Boardroom coup ousts Chamco executives
Diana T. Kurylko
Automotive News
March 10, 2008 - 12:01 am ET
Directors of Chamco Auto, a company formed to sell Chinese vehicles in the United States, have ousted two top executives and a powerful consultant alleged in lawsuits to be the company's de facto leader.
The directors on Monday, March 3, installed a new executive team, and top officers and shareholders immediately filed a civil suit alleging fraud, mismanagement and diversion of corporate funds by the New Jersey company's former managers.
Fired by the board were Chairman Bill Pollack and President Sam Tropello. The board also severed ties with consultant E. Michael Daspin, husband of the privately owned company's largest shareholder. Two lawsuits by former Chamco employees allege Daspin ran the company but his role was concealed to cover up a past felony fraud conviction that would inhibit the company's ability to sign up dealers.
The shareholders' suit alleges Daspin and others diverted corporate funds to other companies they owned; issued Chamco stock without authorization to friends, family and associates; and mismanaged the company.
The suit was filed in New Jersey Superior Court. No date has been set for a hearing.
In an e-mail, Pollack called the board's actions "illicit attempts to bankrupt our company and expropriate our assets." Pollack contended he is still in charge of Chamco.
The directors say Chamco is headed by Mario Ferla, a former Fiat executive brought in last October as CEO. Ferla now adds the title of chairman. Thomas Del Franco, a former Audi and Mazda executive who had been Chamco's COO, was named president by the board.
Chamco, short for China America Cooperative Automotive Inc., has said it will begin selling a Chinese-made pickup and SUV next year, plus a car and crossover later. The vehicles will be built by Hebei Zhongxing Automobile Co.
Chamco says the vehicles will be sold through a network of 75 dealers. The company says it has signed 37 dealers.
Ferla said about 30 dealers who took part in a conference call Friday, March 7, expressed support for the new management team
http://www.chamcocorp.com/
This is supposed to counter what the other chamco site said. Its like a civil war at that place.