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YOU
CAN FIGHT CORPORATE CORRUPTION
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) ITEX CORPORATION APPEARS TO BE A
CRIMINAL ENTERPRISE 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allegations are not withdrawn “you will be harmed.”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modified or withdrawn upon submission of credible information.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.
