Clay Blehm was the founder ofDC Shoes
He was 58 year old retired California CPA that owned retail stores in S. CA. when he was asked by Ken Block and Damon Way for help with nothing more than an idea.Clay founded and built their idea into a $160 million dollar a year business, DC Shoes in exchange for a 1/3 ownership.
But, when DC Shoes was sold to Quicksilver ten years later, Ken Block,Damon Way and Quiksilver.. manipulated the deal and cheatedClayout of his ownership and out of his share of the multi-million dollar sale that Clay made happen!
It is my hopes that the news media will pick this story up and expose this American success story and how the founder and builder of the company Clay Blehm was robbed by the other two partners and Quiksilver! and bring justice to this 78 year old sweet man.Clay is living in poverty while the young men that he made RICH and FAMOUS are living a great life.
Belowis the story that will stand truebefore any court in America! Clayhas all of the documents !!!
Following a full year of Lies, Deceitful and Misleading recommendations and secret negotiations with the Internal Revenue Service by Attorney Clancy Wilson and his hired Attorney/CPA Thomas A. Reid, all of which was designed to intentionally engineer the transfer of Two and One Half Million
of Taxes, Penalties and Interest, already claimed by the IRS from their Client DC Shoes, instead to Clayton D. Blehm, also their Client.
Reid and Wilson entered into a formal agreement with the IRS to Accomplish their dastardly deed and Destroy the Seventy Year Old Senior Founder of DC Shoes, life and planned retirement after Ten Long Years of Directing DC Shoes from an idea of a couple of uneducated and inexperienced Skate Boarders to an extremely profitable Company doing 100 Million Dollars in annual sales and netting a sale price of just under 160 Million Dollars after only nine years of operations.
Irrefutable documentary evidence of an agreement with the IRS to settle the DC tax matters of 1998, 1999, and 2000 under IRS Section 3509 on July 15, 2003 and a further confirmation of said agreement signed and dated by Clancy Wilson on August 14, 2003. These negotiations and agreement were concealed from Clayton Blehm despite Blehm’s repeated inquiries of Clancy Wilson and other representatives of DC Shoes.
On August 20, 2003, Blehm and the DC Shoes Parties signed a settlement agreement whereby DC Shoes promised to pay the 2.5 Million Dollars of Taxes, Penalties and Interest which they all knew they would never pay because they had negotiated themselves out of responsibility to pay the IRS Claims over a month before the Settlement Agreement was signed.
The Settlement Agreement was thus a fraudulent inducement for Clayton Blehm to sell his one-third interest in DC Shoes for only 4.5 Million Dollars plus other considerations which were represented to Equal Nineteen Million Dollars by Brian Wright the Corporate Attorney of DC Shoes.
A few months later, Quicksilver agreed to buy 100% of DC Shoes for almost $160,000,000.00 which was split between Kenneth Block and Damon Way, the owners of the other Two Thirds ownership of DC Shoes.Blehm was cheated out of his 1/3 interest of $53,333,334.00.
Quiksilver was aware of the organized conspiracy to cheat Blehm, and joined in readily to finalize the deed. Quiksilver paid Blehm the 4.5 million Dollars due him on May 1, 2004 and closed the escrowwith Damon Way and Kenneth Block for just under 160 Million Dollars on the very same day. Commitments by Quiksilver in their sale agreement with Ken and Damon, which Blehm was required to approve included various inducements to Blehm such as a Six Million Dollar holdback to pay Blehm’s Employment Taxes and repeated passages reminding the reader of the DC Obligation to pay the Blehm Taxes.
All of the proof documenting the above conspiracy was known to all of the parties named as defendants. The bound books of exhibits received from Larry Campitielloprove his access and possession of the 3509 Agreement with the IRS which preceded the August 20, 2003 Settlement Agreement between Blehm and the DC parties. James Peterson directed the negotiations regarding the Blehm/DC Settlement Agreement as DC’s attorney and after the Agreement was signed, entered into an escrow agreement to hold Blehm’s DC stock, pending completion of the terms of the settlement agreement.
As DC’s attorney, he knew of the 3509 IRS Settlement, and of the subsequent assessment of the taxes, penalties and interest actually required to be paid by DC Shoes which was levied against DC Shoes on April 5, 2004, in the paltry amount of $250,000.00. This levy was awaited with interest by the DC Shoes parties and Quiksilver who had made receipt of the levy a prerequisite of closing the escrow.
Also of note to assure that Blehm did not discover the dirty deeds being perpetrated against him by the DC parties and their attorneys, the DC/Blehm August 20, 2003 escrow agreement with Higgs Fletcher & Mack, was amended after the Quiksilver purchase agreement was signed, whereby the original requirement for Blehm to authorize the release of his DC stock was dispensed with.
Thus, James Peterson, the DC Attorney and Blehm’s Escrow agent was free to transmit Blehm’s stock to Quiksilver, while he fully knew that DC would never pay the Blehm employment taxes required in the August 20, 2003 Settlement Agreement between DC and Blehm/FDC. His obvious conflict of interest should be enough to relieve him of his license to practice law. Blehm’s attempts to get an escrow closing statement out of him have proved futile. He apparently fears that something done at the close of escrow may serve to incriminate him.
One positive result to Blehm’s credit resulted from the Stipulation required in the August 20, 2003 Settlement Agreement, whereby Larry Campitiello and James Peterson, no doubt unintentionally, provided Blehm with this opportunity to re-open this sad state of greed and dishonesty, despite Larry Campitiello’s loss of Blehm’s right to appeal by allowing the time to expire to file a notice of intention to appeal.
Larry was constantly reminded of that deadline by Clayton Blehm and ignored the expiration of the time limit. Amazingly, the Stipulation filed by Peterson and Campitiello, immediately following the signing of the August 20, 2003 Settlement Agreement, provided for a preliminary dismissal of the Complaint
Clays Blehms Loss of participation in the Quiksilver Sale by the underhanded acts of Ken Block, Damon Way and Quicksilver was $53,333,334.00.
Clay is 78 years old and Ken Block and Damon Way become successful beyond their imagination. Then along with Quiksilver they intentionally and maliciously cheated Clay Blehm out of his ownership and earned share of DC company sale to Quiksilver! When you see the name or logo of DC Shoes or Quiksilver, you are looking at companies that are cold hearted thieves behind glitter.Watch for this story hitting headlines and news coming soon!
The complete list of crooks is listed below!!!
DC Shoes, A California Corporation;Kenneth Block, An Individual; Damon Way,An Individual; The Damon Way Revocable Trust U/A Dated May 20, 1999; Brian Wright, An Individual; Brian Selstrom, An Individual; Quiksilver, Inc., A California Corporation; Robert McKnight, An Individual;
Charles S. Exon, An Individual; Branton & Wilson, APC; Clancy Wilson, An Attorney At Law; Reid, Sahm, Isaacs & Schmelzlen, LLP; Thomas A. Reid, An Attorney At Law; Higgs Fletcher & Mack, LLP; James M. Peterson, An Attorney At Law; Richard Shaw, An Attorney At Law; McColloch & Campitiello, LLP; Lawrence G. Campitiello, An Attorney At Law; Michael T. McColloch, An Attorney At Law