Global Digital Solutions Inc (GDSI)

[PJC1]

After an interesting phone call I had yesterday, which i don't know if I am allowed to discuss, i decided to look into Sullivan a little more. Here is an interesting lawsuit from 2013 that makes me wonder the fate of GDSI.

"According to the complaint, Kates, Argo Chairman Richard J. Sullivan and Senior Vice President David A. Loppert —who all now hold top-level positions with rVue — perpetrated the fraud after getting into disagreements with the investor-plaintiffs.

The fraud allegedly involved the executives placing Argo's stock and other assets into rVue operating subsidiary rVue Inc., then allegedly organized a "pump-and-dump" scheme to raise capital from new investors.

In order to complete the scheme, the defendants increased the number of company shares from 25 million to 250 million, claiming the move was related to a $100 million initial public offering, but instead "spun out" those new shares, via a complicated scheme, under the unencumbered rVue business name, the suit claims.

Then, in a private placement, the Argo shares were placed under rVue and Argo was left to liquidate without operating assets, according to the complaint, which makes claims of fraud, breach of contract and breach of fiduciary duty. It seeks at least $5 million in damages."