Merrill Lynch attempts to cover financial mismanagement and possible violation of the RICO Act through destruction of local company.

Multiple attempts to bankrupt company thwarted by joint efforts of employees and management to resist Merrill Lynchs strong arm tactics.

San Marcos, CA, March 1999 -- December 2002: The dramatic retraction of a $2.7 million company last fall in San Diegos North County was caused by the mismanagement and intentional attempts by Merrill Lynch relationship managers to cover their tracks, attorneys for Quality Assured Distributors, Inc. have concluded. Through the mere exchange of relationship managers, the once dominant bakery and deli food equipment service company fell prey to uninformed and careless decisions of the Merrill Lynch management system that may include violations of the RICO Act (Racketeer Influenced and Corrupt Organizations) without considering the business and the forty families it supported .

A David versus Goliath Struggle

Quality Assured Distributors, Inc. and Merrill Lynch entered into a Loan and Security Agreement in March of 1999. From that point until December of 2000, Quality Assured with the cooperation of its relationship manager from Merrill Lynch, Marc Weirs, was encouraged and able to grow sales and market penetration to become the most prominent independent service company in Southern California with satellite offices in Nevada, Arizona, Oregon and Washington state. Quality Assured was founded in 1989 with just $32.00 and had grown to over $2.7 million in sales with no less than double-digit growth every year, making it a great candidate for a relationship with Merrill Lynch. The goal of Quality Assured and the funding by Merrill Lynch was to build the company for an acquisition and national expansion. During this time and through its business practices, Merrill Lynch provided the encouragement and money to expand throughout the southwest and coastal states. However, in December 2000 while in the midst of Quality Assureds busiest season, a software conversion, and the turnover of accounts from one Merrill Lynch manager to another, the whole relationship took a nosedive, even though the note payments were in good standing. The original relationship manager, Marc Weirs, was being transferred and unaware who the incoming relationship manager would be. He warned Quality Assured to be prepared because the new relationship manager would not be as familiar with the account, the Company, or it goals and earnings potential. Then, in careless disregard of past policy and their business practices, Merrill Lynchs new relationship manager called both of Quality Assureds notes totaling over $600,000. and demanding immediate payment.

Within days of Christmas 2000, Merrill Lynch immediately severed its relationship and bounced all of the outstanding Quality Assured checks for its vendors and payroll. As a crisis measure and with the cooperation of employees and management, Quality Assured started a rapid market retraction and shifted into a survival mode to support only its core business markets. During the next six months Merrill Lynch had rejected every reasonable measure that Quality Assured had offered to make good on its debt and instead chose to pursue a lawsuit against Quality Assured and immediately attempted to put a receiver onsite to liquidate the business. Albert Zappia President and CEO of Quality Assured Dist. Inc. states: Martin Aguilera of Merrill Lynch was not satisfied with the previously accepted and agreed upon $20,000 monthly payment plan that we were currently paying and demanded that I immediately Quitclaim all of my personal real property over to Merrill Lynch as another form of collateral, even though Quality Assured had sufficient collateral on it books to cover the note. I viewed this request as a form of extortion and refused their demand." In June of 2001 the Merrill Lynch contact, Martin Aguillara, and M/L attorney Craig Wellen of Frandzel Robins Bloom & Csato L.C. a Los Angeles California Law firm threatened that they would have Quality Assured shut down in 24 hours and filed suit against Quality assured and Albert Zappia personally. Quality Assured has successfully resisted their attempts to make good on their threat.

To date, Quality Assured has been able to pull down the Merrill Lynch corporate shield and file lawsuits against the relationship managers Mike Chock, Marc Weirs and Martin Aguilera all out of the Chicago office of Merrill Lynch. This case is scheduled for trial in March of 2003. Mr. Zappia is exploring the possible RICO Act violations, while continuing to defend the lawsuit brought on by Merrill Lynch.

Quality assured asks for any persons or companies that have had similar experiences with M/L to contact Albert Zappia at Quality Assured 760-471-2226.