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Daniel C Montano is winning awards again. He is a leading light and serial entrepreneur in the biotech sector. Well done Dan. We are all busy buying tickets to come to the July dinner so we can applaud your amazing achievement !!
https://www.globenewswire.com/news-release/2021/06/17/2249239/0/en/Mr-Daniel-C-Montano-CEO-is-recognized-as-Biotech-Entrepreneur-of-the-Year-and-Dr-Marc-Kahn-as-Medical-Professional-of-the-Year-by-the-Nevada-Biotechnology-Health-Science-Consortium.html et
Daniel C Montano - he does ! That is all he knows.
Ho Ho Ho.
CVBT is worthless;
CVBT is dead in the water;
CVBT owes money;
CVBT can’t pay its bills;
CVBT has lost all litigation;
Just imagine if any of that was true.
Just imagine if Montano was in charge;
Just imagine who Montano would appoint as fellow directors;
Just imagine how he would try to develop the science;
Just imagine how someone who was the largest shareholder, lost all his shares and was forced into personal bankruptcy protection;
Just imagine the best part - the part where Venturis T is successful and how bitter, twisted, angry Montano becomes. Not only that, just imagine how his family members will feel towards him, knowing all this was within their capability but under the leadership of Montano, they lost it all. Everything. The lot !!
The final chapter in his completely underwhelming corporate career and his personal life. A total dolt!!
When is Dan Montano and his extended family members returning to take control at VT? He has had 10 years to develop his take back strategy, so surely he /they must be making their move soon. Come back Dan and lead us long suffering shareholders to the Promised Land.
Seize the day!
I am totally excited today. So happy that Dan M had had such a famous victory over Conman Calvin that now, armed with an amazing arbitration award of a gazillion dollars that he will now set about doing all the amazing things he tried to, but was ultimately stymied from achieving when he was the main man in charge of CVBT.
Dan is a pioneer. He has always been a pioneer. It is just sad he is and was so misunderstood. He is a great all round, good guy. He is a philanthropist at heart. That is why he wants to bring science that he stole from CVBT to the good people of Mexico. And from there, to t he world.
Imagine a world where everyone was like Daniel C Montano. How much better would society be! His family would be right up there, spoken about in terms of Buffett, Gates, Bezos, Musk, ... all the legends.... After all, that is how they achieved their success - loading their Board of Directors in those early days with family members - wife, ex-wife, brother, son, brothers son, mistress, mistress’s son...... Safety in numbers I say!!
And Dan was always good with numbers !!! That is why all his high market cap companies ended up being Low market cap companies. Yes, his legacy is secure. The best destroyer of wealth the capital markets has ever seen. A true legend! CVBT was lucky to have him in their corner; a true champion of shareholder’s interest.....
VT is worthless. There are so many messages posted here claiming VT is a worthless zombie company that these messages just have to be true. I mean, why on earth would anyone post the same 15 messages every single day if they were not true. That just makes no sense, does it. I am just really glad we have posters here wanting to defend the Montano legacy of CVBT back in the day. And it is awesomely great that Montano is going to get a decent amount of back wages from the arbitration award - because that means his many other Creditors will know about his good fortune. And they will be on hand nearby ready to demand they get paid some of the much larger amounts of money Montano owes to numerous people over the years when he was the fearless and successful leader of CVBT.
Dan Montano has been nominated for the Nobel Peace prize. Well played Dan and hearty congrats. You are the shining example of a person who never gives up. Well deserved nomination and we sincerely look forward to your acceptance speech..... And after that, apparently the floor is thrown open to the waiting journalists, who by all accounts are very confused by your pathway to success. But never fear, this is your chance to set the record straight Dan. Your supporters are behind you .... all the way man!
Such an exciting day.
Does anyone know when Montano will collect his arbitration award from VT? I am really looking forward to reading a message hear the money is in his bank account, since then he will be able to get Zhittya Regenerative moving forward. Exciting times for Montano and his supporters !
How many here agree ?
Dan Montano’s clear victory over CAW extends to Dan losing his interest in 30m shares, running up huge personal liabilities such that he filed for bankruptcy protection, lost pretty much every litigation he was involved with from 2010 until 2020.
And now, having won an arbitration award for 850k, even if he can figure out a way to collect on this, his creditors are already standing in line at his front door.
Funny how we all have different perceptions as to what constitutes victory.
Would the results of a medical trial conducted in Mexico on presumably mostly Mexican people be accepted as conclusive by the FDA?
How and when Daniel C Montano can emerge from personal bankruptcy. Long road ahead though for him as quite a few are lined up to start fresh litigation. As they say, what goes around comes around. Another thing they say - never start a fight you can’t finish. I feel for his children though.
When To Expect the Discharge:
If your bankruptcy chapter proceeds as planned—you satisfied all requirements and no one successfully objects to your filing—you'll receive the discharge at the end of your matter after you've done the following:
filed the official petition, schedules, and required local forms
provided the court with accurate documentation of your debts, assets, income, and financial dealings
attended the meeting of creditors (and the confirmation hearing in Chapter 13)
participated in a session with a credit counselor and taken a financial management course, and
if filing under Chapter 13, made all of your payments under your repayment plan.
The court will notify you by mailing out a document called an "order of discharge." The order won't close your case, however. The case will remain open until the bankruptcy trustee—the official who manages your matter—disperses available money to creditors, or until any outstanding bankruptcy litigation ends.
I asked yesterday how does one invest in Zhittya, but that message seems to have been removed. Very strange. So how does one invest in Zhittya? I am already invested in CVBT/VT but since Montano is coming into money soon, it would be good to hedge my bets. Thanks in advance .
Yes, that is a really great idea. If all VT shareholders supported Dan then he would have a few quid to be able to settle his many debts. Maybe that would restore his faith in humankind.
Does Zhittya have any patents, assets or revenue streams?? Does anyone know - if you do, please share with us all. And if Zhittya does, then fabulous news because they can use the registered patents or assets to raise funds to endeavour to progress their science. And that would be a really good thing for humankind as well.
I am sure there are noticeable and distinct differences in the Zhittya patents and science v the CVBT patents and science. That is good, because we really would not want further litigation on the merits or otherwise of copycat science. All shareholders in CVBT and Zhittya have surely had enough of that by now. I know I have.
It is good that Zhittta has been progressing its science in Mexico since that is a different market, different type of patient and different health regulator as compared to what CVBT is looking to do in the US. Yes, very good that Dan had the common sense to pursue his science (even though it is remarkably similar to CVBT science) in a different country. Let us keep potential litigation to an absolute minimum I say !!
I must admit, I have never felt more confident that Dan’s science in Mexico and Calvin’s science in USA is getting on track. Finally both will be able to do good things for mankind. And in these latter stages Covid pandemic, I will happily take all good news possible.
So thank you both. I hope you have a fair wind and you make great progress and headway. And also that the biotech regulators support both scientific endeavours fully. God speed !!
Twd - life is a journey so let us first fact check how CVBT got to where it is today. Then we have the background information to calmly and openly discuss where it may hopefully go in the future.
What the Court documents indicate it there has been a whole heap of litigation between the Montano faction and the Wallen faction. The early litigation was brought by Wallen faction to remove Montano faction from the running of the company. In successfully doing that, Montano lost control of his 30-odd million shares, had to file for personal bankruptcy, and had a Court ruling he was liable for personal guarantees extended by him to Wallen amounting to approx $2m.
To Montano’s credit, he was trying to make CVBT work by giving his personal guarantees to corporate borrowings of CVBT back in the day. But sadly he didn’t manage to deliver on strategy and financing back then. Having lost his shares in CVBT, he was then no longer required to act in the best interests of shareholders since he no longer was CEO of the company.
There is a plethora of Court documents narrating the efforts of Wallen to keep the ‘lights on’ at the company and the attempts by Montano setting up in opposition to the company. That has all finally been ruled on by various judges and also an Arbitration forum. The outcome is Montano was awarded some $900k award for back wages earned but unpaid for his efforts when still employed as CEO back in 2012 and 2013 mainly.
Do we need the detail of how we get to that - not really. But anyone that is interested in that can ask here and I will post what I can from the Court extracts.
Hopefully if the detail behind the litigation events of the past near 10 years is brought out into the open, those shareholders and others interested in discussing the future potential of this company will be able to do that rather than any conversation being quickly drowned out by references to the company history. That is all in the past - shall we try and look forward to seeing if the Wallen faction can now deliver what the Montano faction sadly didn’t manage to.
The Proxy Fight for Control of CVBT.
https://www.docketbird.com/court-documents/Cardiovascular-Biotherapeutics-Inc/Amended-Motion-for-Summary-Judgment-with-alternative-relief-with-Certificate-of-Service-Filed-by-FRANKLIN-L-BROYLES-on-behalf-of-CARDIOVASCULAR-BIOTHERAPEUTICS-INC-related-document-s-68-Motion-for-Summary-Judgment-filed-by-Alleged-Debtor-CARDIOVASCUL/nvb-2:2018-bk-15410-00080
A short extract below is copied from the above link/ Court record. Stick with me - there are 2 sides to the entire story.
Prior to 2012 Calvin A. Wallen, III was a major lender to and investor in CVBT. Wallen became concerned that CVBT was being mismanaged and initiated a proxy fight for control of CVBT, the alleged debtor. CVBT is a corporation chartered in Delaware. In 2013 a Delaware court adjudicated the Wallen proxy fight for control of CVBT. There were two factions: the Daniel C. 20 Montano ("Montano") faction and the Calvin A. Wallen, III ("Wallen) faction. The Wallen faction prevailed and the Montano faction was totally removed from management by the Delaware Court. Genuine copies of the two orders entered by the Delaware Court are attached as Exhibits 1 and 2 to the Motion and the Affidavit of Wallen. (Case 18-15410-gs Doc 80 Entered 12/11/18 19:54:58 Page 3 of 17 1 B.) The Chapter 7 Bankruptcy of Daniel C. Montano. At the time that Montano was removed from CVBT as a manager Montano had personally guaranteed over $2,000,000 of debt owed by CVBT to Wallen. Wallen sued Montano under the guarantee and obtained a state court judgment for the debt. Wallen began collection actions, which caused Montano to file a voluntary Chapter 7 in this District.
Battle for control of CVBT 2014.
https://www.casemine.com/judgement/us/5914e616add7b0493490b6b7
The link will help inform readers of the skirmish for control of CVBT starting back in 2014. Whilst this Opinion did not allow Wallen to gain control of the CVBT Board, it put in place a stand-still agreement until a next motion was filed and confirmed which allowed shareholders to vote for the removal of then CEO Dan Montano and his family members, being replaced by Calvin Wallen and various biotech and finance professionals.
I will post links to subsequent litigation outcomes over the upcoming days. The intention here is to be factual about what has happened from Calvin Wallen gaining control of CVBT up to now, including the successful award of initially $900k plus costs to Dan Montano for back wages in 2012/13.
I believe this message board will be better served for all if factual information is posted. I believe Court transcripts can be taken as factual documentary evidence.
I am still confused though. You mention what has been posted by others here - you are the main person posting about the terrible state of the company. And now the lawyers have confirmed your views - no assets and no income stream and laughable IP. So basically, as you have often said here, it will soon be time to turn the lights out.
There is an incredible amount of previous litigation over the years, which has cost me a small fortune to download from Pacer etc. The content is so rich that basically they should write a book or sell the movie rights. I am no lawyer myself but basically I believe where matters stand are as follows:
Montano has won an arbitration award of $900k less $50k set-off. Plus some costs. This is for back wages in the period when Montano and team were still trying to keep the lights on themselves and spending the lifeline funding provided by Wallen. Sadly they didn’t succeed in keeping the company afloat, and the loans and funding extended by Wallen, which were underpinned by Personal Guarantees issued by Montano to Wallen, were called in. Montano obviously couldn’t pay back and eventually, after an extended legal tussle, Wallen won control of the Board through a shareholder vote majority and the Montano faction was removed.
This particular story has played out countless times over the years. The detail of the extended litigation and arbitration is ‘a good read’ but ultimately things are what they are. And what are they?
Montano wants his back wages awarded by the arbitration award paid to him. And Wallen wants the money he provided to try keeping the company afloat when Montano was earning those ‘back wages’ repaid. In my mind, our next litigation instalment will be all about whether the Personal Guarantees provided by Montano were fair and reasonable given the then circumstances. No doubt Dan will challenge and Calvin will defend - but at some point in time, in order for Calvin to collect on the personal guarantees, Calvin will have to attack and Dan will need to do some defending of his own.
Others here are saying the personal guarantee amount due Wallen is $2.5m - I haven’t had time to look back through all the historical Court transcripts yet, but give me time.
Maybe the Arbitrator was a clever guy in awarding Dan such a high amount for ‘back wages’ of around 900k for a 2 year period. He acknowledges that Dan was at significant personal risk as a result of the personal guarantees he provided to Calvin at that time, and was therefore highly motivated to work hard for himself and the company in order to ensure the PGs were never exercised.
Ultimately though Dan again failed in these efforts which sadly for him is a recurring and consistent trend. But it does leave the onlooking shareholders with a potential ‘thrilling final chapter’ in this painfully long running saga.
I am a bit confused Walhall. If Cannaday says the patents are worthless, why then would Montano want to spend lots more cash seizing control of them? Especially if, as you say in your post, they are ‘laughable to begin with to anybody outside this company’.
Yes, a sad state of affairs this. Dan is lucky then his shares were taken from him and put into estate upon bankruptcy when having some value. Any left now would be totally worthless. And he doesn’t get his 900k either. He has been really unlucky with his CVBT association.
Today is Tuesday 10th. Friday the 13th will soon be upon us. And for someone, the end is nigh ......
Tick tock. Only 5 more sleeps.
Just about one week to go ....
Only 2 more weeks before Dan Dan the Bankrupt Man becomes Dan Dan the incredibly Bankrupt and Broken Man. Hope the kids are prepared to maintain him in his old age. A lifetime of endeavour that pretty much shows everything he tried or touched ended up in failure. And still he will claim it was somebody else’s fault.
Thanks for the 3 messages HalesYes - they were interesting and informative to read!! It seems you are saying things completely at odds and contradictory to the things that Walhall posts. I, like many other interested yet confused posters on this message board look forward to seeing which side wins out in the end.
As in all contests, whilst there may be lots of noise and confusion along the way, generally by the time we hit the winning post, the best man is the last man standing.
It seems to me, as a long suffering shareholder, that CAW and team seem to be in the ascendancy. But what do I know.
Walhall what is your view of the damages hearing scheduled for determination on 13th December? Likely to go the way of CVBT (who are awarded damages) or Mrs Montano and accomplices (if no damages are found to be liable, then I assume that means vindication of sorts for Dan M).
I appreciate none of us know what the outcome will be here - but I would be interested in your informed view. Or anyone else with a view is welcome to share their opinion. Thanks
Thanks for this post. You mention the arbitration to be settled in November. For the benefit of those not entirely familiar, what is the arbitration to resolve? And surely the company must incur financial loss in order to be claiming $30m damages - what would be the basis of loss for such a bumper damages award?
Yes keeps getting pushed which must keep adding to anxiety levels all round. Knowing something is coming and not be able to do anything about it - like being followed around with a big black cloud overhead morning noon and night. Endlessly depressing and worrisome.
Where do I sign up for the trial ....
I wonder why the regular weekly reminders about CAW litigation has slowed down dramatically. Might the principal perhaps be trying to negotiate their position perhaps and they have been told to wind in their necks.
A decision on what ? You didn’t make that clear in your post.
Johnny - you and Walhall are named as Moderators here. Does that mean you both can delete our posts? Or do you report a bad post to Admin staff for them to decide whether or not to delete ?
Keen to know how the process works
Details of litigation by Cardio v Montano and associates filed December 2018:
Claimant CARDIOVASCULAR BIOTHERAPEUTICS, INC. (“Cardio”), for its Complaint for Theft of Trade
Secrets, Civil Conspiracy, Breach of Fiduciary Duty, Champerty, Civil RICO Violations and
Injunctive Relief against Defendants Zhittya Regenerative Medicines, Inc. (“ZRM”), Zhittya Genesis
Medicines, Inc. (“ZGM, ” and together with ZRM, “Zhittya”), John Laub (“Laub”), and Viktoriya
Tamlenova-Montano (“Viktoriya,” and together with Zhittya and Laub, the
“Defendants”), states as follows:
PARTIES
Plaintiff CardioVascular BioTherapeutics, Inc. is a corporation organized and existing
under the laws of the State of Delaware, with its principal place of business in Dallas, Texas.
CARDIOVASCULAR BIOTHERAPEUTICS, INC.,
Plaintiff,
vs.
ZHITTYA REGENERATIVE MEDICINE, a
Delaware Corporation; ZHITTYA GENESIS MEDICINE INC., a Nevada Corporation; JOHN LAUB, an
individual; and VIKTORIYA TAMLENOVA-MONTANO, an individual.
Defendants.
Case No.:
EXEMPT FROM ARBITRATION. INJUNCTIVE RELIEF SOUGHT
Dept. No:
COMPLAINT FOR THEFT OF TRADE SECRETS; CIVIL CONSPIRACY; BREACH OF FIDUCIARY DUTY; CHAMPERTY; CIVIL
RICO VIOLATIONS;
AND INJUNCTIVE RELIEF
Case Number: A-18-785986-C
Electronically Filed 12/12/2018 4:57 PM
Steven D. Grierson CLERK OF THE COURT
A-18-785986-C
Department 15
Defendant Zhittya Regenerative Medicine, Inc. (“ZRM”) is a
forfeited corporation originally organized and which existed under the laws of the State of Delaware with its
principal office in the State of Nevada. ZRM may be served in this lawsuit, among other methods, by serving
its registered agent in Nevada, the DeMint Law, PLLC, 3753 Howard Hughes Parkway, Suite 200-314, Las Vegas,
Nevada 89169.
Defendant Zhittya Genesis Medicine Inc. (“ZGM”) is a corporation organized and
existing under the laws of the State of Nevada with its principal office in the State of
Nevada. ZGM may be served in this lawsuit, among other methods, by serving its registered
agent in Nevada, Viktoriya Tamlenova-Montano, 3017 Carbondale St., Las Vegas, Nevada 89135.
Defendant Viktoriya Tamlenova-Montano is an individual
residing in Las Vegas, Nevada who may be served in this lawsuit, among other methods, at 3017 Carbondale St., Las
Vegas, Nevada 89135.
Defendant John Laub is an individual residing in Las Vegas,
Nevada who may be served in this lawsuit, among other methods, at 9501 Royal Windsor Ave., Las Vegas, Nevada
89149.
JURISDICTION AND VENUE
This Court has subject matter jurisdiction over this
action under the Nevada Constitution, Article 6, §6.
Venue is proper in this Court pursuant to NRS 13.040 inasmuch as
each of the individual defendants reside in the County in which this law suit has been brought.
INTRODUCTION
Cardio requests this Court’s intervention to prevent each of the
named Defendants from continuing to conspire with Daniel C. Montano (“Montano”) and John W. Jacobs (“Jacobs”) in
the execution of a plan calculated to cause severe irreparable damage to Cardio
through the theft and dissemination of highly confidential trade secrets and intellectual property rights
owned and/or exclusively licensed to Cardio (“Cardio Proprietary Information”) in violation of
Montano’s and Jacob’s fiduciary duties to Cardio and in breach of express contractual provisions in
Montano’s and Jacobs’ Employment Agreements (as hereinafter defined).
This is an action for theft of trade secrets, civil conspiracy,
breach of fiduciary duties, champerty, and civil RICO violations. Additionally, Cardio seeks temporary,
preliminary, and permanent injunctive relief in addition to monetary damages.
FACTUAL ALLEGATIONS
Cardio is a biopharmaceutical company developing protein drug
candidates to address diseases that result from lack of blood flow to a tissue or organ such as in the growth of
blood vessels in the treatment, inter alia, of heart disease, lumbar ischemia, diabetic ulcers, bed sores,
stroke , spinal cord injury neuropathy, Parkinson’s Disease, ALS, multiple sclerosis, kidney
ischemia, intestinal ischemia, pancreatitis, bone repair, cartilage repair, hair growth
induction, severe coronary microvascular disease, erectile disfunction, and peripheral artery
diseases (“Cardio’s Biopharmaceutical Business”). The active pharmaceutical ingredient in Cardio’s drug
candidates is FGF-1, a human protein that stimulates the growth of new blood vessels, thereby increasing
the blood supply to ischemic organs and tissues.
Montano was Chairman of the Board of Directors, President and Chief
Executive Officer of Cardio until September 16, 2014 when Cardio terminated Montano’s role with Cardio as
Chairman of the Board of Directors, President, and Chief Executive Officer. Prior to his termination
on September 16, 2014, Montano had entered into an Employment Agreement with Cardio dated January 1, 2007
(the “Montano Employment Agreement”), a true and correct copy of which is attached hereto as
Exhibit “A”. Montano's Employment Agreement imposed obligations upon Montano to maintain
the confidentiality of all Cardio Proprietary Information and to refrain from utilizing any
Cardio Proprietary Information to directly or indirectly compete with Cardio during or following his employment
with Cardio. Additionally, Montano agreed under the provisions of Section 6.2(b) of
his Employment Agreement, that if Montano used any Cardio Proprietary Information other than in connection
with his employment with Cardio, any gain or profit derived by Montano as a result of Montano's use
of such Cardio Proprietary Information would be held in trust for the benefit of Cardio and would be
remitted by Montano to Cardio upon demand. Further, during Montano's employment with Cardio, Montano
was subject to an Employee Confidential Information and Non-Solicitation Agreement dated
March 11, 1998 (the “Montano Confidential Information Agreement”), a true and correct copy
of which is attached hereto as Exhibit “B”. Montano was additionally subject to a Code of Business
Conduct (the “Code of Conduct”), a true and correct copy of which is attached hereto as Exhibit “C”. The
Montano Confidential Information Agreement and the Code of Conduct imposed additional obligations
upon Montano to maintain the confidentiality of all Cardio Proprietary Information and
to refrain from utilizing any Cardio Proprietary Information to directly or indirectly compete with Cardio
during or following Montano's employment with Cardio. The Montano Employment Agreement, the Montano
Confidential Information Agreement, and the Code of Conduct, are collectively referred to
herein as the “Montano Employment Agreements.”
Jacobs was a Chief Scientific Officer and Chief Operating
Officer of Cardio until September 18, 2014 when Cardio terminated Jacobs’ role with Cardio as Chief Scientific
Officer and Chief Operating Officer. Prior to his termination on September 16, 2014, Jacobs had entered
into an Employment Agreement with Cardio dated January 1, 2007 (the “Jacobs’ Employment Agreement”),
a true and correct copy of which is attached hereto as Exhibit “D”. Jacobs' Employment
Agreement imposed obligations upon Jacobs to maintain the confidentiality of all Cardio Proprietary
Information and to refrain from utilizing any Cardio Proprietary Information to directly or indirectly
compete with Cardio during or following his employment with Cardio. Additionally, Jacobs
agreed under the provisions of Section 6.2(b) of the Jacobs Employment Agreement that if Jacobs
use any Cardio Proprietary Information other than in connection with his employment with Cardio, any gain
or profit derived by Jacobs as a result of Jacobs’ use of such Cardio Proprietary Information would be
held in trust for the benefit of Cardio and would be remitted by Jacobs to Cardio upon demand.
Although Jacobs’ Employment Agreement was replaced by a Consulting Agreement between Jacobs and
Cardio dated March 1, 2010 (the “Consulting Agreement”), a true and correct copy of which is
attached hereto as Exhibit “E”, Jacobs continued to remain subject to the confidentiality and non-compete
obligations under his Employment Agreement. Jacobs was further subject to a September 22, 2004
Employee Confidential Information and Non-Solicitation Agreement (the “Jacobs' Confidential
Information Agreement”) which prohibited Jacobs from using any Cardio Proprietary Information to compete
in any way with Cardio during or following his employment with Cardio, a true and correct copy of
which is attached hereto as Exhibit F. Further, during Jacobs’ employment with Cardio, Jacobs was
subject to the same Code of Business Conduct which was applicable to Montano, a copy of which is
attached hereto as Exhibit “C”. The Jacobs’ Employment Agreement, the Consulting
Agreement, Jacobs' Confidential Information Agreement, and the Code of Conduct, are collectively referred to
herein as the “Jacobs’ Employment Agreements.”
Under the terms of Montano’s and Jacobs’ Employment Agreements
with Cardio, Montano and Jacobs were (i) prohibited throughout perpetuity from disclosing
Cardio Proprietary Information, (ii) required throughout perpetuity to refrain from directly or indirectly
exploiting any Cardio Proprietary Information for any purpose other than in connection with their
employment and obligations to Cardio and (iii) were required to hold in trust for the benefit of Cardio
any gain or profit of any nature obtained by Montano and Jacobs as a result of the disclosure or
use of any Cardio Proprietary Information in violation of their Employment Agreements.1 This lawsuit has
been brought because Defendants have entered into a civil conspiracy with Montano and Jacobs with the
objective of stealing Cardio Proprietary Information for the purpose of harming Cardio and illegally
using Cardio Proprietary Information to compete with Cardio for their own personal enrichment.
During the time that Montano and Jacobs were employed by Cardio as
officers and directors of Cardio, Cardio’s proprietary product development included actual and scheduled
trials for the use of the FGF-1 protein for use in the growth of blood vessels in the treatment, inter
alia, of heart.
Pursuant to the provisions of the Montano and Jacob Employment Agreements (as
defined below), any disputes arising out of Montano’s and Jacob’s employment with Cardio are
required to be submitted to binding arbitration. As a result, Montano and Jacobs are not named as
Defendants in this lawsuit. Instead, Cardio’s claims against Montano and Jacobs are independently
being pursued in a separate arbitration proceeding.
1 disease, lumbar ischemia, diabetic ulcers, bed sores, stroke , spinal cord injury neuropathy,
Parkinson’s Disease, ALS, multiple sclerosis, kidney ischemia, intestinal ischemia, pancreatitis,
bone repair, cartilage repair, hair growth induction, severe coronary microvascular disease, and
peripheral artery diseases.
Additionally, Cardio had acquired an exclusive license from Merck Sharp & Dohme
Corp (“Merck”) to utilize copies of Merck’s confidential clinical trial records developed in
connection with Merck’s investigational new drug applications relating to Merck’s Phase I, IIa and IIb
Clinical Trials for Merck’s topical applications of FGF-1 for dermal wound healing and Merck’s injectable
solution of FGF-1 for vascular repair of wounds (“Merck’s Confidential Clinical Trial Data”).
In their respective positions as officers and/or directors of Cardio,
Montano, Jacobs, and Viktoriya were provided access to all Cardio Proprietary Information, including access to
information relating to patent applications, drug development processes, clinical trials conducted by
Cardio, Merck’s Confidential Clinical Trial Data exclusively licensed by Merck to Cardio, marketing
strategies, and potential marketing and financial partners. This highly sensitive and proprietary
information was made available to Montano, Jacobs, and Viktoriya as a result of the investment in excess of $100
Million dollars by Cardio shareholders and investors who mistakenly placed their trust in Montano,
Jacobs, and Viktoriya to honor their contractual and fiduciary obligations to Cardio’s shareholders to
protect and develop Cardio's invaluable intellectual property rights for the exclusive
benefit of Cardio's shareholders.
During Montano’s, Jacobs’ and Viktoriya’s tenure as officers and
directors of Cardio, they had access to and/or acquired copies of all of Cardio’s Proprietary Information and,
following their termination of employment as officers and directors of Cardio, Montano, Jacobs, and
Viktoriya, in breach of their Employment Agreements and fiduciary duties to the shareholders of Cardio
have retained, and still possess, copies of all, or substantially all, of such Cardio Proprietary
Information, including, upon information and belief, a copy of the Merck Confidential Clinical Trial
Data.
In anticipation of Montano’s and Jacobs’ inevitable termination as
officers and directors of Cardio and Viktoriya’s termination as a director of Cardio, Montano, Jacobs, and
Viktoriya formed ZRM as a Delaware corporation in June, 2014. ZRM was formed by Montano, Jacobs and Viktoriya
for the express purpose of stealing and utilizing all of Cardio Proprietary Information,
including Merck’s Confidential Clinical Trial Data, to illegally compete with Cardio following Montano’s,
Jacobs’ and Viktoriya’s termination as officers and directors of Cardio. Subsequently, after ZRM’s
authority to conduct business in Nevada and Delaware was revoked in 2015 as a result of Defendants failure
to properly maintain proper corporate filings with Delaware’s and Nevada’s Secretary of State,
Montano, Jacobs, and Viktoriya formed Zhittya Genesis Medicine Inc. (“ZGM,” and together
with ZRM, “Zhittya”) in Nevada in 2018, also for the express purpose of taking the place of ZRM to
compete with Cardio using the very same stolen Cardio Proprietary Information that had been previously
used by ZRM to illegally compete with Cardio.
Following Montano’s, Jacobs’, and Viktoriya’s termination as officers
and directors of Cardio, it became clear based upon website postings by Zhittya and others, as well as emails
by Montano and others, including the dissemination of “white papers” under Zhittya’s name plagiarizing
Cardio Proprietary Information, and presentations being made on behalf of Zhittya, that Zhittya is
now falsely claiming, as its own (i.e., trying to steal), ownership of years of Cardio research and
development and clinical trials of drug candidates conducted by Cardio and/or exclusively licensed to Cardio
as a means of attempting to illegally bilk unsuspecting investors and patients out of potentially
millions of dollars based upon patently false claims and false advertising.
Additionally, based upon emails by Montano and documents discovered
by Cardio, it has become clear that Laub has knowingly conspired to join with Montano, Jacobs,
Zhittya, and Viktoriya to unlawfully misappropriate, use, and profit from Cardio Proprietary Information
stolen by Montano, Jacobs, and Viktoriya by Laub acting as the “Master Territorial Franchisee” for
Zhittya in its sale of drugs which will be manufactured based upon stolen Cardio Proprietary Information.
Upon information and belief, Defendants are acting in concert
with others who are knowingly aiding and abetting Defendants in their conspiracy with Montano and Jacobs to (i)
steal trade secrets from Cardio, (ii) falsely claim ownership of Cardio Proprietary
Information and (iii) illegally compete with Cardio utilizing stolen Cardio trade secrets in connection with
attempting to compete with Cardio’s Biopharmaceutical Business.
At the time of their termination as officers and directors of Cardio,
Montano, Jacobs and Viktoriya were in possession of Cardio Proprietary Information which they were required
to return to Cardio as part of their fiduciary duties to Cardio and under Montano’s and Jacobs’
Employment Agreements with Cardio. Despite lawful demands from Cardio for the return by Montano and
Jacobs of the Cardio Proprietary Information in their possessions. Montano and Jacobs
have failed and refused to return such Confidential Proprietary Information and the Merck Confidential
Clinical Data to Cardio. Instead, Zhittya, Viktoriya, and Laub have entered into a civil conspiracy with
Montano and Jacobs to steal Cardio’s Proprietary Information for the purpose of unlawfully competing
with Cardio for their unjust enrichment to the detriment of Cardio.
Cardio’s Proprietary Information: (i) is not generally available to
the public, (ii) is of great value to Cardio and (iii) would give any of its competitors who acquired such
information, including Montano, Jacobs, the Defendants, and others acting in concert with him,
an unfair competitive advantage. Cardio had and has processes and procedures in place to
rigorously maintain the confidentiality of the Cardio Proprietary Information because such information
provides Cardio a competitive advantage in the marketplace from which Cardio derives substantial economic
value.
Defendants’ misappropriation and theft of trade secrets and
improper use of Cardio Proprietary Information in competition with Cardio is irreparably harming Cardio
and poses an immediate and ongoing threat to Cardio’s Biopharmaceutical Business, its intellectual
property rights and trade secrets that must be enjoined because Cardio has no adequate remedy at law.
Cardio’s trade secrets and confidential and proprietary information
are of great value to Cardio and would give any competitor of Cardio—including Defendants and those acting in
concert with them—an unfair competitive advantage. Specifically, Cardio’s trade secrets and other
proprietary information are of great value to Cardio and such information would give any
competitor, who improperly acquired such information, an unfair competitive advantage by: not expending the
time and resources to develop the trade secrets and confidential and proprietary information as Cardio
has done; quickly developing products and technologies to unfairly compete with Cardio in order to
diminish Cardio’s head start; alerting a competitor as to initiatives that should and should not be
pursued; and other improper advantages.
All told, Defendants and those acting in concert with them are
causing, threatening, and/or will continue to cause or threaten significant irreparable harm to Cardio, including
the loss of value of confidential and/or proprietary information, the loss of long-standing
prospective investor relationships, loss of goodwill, as well as damage to Cardio’s reputation as an industry
leader and its ability to successfully market its drug applications. Money alone cannot make Cardio whole.
This lawsuit is being brought by Cardio (i) to recover damages from
the Defendants for their unlawful conspiracy to steal Cardio trade secrets, (ii) for disgorgement of any
profits unlawfully obtained by Defendants as a result of their theft of Cardio’s trade secrets, (iii) to
recover damages from Viktoriya for her breaches of fiduciary duties to Cardio, (iii) to recover damages from
Viktoriya for her unlawful champerty in funding a baseless lawsuit against Cardio in which she has no
interest, and (iv) to recover damages from Defendants for their civil RICO violations.
This lawsuit has additionally been instituted by Cardio for the
purpose of, inter alia, seeking a preliminary and permanent injunction against Defendants requiring Defendants and
all others acting in concert with them (i) to immediately cease using and publishing Cardio
Proprietary Information for any purpose, (ii) to immediately return to Cardio all Cardio Proprietary
Information and Cardio property in Defendants' possession, custody or control, and (iii) for a
permanent injunction requiring Defendants and all others acting in concert with them to permanently cease using
Cardio Proprietary Information for any purpose, including, but not limited to, the use of Cardio
Proprietary Information in the manufacture, use, or sale of any FGF-1 protein for the development of
drugs relating to any of Cardio’s Biopharmaceutical Business.
Absent such injunctive relief, Cardio faces irreparable injury,
including the loss of (i) funding for the development of its Biopharmaceutical Business, (ii) markets
for Cardio’s Biopharmaceutical Business, (iii) Cardio’s exclusive competitive advantage, and (iv)
Cardio’s trade secrets and goodwill, with the amount of such losses being impossible to
determine requiring that Defendants and all others acting in concert with them be enjoined and restrained by order of
this Court at once.
COUNT I - THEFT OF TRADE SECRETS
Cardio hereby repeats, realleges, and incorporates by reference the
allegations which are contained in Paragraphs 1 through 30.
Defendants have actively conspired with Montano and
Jacobs to improperly misappropriate trade secrets from Cardio, and have improperly misappropriated trade
secrets from Cardio by means of theft and willful inducement of breach of the duty of
Montano and Jacobs to maintain secrecy entitling Cardio to recover damages from Defendants in excess of $15,000
and a recovery of any unjust enrichment realized by Defendants as a result of their theft and
misappropriation of trade secrets from Cardio.
Defendants theft and misappropriation of Cardio’s trade
secrets have been willful, wanton, and reckless, entitling Cardio to recover exemplary damages as permitted
under NRS 19 600A.050(2).
Defendants theft and misappropriation of Cardio’s trade secrets have
been made in bad faith entitling Cardio to recover its reasonable attorneys’ fees under NRS 600A.060.
COUNT II - CIVIL CONSPIRACY
Cardio hereby repeats, realleges, and incorporates by reference the
allegations which are contained in paragraphs 1 through 34.
Defendants have combined among each other and with Montano
and Jacobs to accomplish an unlawful objective, to wit, to misappropriate and steal trade
secrets from Cardio in violation of NRS 600A.035 for the purpose of harming Cardio and unjustly
enriching themselves causing Cardio extensive damages.
As a result of Defendants’ willful, wanton, and malicious conduct,
Cardio is entitled to recover not only compensatory damages in excess of $15,000.00 and attorneys’ fees for
Defendants’ civil conspiracy to misappropriate and steal Cardio’s trade secrets, but also its
attorneys’ fees and exemplary damages from Defendants.
COUNT III - BREACH OF FIDUCIARY DUTY
Cardio hereby repeats, realleges, and incorporates by reference the
allegations which are contained in paragraphs 1 through 37.
Viktoriya, as a director of Cardio, owed to Cardio a fiduciary duty
of honesty, loyalty, good faith and fairness. Specifically, Viktoriya owed her undivided and unselfish
loyalty to the corporation that demanded that there be no conflict between her fiduciary duties
and self-interest.
Singer v. Magnavox Company, 380A.2d 969 (1977). Viktoriya’s actions during and following
her termination as a director of Cardio in participating in a conspiracy to misappropriate and
steal Cardio trade secrets for her own personal enrichment violated her fiduciary duties to Cardio
entitling Cardio to recovery of compensatory damages in excess of $15,000.00, and damages for any
personal enrichment received by Viktoriya for her breach of fiduciary duties and attorneys’ fees.
COUNT IV - CHAMPERTY
Cardio hereby repeats, realleges, and incorporates by reference the
allegations which are contained in paragraphs 1 through 39.
On November 15, 2018, Viktoriya financed the filing of an
Involuntary Bankruptcy Proceeding in the United States Bankruptcy Court in Nevada against Cardio, in which
she had no legitimate interest inasmuch as she was not a creditor of Cardio and had no standing to
participate in the filing of such Involuntary Bankruptcy Proceeding.
Upon information and belief, the only reason why Viktoriya financed
the filing of the Involuntary Bankruptcy Proceeding was to damage Cardio and to personally enrich herself as a
result of the potential elimination of Cardio as a competitor of Zhittya if the Involuntary filing
was successful in driving Cardio out of business.
Viktoriya’s financing of the Involuntary Bankruptcy Proceeding in
which she had no interest constitutes the tort of Champerty in Nevada for which Cardio is entitled
to recover from Victoria monetary damages in excess of $15,000.00 incurred by Cardio as a result of such
tortious conduct.
COUNT V - VIOLATION OF CIVIL RICO STATUTES
Cardio hereby repeats, realleges, and incorporates by reference the
allegations which are contained in paragraphs 1 through 43.
Pursuant to NRS 207.470 et seq., Cardio brings a claim for violation
of Nevada’s Civil RICO Statute against Defendants and others acting in concert with them who have engaged in a
pattern of thefts of trade secrets and the publishing fraudulent and false statements in connection
with the sale of securities (i.e., investments in Zhittya) with the intent to defraud investors and
deprive Cardio of its ability to generate business profits from Cardio's products which are in the process of
being brought to market. Cardio has suffered and continues to suffer monetary damages in excess of
$15,000.00 as a result of Defendants’ racketeering activity. As a result of Defendants’ violation of
Nevada’s RICO Statutes, Cardio is entitled to recover treble damages caused by Defendants to Cardio's
business plus costs of suit and attorneys' fees. 24
COUNT V - INJUNCTIVE RELIEF
Cardio hereby realleges and incorporates by reference the
allegations which are contained in paragraphs 1 through 45.
Pursuant to the provisions of NRS 600A.040 and common law, Cardio is
entitled to injunctive relief to prevent the immediate, severe, and irreparable injury resulting from
Defendants’ current and certain future misappropriation and theft of Cardio’s trade secrets and unlawful
competition with Cardio for which no adequate remedy is available at law unless a mandatory injunction is
issued enjoining and restraining Defendants and their respective agents, servants,
principals, assignees, transferees and/or beneficiaries, and all those acting in concert with them (i) to
immediately cease using and publishing Cardio Proprietary Information for any purpose, (ii) to immediately return to
Cardio all Cardio Proprietary Information and property in Defendants' possession, custody or control to
Cardio, and (iii) requiring Defendants and all others acting in concert with them to permanently
cease using Cardio Proprietary Information for any purpose, including, but not limited to,
the use of Cardio Proprietary Information in the manufacture, use or sale of any FGF-1 protein for the
development of drugs relating to any of Cardio’s Biopharmaceutical Business.
Cardio is entitled to an award of attorneys’ fees for being required
to bring this action.
PRAYER FOR RELIEF
WHEREFORE, Cardio seeks judgment in its favor against the Defendants
that grants the following relief:
A. Awards Cardio actual, incidental, compensatory, treble, and
consequential damages in an amount in excess of $15,000 to be proven at trial;
B. Awards Cardio exemplary or punitive damages in an amount in excess of
$15,000 to be proven at trial due to Defendants’ willful and malicious activities;
C. Awards Cardio its costs and expenses incurred herein, including
reasonable attorneys’ fees and interest, pursuant to NRS 600A.060;
D. Awards Cardio damages in the amount of any and all unjust enrichment
realized by Defendants as a result of their unlawful use of Cardio’s Confidential Proprietary
Information;
E. Temporarily, preliminarily, and permanently enjoining Defendants and
all parties in active concert or participation with them, from using or disclosing any of
Cardio’s Confidential, Proprietary Information;
F. Temporarily, preliminarily, and permanently enjoining Defendants and
all parties in active concert or participation with them, from directly or indirectly engaging in
any business in competition with Cardio which utilizes Cardio Proprietary Information in the manufacture, use
or sale of any FGF-1 protein for the development of drugs relating to any of Cardio’s
Biopharmaceutical Business;
G. Orders Defendants and all parties in active concert or participation
with him to return to Cardio all originals and copies of all files, devices, and/or documents that
contain or relate to
Cardio’s Confidential Proprietary Information, including without limitation, all computers,
electronic media, and electronic storage devices; and
H. Awards Cardio such further relief as the Court deems necessary and
just.
DATED: December 12, 2018
Respectfully submitted.
JOHNSON & GUBLER, P.C.
By: /s/ Matthew L. Johnson
Matthew L. Johnson, Esq. 20 8831 West Sahara Avenue
Las Vegas, Nevada 89117
Telephone: (702) 471-0065
Facsimile: (702) 471-0075
Attorneys for Plaintiff
CardioVascular BioTherapeutics, Inc.
Of Counsel:
Barry F. Cannaday (Application to be applied for)
DENTONS US LLP
2000 McKinney Ave, Suite 1900
Dallas, Texas 75201
Telephone: (214) 259-1855
Facsimile: (214) 259-0910
Yes but there will be doubters that either don’t know what this means or don’t understand what this means. Could you spell it out for everyone please JonnyB so there is no doubt.
Also, my understanding was after this Motion was defeated, CVBT filed a counter claim against Victoria and her cronies/ backers. I will copy and paste that tomoro once I locate again. That was over 6 months ago - have there been any further progress on that claim ?
Sadly that post pretty much sums up CVBT folks. A lot of work is in progress but, as shareholders, we don’t ever seem to get much detail on the effort other than generalities that lots of things happening, trials restarting soon (except they never do), fund raising ongoing (but it never completes), joint ventures being pursued (but we are never told any have been consummated), a new website will be developed (it was, and then nothing else), litigation against the company is defeated (yet more keeps on coming), 3 patents have been protected (they have been for a long time) and more are in progress (everything is always in progress.
I am not saying all these things will never happen - far from it - but the endless secrecy is a tad irritating.
If the secrecy is because they don’t want to fuel any litigation from the Montano era, well when the actual case(s) get in front of a judge, it is going to be decided on its merits. Not whether CVBT now has money in the bank.
All my own opinion sitting back and observing matters over the years....
I guess then they are all wrong and you are right. What is obvious is there are people on this board who think they know what is going on but don’t. And others who are repeating the messaging they receive from company personnel. However it is still somewhat of a concern to me that much of what had been said would happen is still to happen. The fund raising has surely progressed much slower than envisaged. The purpose of the website refresh is somewhat bizarre - why bother and then forget about it. Creates a bad impression imo.
Some clarity on all the various litigation in progress would be helpful - the posts by people who are both for and against the new management team do nothing to help us/me have a clear view as to what is real and what is bogus. The AGM was yet another disappointing non-event of a company meeting requirement, suggesting to me there are still a raft of issues to resolve. Some clarity from the company management surely isn’t too much for shareholders to expect?!
Thank you Hotshot - I for one appreciate your comments.
$1.8m is spurious. Same as the previous claims.
I took that comment to mean they would continue raising funding in the run up to the liquidity event. I don’t believe he meant all continuing fund raising will be at $3 until that time. Also 307m shares currently in issue.
Here comes the bus bang on time. Again.
You seem amazingly well-informed about Bankruptcy proceedings and process Walhall. Is there any specific reason for that perhaps?
As always, thanks for your concern here but I just feel that with Cardio innthe hands of people that know what they are doing and know how to close deals etc, well really you don’t have to worry too much about everyone else here. You enjoy your weekend ahead now and we all look forward to you asking your 3 questions under AOB at the AGM. Come on now, if you are so vocal here, then don’t be shy once you get your opportunity to ask in full visibility of the floor !!
Johnny - how can you say that? We have not heard from them in months. They needed our vote to kick Dan at al into touch, but since then, what communication has there been?! Nada, zip, neuwt, nothing !
Then we got a website that was clearly a place holder site - nearly 3 months ago. But then, yet again, radio silence.