David Chadwick, a company vice president and director of engineering for Las Vegas-based Chadmoore Wireless Group Inc., resigned his positions following a due-diligence procedure conducted prior to the company’s recent Securities and Exchange Commission filing. Chadwick co-founded the specialized mobile radio concern with Robert Moore, and he also served as a director and corporate secretary.
During preparation of Form 8-K paperwork required for its proposed $12 million secondary stock-and-warrants public offering, Chadmoore attorneys discovered Chadwick had been convicted in December 1992 by the San Diego Superior Court on one count of “injuring or destroying insured property,” a felony. According to court paperwork, Chadwick was fined and put on probation for five years. Following his resignation from Chadmoore, Chadwick filed a motion with the court to change his original guilty plea. Chadwick and his attorney could not be reached for comment.
Chadwick’s name appears on six Chadmoore licenses issued by the Federal Communications Commission, and the felony conviction could be grounds for canceling those licenses; modifications to any pending FCC actions reportedly have been filed by Chadmoore attorneys. If the commission acts on this private-radio issue in the same way as it has on similar broadcast-related issues, letters of inquiry will be sent to Chadmoore for additional corporate information. As far as broadcast precedents are concerned, in most license cases, if a felony conviction was not related to communications in any way or was not a drug offense, the FCC has been more lenient.
William Bossung, Chadmoore’s corporate-finance director, told RCR, “David had been working on the case for several years, and diligently since last year, to reduce the charge or take back his plea. The problem could have been handled in February 1995 [prior to Chadmoore’s business existence] in a much different manner.”
In addition to his Chadmoore responsibilities, Chadwick has been serving on the board of SMR WON, an independent carrier organization based in Louisiana. SMR WON Executive Director Alicia Clemens told RCR she had not heard from Chadwick concerning his future role with the group.
Chadmoore reported first-quarter revenues of $187,824 and losses of $667,415, or 7 cents per share. Losses for the same period last year totaled $508,903, or 11 cents per share.
