false promises from Wolfgang Grabher that he had invented a new compression for serving content over the Internet.

After I invested in Grabher’s company, IPEX, the stock quickly fell from a high of $6 to less than a fraction of a penny today. IPEX was to mean IP Exchange, that they had a proprietary system to exchange voice traffic over the Internet leveraging Grabher’s RGB compression technology.

Further investigation was that all the information in the original Private Placement document was false. The IP switching system was a single standard computer running IP software that could be purchased anywhere and run by traders around the county. Thus the company’s gross profits never exceeded a few percentage points. The technology “smoke and mirror” never came to bear. I was told that this was actually some shareware software from Italy.

After only a few short months the company faltered and Grabher was required to give almost all of his stock back? Why? Obviously the company had some reason to ask for this, but it was hardly compensation for my losses.

On further investigation, we found that Grabher was convicted of fraud in Germany (see below) and sentenced to prison. How could an investment company like Ault Glazer sell me stock? This man and his investment firm should be punished. As far as I know, nothing has come of this.


Business number:
14 Cs 162 Js 3118/97
StA Stgt: 162 Js 3118/97

Court Stuttgart
On behalf of the people
Judgment in the criminal case

1. Klaus Rudiger Eglof
born on 18.04.1966 in Plochingen
Resident of St.-Georg Way 4, 78628 Rottweil--Bühlingen,
Unmarried businessman, nationality: German
Defence Lawyer:
RA Thomas Grossmann, 70372 Stuttgart

2. Wolfgang Grabher
Born on 02.04.1970 in Lustenau/Austria
Resident of Eduard-Steinle-Str. 14, 70619 Stuttgart
Unmarried businessman, nationality: Austrian
Defence Lawyer: RA Manfred Haas, 70372 Stuttgart

The court Stuttgart - criminal judge – adjudged in the meeting of 24.08.2001 and recognized:

Richterin Krack as a chairperson

Prosecutor Ritzert as a representative of prosecution department

Lawyer Grossmann no. 1
Lawyer Haas no. 2 – as a defense counsel

JS'in Müller as authenticating official of the branch office

The accused Wolfgang Grabher was condemned to a punishment by the court on 30.08.1999. He was charged an entire term of imprisonment for a period of 10 months.

The accused Klaus Eglof was condemned to a punishment by the court on 30.08.1999. He was charged an entire term of imprisonment for a period of 8 months.