Last fall, according to documents on file with the federal Securities and Exchange Commission, the younger Blue brothers sold their interest in Alliance to Oceanic Exploration Company, a public company controlled by their father, for $581,000. "Revenue generated by the employment agency averaged $302,000 per month since the acquisition," the filing says, "however, margins remain small mainly due to the highly competitive nature of the industry in San Diego. Alliance spent $92,000 from July through November 2000 on an intensive advertising and marketing campaign that has provided good name recognition." The filing makes no mention of the pending federal lawsuits against the company and the Blue brothers.
Oceanic and its subsidiaries, according to the filing, "have historically been engaged in the business of acquiring oil and gas concessions covering large blocks of acreage in all areas of the world." The company's oil interests are off the coast of Greece, the filing says, as well as the North Aegean Sea, in the East China Sea, and in the Timor Gap, a strait that lies between East Timor and Australia. Last year the firm won an $8,614,789 court settlement from a partner in the Greek oil concessions. It used a portion of that money to pay for the Alliance acquisition, as well as to pay off a $1.2 million note to companies controlled by James Neal Blue. The company was also involved in drilling an exploratory oil well in Finney County, Kansas. The filing says the well turned out to be a dry hole. In all, the company says, its oil and gas interests are worth $39 million.
As for its newly acquired subsidiary, Alliance Staffing, Oceanic says that earlier this year it gave "notice of termination" to Audrey Voyles, Alliance's president, who was named as a defendant in the Kholi case. According to the terms of her three-year employment contract of March 31, 2000, the filing says, "Ms. Voyles is to be paid a base salary of $160,000 per year to perform the duties and responsibilities of president of the Alliance Division. In the event employment is terminated before the contract expires, the employee is entitled to sixty (60) days written notice and six (6) months severance pay, unless terminated for cause. Ms. Voyles was given notice of termination on March 26, 2001. Accordingly, the Company intends to honor the terms of her employment contract."
Attorneys for the defendants in the case have filed documents denying the charges. Earlier attempts at a settlement of the matter ended in failure, and a trial date has been set for next summer.