Golf Inc. Tells Judge It?s ‘Out of Business’

John Dodge, the lawyer and former general counsel for Golf Entertainment Inc. of Springdale, told Washington County Circuit Judge Kim Smith on July 24 that the penny stock company is “out of business.”

“Your honor, one of the reasons the company went out of business was a stock-manipulation fraud,” Dodge told the judge.

Golf, the embattled former Springdale broadcasting company, has alleged a mass conspiracy by several unrelated groups to manipulate its stock price for more than a year.

Irregularities in the way Golf issued its stock prompted the Arkansas Securities Department to issue a cease-and-desist order to stop the sale or purchase of Golf’s stock in Arkansas.

As a result, Golf has counterattacked by suing everyone from its landlord to the state securities department. Mel Robinson, a trustee of Golf’s largest shareholder, an entity called the Genesis Trust, also sued Arkansas Business Publishing Group, which owns the Northwest Arkansas Business Journal, claiming he was libeled by articles describing questionable business dealings by Golf and Genesis Trust.

The reports, based primarily on public records, followed a six-month review of Golf and found what appeared to be unusual business practices.

Dodge and Jim Bolt, chief operating officer of Golf, are among the defendants in a federal lawsuit filed by Arkansas Business Limited Partnership, which operates Arkansas Business Publishing Group.

Smith gave Dodge until Aug. 8 to register Golf with the Secretary of State’s office to do business in Arkansas or a lawsuit Golf has against its former landlord will likely be thrown out of court.

Arkansas law says a company can’t “maintain a proceeding” in court unless it is registered to do business in the state. To register, however, Golf must have a certificate of good standing from Delaware, where the company was initially incorporated, said Angela Berkowitz, attorney for Cypress Investments Inc., which is suing and being sued by Golf.

Cypress, Golf’s former landlord at 1008 S. Clayton St. in Springdale, says Golf owes more than $10,000 for back rent and attorney’s fees.

Golf countersued, claiming Cypress crippled its business by placing a for-lease sign outside the building while Golf was still there and eventually evicting Golf from the property.

Golf alleges Cypress, too, was trying to manipulate Golf’s stock price. Golf is suing Cypress for $750,000 for “market capitalization losses,” $6,000 for “interference with business opportunities,” $3,500 for loss of capital improvements, and unspecified punitive damages.

Cypress filed an eviction complaint against Golf on Aug. 21, 2002. Cypress consists of Robin and Tom Lundstrum of Springdale.