The original founders of Cheyenne Mountain Entertainment are currently going through one of the most common stories in corporate America: Hostile take over, A.K.A. corporate theft. The current Cheyenne Mountain Entertainment president Tim Jenson who has experience in corporate hostile take overs has been setting the ground work for months which includes a smear campaign on various founders and board of directors. It is almost identical to the corporate take over performed by Tim Jenson at Merisel in 2007. Tim Jenson was unsuccessful in his take over bid which resulted in charges by the SEC (http://www.sec.gov/litigation/litreleases/2008/lr20478.htm). Tim Jenson transferred Merisel assets and private investments to TDH Enterprises (Owned by Tim Jenson). Tim Jenson settled with the SEC by consenting to the entry of a Final Judgment that will bar him from serving as an officer or director of a public company and order him to pay a $275, 000 civil penalty.

It appears that Tim Jenson has not learned his lesson from the days at Merisel and TDH Enterprises, and only perfected his techniques. Tim Jenson, planned his corporate take over of Cheyenne Mountain Entertainment and executed his plan to transfer assets to his new company Knowledge Relay the day before Cheyenne Mountain Entertainment released it's first product: Stargate Resistence, an online third person shooter video game. It was brilliant plan:

1. Anonymously defame the officers of the company you need to remove months in advance.
2. File a suit against the officers Tim needs to remove and accuse them of investment fraud.
3. Use a restraining order to prevent those officers from entering the premise of the company and remove relevant investment paperwork.
4. Remove old Board of Directors and file investment fad lawsuit. Create a new Board of Directors that are loyal.
5. Become majority shareholder.
6. Devalue the company so that lawyers will advise investors there is no value and no money to sue Cheyenne Mountain/FireSky.
Encourage investors to sue the removed officers creating enough time an distraction.
7. Sell devalued preferred shares and transfer assets of Cheyenne Mountain other Tim Jenson companies such as Knowledge Relay, Blue Springs LLC.
Sell shares at a preferred value to Knowledge Relay investors and Blue Springs clients.
8. Once ownership of assets have been moved to Knowledge Relay, fire new Board of Directors and file suit for securities fraud and file restraining orders.
9. Sell Knowledge Relay assets obtained from Cheyenne Mountain and Firesky for low price.
10. Compensate the majority investor (Tim Jenson) from Knowledge Relay and Blue Springs LLC and honor financial commitments with MGM who provided the license for the game title.

In order to save Cheyenne Mountain Entertainment and it's assets, the original Board of Directors were left no choice to file Chapter 11 to execute a stay of all assets. Tim Jenson and the new Board of Directors have unsuccessful tried to repeal the Chapter 11. False documentation was produced by Tim Jenson and provided to Arizona police that the Chapter 11 has been removed, proceeded to remove Cheyenne Mountain Entertainment assets, and released a false a statement that Chapter 11 has been removed. According to the US Bankruptcy Court this case is still in motion under review and has not been rescinded.

Tim Jenson has also laid off the entire Cheyenne Mountain Entertainment and Firesky Staff, retaining one loyal employee to manage the video game until all assets are officially owned by Knowledge Relay, which then the third person shooter game will be taken offline.

This legal battle will continue for weeks to come between the founding officers of Cheyenne Mountain Entertainment and the President Tim Jenson who was hired to operate the company. Only time will tell if this case will be another fraud story of Corporate America or another success story of the American entrepreneur. If Tim Jenson wins this case it will be another Corporate American fraud story, which the person with a lot of money can take whatever they want and manipulate the law to justify it. If this happens Tim Jenson can be added to the lists of Bernie Madoff, Enron, [email protected].