CardioVascular BioTherapeutics (fka CVBT)

[BioGuy2014]

Dan Montano Loots Baraban Securities – Still Owes More Than $1.1m

Prior to his involvement with Phage Biotech, Montano was the President of Baraban Securities Inc (BSI). The parent company was the debtor in a Chapter 7 case pending in the US Bankruptcy Court Central District of California case number 91 – 85000 BR. Petitioning Creditors are informed that the bankruptcy trustee dismissed Montano for among other reasons allegedly directing a BSI employee to make a $375,000 loan for another company where Montan0 was a partner.Petitioning Creditors are informed that the BSI bankruptcy trustee also filed an adversary proceeding against Montano for looting BSI & usurping and diverting for himself the valuable relationships BSI enjoyed with its brokers, misappropriating trade secrets and engineering and ultimately destroying the business of BSI so Montano might divert and obtain the business at no cost. Specifically the BSI trustee alleged that Montano hired various unqualified friends and family members at great expense to BSI. Petitioning Creditors are informed that adversary proceeding also alleged that Montano directed BSI to enter into transactions and buy company supplies from Montano with relatives and business associates.The bankruptcy trustee prevailed in the BSI Action and the bankruptcy court entered a joint and several judgment of $595,380. 94 against Montano & Mark Voorhis, and an additional $500,000 judgment against Montano alone. Montano appealed the judgment to the bankruptcy Appellate Panel but the Panel affirmed the judgment. As of June 2004 Montano had not paid the BSI judgment and the amount of the judgment had grown to $851,113.90 jointly and several against Montano & Voorhis, and $714,762.90 against Montano alone, due to accrued interest at 4.3% per annum.