VECO Appoints Convicted Securities Fraud Felon As New CEO

June 6, 2007

Barbados - Does the Board of Directors for scandal ridden VECO Corporation know that their newly-appointed Interim C.E.O. was convicted and sentenced to 15 years imprisonment for his leading role in a securities fraud that took millions of dollars from trusting investors?

For VECO Corp's Board of Directors, it is difficult to say what would be the best or worst answer to that question... "Uh-Oh, we didn't know that" or "Yes, we know but we don't care."

On Monday, June 4, 2007, VECO Corp. Chairwoman Tammy Kerrigan announced that Daniel E. Armel had taken over for disgraced company founder Bill Allen who resigned after pleading guilty to federal charges of extortion, bribery and conspiracy.

Before making their announcement, maybe VECO's Board of Directors should have looked at the 1966 Annual Report of the U.S. Securities and Exchange Commission, that tells of Daniel E. Armel's conviction and sentencing...

The conviction of Daniel E. Armel and others by a jury in the Southern District of Ohio culminated the Commission's investigation of the corporate "empire" of Armel. The fraudulent offer and sale of securities of the numerous corporations which made up the "empire" resulted in the loss of voer 9 million dollars to investors. Two of the defendants convicted, Donald Hathaway and Jack Singleton, were certified public accountants who actively assisted Armel in perpetuating this fraud. Armel, the chief architect of the fraudulent promotion, received a sentence of 15 years imprisonment.
... from the 1966 Annual Report of the U.S. Securities and Exchange Commission

Barbados Closely Watches The VECO Scandal

The continuing VECO scandal and ongoing FBI investigation is being watched closely by citizens of the Caribbean nation of Barbados where VECO and its subsidiaries are involved in government construction projects totaling hundreds of millions of dollars. The Attorney General of Barbados recently gave a press conference announcing that "any issues in relation to the United States has absolutely no connection to Barbados, or no connection at all to the construction of the prison"

Going even further in that interview, Barbados Attorney General Dale Marshall said "But I am satisfied that the company's relationship with Barbados and the work they are doing for the Government of Barbados has at all times been entirely above board, and at no time is there any hint of a scandal in relation to the contracting of that company for the work on the prison or other work that they have previously done for the Barbados Government."

Barbados Government Attempts To Defuse Questions About Relations Between VECO & Government Officials

Many Bajan citizens and local bloggers took issue with the apparent attempt by the Barbados Government to put "closure" on a scandal that is directly connected with Barbados - contrary to the Attorney General's statements. It is alleged that Peter Kott, one of the accused in the FBI investigation, was offered a position at the new Barbados prison that is presently under construction. That project is hundreds of millions of dollars over the originally announced cost and Barbados citizens are concerned that VECO's bribery techniques were used to obtain the prison contract and their previous major Barbados project, an oil terminal.

Barbados has no Conflict of Interest laws or Integrity Legislation for elected or appointed government officials. There is no Freedom of Information law that allows Barbados citizens or others to obtain information on government contracts. Recently there have been detailed allegations of corruption by government officials carried by that island's independent web-based media, which the Barbados government ignores with increasing difficulty as an election is expected for the winter of 2007-2008.

Most recently a lawsuit was filed by a Canadian corporation against Barbados Prime Minister Owen Arthur, Chief Justice Simmons, Attorney General Dale Marshall and many other prominent Barbados politicians and corporations. The lawsuit apparently alleges corruption and behind the scenes dealings surrounding lands and government actions in Barbados.

See entire story here Barbados Free Press