THE EVERMEDIA GROUP PROVIDES UPDATE TO ONGOING EXA THE EVERMEDIA GROUP PROVIDES UPDATE TO ONGOING
EXAMINATION OF 2012 FINANCIAL STATEMENTS
Boston, MA – April 1, 2013- FOR IMMEDIATE RELEASE. The Evermedia Group,
Inc. (OTC: EVRM), had previously announced the removal of E. Richard Weitzel from
several director and officer positions within the Company.. The Board of Directors of
EVRM took this action after preliminary 2012 financial statements of its wholly-owned
subsidiary, Systems Technology Solutions, Inc. (“STS”), provided to the Board by Mr.
Weitzel as President of STS, disclosed bonuses of almost $890,000 that STS paid to its
employees during the fourth quarter. This amount represented over 83% of the available
cash assets of STS as of December 31, 2012 and the majority of the net income derived
from almost $3 million in revenues in 2012. The Company has not yet verified who were
the recipients of these bonuses. Patricia Waldroop, an employee of STS, recently stated to
a Company Director that the majority of the bonus money went to Richard Weitzel and
her. Ms. Waldroop resigned her position with STS on March 26, 2013.
“We discovered the fourth quarter bonuses during a review of the STS financial
statements.” said Jonathan Sym, CEO and Director of EVRM. . “ I was shocked when I
confirmed with STS personnel that the number was, indeed, correct. The Evermedia
Board immediately demanded that Mr. Weitzel account to us for these bonuses. After
almost a week of trying and failing to get any explanation, we were constrained to relieve
Mr. Weitzel of his duties.”
On March 12, 2013, the Board of Directors of EVRM removed Richard Weitzel as Co-
President and Chairman of EVRM and as President and Director of STS. It replaced Mr.
Weitzel with Jonathan Sym as the interim President and Director of STS until a
permanent replacement is found. “One of the largest concerns we have is for our
business, our clients, employees and our ability to sustain current operations.” said Mr.
Sym. The Company has retained legal counsel in San Antonio, TX (where STS is
located) to resolve this matter as quickly as possible.
“We are doing our best to gather information while continuing to run the business.” Said
Mr. Sym. We are making progress but it has been very difficult.”
For more information, please contact Briggs Smith at 813-438-5225.
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