DD Support Board and Research Team

[nodummy]

Edward Bronson / Corey Ribotsky follow up

That claim by Bronson that the liquidator for the NIR Group/AWJ Offshore Bankruptcy case was coming after him for $150 million had me curious so I did a little more digging.

I pulled this document from the AWJ Offshore Ltd bankruptcy case which does explain a claim against Edward Bronson


https://promotionstocksecrets.com/wp-content/uploads/2017/01/BronsonAJW.pdf

46. In the SEC Complaint, the SEC also sets forth allegations that could serve as the basis for causes of action by the Offshore Funds against other parties. For example, the SEC alleges that Ribotsky caused the AJW Funds to enter into a series of nine transactions during the fourth quarter of 2008 in which the AJW Funds sold convertible PIPE debentures that NIR valued at $43.2 million to certain entities controlled by Edward Bronson (such entities are hereafter collectively referred to as “Fairhills”). Fairhills did not pay cash for these convertible debentures, though. Instead, Ribotsky agreed to accept, as full payment for the purchase of the debentures, promissory notes from Fairhills that were payable three to six months after the transactions closed (the “Fairhills Promissory Notes”). Bronson also executed personal guarantees that obligated him to pay the full purchase price for the debentures in the event that Fairhills could not or did not pay. By recording the transaction involving the debentures as “sales,” despite the fact that the Funds did not actually receive any money, Ribotsky and his entities recorded $18 million in net realized gains in 2008 and NIR received performance fees on these gains.

47. Petitioners do not believe Ribotsky and NIR conducted any meaningful due diligence on Bronson or Fairhills prior to entering into the transactions. When payment on the debentures came due, Fairhills and Bronson defaulted on their repayment and guarantee obligations.

According to that, the SEC Complaint against NIR Group references Ribotsky/AJW Funds entering into a series of nine transactions during the fourth quarter of 2008 in which the AJW Funds sold convertible PIPE debentures that NIR valued at $43.2 million to certain entities controlled by Edward Bronson.

Sure enough the SEC Complaint against NIR Group/Corey Ribotsky does reference this in paragraphs 68 - 78. They just don't reference Edward Bronson by name.

https://www.sec.gov/litigation/complaints/2011/comp22106.pdf

So we are being led to believe that Corey Ribotsky did a deal with Edward Bronson to sell Bronson $43m worth of convertible Notes then found out later, after he got stiffed by Bronson, that Bronson didn't have any where close to $43m and was not a trustworthy/honest person.

According to the SEC:

1) Bronson had less than $30,000 in his accounts at the time he made the deal to acquire the debts from Ribotsky.
2) Bronson wrote Ribotsky a check for $700,000 then stopped payment on the check before Ribotsky could cash it.
3) Bronson had multiple collection matters and judgments against him including over $270,000 in unpaid phone, credit card, and department store bills

In other words, there was no way Bronson could have possibly come up with the money to pay Ribotsky within the 3 - 6 month payment periods agreed to in the promissory notes. And either Ribotsky was an idiot for doing the deal with Bronson or more likely the whole deal was nothing but some kind of ploy.



I'm not sure how those $43m worth of convertible Notes became an alleged $150m debt when Edward Bronson filed for Bankruptcy but at least now we understand better the relationship between Edward Bronson and Corey Ribotsky.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=128240040