Fair enough question. Understand that you are asking me a question on operations, of which I am not a part. It was my understanding that residuals (profit-sharing) were supposed to be paid. I have not seen any such payments in the filings. Do not take this as gospel - I could be wrong.

I wrote a letter to Luke Ford explaining that the split with Bizarre was very difficult for all the employees here at JKP. What went on behind the scenes- none of us really know. There were all kinds of crazy things going on and rumours floating and we had no idea what was the real story. We were friend here- the employees- so it was like we had just gained a new family, then BOOM- a divorce just when you were getting to know each other.
My one and only concern was people saying that Keith or Bizarre was out to get us and fuck us over, etc. I was not defending or propping up anyone- just the fact of the matter was nobody from Bizarre set Jill's house on fire and was 'sending a message." All that did was start more gossip... that is not what we needed to hear. I know everyone loves dirt- I love it just as much as the next guy...but we are just trying to get back to business. Thanks.

Frankly, I couldn't care less about correcting misstated facts. There are some people in life who get bugs up their asses and there's nothing that can be said to them to change their perceptions or opinions, which is cool by me. Besides, fact is always more boring than fiction to certain types of "story-chasers". I would imagine that is especially true in the porn world. This board is entertaining to me and that's why I am on it. I like the discussions and debate. Being that two pricipals of the thread are a Chicago lawyer and Harvard boy, I suspect this could get interesting.

Easiest thing I can do is stop, and the plot will "thin."

I have not communicated with Hoover in any way, by the way.

I'm not sure my imagination stretches as far as Luke's and burning down the house of a woman who doesn't own the company or make decisions seemed a little fantastical as much as i love putting on ollie stone-airs. i don't think that was ever assumed to be true or likely--the sopranos left me sick of hyperviolent italians anyhow.

reality's just as interesting sometimes.....maybe the thinning plot responds to rogaine.

but first, while i've got a real-live jkp guy here-what's the story on residuals? i'm not going to lose sleep about missed checks for first-anals 20 years later, but i've seen older references to it in a "girl-owned, girl power" vain but it didn't leap out at me as a signifigant part of your filings.

Thanks for coming back, Avi. So long as you're here there's not much point to copying everything over to email.

Quote:

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We introduced the management team of the club to JKP. JKP entered into a Letter of Intent to acquire the club.

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Let me stop you for a second here. JKP seems to be very unfortunate in their business dealings, particularly when it comes to letters of intent (which are then trumpeted to the Adult industry and PRNewswire and then never heard about again). Correct me if I'm wrong, but the first appearance of this deus ex machina was in regard to the all-JKP cable channel. I'm told that this is no longer more than an idea, and a fairly vague one. Next, we have another letter of intent, this one for the nightclub--also trumpeted far and wide--which also turns out to be vapor, and it turns out it was JKP itself which pulled out of the deal for unknown reasons (Scott...?)

I believe the "clothing deal" (I presume you know what I'm talking about) was also based around a letter of intent. Now, I'm just a solicitor--Chicago firm, yes, University of Chicago School of Law, yes, but certainly not a friend of D'Amato's--but do so many deals so frequently turn out so dismal in the penny stock world? It seems that the only JKP announcement of business expansion which didn't bust, now that Keith Gordon has taken his toys and gone home and left that lonesome warehouse half-empty, is the deal to license content to a television station in Romania. I'll let that speak for itself.

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For putting the deal together and for supervising management here in NY, we were getting a small piece of the deal. JKP later decided to walk away before final execution, so instead we (meaning Maximum) decided to assume responsibility for whatever monies where forwarded (minimal - about $108,000) and took possession ourselves. If you want to know why JKP walked, ask the company themselves for the answer. It would not be fair for me to represent them in this regard.

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That's completely understandable. However, I thought there was a bit more to this deal than that. From what I understand, you were to be loaned $500,000 for the JKP nightclub deal (though as this happened around the time JKP went public, I would expect that loan was to some degree on paper and no actual cash changed hands). When the deal went south, you entered some sort of closing agreement which tied up some loose ends, including Maximum's liability (I presume from your consulting contract) for the lawsuit filed against IDC Technologies, which JKP inherited. Is this an accurate narrative?

Quote:

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I believe you should look deeper into the financials of the filings for the answer. Since you are an attorney this should be simple for you. I haven't looked lately but I believe most are attributable to "non-cash" items, such as the preferred stock and warrant issuances at below market. The vast majority of those losses are not related to cash flow loss, which is where I think you are heading with this. Surely, you know the difference.

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That makes up a fair portion, but not even close to all the personal debt hurled into the black hole of JKP (pre-public incarnation) has been exchanged for stock. Bob made sure of that.

My question is, where is this capital intended to go except to pay back those who won't settle for stock options? According to the prospectus, JKP is still operating at a loss, has a shooting schedule almost precisely the same as the pre-public incarnation of JKP, and every other deal has fallen to pieces. Add that with three executives who together claim in excess of $1 million annually by themselves and zero noticable expansion for this orgy of swapping and selling and funding which you say took place. You certainly didn't invest in a company which was losing money to see it remain stationary.

you guys are way over my head with all of this, altho i find if quite interesting. i was wondering, if JKP factors their receivables--which i understand they do--does it have any relevance? i don't, btw, know who the factor is.

My pleasure, counselor. Respectfully, I am shocked that an attorney so callously overlooks or misrepresents fact for the benefit of a skewed analysis. You have apologized once for your misstatements/misrepresentations already. Be a man, and apologize yet once more for your misrepresentation about a press release that you think I issued. If in fact it is your intention to state your case in this forum, based on fact only, I invite you to call PR Newswire and ask for the source of the PR and to report your findings here, which is only fair (that is if the word "SOURCE: JKP" on the release itself isn't good enough for you). Go ahead - I will accept your apology in advance. I have a feeling that you will be apologizing many more times for callous interpretations in the near future. By the way, I am sure that U. Chicago taught you the defense for slander/defamation, right? Truth is not defamatory. That is something you have already admitted on your own, in this very forum, that you are incapable of delivering. Feel free to slam JKP all you want. Unlike JKP, Maximum Ventures will not be the subject of your baseless rants without recourse. If you want to do a search on litigations of which I have been involved, you will clearly understand that I don't make threats. I just do.

As far as JKP is concerned, because your narrative is inaccurate (go ahead and apologize again):

1. I refer you to a settlement agreement signed in 6/04 that is attached as an exhibit to amended SB-2/A filing with the Securities and Exchange Commission. That settlement TERMINATED relations between Maximum Ventures and Jill Kelly Productions. If I was indeed a "champion of Jill Kelly Productions at the time" do you think these mutual terminations would have taken place?

2. Prior to that settlement agreement, I like you, questioned the integrity of JKP as to their follow up of public releases. In fact, I fucking exploded which is what ultimately led to pt. 3 below. Again, I can't go into the reasons as to why they walked away from both the cable channel and the club deal, but I was forced to make a decision: let Jill Kelly walk away from the money they expended on both LOIs and take a ridiculous and unnecessary loss, or assume the liabilities myself. That is what I did. Again, if you want to play investigator I suggest you call JKP yourself for their position, and CAREFULLY examine SEC filings, instead of drawing conclusions based on your own biases.

3. A new company was formed for possession of the above properties. Jill Kelly was to provide a 2-year loan for $1 mil to this co, $600K of which was delivered out of the $3 million financing I referenced in a prior post, $150K of which held back for redemption of the aforementioned LOI expenditures. At least, JKP could still sell product through those channels (that was the intent) and have an ownership interest in that entity moving forward. This was all part of a Master Agreement dated 3/04, approx 7 months after the reverse merger. You of course would think this took place at the time of the merger, because again, you draw conclusions based on your own concoctions, without verification of dox filed with the SEC.

Incidentally, as part of the global settlement I offered to secure the note from JKP to newco with a position of about 3,000,000 shares of my personal stock. At my option, I could pay the note and redeem the shares or I could purposely default, assume an asset from newco (the note) and relinquish the shares. I"m sure you think you're a bright boy - which one do you think I opted for, and why?

4. As far liability inherited: I paid every last cent in defending a lawsuit filed by a convicted securities felon against IDCE for a loan he made years prior (much less a loan to a company for which his conviction was based!), that is until my settlement agreement. As part of the settlement agreement, I was released from any further indemnification. JKP decided to settle this for an amount that made my head spin, but post-settlement that was none of my business as it related to that lawsuit. AGAIN, all this is clear in the filings.

5. I know nothing of clothing lines or other deals or residuals or who is fucking who, since I have had no communication with the company since June, 2004. This is changing as we speak.

6. As far as the financials are concerned, I respectfully request that you make your apology for yet another admitted misrepresentation. Go ahead and repeat after me: "I, ___ ______, lied again and made a mistake about the $9 million "loss". I am sorry for another misrepresentation." Have some honor, and be a man.

As far as exchanges of debt for stock, a conversion of debt to equity takes debt OFF the books. Or did they not teach that to you in Accounting 101? No one forces conversions on those who choose not to do so. While some people did convert debt to equity, many did not. To paint a picture of armageddon because certain people wanted to take risk on potential upside is not only irresponsible, but unfair. People and companies across broad spectrums convert certain financial instruments into others on a regular basis, in the course of regular business. In the event debt is converted to equity at below market, the difference is calculated as a loss to P&L (non-cash item) which does not affect cash flow. Believe me when I tell you that I have no allegiance to JKP whatsoever at this point and have no reason whatsoever to defend them, but to sit there and say "Bob made sure of that" is a conclusion you have no basis for drawing.

As to your question of where is all the capital intended on going? Look at the SB-2, which has as an addendum the Private Placement Memorandum. It's Use of Proceeds is in it. Compare that to subsequent addendums to the filing and draw your conclusions. I'm eager to see what you come up with.

Let me bottom line it all for you Smiling Arab: if I had to do it all over again, I wouldn't - I would choose someone else. I will leave it that. I am looking for more opportunities in the space. If you have ideas, I am all ears.

Yes.

You apologized for the misinterpretation re my sale of a third company's stock; not the press release. Now that you apologized for this second misrepresentation and a "jump to conclusions", consider it accepted. I ask that you don't jump to any more conclusions as it concerns me. We're straight.

I'm not sure I agree with your analysis of "content collecting". I have heard this before, but none of it is proven, at least not to me. I have no doubt Flynt is doing well with his global strategy, but none of this is verifiable since his company is not transparent. Isn't it true that RCA employees have vanished and is done? Even so, this would not be a basis for any conclusions.

I appreciate your retractions/apologies.

Let's continue the dialogue.

When we settle arguments around here, we usually slice our wrists open and drink blood to seal it. What's a minor case of hepatitis C between friends?

The problem with the "Flynt model" is that no one else but Larry Flynt is in a position to execute it. Flynt is already involved in distribution and wholesaling; the relationships VCA had with GVA and other distributors were probably hindering the new ownership more than helping. As for the walk-out by staff, it did happen but I'm not sure who they were and what they did, or if they weren't all going to be replaced by more LFP loyalists down the line anyway (people rarely give up security for principles, in my experience, so the lack of security would make that much much easier).

VCA's product lines are certainly nothing that can't be copied in an industry that loves driving a good concept into the ground. All I can figure out is that the real value was in the catalog, in which case VCA functioning as an active movie studio (with the staff included) is sort of irrelevant.

But again, since he already owns the distribution channels, it was unprecedented. Unless someone can get their hand in the pockets of retailers, I don't see another LFP strategy coming down the pipe. (Sin City owns or has a piece of GVA, don't they?)

For years everyone's been talking about VOD, but do any of the "old guard" make serious money on it? A number of niche websites have moved into selling their product on DVD, I'm curious how it's worked the other way around. If it functions as just another website plug-in to license to operators, it seems like it'd be a very small piece of the $30 sign-up.

Dammit, is there something wrong with the forum software? I keep getting MySQL errors.

an obligatory the end is near bump for dis one.

this place is so smart yet so stupid, how long till JKP folds up the tents and skips town before sunrise?

done and done...and i mean done.

I see Bob is out. JIll split, ....i think Tyra is in charge there now by default

(Nikki Benz is in canada on vacation & I don't think jenna haze is there anymore...)

Well, that was fast.

Nice quote by Scott Hoover. Just up and left, eh Scott? Didn't it seem strange to you that each of the corporate officers--the CFO Ron Stone, the President Adrianne Moore and the CEO Mr. Burns--all left, one by one, a few weeks apart? Seriously, who the fuck is this monkey, and how has someone so incredibly naive wound up in the most degenerate business this side of live organ donation?

So how much do you think the assets are worth? Probably not 20% of the valuation of the shares they've issued is my guess.

From the SB/2, they kept about 30k in cash on hand to meet operating expenses. I suspect that's enough to meet one week's payroll if it wasn't depleted already.

Who's signing the checks? Usually it's the CFO, then the treasurer on the board. Bob probably could, but he and Jill and the CFO are gone. Daniel Ice, I'd guess.

What the hell are these people doing there? I don't get it. In the last month, every single corporate officer (and leading shareholder, natch) has left. I'd be walking out with a photocopier stuffed in my briefcase.

Moreover, who can sell assets? They've made quite a few videos in the last few years, and the catalog must be worth something, maybe enough to make the last payroll. But with the ringleaders gone is there anyone left who can legally sign papers to let Pleasure buy the catalog?

As for those sticking around: many years ago a friend of mine was one those who stuck around too long. One day several men in suits walked in, but instead of being investors who might make his paycheck they said "We're from the IRS and we'd like to talk to you..."

I dont know but at this point its probably not worth more than a buck 75 a unit.

enlighten me

Yeah, Jeff, you're about the only one that has hard info on what their catalog would be worth. From the SB/2, they claim to have about 200, probably 250 videos by now. Considering they weren't best-sellers when they were new, how much would that be worth?

You ought to buy it just to put Mrs. Wankus on the cover of Gag Factor.

@ erotica l.a. 2004 they were selling dvds @ $3 to people.

citing an over print or some such....i was hoping they would be @ this years...i could have bought the catalog outright.

Even if JKP's warehouse inventory was worth $1.75 per unit, you'd never pay anywhere near that much. There's way too much risk. You'd have to "discount" your offer a lot.

Remember that the company is either dead, or you have to assume that. Whatever money you hand over will be *gone* instantly, never to be seen again - like handing a cokehead a $100 bill - and can never be recovered if there's a problem.

For example, when you drop by JKP's warehouse some dude points at a cardboard box and says "there's a hundred pieces of Blown-Out Butts #37". Sounds good - you can sell that. But what if it's really got "Pamela Peaks explains Porn Makeup"?

Or a couple of bricks in packing peanuts? Maybe with real units on top to make it look legit?

Or maybe there's no DVDs in the shells and Joe figured someone would be dumb enough to buy anyway.

And what if Friedland reappears a few weeks later and claims what you bought is stolen property?

There's a lot of risk for vultures feeding off a carcass. There are companies that specialize in doing just this, and they have to substantially discount their offers just to keep up with the fraud and garbage.

I was a manager at a county seat that folded and liquidators came in and it was not pretty. wow that time in my life sucked. and I got fucked out of my 3k bonus and a "package" the liquidators promised. The liquidators lied to me and my staff, they would say anything to keep us working for them and not taking other job offers till the day they decided to pull the gate and consolodate. (I began managing the Ann Taylor at the same time)
God being a whore is a good life. When I think of the hours and Lies and problems in *that* business

You do not have the facts. Ron Stone was fired by Jill- he did not leave on his own accord. Dan Ice is in charge now of the day to day operations of JKP. Jill resigned as president and as a board member, and has nothing to do with the company. Bob disappeared-literally. Nobody knows where he is: he was in the office one day, then gone. He did leave us in a lurch- sorry if you do not like my choice of words. Jenna's contract expired at the end of March and she did not want to stay on without Jill at the company. Tyra and Nikki are still under contract with us. I know that all the girls will be fine in whatever choices they make. These are the facts as I know them today.

Again, not true. We sold VHS, not DVD at discount prices cause we no longer carry them and wanted to get rid of the excess inventory.

Scott Hoover, you're a complete tool.

I just told you that I didn't understand how someone so naive could work in such a degenerate, cut-throat industry. I said that all three of your corporate officers had left, one after another. You just reiterated every word I said, with the added info that one of those officers was fired (and the difference is?), by the namesake of the company who has nothing to do with it anymore.

You remember when you wrote that profanity-laced tirade, screaching that JKP was only judged suspiciously "because it's a woman owned company"? You were full of shit then and you're full of it now.

On the other hand, you did clarify something for me. Namely: who is Dan Ice's padrone, el hombre? He's got to have one. Who is he running the company for? Which distributor? He's fronting for someone (and I don't mean that in an underhanded way. JKP has obviously been taken over by someone on the sly. It's the only thing that makes sense.)

But back to you, Scott. When your CEO, who owns more than 30% of the company (and Bob owns more than that) "vanishes" and you "don't know where he is," get the fuck out. What, are you going to wait for the black and whites to show up at the door, detain you in a tiny room and go up your ass with a paper shredder? You're working for a classic fucked company in the classic fucked industry. Anyone else in any other industry would have come to work with a refrigerator box and walked out with 50 reams of paper and seventeen boxes of Bic pens by now.

someone's paying scotty, that's obvious. the PR-guy should be distancing himself and looking for a new job unless he knows he's going to be getting a signed check from someone. nobody's that stupid. so who's signing scott's checks these day?

Okay, so now start attacking the employees? Great. You are just great. Thanks so much. It makes a difficult situation so much better for all of us. I was giving you some facts of what I know, not attacking anyone for expressing their opinion.

so you're essentially showing up for work in the hopes that that "someone might pay me, it's very unlikely and i'm not sure who, but someone might pay me"?

talking about 2257 is worse than aids, but the timing doesn't lend itself to being ignoredl i've almost gotta wonder what role the 2257 stuff played, do you think they were going to be enough of a burden to a company that was staying alive not releasing movies but releasing their contract stars that he just decided to fold up early rather than have to deal with paying money and having coppers start looking at his books?

only thing ive noticed is that alot of dvd boxcovers r missing from some online shops that i had just checked a week ago.

Up to now I have avoided this thread like a 330 lb 31 yr old mexican chick in a toyota-pickup-sized electric wheelchair. I saw wayyyyyyy too much of this scenario from 1999 to '02 in various individual companies, and an industry as whole (funny Arab mentioned E-toys...I shuddered at that...) So many young people, otherwise bright, not being able to take their eyes off the rising water level of whatever boat they were in instead of looking to shore and gauging the distance.

Scott, bail. Just fucking bail. Slam a resume together, post it everywhere you can, make a thousand copies and start looking/calling/begging.

http://www.avn.com/index.php?Primary_Navigation=Articles&Action=View_Article&Content_ID=231936

AVN: JKP COO Dan Ice Discusses Changes

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“Our short-term plan is to continue to sell and distribute our product,” Ice said.

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“Is there any way to make payroll other than generate revenue?”

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Ice continued, “I think there is a lot of interesting, cutting edge things we can do out there.”

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Like, profitability?

Quote:

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We’re going to have our ear a lot closer to the ground than in the past.

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Wait, do I hear a police siren?

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Ice, who is from Missouri, said he first became involved with JKP as an investor.

“I invested in the company in its public offering 18 to 20 months ago,” he said. “I thought it was a great company with a great future.

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You know it's a bad investment when you wake up one morning to find you're the owner of a publicly listed company worth $0.06 per share...

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Ice suggested that Friedland’s health contributed to his decision to leave.

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It's preventative treatment for BH's health. As in, running now is a good idea since it wold be bad for his health if his mob backers caught him...

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Friedland has not been available for comment since his departure.

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That quote may be from the SEC.

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Bob hasn’t come into the office on a daily basis for a long time.

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“We didn't realize he'd left 'til the paychecks started bouncing.”

Quote:

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“We’re keeping all options open,” he said. “We’ll make our plans known as they firm up. …

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“If you've got an old business plan from the dot-bomb era, please all 1-800-HEL-PJKP (before the phones get disconnected on Friday).”

Nikki Benz just walked

She left JKP today. She Called me to let me know what's up

Read it all on my site.

Click Here

So, if Nikki is under contract with JKP how exactly does she plan on freelancing????

I'm under the impression that her contract would prohibit her from performing elsewhere. Am I wrong?

she.is.not.with.jkp.anymore.

did you read my what i wrote on my site at all?

""As of today I am no longer with Jill Kelly Productions!"."

wait, here ya go:

"As of today I am no longer with Jill Kelly Productions!".

Do you know if she is still legally under contract with x-JKP? Fuck, you can walk out on your contract to make car payments too, that doesn't mean the car payments disappear.

I think you had it right the first time when you called JK's new company 'Bad Intentions'. It goes like this... (all allegedly of course) rob old company blind, split, use remaining proceeds to start new company, lure talent to new company, old company files civil complaint, SEC gets involved...

Ah, who fuckin' cares. The courts will sort it out anyway. In the mean time I wouldn't advise investing any funds in the new venture.

bump-so scott, it's been a few weeks--who's been signing your checks or are you long gone?

bob's fucked being the ceo who put his name on and signed shit, i feel for dan ice. well, not really.

So all of you may have heard that yes, I have finally resigned from JKP. I was planning to leave along time ago, just had to have my ducks in a row. I could not exactly come on here and say negative things about the hand that was feeding me- I am sure you can understand that. I am not as much of a "tool" as you think.

but if you did.....

Hell no- I ran straight to the bank. No stock for me, thank you.

I heard you got fired.