DD Support Board and Research Team

[jurisper]

Some diligence concerning Virl Genetics (VRAL on the pinks), long-running AIDS drug story, now branching out into clean energy. In particular, their IR firm, Imperial Consulting Network www.thinkimperial.com which includes the pathetic "Biotech Stock Review", "Wide World of Stocks" etc.

- Dissolved the other day by NY state, I think because of failure to pay state taxes. Check it here: http://www.dos.state.ny.us/corps/bus_entity_search.html

- CEO of Imperial is one Hugh W. Austin. See eg http://eon.businesswire.com/news/eon/20101209006258/en/VRAL/Viral-Genetics/Wide-World-of-Stocks

- Austin was CEO of NY International Commerce Group Inc (a dba for Interlock Services Inc, and also 2DoBiz). This is the entity that VRAL contracted with in 2002 to pursue distribution in China, which I think led to the unapproved trial by Beijing Ditan Hospital in 2003. This was a PR disaster for VRAL, with negative publicity in Newsweek, the FT and elsewhere. Eg: http://www.newsweek.com/2005/04/11/meds-and-miracles.html

- Austin's unedifying history includes a ** $117M ** default judgement against him in favor of the court appointed receiver on accusations of assisting James Capwill to launder money in the Liberte viaticals scam. Case # 1:03-cv-02550 in USDC Ohio northern district.

- Imperial Consulting's Port Jefferson NY address is shared by something called Wonderland Capital. This is/was controlled by Austin and one Paul Giarmoleo. (Ref filings in 1:2008-cv-01707 in USDC Colorado eastern district).

- Giarmoleo is an ex-First Montauk Securities broker who was also accused by the receiver of assisting to launder Capwill money in the Liberte affair. (He & First Montauk settled). He has a bad FINRA sheet, culminating in one year suspension + fines for fraud in 2008 (check http://www.finra.org/Investors/ToolsCalculators/BrokerCheck/ ) He does not appear to have been employed as a broker since then.

- I don't whether Giarmoleo has a formal position with Imperial Consulting but both he and Austin were issued "consultant" shares by VRAL under the same 2007 S-8. See http://www.sec.gov/Archives/edgar/data/1091326/000121465907001592/0001214659-07-001592-index.htm

- The S-8 also gave shares to one Jeremy Draper, an associate of Austin and Giarmoleo (see filings in the Colorado case mentioned above).

- And also to lawyer Martin Weisberg, who was indicted for fraud in 2007 in the Xybernaut/Ramp affair. See http://www.nytimes.com/2007/10/20/business/20trader.html Up until this indictment, Weisberg was VRAL's lawyer in the T&T litigation. Weisberg was also involved with Austin's Interlock at the time it was known as or becoming or whatever 2DoBiz, a US/Canadian operation of substantial shadiness, and one of the vehicles mentioned frequently in the Liberte receiver's actions against Austin and others.

- As the dubious cherry on top of this dubious confection, VRAL's auditor/accountant Myron Landis was CFO of Interlock/NY Int'l Commerce while Austin was CEO. See eg: http://www.sec.gov/Archives/edgar/data/1096297/000091068002000800/f857066.txt

- Austin and Giarmoleo's Wonderland Capital garnered 35M+ free trading shares in VRAL in the period 2007 - Apr 2010. See VRAL's pink sheets initial disclosure statement http://www.pinkinvesting.com/uploads/reports/pdf/4853/Annual_Report_-_Information_Statement_08221954.pdf Majority priced at 2c, some at 5c. The disclosure statement glosses these as "issued for cash in private placement" - not sure how the "free trading" part works in that case. Dates are not given but get the impression that some/most were issued at the same time that VRAL arranged for Corey Ribotsky vehicles, Double U Master Fund etc to swap their outstanding convertible debentures for similarly price free trading shares.

- Not clear how many, if any, of these were issued before the mid-2009 pump and dump in which Imperial Consulting played a large part on the pump side (eg through their Wide World of Stocks broadcasts).