed a lien on real
estate, the proceeds of which will be paid to BBAN in the amount of
$188,000.00 once the property is sold.
TR estimates that proceeds of settlements and lawsuits against
third persons as described above could exceed $1,000,000.00.
FUTURE ACTIVITIES
In order to evaluate possible business combinations with one or
more other entities, which could establish business operations
producing revenues and earnings for BBAN, TR has appointed an advisory
committee of interested shareholders of BBAN to evaluate those
proposals. That committee is composed of Albie Schaffer of Sugarland,
Texas, Dr. Ron Tripp of Norman, Oklahoma, Michael Holbrook of Edmond,
Oklahoma and William Higgins of Claremore, Oklahoma. The advisory
committee has met with several third-party entities which are
interested in a business combination with BBAN. The advisory committee
and TR will be meeting with these third-parties within the next few
weeks and if a viable business deal is forthcoming TR will present a
proposed plan to the Court for consideration and approval.
Because any such business plan would have to take into account a
myriad of factors, it is unlikely that the plan can be approved before
the end of this year.
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TR and counsel continue to respond to inquiries from shareholders,
creditors, counsel for litigants, the advisory committee, accounting
and technical advisors in an effort to create some value for Broadband
shareholders.
THE OTHER RECEIVERSHIP DEFENDANTS AND RELIEF DEFENDANTS
Co-Defendant Don Knight is still absent from the jurisdiction and
is believed to be in Costa Rica; the Lincoln Navigator automobile
described in the first report of Receiver has been recovered and turned
back to Ford Motor Credit Company, the leasing agent, without further
exposure to the Receivership Defendants. The Securities and Exchange
Commission has provided to the TR documents and records concerning
certain activities of the Defendants in this action which will be of
assistance to the Receivership in pursuing third-parties. TR
anticipates the filing of additional lawsuits and seizing additional
properties located throughout the United States which are believed to
be assets belonging to BBAN and its shareholders rather than to the
persons who currently have title to those properties.
RECOMMENDATION
TR recommends that the Receivership continue until December 31,
2000 to permit the additional recovery of assets, consideration of
business plans and activities. Now that the Receivership has
substantial assets to support its ongoing activities and for use as
capital in future business operations, TR requests that the Court give
the Receivership some additional time to achieve its goals. It is
anticipated that another report will be submitted to the Court on or
before December 31, 2000.
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Dated this 1st day of November, 2000.
/s/ Peter B. Bradford
________________________________________
Conner & Winters, P.C.
One Leadership Square
211 N. Robinson, Ste. 1750
Oklahoma City, Oklahoma 73102
(405) 272-5711
(405) 232-2695 Facsimile
TEMPORARY RECEIVER FOR BROADBAND WIRELESS
INTERNATIONAL CORPORATION, ET AL.
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CERTIFICATE OF SERVICE
On this 1st day of November, 2000, a true and correct copy of the
above and foregoing document was mailed to the following counsel of
record:
Harold R. Loftin, Jr.
801 Cherry Street, Suite 1900
Fort Worth, Texas 76102
Richard Hewitt
104 Houston Street, Ste. D
Roanoke, Texas 76262
/s/ Peter B. Bradford
__________________________________
Peter B. Bradford
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