CASE FOR INVESTORS TO SUE MOLEN FOR FINANCIAL FRAUD: My name is Jorge da Silva Santos founder of ThermoLuz in Brazil who wants to relay what my partner told me in order to prevent investor fraud. My Partner who was sent to Brazil to start an operation for Vega Biofuels has declared his contract with Vega in breach due to Vega no honoring payment terms. After months of requesting capital to support the installation of real energy projects that could produce revenues quickly for Vega, my partner has determined that the company is nothing more than a ponzi operation where press releases on bogus projects are announced permiting the issuance of new shares in order to finance operations. Instead of financing operations; the cash is going to Molen to support a lavish life style traveling all over North America supposedly creating value for the investors. If an investor bought Vega stock based on a press release, there is a case to sue due to financial fraud. My partner in Brazil, Robert Chew has filed a complaint at the SEC and requests that other investors do the same. The proof of the fraud is the following:
Financial statements for 2009: The statements are bogus and do not show where the money derived from the issuance of new shares ended up. The declared operating costs are meaningless. If the SEC audits the financial under a criminal investigation, there will be proof of gross investor fraud. There are no SEC filings for Vega to move to a better exchange. Mr. Molen told my partner that Vega was going to be listed on the New York Stock Exchange. This is dellusional.
Proof of Fraud:
Statement on the Vega website that the firm has seasoned executives and consultants from the energy sector. My partner who worked briefly as a consultant for Vega found nobody knowledgeable and in fact never met any executives or board members since there are none. Mike Molen is the board and the Chairman of a company with no revenue producing assets or real assets for that matter. A company with no intellectual capital, customers and assets cannot create value for investors unless the new investors who believe a press release puts money in the company so that the old investors are paid off. The new capital does not go to create new value unless that value is directed at Molen.
The press release issued on 12/3/2009 to build a biomass plant in Brazil under a JV company called "Biomass of the Americas LTD" was a false press release since no company in Brazil has any agreement with Vega to build a biomass plant. Soon after the Brazil press release, there was a press release on China again with no real credible firms in China. Why would a Chinese group agreed to a JV with Vega if Vega has no capital and no operational talent to develop and run a biomass or biocoal plant? Molen isn't even aware of the operational issues that have prevented commercial scale biocoal plants to be built anywhere in the world.
Green Valley press release on January 5, 2010 stating that the project was to be restarted when it was very doubtful that there was enough methane gas flow to supply even 400 kW of generation. An earlier press release stated a 5 MW project with no technical justification for coming up with that size. There was a press release that gensets were being bought from ARE Energy when no purchase contract was ever signed. The press releases are misleading at best on the Green valley project which in reality does not appear ecenomically viable at any scale that would permit selling power to the grid.
Since it will be impossible to raise institutional capital to invest in and finance Vega assuming that the company had real economically and technically viable energy projects due to the fact that the company is clearly a ponzi operation for Mike Molen, the only way to recover your money is to sue the pricipal of the company being Mike Molen. My partner in Brazil is determining whether it is worth suing over a $10,000 payment which is the value of the remaining consulting payments. My partner has asked that Molen make a press release on Monday stating that he; Robert Chew has nothing to due with Vega. Molen offered Mr. Chew stock a few months ago which was refused by him since Mr. Molen told him that having stock was a great deal since he makes a press release and the stock goes up so that you can sell (Pump and Dump) and put money in your pockets.
THIS IS FINANCIAL FRAUD AND ALL SERIOUS INVESTORS SHOULD DO THEIR PART TO PUT MOLEN OUT OF BUSINESS! FIRST STEP IS TO FILE A COMPLAINT AT THE SEC. FOR INVESTORS THINKING ABOUT INVESTING IN BIOFUELS, LOOK AT THE MANAGEMENT TEAM FIRST AND AT LEAST BE CERTAIN THAT A KNOWN ACCOUNTING FIRM HAS AUDITED THE FINANCIAL STATEMENTS. WHERE ARE THE TAX RETURNS FOR VEGA?