Bocas Unidos Foundation

Just Exactly What Should I Call You, Frank?

November 10 2007

By DON WINNER for Panama-Guide.com - People hand me business cards all the time. They almost always have the person's name, and then under that a title. "Joe Guy, Chief Bottle Washer." Got it - normal, routine, and expected. But unusual or unexpected answers to simple questions cause my radar to light up. Call it normal curiosity but I tend to focus on those unusual things to figure them out, and I assume we all do the same. One of the people I've been talking to in my investigations into Rights of Possession property conflicts in Bocas del Toro is Frank DeLape. We've spoken on the phone several times, and twice those conversations lasted longer than 1 hour and 45 minutes. Frank knew he was talking to an investigative journalist the whole time. But at the end of our conversation Frank said he did not want me to quote him or use his name at all in any of these articles. Huh? (Focus...)

Eighth In A Series: This article is the eight in a series of investigatory articles I'm doing about Rights of Possession property in Bocas del Toro. Articles previously published are:"The Before and the After - Putting Things In Perspective" (15 October 2007)"The Bocas del Toro Mutiny of 2007" (12 October 2007)"Nobody Owns Anything in Bocas del Toro" (9 October 2007)"Getting Screwed on Wild Cane Key in Bocas del Toro" (8 October 2007)Alma Montenegro de Fletcher - Executive Secretary of the CNTCC (5 October 2007)Fun and Games with Rights of Possession Property in Bocas del Toro (2 October 2007)You Shouldn't Look A Gift Horse in the Bocas (29 September 2007)Related Articles - Published in Other Newspapers or Websites: "Some Panama squatters losing homes" (15 October 2007 - The Miami Herald)

Open and Forthcoming: On the phone Frank DeLape has been very open and forthcoming in discussing the problems his company has been having in Bocas del Toro. But at the end of one of our recent conversations I asked Frank "exactly what is your position or title within the company - what do I call you?" He hemmed and hawed for awhile, then told me flat-out he does not want me to use his name in any of these articles, at all. I explained to him that sorry, it has become apparent to me that he is a primary player or decision maker in all of these problems. Basically, he's right in the middle of it as a primary. So, no, I'm not going to be satisfied with only quoting Richard Kiibler, the Vice President of Operations for Six Diamonds Resorts International (SDRI) in Bocas del Toro. I want to be able to quote Frank DeLape.

"All Of That Was Off The Record" What? Now, hold on a second. Confidential sources provide me with information and request confidentiality all the time. They always start the conversation with a request for confidentiality. Something like "Hey Don, I've got some great information and I can tell you what's really going on, but you have to keep me out of this, you can't either use my name or attribute back to me as the source...." And of course I always accept, respect, and honor those stipulations and requests for confidentiality when they are made going into a conversation or interview. But you can't go "off the record" at the end of a long and wide-ranging telephone conversation, especially when you know that the only reason I'm calling is to get the "other side" of the story. Sorry, but it just does not work that way.

A Powerful Man With Money: Lately you can't walk down Via Veneto without tripping over a successful businessman with a lot of money. A few years ago people like this, and especially English speaking expatriates, were somewhat of a rarity. But now in the red-hot Panamanian economy guys like this are becoming common. For the most part these kinds of people were relatively successful in their business ventures and now have millions of dollars to invest in the "hot" Panamanian market. Sometimes when talking to them you can almost "feel" who they are accustomed to barking orders at their staff and declaring "make it so!" like Jean Luke Picard. It must be nice to wield that kind of power as long as it works. But a guy like me who is beyond their circle of power or influence makes them nervous. That's the vibe I get from Frank DeLape.I

Need A Title: Frank DeLape took exception to the article I published on Monday, 8 October 2007, entitled "Getting Screwed on Wild Cane Key in Bocas del Toro", specifically the part when I called him " the Chairman of the Board and Chief Executive Officer of the Benchmark Equity Group, Inc." I explained that I used that title because there is a lawsuit filed by Pillar Panama and Red Frog Beach against him and Richard Kiibler in Houston, Texas, and that's what they called him in the lawsuit. He said the Red Frog guys had made a mistake in the way they filed that lawsuit, and that if I followed their lead then I would just be repeating the same mistake. He said that the Benchmark Equity Group has nothing to do with the business in Bocas del Toro. OK, if you say so. In any case, I still need a title. What do I call you?

"Don't Mention My Name At All" Huh? (again.) On that one I had to raise the "bullshit" flag. I have met with and interviewed all of the principal and primary players in Pillar Panama, the company behind the Red Frog Beach Club development, including:Joe Haley: The primary actor, Chief Executive Officer (CEO) and Partner.Scott Harris: The most active person on the ground in the Republic of Panama; a partner and the Executive Vice President of Pillar Panama.Chris Nolan: Another partner and the Senior Vice President of Company Operations. I met him on a boat between Bocas Town and Isla Bastimentos.Several other Pillar Panama employees, including sales staff, lawyers, and operations people.

So Again, Are You The "Owner"? Frank DeLape continued to say that he simply did not want his name to appear in any of these articles, at all. He kept telling me to use Richard Kiibler's name for everything. That, to me, was ridiculous because the only reason I was calling the guy was to get the "other side" of the story with regards to the ongoing battles between Red Frog and Cinco Cruces de Oro. I told Frank his answer was unacceptable, and I let him know I had come to the conclusion that he as an individual is a primary actor behind the Cinco Cruces de Oro activities in Panama, as well as the Six Diamonds Resorts International, and all of the developments they are doing in Bocas del Toro and in other areas of the country. So, I told him, I'm going to call you something so what do you want that to be? He said he was a partner and that there were several investors. That he was not the primary operational decision maker. In short, he insisted on his position. Well, I have to insist on mine.

Off To the SEC: The company Six Diamonds Resorts International (SDRI) is a public company. As such, they are required to file complete and regular reports with the Securities and Exchange Commission (SEC) in the United States. Part of the information required in those reports is a complete public disclosure with regards to the primary actors in public companies. The reason for this has to do with things like insider trading and protections against fraud. So, the SEC has the same questions I do.

Meet EDGAR: EDGAR is a comprehensive database maintained by the Security and Exchange Commission (SEC) containing all of the public information public companies are required to submit. According to the SEC's web site:"All companies, foreign and domestic, are required to file registration statements, periodic reports, and other forms electronically through EDGAR. Anyone can access and download this information for free. Here you'll find links to a complete list of filings available through EDGAR and instructions for searching the EDGAR database."According to the 8-K for Matador Acquisition CORP filed on 10 September 2007:"The Company also has, as its Executive Chairman, Frank DeLape, who has been an officer and/or director of a number of publicly traded companies."Landbridge is owned by Frank DeLape and one other person.""Mr. DeLape is a control person of Six Diamond, SDRI and Landbridge and the Company and such other person is a control person of the Placement Agent, SDRI, Landbridge and the Company.""The Company also may compete against local developers as well as Messrs. DeLape and other persons and Landbridge." (Huh?)

"Frank DeLape is a control person of Six Diamond, SDRI, Landbridge and, following the Offering, the Company.""Following the Exchange, Mr. DeLape beneficially owns approximately 3,312,135 Ordinary Shares of Six Diamond.""In addition to the other conflicts set forth herein, Landbridge, the control person of the Placement Agent and Mr. DeLape may, pursuant to the JV Agreement, compete directly with the Company by, among other items, purchasing and/or selling available land for their own benefit, rather than giving the Company the opportunity to purchase and/or bid on the land and/or purchasing land and developing the land either themselves or through a third party developer without giving the Company the right to develop the property pursuant to the JV Agreement." (That one is my favorite.)"Directors and Named Executive Officers (2):"Frank DeLape (3) 3,312,135 25.8%Blair Korndorffer 1,500,000 11.7%James William Bell (5) 350,000 2.7%Richard Kiibler (6) 200,000 1.6%Alberto Soccarez 50,000 0.4%Robert F. Sagarino -- --"Includes 312,135 Ordinary Shares owned by Nautilus Global Partners, LLC ("Nautilus") after the Exchange and the Offering. Mr. DeLape owns 40% of Nautilus. Excludes stock options to purchase 1,200,000 Ordinary Shares issuable to Mr. DeLape pursuant to the DeLape Agreement. See "Directors and Executive Officers".The names of our current officers and directors, as well as certain information about them are set forth below (Name, Age, Position):Frank DeLape, 53, Executive Chairman and Co-FounderBlair Korndorffer, 50, Executive VP - Architecture and PlanningJames Wm. Bell, 50, Chief Financial Officer, Chief Operations Officer and a DirectorRichard Kiibler, 35, Vice President - OperationsAlberto Soccaraz, 30, Vice President - Sales & RealtyRobert F. Sagarino*, 48, Director"Employees and Directors - Frank DeLape. Executive Chairman, co-founder since inception. - Frank DeLape is Chairman and CEO of Benchmark Equity Group, a company he founded in 1994. Prior to Benchmark, Mr. DeLape spent 11 years in executive management roles of managing turnarounds for various companies. He has worked on behalf of the Board of Directors or the sponsoring banks to recapitalize companies return them toprofitability or maximize cash repayment through an orderly liquidation. Benchmark provides private equity and debt financingsfrom various funds as well as a syndicate of investors. Mr. DeLape was a founder and financier of Think New Ideas, a NASDAQ NMS listed company, which later sold for over $300 million. At Benchmark, Mr. DeLape has formed and been instrumental in the growth of eighteen companies. Of these, several have become NASDAQ listed, one listed onthe American Stock Exchange, and three were sold, creating in total over several billion dollars in market value.

From August 2001 throughOctober 2005, Mr. DeLape was Chairman of the Board of the biotechnology company Isolagen, Inc. Over his four years as Chairmanand a major shareholder of Isolagen, Mr. DeLape oversaw the listing of Isolagen on the American Stock Exchange, and raising over $194 million in debt and equity financings for the company. Mr. DeLape is a Director of Polymedix, Inc. since November 2005 and President, CEO and a director of Influmedix, Inc. since April 2006. Mr. DeLape is also adirector of Anchor Funding Services since January 2007 and Uni-Pixel, Inc. Both such corporations file reports under the Exchange Act. The trading symbol for Uni-Pixel, Inc. on the NASD Bulletin Board is "UNXL". Mr. DeLape is a member of the National Association of Corporate Directors.Employment Agreements - DeLape Employment Agreement. Effective as of July 1, 2007, the Company entered into a three (3) year (the "Term") employment agreement (the "DeLape Agreement") with Frank DeLape, pursuant to which Mr. DeLape shall serve as Executive Chairman of the Company and Chairman of the Board of Directors. Mr. DeLape's annual base salary(the "Base Salary") will be $350,000. Increases to the Base Salary are at the discretion of the Board of Directors. Mr. DeLape will be entitled to an annual bonus ("Annual Bonus") at the discretion of the Board of Directors. Pursuant to the DeLape Agreement, Mr. DeLape was granted an option (the "Stock Option") to purchase 1,200,000 Ordinary Shares (the "Option Shares") at an exercise price of $2.00 per share. "The DeLape Agreement also providesMr. DeLape with certain benefits, including an automobile allowance, a life insurance policy, disability income insurance, medical insurance,reimbursement for business expenses, as well a housing allowance in Panama. In addition, the DeLape Agreement contains confidentiality and non-compete covenants from Mr. DeLape.""In addition to the DeLape Agreement and the Bell Agreement, on October 3, 2007 we issued stock options to purchase 100,000 Six Diamond Ordinary Shares to Richard Kiibler; stock options to purchase 75,000 Six Diamond Ordinary Shares to Donna Lanier; stock options to purchase 75,000 Six Diamond Ordinary Shares to Jeffrey W. Tomz; and stockoptions to purchase 24,000 Six Diamond Ordinary Shares to Belinda Long.

"CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS - Mr. DeLape - Following the Offering and the Exchange, Mr. DeLape is a control person of Six Diamond, SDRI, Landbridge and the Company. After theOffering and the Exchange, Mr. DeLape currently is the beneficial owner of approximately 3,312,135 Ordinary Shares, which equals 25.8% of the issued and outstanding Ordinary Shares, and will be the Chairman of the Company and SDRI. Mr. DeLape also has entered into an employment agreement with the Company pursuant to which he will be the Company's Chairman and receive, among other items, cash and stock options. See "Directors and Executive Officers". To date, Mr. DeLape and entities affiliated with Mr. DeLape have loaned SDRI $440,000 and $275,000, respectively, including $131,000 of which was used by SDRIas a non-refundable down payment on the Brenon Property which SDRI intends to acquire pursuant to the Brenon Agreement.

Six Diamonds Resorts International (SDRI): At that point in the SEC filing, Frank Delape is identified as the "Executive Chairman" of SDRI, a company formerly known as Cinco Cruces de Oro in Bocas del Toro. SDRI is using another company owned by Frank Delape, Landbridge, to purchase properties in Bocas del Toro. So, there's the title - "Executive Chairman for SDRI." How hard was that?

Make My Job Easy: If Frank DeLape had just said "I am the Executive Chairman for Six Diamonds Resorts International, as well as the Chairman of the Board of Directors for the company. In addition, I am an owner in the Landbridge company with is purchasing land in Bocas del Toro and other parts of Panama." I would have said "Oh, OK. Thanks, got it." I guess Frank DeLape thought that the whole SEC thing was beyond my grasp. Or maybe (and more likely) he knows there's some questionable activities going on in Panama in Bocas del Toro and he does not want to see his name associated with those activities.

Why Should You Care? Because this is a tangled web of ownership and responsibilities. There's no doubt in my mind that the main player or decision maker behind Cinco Cruces de Oro and Six Diamonds Resorts International (SDRI) is Frank Delape. This SEC document confirms that. Chances are good that these kinds of details will matter more, later. As in, 'fer instance...

Who Shot Who? Last week someone died in Changuinola, shot in a bar. From what I have been told (and have not yet confirmed) the people who are under arrest and investigation in that murder are Jorge Aguirre, a Cinco Cruces de Oro employee who was working as a "capataz" or foreman, and another man named José Leslie, also a Cinco Cruces de Oro employee. From what I understand Jorge Aguirre did twelve years in prison for another homicide and was released within the past year. I have several questions related to that shooting. Like, who died? Did he own any land? Was this killing in any way related to the ongoing disputes over land in Bocas del Toro or was it just a dumb bar fight. Where did Jorge Aguirre get the gun? By definition it was an illegal carry because as an ex-convict he is not eligible to carry a weapon legally. Where did he get the weapon from? You know, stuff like that.

If An Employee of IBM Shoots the Pope: Then you can't blame IBM. People commit crimes, acting as individuals. I want to make it perfectly clear that in no way am I trying to tie the murder last week in Changuinola to Frank DeLape, Cinco Cruces de Oro, or Six Diamond Resorts International. Most likely, it just so happened that those two dudes got drunk and killed the victim for some other, completely unrelated reason. But I am going to look into it and figure out all of the who, what, when, where, and (most importantly) why questions.

And This Is What Happens: I would suggest that the people from Cinco Cruces de Oro, Landbridge, and Six Diamonds Resorts International (SDRI) just answer my simple questions with simple answers. If I can't get answers from them then I am forced to go out digging through other stuff until I've satisfied my curiosity. That takes longer, and now I know that Frank DeLape is getting paid $350,000 per year. But you see, that was not part of my question (and I really don't care) but now that's out there in the mainstream as well. And for the record this article is the product of just one search on the EDGAR database for information related to Frank DeLape and investments in Bocas del Toro in Panama. There are probably hundreds if not thousands of documents out there, because that's the kind of paperwork world Frank DeLape lives in as a successful investor and businessman. It's a necessary evil because Frank DeLape wants to be able of offer shares in his company for public sale, and the public has a right to know what they are buying and to do their "due diligence." But at this point Richard Kiibler is no longer taking my phone calls, for example. I've left about five or six voice mail messages, and at this point I've just about given up. Maybe Blair Korndorffer will talk to me... (First question - "Korndorffer?")