Carlton Companies, Inc. (fka CTNO)

[bowman88]

Looks like he still does have a pulse. Guess we'll see if he gets paid back for his lending to United Health Products (UEEC).

RISKS RELATING TO OUR SECURED DEBT AND RECENTLY COMMENCED LITIGATION

LeadDog Capital LP is our secured lender and we are currently in default.

As of December 31, 2013, our books and records indicate that we owe approximately $ 504,603 in principal and accrued interest
thereon to our secured lender, LeadDog Capital LP. This indebtedness could lead to material adverse consequences to the Company, its business plans and potential results of operations.

The Company has commenced a lawsuit against LeadDog Capital LP, our secured lender, LeadDog Capital Markets, a company under
common control with our secured lender, Christopher Messalas, the control person of the aforementioned entities, and Jan Chason, the chief liquidator of LeadDog Capital LP and our former Chief Executive Officer.

As described in Item 3 below, the Company has a pending lawsuit against LeadDog Capital LP, our secured lender, LeadDog Capital
Markets, a company under common control with our secured lender, Christopher Messalas, the control person of the aforementioned entities, and Jan Chason, the chief liquidator of LeadDog Capital LP and our former Chief Executive Officer. This lawsuit may cause the defendants to file one or more counterclaims against the Company and for LeadDog Capital LP to seek to foreclose on its secured debt. No assurances can be given that this lawsuit will have a favorable outcome for the Company or that such outcome will not materially adversely affect our operations.
See “Item 3” below.

ITEM 3. LEGAL PROCEEDINGS

There are no legal proceedings pending or threatened against us, and we are unaware of any governmental authority initiating a
proceeding against us, except as described below. On November 8, 2013, United Health Products, Inc. filed a Complaint in the Second Judicial District Court, State of Nevada, County of Washoe, against defendants LeadDog Capital LP, LeadDog Capital Markets LLC, Chris Messalas and Jan Chason, the Company’s former Chief Financial Officer. The Company alleges that the defendants engaged in a course of conduct to divert funds from the Company for unauthorized purposes and to fraudulently induce the Company to issue common stock to some or all of the defendants. It is also alleged that as part of the defendants’ conduct, the Company’s secured lender, LeadDog Capital LP, made a series of loans,
evidenced by promissory notes, to the Company from 2010 through 2012 and that, as a result of these loans, LeadDog Capital LP gained undue control over the business affairs of the Company and as a result of this undue control, funds borrowed from LeadDog Capital LP were diverted to other portfolio healthcare companies to which the hedge fund had made loans through the actions of defendants, Jan Chason and Chris Messalas. The relief sought by the Company includes, without limitation, the cancellation of funds owed to LeadDog Capital LP, the return of shares of common stock issued to one or more defendants for cancellation as well as damages.

http://www.washoecourts.com/index.cfm?page=casedesc&case_id=CV13-02428&Submit=Submit#