Securities: investor wins action against directors in pump and dump claim

The scheme was complicated: according to Toledo, Bibiyan and others "others issued numerous false press releases and other statements to induce investors, including Toledo, to purchase shares. The court determined that this fraudulent conduct created an artificially inflated stock price, and determined that as part of the scheme Bibiyan would dump shares for which he had paid no adequate consideration."

It is also alleged "the court determined that the evidence showed that from May to July 2004 Bibiyan caused the Company to issue 18,500,000 shares to a number of entities for no consideration, and then allowed such entities to sell those shares in the public market. In addition, in accordance with the unrefuted evidence the court determined that Bibiyan improperly controlled the Company and under Bibiyan's control, the Company never had a bank account, prepared financial statements or tax returns, or held any shareholders or board of directors meetings."

According to a statement issued by Toledo today, 17th September 2010, "Toledo began purchasing Company stock in August 2004 and eventually owned 2,336,862 shares. After Toledo became aware of Bibiyan's improprieties he tried to get Bibiyan to deliver all corporate documents of the Company and return all shares of the Company in order end Bibiyan's involvement with the Company in the hope that the Company could be properly operated by a legitimately elected board of directors. Bibiyan did not turn over the corporate documents, shareholder lists, or return his Company shares. Instead, Bibiyan actually issued himself an additional 1,800,000 shares of unrestricted Company stock.

"On 8 August, 2010, the Court issued a judgment against Bibiyan and his alter ego companies. The court awarded the Company USD11,892,000.00 in damages for the securities frauds, an additional USD100,000.00 in breach of contract damages, with ten percent pre-judgment interest on the contract damages, and USD16,646.29 in attorney fees solely for the contract damages claims. Furthermore, the Court awarded Toledo and his co-plaintiff damages in the amount of USD219,578.00 for their stock losses caused by Bibiyan's adjudged securities frauds.