Borneo already knows its a scam.
The plaintiff, Borneo Energy Sendirian Berhad, a Malaysian corporation, sued Sustainable Power Corp. ("SSTP"), a Nevada corporation with its principal place of business in Baytown, Texas, and its chairman and "Chief Visionary Officer," John H. Rivera, a Texas citizen. Borneo Energy alleged a scheme to defraud based on SSTP's and Rivera's representations that SSTP could produce a biofuel product from palm waste, a byproduct of Malaysia's palm-oil industry. Based on these representations, Borneo Energy agreed to invest $2 million for 50 million shares of SSTP stock. The parties signed a Term Sheet and a Stock Subscription Agreement. Borneo Energy paid a $100,000 initial installment and a $900,000 second installment on the Stock Subscription Agreement and the $100,000 fee under the Term Sheet. Borneo Energy alleges that it did not pay the remaining amount because SSTP failed to deliver any stock, failed to provide audited financials as required under the Stock Subscription Agreement, and failed to provide technical assistance as required under the Term Sheet. Borneo Energy also learned that the SEC had sued Rivera on July 18, 2008, for securities fraud arising from misrepresentations about the same biofuel product and from a "pump and dump scheme."
