Paragon Technologies' (OTC:PGNT) Audit Committee revealed that former Chairman and CEO Hesham Gad operated without valid U.S. work authorization while leading the company. The committee found that Gad deliberately concealed his illegal immigration status by directing company personnel to misclassify him as an independent contractor through his company, HG Consulting, Inc., without board approval. This misconduct potentially violated federal and state laws, including tax withholding requirements. The committee deemed Gad unfit to serve as a director or officer of any public company. Currently, Gad is attempting to remove all directors except himself through shareholder consents. The company urges shareholders to reject Gad's efforts and revoke any provided consents using the upcoming BLUE revocation card.
Il Comitato di Revisione di Paragon Technologies (OTC:PGNT) ha rivelato che l'ex Presidente e CEO Hesham Gad ha operato senza un valido permesso di lavoro negli Stati Uniti durante la sua guida dell'azienda. Il comitato ha scoperto che Gad ha intenzionalmente nascosto il suo stato di immigrazione illegale ordinando al personale aziendale di classificarlo erroneamente come consulente indipendente tramite la sua società, HG Consulting, Inc., senza l'approvazione del consiglio di amministrazione. Questo comportamento potrebbe aver violato leggi federali e statali, inclusi i requisiti di ritenuta fiscale. Il comitato ha giudicato Gad non idoneo a ricoprire ruoli di direttore o dirigente in qualsiasi società pubblica. Attualmente, Gad sta cercando di rimuovere tutti i direttori tranne se stesso tramite il consenso degli azionisti. L’azienda invita gli azionisti a respingere le azioni di Gad e revocare qualsiasi consenso già fornito utilizzando la prossima scheda di revoca BLUE.
El Comité de Auditoría de Paragon Technologies (OTC:PGNT) reveló que el ex Presidente y CEO Hesham Gad operó sin autorización laboral válida en EE.UU. mientras dirigía la empresa. El comité encontró que Gad ocultó deliberadamente su estatus migratorio ilegal al ordenar al personal de la empresa que lo clasificara erróneamente como contratista independiente a través de su compañía, HG Consulting, Inc., sin la aprobación del consejo. Esta conducta podría haber violado leyes federales y estatales, incluyendo requisitos de retención de impuestos. El comité consideró que Gad no es apto para desempeñarse como director o ejecutivo en ninguna empresa pública. Actualmente, Gad intenta remover a todos los directores excepto a él mismo mediante consentimientos de accionistas. La empresa insta a los accionistas a rechazar los esfuerzos de Gad y revocar cualquier consentimiento otorgado utilizando la próxima tarjeta de revocación BLUE.
Paragon Technologies(OTC:PGNT)의 감사위원회는 전 회장 겸 CEO인 Hesham Gad가 미국에서 유효한 취업 허가 없이 회사를 이끌었다고 밝혔습니다. 위원회는 Gad가 불법 체류 신분을 의도적으로 숨기고, 이사회 승인 없이 자신의 회사인 HG Consulting, Inc.를 통해 독립 계약자로 잘못 분류하도록 회사 직원에게 지시했다고 밝혔습니다. 이러한 부정행위는 연방 및 주 법률, 세금 원천징수 요건을 위반했을 가능성이 있습니다. 위원회는 Gad를 공개 회사의 이사 또는 임원으로 부적합하다고 판단했습니다. 현재 Gad는 주주 동의를 통해 자신을 제외한 모든 이사를 해임하려 하고 있습니다. 회사는 주주들에게 Gad의 시도를 거부하고 다가오는 BLUE 철회 카드를 사용해 제공된 동의를 취소할 것을 촉구합니다.
Le comité d'audit de Paragon Technologies (OTC:PGNT) a révélé que l'ancien président et PDG Hesham Gad a exercé ses fonctions sans autorisation de travail valide aux États-Unis pendant sa direction de l'entreprise. Le comité a constaté que Gad a délibérément dissimulé son statut d'immigration illégal en ordonnant au personnel de l'entreprise de le classer à tort comme prestataire indépendant via sa société, HG Consulting, Inc., sans approbation du conseil d'administration. Cette conduite pourrait avoir enfreint des lois fédérales et étatiques, notamment en matière de retenue d'impôts. Le comité a jugé que Gad n'était pas apte à occuper un poste d'administrateur ou de dirigeant dans une société publique. Actuellement, Gad tente de démettre tous les administrateurs sauf lui-même par consentement des actionnaires. L'entreprise exhorte les actionnaires à rejeter les tentatives de Gad et à révoquer tout consentement donné en utilisant la prochaine carte de révocation BLUE.
Der Prüfungsausschuss von Paragon Technologies (OTC:PGNT) hat offenbart, dass der ehemalige Vorsitzende und CEO Hesham Gad ohne gültige US-Arbeitserlaubnis das Unternehmen leitete. Der Ausschuss stellte fest, dass Gad absichtlich seinen illegalen Einwanderungsstatus verschleierte, indem er das Unternehmenspersonal anwies, ihn über seine Firma HG Consulting, Inc. als unabhängigen Auftragnehmer falsch zu klassifizieren, ohne Zustimmung des Vorstands. Dieses Fehlverhalten könnte gegen bundesstaatliche und staatliche Gesetze verstoßen haben, einschließlich der Anforderungen zur Steuerabführung. Der Ausschuss befand Gad für ungeeignet, als Direktor oder leitender Angestellter eines börsennotierten Unternehmens zu fungieren. Derzeit versucht Gad, alle Direktoren bis auf sich selbst durch Aktionärszustimmungen abzusetzen. Das Unternehmen fordert die Aktionäre auf, Gads Bemühungen abzulehnen und jegliche erteilten Zustimmungen mit der kommenden BLUE-Widerrufskarte zurückzuziehen.
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Former CEO operated without valid U.S. work authorization, exposing company to significant legal risks
Company failed to properly withhold income taxes and underpaid payroll taxes, violating federal and state laws
CEO deliberately misclassified himself as independent contractor without board approval
Company faces potential fines and penalties due to employment law violations
Ongoing leadership dispute as former CEO attempts to remove current board members
EASTON, PA / ACCESS Newswire / May 2, 2025 / Paragon Technologies, Inc.'s (OTC Pink:PGNT) Audit Committee is providing further details concerning its conclusion that former Chairman and CEO Hesham Gad repeatedly ignored requests to properly classify his employment status in order to conceal his lack of U.S. immigration status and valid work authorization, and by doing so exposed the company to significant fines and legal risk.
Based on the information available to it, the Audit Committee believes that Mr. Gad had been living in the United States illegally without a valid visa and, as a result, lacked legal authorization to work in the country while employed at Paragon.
In order to conceal his true immigration and work authorization status, Gad, without notice to the Board, directed Paragon personnel to misclassify the CEO (i.e., himself) for payroll purposes as an independent contractor with a third-party company, HG Consulting, Inc., which Gad wholly owns. There is no evidence that Paragon entered into a consulting agreement with HG Consulting, Inc. for chief executive officer services and no such agreement appears to have been approved by Paragon's Board.
As a result, Gad's actions, by causing Paragon to knowingly hire an illegal resident without proper authorization to work in the United States, may have caused Paragon to violate federal law. Additionally, Paragon appears to have failed to withhold income taxes and underpaid payroll taxes in potential violation of federal and Pennsylvania and/or Georgia law.
The Committee believes Gad not only ignored, and caused others to ignore, multiple inquiries into his employment classification, but that he actively worked to conceal the issue from the Board. His actions may have exposed the company to additional penalties and fines. The Audit Committee believes these actions constitute a breach of his fiduciary duties to Paragon and its stockholders.
The Committee has concluded that Mr. Gad is unfit to be a director or officer of Paragon, or any public company. We have been notified that Mr. Gad is attempting to obtain written consents from the majority of outstanding shares in order to remove all the company's directors, except himself, and replace them with his handpicked nominees prior to the Annual Meeting. We urge shareholders not to support Mr. Gad or any of his nominees in any consent or proxy solicitation. If any shareholder has provided a consent we urge you to revoke it by completing the BLUE revocation card that will be mailed out to you in the coming days.
For questions or assistance in revoking your consent, please contact Alliance Advisors LLC at (844) 202-6169 or Paragon@allianceadvisors.com.
About Paragon Technologies
Paragon Technologies, Inc. is a holding company owning subsidiaries that engage in diverse business activities, including material handling, distribution, real estate, and investments. For additional information please visit: www.pgntgroup.com.
What violations did Paragon Technologies (PGNT) former CEO Hesham Gad commit?
Hesham Gad operated as CEO without valid U.S. work authorization, concealed his illegal immigration status, and misclassified himself as an independent contractor through HG Consulting without board approval, potentially violating federal and state employment laws.
What are the potential consequences for Paragon Technologies (PGNT) due to Gad's actions?
The company faces potential significant fines and legal risks due to federal law violations, improper tax withholding, and underpaid payroll taxes in violation of federal and state laws.
What action is Hesham Gad currently taking against Paragon Technologies' board?
Gad is attempting to obtain written consents from majority shareholders to remove all company directors except himself and replace them with his chosen nominees before the Annual Meeting.
How can Paragon Technologies (PGNT) shareholders revoke their consent if given to Gad?
Shareholders can revoke their consent by completing the BLUE revocation card that will be mailed to them, or by contacting Alliance Advisors LLC at (844) 202-6169.
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