BEAUMONT, Texas, April 13 /PRNewswire-FirstCall/ -- The Board of Directors of FIRSTPLUS Financial Group, Inc. ("Company") (Pink Sheets: FPFX) announced the Company has been in regular communication with the Department of Justice as part of its continuing cooperation with the Department's ongoing criminal investigation into various transactions in 2007 that depleted Company assets.
The Company's legal counsel, Patton Boggs, a national law firm representing the Company, recently received written notification from the Department of Justice that two unnamed members of its Board Members are targets in the ongoing criminal investigation. The Company has been instructed that the remaining Members of the Board of Directors are not targets.
In connection with the most recent meeting of the Board of Directors, Company legal counsel polled all Board Members to determine which had received a target letter from the Department of Justice. All Board Members, except for John Maxwell and William Handley, unequivocally denied receiving any such letter and have provided written confirmation to this effect to the Company. When asked at the recent Board meeting, John Maxwell stated legal counsel instructed him "not to answer any such question" and William Handley stated he was "not aware" of any such correspondence.
In recent correspondence by John Maxwell to certain shareholders via an Internet forum, he confirmed that he and William Handley had received target letters from the Department of Justice. The Maxwell letter released on the Internet contains many misleading characterizations about the Company and the Department of Justice inquiry.
The Company cautions against any trading of the Company stock based upon any unauthorized disclosures or representations by John Maxwell and/or William Handley.
Messrs. Handley and Maxwell have not been re-nominated to serve on the Board of Directors which will be elected at the next shareholders meeting. The Company intends to hold that shareholders meeting in the very near future, as soon as SEC filings and financial statements are updated.
The Company has also reconstituted an Audit Committee and has retained Michael C. Eberhardt as counsel to the Committee. Mr. Eberhardt is a former federal prosecutor handling organized crime and corruption cases, and served in senior management positions in Inspector General Offices at two federal agencies. He has substantial investigative and compliance experience through his Inspector General positions and his affiliation with two large Washington, D.C. law firms where he assisted in the implementation of codes of ethics and compliance programs for large government contractors. He has also served as General Counsel and Secretary to a Fortune 500 Company where he served on the corporate Ethics Board. Mr. Eberhardt is assisting the Audit Committee in updating the FIRSTPLUS code of ethics and strengthening internal controls, as well as aiding the Audit Committee and the Company in providing all necessary assistance to the Department of Justice and its current investigation.
President and Chairman, Robert O'Neal stated, "The reconstitution of the Audit Committee and its retention of Mike Eberhardt is an important step as we navigate towards a shareholder meeting. Mr. Eberhardt's past experience will be an invaluable asset to the Audit Committee's activities."
FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements within the meaning of the "safe harbor" provisions under Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. The Company uses forward-looking statements in its description of its plans and objectives for future operations and assumptions underlying these plans and objectives, as well as in its expectations, assumptions, estimates and projections about the Company's business and industry. These forward-looking statements involve risks and uncertainties. The Company's actual results could differ materially from those anticipated in such forward-looking statements as a result of certain factors as more fully described in this report.
Forward-looking terminology includes the words "may," "expects," "believes," "anticipates," "intends," "projects" or similar terms, variations of such terms or the negative of such terms. These forward-looking statements are based upon the Company's current expectations and are subject to factors and uncertainties which could cause actual results to differ materially from those described in such forward-looking statements. The Company expressly disclaims any obligation.
FIRSTPLUS Financial Group, Inc.
CONTACT: Todd Hickman, +1-409-893-5232, press@brandmktgmr.com, for
FIRSTPLUS Financial Group, Inc.
