FORT LAUDERDALE, Fla., May 5, 2008 (PRIME NEWSWIRE) -- GlobeTel Communications Corp. (Pink Sheets:GTEM) (the "Company") today announced that it reported on Form 8-K that the U.S. Securities & Exchange Commission filed a lawsuit in the United States District Court for the Southern District of Florida against GlobeTel Communications Corp. (the "Company") and three former officers of the Company, Timothy J. Huff, Thomas Y. Jimenez and Lawrence E. Lynch. The SEC alleges, among other things, that the Company recorded $119 million in revenue on the basis of fraudulent invoices created by Joseph Monterosso and Luis Vargas, two individuals formerly employed by the Company who were in charge of its wholesale telecommunications business.
Jonathan Leinwand, Chief Executive Officer, stated, "We will vigorously defend against this lawsuit. Meanwhile, we are expecting our independent auditors to conclude their final reviews of our fiscal 2006 and 2007 results as quickly as possible.
"In addition to reviewing and revising our accounting and financial reporting systems during the past year," added Mr. Leinwand, "we have continued to keep the focus on our airship program, making changes when necessary and bringing further resources to the R&D/testing process to move the Company and its partner TAO into a leadership position in high altitude remotely operated vehicles. We believe the continued efforts to integrate solutions for the security, surveillance and communications markets are creating uncommon opportunities to merge the capabilities of our airship platforms with the innovations of an increasing base of potential customers and partners."
About Sanswire Networks and GlobeTel Communications Corp.
GlobeTel Communications Corp. develops and provides an integrated suite of aerospace communications products and services, leveraging its relationships with leaders in UAV (Unmanned Aerial Vehicle) technologies. Sanswire Networks is focused on the design and construction of various aerial vehicles, capable of carrying payloads that provide persistent surveillance and security solutions at various altitudes.
Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "project," "intend," "expect," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, including a lawsuit filed by the U.S. Securities & Exchange Commission and delayed filings of quarterly results, any of which could cause the Company's previously reported actual results, performance (finance or operating) to change or differ from future results, performance (financing and operating) or achievements, including those expressed or implied by such forward-looking statements. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.