CME gets on with hunt for investors
By Will Jackson
email@example.com THE Lismore men behind the tarnished company Cycclone Magnetic Engines Inc aren't letting legal questions about their company slow them down.
They're busy getting a new business venture up and running, and looking for more investors.
In the Supreme Court of Queensland, the Australian Securities and Investments Commission recently alleged that since March, 2005, CME's directors had raised more than $1.1 million from more than 120 investors, mostly from the Lismore area, and that, contrary to requirements under the Corporations Act, they had not issued a disclosure document.
It also alleged the directors, Steven Foster and Robert McClelland, of Lismore, and Michael Nugent, of the Gold Coast, had engaged in 'misleading and deceptive conduct' in relation to their product.
The trio claimed to be developing a commercially-viable, environmentally-friendly engine that could supply mechanical power through the use of magnets rather than fuel. Even though they have provided no reliable independent verification of their claims, no investors have yet complained.
The case is set to go to trial later this year. When The Northern Star visited Mr McClelland's office in downtown Lismore yesterday, his associates were busy with their new company, Endeavour Logistics, a 'wholly-owned subsidiary' of an American company called Roadships America Inc.
Endeavour Logistics claims to be helping develop a new technology that will revolutionise the shipping industry.
The office was littered with Roadships flyers, schematics and brochures.
According to its website, Endeavour Logistics' board of directors includes Mr Foster, Mr Nugent, Mr McClelland, Donald Greene of Casino, Patrick Greene of Koonorigan, Ernie Angelosanto of Goonellabah, and Les Tucker of Bass Hill.
The Northern Star understands members of the board have been actively looking for investors for the new company, saying everyone involved could expect big profits.
This has left the directors of another Australian company, Roadships Logistics, angry. The directors of that company, who used to be involved with CME before a dramatic falling-out, say they own the rights to the Roadships concept, not Endeavour Logistics.
They are considering taking legal action against Endeavour Logistics.
Mr Foster, Endeavour Logistics' communications director, yesterday declined to answer questions about CME.