Mesa video game developer axes CEO, files for bankruptcy

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Stargate Resistance

Cheyenne Mountain Entertainment, the Mesa-based developer of the just-released PC shooter Stargate Resistance (pictured), is seeking bankruptcy protection, according to Maricopa County Superior Court minutes dated barely a week after the game’s launch.

What’s more, the company’s board of directors and shareholders have fired chairman and CEO Gary Whiting, who is named in a complaint filed with the Superior Court “alleging various wrong doing against the Company,” according to a news release on the Cheyenne Mountain website (the first in nearly two years, which you can read on the jump).

The statement says the company became aware a few months ago that Whiting was named in a Utah complaint, and that he caused Cheyenne Mountain to be named in the same lawsuit — and put the company on the hook for payments to another he controls, Garvick Properties LLC. Cheyenne Mountain says it has foreclosed on Garvick’s collateral.

“It is uncertain at this time what the affect [sic] of Mr. Whiting’s actions and the pending litigation will have on the Company’s operations and financial condition,” the statement says.

(Thanks to for the tip.)

Calls and e-mails to Cheyenne Mountain’s marketing director were not answered Friday afternoon. (Update: A company representative got back to me via e-mail late Saturday night, responding only with a prepared statement that was issued online the day before.)

Stargate Resistance, which was released Feb. 10, was hastily announced in December to give the company a product on the market in lieu of the long-stalled online roleplaying game Stargate Worlds, which was announced in 2006 as a tie-in to MGM’s Stargate feature film and the ensuing TV spin-offs. Crippling delays, funding shortages, pay freezes and investor lawsuits followed. And yet another Whiting company, Mmoguls, tried to use Stargate Worlds as the centerpiece of a “multi-level marketing” social gaming network promising rewards to investors who recruit other investors; the game’s logos were even featured prominently in Mmoguls promotional materials.

Things were looking up recently for the Stargate Worlds team, with footage from the game showing up in the pilot episode of the new Syfy series Stargate Universe and optimism fueled by an increasing flow of information and showcased content.

The company’s notice about Whiting also appears on the website of its affiliate FireSky, the game’s publisher:


Feb 19, 2010

MESA, Ariz. – February 16, 2010 – Gary Whiting, the Company’s former, Chairman and former CEO of its subsidiary Cheyenne Mountain Games, Inc. has been named in a complaint filed in Maricopa County, Arizona Superior Court by shareholders, derivatively on behalf of Cheyenne Mountain Games, Inc. and Cheyenne Mountain Entertainment, Inc., alleging various wrong doing against the Company.

The Company also became aware a few months ago that Mr. Whiting, was named in a complaint filed in Utah County, Utah, (Case No. Civil 0904022438), and that he has caused the Company to be named in that same lawsuit, and he has allegedly obligated the Company for monies paid to Garvick Properties, LLC, a limited liability company controlled by Mr. Whiting (“Garvick”).

Mr. Whiting and Garvick purchased various securities from the Company and its subsidiaries and has failed to honor the terms of these purchases and has failed to pay the payments when due; therefore, the Company and its subsidiaries have foreclosed on the collateral securing Mr. Whiting’s and Garvick’s obligations including all shares and units owned by Garvick and Garrick Enterprises, LLC.

The shareholders and board of the Company have removed Mr. Whiting as a board member and as an officer and terminated his employment with the Company and any of its subsidiaries. The Company has joined the litigation against Mr. Whiting for alleged wrongdoing. More information about the litigation can be found at

It is uncertain at this time what the affect of Mr. Whiting’s actions and the pending litigation will have on the Company’s operations and financial condition.

About Cheyenne Mountain EntertainmentTM

Cheyenne Mountain EntertainmentTM is an interactive entertainment company located in Mesa, Arizona. Cheyenne Mountain Entertainment’s first product is a 3rd person shooter based on the popular science fiction television series, StargateTM SG-1 and StargateTM Atlantis. For more info on the company, visit the company’s website at For more info on Stargate Resistance, visit the new community site at

About FireSky

FireSky is a publisher and part of the Cheyenne Mountain Entertainment group of companies. FireSky’s current published product is Stargate Resistance, based on the longest-running U.S. science fiction television series Stargate SG-1® and Stargate Atlantis ™ which are officially licensed by MGM Interactive. For more information, visit the company’s website and the Stargate Resistance community site at

Cheyenne Mountain Entertainment, FireSky, the Cheyenne Mountain logo and the FireSky logo are trademarks or registered trademarks of Cheyenne Mountain Entertainment, Inc. in the U.S. and/or other countries. Stargate SG-1TM and © 1997—2006 Metro-Goldwyn-Mayer Studios, Inc. All rights reserved. All other trademarks or tradenames are the property of their respective owners. Statements herein concerning future events and developments and the Company’s expectations, beliefs, plans and estimates constitute forward-looking information that involves risks and uncertainties. Cheyenne’s actual results could differ materially from those indicated by the forward-looking information.

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