You can find the court docs online. Doing my DD, I read them. Everything below can be found in those docs.
OSCI lawyer, Robert Goulding, is accusing OSCI of not paying almost $200k in legal bills. Goulding did the work to acquire PYHH, turn it into OSCI (inlcuding stock issuance, acquisition of kapacke, etc. - everything required to get OSCI to where it is now). He says he resigned as their attorney after they issued the press release about receiving the $20M in financing. Goulding says that press release was misleading and constituted securities fraud. When they refused to retract or change it, he says he resigned so as not to be a party to securities fraud. In his billing invoices attached to court filings, he worked on settlements with shareholders and releases of liability for kapacke claims (assuming claims from kapacke investors or creditors).
OSCI filed a bunch of counterclaims, the only ones that survived challenge were breach of fiduciary duties, unclean hands, and illegality. Court docs say those claims will be decided at trial. Four counterclaims remain to be decided at trial, all having to do with fraud on Goulding's part. The fraud claims stem from Goulding's alleged (by OSCI) felony record. Goulding is supposedly still admitted to practice law and he's claiming even if there was fraud, it didn't damage OSCI at all. (Does anyone think OSCI didn't seek out a shady lawyer on purpose, anyway?)
The trial is to decide those claims. The parties apparently refused to settle. Taking what I read in the court docs as true (on both sides) it seems like Goulding has a stronger case than OSCI, in my non-expert opinion, but I could be wrong about that. I found Goulding's docs more convincing than OSCI's but I guess what comes out at trial could be different?
What all of this comes down to is every step of the way everything OSCI has done has been shady. Why acquire PYHH to go public instead of bringing OSCI public by itself? Why hire a shady lawyer and attempt to enter into a supposedly illegal agreement to create OSCI from PYHH? Why wait over a year to make your disclosures? If Pat Pizzoferato is the operator, why isn't this name on any company documents? Why is his wife the representative of PIzz Inc instead of him? Why is Monica Klenczar the President of PIzz, Inc instead of Pat? Why does Tracy Pizzoferrato (representative of Pizz) or Monica Klenczar not once show up on Goulding's billing logs/invoices, but Pat and Chris Tarquinio's names are all over the place? Most importantly, what are a bunch of people from Ohio with NO BACKGROUND IN MINING doing operating a gold mine? I guess we'll find out on November 14.
