ITEX Corporation



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       Every U.S. state has a business records department.  Its information is available to the public online.  Do a business records search for “Itex Corporation.”  If your search reveals “no record” or Itex’s permission to do business was "revoked," report it to your state’s Attorney General and to your state’s tax department.  Making a report is confidential and can also be made anonymously.  Some states provide a substantial financial reward for reporting tax evaders.

                                    In the matter of:

 Itex Corporation, 15900 SE Eastgate Way, Bellevue, WA 98008

                                           SUMMARY                                                                              File No. 21/713 (modified)


RECOMMENDATION: Business Watchdog does NOT recommend doing business with Itex Corporation until it ceases its unethical business practices and becomes a trustworthy member of the business community.

Special Note:  Subsequent to making criminal allegations against Itex Corporation, the Director of Business Watchdog was confronted near his home by a male not known to him who stated if the allegations are not withdrawn “you will be harmed.”  This threat was reported to New York Police Department (Verification of Crime No. 3873, 5th Precinct).

Please advise Business Watchdog of any inaccuracies.  This report may be modified or withdrawn upon submission of credible information.

Itex Corporation, CEO Steven White, and broker John Castoro were given an opportunity to respond.  They neither denied nor responded to the following allegations:

        1.  Itex is illegally conducting business and evading taxes

        Business Watchdog alleges that Itex Corporation (Itex), an international merchandise sales company, led by CEO Steven White, is a criminal enterprise. 

        Publicly available governmental records reveal that Itex is illegally conducting robust sales of merchandise in 46 U.S. states (excluding CA, NV, OR, and WA) without the required authorization, notification of doing business, or payment of applicable taxes.  Since 1999, Itex has evaded and laundered the taxes due to these states on an estimated $2.3 billion of sales.

        2.  Itex has “covered up” its New York sales

        Itex’s 218 New York State members generate millions of dollars in sales.  On April 21, 1998, New York State - Department of State declared Itex "Inactive."  On December 29, 1999, Itex's authority to do business in New York State was annulled for failure to pay taxes.  To date, Itex has disregarded the Order of Annulment and illegally continues making robust sales in New York State and evading applicable taxes.

        Apparently to hide its sales from New York State tax investigators, Itex removed from its website any indication that it is doing business in New York State and concealed its New York State members by listing them as New Jersey members under the brokership of John Castoro, who is likely complicit in Itex’s tax evasion scheme.

          3.  Itex is scamming its brokers and members

        Itex derives income from its sales of brokerships, memberships, and commissions paid by its 22,000 members.  To continue the flow of ill-gotten income into its coffer, Itex conceals from its brokers and members they are participating in Itex’s scheme of illegally conducting business in 46 U.S. states and evasion of taxes.

        4.  Itex customers claim embezzlement of their funds

        In the course of doing business, 18 companies complained of Itex’s wrongdoing, including gaining access to customers’ bank account and embezzling funds.

        At least one of the embezzlements was by John Castoro, Itex's NY and NJ broker.  Under the pretext of selling advertising, Castoro gained access to the account of an Itex member, withdrew $56,650, did not provide the advertising, and kept the member's funds.

        5.  Itex conducted an illegal gambling and debt collection operation

        Evidence provided by an Itex member, including notifications of gambling events and locations, shows that New Jersey broker John Castoro promoted and conducted, and may be presently conducting, an illegal interstate gambling and debt collection operation in Northeastern United States.

        6.  Itex was prosecuted by U.S. Securities and Exchange Commission

        The U.S. Securities and Exchange Commission (SEC) prosecuted Itex for defrauding stockholders (SEC LR-16305 and LR-6437) and accounting fraud (SEC File No. 3-10714).  The SEC prosecutions resulted in settlements.