SIL-FLO Lawsuit
  Main Site Home Site Maps Those involved Blog & Articles Scams & Frauds General Search this site  
 


And, old case that little documentation could be found, but enough combined with the memories of others, here was the situation in a nutshell.

John Ceparano owned Sil-Flo, Inc. In 1984 Ceparano sold to SFHC, Inc., a company setup by Paul Doughty and Rod Fancher, for approximately $2 million. 20% in cash and SFHC's gave a two-year promissory note to Ceparano for the remainder.

This was a standard deal where the stock in Sil-Flo, was to be held in escrow until SFHC paid the off the promissory note, within two years. The buyer, SFHC, would keep operating, Sil-Flo, and be responsible for all obligations to third parties, and not transfer the corporation's assets or stock without Ceparano's written consent.

SHFC did not pay the promissory note, ownership of Sil-Flo was returned to Ceparano, who found he only had a shell of a business.

Ceparano would sue claiming the SHFC group had learned the propriety process, stripped the equipment, to set up another company, and took the customers.

In 1988, the jury convicted Paul Doughty and Fancher. There were others named in the suit including Paul Doughty's father, Harold, but the jury let them off.

Then the case went to appeals where it would stay, until according to sources -- key people had passed away. This is similar to what happened in CO, where the Altus Gang stole the land owners money, leaving the land owners with nearly broke. Then used the money they stole to keep the land owners in court until they were went; and couldn't fight to keep the partnership out of bankruptcy. That was the goal, to put the partnership in bankruptcy. Once in bankruptcy the property goes to the lien holder, in this case the bank and subsidiaries. The victims can only standby helpless.


Copyright 2007 - 2019 ProwlingOwl.com
The Prowling Owl is dedicated to exposing public corruption, fraud, scams, embezzlement, and such. Any questioning the validity or accuracy of information on this Website should be provided with clear and consise specificity regarding information in question and evidence. The Prowling Owl will take appropriate action. Correcting any information demonstrate to be inaccurate or invalid.
Email: ProwlMaster@prowlingowl.com