State alleges fraud by Kalispell businessman David Tacke of Venue Tech Systems, Binocs Manufacturing and Tekware Solutions
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| February 11, 2003 |  View for printing |
Three years ago, Kalispell businessman David Tacke was flying high, claiming he was ready to expand operations here and roll out a series of new, high-tech products.
By William L. Spence The Daily Inter Lake
Today, Tacke and the companies he founded — Venue Tech Systems, Binocs Manufacturing and Tekware Solutions — are being investigated for allegedly defrauding hundreds of investors in 13 states.
Last week, state Auditor John Morrison's office issued a cease-and-desist order for Tacke and the companies, demanding that they stop offering and selling unregistered securities.
The order highlights allegations of a variety of financial misconduct, including that Tacke failed to disclose the existence of a prior cease-and-desist order, that he failed to inform investors about the companies' precarious financial position, that some investor money was used for speculative stock trading and to cover Tacke's personal expenses, and that the companies regularly wrote bad checks.
It also alleges that numerous lawsuits facing Tacke were never disclosed — including three in Canada; seven in Seattle and King County, Wash.; five in Lake County; three in Flathead County; one in Illinois; one in Colorado; and one in Pennsylvania, together with nine state and federal tax liens and nine other liens.
Tacke did not return several telephone calls seeking comment. His attorneys in Helena and Las Vegas also did not return calls.
During an interview in March 2000, Tacke said Venue Tech and its Binocs and Tekware subsidiaries were ready to hire hundreds of employees and invest more than $250 million in equipment, space and marketing for a new wireless point-of-sale system.
The system was supposed to help customers monitor sales activity worldwide, allowing them to track in real time what items were being sold where, and in some cases who they were being sold to and what had been the buyer's past purchasing preferences.
The technology opened up "a potential $100 billion market," Tacke said at the time. He also billed Venue Tech's product as the first operational system of its kind.
"In our realm, we are the first to climb Mount Everest," he said. "We don't necessarily have a need for capital. We have a lot of individuals trying to keep us private, and have enough private funds available to more than cover our financing needs."
However, the cease-and-desist order indicates that the companies began to experience financial difficulties less than two years later.
Starting in June 2001, Venue Tech allegedly withheld health-insurance premiums — and in some cases child-support payments — from payroll checks, but failed to forward the money to the proper agencies.
In October that year, Blue Cross/Blue Shield of Montana notified employees that their health insurance had been canceled, retroactive to June 15, for nonpayment of premiums.
Payroll checks also started to bounce, according to investigators, and the company regularly paid for goods and services by check, and then stopped payment on the checks.
Furthermore, the cease-and-desist order noted that previous companies owned and operated by Tacke "operated similarly in the practice of check kiting and obtaining goods and services and failing to pay for them."
The state received several complaints regarding Tacke in October 2001. Based on those complaints, a warrant was obtained and Venue Tech's business offices here were searched in December.
"Records seized during execution of the search warrant ... disclosed the identities of more than 200 investors in 13 states, and that (Tacke) solicited approximately $6 million for investment in unregistered securities through unlicensed broker-dealers," the order stated.
The records also disclosed that Tacke and other company officers allegedly offered and sold promissory notes worth more than $1 million.
Betsy Griffing, chief legal counsel for the state auditor's office, said any firm wishing to offer or sell securities in Montana must do two things.
"First, they have to register the securities. That gives us an opportunity to review the note, its terms, and what type of disclosure is being made," Griffing said.
"What we're mostly concerned about is the financial condition of the company. If the company is in severe financial straits and that isn't fully disclosed, people can end up making bad decisions."
The people who sell securities also have to be licensed and registered, Griffing said. They have to pass tests to ensure that they're knowledgeable and competent.
Tacke, a Great Falls native, is not licensed with the state, and none of the securities offered by Venue Tech were registered.
In fact, a previous cease-and-desist order issued in 1985 expressly forbid Tacke from offering securities for sale in Montana.
As with the current order, the 1985 order alleged that Tacke offered and/or sold unregistered securities, and that he failed to disclose pertinent information to investors.
Griffing said that the state issues about a dozen cease-and-desist orders each year.
In this case, Tacke will have 15 days to request a hearing regarding the allegations being made.
If the state is successful in demonstrating fraud, the hearing examiner could require that restitution be made to investors.
A cease-and-desist order does not involve jail time, Griffing said. However, it's possible that other agencies will pursue criminal charges against Tacke.
Reporter Bill Spence may be reached at 758-4459 or by e-mail at bspence@dailyinterlake.com
http://www.dailyinterlake.com/NewsEn ... 29-808191-2 
Reader Comments:
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It is about time that these people have been caught. I sent you a letter an email actually when you first published the artcile and bogus information about Tacke and Kavanaugh back in 2000. As I said then I had hoped the Interlake would one day not regret it's decision to run an article that served nothing more than to pry more funds from the unsuspecting elderly contributors that were getting suckered in at every opportunity. I was the first IT manager recruited by Tacke back in June of 1999, and left in October of the same year as it became clear that these were very, very bad people. It is good to see that they have finally been caught up with, they have hurt and damaged many people along the way and deserve everything that they get. I for one will be contacting the state to offer my services in testifying against them anytime and anywhere necessary. -- scott moran |
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I find it humorous that you would post a letter from Scott Moran, a disgruntled former employee who was FIRED. He did not quit or leave of his own accord. After almost 2 years of failures by Scott the company hired a real IT manager, Tom West who asked that Scott be fired because of his lack of abilities. Scott was in a lawsuit with his previous employer, and his former. After being fired from Binocs he partnered with another disgrintled employee and investor who made the above allegations, only to get into ANOTHER lawsuit with them. Unfortuntately Scott is a prime example of who the State relied on for its attacks on Venue Tech and Tacke. John Morrison and his staff not only should be ashamed but held responsible for destrying over 80 jobs in Kalispell MT. --Linda Hahuth
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I object to my name being used in the above statement, it is highly inaccurate. Mr. Moran was never fired from his position and the company and it's pricipals where highly suspect. --Tom West
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Linda's statement is accurate; Scott Moran was fired from Binocs before Tekware Solutions was formed after my hiring as Vice President of Tekware Solutions. I executed the order to release Scott in the best interest of a new direction for Binocs in forming a new sister company - Tekware Solutions. I am not sure who the previous Tom West is, but he is very unclear about the activities and realignment that Binocs, and later, Venue Tech Systems experienced. My email address is posted if any questions need answering around this matter. In regards to the transactional POS system, it was audited by Accenture during an IT audit along with a blessing from Microsoft (refer to Coors Field Case Study on Microsoft.com) in regards to it's capabilities. During the highest volumes at First Union Center this was proven (from real time sales information to employee cost accounting). Cheers, Thomas West |
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Regardless of the views exrpessed previously, tacke's federal court case for two counts of fraud and one money laundering started 6-20-2005 in Missoula. Last summer he appeared in Idaho to operate his ventures. He has a wonderful record of being bad; bad checks, bad relationships, bad person to deal with. Hopefully he will spend a goofd amount of time in federal prison, maybe then honest people can rebuild the parts of their lives that he and his associates tried to ruin. --Bob
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June 30, 2005: The jury findings on Tacke, as follows. One count wire fraud - guilty, one count mail fraud - guilty, 10 counts money laudering - all 10 guilty. The guy is scum, the guy is a dirtbag, and the guy has been found by a jury to be a criminal. Enough said. --bob
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October 12, 2005. Yesterday David Tacke was sentenced to serve 108 months - count them - for his business dealings. Come on Linda Hahuth and any other friends of Tacke, If you are such a Tacke supporter, where is your support in the face of findings of fact and conclusions of law? David Tacke was and is a dirt bag, virtually nothing can be said in his defense. --Bob
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Dear Bob from Boise, It sounds like you've met Tacke as well. I agree Tacke is a white trash, sociopath thief. I am the one who filied the complaint with the Montana State Auditors Office which was the dimise of Tacke's freedom. Deservedly so. I'd like to compare notes, what havoc did he cause in Boise? --Bradford
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