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Saga of Network Technologies Group, Inc.
as covered in the press

Strategic Management Partners

A nationally recognized turnaround management firm
specializing in interim executive leadership, asset recovery,
and investing in underperforming troubled companies.

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The rise and fall Saga of Network Technologies Group, Inc. Collard Discovers Bank Fraud and Accounting Irregularities, the 2nd day on job. The company is forced to liquidate amidst Federal and State Investigations. Four top executives indicted on federal charges of mail, wire and bank fraud. Mercantile recovers only $2M of the $3.5M it had invested. The company grew to $30 million in 2001, but then the telecommunications slowdown was a catalyst for management to 'cook-the-books'. John M. Collard was hired by the equity investors as Chief Executive Officer on July 1st, 2002, and found bank fraud, theft, money laundering, and accounting irregularities on July 2nd. The company could not find additional investors to put in more cash and couldn't make payroll July 12th. Collard was forced to lay off all 125 employees, while authorities looked on. Police presence was necessary to maintain order. The company assets were auctioned off on August 27th to partially repay Mercantile, the primary secured creditor. Investigations by both Federal and State authorities produce Federal Grand Jury indictments for mail, wire and bank fraud against top executives. Three executives serve time in federal prison. Laws suits continue for years. Several News Publications Picked Up the Story The Baltimore Sun Baltimore Business Journal The Daily Record   Network Technologies Group, Inc. hires new CEO [John M. Collard] The original company introduction press release. Network Technologies Group, Inc. shuts down amid cloud of suspicion The final company press release. Tech firm names new CEO July 1, 2002 online edition Network Technologies Group, Inc. fold amid phony invoices July 13, 2002     Baltimore Sun NTG shuts down; CEO alleges accounting irregularities existed July 12, 2002     Baltimore Business Journal online edition Tech community hit hard by NTG failure July 19, 2002     Baltimore Business Journal print edition NTG CEO: Law enforcement involved July 23, 2002     Baltimore Business Journal online edition CEO: NTG insolvent last year July 26, 2002     Baltimore Business Journal print edition NTG say it's being probed by Md,, U.S. Bookkeeping, 401 (k)s possible focal points. July 27, 2002     Baltimore Sun NTG exec: It was 'Catch-22' August 2, 2002     Baltimore Business Journal print edition F&D caught up in NTG August 9, 2002     Baltimore Business Journal print edition With NTG gone, competitors see opportunity August 16, 2002     Baltimore Business Journal print edition Merc to seek NTG payback Bank targets Tobin's assets to get $3.5M August 23, 2002     Baltimore Business Journal print edition Auction to sell last of tainted company Fells Point telecom's allegedly 'cooked' books led to downfall July 12. August 27, 2002     Baltimore Sun Last of NTG assets sold at auction August 27, 2002     Baltimore Business Journal online edition NTG exec claims loans were forged August 30, 2002     Baltimore Business Journal print edition Turnaround Specialist Says His 'Product Is Me' September 8, 2002     Baltimore Sun Mercantile hits road blocks in NTG drama November 1, 2002     Baltimore Business Journal print edition Filing: Former NTG chief's debts top $1M January 10, 2003     Baltimore Business Journal print edition NTG execs indicted on federal fraud charges January 22, 2003     Baltimore Business Journal online edition Ex-NTG execs face fed fraud indictments January 23, 2003     Daily Record - Other Business News 4 officials of defunct city firm indicted NTG collapsed last year amid accounting scandal January 23, 2003   by Stacey Hirsh, Baltimore Sun Court filing: NTG's Tobin took company money February 3, 2003     Baltimore Business Journal online edition Baker pleads not guilty in NTG case February 4, 2003     Baltimore Business Journal online edition Second former NTG executive pleads not guilty February 5, 2003 online edition Clues to alleged fraud unfold in hindsight February 8, 2003     Daily Record - Other Business News Tangled wires How a 'great place to work' became a target for federal prosecuters February 14, 2003     Baltimore Business Journal online edition Even turn-around specialist was stunned by books February 15, 2003     Daily Record - Top Stories Tobin pleads guilty to one charge of wire fraud February 20, 2003 online edition NTG's ex-CEO pleads guilty to fed fraud charge; must cooperate February 21, 2003     Business News by Kathleen Johnston Jarboe, Daily Record Business Writer NTG's ex-CEO pleads guilty to fraud Tobin could receive 30 years, $1 million fine February 21, 2003   by Stacey Hirsh, Baltimore Sun NTG's former finance chief pleads guilty February 27, 2003 online edition Bray pleads guilty to NTG fraud charge Ex-CFO is 2nd officer to admit role in scheme: His 'sin is one of omission' February 28, 2003   by Stacey Hirsh, Baltimore Sun NTG's CFO admits guilt in fraud February 28, 2003     Business News by Kathleen Johnston Jarboe, Daily Record Business Writer Employees finished jobs on own despite NTG collapse March 1, 2003     Business News by Kathleen Johnston Jarboe, Daily Record Business Writer Collard suing NTG, board members March 6, 2003 online edition Investor sues NTG auditor Ellin & Tucker among defendants in case March 7, 2003 print edition Suit: Auditors share blame for NTG loss March 7, 2003     Business News by Kathleen Johnston Jarboe, Daily Record Business Writer Collard: Contract based on bad info March 11, 2003     Business News by Kathleen Johnston Jarboe, Daily Record Business Writer Former NTG employees will get 401(k) money thought lost June 19, 2003     Business News by Kathleen Johnston Jarboe, Daily Record Business Writer Judge: NTG Directors At Fault, Must Pay Interim CEO "Nora Zietz and Robert Stewart made material misrepresentations during the course of their negotiations" February 10, 2006 print edition cover by Rachel Sams, Baltimore Business Journal Courts: Appeals Court Upholds NTG Ruling Nora Zietz and Robert McE. Stewart ordered to pay for negligent misrepresentation January 30, 2007   by Stacey Hirsh, Baltimore Sun Appeals Court Upholds Negligence Ruling In NTG Case "Nora Zietz and Robert Stewart were negligent in their dealings with a turnaround consultant hired for the company" January 29, 2007 online edition cover by Rachel Sams, Baltimore Business Journal Award Affirmed Court of Special Appeals Upheld a $59,500 Verdict Against Two Former Directors of Network Technologies Group, Inc. February 2, 2007     Law Notes by Barbara Grzincic, Daily Record Legal Affairs Editor Nora Zietz and Robert McE. Stewart Found Liable for Negligent Misrepresentation The Circuit Court of Anne Arundel County, Maryland found Directors Zietz and Stewart Liable for Negligent Misrepresentation. The Court of Special Appeals of Maryland Affirmed the Decision Against the Two Former Directors of Network Technologies Group, Inc.

  About the Firm        

Strategic Management Partners has substantial experience advising corporations and individuals on the strategic and mechanical issues of corporate development and governance, operating management and turnarounds for asset recovery. Our principal has over 30 years experience in P/L Management, Strategic Planning and Repositioning, M&A for Strategic Advantage, Finance, Investing, Raising Funds, Sales/Business Development, Building Selling and Marketing Teams, and Operational Auditing = In Public & Private companies = In healthy and crisis situations. We work with and support the equity capital community to provide assessment studies to determine the situation, planning and strategy development to direct the company, crisis management to oversee that assets are not squandered away, workout teams that recover assets, and board level oversight to keep the client headed in the right direction. We seek strategic alliances with private equity funds.

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John M. Collard, Chairman
Strategic Management Partners, Inc.
522 Horn Point Drive
Annapolis, Maryland [MD] 21403
Voice 410-263-9100 Facsimile 410-263-6094 E-Mail Strategist@aol.com

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