Basic Chemical Solutions is suing Evergreen Pulp of Colorado, Hydro Syntec Chemicals and David K.K. Tsang.  This suit has had eight trial dates beginning with March 11, 2009.  The reasons for the postponements include inability to find a courtroom.  The next court date is July 9, 2012 where they will set another date for the jury trial unless it is postponed again.

On December 3, 2010 Basic Chemical Solutions claimed "That Mr. Tsang misrepresented and/or made material omissions regarding the financial health of Evergreen to BCS" (BCS= Basic Chemical Solutions)
"As a result of Mr. Tsang's material omissions regarding Evergreen's deepening insolvency BCS continued to deliver the caustic soda and was damaged in the amount of $904,875.07."

In an affadavit found in court records and dated July 14, 2010, David K.K. Tsang said that he was employed by Evergreen Pulp on January 21, 2005 and was Chief Executive Officer until February 8, 2009.  He was also employed by Hydro Syntec Chemicals and was still their Chief Executive Officer at that time.

Question: "But you were wearing two hats at the same time, correct?
Tsang: "I was employed by both companies at the same time."
Tsang: "Hydro Syntec had a contract with Lee and Man Chemicals to market their product in the U.S."
Tsang:"So therefore our sole existence is dependent on being backed up by a producer."
Question: "So Lee and Man Chemicals is the producer? 
Tsang: "Yes."
Question:  "To Whom did it sell?" 
Tsang: "Samoa Acquisition Corporation"

Mr. Tsang went on to state that Evergreen was not owned by a subsidiary of Lee and Man.

When Mr. Tsang was asked who would know how Evergreen was billed, he answered "Tracy, but couldn't remember her last name. Furthermore Mr. Tsang said he did not know the  whereabouts of Steve Edmonton the Chief Financial Officer.

Mr. Tsang said that BCS did not want the caustic soda back, so he sold it to Port Townsend Paper for $107,700

Evergreen was sold to Samoa Acquisitions for 2- 2.5 million.  The proceeds went to pay off creditors, but BCS was paid nothing not even the amount they got for the sale of the caustic soda that they got from BCS.

Question: "You were not part of the new management team correct? (meaning Freshwater Tissue?)
Tsang: "I was not part of that management team."
________________________

This information and more is available in court records.  Anyone can view the records. There are four files full of information (3 of them 3-4 inches thick). There are many unanswered questions:

If Evergreen went under and had no money, where are Evergreen of Colorado and David K.K. Tsang getting the money for the lawyers to write all these legal briefs? 

Evergreen and Lee and Man advertised that Evergreen was a subsidiary of Lee and Man.  Even documents of the North Coast Water Board state that Evergreen was a subsidiary of Lee and Man.  We remember that Evergreen was listed on the Lee and Man website.??????????

People have reported that David K.K. Tsang was originally listed on the website of Freshwater Tissue.???????????????? (Memo, there were a number of owners between Samoa Acquisition and Freshwater Tissue Co.)

Why has this case been postponed for over 3 years?

"Oh what a tangled web we weave"!!!!!!!!!!!!!!!!!!!!!!

Patrick
7/4/2012 11:20:42 am

This is just from memory as I've pretty much gone on to other things. In December 2004 the local pulp industry was about to go under when visitors from China showed up and were greeted as saviors, Lee & Man,as I recall simple handbag manufacturers, had recently diversified to manufacturing cardboard containers. They bought pulp from various sources but a bankrupt pulp mill in the U.S. seemed like a perfect acquistion. The rest is history. Just look at where we are now. No one cares but our Bay is still caught up in a tangled mess --- of evasive business dealings.

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e.malaga
7/16/2012 12:15:20 pm

.....Believe me...I'm looking for some financial answers to, like others on this blog....and for that reason..I've checked out the public documents..and the simple fact is........the documents show that there was a 'judgement' against Evergreen by BCS.

It sure looks like Evergreen has no dough to even hire lawyers or make a settlement .....so..I guess its a shell game folks...and how many years it takes to find the right shell is anybody's guess..I'm not going to waste any of my time or money on this. Time for me to move on...

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7/19/2012 11:06:08 am

It would be nice if someone could get money owed to them by Evergreen. Fines to the Water Board have never been paid. They were referred to the Attorney General. The Attorney General referred it back to the Water Board. We are not under the illusion that Evergreen will pay anyone, but...Sometimes telling the truth is important just for its own sake.

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7/24/2012 06:22:22 am

The case has been postponed yet again until November 21, 2012 1:45 PM Courtroom 8 for a Readiness Conference. This case was first scheduled for March 11, 2009. The wheels of justice apparently go very slowly.

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10/11/2013 11:15:19 pm

For every disciplined effort there is a multiple reward.

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Jim
4/10/2015 03:12:33 am

Look up Astra Oil vs Hydro Syntec Chemicals and David K K Tsang. No surprise he is being sued for fraud. Everywhere he goes he leaves a path of destruction behind him and a ton of people owed money.

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