The nightmare summer for Starnet Communications International Inc. continues to linger. The company announced Monday that it has served former licensee Claude Levy with a defamation lawsuit. Today it announced that it has failed block a judge's decision to freeze two of the company's bank accounts.
Gambling Magazine, which is believed to be operated by Levy, posted both a statement of claim and a writ of summons pertaining to the $1 billion lawsuit against Starnet announced by Levy's company, Las Vegas Casinos, in July. Nowhere in the documents are there case numbers, nor are there any specifications as to how much is being asked for in damages. Attorneys for neither side were available for comment.
Then on Monday, Starnet announced that it has successfully served Levy in Belgium with a defamation lawsuit.
The company took another shot in the gut today when Justice Patrick Dohm made the decision to proceed with an ex parte order freezing two of the company's bank accounts in Vancouver totaling approximately $6.7 million.
Starnet will appeal the decision. "We believe that the facts in this case make it very difficult to interpret these funds as proceeds of crime" corporate counsel Chris Zacharias said. "We remain confident that careful consideration of the facts in this issue will result in a decision favorable to Starnet."
CEO Mark Dohlen insists the company is still financially strong. "We have not had, nor do we foresee having, problems meeting any of our financial obligations," Dohlen said. "Our operations are generating significant cash flow, nearly $4.5 million last quarter, and we are continuing to receive applications from licensees."
An audio interview with Mark Dohlen recorded September 16 is available for listening at:
https://www.igamingnews.com/desktopconferences.cfm.