Digital Gas, Inc.(fka DIGGQ)

[scion]

ORDER AND FINAL JUDGMENT

THANK HEAVENS BRIAN SMITH IS NOT A 'THIEF' ACCORDING TO KATE

just a recidivist ex-con stock fraudster, forger, stock manipulator and all-around weasel, pathological liar and scumbag.

or as Kate puts it "dumb and incompetent"


ORDER AND FINAL JUDGMENT AS TO DEFENDANTS BRIAN SMITH, LYNN SMITH, AND DIGITAL GAS INC.

http://www.state.nj.us/oag/ca/bos/disc/digitalgass.pdf

[EXCERPTS]

FINDINGS

The Court finds that:

...

6. In connection with the offer and sale of unregistered securities, Digital Gas Inc. and Defendant Brian Smith, individually and in concert with others, violated NJSA 49:3-52(a) and NJSA 49:3-52(c) by employing a scheme to defraud and engage in a course of business that operated as a fraud and deceit upon investors by:

a. causing Interwest Transfer Company to issue and transfer shares of Digital Gas Inc. through fraudulent corporate resolutions to individuals, including Lynn Smith and their two daughters;

b. concealing Defendant Brian Smith's position as an officer and director of Digital Gas Inc. and failing to disclose it on Michigan Corporate filings;

c. placing Mr. Lang's signature on Michigan Corporate filings without his knowledge;

d. using Mr. Lang's signature on Digital Gas Inc. corporate resolutions without his knowledge;

e. using Mr. Brown's signature on Digital Gas Inc. opinion letters without his knowledge;

f. causing press releases to be published that make misrepresentations
as to the future which are beyond reasonable expectation or are unwarranted by existing circumstances;

g. manipulating the price and demand of Digital Gas Inc. stock by issuing false press releases;

h. failing to disclose to investors the manner in which investor proceeds would be used; and

i. using investor funds for Defendants Brian Smith's and Lynn Smith's personal benefit.

7. In connection with the offer and sale of unregistered securities, Digital Gas Inc. and Defendant Brian Smith, individually and in concert with others, violated NJSA 49:3-52(b) by making untrue statements of material fact and failing to disclose material facts necessary to make the statements made, in the light of the circumstances under which they were made, not misleading by:

a. failing to disclose that Smith was not registered to sell Digital Gas Inc. stock, nor was he exempt;

b. failing to disclose that Digital Gas Inc. was not registered with the Bureau, or exempt fro registration;

c. failing to disclose that Digital Gas Inc. securities were not registered with the Bureau;

d. failing to disclose to investors that Brian Smith was convicted of securities fraud and wire fraud;

e. failing to disclose that Brian Smith was permanently enjoined from selling securities;

f. failing to disclose that Digital Gas Inc. had no bank account in its name

g. failing to disclose that Digital Gas Inc. had no mechanism of accounting

h. failing to retract Digital Gas Inc.'s press releases when none of the purported business activities came to fruition;

i. failing to disclose that investor funds were being diverted for the personal benefit and use of Defendants Brian Smith and Lynn Smith.

8. Defendant Lynn Smith was unjustly enriched and benefited $__________ from the fraudulent conduct of Defendants Brian Smith and Digital Gas Inc. by:

a. Defendant Brian Smith causing funds of Digital Gas Inc. to be transferred to Defendant Lynn Smith's bank accounts;

b. Defendant Lynn Smith receiving and selling Digital Gas Inc. shares that Defendant Brian Smith issued to Defendant Lynn Smith at no cost for a 100% profit; and

c. Defendant Lynn Smith received the benefit of Digital Gas Inc. paying for expenses relating to the home, including improvements and the mortgage.

By: carmelbeach
10 Dec 2009, 01:39 AM EST
Rating: You rated it: Msg. 12408 of 12410
(Reply to 12406 by kate7282)
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