Sometime in May of 1984, I entered into discussions with Steve Harvey, President of Harvey Publications, Inc., to purchase certain original art and the complete comic book inventory stored in Harvey's warehouse in Brooklyn, New York.  It should be noted at the outset of this statement that Steve Harvey, at this time, was also President of Sad Sack, Inc., a wholly owned subsidiary of Harvey Publications, Inc.  In telephone discussions between myself and Steve Harvey, the outline of the agreement was structured.  On May 23, 1984, I confirmed my initial oral offer in writing for the comic book inventory in the Harvey warehouse for fifty thousand dollars ($50,000.00).  I also agreed to return extra copies of comics to Harvey for their editorial purposes based upon an agreed schedule.

On May 29, 1984, Steve Harvey wrote to me to advise of conditions for sale of the artwork.  The minimum bid for pre-1955 Harvey Comic original art was fifty thousand dollars ($50,000.00) without rights to merchandise with the sale to be subject to the final approval of the receiver of Harvey Publications.  Bids were to be received by Steve Harvey not later than June 1, 1984.

On May 31, 1984, I submitted a bid of forty thousand dollars ($40,000.00) for pre-1955 original artwork and fifty thousand dollars ($50,000.00) for all artwork (pre and post-1955 original artwork) and to remove all artwork from Brooklyn to my warehouse in Baltimore thus saving that cost to Harvey.  This bid was submitted to the attorney for Harvey, Lewis Siegal.  It was noted in this bid that if Harvey only would sell the pre-1955 artwork the discussions would have to be held as to how to separate the artwork and the allocation of incurred expenses for that separation.

On June 1, 1984, Steve Harvey and I, on behalf of our respective companies, entered into an agreement for all of Harvey's stock of back issue comics in the Brooklyn warehouse.

On June 12, 1984, I wrote to Steve Harvey confirming my oral offer for pre-1955 original comic art (the entire inventory in bulk) in the Brooklyn warehouse and noted Harvey's acceptance of that offer.  I had been aware that Harvey was no longer publishing comic books and had fallen into bad times and that was most likely reason why they were reaching this agreement.  The books and artwork could easily have been thrown out into the street by the landlord.

On June 13, 1984, I, on behalf of Geppi's Comic World, Inc., entered into an agreement with Harvey Publications, Inc.  Steve Harvey, then President of Harvey Publications, Inc., executed this agreement on their behalf.  This agreement called for Geppi's Comic World to pay the sum of fifty thousand and three dollars ($50,003.00) for the pre-1955 original artwork of Harvey which was stored in the 'Sofia' warehouse in Brooklyn, New York.  No representations were made by Harvey as to either the condition of the artwork or as to its quantity but they did state that they knew of no adverse claims of ownership or title to this original artwork.  Geppi's Comic World agreed, at its expense, to 'pack, sort and remove the artwork by June 13, 1984.'  Harvey, as it was explained to me, could no longer afford the rent on the warehouse space and, in fact, the landlord had terminated their lease for non-payment.  So I agreed that if the art was not removed by that date, I would pay fifty dollars ($50.00) a day for each day after June 13, 1984 that the art remained in Harvey's warehouse.  As a result of this agreement, I did not obtain any rights to reproduce the art but only the physical art for resale purposes.

I then arranged to have all the comic inventory and original pre-1955 art removed from the Harvey warehouse and taken to my Baltimore warehouse.  Upon entry into the Harvey warehouse, it was discovered that it was almost unmanageable.  It was a total mess.  Artworks were laying on the floor, word balloons separated from the art was scattered on the floor, artwork from different comics and different years was stuffed into the same envelopes, it was totally unsorted and unorganized.  There was no way anyone could determine what was pre or what was post-1955 original comic art.  Because of this situation and the fact that Harvey's landlord had terminated their lease, it was agreed that I would remove everything from the warehouse (including the post-1955 art) and move it to Baltimore.

The contents of the Harvey 'Sofia' warehouse were stored in Geppi's Comic World's warehouse for eight (8) years without Harvey paying any rent for the storage of the post-1955 original art.  I did not sort the artwork because, in my estimation, the man-hours of knowledgeable people required to do so would far exceed the value of the artwork.  There was no market existing for this artwork but I loved Harvey's Richie Rich and thought that a framed piece of that art would be unique and potentially a market could be developed.  It never did.

Over the years I would speak with Steve Harvey to ask if there was any urgency in sorting the material and returning the post-1955 art.  I was always assured that there was no urgency and that they wanted me to continue to store the art.

I understand that Alan Harvey has stated that he spoke with me in 1987 or 1988 and that I told him that I did not possess any post-1954 Harvey art.  This is not true.  I have never spoken to Alan Harvey about this or any other matter or on any occasion.  In fact, the opposite is true - I kept Harvey Publications aware that I was storing their post-1955 artwork - free of charge to them.

Some five (5) years later Harvey Publications, Inc. was sold and merged.  I now learn through documents produced in this case that Jeff Montgomery of HMH Communications, Inc. created an acquisition company to purchase for 7.9 million dollars and to merge with Harvey Publications, Inc. and its subsidiaries with Harvey Publications, Inc. to emerge as the surviving company. 

In March of 1992, I was contacted by Jeff Montgomery, now the sole stockholder, Chairman and Chief Executive Officer of Harvey Publications, Inc., and Kevin Bricklin who inquired about the post-1955 artwork.  During that discussion and others which followed, Jeff decided to give the post-1955 original art to me in exchange for the eight (8) years of storage rent.  He did not see a market for this artwork.  On April 6, 1992, Mr. Montgomery wrote to me to confirm that arrangement.  I quote from his letter:

Dear Steve,

This letter confirms that Steve Geppi and Diamond Comics owns all original artwork created by or for Harvey Comics produced prior to 1989 of which you are currently in possession pursuant to the purchase agreement dated June 1, 1984.

Very truly yours,

HARVEY COMICS ENTERTAINMENT, INC.

Jeffrey A. Montgomery

Based upon my discussions with Jeff Montgomery and his letter of April 6, I now owned both the pre-1955 original Harvey art and the post-1955 original Harvey art.

Later that year, I sold and/or traded all of the Harvey artwork to Alexander Galleries who sorted out the art and began to sell and auction it.  In July of 1992, I received a letter from a law firm purporting to represent Harvey Comics Entertainment, Inc.  In that letter, Harvey's lawyers recited that Alexander Galleries was in the process of sorting the artwork and planned an auction of the artwork in October.  Mr. Montgomery, the letter said, visited Mr. Alexander Acevedo, the owner of the gallery and noted that post-1955 art, editorial bound volumes and animation cells existed.  The lawyers asserted that I could not transfer this material to Alexander Galleries.  My lawyer then wrote to Harvey's lawyers in August.  In that letter, it re-affirmed my ownership of the editorial bound volumes, the animation cells and, most particularly, the post-1955 artwork based upon the original contract and the April 6, 1992 Montgomery letter.  No further word about this matter was made by either Jeff Montgomery or his lawyers.  I understand that Harvey had reached an agreement with Alexander Galleries which ended their concerns.

Alexander Galleries then conducted their public auctions and public sales of the Harvey artwork.  No secret private transactions occurred to my knowledge.  All sales were above board and known to the public at large - to anyone who was interested.